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Color Psychology: How to Choose the Right Color for Your Business

Agostinho Domingues | CSO Kangaroo FilesFebruary 25, 2025
Color psychology influences brand perception and customer decisions. Discover how to choose the right color for your business and enhance the impact of your visual identity.
Psicologia das Cores: Como escolher a cor certa para o seu Negócio

Colors are not just a visual element – they have the power to influence emotions, behaviors, and purchasing decisions. The way consumers perceive a brand can be directly linked to its color palette. In marketing, understanding color psychology allows businesses to convey the right message and create a stronger visual identity.

 

What is Color Psychology?

 

Color psychology analyzes how different shades affect human perception and emotions. In the business world, colors are strategically used to evoke specific feelings and influence consumer decisions. Successful brands use colors to reinforce their identity and create emotional connections with their audience, whether to convey trust, dynamism, or exclusivity.

 

The Meaning of Colors and How to Use Them in Your Business

 

  • Blue – Trust and Professionalism
    Conveys stability, credibility, and security. Widely used by financial, technology, and social media companies.
    Examples: Facebook, LinkedIn, PayPal.

  • Red – Energy and Urgency
    Stimulates action and triggers strong emotions. Frequently used for promotions and brands aiming to create excitement.
    Examples: Coca-Cola, Netflix, YouTube.

  • Green – Health and Sustainability
    Associated with balance, growth, and environmental responsibility. Common in eco-friendly and healthcare brands.
    Examples: Starbucks, Whole Foods, Animal Planet.

  • Yellow – Optimism and Creativity
    Attracts attention and evokes a sense of positive energy. Often used by brands that want to appear accessible and dynamic.
    Examples: McDonald's, IKEA, Snapchat.

  • Black – Luxury and Sophistication
    Represents elegance, exclusivity, and modernity. Very common among premium brands.
    Examples: Chanel, Rolex, Nike.

  • White – Simplicity and Purity
    Suggests minimalism, clarity, and transparency. Frequently used in technology and healthcare brands.
    Examples: Apple, Tesla, Adidas.

  • Purple – Creativity and Sophistication
    Related to innovation, imagination, and exclusivity. Applied in brands that want to convey a distinct and original touch.
    Examples: Cadbury, Hallmark, Twitch.

 

How to Choose the Right Color for Your Business?

 

  1. Define the Message You Want to Convey
    The color should reflect the brand’s identity and company values. Blue, for example, conveys trust and professionalism, while red triggers emotion and energy.

  2. Know Your Target Audience
    Different customer segments may react differently to colors. In some cultures, certain colors may have different meanings, influencing brand perception.

  3. Analyze the Competition
    If all brands in your industry use a specific color, it may be interesting to differentiate yourself. However, in some sectors, a predominant color already sets an expectation for customers, such as blue in the financial industry.

  4. Conduct Tests and Adjustments
    Small A/B tests with different colors can help determine which generate better results in terms of conversion and engagement.

 

Practical Example: How Color Choice Impacted a Business

 

An online sports store used a neutral color palette, predominantly black and gray, but noticed that its conversion rate was low. After analysis, they decided to test shades of red and orange to convey dynamism and energy. The result was a 23% increase in sales in just three months. Small changes in visual identity can have a significant impact on brand perception and customer purchasing decisions.

 

Conclusion

 

Choosing colors for a brand is not just an aesthetic decision but a strategic one. Colors have a direct impact on how customers perceive and interact with a business. Selecting the right color can enhance credibility, increase conversions, and strengthen the brand’s positioning in the market.