Position the Logo Like a Handshake

Merchandise in your store which carries a logo or label associated with prestige—such as Lacoste—can command premium prices because shoppers assume they’ll receive greater respect when others observe the logo. However, you might decide to stock items where the logo is not obviously displayed.
     The shoppers who assume they’ll get more respect are correct, to a point. Researchers at Tilburg University found that a man shown wearing a Lacoste or Tommy Hilfiger polo shirt was judged by study participants to be of higher status and wealthier than the same man wearing a no-label shirt, although the label didn’t make a difference on ratings for kindness, trustworthiness, or attractiveness.
     In another study by the same researchers, people were more willing to comply with someone wearing a prestige logo. Mall shoppers walking alone were approached by a woman asking for survey participation. In some cases, the woman wore a green sweater with a Tommy Hilfiger logo, while in the rest of the cases, the woman wore the identical green sweater devoid of logo. Did it make a difference? Well, about 52% of the people in the logo condition agreed to participate. Sans logo, the woman was able to convince only about 14%.
     The luxury logo served like a hearty handshake.
     Yet there are consumers who prefer a secret handshake. Researchers at University of Pennsylvania and Southern Methodist University note how consumers of very high-end products often prefer subtle, not obvious, signals in their purchases. Consider sunglasses. The researcher’s tally found that about 20% of sunglasses selling for under $50 included a brand name or logo easily visible to others. That increased to about 85% when the retail price was between $100 and $300, but for sunglasses selling above the $500 mark, the percentage dropped dramatically. It was only about 30%.
     Consumers who sense themselves coming closer to desired membership in a group, but who are insecure about their membership, tend to purchase products that loudly project the signals of membership. But when the consumer already belongs to an exclusive group or is confidently aspiring to belong, they’ll be looking for more subtle cues—what corresponds to the secret handshake which allows members to recognize each other while not tipping off the outsiders. This was a lesson learned some years back by Lacoste, which discovered that their crocodile logo stopped portraying as much status if it was displayed too prominently.

For your profitability: Sell Well: What Really Moves Your Shoppers

Click below for more: 
Satisfy Desires for Luxury 
Make Your Shoppers Feel Special 
Offer Aspirational Shoppers Subtle Signals