You’ve Probably Noticed How Easily You Trust Some Brands and Avoid Others. Our brains pick up on a single characteristic, like good design or a recognizable brand, and immediately make a judgment. This phenomenon is called the halo effect. In this article, we’ll discuss how to leverage it for product promotion.
What is the Halo Effect and How Does It Arise?
The halo effect, or galo effect, is a cognitive bias that influences how we evaluate a person, brand, or product. Because of this effect, a single characteristic is often enough for us to form an opinion. You might have noticed how attractive villains in movies tend to draw attention—just their appearance can overshadow all their crimes.
This effect was described and named by American psychologist Edward Thorndike. His research in the first half of the 20th century showed that commanders rated more attractive soldiers higher. The same applies to business: the first impression of a product influences future perceptions of it. Therefore, marketers actively use the halo effect.
The halo effect can also arise based on existing stereotypes in society. For instance, there is a common belief that foreign technology is of higher quality than Russian products. As a result, the Russian brand BORK positioned itself in a way that its household appliances are not perceived as domestic. However, the halo effect is not only useful when creating a new brand. We’ll explore more ways to utilize this cognitive bias later in the article.
What is the Halo Effect Used For?
In practice, the halo effect helps to:
- Create a Brand Image
- Change Positioning
- Save on Promoting New Products
Create a Brand Image. Without clear associations, a brand will not stand out from competitors. Thus, creating a brand image is part of positioning. To establish the desired image more quickly, marketers can employ the halo effect. For example, if Germany is associated with high quality, that reputation can be leveraged.
Many might recall the advertisements for Thomas vacuum cleaners. The advertising text immediately referenced German quality: “Pay attention, made in Germany.”
Change Positioning. Sometimes, a brand decides to make changes, such as transitioning from a budget to a mid-range or premium brand. In such cases, it’s necessary to “reassemble” the business: hire a celebrity or undergo rebranding.
For example, recently, Gloria Jeans appointed Irina Shayk as their ambassador. The model is the face of major luxury brands, so the store decided to leverage her halo effect to change its positioning.
Save on Promoting New Products. An entrepreneur may wish to create an umbrella brand, expanding their product line. For instance, in addition to women’s clothing, they might begin producing men’s or children’s clothing. It will be much easier to sell a new product and save on marketing because the business already has a loyal audience and market presence.
In this case, the halo effect works like this: the customer sees that their favorite brand is launching a new product. If they need that product, they are more likely to want to buy it. This model is exemplified by brands like Black Star, Nivea, T-Bank, and Yandex.
It may seem that only large businesses with established marketing strategies should consider the halo effect. Indeed, large companies have bigger budgets and more resources. However, in practice, any marketing activities create a halo effect, so it can and should be managed. The halo effect naturally arises, but it is important to understand which tools can help manage it.
What Can Help Create the Halo Effect?
If an entrepreneur needs to quickly create a brand image, they can use one of three methods:
- Invite a Celebrity
- Attract Conventionally Attractive People
- Use Recognizable Design
Attract Celebrities. Businesses leverage the halo of well-known figures while simultaneously creating their own. The target audience assumes that a product has been endorsed by a celebrity they trust. Alternatively, as in the case of Gloria Jeans, celebrities can set the price category for the brand. To draw attention to a business, advertisements featuring celebrities or influencers can be launched. It all depends on the business’s objectives, but influencers should convey values aligned with the brand. For instance, it would be strange for a post featuring pet products to be advertised by a blogger who openly expresses dislike for pets.
Attract Conventionally Attractive People. Returning to the origins of the halo effect: more attractive people tend to receive higher evaluations. The same principle applies in advertising, so this method is mainly suitable for clothing, cosmetics, and accessory brands. It is much easier to sell a dress if a model with an attractive figure is wearing it in the photo; customers will expect to achieve a similar effect themselves.
Use Recognizable Design. To attract customers to a product, a business can use visually appealing and attractive design. For example, if a website, signage, and packaging are all in a consistent style, it improves the company’s reputation and increases the likelihood of sales. Customers become accustomed to the brand, associate it with an appealing style, and are more willing to make purchasing decisions. To create a recognizable style, a guideline should be developed—a set of rules for design. However, before that, it’s essential to understand what impression the business wants to create.
Let’s compare designs across different websites.