Thaindian News

Washington, May 17 (IANS) A corporate logo symbolising the visual power of a brand cuts both ways — good and bad, a study suggests.

These stylized monograms can backfire for firms and have a double-edged effect on consumer perceptions, according to a Boston College researcher.

Consumers may perceive companies with incomplete typeface logos - such as the horizontal baby blue stripes that form the letters IBM - as innovative.

However, they also run the risk of being viewed as untrustworthy, according to a forthcoming report in the Journal of Marketing.

Henrik Hagtvedt, marketing professor in Boston College’s Carroll School of Management, surveyed nearly 500 participants who viewed a series of logos with parts of the characters intentionally missing or blanked out.

“Incompleteness is a device that is often used in paintings and drawings,” explained Hagtvedt, whose background is in fine arts. “It sparks the viewers’ interest. When applied to a logo, the resulting perceptual ambiguity is interesting and causes the firm to be perceived as innovative.”

On the other hand, “incompleteness may be interpreted as unclear communication, which can lead to the perception that the firm is untrustworthy,” Hagtvedt said, according to a Boston statement.

Further, incomplete typeface logos have an unfavourable influence on the overall attitude toward the firm among consumers who are focused on preventing bad outcomes rather than on achieving good ones.

Therefore, although such stylised logos might be a good idea for an entertainment firm, they might backfire for an insurance company.

The findings suggest that firms should avoid incomplete typeface logos if perceptions of trustworthiness are critical, or if their customers are likely to have a prevention focus, said Hagtvedt.