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The Impact of Artificial Intelligence on Brand Name Change:
Psychological Mechanisms and Purchase Intention
Myriam EL ALEM
Doctor in Marketing – University of Tunis El ManarFaculty of Economic Sciences and Management
of Tunis – Labo ERMA
DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100395
Received: 23 November 2025; Accepted: 01 December 2025; Published: 12 December 2025
ABSTRACT
This study investigates how the use of artificial intelligence (AI) in brand name change decisions shapes
consumer responses. Drawing on perceived functional improvement, signaling theory, and resistance-to-change
frameworks, the research proposes and tests a structural model linking AI presence, perceived functional
improvement, brand trust, resistance to change, and purchase intention. Using PLS-SEM, findings show that AI
presence significantly enhances perceived functional improvement, which strengthens brand trust and
subsequently reduces consumer resistance. Lower resistance then increases purchase intention. The study
highlights the strategic value of AI as both a decision-support tool and a credibility signal in rebranding
processes, offering theoretical insights and practical implications for AI-enhanced brand management.
Keywords: Artificial Intelligence; Brand Renaming; Perceived Functional Improvement; Brand Trust;
Resistance to Change; Purchase Intention;; PLS-SEM.
INTRODUCTION
Artificial Intelligence (AI) has experienced explosive growth over the past decade, significantly contributing to
the integration of various aspects of life and enabling the resolution of many complex challenges. In marketing
and brand management, AI encompasses numerous associated functions and concepts, often being broadly
defined to include various types of computer systems capable of directly executing or assisting tasks that
previously required human emotions or cognition, using software and algorithms (Ameen, Tarhini & Reppel
(2020).
The integration of artificial intelligence (AI) into marketing practices is transforming not only operations
(automation, personalization) but also consumers' perceptions of brands. AI is used particularly in creative
processes such as generating, modifying, or replacing brand names. These strategic decisions, historically made
by human experts, are now increasingly being co-created or fully automated by AI systems capable of analyzing
linguistic structures, optimizing semantic consistency, and anticipating consumer preferences. Recent work has
shown that AI can improve the speed, creativity, and functional relevance of brand development, while reducing
associated costs (Rege, 2025; Balabanova, 2025).
However, replacing or changing a brand name is perceived as a risky change by consumers, likely to cause
confusion, disorientation, and resistance (Kapferer, 2007). It is a sensitive moment that can provoke rejection or
resistance from consumers (Kapferer, 2007; Muzellec & Lambkin, 2006). Integrating AI into this process could
transform this perception: when consumers perceive that AI improves the quality, relevance, or consistency of
the new name or identity (Hwang & Wu, 2024; Hartmann, 2025), it can strengthen their trust in the brand
(Gbadamassi & Diakité, 2025) and reduce their resistance to change. AI-assisted rebranding is therefore a
promising but complex development and practice, requiring further study of its influence on functional
perception, brand trust, and resistance to change.
The objective of this study is to examine the effect of integrating artificial intelligence into the brand name
substitution process on improving functional perception, strengthening brand trust, and consequently reducing
consumer resistance to change.
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This study raises major questions: To what extent does the presence of AI in the brand name substitution process
improve the perception of a functional improvement, strengthen brand trust, and help reduce consumer resistance
to change?
To answer these questions, a mixed-methods approach will be used, combining a literature review on the use of
AI in the brand name substitution process with an empirical study using a quantitative questionnaire.
Theoretically, this research contributes to the emerging literature on AI-assisted branding by demonstrating the
role of perceived functional improvement and trust in the acceptance of brand identity transformations. From a
managerial perspective, the results offer decision-makers concrete guidance on the optimal integration of AI into
rebranding strategies, showing that transparency, hybrid human-machine use, and highlighting perceived
functional benefits can mitigate consumer resistance, improve buy-in to change, and ensure a smoother and more
credible identity transition.
LITERATURE REVIEW
Advances in artificial intelligence are profoundly transforming brand management processes, particularly in
name change decisions. Traditionally, renaming relied on managerial intuition and qualitative studies aimed at
anticipating consumer resistance (Kapferer, 2007). Several studies show that AI can rapidly generate name
proposals based on broad linguistic and semantic databases, while improving the relevance, consistency, and
creativity of the proposed options (Rege, 2025; Balabanova, 2025). Applied studies demonstrate that AI can
actively participate in the conceptual phases of rebranding; Hwang and Wu (2024) show that generative AI can
add value in rebranding workshops by proposing ideas that human designers can then use to ensure cultural
consistency. Applied studies demonstrate that AI can actively participate in the conceptual phases of rebranding.
Hwang and Wu (2024) show that generative AI can add value to rebranding workshops by suggesting ideas that
human designers can then use to ensure cultural consistency. At the strategic level, Gupta (2025) emphasizes that
AI can strengthen the clarity, consistency, and international adaptability of brand identities, particularly in the
choice of names aligned with the expectations of global markets. However, several authors point out that the
contribution of AI must be regulated by human supervision to avoid the risks of cultural misalignment or a loss
of perceived authenticity (Gbadamassi & Diakité, 2025).
From a theoretical point of view, the role of AI falls within the theory of perceived improvement, according to
which AI tools, capable of optimizing the relevance, semantic coherence and quality of the new name, reinforce
the perception of a functional gain (Huang & Rust, 2021). Signaling theory also suggests that the use of AI
signals a rigorous, neutral, and data-driven process, increasing the legitimacy of change (Spence, 1973).
Furthermore, uncertainty reduction theory indicates that AI helps mitigate perceived risks by simulating name
acceptability and predicting negative reactions (Berger & Calabrese, 1975).
Finally, research on AI adoption in marketing shows that consumers attribute to AI the power of optimization
and neutrality, which reduces resistance when the algorithm is perceived as improving the quality of the decision
(Davenport, Guha, Grewal & Bressgott, 2020). Thus, AI is not merely a technical tool, but a cognitive and
symbolic actor that restructures how name changes are conceived, evaluated, and accepted.
Research hypotheses and conceptual model
AI can be seen as a tool for improving the relevance of a new name, which represents a functional improvement
for the consumer. According to Hartmann (2025), studies show that AI-generated visuals are sometimes judged
to be more creative and attractive than those produced by human designers. Hwang & Wu (2024) demonstrate
that AI can produce more varied and relevant proposals, although cultural adaptation requires human oversight.
Recent studies (Cheng & Jiang, 2023; Longoni & Cian, 2022) show that AI-assisted marketing creatives are
perceived as more relevant, accurate, and better suited to consumer expectations. The presence of AI acts as a
signal of technological competence, suggesting that the resulting products will be more relevant, consistent, and
effective. This is the basis of the Technology Acceptance Model (TAM) (Davis, 1989), which posits that
perceived usefulness is a major determinant of a technology's positive evaluation. Thus, the presence of AI in
the creation or substitution of a name logically reinforces the perceived functional improvement of the result.
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H1 : The presence of artificial intelligence in the brand name substitution process increases the perceived
functional improvement.
Consumer trust rests on two pillars: the perception of competence and reliability (Mayer, Davis & Schoorman,
1995). AI, when it improves functional performance, acts precisely on the dimension of technical competence
(Schaefer, K.2016) and thus reinforces the perception of professional competence attributed to the brand.
Several studies show that the quality produced by AI increases trust in the technology (Hoff & Bashir, 2015; van
Pinxteren et al., 2019) but also in the company that integrates it. Thus, the perception of a functional improvement
constitutes an important antecedent to trust in the brand that adopts AI in its creative process.
H2 : The perceived functional improvement of the new brand name strengthens trust in the brand.
The literature on technology acceptance shows that trust can mitigate psychological barriers: when a user trusts
the technology, they perceive less complexity or risk, which reduces inertia and promotes adoption. This
mechanism can explain a decrease in resistance to change. According to Kapferer (2007) and Muzellec &
Lambkin (2006), consumer resistance to rebranding stems from a disruption of familiar reference points, an
increased perceived risk, and a possible feeling of loss of brand identity. In the specific case of AI, when it
improves the perceived performance of the new name, trust in the brand and its decision-making process is
strengthened, thereby reducing cognitive and emotional resistance. According to Kim, Ferrin, and Rao (2008),
trust facilitates the acceptance of decisions perceived as risky or disruptive and reduces the fears and uncertainty
associated with change (Morgan & Hunt, 1994). In rebranding, high trust mitigates negative reactions (Muzellec
& Lambkin, 2006; Walsh et al., 2010). According to Longoni & Cian (2022), the use of AI perceived as beneficial
decreases reactance and behavioral resistance.
H3 : Trust in the brand reduces consumer resistance to brand name substitution.
The theory of resistance to change (Oreg, 2003; Claudy et al., 2015) shows that resistance constitutes a cognitive,
emotional, and behavioral barrier that prevents the acceptance and adoption of new offerings. When this
resistance decreases, the consumer becomes more receptive and more willing to engage in behaviors favorable
to the product or brand. According to Kleijnen et al. (2009), a decrease in resistance increases openness to change
and predisposes consumers to adopt the new offering. In the context of technological innovation, a decrease in
reactance or skepticism increases the intention to adopt and purchase (Kim, Ferrin & Rao, 2008).
H4 : Reducing consumer resistance to change increases their intention to purchase the product.
The various links between the variables are represented by the explanatory conceptual model presented below:
The conceptual model of research
Source : Developed by the authors
Methods and Data
To gather the information necessary to test the hypotheses mentioned above, a quantitative survey was conducted
online with 255 consumers aged 20 to over 50. A questionnaire was designed to collect data on consumer
perceptions of the variables selected based on the literature review. The questionnaire was pre-tested with 10%
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of the sample to verify its clarity and precision and to eliminate any potential biases related to misunderstanding
the questions. This pre-test showed that all the questions were perfectly understandable to the respondents,
allowing us to continue data collection. Data collection took place from September 2nd to 30th, 2025. The details
of our sample will be presented in Table 1 below:
Table 1: Sample Details
Characteristics
Details
Percentages
Gender
Men
48.3%
Women
51.7%
Age
21 - 30
56.8%
31 - 40
18.7%
41 -50
14.8%
+ 50 ans
9.7%
Intellectual Level
Primary
4%
Secondary
35%
University
61%
Source : Developed by the authors
To measure the variables in our study namely, AI presence, perceived functional improvement, trust, resistance,
and purchase intention. We used measurement scales previously published in the literature. These scales proved
reliable and valid. For scales available only in English, we followed a double back-translation procedure. To
ensure content validity, the vocabulary was adapted to the context of AI applications. The following table
summarizes the different measurement tools.
Table 2 : Summary Table of Variables and Selected Measurement Scales
Variables
Adopted by
IA Presence
Longoni, C., & Cian, L. (2022).
Perceived functional improvement
Cheng & Jiang (2022)
Trust in the brand
Hoff & Bashir (2015)
Resistance to change
Walsh, G. et al. (2010)
Purchase intention
Chen and Chang (2012)
Source : Developed by the authors
RESULTS
Validation of Measurement Scales
To examine the causal relationships between the latent variables of the conceptual model : AI presence, perceived
functional improvement, trust, resistance, and purchase intention, the Partial Least Squares Structural Equation
Modeling (PLS-SEM) method was applied using SmartPLS 3 software. The PLS analysis followed two main
stages (Hair et al., 2021). First, the measurement model was evaluated to assess item reliability, the internal
consistency of the scales, and convergent validity. Second, the structural model was examined to test the causal
hypotheses. Coefficient estimation was performed using the bootstrapping procedure (5000 resamples), which
provided the t-values, β coefficients, and p-values required to determine the statistical significance of the
hypothetical relationships (Hair et al., 2021).
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Table 3: Results of the Measurement Model Analyses
Variables
Items
Loadings
Cronbach's
Alpha
Composite
reliability
AVE
AI presence
IA_1
0.877
0.764
0.818
0.705
IA_2
0.816
IA_3
0.806
perceived functional
improvement
PERF_1
0.867
0.841
0.903
0.757
PERF_2
0.871
PERF_3
0.878
PERF_4
0.857
0.892
0.925
0.754
Trust in the brand
TRUST_1
0.811
0.877
0.915
0.730
TRUST_2
0.894
TRUST_3
0.868
TRUST_4
0.843
Resistance to change
RESIST_1
0.899
0.833
0.889
0.671
RESIST_2
0.865
RESIST_3
0.867
RESIST_4
0.896
Purchase intention
PI _1
0.909
0.869
0.920
0.793
PI _2
0.886
PI _3
0.876
Source: Developed by the authors
The results of the measurement model evaluation show that the indicators have loadings ranging from 0.811 to
0.909, thus exceeding the recommended threshold of 0.7 (Hair et al., 2009). This indicates that all items are
correlated with their respective constructs. The values for Cronbach's Alpha and Composite Reliability (CR) are
also satisfactory. The convergent validity of the constructs is confirmed, as all Average Variance Extracted (AVE)
values are greater than 0.5 (Chin, 1998).
Results of the Structural Analysis
The results presented in the table below indicate that all hypotheses derived from our research model are
confirmed. The β coefficients demonstrate strong magnitude, and the p-values confirm the statistical significance
of all hypotheses. The structural model reveals significant causal relationships among all the variables studied.
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Table 3: Significance of Causal Links
Liens
β (Path Coefficients)
P-values
Hypothesis Status
AI presence ---> Perceived functional
improvement
8.911
0,000
Accepted
Perceived functional improvement --->
Trust in the brand
10.181
0,000
Accepted
Trust in the brand ---> Resistance to
change
5.816
0,000
Accepted
Resistance to change ---> Purchase
intention
649.233
0,000
Accepted
Source: Developed by the authors
The structural model will be presented in Figure 1 below:
DISCUSSION
The results of the structural model analyses show that all relationships between variables are significant, with
each link exhibiting a positive β coefficient and p-values equal to 0.000, indicating strong statistical robustness.
For the first hypothesis, the relationship between the presence of AI and perceived functional improvement is
very strong and significant = 8.911, p = 0.000). In other words, when consumers know that artificial
intelligence is being used in the brand name change process, they perceive greater accuracy, relevance, and
quality in the proposed name. This confirms the idea that AI acts as a performance signal (Cheng & Jiang, 2022;
Longoni & Cian, 2022), reinforcing expectations of efficiency and functional superiority.
Perceived functional improvement positively and significantly influences brand trust = 10.181, p = 0.000),
thus validating hypothesis 2. This result aligns with competence-based trust models (Mayer et al., 1995), where
the evaluation of perceived performance serves as the basis for trust formation. Brand trust significantly reduces
resistance to change. A high level of trust reduces uncertainty and defensive reactions, strengthening acceptance
of the rebranding-related changes. This result is consistent with the brand equity-trust theory (Hoff & Bashir,
2015 ; van Pinxteren et al., 2019), which explains that trust stabilizes the consumer-brand relationship and
mitigates negative reactions to identity changes.
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Finally, resistance to change strongly and significantly influences purchase intention. This relationship shows
that the lower the resistance, the more substantially the purchase intention increases. This result aligns with the
literature on resistance to innovation (Walsh, G. et al. (2010); Claudy et al., 2015), which posits that removing
psychological barriers is a major determinant of the adoption and purchase of products associated with a brand
change.
CONCLUSION THEORETICAL AND MANAGERIAL IMPLICATIONS AND FUTURE
RESEARCH DIRECTIONS
This study highlights the central role of artificial intelligence in the brand name substitution process, showing
that its presence significantly improves the functional perception of the new brand name, strengthens consumer
confidence, reduces their resistance to change and, ultimately, increases their purchase intention.
This study makes a theoretical contribution by showing that the presence of AI in rebranding acts as a credible
signal of functional improvement, strengthening trust and reducing resistance to change, thus enriching existing
marketing models on trust, resistance, and innovation. It also demonstrates that AI should not be considered
solely as a technical tool, but as a perceived actor influencing consumers' cognitive and behavioral judgments.
From a managerial perspective, the results indicate that companies should transparently highlight the role of AI
in creating or modifying their brand name to strengthen the credibility of the change, while combining human
expertise and AI to reassure consumers and reduce resistance. Furthermore, accompanying the rebranding with
clear communication about the functional benefits of the new name can foster buy-in and increase purchase
intent, confirming the importance of a change strategy focused on both perceived performance and trust.
However, several limitations must be highlighted: the sample used remains confined to a specific context, which
limits generalization; the measurement of AI presence relies on self-reported perceptions that may be influenced
by cognitive biases; and finally, the study focuses on a linear model that does not account for potential moderating
effects such as technological expertise, involvement in the product category, or sensitivity to innovation. Future
research could therefore explore diverse sectoral contexts, incorporate real-world behavioral purchasing
measures, analyze the longitudinal effects of AI-assisted rebranding, or examine the role of moderating variables
to better understand why some consumers more readily adopt an AI-generated name change than others. This
extension would offer a more nuanced view of the impact of AI on rebranding acceptance dynamics.
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