Alpha Consumer

Do Company Logos Matter to Consumers?

By Kimberly Palmer

Posted: September 14, 2009

It might seem like an inconsequential issue, but retailers spend a lot of time (and money) designing their logos in a way that will appeal to consumers. They try to avoid fiascos like the one faced by Tropicana earlier this year when it released new images on orange juice boxes. Consumers apparently hated them; sales dropped and Tropicana reverted to the previous packaging almost immediately.

New research from Rice University's Jesse H. Jones Graduate School of Business suggests companies should tread more carefully before making any big design shifts, lest they turn off their loyal customers. After examining reactions to New Balance and Adidas logo changes, researchers found that "strongly committed consumers" are more likely to dislike modifications. Less committed consumers, on the other hand, are more likely to have a positive reaction.

That difference between loyal and casual customers might explain why Apple faced such an uproar over when it adopted a silver apple symbol in place of its previous red one back in 2003. Walmart, on the other hand, changed its logo without any protests last year. The researchers suggest that while Apple attracts avid fans, Walmart shoppers are more diverse, and perhaps less committed to the brand itself than the store's low prices.

Have any of your favorite brands changed their logos on you? Do you think logos influence your buying habits?

Yes, Logos do their job

As a logo and package designer, when I first saw Tropicana's new package, I cringed. Tropicana is market leader and the other brands have been increasingly getting too similar to their appearance. It is good marketing to map out visual differences to let consumers quickly find your product.

Unfortunately I feel their new design looked too retro (read 60s -70s dated) and frankly, not as appetizing. It was a good decision to listen and return to the previous design until their next update. Of course they must have tested the new designs in focus groups and heard positive feedback. But that is a few dozen people, not the millions who love their products. Hey, it's not easy being #1!

On the other hand, the old Walmart logo was so hideous, why would anyone "protest"? I don't love their new one as compared to more stylish Target's, but at least it doesn't hurt your eyes!

Steve of CT @ Sep 17, 2009 09:03:12 AM

good point

That's a good point. Easily-recognizable logos help us find what we're looking for quickly.

Kimberly Palmer of DC @ Sep 15, 2009 09:59:32 AM

tropicana

I remember being displeased with the new tropicana, if only because I didn't know it was tropicana and took me longer to find the vitamin C fortified type. That logo is the only one I remember thinking, "ugh why did they do that?."

If logos are an influence on my buying habits it is because if I can't find what I'm looking for (or think I'm looking for) then I will either buy something else or not buy anything at all

veronica of NH @ Sep 14, 2009 13:50:25 PM

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Alpha Consumer

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.


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