diff --git a/app/index.js b/app/index.js
index 647a218..078b143 100644
--- a/app/index.js
+++ b/app/index.js
@@ -13,18 +13,13 @@ function jsonEscape(str) {
   return jsesc(str, {quotes: 'double'});
 }
 
-function generateName(str) {
-  str = _.chain(str)
-    .deburr()
-    .trim()
-    .replace(/\s/g, '-')
-    .value();
-  return str.toLowerCase();
-}
-
 module.exports = generators.Base.extend({
   initializing: function() {
     this.pkg = require('../package.json');
+
+    this.dirname = path.basename(this.destinationRoot());
+    this.dirnameNoJs = path.basename(this.dirname, '.js');
+    this.dirnameWithJs = this.dirnameNoJs + '.js';
   },
 
   prompting: function() {
@@ -58,7 +53,10 @@ module.exports = generators.Base.extend({
       type: 'input',
       name: 'repo',
       message: 'What is the repository/project name?',
-      default: generateName(this.appname)
+      // This default works when the directory was generated from a cloned
+      // repository, or when the user intends to make a repo with the same
+      // name as the directory. We assume this is the most common situation.
+      default: this.dirname
     }, {
       type: 'input',
       name: 'description',
@@ -73,7 +71,11 @@ module.exports = generators.Base.extend({
       type: 'input',
       name: 'variable',
       message: 'If there is one, what is the name of this project\'s main variable?',
-      default: _.camelCase(this.appname)
+      // The directory name – without `.js` – is likely to be the name of the
+      // main variable. For instance:
+      // `hello-there.js` => `helloThere`
+      // `hello-there` => `helloThere`
+      default: _.camelCase(this.dirnameNoJs)
     }];
 
     var self = this;
@@ -82,16 +84,15 @@ module.exports = generators.Base.extend({
         self.user = jsonEscape(props.user);
         self.repo = jsonEscape(props.repo);
 
-        // Remove `.js` from the npm module name, per the "tips" section of the
-        // npm documentation: https://docs.npmjs.com/files/package.json#name
-        if (_.endsWith(self.repo, '.js')) {
-          self.moduleName = self.repo.slice(0, -3);
-        } else {
-          self.moduleName = self.repo;
-        }
+        // A good candidate for the module name is the directory, which we assume
+        // to be derived from the repository name, stripped of any `.js` extension.
+        // The extension is stripped per the "tips" section of the npm docs:
+        // https://docs.npmjs.com/files/package.json#name
+        self.moduleName = jsonEscape(self.dirnameNoJs.toLowerCase());
 
-        // The mainFile, on the other hand, must always have an extension
-        self.entryFileName = self.moduleName + '.js';
+        // The mainFile, on the other hand, must always have an extension. Once
+        // again we derive this from the name of the directory.
+        self.fileName = jsonEscape(self.dirnameWithJs.toLowerCase());
 
         self.description = jsonEscape(props.description);
         self.author = jsonEscape(props.author);
diff --git a/app/templates/package.json b/app/templates/package.json
index d754ddb..445a26d 100644
--- a/app/templates/package.json
+++ b/app/templates/package.json
@@ -2,7 +2,7 @@
   "name": "<%= moduleName %>",
   "version": "0.0.1",
   "description": "<%- description %>",
-  "main": "dist/<%= entryFileName %>",
+  "main": "dist/<%= fileName %>",
   "scripts": {
     "test": "gulp",
     "lint": "gulp lint",
@@ -55,7 +55,7 @@
     "webpack-stream": "^3.1.0"
   },
   "babelBoilerplateOptions": {
-    "entryFileName": "<%= entryFileName %>",
+    "entryFileName": "<%= fileName %>",
     "mainVarName": "<%= variable %>"
   }
 }