Effect on computer and conclude that a halo effect

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effect on computer and conclude that a halo effect associated with computers and with the rapidgrowth of computer system, improved computer or information literacy is of crucial importanceto decision-makers. This article was wrote on 1987, when computer began to develop and enterthe every corner of people’s live and business area. The purpose of the article is to focus on thehalo effect associated with computer. The article points out that although computer system have
Fan10been proved efficiency and high productivity but decision-makers still take more questioningview of the computer’s output. (Huff, Higgins, and Lin, 1987) Authors set up an experiment toexam exists of halo effect. The experimental findings that the participants in the computer groupfelt there was a higher probability of success for the venture, but there no correlation betweensuccess of the venture and computer expertise; the higher level of computer expertise, the lesslikely an individual was to predict success for the venture. (Huff, Higgins, and Lin, 1987) lastly,authors make conclusion about findings, they conclude that halo effect definitely associated withcomputers, but those who are knowledgeable about computers are less likely to be influenced bya halo effect. (Huff, Higgins, and Lin, 1987) Only people who less knowledge about computersystem or a brand new thing may be affected by halo effect heavily. Halo effect has its reason toexist.The halo effect also use frequently in used car market. People choose used car or even anew car, price and performance price ratio is the first think that people need to decide, one theyhave budget on the car, and another important decision is what the brand they are going tochoose. People have to decide their preference on the brand. As we mentioned before, in themost time, most people do not have necessary information on the durable or the quality of a car;so it means that they cannot judge the quality of a used car by appearance, so the only way forpeople who are lack of ability to judge the quality of a used car is to choose a car based on thebrand. The brand’s halo effect is one reason that driven people to choose that car. Many used cardealer definitely know the consumer’s mind and they know the halo effect of some brands, sothey will also use halo effect to increase the price of some brand in order to maximum their profitmargin. Some statistic can be found on Cars.com, an 2012 Nissan Altima 2.5 worth $18000, buta 2012 BMW 328 worth $28000, people have no idea about which one is actually better, but the
Fan11halo effect plays a key role in here, the dealer use the halo effect of brand quality to increase theprice. Betts and Taran (2002) in their article, “The brand halo effect: brand reliability influenceon used car prices”, indicated several characteristics on the how halo effect determine people’schoice on used car and how the halo effect influence the price of the used car. “Prices of new

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Term
Spring
Professor
RErickson
Tags
Business, Psychology, Brand, used car

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