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 memories for misspelled logotypes, recalling them as if they had been spelled correctly. Thus, our findings revealed that the incidental processing of misspelled logotypes (e.g., SASMUNG) affects the accuracy of logotype identity recognition, thereby underscoring the challenges faced by individuals when identifying brand names and the elements that make counterfeits so effective.