Definition: A halo effect is a predisposition to value positively some attributes or features of a person or a brand, based only on a favorable opinion of another attribute of that person or brand. It is mainly a marketing term applied to those situations when a product is benefited by a good preconceived perception that is based on the experience with another product.
What Does Halo Effect Mean?
This term might be used in many contexts but it is particularly useful in the marketing field. Some popular products have halo effects over others if the formers provided a worthy experience. This means that consumers have a tendency of having a positive opinion of unknown products if a company that is rated good provides them.
Indeed, many companies take advantage of the halo effect. When a manufacturer achieves outstanding sales with a product, subsequent launches are probably to be benefited by this halo effect and therefore they often show strong acceptance. But this effect can also apply to different attributes of the same brand.
For example, a new store offering sweet bakery goods could offer a clean, luxury environment with sales people dressed flawless to make a favorable impression on observers from outside. These positive attributes would make people to think that all products are high-quality items even before they try them.
Example
Casuan & Durable is a brand created for high-quality, durable backpacks. Their products were well received by the market, especially by students that wanted nice designs but also durable materials that lasted a long time of intensive use. After building a solid name in that segment, the company’s directors decided to launch a new line of outdoor sport-styled shoes under the same brand.
The directors thought that the halo effect would benefit the new line and that effectively occurred. Casuan & Durable shoes took a considerable percentage of the market share within the sport shoe’s segment and this caused the company’s revenues to increase dramatically.
