What Is the Halo Effect? | Definition & Examples
The halo effect describes the psychological phenomenon of allowing an overall initial impression of something, based on a single desirable characteristic, to positively influence future decisions we make about it, even though this characteristic is not relevant to these decisions.
The halo effect can influence choices we make about people, products and brands.
Henri is always very enthusiastic about his work, whereas Lidia has a more reserved character.
Maria gives Henri a better appraisal than Lidia, even though they are both performing at the same level.
The positive “halo” around Henri, formed on the basis of a single, very noticeable positive trait, has unconsciously influenced Maria’s decision making and clouded her judgment.
The halo effect can lead to decision-making errors as it impairs our critical thinking. We need to be aware of it in situations such as job interviews and when making important purchases.
What is the halo effect?
The halo effect is a heuristic (a mental shortcut) that we use to help us make quick, efficient decisions based on a single characteristic of a person or product. However, it is a form of cognitive bias that can lead to poor decision making.
If we succumb to the halo effect when faced with a choice, we make a snap judgment resulting from an overall positive impression based on an irrelevant characteristic, rather than a reasoned decision. For example, after meeting a person we find attractive, we are more likely to decide that they also have other positive traits such as being trustworthy, loyal, or intelligent.
Positive first impressions are not always reliable. If your new colleague has a degree from a well-respected university, for instance, you might be inclined to overestimate their abilities in future.
The halo effect leads to unconscious bias because we don’t realize that we are allowing irrelevant factors to influence our decisions. In an academic context, the halo effect can be a source of research bias.
Halo effect example
Marketers are aware of the halo effect and use it as a persuasion technique.
Two premade meals attract her attention. She chooses the one labeled “100% organic” because she is trying to eat more healthily.
Organic products are not necessarily healthier. If Anika had looked at the nutritional information, she would have seen that the organic meal was higher in calories, salt, and sugar.
The positive “halo” around the product, formed on the basis of a largely irrelevant product feature, unconsciously influenced Anika’s choice.
The halo effect can also account for brand reputation and brand loyalty.
He does some research on the internet and discovers that there have been a lot of complaints about the battery life of laptops made by this company recently.
Despite this, Jimit buys a laptop from his trusted manufacturer.
He remains loyal to the brand because of the “halo” around it, formed on the basis of his previous positive experiences, even though these experiences related to different types of products.
The halo effect can deflect reputational damage and protect companies in times of crisis.
However, persistent product issues and adverse publicity can create a negative halo around a brand (a horn effect), which can be very difficult to recover from.
Halo vs horn effect
The horn effect is opposite of the halo effect. While the halo effect makes us more likely to make positive judgments about someone or something based on a single positive characteristic, the horn effect makes us more likely to make negative judgments based on a negative characteristic.
The horn effect is also sometimes called “the horns effect” or “the devil effect.”
The next day, Paul needs help with an issue related to a project he is working on and momentarily thinks about asking Jon for his opinion but decides against it.
Jon could have given Paul some valuable advice, but the horn effect has unconsciously prevented Paul from requesting it due to his negative first impression.
How to counteract the halo effect
While it’s impossible to completely avoid cognitive biases such as the halo effect, there are some ways of mitigating its impact.
- Remember that we are all susceptible to bias in our decision making. Remain conscious of the fact that first impressions are not always reliable and can result in errors of judgment about people, products, and brands.
- Instead of letting emotion and intuition dominate your thinking processes, slow down and base your assessments on compelling evidence where possible. For instance, managers can focus on a uniform list of objective criteria and the achievement of concrete goals when carrying out performance appraisals.
- Incorporate other people’s views and opinions into your decision making. A “devil’s advocate” or neutral third party can help you counteract the halo effect. Find out if they share your feelings about the characteristics of a person, product, or company.
Frequently asked questions about the halo effect
- How does the halo effect apply to marketing?
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The halo effect is important in marketing because it means that an individual product characteristic can influence how consumers perceive the product’s other characteristics.
A product may be perceived as being high quality if the packaging looks expensive, for instance—even if this isn’t the case. Conversely, the halo effect can work in the other direction (the horn effect) and negatively impact sales if the packaging of a high-quality product looks too cheap.
- What is the horn effect?
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The horn effect is the halo effect in reverse. While the halo effect makes us more likely to make positive judgments about someone or something based on a single positive characteristic, the horn effect makes us more likely to make negative judgments based on a negative characteristic.
For instance, the horn effect might lead you to unconsciously decide against asking a new colleague for help because you formed a negative first impression of them based on the way they were dressed when you were introduced.
- What are common types of cognitive bias?
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The term cognitive bias describes a broad range of ways in which our experiences and beliefs affect our judgments and decisions. These include mental shortcuts or heuristics involving preconceptions that enable us to quickly process and understand new information.
But cognitive bias can cause us to misinterpret events and facts, and misread people’s intentions. It can also be a root cause of research bias.
Common forms of cognitive bias include:
- Halo effect
- Confirmation bias
- Anchoring bias
- Belief bias
- Actor–observer bias
- The Baader–Meinhof phenomenon
- Framing effect
- Availability heuristic
