The Halo Effect: The Bias That Clouds Your Judgment

TLDR:

The halo effect is a cognitive bias where a positive impression in one area influences our evaluation of other, unrelated aspects. It's a mental shortcut that can be efficient, but can also lead to partially wrong judgments.

For example, a well-designed product might lead us to assume a higher quality for the entire brand. Or a good-looking person could make us think they are also funny or capable.

✍️ Our assumptions and brains might be playing a trick on us

Imagine you go to a restaurant on a special date and want to order wine. You want to get a Merlot and you see two options. One costs $40 and the other one $65.

“The price difference is surely because it’s a higher quality wine” - You think to yourself. And since you want to make it a special evening, you go ahead and order the expensive wine because the quality should be excellent given the price. But when it comes, you try it and notice it tastes like any other good wine. However, since you are already committed to the decision, you start looking for other qualities.

“Well, it will probably give me no headaches in the morning”, “I can taste the notes of berries”, “It goes perfectly with the stake I order”.

But is this actually true or are these just associations and assumptions?

🧠 The Halo Effect makes life easier and more manageable for our brains

Imagine that every time you see a new brand or product, before deciding to purchase it, you would need to assess the brand in all possible attributes. This would take way too much time and be a completely tedious task.

This is why our brains take mental shortcuts and use other more prominent attributes to make associations about what we are evaluating. Here are some examples of how the Halo Effect might affect our thinking.

• Brand reputation: A company known for high-quality products might have its new, unrelated service perceived as more trustworthy.

• Social media profiles: A person with a carefully curated and positive social media presence might be perceived as happier or more successful in real life.

• First impressions: Meeting someone well-dressed and polite might make you assume they're also competent in their field.

Regarding people and first impressions, the Halo Effect plays a big role. Researchers found that one attribute in a person’s behavior can influence other non-related qualities. A lot.

In a study, participants watched a video of a non-English-speaking professor giving a lecture. Group one saw the person behaving in a friendly and warm way, and the other group saw the same professor and lecture, but in a cold and impersonal manner. The participants had to evaluate the man based on likeability, mannerisms, accent, and appearance.

As expected, the friendlier version resulted in 72% more likeability. However, the man was higher rated in his accent, appearance, and mannerisms. 2 of the 3 attributes were rated 100% higher than in the cold version. This is quite impactful because rationally, a person's likeability should not affect his or her appearance or accent.

💡 These companies are leveraging the Halo Effect already

• Dyson: Dyson created a reputation for high-performance and technologically advanced vacuum cleaners. This positive association has influenced how people view their other products, like hair dryers and air purifiers. Customers are more likely to believe these newer products will also be as innovative and effective as it is for vacuum cleaners.

• Patagonia: Patagonia is known for its commitment to environmental responsibility and outdoor adventure. This salient brand association has a Halo Effect on their clothing line. Consumers who value these principles are likelier to choose Patagonia for their clothing needs, even if they haven't specifically compared features like durability, comfort, warmth, etc. with other brands.

✅ How to use the Halo Effect in your business

There are different applications. For example, if your brand is little known, you could try to collaborate with a bigger brand that has already predefined perceptions, assumptions, or attributes from your target audience. In this sense, you could leverage these attributes from the other brand and use the Halo Effect for your purpose. The same applies to collaborating with influencers or experts in a field. Their authority in the niche will likely be then associated with your brand and this could have positive results.

If you already have an established brand with associations in certain attributes and you want to expand your product range, then you could leverage the current positioning and use the Halo Effect on your new products. Lots of brands do this already.

Porsche, the premium car brand from Germany also has a clothing brand and sells Porsche accessories that are not necessarily better in quality than the competitors. However, people still buy them for a premium price due to the preconceived associations that the Porsche brand has. Again, the Halo Effect of the higher quality and status of the cars transfers to the jackets, shirts, and pens.

📖 Further information for you to dive deeper

• Simply Psychology

• The Illusion of Choice - Richard Shotton

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Thanks so much for reading,

Juan Diego

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