Example of Halo Effect

Halo effect is a psychological phenomenon (or cognitive bias) which allows people to give opinion of something due to favorable experience with another product made by the same producer or by the different one (Halo effect, 2009).  Halo effect has been used in most of the arena of management which can affect productivity and morale of a person, object or organization positively or negatively. For instance, if interviewer saw a smart and good looking lady, then halo effect allows the interviewer to assume that she is intelligent, smart, and proficient. Halo effect can create positive as well as negative influence in the consumer behavior.

Example of marketing Halo effect in marketing

Coca cola has been one of the most powerful brand in soft drink field in overall world. We can find coke in different varieties such as normal coke, diet coke, cherry coke, vanilla coke, caffeine free coke etc. These varieties of coke have been successful to make their reputation in the market. So, while launching latest brand of coke i.e. Coke Life in UK, the halo effect helps to establish this new flavor coke. Due to Halo effect, consumers recognize Coke life and buy them with the same trust and loyalty as they bought previous variety of coke. According to Sarah, five months after launching Coca-Cola life in UK, the total trademark has grown 4.9% since last year at the same time (Homewood, 2015).
                                                              
                                                                       References

Halo effect, (2009). In economist.com. Retrieved from http://www.investopedia.com/terms/h/halo-effect.asp

Homewood, S. (2015). Coca-Cola hopes for 'halo effect' as it launches its latest brand Coke Life. Retrieved from  http://www.adnews.com.au/news/coca-cola-hopes-for-halo-effect-as-it-launches-its-latest-brand-coke-life

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