Rolex or Rollie? The Hidden Costs of Nickname Branding

When consumers adore a brand, they often give it a nickname—from "Rollie" for Rolex to "Beemer" for BMW. Marketers are eager to embrace this consumer-driven brand love and incorporate these nicknames in their marketing strategies to appear more relatable. This tactic is called “nickname branding” and marketers expect positive results from using it. But do brands benefit from this tactic, or does it backfire? While it might seem like a clever way to connect with customers, new research suggests it could have the opposite effect.

What is nickname branding?

Nickname branding occurs when companies adopt the nicknames given by consumers in their marketing strategies. This nickname is used as a substitute for the brand’s formal name and reflects the ‘consumer language’—an attempt to connect with consumers and evoke a sense of familiarity. While this approach may seem like an immediate success, the study by Zhang et al. (2024) suggests that it could have unintended negative effects on a brand’s performance and its perceived power.

Numerous companies have already explored nickname branding in their marketing. For example, BMW has embraced their nickname "Beemer” and also used it in their marketing on X or other platforms. Their aim is clear: marketers try to build an image of relatability and approachability that aligns with the consumer's brand love.

Post from BMW (@BMW) on X, 10 Aug. 2020. https://x.com/BMW/status/1292732435248152576 

The downside of nickname branding

Through multiple studies, Zhang et al. (2024) tested their hypotheses that swapping a brand’s formal name for a nickname is a way of shifting the brand’s power, impacting its performance. 

They showed that when brands use nicknames, like “Chevy” for Chevrolet, engagement on major social media platforms declines. On X, for example, brands with nicknames received fewer likes and shares, while on Facebook and TikTok, click-through rates (CTR) dropped significantly. This suggests that nickname branding is linked to weaker brand performance, as it diminishes consumer interest and interaction online.

Advertisement from Chevrolet (@chevrolet) on X, 27 Oct. 2022. https://x.com/chevrolet/status/1585665801373220866

Beyond social media, nickname branding also negatively affects consumer decision-making, regardless of the brand type. For luxury brands, like Louboutin, a nickname such as "Loubi" led participants to choose other options more frequently. Technology brands saw a drop in purchase intent, and even mainstream brands like Starbucks suffered, with reduced brand performance when nicknamed. These effects occurred regardless of the type of nickname, whether diminutive or neutral/negative, used.

Why does this happen?

The primary reason behind these performance declines appears to be the effect on brand power. Nicknames reduce the perception of a brand’s authority and power, which directly harms brand performance. Interestingly, the research found that brand familiarity wasn't the issue—nickname branding itself weakened the relationship between consumers and the brand.

As Zhang et al. (2024) explained, giving a nickname is a battle between the “namer” (consumers) and the “named” (brand), where the act of nicknaming reflects the speaker's motivations beyond the words themselves. The brand has two options: to reject or accept the nickname. Accepting the nickname can lead to a loss in power, as viewed by consumers, as a brand submits to consumer influence. In turn, it can have detrimental effects on the brand performance.

Context matters!

It is important, however, to recognize that brand stereotypes also play an important role. Research showed that when “competent” brands (like tech or luxury) suffer greater from using nicknames, resulting in a significant decrease in brand performance and brand power. Whereas this effect is less pronounced for “warm” brands (like charities), which are perceived as friendly and approachable. This suggests that brands with a more human, accessible image may be better able to handle nickname branding without significant damage to their performance.

Moreover, the type of message also makes a big difference. When brands used a transactional message focused on economic motives (like sales), nickname branding significantly decreased brand performance. However, when the message was communal—focused on social and well-being intiatives—nickname branding didn’t harm brand performance as much.

Thus, marketers should recognize that the effects of nickname branding are less detrimental for warm brands and when used in communal messages.

Brand performance and power results for competent vs. warm brands and transactional vs. communal messages (adjusted from Zhang et al., 2024). “Warm” brands and communal type of messages suffer less from nickname branding, compared to “competent” brands and transactional messages.

Practical implications

In conclusion, while nickname branding might seem like a fun and smart marketing tactic, it can weaken brand power and reduce consumer engagement. Competent brands, in particular, should be cautious about using nicknames, as these can undermine their professional image and power. For warmer brands or those with a communal message, the effects may be less damaging, but overall, nickname branding is best used with care.

1. Acknowledge consumer-created nicknames, but avoid adopting them in your marketing strategy.
2. Allow consumers to use nicknames within their community, but maintain a clear, strong brand identity in official brand communications.
3. Carefully evaluate your brand’s stereotype and the message-type, as competent brands should be more cautious when using nickname branding.