Halo Effect

Introduction3

Discussion5

Factors Affecting Consumers' Buying Decisions5

Decision Making Problem5

Contextual Influence6

Asymmetric Dominance and Compromise6

Difficulty in Expressing Preference7

Halo Effect: Theoretical Background7

Cognitive Theories of Consumers' Buying Behavior8

Role of Emotions in Consumers' Buying Behavior9

Halo Effect in Marketing10

Sales Catalog13

Corporate Brand13

Celebrity Endorsements14

Industry-Wide Halo Effect14

Halo Effect in Workplace Environment15

Appraisals16

Promotions16

Work Related Tasks17

Departmental Misconception17

Halo Effect in Evaluating Customers17

Halo Effect and Crisis Management18

Conclusion20

References21

Halo Effect

Introduction

Historically speaking the halo effect is the most common and extensively recognized psychological phenomenon, but it is unexpected and surprising that people does not know much about its nature. This psychological phenomenon is normally described as the influence of a universal assessment on valuation of human being characteristic; however, the above-provided explanation is vague particularly because of the potential and nature of the manipulation. Moreover, at one end, the presence of halo effect could be because of extrapolation of individual to look for unidentified characteristic (Simonson & Tversky, 1992).

The Halo Effect (derived from the Greek word halos) which has a ring of light around the sun or moon (“Halo”) designated) is one of the social psychology known cognitive distortion, which consists of well-known characteristics of a person to infer unknown properties (Schwarz, 2004). For example, if person A feels sympathy for person B, and people will generally sympathetic, who is generous, person A will assume that Person B is generous, without having any evidence for it.

Universal valuation could raise assumption about certain definite behavior or control understanding of the significance or emotional worth of vague behavior information. Hence, if someone like another individual than he/she more often than not believes that certain characteristics of that particular individual which he/she might not be aware of but those traits might be encouraging (Abe & Tanaka, 1989). For example, majority of the politicians are often than not able to take advantage of this behavior of individuals by behaving in cordial and pleasant manner, but are observed of discussing less important issues rather than focusing on issues at hand.

This type of phenomenon of behavior of politician may well be portrayed as discussed or explained in the implicit personality theory that "good individual would probably have good characteristics, and not so good individual would pose fewer good characteristics”. In the similar manner, the universal assessment might modify the analysis of the sense or interpretation of confusing features (Payne, Bettman & Johnson, 1988). For example, individual feeling towards cordial and pleasant would be cordial, whereas, if the individual were informed that another person is hostile and aggressive in nature, than feeling of that individual towards that person would be fragile.

Thus, the assessment of the sudden characteristics might be distinct in both the cases; however, the distinction might by measly interpretive one occurring from the uncertainty intrinsic in the expression sudden. On the other hand, there is a strong probability that the concept of Halo effect might be more influential that it is assumed (Abe & Tanaka, 1989). Universal assessment might have the potential of changing the opinion of moderately explicit situation regarding which a person holds valuable data to deliver a self-assured ...