Arthritis is a condition I manage well, thanks to my daily intake of pain reducers. I usually opt for generic acetaminophen, which is more cost-effective. However, it’s interesting to observe that many individuals still choose to purchase the brand-name Tylenol, despite its higher price tag.
Economists have engaged in an ongoing debate regarding the reasons behind this willingness to pay more for name brands. Some argue that it stems from ignorance, as health professionals, who are more aware of the effectiveness of generic painkillers, are more likely to choose them. On the other hand, some suggest that there may be a rational calculation involved. Name brands often prioritize quality as they have reputations to uphold. Ultimately, the motivations behind the premium attached to brand names may vary depending on the product.
What is evident is that brand names that inspire customer loyalty hold significant value for the companies that own them and should not be changed without careful consideration.
Now, let’s shift gears and discuss Elon Musk’s recent decision to change the name of the Twitter app, formerly known as TAFKAT, to X, along with a new logo that many, including myself, find troubling.
It’s important to differentiate between corporate rebranding, which involves changing the official name of a company, and product name changes. For example, Google rebranded itself as Alphabet to showcase its ambition to be more than just a search engine, but the search engine itself retains the name Google. Similarly, Philip Morris renamed itself Altria in part to distance itself from the association with lung cancer, while its customers continue to smoke Marlboros.
Changing product names can pose challenges as it risks diminishing customer loyalty. Therefore, companies typically only undertake such changes when there are genuine issues with the existing names. For instance, it was a wise decision to change the name of “Bib-Label Lithiated Lemon-Lime Soda” to 7Up. It took PepsiCo a surprisingly long time to realize that the Aunt Jemima brand name needed to go in an America that had progressed for the better. In the absence of valid reasons, sensible businesses retain brand names that continue to resonate with their customers.
So, why the need for Twitter to change its brand name? To be honest, there doesn’t seem to be a compelling reason. The original name was friendly, had a touch of humor, and aligned with the platform’s purpose as a place for people to engage in diverse conversations. Additionally, the Twitter logo was distinctive, instantly recognizable, and free of negative connotations.
However, Elon Musk has discarded all of that in favor of X, a name with an abrupt sound that bears no relation to the platform’s functionality. Furthermore, the new logo, a slightly modified letter X, presents several issues. It is unlikely to be eligible for trademarking as it closely resembles a lowercase x in an existing font. Many users of TAFKAT have expressed embarrassment over the logo, likening it to a porn site. Personally, I perceive the new logo as reminiscent of authoritarian political symbols, such as the Z emblem associated with Russians invading Ukraine.
Typically, modern corporations devote considerable thought to selecting brand names and logos. So, it’s puzzling to comprehend Musk’s approach to renaming TAFKAT. It is difficult to identify any business rationale behind discarding a perfectly good brand identity and replacing it with a name and logo that most people find off-putting.
Based on everything known about Musk, it appears that rational thinking was not a significant factor in this decision. He has consistently exhibited signs of the Tech Bro Syndrome, characterized by a mix of arrogance and conspiracy theories prevalent in his social circle. He accused Twitter of censoring conservatives, ignoring the fact that any attempt to control the spread of dangerous misinformation would disproportionately impact the right-wing. His purchase of Twitter was driven by the belief in his own brilliance to effortlessly make the company profitable, without necessary consideration of sound business strategy.
Furthermore, Musk’s actions since taking over Twitter have been erratic and haphazard.
Will this rebranding of Twitter be a step too far? Social networks, like international currencies, tend to exhibit durability due to self-reinforcement. People use them because others use them. It would take a series of poor decisions to push TAFKAT to the tipping point where users abandon it for an alternative platform.
However, Musk appears to be actively working towards achieving that outcome.
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