Strangled by a name?

When I saw the new Video Only store open up in Marin, I wondered how much business it has lost over the years because of its name. It doesn't sell only videos. It mainly sells TVs. Until I decided to write this post, I'd never visited the store because the name was enough of a barrier to keep me out.

Its About Us makes a valiant effort to make a silk purse out of this pig's ear:

"Video Only is much more than our name, we consider ourselves the premier home-electronics retailer on the west coast."
"As the name implies, 'Video Only' states a clear focus on Video and Audio related products."
"An abundance of recent technological advances has led to a cornucopia of entertainment media choices for today's wary consumers. Our goal is to help you cut through the thick jungle of electronic double-talk...."

The last of those three statements is the closest to how the store actually differentiates itself. It has a relatively limited selection of products displayed with a lot more space and focus than the Best Buy, right next door. It does seem less jungle-like. (On the other hand, based on my now one visit, it does have a more aggressive "Can I help you, sir?" sales staff that doesn't make the experience that much better from my perspective.)

Let Video Only serve as a warning to take care when picking names not to lock yourself into a narrow line of business that may make it more difficult to grow your business in new directions in the future. Be especially careful if you are connected in any way to technology where whole categories can become irrelevant in a short period of time. Back in 1982 when Video Only was founded, this name may have seemed perfect. Now it's a mill around their neck.

Owning Obamacare

Obamacare started its life out as a pejorative term used by those critical of the new Health Care Law. But, as these things go, it's not so bad--nothing like as bad as "death panels," for example.

So the administration isn't fighting or ignoring the use of this term. It's embracing it and recognizing it as an opportunity to promote its point of view. A Google search for Obamacare now produces a sponsored search result connecting to healthcare.gov which lays out the case for the new legislation. Opponents are up in arms complaining about the use of taxpayer money to buy these ads but what they're probably most upset about is the fact that their name has been hijacked.

Meanwhile, over at Yahoo!, a sponsored results battle is on. As well as the Healthcare.gov ad, there's also a link to Demand Obamacare Repeal. A new front has opened in the never-ending political battle.

Why a Tsiischili roller coaster ride is scarier than a Chunta: A question of naming

Photo: Roller Coaster - Speed Mouse #1 by Stéfan (Flickr)

Do people think that a roller coaster ride called Tsiichilli would be more exciting, more adventurous and more likely to make them sick than the much easier-to-pronounce Chunta? Yes, they do.

Do companies with easy-to-pronounce ticker symbols (e.g. KAR) do better than companies with difficult-to-pronounce ticker symbols (e.g. RDO) in the first day (and even year) of trading after an IPO? Once again, yes they do.

Earlier this week, I wrote about the work of Song & Schwarz who have been looking at the influence of what they call "seemingly irrelevant" things like print font on our perceptions and behaviors. Complicated fonts tax our limited processing abilities, reduce our processing fluency and make us think that whatever is being described is more difficult than we would if it was presented in an easier-to-read font.

Same for names. In the second half of their article, Song & Schwarz describe one of their experiments where they tested made-up names for food additives. The hard-to-pronounce "Hnegripitrom" was perceived to be harmful but also more novel than the easier-to-pronounce "Magnalroxate." The Tsiichilli ride was scarier than the Chunta and a basket of stocks of companies with easy-to-pronounce ticker symbols outperformed a basket of companies with trickier symbols.

This strong link between fluency, familiarity and risk perception has practical implications. As the authors point out, in product domains where safety is important (like food and insurance), there should be a strong preference for easy-to-pronounce names that can be reassuringly, easily processed. On the other hand, in extreme sports like bungee jumping or wherever people derive pleasure from the risks involved, hard-to-pronounce names will add to the promise of adventure and excitement.

One final tip from this article: Things that are easier-to-read receive less scrutiny from a reader than things are difficult to read. Product manufacturers tempted to hide deceptive information in the fine print actually make it more likely that the deception will be noticed. For those going down that track, better to put the deception right out there in front of people, in an easy to read format for them not to see.