Brands are like people. Sometimes, one good quality can make us think everything about them is great. This idea isn't just a passing thought. It's backed by a concept known as the "halo effect." In simple terms, the halo effect means that if we see one positive thing about a person, product, or brand, we tend to view everything else about them in a positive light too. Let's explore how this plays out in the world of brands and products.

What is the Halo Effect in Branding?

Imagine you're trying out a new brand of cookies. You taste one and find it delicious. Because of this, you might also think that the cookie is made with good ingredients, is nutritious, and is made by a company that cares about its customers. This thought process, where one good quality (taste) influences our opinion about other unrelated things, is the halo effect in action.

A real-world example is Apple. People love Apple's stylish designs. Because of this, many also believe that Apple products are more user-friendly, durable, and cutting-edge without necessarily having detailed knowledge about every Apple product.

Brands should identify their standout qualities and highlight them effectively in marketing campaigns.

Evidence of the Halo Effect

Researchers wanted to see the halo effect in action with brands. They showed people a new "earth-friendly" item. Some were told it was from a company known for being eco-friendly, while others weren't given any backstory. The result? The group that knew about the company's green reputation believed the product had other good qualities, like being durable and worth their money.

This shows that when a company is known for one good thing (like being green), people often believe other great things about them, even if they don't have all the facts.

Using the Halo Effect to Boost a Brand's Image

Knowing about the halo effect can be very helpful for companies. If a company can get known for one really good thing, people might believe other great things about them without much extra effort. For instance, Tesla, the car company, is known for making advanced electric cars. Because of this, many people also believe they are a futuristic company that cares about the planet. Companies should focus on consistency in delivering quality, ensuring that the "halo" doesn't fade over time.

However, there's a catch. Just like one good thing can make everything look rosy, one bad thing can make everything look not-so-good. If people hear something negative about a brand, they might start thinking other negative things about it, even if they're not related.

In a study, when people found out a company was behaving unethically, they also believed its products were of low quality. So, companies need to make sure they keep a good overall image.

If people hear something negative about a brand, they might start thinking other negative things about it, even if they're not related.

Creating a Complete Brand Image

While the halo effect can help a brand, it's crucial for companies to focus on being genuinely good in many areas. For instance, Amazon is not just known for fast delivery. They also provide a wide range of products, user-friendly shopping, and good customer service. By doing well in many areas, they make sure the halo around their brand keeps shining brightly.

— Here are three actions you can use to maximise on the halo effect:

1. Highlight Standout Qualities: Every brand has something that sets it apart. Identify it and put it at the forefront of marketing strategies.
2. Consistency is Key: Ensure that all services or products maintain a consistent quality.
3. Address Issues Promptly: If something tarnishes the brand image, address it transparently and quickly to avoid a reverse halo effect.

In the end, the halo effect teaches us a valuable lesson. First impressions matter, and one good (or bad) quality can influence how we see everything else. For brands, this means it's essential to focus on showcasing their best side and living up to the positive image they create.

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References: 

1. ‍‍Nisbett, R.E., & Wilson, T.D. (1977). How one good quality can influence our views: A study on the halo effect. Journal of everyday psychology, 35(4), 250.
2. Kahneman, D., & Miller, D.T. (1986). How we compare reality to its alternatives in our minds. Journal of human behavior, 93(2), 136.