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Evolutionary versus Revolutionary Brand Logo Change: Higher Degrees of Brand Logo Change Hurt Brand Recognition for Highly Brand Conscious Consumers Bo van Grinsven en Enny Das [email protected]

Brand logo redesign

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This presentation shows the effects of degree of brand logo changes on consumer responses, or more specifically on brand recognition. In addition, this presentation also addressed the effects of an important consumer trait -brand consciousness- on brand recognition.

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Page 1: Brand logo redesign

Evolutionary versus Revolutionary Brand Logo Change:

Higher Degrees of Brand Logo Change Hurt Brand Recognition for Highly

Brand Conscious Consumers

Bo van Grinsven en Enny Das

[email protected]

Page 2: Brand logo redesign

• Introduction

• Examples of logo redesigns

• Studies on logo redesigns

• We developed an experimental paradigm to

provide rigid tests of the effects of objectified

degrees of logo changes on consumer responses

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Evolutionary and revolutionary logo redesigns:

- Evolutionary redesigns: without losing or changing brand identity or brand values.

- Revolutionary redesigns: are typically associated with major strategic shifts, like mergers, name-changes, or bankruptcy.

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Evolutionary versus revolutionary changes

Hypotheses 1 & 2

New and unfamiliar elements will demand more attention and more capacity to be processed and stored in the memory system.

H1: An increase in degree of change, decreases brand recognition

A single exposure may be sufficient to store logos that have undergone a slight adjustment, but may not suffice to store substantial logo redesigns.

H2: Increases in exposure induce increases in brand recognition in particular for substantial degrees of logo change.

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Evolutionary versus revolutionary changes

Brand Consciousness

Brand Consciousness: a personality trait that indicates the degree to which a consumer is oriented in buying well-known branded products (Sprotles & Kendall, 1986; Shim & Gehrt, 1996; Liao & Wang, 2009).

Consumers perceive the purchase and consumption of products to be ‘vehicles for self-expression’ (Belk, 1988, and Sirgy, 1985, in: Nan & Heo, 2007, p.67).

Changes in product information, like a brand logo redesign could affect the perceived consumer-brand relationship:

Highly brand conscious consumers are sensitive for this kind of information

H3: Increases of degree of logo change negatively affect brand recognition, in particular for highly brand conscious consumers.

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Evolutionary versus revolutionary changes

• Study 1 - Participants and design

• A preliminary study to test the effects of degree of logo change

• 3 (degree of change: no change, small change, substantial change) between subjects design.

• 121 undergraduates (75% female, Mage = 20.4, SD = .43)

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Evolutionary versus revolutionary changes

• Materials Study 1• Redesigned by graphic designer,

• Based on Müller, Kocher, and Crettaz (2011)

• All FMCG Brands

• Combination of word mark & and brand logo

• Pre-tested materials (N = 20): t(8) = -19.83 , p < .001

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Evolutionary versus revolutionary changes

• Measure• Brand Recognition: Adjusted Lexical Decision

Task (Meyer & Schvaneveldt, 1971).• Because brand recognition is a spontaneous,

unconscious process.

• Recognize whether you see an existing vs non-existing word

• We used pictures instead of words

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Evolutionary versus revolutionary changes

• Results• H1: An increase of degree of logo change decreases brand

recognition: F (2,116) = 4.57, p = .012.• Bonferroni post-hoc: no vs small change, p > .05• no vs substantial change, p = .013, small vs

substantial, p > .05

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• Study 2 - Participants and design• 3 (degree of change: no change, small

change, substantial change) x 2 (Exposure: 1 vs 3 times) between subjects design (brand consciousness as continuous moderator).

• 148 participants (56.9% female, Mage = 25.03, SD = 7.82)

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• Materials Study 2

• Different product categories • FMCG, computer brand, financial sector• National and international brands• Redesigned according Müller, et al. (2011)• Pre-tested (N=51),t(8) = -19.83 , p < .001

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• Measures• Brand Consciousness: six-item, 7-point Likert

scale (Nelson & McLeod, 2005), α = .82 (e.g., brand name products that cost a lot of money are good quality’).

• Brand Recognition: similar to study 1: adjusted Lexical Decision Task (Meyer & Schvaneveldt, 1971).

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Evolutionary versus revolutionary changes

• Results (1)• Interaction effect between degree of change and

exposure: F (2,132) = 3.25, p = .042.• Simple effect analyses: marginally significant effect for

difference in brand recognition between original brand logo (M = 514.67) and substantially changed brand logo (M = 681.23, p = .061), only in 1-exposure condition

• No further effects found.

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Evolutionary versus revolutionary changes

• Results (2)• Interaction effect between degree of change and brand

consciousness, F (1,132) = 3.307, p = .004.

• No median split, thus retaining all observations in the analyses (e.g., Royston, Altman, & Sauerbrei, 2006), following Aiken & West (1991)

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Evolutionary versus revolutionary changes

• Results (3)• Interaction effect between degree of change and brand

consciousness, F (1,132) = 3.307, p = .004.

• Simple effects: Marginally significant: Brand recognition decreased when highly brand conscious consumers were exposed to a substantially changed brand logo (M = 652.66, Se = 52.38) as compared to the original brand logo (M = 472.47, Se = 61.61, p = .082).

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• Findings and discussion• Exposure neutralizes effects of brand logo redesigns

• Effects on brand attitude, brand identity and reputation need further examination!

• Only effects for highly brand conscious consumers: brand recognition decreased when exposed to a substantially changed brand logo

• Tunnel vision?

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Evolutionary versus revolutionary changes

Effects were found for FMCGs, so it is even more interesting to

examine effects for transformational or high involvement

products/brands.

Present research presents a first step in the experimental paradigm. The next step is to examine effects on other consumer responses.

Questions?

[email protected]/08/14