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The Power of a Good Logo

October 22, 2013 | C. Whan Park, Andreas B. Eisingerich, Gratiana Pol | Marketing

The authors' research found that corporate logos that express a brand's symbolic, functional or sensory benefits, have a significant positive effect on customer commitment to a brand — and thereby a significant impact on company performance in terms of revenues and profits. The research also indicated that separate visual symbols used as logos tend to be more effective than brand names at creating a sense of emotional connection with consumers.

The authors also found that the positive effects of brand logos on customer commitment and company performance are stronger when companies extend their brands with the same logos. By offering additional connection points in daily life, brand extensions with the same logos strengthen customer relationships with both old and new products.

Logos, the authors argue, offer a frequently untapped opportunity for companies to communicate and symbolize a brand's essence to consumers, thereby building closer relationships with them, creating strong positive emotions and facilitating top-of-mind recall.

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