BRAND codes reduce
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.
