Tag Archives: Gen Z

CloudTec for ON Running shoes: Intuitive naming helps sell innovation

In the crowded world of running shoes, big names like Nike and Adidas are everywhere. But even with these giants, ON Running is making a mark.

It started in 2010 in Switzerland. One of the three founders, Olivier Bernhard, wanted a new kind of running shoe. He tried something different by attaching pieces of garden hose to shoe soles. This simple idea led to CloudTec, making runners feel like they are running on clouds.

One possible reason why ON Running is successful is its smart naming of this technology. The word “Cloud” signals softness, while “Tec” adds a sense of innovation. Without knowing the details of the technology, consumers can easily grasp that these shoes provide a unique running experience: soft landings followed by explosive take-offs.

Consumers often rely on technology features that are intuitively understandable. One of my favorite examples is Quattro, Audi’s all-wheel-drive system. Even for those unfamiliar with car mechanics, the name “Quattro” suggests something powerful, stable, and reliable.

A well-branded feature name gives consumers a reason to believe in the technology, even without technical knowledge.

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Reference

Gunasti, K., & Ross Jr, W. T. (2010). How and when alphanumeric brand names affect consumer preferencesJournal of Marketing Research47(6), 1177-1192.

This research develops a taxonomy of alphanumeric brand names (ABs) based on the alignment between the brand names and their links to products and attributes. Five empirical studies reveal that ABs have systematic effects on consumers’ product choices, moderated by consumers’ need for cognition, the availability of product attribute information, and the taxonomic category of the AB. In an identical choice set, the choice share of a product option whose brand name takes a higher versus lower numeric portion (e.g., X-200 versus X-100) increases, and it is preferred more even when it is objectively inferior to other choice alternatives. Consumers with low need for cognition use “the higher, the better” heuristic to select options labeled with ABs and choose brands with higher numeric portions. Consumers with high need for cognition process ABs more systematically and make inferences about attribute values based on brand name–attribute correlations. The effects of ABs on consumer preferences are prevalent for most technical products, even when consumers do not know the product category or meanings of attributes.

Why California students prefer Dutch Bros over Starbuck

Dutch Bros Coffee is growing faster than Starbucks and becoming one of the most successful coffee chains in the U.S. It is now the fourth-largest coffee brand and continues to open new locations.

One reason for this success is its business model. While Starbucks spends heavily on store remodeling, Dutch Bros focuses on small drive-thru locations. This strategy allows them to expand quickly at lower cost.

However, fast service alone is not enough. Dutch Bros succeeds because of its superior customer experience. Unlike Starbucks, which can feel transactional, Dutch Bros creates a warm and personal experience. Their “broistas” (baristas) often remember customers’ names and favorite drinks, making visit feel like a conversation rather than a purchase. The company’s motto, “We may sell coffee, but we are in the relationship business,” reflects its focus on customer connections.

Many students also enjoy the secret menu and customizeable drinks, such as Golden Eagle and Rebel Energy.

Dutch Bros understands what Gen Z wants, that is, a fast and friendly experience. Rather than focusing solely on coffee taste, it focuses on the experience of coffee buyers. Customer experience matters.

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Reference

Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journeyJournal of marketing80(6), 69-96.

Understanding customer experience and the customer journey over time is critical for firms. Customers now interact with firms through myriad touch points in multiple channels and media, and customer experiences are more social in nature. These changes require firms to integrate multiple business functions, and even external partners, in creating and delivering positive customer experiences. In this article, the authors aim to develop a stronger understanding of customer experience and the customer journey in this era of increasingly complex customer behavior. To achieve this goal, they examine existing definitions and conceptualizations of customer experience as a construct and provide a historical perspective of the roots of customer experience within marketing. Next, they attempt to bring together what is currently known about customer experience, customer journeys, and customer experience management. Finally, they identify critical areas for future research on this important topic.