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

Neural correlates of the non-optimal price: an MEG/EEG study

Introduction

Setting the right price is crucial for effectively positioning products in the market. Conversely, setting a "non-optimal price"-one that is perceived as much lower or higher than the product's true market value-can negatively influence consumer decisions and business results.

Methods

We conducted two electroencephalography (EEG) studies and one magnetoencephalography (MEG) study to investigate brain mechanisms underlying the perception of prices during a price judgment task. In each trial, participants were exposed to a mobile phone image (iPhone, Nokia, or Xiaomi) followed by a price, and instructed to judge whether the price was high or low based on a target word ("cheap" or "expensive").

Results

In both EEG experiments, we found a strong N400-like response to the incongruent target words following prices that substantially differed from the real market value of the mobile phone. The MEG experiment extended these findings by localizing the brain source of the price-related, M400-like response, the magnetic counterpart to the N400 component, in the ventromedial prefrontal cortex (vmPFC) and anterior cingulate cortex (ACC) implicated in value-based and reward-based learning, respectively. Our results demonstrate that both the brain sources and the timing of the price-related M400 response differed from those of the standard M400 evoked by semantically incongruent words.

Discussion

Overall, our results suggest that the N400-like response can serve as a neural marker of price-product incongruity, with potential applications in consumer research.

Using Event-Related Potentials to Evidence the Visual and Semantic Impact: A Pilot Study with N400 Effect and Food Packaging

Packaging design is pivotal in motivating consumer decisions, as a key communication tool from creation to purchase. Currently, the interpretation and evaluation of packaging's impact are shifting toward non-traditional methods. This pilot study evaluated the packaging perception of York Ham and Turkey Breast products. The event-related potential (ERP) technique, the methodology priming words (positive and negative), and target images (original and modified packaging) were applied. A total of 23 participants were sampled using a 32-channels scalp elastic electrode cap and viewed 200 trials of word-image matching. Participants responded whether the images and adjectives matched or not, using the two groups of images. The results demonstrate an N400 effect in the parietal area. This region was observed to show evidence of cognitive processing related to congruency or incongruency, by contrasting the priming and target of this study. The evaluation positioned the York Ham packaging as the best rated. The findings show a relevant contribution to ERPs and research related to the food packaging perception.

The N270 as an index of consumer commodity color preference in the S1-S2 paradigm

Introduction

Affective decision-making is a prominent topic in consumer psychology research, with its core assumption being that consumers tend to purchase brands and commodities they like. However, the reasons behind why we develop emotional responses of liking or disliking toward certain commodities, as well as what the underlying neural mechanisms are, remain largely unknown.

Methods

This study utilized the S1-S2 paradigm in an experiment wherein S1 presented 12 types of commodities and S2 displayed 48 distinct colored squares. Participants were instructed to assess whether they "Like" or "Dislike" the commodity in S1, which was colored with the S2 color. Electroencephalogram (EEG) recordings were obtained during the reaction process and subsequently analyzed to examine the components of S2-induced event-related potentials (ERPs).

Results

The analysis revealed that S2 elicited a significant N270 in the prefrontal scalp area under both the "Like" and "Dislike" conditions. Interestingly, the amplitude of the N270 was significantly higher during the "Dislike" condition compared to the "Like" condition.

Discussion

The N270 component was shown to reflect the conflict in physical attributes between S1 and S2, as well as the conflict between commodity and color. This highlights the potential utility of this component as an objective EEG indicator of consumer commodity color preferences in future marketing research.

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.

Product Factors Affecting Milk Choices among Chinese Older Adults

In China, milk is promoted both as an optimal food and gift for older adults. To understand the product factors affecting older Chinese adult milk choices, choice simulations and surveys were conducted in Beijing, Shanghai, Guangzhou, Chengdu, and Shenyang, China. Participants (n = 1000, aged 45-55 years old and 65-75 years old) were asked to choose one milk product out of eight alternatives for self-consumption and gifting, respectively, and to indicate product factors under their considerations. Results showed that, for self-consumption, the top four most popular milk products (two with domestic brands and two with international brands) were chosen by 84.9% of the participants. Females and younger participants were more open to international brands than their counterparts. Popular milk products differed across cities, potentially due to brand familiarity. Brand (85.9%), on-the-pack, nutrition-related well-being messaging (72.9%), price (63.1%), shelf-life (63.0%), and production date (57.6%) were the most frequently reported product factors considered when choosing milk. More males considered price than females (66.9% vs. 60.0%, p = 0.02). Female and older participants showed greater concern for certain detailed product factors, such as production date and shelf-life, than their counterparts. Variation across cities was limited, with participants in Chengdu and Shenyang showing less concern for certain product factors such as on-the-pack, certificate-related well-being messaging. When milk products were chosen as a gift, although overall milk choice ranking remained similar, package style received increased attention (32.0% vs. 40.8%, p < 0.01), whilst all other product factors, especially price (63.1% vs. 49.5%, p < 0.01), were considered by significantly fewer participants. These findings provide valuable marketing insights, helping to understand consumer preferences and considerations in the process of milk purchase decision-making.

"Guess You Like It" - How Personalized Recommendation Timing and Product Type Influence Consumers' Acceptance: An ERP Study

Personalized recommendation has been increasingly used in online shopping environment, and improving the effectiveness of personalized recommendation is an important issue. On the basis of two-stage decision theory and preference inconsistency theory, our study adopted the neuroscientific methodology of event-related potential to investigate the decision-making process and psychological mechanism of consumers for personalized recommendation under different recommendation timings (browsing and decision stages) and recommended product types (similar and related). Behavioral results showed that consumers' acceptance of similar product recommendations was higher than that of related product recommendations during the browsing stage, whereas no difference was observed in consumers' acceptance of the two product types during the decision stage. More importantly, neurophysiology results provided underlying psychological mechanism for exploring consumers' decision-making process for personalized recommendations. Consumers' psychological mechanism of the personalized recommendations might be divided into two processes, the early automatic cognitive process indicated by the N2 component, and the late advanced cognitive process indicated by the P3 component. We suggested that N2 reflects the perceptual mismatch between the recommended products and the target products, and P3 reflects the attention capture during categorization evaluation of the recommended product and the target product. These findings have important theoretical and practical significance for the deeper understanding of consumers' decision-making process and psychological mechanism in personalized recommendation, as well as improving the effectiveness of personalized recommendation.

A Bibliometric Analysis of Consumer Neuroscience towards Sustainable Consumption

Consumer neuroscience is a new paradigm for studying consumer behavior, focusing on neuroscientific tools to explore the underlying neural processes and behavioral implications of consumption. Based on the bibliometric analysis tools, this paper provides a review of progress in research on consumer neuroscience during 2000–2021. In this paper, we identify research hotspots and frontiers in the field through a statistical analysis of bibliometric indicators, including the number of publications, countries, institutions, and keywords. Aiming at facilitating carbon neutrality via sustainable consumption, this paper discusses the prospects of applying neuroscience to sustainable consumption. The results show 364 publications in the field during 2000–2021, showing a rapid upward trend, indicating that consumer neuroscience research is gaining ground. The majority of these consumer neuroscience studies chose to use electroencephalogram tools, accounting for 63.8% of the total publications; the cutting-edge research mainly involved event-related potential (ERP) studies of various marketing stimuli interventions, functional magnetic resonance imaging (fMRI)-based studies of consumer decision-making and emotion-specific brain regions, and machine-learning-based studies of consumer decision-making optimization models.

Pleasure of paying when using mobile payment: Evidence from EEG studies

Mobile payment has emerged as a popular payment method in many countries. While much research has focused on the antecedents of mobile payment adoption, limited research has investigated the consequences of mobile payment usage relating to how it would influence consumer behaviors (e.g., purchase intention or willingness to pay). Here, we propose that mobile payment not just reduces the “pain of paying,” a traditional view explaining why cashless payment stimulates spending, but it also evokes the “pleasure of paying,” raising from the enhanced processing fluency in completing transactions. We tested this new conceptualization of “pleasure of paying” using EEG, complementing other behavioral measures. In two studies, we found that mobile payment effectively enhanced purchase likelihood (study 1, N = 66) and such an enhancement is generalizable to both hedonic and utilitarian products (study 2, N = 29). By employing EEG measures, we provided the first neural evidence of “pleasure of paying” in addition to the signal of “pain of paying.” Critically, we demonstrated that the “pleasure of paying” is a distinctive psychological mechanism that is induced by mobile payment usage and that the “pleasure of paying” joins the “pain of paying” to mediate the increased purchase intention. We discuss the contributions and implications of these results to the ongoing evolution of cashless payment societies.

How does the use of simultaneous contrast illusion on product-background color combination nudge consumer behavior? A behavioral and event-related potential study

Color, as one of the most critical visual factors influencing consumer decisions, has been widely used in e-commerce marketing. However, the effects of product-background saturation combination on consumers’ willingness to purchase products with different heaviness attributes (e.g., heaviness-positive products or heaviness-negative products) have not been conclusively determined. The current study demonstrated the effects of product-background saturation combination on product heaviness perception and its downstream consequences. Based on behavioral method, study 1 showed that a patch of color placed in a pale background (the saturation of the background is lower than the saturation of the color patch) was perceived as visually heavier than that in a colorful background (the saturation of the background is higher than the saturation of the color patch). Study 2 applied event-related potentials (ERPs) method to explore the underlying neural mechanisms of how the interactions between the presentation modes and the product types affect consumer decisions. Behaviorally, compared to the colorful background, the pale background would lead to a higher purchase rate for the heaviness-positive products, whereas the opposite results were found for the heaviness-negative products. Furthermore, for both the heaviness-positive and heaviness-negative products, a shorter reaction time would be observed in the pale background condition than in the colorful background condition. Neurophysiologically, the pale background would result in smaller N2 component and larger P3 component compared to the colorful background for the heaviness-positive products, while the reverse held for the heaviness-negative products. Smaller N2 component implies decreased perceptual conflicts and larger P3 component implies increased decision confidence, suggesting that e-retailers should present heaviness-positive products with pale backgrounds and heaviness-negative products with colorful backgrounds.

Analyzing Intention to Purchase Brand Extension via Brand Attribute Associations: The Mediating and Moderating Role of Emotional Consumer-Brand Relationship and Brand Commitment

The aim of this study is to investigate the drivers of brand extension attributes and its impact on intention to purchase brand extensions mediated by emotional consumer-brand relationship (ECBR). Data was collected from Chinese university students with the help of questionnaire. Structure equation modeling was applied with the help of AMOS to analyze collected data. Results depict that brand attribute association has significant impact on intention to purchase luxury brands extension. Results further explain that emotional consumer-brand relationship mediates the relationship between brand attribute associations and purchase intention of brand extensions. Furthermore, results indicate that brand commitment moderates the relationship between brand attribute associations, emotional consumer-brand relationship and intention to purchase brand extensions. This study provides an intensive knowledge of the association that exists between the intent to buy luxury brands’ extension and ECBR. This study focuses on the heart versus mind distinction, which is integral to the research on the relationship between consumers and brands. This study provides useful insights to brand managers to use strategies that enhance the bond between emotional and cognitive factors customers associate with a particular brand. Luxury brand managers ought to balance emotionality and rationality to create and capitalize on unique associations with customers.

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.

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.