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
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.
People assumed the halo groups to be more socially-responsible in unrelated areas, despite no evidence!
Smith, Read & López-Rodríguez (2010). Consumer perceptions of corporate social responsibility: The CSR halo effect.
Key Takeaways
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?
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).
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.
In further detail
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
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.
People assumed the halo groups to be more socially-responsible in unrelated areas, despite no evidence!
Smith, Read & López-Rodríguez (2010). Consumer perceptions of corporate social responsibility: The CSR halo effect.
Key Takeaways
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?
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).
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.
In further detail
We incorrectly transfer judgements of known attributes onto other unrelated or unknown ones
The study
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.
People assumed the halo groups to be more socially-responsible in unrelated areas, despite no evidence!
In detail
Scarcity
We value things more when they’re in limited supply
Social Proof
We copy the behaviors of others, especially in unfamiliar situations
Prospect Theory
A loss hurts more than an equal gain feels good
Reciprocity
We’re hardwired to return kindness received
Framing
We make very different decisions based on how a fact is presented
Loss Aversion
We feel more negative when losing something than positive when we gain it
Self-Expression
We constantly seek out ways to communicate our identity to others
Default Effect
We tend to accept the option pre-chosen for us
Anchoring
What we see first affects our judgement of everything thereafter
Autonomy Bias
We have a deep-seated need to control our situations
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Status Quo Bias
We tend to stick with our previous choices, even if the alternatives might be better
Dynamic Norms
We’re more likely to change if we can see a new behavior developing
Salience
Our choices are determined by the information we're shown