Luffarelli et al. (2019) - A Study of 597 Logos Shows Which Kind Is Most Effective (2019a)

Question 1

Key Research Focus:

Answer 1

• Investigates the effectiveness of descriptive logos (logos that indicate the type of product or
  service) compared to non descriptive logos
• Explores how logo design impacts brand perception, consumer behavior, and brand
  performance

Question 2

Descriptive Logo:

Answer 2

• Includes visual or textual elements that clearly indicate the type of product or service
• Examples: Burger King, New York Islanders

Question 3

Nondescriptive Logo:

Answer 3

• Does not convey the type of product or service directly
• Examples: McDonald’s, Minnesota Wild

Question 4

Importance of Logo Design

Answer 4

• Logos serve as ubiquitous communication tools, appearing on products, websites, reports, and
  business cards
• Benefits of well-designed logos:
• Facilitate brand recognition
• Differentiate from competitors
• Influence consumers’ and investors’ perceptions
• Convey the brand’s identity and values

Question 5

Key Findings

Answer 5

Descriptive Logos Are More Effective:
- Why Descriptive Logos Work:
* Easier for consumers to process and understand
* Boost perceptions of brand authenticity
* Positively influence brand evaluation
* Increase willingness to buy from the brand
* Generate higher net sales

Question 6

Quantitative Outcomes

Answer 6

• Study 1: Participants exposed to descriptive logos rated brands as more authentic and
  likable.
• Study 2: Analysis of 423 brands revealed that descriptive logos had a stronger positive
  impact on net sales.
• Study 3: In early-stage startups, descriptive logos increased willingness to buy among 2,630
  participants.

Question 7

Exceptions to the Effectiveness of Descriptive Logos

Answer 7

Familiar Brands:
- For well-known brands, descriptive logos have a smaller impact because consumers are
already familiar with the brand and its offerings.
Negative Associations:
- Brands marketing unpleasant products (e.g., funeral homes, bug repellents) experience
negative effects from descriptive logos, as they evoke undesirable imagery.
Multi-Category Brands:
- Companies with diverse product lines (e.g., Procter & Gamble, Disney) benefit more from
nondescriptive logos to avoid confusion.

Question 8

Practical Implications for Companies
When to Use Descriptive Logos:

Answer 8

• Brands in early stages of development or introducing unfamiliar products.
• Companies aiming to highlight a specific product or service.

Question 9

When to Use Nondescriptive Logos:

Answer 9

• Established brands with high recognition.
• Brands operating across unrelated categories (e.g., Uber).
• Products associated with negative concepts (e.g., palm oil, pest control)

Question 10

Recommendations

Answer 10

• Include at least one textual or visual element that indicates the product/service (e.g., coffee cup
  for a café, book for a bookstore).
• Avoid descriptive logos if the product could evoke negative associations or if the company
  operates in multiple unrelated industries.
• Recognize that a well-designed logo is not a guarantee of success, but underestimating its
  importance can harm brand performance.

Question 11

Key Data Highlights

Answer 11

• 60% of Brands Use Nondescriptive Logos:
• Despite their prevalence, nondescriptive logos are less effective in driving positive brand
  outcomes.
• Higher Net Sales:
• Descriptive logos were found to significantly increase net sales across multiple studies, even
  after controlling for variables like advertising and R&D spending.
• Consumer Preferences:
• Participants consistently rated brands with descriptive logos as more authentic and
  appealing.