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.

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.

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.

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.