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They are naming themselves after people.
Over the last few years, a crowd of new companies has emerged across tech, finance and health sporting a first-name brand. Oscar, Alfred, Lola — they have the look and feel of a friend, a colleague, maybe even your cat. And that’s the point: Make a connection with consumers that even Carnegie would appreciate.
“A short first name changes everything — as it’s unexpected, less concerned with sounding corporate and serious and is inherently more human,” said Steve Manning, the founder of a Sausalito, Calif., naming agency called Igor.
The strategy seems to be working. Research shows that the more simple and human-sounding the name, the greater the company’s success. Brands with short, easy-to-pronounce names were viewed more positively by investors, a 2012 study published in the Journal of Financial Economics found. By reducing name length by just one word, companies can see a boost of 2.53 percent to their book-to-market ratio — a formula used to find a company’s market value — or $3.75m for a medium-size firm, according to the study.
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