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Companies also must assess risk versus reward when branding a product
upgrade. On the one hand, changing the brand name may induce
excitement among prospective consumers who value new bells and
whistles over small improvements. On the other hand, customers may
worry that new features pose the risk of new glitches and a steep
learning curve. It's important for a firm to predict the likelihood of
risk aversion in its branding decision. Sometimes this is an
unpredictable matter of a consumer's individual personality; for every
Cautious Carl in the world, there's a Risky Rita. But many times, it's
a matter of the situation at hand.
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