The Effect of Tangible Brand Components on the Sales of Digital Experience Brands

Abstract

This thesis conducts research to explore the effects of tangible brand components on the sales of digital experience brands. It argues that while the chosen tangible brand components (COO, logo edge sharpness, difference between meaning in logo and remaining packaging, color contrast and type of vowels used in name) are not relevant to anticipated consumer product satisfaction, they still might affect product perceptions and subsequent sales. This is argued to be a consequence of consumers becoming less rational when not motivated to process all relevant information, thus using simple heuristics such as associations. To study this, the authors used a series of multiple linear regression models. Sales numbers for video games in distinct geographical areas were used as dependent variables, while the independent variables were the tangible brand componens, quantified using coders. The coders’ responses were tested for internal consistency through the use of Cronbach’s Alpha. The results show that COO has a strong effect on sales, also driving the explanatory power of the models. Additionally, it was found that sharp logo edges were associated with higher sales in all geographical areas, while consistent meaning of colors used in logo and remaining packaging was significant in Japan. Finally, the study also investigated interactions between independent variables, finding significant interactions between logo edge sharpness and front-/back vowels, Finally, the authors discuss the results, their implications, limitations and directions of future research.