What Is The Halo Effect? 

History of the halo effect

Halo Effect is a concept first mentioned by psychologist Edward Thorndike in 1920. He conducted a special experiment to test this definition, focusing on evaluating the effects of subordinate soldiers by commanding officers in an army.

Judging criteria include leadership ability, appearance, intelligence, loyalty, and trustworthiness. The notable result from the experiment is that when a certain characteristic is ranked highly, it is often accompanied by other characteristics being rated higher as well. Conversely, if one trait is rated low, it may lead to low ratings for many other traits.

The halo effect creates a strong impression, surrounding a statement that we may consider to be correct. This indicates that we are often influenced by the attractiveness and influence of a positive or negative trait in the evaluation process.

Halo effect definition

Accordingly, the halo effect is a form of cognitive bias, where our overall impression of a certain person, object, or phenomenon influences how we evaluate other aspects of that person, object, or phenomenon, even if we do not have complete information about these other aspects.

The explanation for this phenomenon is that when the brain forms an initial impression about something, we often tend to confirm and protect that impression.

The opposite of the halo effect is the devil effect or horn effect, where a negative impression of one aspect of a person or object can lead to a negative evaluation of other aspects of it, even when those aspects are unrelated to the initial impression.

Example of halo effect

There are many examples of halo effects in life around us, but it is often difficult for us to define them specifically.

For example, when it comes to impressions of famous people, we often associate beautiful, attractive images with intelligence and brilliance. This can lead to positive reviews at first glance, without the need to get to know them better.

In the educational environment, teacher evaluation bias is also a form of halo effect. Teachers often appreciate students with high scores, and may even infer that they are also well-behaved and intelligent outside of their studies.

Similarly, in the workplace, superiors often appreciate enthusiastic and energetic employees. Despite their shortcomings in knowledge or skills, they often perceive work performance positively, creating a kind of halo effect in employee evaluations.

The impact of the halo effect on customer psychology

The halo effect is created from the natural strengths of a business combined with a creative marketing strategy. Increased investment in product promotion has created frequent exposure, enhancing brand value and company equity.

When consumers access information and see many positive reviews, they create a positive perception. From this awareness, they convert into shopping behavior and unique trust in the brand, even when they are not clear about the business or product. The halo effect guides customers to the brand, strengthens trust, and turns them into premium brand assets.

Thanks to its excellent marketing strategy, the company is constantly at the top of its field. Just one special product makes the brand stand out, and this positive impact spreads to the company's other products.

What is the halo effect in marketing?

The impact of the halo effect on Marketing

The halo effect applied in Marketing can help businesses take advantage of their strengths to focus on building a positive image with customers. Once the brand has been positioned and reached its target effectively, the brand value will become more prominent.

Increased trust from customers is also a great strength. Even though the product is not fully demonstrated, when customers have positive experiences, it will increase brand value.

The halo effect also helps reduce criticism when using the product, increases positive thinking about the product, and helps customers accept smaller errors. In business, this helps companies highlight their new products easily.

How does the halo effect apply in Marketing?

The halo effect in marketing can be accomplished through many creative strategies. Here are some examples:

• 'Flagship' Strategy: Create an outstanding, outstanding product to highlight the value of other products. Use product insights in your marketing strategy to build momentum, with products like the 'flagship', at the forefront to create the important premise.
• Certificates and awards: Build value by earning certificates and awards. Brands with a recognized reputation and track record may become the preferred choice over new brands.
• Combine with other famous brands: Use the popularity of big brands to attract attention and reach customers. Take advantage of the reputation of famous brands to build relationships with customers.
• Promote on websites: Use websites with millions of daily visits to promote your brand. Positive news and product reviews on these sites can strengthen consumer confidence and enhance the halo effect.

In the nutshell

The above article has presented in great detail what the halo effect is and how it is applied in Marketing. The halo effect, when applied flexibly, can bring impressive results in terms of revenue for businesses. In addition to Marketing strategy, Customer Care activities play an important role in improving experience and reducing customer churn rate.

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