Color Psychology Statistics in Commercial Signage

In this article, we explore the world of color psychology in commercial signage, looking at the impact on consumer behavior. We’ll also focus on the use of LED neon signs and how this type of illuminated signage is used both in-store and in external fit-outs.

Research shows that 90% of a consumer’s initial impression can be attributed to the impact of color . Here are other interesting facts about color psychology in commercial settings:

• Up to 60% of people will refuse a product if they don’t like the color.


• Conversely, over 90% will buy something if they like the color.


• Color is the main factor in brand recognition since up to 80% of people associate brands with their predominant color.

Furthermore, studies show some degree of universal agreement on how colors are interpreted emotionally. For example, the above report reveals that 43% of those interviewed associate black with quality, 29% say purple is linked to bravery, and 26% connect yellow with concepts like fun and happiness.

More importantly, research shows that customers also react to color in physical store settings. For example, a Honda car dealership found that sales conversations held in a blue pod were 35% more profitable than those held in rooms with other colors.

The effect of color psychology isn’t limited to the color of walls or furniture; it can be applied to in-store signage, too, as we’ll see next.

Both glass and LED neon signage are common fixtures in commercial areas worldwide. Its popularity is partly due to how these signs influence passersby with their trademark pop of color. This is one of the reasons why neon signage has been used in marketing for a long time, in some cases becoming an integral part of brand and store design and a great visual merchandising tool.

Glass neon signs have been used for decades to reinforce branding and to create an inviting atmosphere that customers can easily recognize.

These traditional neon signs are only available in a handful of colors, mostly orange, yellow, and red. However, with the arrival of LED neon signage, shop owners have at their disposal a much wider range of colors to incorporate into their store signage.

In fact, LED neon signs offer more control over the RGB scale, making it easy to achieve custom colors that match a business brand, logo, seasonal mood, or advertising campaign. With this technology, it’s also possible to create color-changing neon signs that cycle between multiple colors instead of just one.

Since so many options are available, let’s look at what you can achieve by applying the principles of color psychology to both exterior and in-store neon signs.

Here are some suggestions on how to use color psychology to transform a retail or commercial space and influence customers' moods and purchasing habits.

Warm-colored Signs for Longer In-store Stays

Bright Spotlighting for Promotional Items

Place a bright and cool-toned neon sign over a specific product to make it impossible to miss. This can work as a great supporting strategy for promotional sales or seasonal campaigns where you focus on specific products or product lines.

A Different Turn on Accent Lighting

Another variation that achieves the same effect as above is using bright yellow signs. Accentuating products or areas of the store with strategically placed pops of yellow can guide customers through the store to the exact place where you’re displaying a specific product.

Blue for Trust Building

In color psychology, blue is associated with reliability. It’s also one of the favorite colors worldwide, so there are good chances of getting a positive response when using it in shop signage. Especially if you’re a new business and want to generate trust among those who visit your shop, a strategically placed blue LED neon sign can help achieve that.

Color and Customer Age

Color preferences change depending on the customer’s age group. If your business targets a predominantly young demographic, signage featuring bright reds, oranges, greens, and purples could be more effective. Older customers (70+) have a stronger preference for whites and blues.

Colorful neon signs can also make a statement on the streets. The window or exterior fit out of a store is like a first impression, so keep the following in mind to make this impression count:

Red for Optimal Visibility

A red neon sign is a good choice to stand out in a busy street since red signs appear closer than they are. This means there could be higher chances of increasing foot traffic with an external red neon sign.

Red for Impulse Buying

Another potential use of red neon lighting is to encourage impulse buying due to the color’s association with urgency. This can be an excellent way to create FOMO and drive your sales up or to contribute to the success of a sales campaign, given red’s association with discounts and good value.

Green for a Sustainable Brand Image

Green elements in external signs can attract eco-conscious consumers. A study showed that 28% associate this color with nature, which helps create a sustainable brand image that gets you noticed by passersby. And although green is not as eye-catching as red, pairing it with a black background can make the sign pop.

Pink for Beauty and Personal Care Businesses

Up to 80% of women choose pink as their favorite color, so a shopfront or external pink neon sign pointing to a beauty salon, hair stylist, or nail artist can work well. This could also be a good option for bakeries, dessert shops, and food outlets selling sweet treats.

Yellow for Unmissable Storefronts

Yellow is the ultimate attention-grabber, so use it strategically in external signage. For example, a yellow neon sign on shop windows could help ensure your storefront is unmissable, even from a distance.

Research in color psychology and consumer behavior shows how color can shape experiences and create lasting impressions. As a shop owner, you can use this to your advantage by upgrading to custom-made neon signage, both in-store and outdoors. Get in touch with the Custom Neon team for more details.

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