Trading Faces

NY Times summarized a study from  The Proceedings of the National Academy of Sciences on company names, language and money:

A stock ticker symbol or company name that is easy to pronounce may be a significant factor in short-term increases in stock price, according to a report published online yesterday in The Proceedings of the National Academy of Sciences.

Two researchers created a list of fictional stocks and then had a group of students rate them according to ease of pronunciation. “Ulymnius,” for example, was rated complex, while “Mayville” was not.

They then asked a second group to estimate the future performance of each of the stocks. As the researchers predicted, “fluently named” companies were estimated to outperform the hard-to-pronounce ones by a significant margin.

…People respond positively to easily processed information in other areas as well. For example, they are more likely to believe an aphorism that rhymes (”woes unite foes”) than one with an identical meaning that does not rhyme (”woes unite enemies”). Studies cited in the report demonstrate that people more often judge easily processed information to be true, likable, familiar and convincing than more complex data.

The Times fails to mention two other curious reports in Sunday’s PNAS, notably, “Polarized axonal surface expression of neuronal KCNQ channels is mediated by multiple signals in the KCNQ2 and KCNQ3 C-terminal domains” and “A hybrid two-component system protein of a prominent human gut symbiont couples glycan sensing in vivo to carbohydrate metabolism”, which are basically concise summaries of the Interbrand and Landor naming processes, respectively.

[ More posts about | More blogs about naming ]

Inside Landor’s Company & Product Naming Process

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“The new name, Enactus, was initially inspired by the idea of compounding “Entrepreneurial Action,” but it was created to transcend those roots and encompass the strong emotion that the brand evokes. The name encapsulates the intricate balance between youthful energy and a sophisticated stature that defines the organization.”

Full case study

“Tan” suggests dominance:

“Our Hamburg and Asia Pacific offices collaborated on the name Magotan, alluding to the Latin word magnus and the kingly color magenta; tan suggests dominance…”

Full Case Study

“Landor developed the name Centravis, which directly communicates the central positioning of the brand as combining the best of all worlds. The suffix “vis” means force, or power in Latin, and underlines the ambitious and growth-oriented business strategy…”

Full Case Study.
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blandor-1Says Blandor the Imponderable: “I fondly recall Poppy and I attending the semi-annual wisdom tooth convention. As we sat on our haunches, grooming each other and eating our sack lunch of turkey biscotti and marshmallow toast, we’d randomly jump up and shout, “Wottle up the bull throttle!”. We would then travel the 3 hours home, in complete silence, until our arrival at Mandible Station.”

More on the misspent journey of Blandor’s life.