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Monday, July 26, 2010

Sporting Loud Designer Logos May Send The Wrong Message

From University of Southern California

This interesting study from USC Marshall School of Business sheds some light on the marketing and branding of various luxury goods, including handbags, high-end automobiles, and men’s shoes. 

The study compared several “loud” or flashy brand logos with more subtle, quiet ones.  The conclusions suggest that the over-the-top, eye-catching logo actually conveys lower value in the product, and more ambition in the consumer than one might assume. 

The study authors categorize consumers into the following subsets based on the comparison of flashy v. understated designer logos:
1. Patrician - wealthy consumers with no desire for flashy branding.
2. Parvenus - wealthy consumers that think their “loud” logo signifies their higher-class status
3. Poseurs - less affluent consumers that tend to get sucked into purchasing knock-off goods with the less-valuable, flashy logos
4. Proletarian - consumers with little or no desire to sport luxury brands to signify their status. 

The take-home lesson for marketers, according to the study authors; Develop a set of special signatures, or subtle cues, to distinguish the brand, resist the urge to popularize its trademark, consider advertising to all consumers, and reassess the “pyramid” approach to luxury. The authors conclude that, “Appealing to the crème de la crème to also lure less-sophisticated consumers doesn’t always work.”

Read the full article here.

Posted by Thom Canalichio on 07/26/10 at 12:42 PM

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