Logo Effects on Brand Extension Evaluations from the Electrophysiological Perspective

Area of Science:

• Cognitive Neuroscience
• Marketing Science
• Consumer Behavior

Background:

• Brand extension strategies include brand name extension (BN) and brand logo extension (BL).
• Effectiveness of BN vs. BL for dissimilar brand extensions requires further investigation.
• Understanding consumer acceptance and underlying cognitive processes is crucial for product promotion.

Purpose of the Study:

• To compare the effectiveness of brand logo extension (BL) versus brand name extension (BN) for dissimilar brand extensions.
• To investigate the electrophysiological processes underlying consumer acceptance of different brand extension strategies.
• To determine which strategy better enhances product promotion success in enterprises.

Main Methods:

• Utilized event-related potentials (ERPs) to measure electrophysiological responses.
• Subjects evaluated acceptance of dissimilar brand extensions (S2) combined with famous brands (S1).
• S1 stimuli included both brand name (BN) and brand logo (BL) identity signs.

Main Results:

• Behavioral data indicated higher acceptance for brand logo extension (BL) compared to brand name extension (BN).
• Electrophysiological data showed a less negative N2 component for BL, suggesting reduced cognitive conflict.
• A larger P300 component was observed for BL, indicating enhanced categorization processes.

Conclusions:

• Brand logo extension (BL) is a more successful strategy for dissimilar brand extensions than brand name extension (BN).
• The N2 component reflects cognitive conflict between brand-product combinations and long-term memory.
• The P300 component is associated with the categorization process within working memory.