Abstract
The present study aims to investigate functional involvement of brain areas in consumers’ evaluation of brand extension that refers to the use of well-established brand for launching new offerings. During functional magnetic resonance imaging (fMRI) scanning, participants viewed a beverage brand name followed by an extension goods name selected from the beverage or household appliance categories. They responded acceptability to given brand extension. Both acceptability responses and reaction time revealed a noticeable pattern that participants responded to acceptable stimuli more carefully. General linear model (GLM) analyses revealed the involvement of insular activity in brand extension evaluation. Especially, insular activity was lateralized according to valence. Furthermore, its activity could explain behavioral response in parametric modulation model. According to these results, we speculate that insula activity is relevant to emotional processing. Finally, we divided neural activities during brand extension into separated clusters using a hierarchical clustering-based connectivity analysis. Excluding two of them related to sensorimotor functions for behavioral responses, the remaining cluster, including bilateral insula, was likely to reflect brand extension assessment. Hence, we speculate that consumers’ brand extension evaluation may involve emotional processes, shown as insular activity.
Highlights
The present study aims to investigate functional involvement of brain areas in consumers’ evaluation of brand extension that refers to the use of well-established brand for launching new offerings
We employed a goods-to-goods brand extension scenario in our experiment and designed a brand extension evaluation paradigm in which we serially presented a pair of brand (S1) and extended goods (S2) stimuli followed by evaluation responses
The present study explored brain regions over the whole involved in brand extension assessment
Summary
The present study aims to investigate functional involvement of brain areas in consumers’ evaluation of brand extension that refers to the use of well-established brand for launching new offerings. We speculate that consumers’ brand extension evaluation may involve emotional processes, shown as insular activity. With the recent advances in cognitive neuroscience, researchers have attempted to investigate cognitive processes underlying brand extension evaluation through the analysis of consumers’ brain activity. Other studies have reported the effect of culture-dependent consumers’ attitude[7], extension stimulus type[8] or offering type[9,10] on brand extension evaluation These previous studies have investigated brain activity using only scalp EEG. Gardner and Levy[11] defined a “brand” as a complex symbol representing a variety of ideas and attributes, which
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