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Why using a brand nickname in marketing is not a good idea

Nickname branding is actually detrimental to brand performance. This is because brand nicknames are usually given by consumers.

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Researchers from Western University, Stockton University, and University of Massachusetts Amherst published a new Journal of Marketing article that examines if firms benefit from adopting popular nicknames in their branding efforts. 

The study, titled “BMW is Powerful, Beemer is Not: Nickname Branding Impairs Brand Performance”, is authored by Zhe Zhang, Ning Ye, and Matthew Thomson. 

Many brands have popular nicknames that have become a part of daily conversations. BMW is commonly referred to as Beemer, Bloomingdale’s as Bloomie’s, Rolex as Rollie, Walmart as WallyWorld, and Starbucks as Starbies.

Given their popularity, some marketers have embraced these names in their own branding efforts. For instance, in 2021, Bloomingdale’s officially adopted “Bloomie’s” for its new store in Fairfax, Virginia; Target launched a style campaign in 2018 with the tagline “Fall for Tarzhay All Over Again;” and the Howard Johnson hotel chain slogan goes “Go Happy. Go HoJo.”

Do firms actually benefit from adopting popular nicknames in their branding efforts? This new study finds that nickname branding is actually detrimental to brand performance. This is because brand nicknames are usually given by consumers.

Zhang explains that “accepting a consumer-generated nickname suggests that a brand implicitly admits that consumers are ‘in charge’ and that they publicly accept and promote an altered identity bestowed by consumers. When a brand starts to accept and even adopt a nickname given by consumers, it makes the brand seem less powerful.”

Nickname Use by Customers Versus Nickname Use by Marketers

Many brands closely follow consumers’ language use, especially on social media. However, the purpose of this monitoring should be to generate insights, not to mechanically repeat what consumers say. Brand nicknames are indeed terms of endearment, but only when they are used by the right person (i.e., consumers). When used by marketers, nicknames do not bring consumers closer to the brand. In fact, copying what might be construed as consumers’ “intellectual property” makes the brand appear weak.

Marketers should recognize that there is a difference between a consumer using a nickname and companies using that nickname for branding. The research team says that because consumer nickname use does not signal that a brand submits to consumer influence, it is less likely to weaken perceptions of brand power. In fact, prior research has shown that brand nicknames may lead to desirable consequences when they are used by consumers. “Marketers should recognize the differences in nickname use by consumers versus by marketers,” says Thomson. “While one may want to avoid adopting a nickname for marketing, nickname use within the consumer community should not be discouraged.”

In addition, brands must carefully evaluate their brand stereotype (i.e., competent vs. warm) and message type (transactional vs. communal) before adopting a nickname. It seems plausible that some brands may benefit from using their nicknames under certain conditions. For example, when a small-town, family-owned restaurant adopts a popular nickname given by the locals for fundraising for the community library, people may not necessarily feel it is inappropriate because the business was not meant to be powerful and its motive is to benefit the community. Instead, the nickname may become an emotional tie that activates consumers’ community identity and could attract more donations for the local community.

Furthermore, it is important for marketers to evaluate the meaningfulness of their brand name change. For example, Apple Computer became Apple, IHOP temporarily became IHOb, and Dunkin’ Donuts became Dunkin’. These were meaningful name changes and part of the brands’ repositioning strategies. The new names clearly tell consumers what the brand wants to be: Apple offers more than personal computers, Dunkin’ offers more than just donuts, and IHOb burgers should be taken seriously. These are internally initiated alterations that signal the brand’s new identity and market position, unlike nickname branding activities that are initiated externally.

Thomson says that “if nickname branding is not accompanied by substantial changes to the brand’s core identity, it may appear to be a relatively superficial effort to flatter consumers.” For example, Radioshack’s adoption of a nickname (e.g., tagline: “Our friends call us the Shack”) was a high-profile example of explicitly submitting to consumer influence and credited with hastening the company’s trajectory towards bankruptcy.

Lessons for Chief Marketing Officers

  • Marketers need to be careful about appropriating consumers’ language.
  • Marketers should recognize the difference between consumer nickname use versus nickname branding. For example, when General Motors banned the use of the “Chevy” nickname within the organization in 2010, the company received enormous criticism for not being consumer-oriented. However, critics overlooked the fact that the policy was meant to reduce the internal use of the nickname (e.g., when a salesperson talks to consumers) and not to stop consumers from using it externally.
  • Some brands may benefit from using their nicknames under certain conditions.
  • Renaming a brand may be necessary as a brand grows. However, if nickname branding is not accompanied by substantial changes to the brand’s core identity, it may appear to be a superficial effort to flatter consumers.

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Office owners or managers, take note: Increased risk of bullying in open-plan offices

In traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

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Open-plan offices entail a clearly increased risk of workplace bullying compared with employees having their own office or sharing with just a few colleagues. This is shown in research from Linköping University, Sweden. 

“Increased bullying is a tangible negative consequence of how you choose to organise the workplace. It’s important to highlight this, as it hasn’t previously been examined,” says Michael Rosander, professor at the Division of Psychology at Linköping University.

Open-plan offices, where many employees share the same space, have become increasingly common. Employers often justify this development as a way to use premises more efficiently and to encourage creative interactions between employees. However, research has shown that open-plan offices do not promote health, job satisfaction or productivity.  

Until now, it has been unclear whether open-plan offices also affect the risk of bullying and employees’ motivation to look for another job. Through surveys of more than 3,300 randomly selected individuals in employment in Sweden, Michael Rosander has now provided an answer. The results are published in the journal Occupational Health Science. 

Thirty per cent of those with some form of office-based work reported that they worked in a traditional open-plan office with no access to private space. Thirteen per cent worked in so-called activity-based offices, where employees spend part of their time in an open-plan environment but also have access to designated rooms for tasks requiring peace and quiet. The remainder had their own office or shared one with only a few colleagues.

For traditional open-plan offices, the survey responses showed a clearly increased risk of bullying compared with those who had their own office or shared an office with only a few colleagues. The difference remained regardless of factors such as personality traits and the extent of remote working. This suggests that the problems are indeed caused by the work environment in the office.  

The researchers’ explanation is that in traditional open-plan offices it is easier to notice colleagues’ shortcomings and become irritated by them. If someone gets frustrated and takes it upon themselves to “do something about” a colleague’s behaviour, and there are no clear guidelines for handling such situations, there is a risk that it may escalate into bullying. Those who are subjected to bullying lack access to a private space for retreat. 

Activity-based open-plan offices, by contrast, showed no increased risk of bullying, likely due to the availability of private spaces. However, in both types of open-plan office, employees were more likely to consider changing jobs. One possible explanation is that activity-based offices also involve more distractions, according to Michael Rosander.

For employers who have introduced, or are planning to introduce, open-plan offices, there are some lessons to be learned. One is to be prepared to deal with irritation and conflicts before they escalate. Another is the importance of providing rooms where employees can work undisturbed. Placing individuals with similar needs and tasks near one another may also reduce the risk of disruption.

“Traditional open-plan offices are in themselves negative for the individual, for productivity, and make people more likely to leave their job. Social interaction also suffers. So it’s worth considering how to handle it,” says Michael Rosander.

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Long-serving CEOs may weaken innovation, study finds

Companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

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A new study from the University of East London has found that companies led by long-serving chief executives may become less innovative over time unless challenged by strong independent boards.

The research examined 215 FTSE 350 companies over an 11-year period between 2010 and 2021. It explored how CEO tenure and independent directors influence a company’s “R&D knowledge stock”, which is the research, expertise and technological capability built through investment in innovation.

The study published in the journal Corporate Governance found that CEOs who remain in office for many years often become more cautious and less willing to back risky research and development projects. These companies were more likely to reduce investment in innovation and long-term technological growth.

Firms with higher numbers of independent directors were more likely to continue building innovation capacity with experienced CEOs and independent directors forming an effective partnership, to combine deep company knowledge with outside challenge.

However, both experienced CEOs and independent directors become more cautious and less willing to back risky research and development projects when the company fails to meet performance aspirations, suggesting that independent directors do not have stable risk preferences.

The findings suggest that innovation is shaped not only by technology and finance, but also by leadership culture and corporate governance structures.

Author Dr Igbekele Sunday Osinubi, of the Royal Docks School of Business and Law, said: “Long-serving CEOs can bring valuable experience and stability, but there is also a risk that leaders become too cautious or too attached to existing ways of thinking. Our findings show that independent directors play an important role in encouraging companies to continue investing in innovation, especially during difficult periods when firms may otherwise retreat from long-term research and development.”

He added: “This matters beyond individual companies. Innovation drives productivity, competitiveness and economic growth. The study highlights how governance structures can influence whether firms continue building the knowledge and technologies that shape future industries.”

The paper argues that regulators and policymakers should consider governance reforms and incentives that encourage long-term innovation strategies, particularly in firms led by long-serving executives. The findings may also influence how boards think about CEO succession planning, oversight and the balance between short-term financial pressures and long-term investment.

Osinubi’s research, “Long CEO tenure, independent directors and R&D knowledge stock: the moderating effect of performance shortfalls”, was published in the Corporate Governance: The International Journal of Business in Society

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Profit alone is a poor measure of success, study shows companies can look efficient while harming the planet

Firms that appear highly efficient at generating revenue can perform far worse when their environmental footprint are included in the calculation.  

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Companies celebrated for strong financial performance may actually be inefficient once their environmental impact is taken into account, according to new research from the University of Surrey. 

The study, published in the European Journal of Operational Research, shows that firms that appear highly efficient at generating revenue can perform far worse when their environmental footprint are included in the calculation.  

To tackle this problem, researchers developed a new way to measure “sustainable corporate efficiency”, combining traditional financial metrics with environmental data such as energy consumption, carbon emissions and revenues generated from environmentally friendly products and services.  

Dr Menelaos Tasiou, co-author of the study and Senior Lecturer in Finance at the University of Surrey, said: “Businesses have long been judged on how efficiently they turn resources into profit. But if those profits come with large environmental costs, the picture changes completely. What we show is that true efficiency means generating revenue while also reducing the environmental damage caused by production. In other words, profitability alone can mask how wasteful a business really is when environmental costs are considered.  

The research analysed more than 2,800 publicly listed companies across 61 countries between 2010 and 2022, creating one of the largest global datasets measuring how sustainable companies are, when both financial performance and environmental impact are assessed together.  

The team combined company financial records, in alignment with the green economy (defined as a low carbon, resource efficient and socially inclusive economy), with environmental disclosures such as energy use and greenhouse gas emissions. They then applied a machine learning technique known as Convexified Efficiency Analysis Trees (CEAT) to estimate how efficiently companies convert resources into revenue while minimising pollution.  

Unlike older approaches, the method models the reality that production creates both desirable outputs, such as revenue, and undesirable ones, such as emissions. This allows companies to be compared on how well they balance profit with environmental performance.  

The results found a moderate link between financial efficiency and environmental efficiency, meaning many firms that are strong financially are not necessarily good at managing their environmental impact.  

The study also found large differences across industries and countries. Firms operating in sectors with high emissions, such as manufacturing and energy, often lagged behind leaders that were better at reducing carbon intensity while maintaining revenue.  

Dr Tasiou continued: “Measuring efficiency in this broader way can help investors, regulators and policymakers identify companies that are genuinely prepared for a low carbon economy. Stronger management capability plays a key role. Firms with more capable management teams were more likely to balance profitability with environmental responsibility, suggesting that leadership decisions can strongly influence sustainable performance.  

“As governments push towards net zero and investors scrutinise environmental performance more closely, companies that fail to integrate sustainability into their operations risk falling behind.” 

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