There are numerous reasons for choosing unconventional spelling of a familiar word in your brand name: from Krispy Kreme to Lyft to Flickr. But this is often a contentious issue with strong opinions and assumptions to unpack.
Avoid over-generalizations like "consumers dislike alternate spellings" -- if that were true then no-one would do them, and yet... look around. Instead, there's plenty of good research and reading to support the main discussion your brand needs to have about naming: what is the strategic goal of my aesthetic choice?
If you want to play it safe, the short answer is don't do unconventional spelling of familiar words. But... there's plenty of data and arguments for why it might be advantageous [aside from trademark defensability which is an obvious motivation].
Wong, A. D. (2013). Brand names and unconventional spelling: A two-pronged analysis of the orthographic construction of brand identity. Written Language & Literacy, 16(2), 115-145.
One of the better and more accessible discussions on how to think about unconventional brand name spelling. Wong makes the case that alternate or unconventional spellings of common words have the capacity to index (point to) particular social identities. The paper's examples are a bit dated, like talking about how Göt2b hair gel used spelling to reference German rave culture, but the point very much still holds. You can use alternate spelling or stylization to index certain social or culture affiliations tied to your brand identity and brand strategy. The success of the name isn't based on the choice to use unconventional spelling or not, but rather based on the value of the social identity the spelling is trying to index.
Luna, D., Carnevale, M., & Lerman, D. (2013). Does brand spelling influence memory? The case of auditorily presented brand names. Journal of Consumer Psychology, 23(1), 36-48.
A highly relevant point is made in this paper with regard to unconventional spelling, the use of unfamiliar words as names, and coinages. To quote the article: "Many brands are nonwords (they do not correspond to previously existing words; e.g., Bose). A considerable stream of research has shown that the spelling of a nonword may be enhanced by the spelling of a word heard immediately before that contains the same spelling pattern as the target nonword. For example, in lexical priming a real word that sounds and is spelled like the nonword is presented before the nonword (e.g., “rose” before Bose)."
This is a great reason why you have to consider your naming options in a range of contexts, and think about how your broader verbal branding and verbal identity frameworks can support the success of your name.
Costello, J., Walker, J., & Reczek, R. (2021). When Brands Get Disemvoweled: Challenging the Conventional Wisdom behind Unconventional Brand Names. Advances in Consumer Research, 49, 364-365.
There's lots of reasons to be cautious or skeptical about unconventional spelling in brand names. Some of the research cautioning against it is, to be blunt, lazy -- or people's interpretations of it is oversimplified and lacks nuance. This study, by contrast, is higher quality and has a stronger theoretical motivation. The basic argument here is that consumers who recognize alternate spelling as a sales tactic are likely to be more skeptical and critical of the brand's offer, and may see the brand as less sincere. Of course, other research shows that alt spellings can contribute to sincerity and audience connection, so these things need to be evaluated on a case-by-case basis.