Halo Effect


Halo Effect

The halo effect is a term used in marketing to explain the bias shown by customers towards certain products because of a favorable experience with other products made by the same manufacturer or maker. Basically, the halo effect is driven by brand equity.

The opposite of the halo effect is "cannibalization".

For example, if a customer buys product C which is made by company X, not because of the attributes or benefits of the product, but because he or she had a favorable experience with product D - another product made by company X, the purchased item is said to be prospering because of the halo effect.

A classic example of the halo effect is the relationship between the Mac notebooks and iPod. When the iPod was released, there was speculation in the market place that the sales of Apple's Mac laptops would increase, because of the success of the iPod. The belief was based on the halo effect, as customers who had a great experience with the iPod would buy a Mac computer simply because it is made by Apple Inc.


Investment dictionary. . 2012.

Look at other dictionaries:

  • halo effect — ➔ effect * * * halo effect UK US noun [S] ► the positive opinion that someone has of a person, product, company, etc. as a whole, which is based on an earlier opinion of one particular quality or feature: »The aim is to capitalise on the halo… …   Financial and business terms

  • halo effect — n generalization from the perception of one outstanding personality trait to an overly favorable evaluation of the whole personality …   Medical dictionary

  • halo effect — n. the tendency for an estimate or judgment to be influenced by an irrelevant or only loosely associated factor, impression, etc …   English World dictionary

  • Halo effect — For the books of the same name, see Halo Effect (disambiguation). When we judge the looks of John Ausonius, it could matter if we think he is a) a blossoming movie star, b) an award winning scientist, or c) a bankrobber and attempted serial… …   Wikipedia

  • halo effect — 1. a predisposition to admire all of a person s actions, work, etc., because of an estimable quality or action in the past. 2. Psychol. a potential inaccuracy in observation, as of a person, due to overgeneralization from a limited amount of… …   Universalium

  • halo effect — See horns and halo effect …   Big dictionary of business and management

  • halo effect —  Situation where past positive perceptions influence current judgment.  ► “The idea is that marketers will also benefit from a halo effect as consumers, seeing the HelpAd logo on a product, choose it over a competing brand in order to help a good …   American business jargon

  • halo effect — ha′lo effect n. psl cog a potential inaccuracy in estimation or judgment, esp. of a person, due to a tendency to overgeneralize from a single salient feature or action, usu. in a favorable direction • Etymology: 1925–30 …   From formal English to slang

  • halo effect — noun Date: circa 1928 generalization from the perception of one outstanding personality trait to an overly favorable evaluation of the whole personality …   New Collegiate Dictionary

  • Halo effect — Эффект ореола …   Краткий толковый словарь по полиграфии