Consumer reaction to service rebranding

• Consumers׳ evaluation of a service decreases significantly after its rebranding.
• Proximity between the new brand and the service leads to a smaller decrease.
• Stronger image of the new brand vs. the initial brand also has a positive impact.
• Consumer attachment to the service place plays a positive role as well.
• Results observed for services are different from those observed for consumer goods.

The aim of this research is to understand consumers׳ reactions to brand name changes in the service sector. To this end, a quantitative study was conducted of 320 customers and eight cases of service rebranding. The results show that three variables explain the change in attitudes toward the service after its rebranding: (1) proximity between the new brand name and the service, (2) difference in image between the old and the new brand names, and (3) attachment to the service place. These results help us to identify the key factors for successful brand name substitution in services.