Logo Effects on Brand Extension Evaluations from the Electrophysiological Perspective.

Qian Shang,Guanxiong Pei,Shenyi Dai,Xiaoyi Wang

doi:10.3389/fnins.2017.00113

Qian Shang, Guanxiong Pei + Show 2 more

Open Access

https://doi.org/10.3389/fnins.2017.00113

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Abstract

Brand extension typically has two strategies: brand name extension (BN) and brand logo extension (BL). The current study explored which strategy (BN or BL) better enhanced the success of dissimilar brand extension and product promotion in enterprises. Event-related potentials (ERPs) were used to investigate electrophysiological processes when subjects evaluated their acceptance of the brand extension using a combined picture of S1 and S2. S1 was a famous brand presented by two identity signs (brand name and brand logo). S2 was a picture of an extension product that belonged to a dissimilar product category than S1. The behavior data showed that BL was more acceptable than BN in the dissimilar brand extension. The neurophysiology process was reflected by a less negative N2 component and a larger P300 component in the BL than in the BN. We suggested that N2 reflected a whole conflict between the brand-product combination and the long-term memory and that P300 could be regarded as the reflection of the categorization process in the working memory.

Highlights

Brand extension is the use of an established brand to launch a new product (Aaker, 1990; Völckner and Sattler, 2007), which serves as a critical and widespread product promotion strategy in the enterprise (Hem et al, 2003; Völckner and Sattler, 2007)
Both the behavior and Event-related potentials (ERPs) results demonstrated that the brand logo extension (BL) strategy could improve the perceived fit between parent brands and extension products compared to the brand name extension (BN) strategy, which is the key to the success of brand extension
The current study explored which strategy [brand logo extension (BL) or brand name extension (BN)] better enhanced the success of dissimilar brand extension

Summary

Introduction

Brand extension is the use of an established brand to launch a new product (Aaker, 1990; Völckner and Sattler, 2007), which serves as a critical and widespread product promotion strategy in the enterprise (Hem et al, 2003; Völckner and Sattler, 2007). Aaker and Keller (1990) constructed a theoretical framework (the consumer evaluation model of brand extensions) to research the factors that influenced brand extension success This model showed that the success of brand extension depended on the consumer’s perception of how well the extension products matched the parent brand (Aaker and Keller, 1990). This finding meant that a higher perceived fit was related to a more positive evaluation of the brand extension (MacInnis and Nakamoto, 1990; Boush and Loken, 1991; Bhat and Reddy, 2001). A brand extension study by Ma et al (2008) indicated that a

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