How and When Alphanumeric and Suggestive Brand Names Affect Consumer Preferences

Firms often use alphanumeric and suggestive brand names to influence consumers' preferences, yet how these influences occur has received limited attention. In two experiments, authors show that alphanumeric and suggestive brands can both mislead or guide consumer choices. Brand name effects on choice are moderated by information availability and need for cognition. Suggestive brands cue the attribute levels consumers ascribe to brands with missing information. Consumers use alphanumeric brands heuristically; higher numbers are perceived as associated with better products. High need for cognition consumers are less affected by misleading brands and attend more to guiding brands.