Does a simple brand name make you more successful?

You have considered your brand name carefully. But did you know that a simple brand name performs better than a difficult one? Indeed, a simple brand name is convenient for consumers. In fact, all branding should be aimed at making things as easy as possible for the consumer. Why does this matter? Read more to find out.

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Investors are more likely to buy stocks with an easy name

Research shows that stock brokers don't always think rationally when investing and bidding. They make mental shortcuts based on the brand name and its abbreviation. When the brand name's abbreviation is easy to read, for example, BAL instead of BDL, the brain expends less effort in reading the abbreviation. 

As a result, stocks with an easy-to-read and pronounceable name are more likely to be purchased than stocks with a difficult and hard to pronounce names. This applies both to the brand names and their abbreviations (Alter & Oppenheimer). 

A brand should help make consumer behaviour as easy as possible

Branding learning 6 - merken moeten consumentengedrag zo makkelijk mogelijk maken

The phenomenon that an easy stock name leads to more success at the stock market can be attributed to System 1 Thinking. In System 1, the brain processes information quickly and automatically (see also learning 2). An easy name encourages System 1 thinking because the brain doesn't have to expend much effort. The opposite is true for a difficult name which create a hiccup in the thinking - giving the impression that a company or share "feels" not quite right.

A brand should make consumer behaviour as easy as possible.

This concept extends beyond brand names and includes everything around the brand.

This applies to:

  1. The brand name.

  2. The brand's appearance.
    Consistency in branding creates an ease in quick recognition of the brand (the brain doesn't have to expend much effort).

  3. The brand's communication.
    Consistency in the look and feel with its offerings and promise.

  4. The brand's availability.
    The brand's product must be easy to buy, allowing the consumer to expend as little effort as possible in obtaining it.


Ensure your brand makes consumer behaviour as easy as possible. In this way, the brain has to think as little as possible, increasing the chance that the consumer chooses your product or service.

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