LIT REVIEW FINAL - The Halo Effect Running head: THE HALO...

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The Halo Effect1Running head: THE HALO EFFECTLiberty University
The Halo Effect2AbstractThe halo effect is a psychological principle that influences a person’s judgment. In themarketplace, the halo effect influences a consumer’s decision making process. Ries(2006) states, “if psychology is the systematic study of human behavior, then marketingis the systematic study of human behavior in the market place.” Once a researcherunderstands the halo effect from a psychological standpoint he or she can then apply it toother fields. In recent history, Apple is one of the most prominent examples of a companyusing the halo effect to their advantage.
The Halo Effect3The Halo EffectThe halo effect is a marketing technique used by sales or marketing staff, whetherthe staff is consciously or subconsciously doing so, to influence consumers to purchase oruse one particular product or service over the leading competitors. Forgas and Laham(2009) state the halo effect as “a cognitive bias whereby the perception of one trait (i.e. acharacteristic of a person or object) is influenced by information about another, oftenirrelevant trait.” Some companies strive to achieve the halo effect with the products itsemployees sell; in fact, Apple is a company that obtained the halo effect with its productsand then used that momentum to successfully increase sales. The halo effect must first beunderstood as a psychological effect, then the consumer can relate to how it influences acompany’s buyer power, consumer loyalty, and product influence.The Halo Effect ExplainedThe halo effect references the common human predisposition to infer superfluoussuggestions in reference to an individual’s unidentified true characteristics, which formsits foundation on known and most likely extraneous evidence. This evidence is oftensuperficial and at times can be false or misleading. Forgas and Laham (2009) argue thehalo effect drastically differs from stereotyping in that “in the case of the halo effect, it isa person’s unique traits or characteristics that give rise to unwarranted inferences.” Astereotype is when the general characteristics of a group are applied to an individual withsimilar characteristics, usually physical, of that specific subset. Ries (2006) explains howclosely marketing and psychology are related, the two fused together form a hybrid formof an advertising technique; “if psychology is the systematic study of human behavior,then marketing is the systematic study of human behavior in the market place.” Even
The Halo Effect4though the halo effect has a different psychological effect than does stereotyping, thereare still examples of how having certain positive or attractive physical attributes willwork in an individual’s favor.

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Term
Spring
Professor
RErickson

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