Branding strategy
influences business performance significantly. This paper investigates how logo
changes affect the sales and stock price.
Previous
research has focused on the importance of logo design. However, none have
analyzed empirical data on actual companies that can be utilized to further
interpret the real-world implications of existing restaurant brands. A
quantitative, statistical analysis employing an ANOVA, Mann-Kendall, and a
correlational test was conducted to determine whether a logo change had a
particularly significant change, trend, and pattern on a restaurant brand’s
stock price and revenue sales. Furthermore, company logos were categorized
between logotypes (text) and combination marks (symbolism and text) to
determine whether different types of logos have alternative effects. Results
showed that a logo redesign didn’t have a significant effect on the stock
price. However, there was a significant change in revenue sales after a logo
change for certain companies after ~1-2 years with logotypes typically having
more success.
