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John Nofsinger is an associate professor of finance at Washington State University and a speaker, writer, and scholar on behavioral finance. See full bio

Comments on "A Rose.com, or Not"

A Rose.com, or Not

What if companies could manipulate your feelings about them? One example is a name change. Does a change to a dotcom change your feelings about the firm? Read More

earthy names

I think any name the promotes a green image is a good bet right now. Even companies that do very little for the environment can gain supporters by putting an earthy sounding word in thier title.

Earthy Names (Fin325)

I agree with the use of earthy names. That I believe will help. So much of the media is focused towards going green so changing a company name to play up this hot topic is good. Also I believe that changing a name gets a lot of attention which could lead to more people looking into it and possibly buying into these companies.

technology and electricity

Looking at the market these days, we notice that technology and oil & gas industry are the industries that are doing better right now. Therefore, a company that changes its name to promote one of these two industries, might have a positive return on the upon the name-change announcements.

Fin 325

You must be careful when creating a name for your company. Many investors rely solely on the name of a company to base their opinions. Unfortunately, a lot of the times the name does not match up with what the company is about. Entrepreneurs must be careful to adequately name their businesses or they could fail simply because they chose the wrong name.

How is this allowed?

I don't understand how these companies can just up and change their name at the drop of a hat. I think that it is a great way to get more money but is it really legal? Especially the ones that don't even do anything on the internet.

It seems like this tactic

It seems like this tactic would backfire on a company because of course it will work in the short term but when the fad is over, what happens? Are the companies going to keep changing names every time a new fad comes along?

Fin 325

Nofsinger is absolutely right in the fact that companies can and will manipulate investors feelings in this way. It is a simple fact of marketing technique and skill. We as investors need to just be aware of this. Marketing manipulation is everywhere. I also completely agree with Becky who left the first comment that "green" is very in right now and it would definitely attract investors. It would attract my attention that is for sure.

Fin 325

One reason I could think of that a company might change its name to a .com is that it is another way to get people more interested about the company. If you hear about Company A for a while you might be interested, but if you hear about CompanyA.com you will probably be more likely to actually check them out because you know exactly where to find them.

Fin 325, Sec 1

These companies are merely making good marketing decisions. It is ultimately the responsibility of the investor to go beyond the name of a company and research further before investing.

FIN 325

The name of a company will give an investor their first impression. Therefore, it is important to name it something appealing. Nowadays, eco-friendly products are very popular so companies may be going for something that supports that. Whether it be a .com name or a green name, companies will always adapt to what the market demands. This is a smart business decision.

FIN 325

I think this is a kind of trend, which is made by marketing stretegy. This stretegy might be very useful for many companies. Also, even though many people know this phenomenon is just temporary, they are affected by those trend, and alos,many company will try to manipulate their prospective customers.

I think this is a sign of

I think this is a sign of strong marketing and market research by companies. In fact, my girlfriends employer is going through the same thing right now. Because of market feelings toward certain products, they are considering changing their name to generate more market interest, even though their operations will not change.

Fin 325

First off, dotcoms are important in the world. How do people who live in Pullman, WA get to know gossip and latest news with out the internet. For all those states that have tons of cities no where near a large city they need the dotcom business to reach the unreachable. I can see how changing the name to dotcom would create more business and more hits on the site, but for those not involved with the internet to start with, what were they thinking? Dotcoms are businesses that have a focus on the internet or their services can be purchased over the web. I agree that the trend a few years ago was the internet and many companies reached to fulfil the newest trend.

I read this article last of

I read this article last of the five that I read. I was wondering if this affect could also be related to the earlier article about companies being in the news having increased stock. Although I am sure investors were big on investing in Dot coms during the dot com boom.

FIN325

This article is very interesting. The companies become more attractive by changing their name to dotcom. From my point of view, dotcom name to me is more professional and technological type of companies, and I am willing to put my money into those types of companies since they are look like in a right market trend.
Like the article says, changing name is risky. Because either consumers or investors advance themselves very fast and they also change their mine all the time, they are unpredictable.
I think the best way to keep the company lasting forever is updating itself before the market and people updating. It means we have to have the foresight to keep the investors.

Fin 325

I find this very intresting but i think a name change does impact our affect. Not just with dotcoms, which i believe our back to being popular with the advances in technology and the internet itself, but also with any business name. With just the change in the name Computer Literacy, Inc. to Fatbrain (without the .com) seems like a much more intresting company and original.

FIN 325

I think the name of the company will directly affect how the customers think about the company. The company name can make as a brand loyalty of the customer, such as the BMW or Mercedes Benz. When most of the people hear these name, they will directly think about some expensive or luxury car. It is how the company name will reflect the image in people mind. Therefore knowing how to get good name for company is very important

Emotions

Changing the name of a company is changing the emotions of the customer. A customer may be more inclined to buy or purchase stock from a company that they can relate to or feel a sense of security in. The name of a company is their first impression. When you meet a person and have a really bad first impression you do not want to continue interacting with them. The same goes for the name of a company. The name is what draws consumers; customers need to feel comfortable before they invest any of their time or money.

The name of the company is

The name of the company is one of the most important things. It is the first thing that evokes emotions about your company. I think that having a constant name behind a product people can trust is very important. That way when people hear your name they know they can trust it. By changing your name it could bring confusion to previous customers. However in certain times things must be done in order to increase the value of your company and if a name change is necessary then it must be done. However I believe that when people see that a company is changing their name they think that something must be bad with the previous one which could draw concerns about your company.

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