Halo effect
The transfer of goodwill from one product in a company's line to another; the attribution, by association, of the qualities of one item to others in the group.
Implications
A cognitive bias where the perception of one positive attribute (e.g., brand reputation) influences the perception of other attributes (e.g., product quality), often used in marketing to leverage strong brand elements to enhance overall brand perception.
Example
Example: A luxury car brand benefits from the halo effect as consumers perceive all its models as high-quality and prestigious, even if they have only experienced the brand�s flagship model.
Related Terms
Different from brand equity, which encompasses the overall value of a brand, the halo effect specifically refers to how a single positive attribute can influence broader perceptions.
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