The Brand Scandal Spillover Effect at the Country Level: Evidence From Event-Related Potentials

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.

Consumer Neuroscience: Attentional Preferences for Wine Labeling Reflected in the Posterior Contralateral Negativity

During the decision-making process, consumers notice, inspect, and visually scan different products. External characteristics of a product, such as design, packaging, label, and logo, have been shown to strongly influence how customers perceive, assess, and select a product. Marketers have put a lot of effort into determining the factors that trigger consumers' visual attention toward products, using traditional research methods, self-reports, or observations. The use of neuroscientific tools to study consumer behavior may improve our understanding of how external characteristics influence consumers' visual attention. Consumer neuroscience research shows that preferences for a product may already be reflected in brain activity before customers make a final decision. Using electroencephalography (EEG), we investigated whether the design of different wine labeling influences individual preferences, reflected in the neural activity related to visual attention. More specifically, we examined whether the posterior contralateral negativity (PCN) can be used to assess and predict consumers' preferences for a specific product based on its external characteristics. The PCN is commonly used to estimate attentional selection by focusing on stimulus-side dependent EEG lateralization above parieto-occipital areas. We computed the PCN to assess whether a certain wine label caught participants' visual attention and additionally by comparing the PCN with behavioral data (wine preferences and reaction times) to determine whether early effects of visual attention could predict participants' final preferences for a specific label. Our findings indicate that the PCN provides relevant information on visual attention mechanisms for external characteristics, as the view of the four labels modulated PCN amplitude. We hope this study can help researchers and practitioners in examining the effects of external product characteristics on consumer choice by estimating the changes in the EEG that are related to visual attention.

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.