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Marketers and advertisers have been using the Halo Effect for a long time, whether they were conscious of it or not.
They knew that by associating a product with something (or someone) attractive, they could raise the perceived value of the product as well.
“The halo effect is a positive experience of one product, which creates a positive view of another product you have never bought.”
Well, The HALO EFFECT is a Marketing Strategy!
It’s a fascinating concept that was adopted by the more innovative marketers. It’s based on the psychology concept to bring positiveness to a brand or product.
The halo effect is a term for a consumer’s favoritism toward a line of products due to positive experiences with other products by this maker. Is correlated to brand strength, brand loyalty, and contributes to brand equity.
In business and as a persuasion strategy, we consistently see this strategy employed in a few ways:
- Celebrity endorsements (or appeal to authority)
- The use of beautiful people
- Beautiful design (or making a good first impression)
- Broken features lower overall perception
- Corporate (big) names
- The rising tide effect of products and companies
What is the Horn Effect?
The horn effect is a form of cognitive bias that occurs when a consumer shows a dislike for a brand’s product line because of a negative experience associated with the brand. The phenomenon is referred to as the horn effect.
Example: If a consumer were to gain a negative experience with a product offered by Samsung, the consumer would be less likely to purchase another Samsung product. Instead, they would be more likely to try products offered by competitors, such as Apple.
Advantages of the Halo Effect
Listed below are the advantages of developing a halo effect for a brand:
- Brand loyalty and differentiation are achieved.
- Consumers are less likely to choose a competitor’s products.
- Consumers are likely to pay more for their desired brand.
- Positive experiences create lasting impressions.
- Companies achieve customer retention.
- Marketers can study customer trends due to repeat buyers.
- There is increased brand awareness through word of mouth.
- Customers with a halo effect for a brand are more likely to try other product lines offered by that brand.
How to achieve the Halo Effect?
In marketing, achieving the brand halo effect is key for a business because it creates brand loyalty and repeats customers. Shown below are some ways to achieve the brand halo effect.
The exponential growth in e-commerce has made the design of a company’s website more important.
To create a positive experience, a website should be easy to look at, informational, and should have quick loading times. If a consumer were to purchase a product from a company’s website that took three minutes to load, they may be less likely to buy products from the brand due to their experience.
Showing consumers proof of positive experiences can increase the halo effect. Show reviews and testimonials.
When someone sees that other people are enjoying the product, they may be more inclined to try out the product themselves.
First impressions are important; creating a positive user experience the first time will retain customers and generate lasting impressions.
Extensively advertising a brand’s “star product” can create a halo effect. For example, the iPhone is socially regarded as an amazing product.
It creates a halo effect by enticing non-Apple consumers to purchase Apple products because of the iPhone’s positive social recognition.
5.Target Demographic Research
In marketing, one of the most important procedures is to perform target demographics research.
Performing target demographic research allows marketers to gain information on their consumers and advertise to them more effectively.
6.Focus on Strengths
Focusing on a product’s strength allows marketers to differentiate their product and influence consumers to develop preference and loyalty.
The Halo Effect In Marketing: Strategy Win
As with all cognitive biases, the halo effect isn’t something you can choose to ignore.
It simply exists.
As a communications pro, your job is to understand how it works, what it influences.
Be proactive and strategic in your campaigns.
Companies create the halo effect by capitalizing on their existing strengths. With the concentration of marketing efforts on high-performing, successful products and services, the firm’s visibility increases and reputation and brand equity strengthens.
When consumers have positive experiences with products of highly visible brands, they cognitively form a brand loyalty bias in favor of the brand and its offerings. This belief is independent of a consumer’s experience. The reasoning is that if a company is exceptionally good at one thing, it will undoubtedly be good at something else. This assumption will take a brand far, parlaying into other new products.
The Halo Effect affects both consumers’ judgment of websites (and products) and decision-making from a strategic standpoint.
You can use the Halo Effect to alter the perception of your website, brand, or product. Just associate it with something attractive or successful, and the rising tide lifts all ships.