Turner College Marketing Professor Sungwoo Jung Investigates the Impact of Company Logo Redesign in the Restaurant Industry
The American Marketing Association defines "logo" as a name, term, sign, symbol or design intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. Company logos frequently include textual and/or visual design elements that are descriptive of the type of product/service that companies market. Visual cues can grab consumers’ immediate attention and later remind them of a particular firm. Although prior research has focused on the importance of logo design, none has analyzed data from actual companies that can be utilized to better understand the real-world implications of branding strategy. New research by Turner College marketing professor Sungwoo Jung and Sidhant Dash of the University of Georgia fills this void by investigating how logo changes affect sales and stock prices of restaurants. As these researchers explain, restaurant brands feature a variety of logos, such logotypes (i.e., logos that primarily
focus on text) and combination marks (i.e., logos that primarily focuses on symbolism and text), which are the focus of the study. To explore logo changes within these categories of logos, Jung and Dash examine nine restaurant brands that have made logo changes: Papa John's, Sweetgreen, Kura Sushi, El Pollo Loco, Dunkin’,
Noodles & Company, Burger King, Popeyes, and Tim Hortons. For companies with available stock price series, the statistical tests presented in the study, which appears in the current issue of the International Journal of Business & Management Studies, indicate that simplistic logo changes did not significantly alter stock prices. However, some companies' sales revenues did significantly improve one to two years after a logo change.
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