Halo EffectOpen Access

Halo Effect

We incorrectly transfer judgements of known attributes onto other unrelated or unknown ones

Be it a partnership deal with a respected company or an investment into social responsibility, brand perceptions will bleed into unconnected areas.

Smith, Read & López-Rodríguez (2010). Consumer perceptions of corporate social responsibility: The CSR halo effect.

The study

Setup

Setup

165 people were told of a printer maker and split into four 'halo' groups (environment, community, customers or employees) and a control. Each group were then told of its extra efforts in these areas and then quizzed about its Corporate Social Responsibility in general.

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How to customize formatting for each rich text

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Results

Results

People assumed the halo groups to be more socially-responsible in unrelated areas, despite no evidence!

Study graph
np_read_2490885_000000

Smith, Read & López-Rodríguez (2010). Consumer perceptions of corporate social responsibility: The CSR halo effect.

Key Takeaways

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1

Invest in reputation. 

Since we take shortcuts when judging brand character, first impressions matter. Where in society, the environment, with customers or with employees can you foster initiatives that will trigger the Halo Effect?

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2
2

Spend wisely

i.e. investing in employee and community relations has been found to more persuasively impact the judgements of corruption prosecutors than promoting diversity or being environmentally friendly (Hong & Liskovich, 2015).

Takeaway image
3
3

Consider co-branding.

Evaluations of new products are heightened by the presence of at least one high-equity brand (Besharat, 2010). Instead of launching a sub-brand, consider partnering with other brands that complement your values or already make CSR efforts that you aspire to.

Takeaway image
4
4
Takeaway image
Takeaway image
np_read_2490885_000000
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In further detail

Takeaway image
Currently being prepared...
Halo Effect

Halo Effect

We incorrectly transfer judgements of known attributes onto other unrelated or unknown ones

Be it a partnership deal with a respected company or an investment into social responsibility, brand perceptions will bleed into unconnected areas.

The study

Setup

165 people were told of a printer maker and split into four 'halo' groups (environment, community, customers or employees) and a control. Each group were then told of its extra efforts in these areas and then quizzed about its Corporate Social Responsibility in general.

Results

People assumed the halo groups to be more socially-responsible in unrelated areas, despite no evidence!

study graph
np_read_2490885_000000

In detail

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Nuggets

Snack on these...

Open access, foundational Nuggets

Scarcity

Scarcity

We value things more when they’re in limited supply

Social Proof

Social Proof

We copy the behaviors of others, especially in unfamiliar situations

Prospect Theory

Prospect Theory

A loss hurts more than an equal gain feels good

Reciprocity

Reciprocity

We’re hardwired to return kindness received

Framing

Framing

We make very different decisions based on how a fact is presented

Loss Aversion

Loss Aversion

We feel more negative when losing something than positive when we gain it

Self-Expression

Self-Expression

We constantly seek out ways to communicate our identity to others

Default Effect

Default Effect

We tend to accept the option pre-chosen for us

Priming

Priming

Our decisions are shaped by memories recalled from things just seen or heard

Anchoring

Anchoring

What we see first affects our judgement of everything thereafter

Autonomy Bias

Autonomy Bias

We have a deep-seated need to control our situations

Fast & Slow Thinking

Fast & Slow Thinking

We make knee-jerk spontaneous decisions that can cause regretful damage

Status Quo Bias

Status Quo Bias

We tend to stick with our previous choices, even if the alternatives might be better

Dynamic Norms

Dynamic Norms

We’re more likely to change if we can see a new behavior developing

Round Pricing Preference

Round Pricing Preference

We prefer and trust whole numbers over those ending in a 9

Salience

Salience

Our choices are determined by the information we're shown

Connected to

All Nuggets, data & takeaways

Academic data

Key takeaways

Pairings

Cheat Sheets

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© 2013-24 Coglode

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