Characteristics of Human Brain Activity during the Evaluation of Service-to-Service Brand Extension

The human brain deals with violating general color or depth knowledge in different time courses

Utilizing the high temporal resolution of event-related potentials (ERPs), we compared the time course of processing incongruent color versus 3D-depth information. Participants were asked to judge whether the food color (color condition) or 3D structure (3D-depth condition) was congruent or incongruent with their previous knowledge and experience. The behavioral results showed that the reaction times in the congruent 3D-depth condition were slower than those in the congruent color condition. The reaction times in the incongruent 3D-depth condition were slower than those in the incongruent color condition. The ERP results showed that incongruent color stimuli induced a larger N270, larger P300, and smaller N400 components in the fronto-central region than the congruent color stimuli. Incongruent 3D-depth stimuli induced a smaller N1 in the occipital region, larger P300 and smaller N400 in the parietal-occipital region than congruent 3D-depth stimuli. The time-frequency analysis found that incongruent color stimuli induced a larger theta band (360-580 ms) activation in the fronto-central region than congruent color stimuli. Incongruent 3D-depth stimuli induced larger alpha and beta bands (240-350 ms) activation in the parietal region than congruent 3D-depth stimuli. Our results suggest that the human brain deals with violating general color or depth knowledge in different time courses. We speculate that the depth perception conflict was dominated by solving the problem with visual processing, whereas the color perception conflict was dominated by solving the problem with semantic violation.

A systematic review on EEG-based neuromarketing: recent trends and analyzing techniques

Neuromarketing is an emerging research field that aims to understand consumers' decision-making processes when choosing which product to buy. This information is highly sought after by businesses looking to improve their marketing strategies by understanding what leaves a positive or negative impression on consumers. It has the potential to revolutionize the marketing industry by enabling companies to offer engaging experiences, create more effective advertisements, avoid the wrong marketing strategies, and ultimately save millions of dollars for businesses. Therefore, good documentation is necessary to capture the current research situation in this vital sector. In this article, we present a systematic review of EEG-based Neuromarketing. We aim to shed light on the research trends, technical scopes, and potential opportunities in this field. We reviewed recent publications from valid databases and divided the popular research topics in Neuromarketing into five clusters to present the current research trend in this field. We also discuss the brain regions that are activated when making purchase decisions and their relevance to Neuromarketing applications. The article provides appropriate illustrations of marketing stimuli that can elicit authentic impressions from consumers' minds, the techniques used to process and analyze recorded brain data, and the current strategies employed to interpret the data. Finally, we offer recommendations to upcoming researchers to help them investigate the possibilities in this area more efficiently in the future.

A systematic review of the prediction of consumer preference using EEG measures and machine-learning in neuromarketing research

Introduction

The present paper discusses the findings of a systematic review of EEG measures in neuromarketing, identifying which EEG measures are the most robust predictor of customer preference in neuromarketing. The review investigated which TF effect (e.g., theta-band power), and ERP component (e.g., N400) was most consistently reflective of self-reported preference. Machine-learning prediction also investigated, along with the use of EEG when combined with physiological measures such as eye-tracking.

Methods

Search terms ‘neuromarketing’ and ‘consumer neuroscience’ identified papers that used EEG measures. Publications were excluded if they were primarily written in a language other than English or were not published as journal articles (e.g., book chapters). 174 papers were included in the present review.

Results

Frontal alpha asymmetry (FAA) was the most reliable TF signal of preference and was able to differentiate positive from negative consumer responses. Similarly, the late positive potential (LPP) was the most reliable ERP component, reflecting conscious emotional evaluation of products and advertising. However, there was limited consistency across papers, with each measure showing mixed results when related to preference and purchase behaviour.

Conclusions and implications

FAA and the LPP were the most consistent markers of emotional responses to marketing stimuli, consumer preference and purchase intention. Predictive accuracy of FAA and the LPP was greatly improved through the use of machine-learning prediction, especially when combined with eye-tracking or facial expression analyses.

Is Distant Extension Always Upset? Neural Evidence of Empathy and Brand Association Affect Distant Extension Evaluation

Distant brand extension as an essential strategy of obtaining benefits was highly focused on the normal marketing practice and academic research. In the current study, we aim to recognize that how individuals with different levels of empathy respond to distant extensions under corporate social responsibility (CSR) and corporate competence (CC) associations to explore the corresponding neural mechanisms using event-related potentials (ERPs). We divided subjects into two groups involving a high empathy (HE) group and a low empathy (LE) group according to an empathy measure questionnaire. The subjects first faced a brand name following the CSR or CC association descriptions, and then, they were asked to evaluate the new product of brand by a five-point scale. Current results revealed that the participants of the HE group were more apt to accept the distant extension products than those of the LE group. Additionally, in the HE group, products from a brand with CSR associations were more acceptable than CC associations. Moreover, a larger N2 amplitude was elicited in the LE group than in the HE group. For the LE group, an augment N2 was found under CSR than CC associations, reflecting that LE consumers might perceive conflict when evaluating distant extensions and allocate more cognitive resources to deal with CSR information. At the later stage, the HE group showed a greater P3 than the LE group. For the HE group, an increased P3 was elicited under CSR than CC associations, suggesting that empathic individuals might show motivational salience and helping willingness toward distant extension products, especially under the CSR scenario. These results provide potential electrophysiological evidence for the positive impact of brand associations on the evaluation of distant brand extension in the case of subdividing different empathic individuals.

A review of research on neuromarketing using content analysis: key approaches and new avenues

There is currently a growing interest in a deeper understanding of consumer behaviour. In this context, the union of different disciplines such as neuroscience and marketing has given birth to new fields of knowledge, e.g. neuromarketing. This study is mainly aimed at carrying out a systematic revision of the literature on neuromarketing from a holistic point of view, analysing its definition and processes, as well as more specific aspects such as its ethics and applications. Based on the results of our review, following a combined methodology with a base dictionary and text mining, our study presents both the current lines of research and the future lines of work.

Neural Bases of Brand Reputation Effect on Extension Evaluation: An ERPs Study

Brand extension, as a marketing strategy, is frequently utilized by enterprises to produce new products. There exist several critical factors determining its success, such as brand reputation and perceived fit. The present study adopts the event-related potentials (ERPs) method to explore the underlying neural mechanism of the joint influence of the two factors on consumers’ evaluation of brand extension. Specifically, consumers were presented with a brand with corporate social responsibility (CSR) or corporate ability (CA) reputation, following attached to an extension product (high fit vs. low fit). And then, they were given a 5-point scale to report their acceptance intention (AI) toward the brand extension. Behavioral data showed a higher AI and a shorter reaction time for high fit in contrast to low fit conditions. For low fit conditions, consumers were more inclined to accept the extension product with a brand with CSR than CA reputation. Neurophysiologically, CSR reputation evoked a larger P2 amplitude and LPP amplitude than CA reputation. Moreover, the low fit conditions elicited a more positive LPP amplitude than the high fit conditions in the context of a brand with a CSR reputation. Yet, for a brand with a CA reputation, the effect of perceived fit was not found. These results may reflect early attention resources engagement and altruistic motivation at the late stage during brand extension evaluation. The findings provided neurological evidence for which of the two types of brand reputation (CSR vs. CA) have a more positive effect on brand extension.

Involvement of bilateral insula in brand extension evaluation: an fMRI study

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.

The effects of brand familiarity and product category in brand extension: An ERP study

In this paper, neural features influenced by brand familiarity and category were investigated in a brand extension experiment by using conventional event-related potentials (ERPs) and time-frequency analysis. Twenty-four participants were required to decide whether to accept the extension of one brand (stimulus 1) to a certain product category (stimulus 2) in a 2 familiarity x 2 category paradigm. Stimulus 1 consisted of household appliance brands that had different degrees of familiarity (high familiarity vs. low familiarity) to a certain participant, and stimulus 2 consisted of two categories of products (high conflict vs. low conflict). Twenty-two sets of valid data were used for data analysis. We found greater N270 amplitudes in the low-familiarity brand condition and in the high-conflict product category condition, which meant that the participants had to devote more cognitive resources when the brand was less familiar and felt more conflict when the brand was extended to the high-conflict product category. According to the time-frequency analysis results, brand familiarity and product category were found to have a significant effect on the amplitude of theta-band power (4-7.5 Hz) at frontal electrodes in the time period of 270-340 ms. This result indicated that the activity of individual nodes of the language processing networks increased when the extension product category was mismatched with respect to the brand name and that the related memory of the brand was activated and the long-term memory was extracted when the participants faced the high-familiarity brand extension. The study provides an insightful view of how brand familiarity and category influence consumers' cognitive processes regarding brand extension.

Group-Level Neural Responses to Service-to-Service Brand Extension

Brand extension is a marketing strategy leveraging well-established brand to promote new offerings provided as goods or service. The previous neurophysiological studies on goods-to-goods brand extension have proposed that categorization and semantic memory processes are involved in brand extension evaluation. However, it is unknown whether these same processes also underlie service-to-service brand extension. The present study, therefore, aims to investigate neural processes in consumers underlying their judgment of service-to-service brand extension. Specifically, we investigated human electroencephalographic responses to extended services that were commonly considered to fit well or badly with parent brand among consumers. For this purpose, we proposed a new stimulus grouping method to find commonly acceptable or unacceptable service extensions. In the experiment, participants reported the acceptability of 56 brand extension pairs, consisting of parent brand name (S1) and extended service name (S2). From individual acceptability responses, we assigned each pair to one of the three fit levels: high- (i.e., highly acceptable), low-, and mid-fit. Next, we selected stimuli that received high/low-fit evaluations from a majority of participants (i.e., >85%) and assigned them to a high/low population-fit group. A comparison of event-related potentials (ERPs) between population-fit groups through a paired t-test showed significant differences in the fronto-central N2 and fronto-parietal P300 amplitudes. We further evaluated inter-subject variability of these ERP components by a decoding analysis that classified N2 and/or P300 amplitudes into a high, or low population-fit class using a support vector machine. Leave-one-subject-out validation revealed classification accuracy of 60.35% with N2 amplitudes, 78.95% with P300, and 73.68% with both, indicating a relatively high inter-subject variability of N2 but low for P300. This validation showed that fronto-parietal P300 reflected neural processes more consistent across subjects in service-to-service brand extension. We further observed that the left frontal P300 amplitude was increased as fit-level increased across stimuli, indicating a semantic retrieval process to evaluate a semantic link between S1 and S2. Parietal P300 showed a higher amplitude in the high population-fit group, reflecting a similarity-based categorization process. In sum, our results suggest that service-to-service brand extension evaluation may share similar neural processes with goods-to-goods brand extension.