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February 23, 2009

Does Hot Cell Phone Product Naming Translate Into Sales?

InstinctCellPhone.gifIf you had a choice between the KRZR, the 8800 Arte, and the Instinct, which cell phone would you choose?

According to our recent online survey conducted among 515 consumers from a Greenfield Online U.S. national panel, most of us would innately prefer the Instinct name.

Interestingly, when it comes to consumer perception of cell phones product names, good brand naming strategies equal more sales.

We measured consumer perceptions on 15 cell phone product name and brand architecture factors of representative product names from four major cell phone companies and compared it with the U.S. market share (from Q3 2005 to Q2 2008) of those same companies:

  • Motorola

  • LG

  • Samsung

  • Nokia

As it turns out, the most preferred cell phone names belonged to Samsung and LG, the two companies that saw a rise from 16% market share in in the third quarter of 2005 to 20% market share at the end of the second quarter in 2008.

Conversely, Motorola with a 30% market share at the beginning of the study saw a decrease of nine points to 21%. It is no surprise then that Motorola also ranked low on all six name attributes tested in the survey:

  • Modern
  • Creative
  • Engaging
  • Original
  • Cool
  • Easy to Remember

Similarly, Nokia also experienced a drop from 16% to 9% of U.S. market share over the same time period, with all of its brands scoring lower than all other brands on every measure.

If you are interested in learning more please read the articles on our proprietary research published by Advertising Age, Brandweek, and Adweek.

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Posted by William Lozito at February 23, 2009 3:05 PM
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