• Work With Us
  • Podcast
  • Why?
  • Team
  • Clicksights
  • CBO Services

Brand Codes Reduce Cognitive Loads

BRAND codes reduce
cognitive loads

Researchers
Stevie Pena, Ph.D.; Michael Barbera, Ph.D

ABSTRACT

Brand codes are unique messages, phrases, or names that are applied to products, services, brands, or user experiences. During a visit to McDonald’s, a customer is likely to have the option to purchase a Happy Meal, and during a visit to Burger King, a customer is likely to have the option to purchase a King Jr. meal. Meanwhile, Arby’s offers a Kid’s Meal. The Happy Meal and King Jr. meal options are likely to be more experiential and memorable; whereas, the Kid’s Meal is likely to appear generic and less memorable. 

The titles of the meals (e.g. Happy Meal) are brand codes that are unique to a brand. Apple Computers offers a Command key on their keyboards; meanwhile, most personal computer hardware manufacturers use a Control key. Hence Apple’s loyal customers are known for quoting, “take command and lose control”. Brand codes could apply to fictitious currency such as loyalty reward points and brand-based currency. Adobe offers Assets; whereas, most Adobe competitors offer credits; additionally, Starbucks applies brand codes to the naming convention of their cup sizes (e.g. Tall, Grande, Venti, and Trenta).

When a customer visits a Starbucks and orders a Grande White Mocha, other Starbucks’ customers within an earshot of the order are more likely to identify with the ordering customer because each share an interest in the brand by acknowledging the application of the brand code. A customer who visits Starbucks and orders a medium beverage is likely to receive the beverage in the size which equates to a medium (Grande). The customer who orders a medium is likely to be identified by others as a person who doesn’t frequent Starbucks’ locations. When a customer visits a Dunkin’ Donuts location and orders a Grande coffee, other Dunkin’ customers within an earshot of the order are likely to believe this customer doesn’t frequent Dunkin’ Donuts locations due to the improper use of brand codes. 

During a recent study of three bands and their generic alternatives, Clicksuasion Labs tested the affect of brand codes. The variables included willingness to recommend via the Net Promoter Score (NPS), frequency of consumer purchases, and emotional reactions via facial expression analysis. The studies included more than 400 participants during April 2021. 

STUDY 1 – MEDIUM AND GRANDE

The first study’s (Study #1) independent variables included medium beverages and grande beverages. When measuring referrals with the NPS (“how likely are you to recommend this product to a friend or colleague?”), an NPS score of 7.8 was reported by the participants for the medium beverage. Furthermore, an NPS score of 8.1 was reported by the participants for the grande beverage (n = 439).

Respondents were grouped as Promoters, Passives, or Detractors. Promoters (score 9 – 10) are likely to be loyal enthusiasts who will continue to consume and refer others. Passives (score 7 – 8) were likely satisfied yet unenthusiastic customers who were vulnerable to competitive offerings. Detractors (score 0 – 6) were likely to be unhappy customers who could damage a brand and impede growth through negative word-of-mouth.

During Study #1, the researchers at Clicksuasion Labs measured the frequency between visits for the brand code (Grande) and the non-brand code (medium). The frequency between visits for the brand-coded beverage (Grande) was 4.6 days (n = 439). The frequency between visits for the non-brand coded beverage (medium) was 9.1 days (n = 439). 

Furthermore, Study #1 measured customer emotional responses through facial expressions. There are five macro facial expressions recognized by facial expression analysis software (anger, sadness, anxiousness, happiness, and excitement). Participants (n = 274) displayed a higher level of happiness and excitement for the Grande beverage as compared to the medium beverage. Moreover, participants displayed a higher level of anger and sadness for the medium beverage as compared to the Grande beverage.

STUDY 2 – KID’S MEAL AND HAPPY MEAL

Study #2 measured the variance between consumer behavior during the purchase of a Kid’s Meal and the brand-coded Happy Meal. When measuring referrals with the NPS (“how likely are you to recommend this product to a friend or colleague?”), an NPS score of 6.9 was reported by the participants for the Kid’s Meal. Furthermore, an NPS score of 8.5 was reported by the participants for the Happy Meal (n = 439).

During Study #2, the researchers at Clicksuasion Labs measured the frequency between visits for the brand code (Happy Meal) and the non-brand code (Kid’s Meal). The frequency between visits for the brand-coded beverage (Happy Meal) was 12.1 days (n = 439). The frequency between visits for the non-brand coded option (Kid’s Meal) was 16.3 days (n = 439). 

Furthermore, Study #2 measured customer emotional responses through facial expression analysis. There are five macro facial expressions recognized by facial expression analysis software (anger, sadness, anxiousness, happiness, and excitement). Participants (n = 274) displayed a higher level of happiness and excitement for the Happy Meal as compared to the Kid’s Meal Moreover, participants displayed a higher level of anxiousness for the Kid’s Meal message as compared to the Happy Meal message.

STUDY 3 – DOLLARS AND CREDITS

Study #3 measured the variance between the use of formal currency, or government-issued tender (dollars), and fictitious currency (credits). Credits is the brand code within Study #3. When measuring referrals with the NPS, an NPS score of 5 was reported by the participants for the message framing which included dollars. Furthermore, an NPS score of 7 was reported by the participants for the brand-coded credits (n = 439).

During Study #3, the researchers at Clicksuasion Labs measured the frequency between visits for the brand code (credits) and the non-brand code (dollars). The frequency between visits for the brand-coded currency (credits) was 34.7 days (n = 439). The frequency between visits for the non-brand coded option (dollars) was 46.2 days (n = 439). Furthermore, Study #3 (n = 274) measured customer emotional responses through facial expression analysis. When the five macro facial expressions were measured (anger, sadness, anxiousness, happiness, and excitement), the researchers found a higher level of anxiousness and anger for the dollars message as compared to the credits message. 

DISCUSSION – PAIN OF PAYING AND LIKABILITY

There is a psychological phenomenon known as the pain of paying. The pain of paying refers to the negative emotions people feel when making a purchase. These phenomena happen because humans are likely to be loss averse: the avoidance of losses whenever possible, and losses are perceived to be more powerful than equal gains. When people make payments, they incur a loss, which is why these transactions could be painful.

The pain of paying has been found to be stronger when paying with cash than with a credit or debit card, hence the results of Study #3 with the dollars and credits comparison. The loss of money is more salient to the brain when handing over physical cash, rather than swiping a piece of plastic or using fictitious currency. The net promoter scores and emotional responses suggest participants experienced the pain of paying and friction between the product and the point-of-sale/purchase. Additionally, the frequency of consumer purchases for all six variables suggests there are barriers to conversion when non-brand coded products are applied. A consumer is more likely to experience less cognitive barriers, such as the pain of paying when the brand, product, or service is likable. 

Likability is a potent tool of influence that suggests similarities like common clothing style, similar backgrounds, similar hobbies, similar lifestyles, body posture, mood, vocabulary, and speaking style could influence decision-making. Humans have a deep-seated need to name and be named, and researchers have long acknowledged that there is great power in naming things. We name to identify, symbolize, refer, describe, simplify, organize, and, most importantly, to tame. When you tame something, you do so to bring it closer. Through the act of taming, we make ties and emotional bonds with people and things, which include products and services.

CONCLUSION

Brand codes likely have a correlation with positive emotions, reduce the number of days between consumer engagement with a brand, and likely contribute to an increase in referrals. Brand codes likely reduce the pain of paying and contribute to a positive, experiential brand engagement. Researchers suggest applying brand codes where applicable to consumer-facing products, services, and messages and employing brand codes sparingly and allow time for codes to obtain relevancy with consumer segments.

READ MORE ARTICLES

Recent Posts

  • Neurodiversity in Marketing
  • My First 30-Days | Karen Reyes
  • The Stadium Experience – Guest Experience Research
  • Five Tips to Prevent Quiet Quitting
  • Embracing Change is Rooted in Optimism

Additional Stuff and Things

  • press
  • request a speaker
  • research and publications
  • careers
  • terms of use
  • master services agreement
  • site map
Copyright © 2022 Clicksuasion Labs

Connect With Us

Clicksuasion Labs

  • 285 Olmsted Blvd. #11
    Pinehurst, NC 28374
  • 800-584-8047
  • info [at] clicksuasion [dot] com
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
LET'S COLLABORATE




    SCHEDULE A SEMINAR FOR YOUR SMALL BUSINESS CENTER

      MASTER SERVICES AGREEMENT

      LAST UPDATED AUGUST 6, 2019

      This Master Services Agreement (“Agreement”) is entered into this day by and between Clicksuasion Labs. (“Clicksuasion”), 293 Olmsted Blvd, Second Floor, Pinehurst, NC 28374, USA, on behalf of itself and its owned and operated affiliates, and (“Client”), in the delivery of consulting and other professional services, collectively the “Parties”   This Agreement shall remain in full force and effect until terminated by either party with 30 days’ written notice.

      1. DEFINITIONS:
      • “Services” means any products and services that are requested by Client, whether electronic, written or verbal to Clicksuasion.
      • “Website” collectively refers to all Internet websites and domains owned by Clicksuasion.
      • “Exploratory”, “Discovery” means all communication, whether electronic, written or verbal with the intent to agree upon a SOW.
      • “Client” means any person or entity who requests Services or engages in Exploratory or Discovery communication with the intent to hire Clicksuasion Services.

       

      1. SCOPE: “Clicksuasion” shall provide consulting, research and other professional services to Client or to Client’s clients.

       

      1. WORK ASSIGNMENTS: The specific services to be provided by Clicksuasion shall be described in one or more Statements of Work (“SOW”) (or “Proposal”) issued pursuant to this Agreement and agreed upon in writing by the Parties prior to the termination of this Agreement, except where mentioned in paragraphs 5 and 16. The SOW shall be incorporated herein by reference and all terms and conditions of this Agreement shall apply to the SOW as if fully set forth therein. The SOW shall include a summary of the work, skills required, fees to be paid, and instructions on reimbursable expenses.  In the event of any conflict between the contents of any SOW and this Agreement, the SOW shall govern.

       

      1. USE OF CLICKSUASION WEBSITES: visit TERMS OF USE: clicksuasion.com/termsofuse

       

      1. INVOICING AND PAYMENT: We will invoice Client at the beginning of any project and when stated in the SOW. Unless otherwise stated, invoiced charges are due net-thirty (30) days from the invoice date. Client is responsible for providing complete and accurate billing and contact information to Clicksuasion and promptly notifying Clicksuasion of any changes to such information, including, without limitation, Client’s obligation to promptly report any Services-related performance issues or problems negatively impacting Client’s satisfaction with the Services so that Clicksuasion may attempt to remedy such. For clarity, if Client fails to notify Clicksuasion of a Services-related issue within five days from incurring it, such issue may not be relied upon as a reason to terminate this Agreement for Cause. In the event that payment is made via a third party agent, Client shall indemnify Clicksuasion and keep Clicksuasion indemnified against any loss, damage, costs and expenses Clicksuasion may suffer or incur as a result of any default by the third party agent in making payment in accordance with the terms of the SOW or as otherwise set forth in this Agreement. Client further authorize Clicksuasion to use a third party to process payments, and consent to the disclosure of your payment information to such third party. Clicksuasion shall invoice Client for fees and direct out-of-pocket expenses incurred as per the SOW. Payment in full is due upon completion of work or if other arrangements have been made between Clicksuasion and Client. Invoices unpaid after 15-days shall incur a late fee of 24 percent per annum until paid in full. Billing shall be on a time and materials basis.  Client’s non-payment of any Invoice shall entitle the Clicksuasion to stop performance under the terms of this Agreement, any Amendments thereto and/or any SOW without recourse by Client. Client is responsible for all fees and damages associated with the collection and legal solutions of late payments. All non-disclosure agreements between Client and Clicksuasion are void upon the first aged invoice 30-days past due. Additionally, the non-disclosure agreement must be re-signed by both parties to be effective beyond the first aged invoice 30-days past due. If any amount owed by Client under this or any other agreement for Clicksuasion services is thirty or more days overdue, Clicksuasion may, without limiting Clicksuasion’s other rights and remedies, accelerate Client’s unpaid fee obligations under such agreements so that all such obligations become immediately due and payable, and suspend Client Services until such amounts are paid in full. Clicksuasion will give Client at least seven days’ prior notice that the Client account is overdue before suspending services to Client.

       

      1. ENGAGEMENT NOTICE: A request for services, whether electronic or verbal, to members of Clicksuasion and the acceptance of the request of services from Clicksuasion will constitute a signed writing. All requested services, without a signed agreement, are billed monthly at $490.00 USD per hour. Client is subject to a $270.00 USD charge upon two consecutive missed meetings, whether electronic, telephonic or in-person, regardless of geographic location. Clients with ten (10) or less full-time W2-structured employees are billed $10,000.00 USD to be held in escrow for discussions related to research. All monies held in escrow will be billed at $490.00 USD during the exploratory process and all remaining funds, if applicable, will be returned to Client upon completion of the SOW or after an agreement is signed between both parties to cancel the SOW, whichever is first.

       

      1. VENDOR NOTICE: No employee of Clicksuasion has the authority to conclude any binding contract without an explicit ink-signed consent by the Chief Behavioral Officer. Therefore, any will to enter into an agreement must be confirmed by the Chief Behavioral Officer.

       

      1. INDEPENDENT CONTRACTOR: The Parties recognize and agree that Clicksuasion is an independent contractor. This Agreement is not to be construed to create an employment relationship between Client and Clicksuasion’s employees or subcontractors. This Agreement does not authorize either party to enter into any commitment or agreement binding on the other party. Clicksuasion shall have sole responsibility for the payment of salary (including withholding of income taxes and social security), worker’s compensation, disability benefits, and all other applicable taxes for its personnel.

       

      1. CONFIDENTIAL INFORMATION: Each Party agrees not to directly or indirectly disclose to third parties any of the other party’s confidential or proprietary information without the written consent of the disclosing party. Neither party shall, during the time the Clicksuasion is rendering services to the Client or any time thereafter, disclose to anyone other than authorized personnel any information of a confidential nature, including but not limited to, information relating to: any materials or intellectual property supplied by one Party to the other Party; either Party’s projects or programs; the technical, commercial or any other affairs or acts of the other Party or any confidential information which either Party has received from a third party and which has been identified as confidential. The restrictions contained in this Agreement are intended to cover confidential information which relates to the Parties’ respective businesses and which has not been otherwise made public but shall not apply to the dissemination which may be required by proper government or judicial inquiry. Likewise, confidential information shall not be deemed to be information which is in the public domain or which at some future point become available in the public domain. All non-disclosure agreements between Client and Clicksuasion are void upon the first aged invoice 30-days past due. Additionally, the non-disclosure agreement must be re-signed by both parties to be effective beyond the first aged invoice 30-days past due.

       

      1. WORK PRODUCT RIGHTS: Clicksuasion shall retain all rights, title, interest and ownership in the work product delivered pursuant to this Agreement, any Amendments thereto and the SOW as well as the Clicksuasion’s proprietary tools and methodologies which shall remain the sole property of Clicksuasion. For work product produced under the terms of this Agreement, upon payment in full of Clicksuasion’s Invoices, Client shall be granted a paid up, non-exclusive, irrevocable, world-wide license for all such work product to reproduce, distribute copies to the public and prepare derivative works by or on behalf of Client. Client agrees to permit Clicksuasion to publish Client data and case studies, without personally identifiable information, and without distribution of confidential information, for the purpose of advancing behavioral science via academic journals and Clicksuasion websites and distribution channels.

       

      1. TAXES: Client shall be responsible for all federal, state, and local sales, use, privilege, or excise taxes assessed on the charges to Client’s end users in relation to services provided hereunder (if Client is a tax-exempt organization and therefore there may be no taxes). Clicksuasion shall be responsible for all federal, state, and local sales, use, privilege, or excise taxes assessed on Clicksuasion’s income for these services.

       

      1. CLIENT LIST: Client agrees that Clicksuasion may include Client in its published client list and may display Client’s logo and trademark in its marketing materials and public relations; provided such use conforms to Client’s logo and trademark standards as such standards are provided to Clicksuasion.

       

      1. NON-SOLICITATION: During the term of the applicable SOW and for one year thereafter, neither Party shall solicit, entice, offer employment, retain or hire the other Party’s employees or contractors, without the written agreement of the other Party; nor shall Clicksuasion solicit or enter into a direct contract with Client’s client without the written agreement of Client.

       

      1. WARRANTIES: Clicksuasion warrants that the Services to be provided under this Agreement shall be performed in a professional manner conforming to generally accepted industry standards and practices. Client agrees that Clicksuasion sole and exclusive obligation with respect to the Services covered by this limited warranty shall be, at Clicksuasion sole discretion, to correct the nonconformity or to refund the Services Fees paid for the affected Services.

       

      1. TERM OF AGREEMENT: This Agreement commences on the date Client executes the SOW or requests service, whichever is first, or Client access any Clicksuasion Services and this Agreement continues until all services granted in accordance with this Agreement have expired or been terminated.

       

      1. TERMINATION: This Agreement may be terminated or amended at any time only upon written agreement by both parties with 30-days written notice; however, all payments made to Clicksuasion and the rights and obligations which by their nature are intended to survive such expiration or earlier termination shall survive, including without limitation warranty, limitation of liability, and confidentiality. Client may request that Clicksuasion reassign any of its personnel assigned to a SOW upon Clicksuasion’s receipt of Client’s written notice.

       

      1. LIABILITY FOR LOSS: Neither Party shall be responsible for any consequential, indirect, punitive, incidental, or special damages arising under any theory of recovery. The maximum liability of either Party is limited to fees paid by or payable to Clicksuasion for Clicksuasion’s services. Client acknowledges that Clicksuasion shall not be responsible for damages or delays of any kind or type caused by labor strikes, fires, wars, acts of God, terrorist activities, the inability to obtain supplies or materials or any other causes or forces beyond the control of the Clicksuasion. Client acknowledges that such events may delay the start, progress and/or the completion of the work.  Moreover, Client acknowledges and agrees the Clicksuasion shall have no further liability upon Client’s receipt of Services.  Client also acknowledges and agrees that any changes made to the website by Client’s personnel and/or by third parties which require the Company to do additional work after delivery of Services shall be billed by Clicksuasion to the Client on a time and materials basis.

       

      1. WAIVER: No delay or failure by either Party to exercise any right or remedy will operate as a waiver thereof.

       

      1. SEVERABILITY: If any part of this Agreement shall be held invalid or unlawful for any reason, the same shall be deemed severed from the remainder thereof and it shall in no way affect or impair the validity of the Agreement, any Amendments thereto and/or the SOW.

       

      1. ASSIGNMENT: This Agreement may not be assigned or transferred by either party without written agreement of both Parties, which assignment shall not be unreasonably withheld, qualified or delayed.

       

      1. GOVERNING LAW: This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina without reference to any principles of choice or conflicts of laws. Any action instituted by either party arising out of this Agreement, the SOW or the Proposal shall be litigated exclusively in Moore County, North Carolina.  The Parties expressly consent to the exclusive personal jurisdiction and venue of Moore County, North Carolina.

       

      1. COSTS OF ENFORCEMENT: If a suit, action, arbitration, or other proceeding of any nature whatsoever is instituted in connection with any controversy arising out of this Agreement, or to interpret or enforce any rights under this Agreement or the North Carolina Limited Liability Company Act, Clicksuasion may recover attorney’s fees and costs.

       

      1. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement and supersedes all prior understandings between the Parties. Any change to this Agreement shall be in the form of a written Amendment signed by both Parties.  In the event of a conflict between this Agreement and the signed Amendment, the Amendment shall control.

       

      1. JOINT DRAFTING OF AGREEMENT: The Parties expressly agree that this Agreement was jointly drafted and that both Parties have had the opportunity to negotiate terms and to review the terms prior to the execution of this Agreement. This Agreement shall be construed neither against nor in favor of either Party but shall be construed in a neutral manner.

      ROSES ARE RED
      VIOLETS ARE BLUE
      WE’D NEVER OPT OUT
      OF BEING WITH YOU
      CHAT SOON
      GET RESEARCH
      Glasses-3-icon
      READ
      Microphone-icon
      LISTEN
      watch
      WATCH

      YOUR FIRST STEP TO A PHENOMENAL CUSTOMER EXPERIENCE

        LETS SAVE YOUR VOTE