Effects of perceptual and conceptual similarities on consumers' evaluations of copycat brand names

Copycats often choose brand names that mimic perceptual, conceptual, or both elements of leading brand names. Yet little is known about how perceptual and conceptual similarities of a copycat interact to affect consumers' evaluations, especially in logographic language systems (e.g., Chinese). Three laboratory experiments demonstrate that perceptual similarity alone leads to negative evaluations of copycat brand names; this negative effect, however, can be mitigated when conceptual similarity is added. The underlying mechanism for this effect can be traced to consumers' persuasion knowledge. Perceptual (vs. conceptual) similarity activates consumers' persuasion knowledge about the insincere motives of the copycat brand, which in turn shapes their brand evaluations. However, this effect can become less prominent when conceptual similarity is added because it alleviates use of persuasion knowledge, or when a consumer is in a happy mood because it neutralizes persuasion knowledge. These findings shed light on how different types of copycat strategies interact to affect copycat brand name evaluations and offer important implications for marketing practice.