Novel versus familiar brands: An analysis of neurophysiology, response latency, and choice

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Novel versus familiar brands: An analysis of neurophysiology, response latency, and choice Martin Reimann & Raquel Castaño & Judith Zaichkowsky & Antoine Bechara

Published online: 2 May 2012 # Springer Science+Business Media, LLC 2012

Abstract Two experiments were conducted to analyze neurophysiological activation, response latency, and actual brand choice concerning novel and familiar brands. The results show that (1) the choice of novel brands (compared to the choice of familiar brands) is preceded by increased activation of both the cingulate gyrus and the ventromedial prefrontal cortex, as measured by a functional magnetic resonance imaging (fMRI) study; (2) novel brands are associated with longer choice response latency than familiar brands; and (3) positive mood enhances response latency of choosing novel brands compared to familiar brands. Keywords Branding . Consumer neuroscience . Functional magnetic resonance imaging (fMRI) . Mood induction . Neuromarketing . Response latency

M. Reimann (*) : A. Bechara Department of Psychology, Brain & Creativity Institute, University of Southern California, 3620 McClintock Avenue, Los Angeles, CA 90089-1061, USA e-mail: [email protected] R. Castaño Department of Marketing, EGADE Business School, Tecnológico de Monterrey, Avenida Fundadores y Rufino Tamayo, Garza García, Nuevo Leon, Mexico 66269 J. Zaichkowsky Beedie School of Business, Simon Fraser University, 500 Granville Street, Vancouver, Canada V6C 1W6 A. Bechara Douglas Mental Health University Institute, Clinical Research Division, McGill University, 6875 LaSalle Boulevard, Montreal, Quebec, Canada H4H 1R3 A. Bechara Department of Neurology, UI Hospitals and Clinics, University of Iowa, 200 Hawkins Drive, 2007 RCP, Iowa City, IA 52242, USA

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Mark Lett (2012) 23:745–759

1 Introduction Market researchers recently estimated that, despite extensive brand development efforts, up to 95 % of new brand introductions fail (Nobel 2011; Schneider and Hall 2011). Reaching consumers in today’s competitive market is a difficult task, but insight into the psychological processes underlying the choice of novel versus familiar brands might lead to a better understanding of consumers’ choice and evaluation processes. The present research focuses on understanding prechoice processes in order to help explain how some novel brands stick and others do not (Keller and Lehmann 2006; Keller 2009). Accessing psychological processes is difficult because consumers have typically not yet formed any associations or attitudes for novel stimuli. Thus, existing psychometric measures of brand processing may not work effectively and may even fail to predict a novel brand’s performance (Dillon et al. 2001). Of course, some reasons have been found for novel brands “stickiness” including consumers appreciating novel brands’ intriguing logo design (Henderson et al. 2004), easy-to-process brand names (Yorkston and Menon 2004), or aesthetic packaging (Reimann et al. 2010). These reasons provide some initial explanation for why consumers sometimes