Misspelled Logotypes: The Hidden Threat to Brand Identity

Abstract

Abstract Brand names are valuable company assets often accompanied by a unique graphical composition (i.e., as logotypes). Recent research has demonstrated that this uniqueness makes brand names and logotypes susceptible to counterfeiting through misspelling by transposition in tasks that require participants to identify correct spellings. However, our understanding of how brand names are incidentally processed when presented as logotypes is incomplete. To address this gap in knowledge, we conducted a virtual reality experiment to explore the transposed-letter confusability effect on brand name recognition. Participants were immersed in a virtual reality setting and incidentally exposed to logotypes that had correctly spelled brand names or included letter transpositions. Offline analyses revealed that participants were more accurate at recognizing brand names that had been presented with correct spellings than those that had been misspelled. Furthermore, participants exhibited false memory for misspelled logotypes, recalling them as if they had been spelled correctly. Thus, the present virtual reality experiment provides compelling evidence of the vulnerability of popular logotypes to counterfeiting via the misspelling of brand names.