Examining the influence of corporate logo on corporate image and corporate reputation: A study of consumers’ perception in the context of a financial setting in the United Kingdom

Abstract

This research is primarily concerned with extending the current knowledge of the corporate logo by developing a comprehensive conceptual model of its influence on corporate image and corporate reputation within the discipline of marketing. By examining the conceptual model, this research challenges the claim that a corporate logo, as a company’s ‘signature’, communicates corporate identity (Bromley, 2001; Van Riel et al., 2001) and enables the company to build an image of the company in the consumer’s mind (Henderson and Cote, 1998). Despite the significant and positive view of corporate logos as a communication tool, little systematic research has examined the effect of the components of logos on consumer evaluations of corporate logos (Henderson and Cote, 1998; Pittard et al., 2007; Van der Lans et al., 2009). Furthermore, too little study has been made of the relationship between the corporate logo, its dimensions, antecedents and consequences (Van Riel et al., 2001). This thesis adopts a mixed-method research design – a predominantly quantitative approach, which is supported by insights from an exploratory phase which encompasses in-depth interviews and focus group discussions. The research’s conceptual model was developed on the basis of qualitative study and the existing literature. In the second phase, this conceptual model was used to examine consumers’ perceptions of the influence of the corporate logo on corporate image and corporate reputation in the context of a financial setting in the UK. A sample of 332 respondents allowed multivariate analysis of the data to be undertaken. It used exploratory factor analysis (EFA), Cronbach-alpha and confirmatory factor analysis (CFA) to ensure that the scales developed and adapted were robust in terms of validity and reliability. Structural equation modelling (SEM) allowed the hypotheses between constructs to be examined. The model confirmed a good fit to the data, good convergent, discriminant and nomological validity and stable reliability. Based on the statistical results, qualitative study (in-depth interviews and focus groups and the related literature, the current research found that, apart from colour, all the antecedent factors (corporate name, design and typeface) impact favourably on the corporate logo. Furthermore, the relationship between the corporate logo and the consequences were evaluated; the results of the hypotheses testing demonstrate that that the corporate logo has greater impact on corporate image, attitude towards advertising, recognisability and familiarity. In addition, the relationship between corporate image and corporate reputation was confirmed. However, an unexpected outcome was that the relationship between attitudes towards advertising, recognisability and familiarity and corporate image were not significant. Overall, this study presents the corporate logo as a complex phenomenon. This thesis is the first systematic research to have conceptualised and operationalised the concept of the corporate logo, its antecedents and its consequences. This examination is expected to be of value in advancing current knowledge by offering a threefold theoretical contribution to the literature as theory extension, the level of conceptualisation and measurement and theory testing and generalisation. In terms of methodology, this research used a multi-disciplinary approach to the corporate logo concept since a major contribution of this research aimed to provide a holistic perspective on the domains of marketing, corporate identity, corporate visual identity and the literature on corporate logos. Furthermore, it is hoped that this investigation will make a considerable managerial contribution to the understanding of decision-makers and graphic designers about the whole relationship between a favourable corporate logo, its antecedents and its main consequences. A clear understanding of the dimensions of the relevant concepts can help managers and designers to devise corporate logos which are more likely to advance a favourable corporate image and corporate reputation. This study seeks to develop an understanding of the construct of the corporate logo and some of its antecedents and outcomes, although the findings are not without some limitations in the methods of sampling/analysis and measurement. Additional guidelines are presented in the hope of stimulating further investigations to incorporate the novel research directions in the study of the corporate logo and its antecedents and consequences.