Consumer Perceptions of Rebranding: The Case of Logo Changes
Consumer Perceptions of Rebranding: The Case of Logo Changes
Consumer Perceptions of Rebranding: The Case of Logo Changes
August 8, 2009
Agenda
Research Study Overview Qualitative Research Model & Hypotheses Research Methodology Results & Findings Limitations Theoretical Contribution Managerial Implications Future Research
Qualitative Research
In Depth Interviews
Whoa! wow!.. wow! thats differentwow!......I probably thought it was a new shoe brand coming out. ..I would not have thought it was the same. Why did they do it?....Yeah whats the purpose of spending all that money to change everything around? I am used to the old logo, so why change it? I dont believe that they changed their product or anything at all. They are just trying to make it seem like something new and its probably not.
Skepticism
Resistance to Change
Baskin Robbins to me has been around for 50 years, leave it alone. Its fine!
Curiosity Toward Logo Change Initial Coping Secondary Coping Resistance Toward Logo Change Deprivation Curiosity Interest Curiosity
H1a H6
H7a
H1b
H7b
Curiosity Toward Logo Change Deprivation Curiosity H5a H5b Interest Curiosity
H4
H9 H3 Resistance Toward Logo Change H12 H11 Brand Attitude After Logo Change
H10a
H10b
H1a H1b H2 H3
Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Skepticism Toward Logo Change (+) Perceived Degree of Logo Change Resistance Toward Logo Change (+)
H4 +
H4 H5a H5b H6
Skepticism Toward Logo Change Resistance Toward Logo Change (+) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+)
H7a
Deprivation Curiosity - H9 Resistance Toward Logo Change
+ H7b
Interest Curiosity
H7a H7b H8 H9
Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-) Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Valence of Logo Change Skepticism Toward Logo Change (-) Perceived Valence of Logo Change Resistance Toward Logo Change (-)
H10a + H10b
Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-) Interest Curiosity Toward Logo Change Brand Attitude After Logo Change (+) Skepticism Toward Logo Change Brand Attitude After Logo Change (-) Resistance Toward Logo Change Brand Attitude After Logo Change (-)
Hypotheses Summary
No.
H1a H1b H2 H3 H4 H5a H5b H6 H7a H7b H8
Hypotheses
Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Skepticism Toward Logo Change (+) Perceived Degree of Logo Change Resistance Toward Logo Change (+) Skepticism Toward Logo Change Resistance Toward Logo Change (+) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-) Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Valence of Logo Change Skepticism Toward Logo Change (-)
H9
H10a H10b H11 H12
Research Methodology
Between subject design survey study:
2 brands/2 logo changes
Pilot Study
Sample Size: 73 Manipulation check Reliability >0.90
Main Study
Total sample collected: 427 Final working sample: 406 Manipulation Check
21 removed-incompletes
Balanced sample A one way ANOVA: Minor and Major logo change
Baskin Robbins (F= 127.97, P<0.05) Payless Shoe Source (F= 269.69, P<0.05).
Demographics
Age: Sex:
23.8 18-52
Ethnicity:
Education:
45.8% Caucasian/White
52% had some college
Analysis
Structural Equation Modeling (SEM) 2 Method approach (Anderson & Gerbing, 1988)
Measurement Model Structural Model
LISREL 8.72
Measurement Model
Item purification Convergent validity,
Factor loadings > 0.5 most >0.7 Significant loadings (p<0.01).
Discriminant validity,
AVE > 0.5 AVE > 2 Squared Correlations between Constructs
Reliability
> 0.8 and most > 0.9
PDLC PVLC
SKEP CURI CURD
0.95 0.97
0.89 0.96 0.85
0.86 0.92
0.69 0.87 0.68
3 3
4 4 3
RESIS
0.91
0.98
0.67
0.95
5
3
NFI
CFI RMR GFI
0.97
0.98 0.14 0.90
Measurement Model
0.08 0.02 0.06 0.12 0.09 0.20 0.08 0.05 0.10 0.28 0.07 0.19 0.68 0.19 0.07 0.09 0.19 0.35 0.11 0.50 0.35 0.23 0.61 0.15 0.29 NBATT1 NBATT2 NBATT3 PDLC1 PDLC2 PDLC3 PVLC1 PVLC2 PVLC3 SKEP2 SKEP3 SKEP4 0.09 CURI SKEP5 CURI1 CURI2 CURI3 0.81 CURI5 CURD2 CURD3 CURD4 RESIS1 RESIS2 RESIS3 RESIS4 RESIS5 0.94 0.71 0.90 0.97 0.95 0.90 0.20 0.44 0.60 1.00 0.34 -0.63 0.85 0.96 0.96 0.90 0.99 0.56 0.97 0.96 0.97 0.95 -0.53 0.21 0.94 0.96 0.89 0.33
PDLC
1.00
PVLC
1.00
-0.04
SKEP
-0.06
1.00
0.25 0.03
0.02 -0.21
CURD
1.00
0.02 -0.13
0.42 0.23
RESIS
1.00
0.16
NBATT
1.00
Value
629.38 (P < 0.05) Df=258 0.060
NFI
CFI RMR GFI
0.96
0.97 0.34 0.89
Interest Curiosity
.19**
.13** .11* Curiosity Toward Logo Change Deprivation Curiosity .09* Resistance Toward H3 Logo Change Interest Curiosity
No.
H1a H1b H2 H3
Hypotheses
Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Skepticism Toward Logo Change (+) Perceived Degree of Logo Change Resistance Toward Logo Change (+)
S/N.S
Supported Supported Supported Supported
Estimate
0.11 0.13 0.11 0.09
t-value
2.00 2.80 2.70 2.29
.31**
Hypotheses Skepticism Toward Logo Change Resistance Toward Logo Change (+) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+)
No.
H7a H7b H8 H9
Hypotheses
Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-) Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Valence of Logo Change Skepticism Toward Logo Change (-) Perceived Valence of Logo Change Resistance Toward Logo Change (-)
S/N.S
Supported Supported Supported Supported
Estimate
-0.28 0.21 -0.53 -0.50
t-value
-4.50 3.77 -11.32 -9.46
-.25**
.19**
S/N.S
Not Supported Supported Supported Not Supported
No.
H10a H10b H11 H12
Estimate
0.09 0.19 -0.25 0.12
t-value
1.87 3.96 -3.86 1.85
Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-) Interest Curiosity Toward Logo Change Brand Attitude After Logo Change (+) Skepticism Toward Logo Change Brand Attitude After Logo Change (-) Resistance Toward Logo Change Brand Attitude After Logo Change (-)
Hypotheses Summary
No.
H1a H1b H2 H3 H4 H5a H5b H6 H7a H7b H8
Hypotheses
Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+) Perceived Degree of Logo Change Skepticism Toward Logo Change (+) Perceived Degree of Logo Change Resistance Toward Logo Change (+) Skepticism Toward Logo Change Resistance Toward Logo Change (+) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-) Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+) Perceived Valence of Logo Change Skepticism Toward Logo Change (-)
S/N.S
Supported Supported Supported Supported Supported Supported Not Supported Supported Supported Supported Supported
Estimate 0.11 0.13 0.11 0.09 0.31 0.18 0.03 0.17 -0.28 0.21 -0.53
t-value 2.00 2.80 2.70 2.29 5.98 5.08 0.75 4.62 -4.50 3.77 -11.32
H9
H10a H10b H11 H12
Supported
Not Supported Supported Supported Not Supported
-0.50
0.09 0.19 -0.25 0.12
-9.46
1.87 3.96 -3.86 1.85
.11** .11*
Interest Curiosity
Results Discussion
Effect of the Perceived Degree of logo change: Bigger the logo change
More questions raised whys+whats More skepticism, distrust & doubt More resistance toward logo change
Effect of the Perceived Valence of logo change: More favorable the logo change
Critical Criterion to judge a new logo - perceived valence of the logo change
A logo change done right & favorably viewed - even if it is a drastic change More interested in it, as well as less questioning of it. The lower level of questioning would contribute to less skepticism about it, Consumers improved brand attitude. Vice versa
Less questioning about the necessity of the logo change- yet more interest in it Less skepticism, less distrust and less doubt about it Less resistant and more accepting of it.
Limitations
Brands used Degree of Logo Change
Minor/major- no middle
Scales used
Created/adapted
Theoretical Contribution
A coping mechanism for a consumers response toward logo changes
Curiosity (deprivation and interest) Skepticism Resistance
Managerial Implications
Companies should really think of their consumers and see their side of the picture. Marketing communication to their consumers
Announcing such logo changes (especially drastic logo changes) Rationale and more information
Perceived valence of the logo change more critical criterion to judge a new logo than the degree of logo change.
Less Questioning/More interest Less Skepticism Less Resistance-more acceptance Better brand attitude
Future Research
Post hoc analysis
Moderating Role of Perceived valence of logo change Mediating role of coping Mediating role of curiosity Brand involvement Prior brand attitude Skepticism toward marketing Trait cynicism Change-seeking index
Future Research
Does the coping model replicate for other types of rebrandinge.g. name changes? Effect of logo changes on perceptions of
Product changes Service changes Company changes.
Design:
Effect of culture on consumers views of rebranding/logo changes More or less accepting of change
Thank You!
Questions?
Manipulation Check-Means
Version Type of Change 1 2 3 4 Baskin Robbins- Minor Change Baskin Robbins- Major Change Payless Shoe Source- Minor Change Payless Shoe Source- Major Change Mean (SD) 2.89 (SD= 1.45) 5.09 (SD= 1.31) 3.00 (SD= 1.36) 5.99 (SD= 1.22)
RESIS3
RESIS4 RESIS5
0.63
0.92 0.84
Resistance Toward Logo Change I'm not comfortable with this logo change without a good explanation for it.
Resistance Toward Logo Change I prefer they leave the logo alone rather than change it. Resistance Toward Logo Change If it were up to me, I wouldn't have changed the logo.
Interest Curiosity
.19**
.15** .19*
Interest Curiosity
.24**
Brand Analysis
Baskin Robbins Payless ShoeSource
10/16 hypotheses supported 11/16 hypotheses supported
Likely because of higher degree of change perceived for PSS than BR Effect of PVLC as a moderator Testing for mediating/moderating roles
Perceived Valence of logo change Relationships between curiosity, skepticism, & resistance to change Effect on Brand attitude after logo change
Unsupported Hypotheses
Hypotheses not significant
H5b: Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) H10a: Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-) H12: Resistance Toward Logo Change Brand Attitude After Logo Change (-) Correlation/Covariance Matrices seem to show the correct hypothesized sign Under high perceived degree of logo change
High interest curiosity & high deprivation curiosity Some washing out effect-one prevails over the other on the effect on brand attitude
Correlation/Covariance Matrices seem to show the correct hypothesized sign Perceived valence of logo change may mitigate any resistance effects
Not Supported Not Supported Not Supported
Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-) Resistance Toward Logo Change Brand Attitude After Logo Change (-)
Hypotheses Summary
No.
H1a H1b H2 H3 H4 H5a H5b H6 H7a H7b H8 H9 H10a H10b H11 H12
Hypotheses
The perceived degree of logo change will positively influence the deprivation curiosity toward the logo change. The perceived degree of logo change will positively influence the interest curiosity toward the logo change. The perceived degree of logo change will positively influence the skepticism toward the logo change. The perceived degree of logo change will positively influence the resistance toward the logo change. Skepticism toward a logo change will positively influence the resistance toward the logo change. Deprivation curiosity toward a logo change will positively influence the resistance toward the logo change. Interest curiosity toward a logo change will negatively influence the resistance toward the logo change. Deprivation curiosity toward a logo change will positively influence the skepticism toward the logo change. The perceived valence of logo change will negatively influence the deprivation curiosity toward the logo change. The perceived valence of logo change will positively influence the interest curiosity toward the logo change. The perceived valence of logo change will negatively influence the skepticism toward the logo change. The perceived valence of logo change will negatively influence the resistance toward the logo change Interest curiosity toward a logo change will positively influence the brand attitude after the logo change Interest curiosity toward a logo change will positively influence the brand attitude after the logo change Skepticism toward a logo change will negatively influence the brand attitude after the logo change. Resistance toward a logo change will negatively influence the brand attitude after the logo change.
S/N.S
Supported Supported Supported Supported Supported Supported Not Supported Supported Supported Supported Supported Supported Not Supported Supported Supported Not Supported
Estimate 0.11 0.13 0.11 0.09 0.31 0.18 0.03 0.17 -0.28 0.21 -0.53 -0.50 0.09 0.19 -0.25 0.12
t-value 2.00 2.80 2.70 2.29 5.98 5.08 0.75 4.62 -4.50 3.77 -11.32 -9.46 1.87 3.96 -3.86 1.85
Structural Model
SKEP
0.21 0.65
0.12
1.00
PDLC
0.15
CURI
0.03 0.29
0.92
-0.53
0.09 0.33 0.20
RESIS
0.21 -0.47 1.00
0.46
PVLC
0.12
NBATT
-0.24
0.10
0.91
CURD
0.95
Results Discussion
Perceived degree of logo change Deprivation curiosity toward logo change (+)
Lowensteins (1994) information gap theory Logo change violation of expectations-Incongruity (old and new logo) curiosity-Incongruity theories-people curious about unexpected events or that they cant explain- asking "why" questions New product advertising generated increased curiosity (Olson, Schlinger, and Young, 1982; Olson, Toy and Dover, 1981)
Experience advertising claim Greater skepticism was found for experience advertising claims than for search claims (Ford et al., 1990; Feick and Gierl, 1996) Organizational change can generate skepticism and resistance in employees (Folger and Skarlicki, 1999)
Greater resistance to change for strategic changes (radical) than evolutionary changes (minor) (del Val and Fuentes, 2003) Greater resistance for new product innovation (Ram and Sheth, 1989; Ram, 1985).
Results Discussion
Skepticism Toward Logo Change Resistance Toward Logo Change (+)
Deprivation/Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-/+)
Stanley, Meyer and Topolnytsky (2005) found that skepticism, accounted for a unique variance in the intention to resist change.
Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+)
Trait Interest dimension (Peterson and Seligman, 2004; Kashdan et al., 2004; Collins et al., 2004) Trait Deprivation dimension (Litman and Jimerson, 2004; Litman and Silvia, 2006). Applicable to our state or situational case for logo changes. Prior evidence that logo changes are generally not preferred and disliked (Pimentel and Heckler, 2003; Walsh et al., 2006) especially for extreme/drastic changes. why questions result of an event that is negative and unexpected (Wong and Weiner, 1981)- which a logo change seems to resemble.
Reichers, Wanous and Austin (1997) state that cynicism may simply help people make sense of puzzling events in their environment as when changes are announced with little groundwork explaining why the changes are necessary.
Exposed to a logo change why the logo has changed? begin filling in this knowledge gap with possible skepticism.
Thus such people begin filling in information gaps with the explanation that things must not have gone well and they begin feeding their cynicism about change by creating such information that would help them make sense of their world.
Results Discussion
Perceived Valence of logo change curiosity, skepticism, resistance
Attitude theory (Fishbein, 1967; Fishbein and Ajzen, 1975)
Belief of some object x evaluative strength of that belief will ultimately affect attitude towards that object. E.g. employees who would have more positive views about organizational change would likely have a better attitude towards it Based on our previous discussion on curiosity, skepticism and resistance to change, we would expect that this employee would likely have less skepticism, more curiosity (positive) and be less resistant to the change. Similarly for a logo change
Results Discussion
Interest Curiosity Toward Logo Change Brand Attitude After Logo Change (+)
Menon and Soman (2002) found that curiosity-based processing of advertising resulted in better product evaluation and greater perceived novelty (p. 11).
Skepticism Toward Logo Change Brand Attitude After Logo Change (-)
Mostafa (2006) found that skepticism towards environmental claims was negatively related to consumers intention to buy green products
Obermiller & Spangenberg (1998) found that skepticism toward advertising had a positive correlation with negative attitudes toward advertising,
The higher the skepticism towards advertising the more negative the attitudes toward advertising.
Indirectly we can say that skepticism would be negatively related to brand attitude.