The Influence of the Phonetic Elements of a Name on Risk Assessment

Abstract

Abstract The authors propose that the phonetic elements of a name affect risk perception. Specifically, they find that people prefer a name that evokes volatility when faced with a risky prospect, but prefer a name that evokes calmness when faced with a safe prospect. The authors posit that a volatile (vs. calm) prospect name results in more perceived fluctuations, and thus greater movement from, the given risk level. Therefore, a volatile prospect name results in a wider range of probabilities compared to a calm prospect name. The authors test the proposed effect and the role of the phonetic elements of a name using real-world data and controlled studies within diverse consumer domains (e.g., product evaluations, wagering, and branding). Findings contribute to the larger theoretical area of phonetic symbolism and provide guidance for practitioners trying to maximize preference for a given product, service, or policy.