The impacts of logo dynamism and product types on brand market performance

This study investigates the interactive effects of brand logo dynamism and product types—specifically, hedonic and utilitarian—on market performance. Mixed methods are employed, including a pilot study that analyzes the association between logo dynamism and product types from the most valuable brands on Forbes' list, an event study of abnormal stock returns caused by logo-dynamic changes in the Hong Kong stock market, and two experiments. The results reveal that hedonic products with high-dynamic logos and utilitarian products with low-dynamic logos exhibit better market performance. Quality inference, which is based on information processing and inference theory, mediates this effect. These results provide a better understanding of the role of quality inference in logo design effectiveness, emphasizing the importance of designing logos that appeal to customers' needs and expectations.