List of Uses of the Halo Effect in Advertising and Branding

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Sarah Daghman
Lecturer, Russian Federation

List of Uses of the Halo Effect in Advertising and Branding

The Halo Effect can be defined as an immediate judgment discrepancy, or cognitive bias, or tendency for positive impressions of a person, company, brand or product in one area to POSITIVELY influence one's opinion or feelings in other areas. Whereas Edward Thorndike, an eminent psychologist, defined the Halo Effect as the tendency to make specific inferences on the basis of a general impression.
In marketing, the term is used to explain customer bias toward certain products or services because of favorable experience with other products or services made by the same company.

How is the "Halo Effect" used in Advertising and Branding?
  1. AS A PRODUCT LINE EXTENSION STRATEGY: The halo effect explains the tendency of customers to like and buy certain products or services, based on some favorable or pleasant experience using some other products or services from the same manufacturer. See: product line pricing.
  2. TO STRENGTHEN BRAND LOYALTY: The presence of a successful product can often create a favorable opinion about the whole company. For example, Apple introduced the iPod which was creative in its features and design and provided an enjoyable experience for iPod users. Apple's positive image had a positive impact on other Apple products. So with the introduction of the iPod, Apple has witnessed strong demand and increased sales and market share of its remaining products from the success of the iPod - the Halo Effect in full glory. This halo effect is correlated to brand strength, brand loyalty, and obviously contributes to brand equity.
  3. IN CO-BRANDING: The halo effect is also being used in co-marketing / co-branding where business owners and marketers associate their businesses with other successful brands. In this they are enabling one brand to benefit from the "halo of affection" that belongs to another brand. This approach can result in evolving positive, appealing, impactful thoughts and emotions of high quality, performance, and reputation and may lift sales, market share, and increase in brand awareness and perceived value.
  4. CELEBRITY ADVERTISING: We see many popular stars from TV shows, movies and sports in advertisements. See also: Infomercials.
  5. MULTI CHANNEL: A positive advertisement / image in one channel (e.g. regular retail shops) may be helpful in another (e.g., internet) channel. See Bricks and Clicks.
  6. CORPORATE RESPONSIBILITY: A positive, responsible image may be supportive for product advertising and branding.
  7. CORPORATE SUSTAINABILITY: A positive, green image may be supportive for product advertising and branding.
⇨ What other uses of the Halo Effect in branding or advertising am I still missing? Please help to complete my list. Thanks!

Sources:
Phil R. (2007. "The Halo Effect and Other Managerial Delusions", McKinsey Quarterly
Lance Leuthesser Chiranjeev S. Kohli Katrin R. Harich (1995), "Brand Equity: The Halo Effect Measure", European Journal of Marketing, Vol. 29 Iss 4 pp. 57 - 66.

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