Professional Documents
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Rebranding:
The Case of Logo Changes
Saleh AlShebil
Mark Peterson
AMA 2009
August 8, 2009
Agenda
• Research Study Overview
• Qualitative Research
• Model & Hypotheses
• Research Methodology
• Results & Findings
• Limitations
• Theoretical Contribution
• Managerial Implications
• Future Research
Research Study Overview
• Rebranding Importance
– Many companies, teams, universities, regions &
countries are rebranding
– Tremendous cost involved $!
– Lack of academic research
• Main Research Question: What do
consumers think of rebranding?
– How do consumers process and “cope” with a
brand logo change?
Qualitative Research
• In Depth Interviews
– 12 Interviews: Semi-structured
– 45 mins to 1 hour for each interview
• Perceived degree of logo change
– “Whoa! wow!.. wow!… that’s different…wow!......I probably thought it was
a new shoe brand coming out. …..I would not have thought it was the
same.”
• Curiosity
– “Why did they do it?....Yeah what’s the purpose of spending all that money
to change everything around? I am used to the old logo, so why change
it?”
• Skepticism
– “I don’t believe that they changed their product or anything at all. They
are just trying to make it seem like something new and it’s probably not.”
• Resistance to Change
– “Baskin Robbins to me has been around for 50 years, leave it alone. It’s
fine!”
Model & Hypotheses
Perceptions of Logo Change
Secondary Coping
Resistance Toward
Logo Change
Brand Attitude
After Logo
Change
Perceived Degree of Logo Change Perceived Valence of Logo Change
H4 H5a H5b
H3 H9
Resistance Toward
Logo Change
H12 H10a
+ +
+ H1b
H2 H1a
Skepticism Toward Curiosity Toward Logo Change
Logo Change Deprivation Interest
Curiosity Curiosity
+
H3
Resistance Toward
Logo Change
H1a Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+)
H1b Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+)
H2 Perceived Degree of Logo Change Skepticism Toward Logo Change (+)
H3 Perceived Degree of Logo Change Resistance Toward Logo Change (+)
Skepticism Toward Curiosity Toward Logo Change
Logo Change H6 Deprivation Interest
+ Curiosity Curiosity
H4 + H5a + H5b
-
Resistance Toward
Logo Change
- +
- H7a H7b
H8
Skepticism Toward Curiosity Toward Logo Change
Logo Change Deprivation Interest
Curiosity Curiosity
- H9
Resistance Toward
Logo Change
H7a Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-)
H7b Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+)
H8 Perceived Valence of Logo Change Skepticism Toward Logo Change (-)
H9 Perceived Valence of Logo Change Resistance Toward Logo Change (-)
Skepticism Toward Curiosity Toward Logo Change
Logo Change Deprivation Interest
Curiosity Curiosity
Resistance Toward
Logo Change
-
- H12 - H10a
H10a Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-)
H10b Interest Curiosity Toward Logo Change Brand Attitude After Logo Change (+)
H11 Skepticism Toward Logo Change Brand Attitude After Logo Change (-)
H12 Resistance Toward Logo Change Brand Attitude After Logo Change (-)
Hypotheses Summary
No. Hypotheses
H1a Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+)
H1b Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+)
H5a Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+)
H5b Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-)
H6 Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+)
H7a Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-)
H7b Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+)
H10a Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-)
H10b Interest Curiosity Toward Logo Change Brand Attitude After Logo Change (+)
H11 Skepticism Toward Logo Change Brand Attitude After Logo Change (-)
H12 Resistance Toward Logo Change Brand Attitude After Logo Change (-)
Research Methodology
• Between subject design survey
study:
– 2 brands/2 logo changes
• Pilot Study
– Sample Size: 73
– Manipulation check
– Reliability >0.90
Brand Logo Changes Used
Brand1
Minor Change
Brand1
Major
Change
Brand2
Minor Change
Brand2
Major
Change
Main Study
• Total sample collected: 427
• Final working sample: 406
– 21 removed-incompletes
• Manipulation Check
– 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:
• 23.8
• 18-52
– Sex:
• 52% male
• 48% female
– Ethnicity:
• 45.8% Caucasian/White
– Education:
• 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 > Ф2 - Squared Correlations between Constructs
• Reliability
– > 0.8 and most > 0.9
Construct Reliability & AVE
Code Construct Alpha AVE #Items
PDLC Perceived Degree of Logo Change 0.95 0.86 3
PVLC Perceived Valence of Logo Change 0.97 0.92 3
SKEP Skepticism Toward Logo Change 0.89 0.69 4
NFI 0.97
CFI 0.98
RMR 0.14
GFI 0.90
Measurement Model
0.08 NBATT1
0.02 NBATT2
0.06 NBATT3
0.12 PDLC1
0.94
0.96
PDLC 1.00
0.09 PDLC2
0.89
0.09 CURI3
0.42 0.23
0.81
0.19 CURI5 0.94
0.71 0.16
RESIS 1.00
0.35 CURD2
0.50 0.88
CURD4
0.63 NBATT 1.00
0.35 0.92
RESIS1
0.84
0.23 RESIS2
0.61 RESIS3
0.15 RESIS4
0.29 RESIS5
.11*
Resistance Toward
Logo Change
-.25**
*< 0.05
**< 0.01 Brand Attitude .19**
___ Significant After Logo
----- Not Significant Change
Perceived Degree of Logo Change
.11* .13**
.11**
Skepticism Toward Curiosity Toward Logo Change
Logo Change Deprivation Interest
Curiosity Curiosity
.09*
Resistance
H3 Toward
Logo Change
No. Hypotheses S/N.S Estimate t-value
H1a Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+) Supported 0.11 2.00
H1b Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+) Supported 0.13 2.80
H2 Perceived Degree of Logo Change Skepticism Toward Logo Change (+) Supported 0.11 2.70
H3 Perceived Degree of Logo Change Resistance Toward Logo Change (+) Supported 0.09 2.29
Skepticism Toward Curiosity Toward Logo Change
Logo Change .17** Deprivation Interest
Curiosity Curiosity
.31** .18**
Resistance Toward
Logo Change
H4 Skepticism Toward Logo Change Resistance Toward Logo Change (+) Supported 0.31 5.98
H5a Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Supported 0.18 5.08
H5b Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Not Supported 0.03 0.75
H6 Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Supported 0.17 4.62
Perceived Valence of Logo Change
-.28** .21**
-.53**
Skepticism Toward Curiosity Toward Logo Change
Logo Change Deprivation Interest
Curiosity Curiosity
-.50**
Resistance Toward
Logo Change
No. Hypotheses S/N.S Estimate t-value
H7a Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-) Supported -0.28 -4.50
H7b Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+) Supported 0.21 3.77
H8 Perceived Valence of Logo Change Skepticism Toward Logo Change (-) Supported -0.53 -11.32
H9 Perceived Valence of Logo Change Resistance Toward Logo Change (-) Supported -0.50 -9.46
Skepticism Toward Curiosity Toward Logo Change
Logo Change Deprivation Interest
Curiosity Curiosity
Resistance Toward
Logo Change
H10a Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-) Not Supported 0.09 1.87
H10b Interest Curiosity Toward Logo Change Brand Attitude After Logo Change (+) Supported 0.19 3.96
H11 Skepticism Toward Logo Change Brand Attitude After Logo Change (-) Supported -0.25 -3.86
H12 Resistance Toward Logo Change Brand Attitude After Logo Change (-) Not Supported 0.12 1.85
Hypotheses Summary
No. Hypotheses S/N.S Estimate t-value
H1a Perceived Degree of Logo Change Deprivation Curiosity Toward Logo Change (+) Supported 0.11 2.00
H1b Perceived Degree of Logo Change Interest Curiosity Toward Logo Change (+) Supported 0.13 2.80
H2 Perceived Degree of Logo Change Skepticism Toward Logo Change (+) Supported 0.11 2.70
H3 Perceived Degree of Logo Change Resistance Toward Logo Change (+) Supported 0.09 2.29
H4 Skepticism Toward Logo Change Resistance Toward Logo Change (+) Supported 0.31 5.98
H5a Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Supported 0.18 5.08
H5b Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Not Supported 0.03 0.75
H6 Deprivation Curiosity Toward Logo Change Resistance Toward Logo Change (+) Supported 0.17 4.62
H7a Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (-) Supported -0.28 -4.50
H7b Perceived Valence of Logo Change Deprivation Curiosity Toward Logo Change (+) Supported 0.21 3.77
H8 Perceived Valence of Logo Change Skepticism Toward Logo Change (-) Supported -0.53 -11.32
H9 Perceived Valence of Logo Change Resistance Toward Logo Change (-) Supported -0.50 -9.46
H10a Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-) Not Supported 0.09 1.87
H10b Interest Curiosity Toward Logo Change Brand Attitude After Logo Change (+) Supported 0.19 3.96
H11 Skepticism Toward Logo Change Brand Attitude After Logo Change (-) Supported -0.25 -3.86
H12 Resistance Toward Logo Change Brand Attitude After Logo Change (-) Not Supported 0.12 1.85
Perceived Degree of Logo Change Perceived Valence of Logo Change
Resistance Toward
Logo Change
Brand Attitude
After Logo
Change
Perceived Degree of Logo Change Perceived Valence of Logo Change
.13**
-.53**
-.28** .21**
.11**
.11*
Resistance Toward
Logo Change
*< 0.05
**< 0.01 Brand Attitude
___ Significant After Logo
----- Not Significant Change
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
– 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.
• 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,
– Consumer’s improved brand attitude.
– Vice versa
Limitations
• Brands used
• Degree of Logo Change
– Minor/major- no “middle”
• Scales used
– Created/adapted
Theoretical Contribution
• A “coping” mechanism for a consumer’s
response toward logo changes
– Curiosity (deprivation and interest)
– Skepticism
– Resistance
• Curiosity as 2 different constructs (state)
– Deprivation (-)
– Interest (+)
• Addition to the literature on
– Skepticism
– Resistance to Change
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
• Roles played by Individual factors
– Brand involvement
– Prior brand attitude
– Skepticism toward marketing
– Trait cynicism
– Change-seeking index
• Moderating roles of fit
– Category fit, brand fit & company fit
Future Research
• Does the “coping” model replicate for other types of rebranding-
e.g. name changes?
• Effect of logo changes on perceptions of
– Product changes
– Service changes
– Company changes.
• Design:
– Font change versus a symbol change
• Role that marketing communications
– Reason vs. Not
– Different types of marketing communications:
• factual information
• humor etc.
• Organization perspective getting the employees’ perceptions
• International side of rebranding
– 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 Mean (SD)
1 Baskin Robbins- Minor Change 2.89 (SD= 1.45)
-.48**
.13* -.19* .37**
Resistance Toward
Logo Change
-.17*
*< 0.05
**< 0.01 Brand Attitude .19**
___ Significant After Logo
----- Not Significant Change
Perceived Degree of Logo Change Perceived Valence of Logo Change
.26**
-.59**
-.40**
.15**
.19*
Resistance Toward
Logo Change
-.28**
*< 0.05
**< 0.01 Brand Attitude .24**
___ Significant After Logo
----- Not Significant
----- Not Supported
Change
Brand Analysis
• Baskin Robbins
– 10/16 hypotheses supported
• Payless ShoeSource
– 11/16 hypotheses supported
• Both brands seem to differ on
– Perceived Degree of logo change
• Likely because of higher degree of change perceived for PSS
than BR
• Effect of PVLC as a moderator
• Testing for mediating/moderating roles
• Both Brands seem to agree on
– 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 (-)
• Curiosity toward 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
• Resistance toward logo change
– Correlation/Covariance Matrices seem to show the correct hypothesized
sign
– Perceived valence of logo change may mitigate any resistance effects
H5b Interest Curiosity Toward Logo Change Resistance Toward Logo Change (-) Not Supported 0.03 0.75
H10a Deprivation Curiosity Toward Logo Change Brand Attitude After Logo Change (-) Not Supported 0.09 1.87
H12 Resistance Toward Logo Change Brand Attitude After Logo Change (-) Not Supported 0.12 1.85
Hypotheses Summary
No. Hypotheses S/N.S Estimat t-
e value
H1a The perceived degree of logo change will positively influence the deprivation curiosity toward the logo change. Supported 0.11 2.00
H1b The perceived degree of logo change will positively influence the interest curiosity toward the logo change. Supported 0.13 2.80
H2 The perceived degree of logo change will positively influence the skepticism toward the logo change. Supported 0.11 2.70
H3 The perceived degree of logo change will positively influence the resistance toward the logo change. Supported 0.09 2.29
H4 Skepticism toward a logo change will positively influence the resistance toward the logo change. Supported 0.31 5.98
H5a Deprivation curiosity toward a logo change will positively influence the resistance toward the logo change. Supported 0.18 5.08
H5b Interest curiosity toward a logo change will negatively influence the resistance toward the logo change. Not Supported 0.03 0.75
H6 Deprivation curiosity toward a logo change will positively influence the skepticism toward the logo change. Supported 0.17 4.62
H7a The perceived valence of logo change will negatively influence the deprivation curiosity toward the logo Supported -0.28 -4.50
change.
H7b The perceived valence of logo change will positively influence the interest curiosity toward the logo change. Supported 0.21 3.77
H8 The perceived valence of logo change will negatively influence the skepticism toward the logo change. Supported -0.53 -11.32
H9 The perceived valence of logo change will negatively influence the resistance toward the logo change Supported -0.50 -9.46
H10a Interest curiosity toward a logo change will positively influence the brand attitude after the logo change Not Supported 0.09 1.87
H10b Interest curiosity toward a logo change will positively influence the brand attitude after the logo change Supported 0.19 3.96
H11 Skepticism toward a logo change will negatively influence the brand attitude after the logo change. Supported -0.25 -3.86
H12 Resistance toward a logo change will negatively influence the brand attitude after the logo change. Not Supported 0.12 1.85
Structural Model
SKEP 0.6
0.2 5
1
0.1
2
-0.1
0.25
9 NBATT 0.9
1
-
0.24
0.1
0
CURD 0.9
5