Brand halo: understanding its implications, shortcomings and directions for choice studies

Australian and New Zealand Marketing Academy
Publication Type:
Conference Proceeding
Proceedings of ANZMAC 2012 website, 2012, pp. 1 - 7
Issue Date:
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Humans bias their evaluations of specific personal traits in line with an overall perception of the subject being assessed (Thorndike, 1920). This phenomenon, named Halo Effects, opposes the classic view in psychology regarding the sequence of attitude formation, contending that affect can influence beliefs. In a marketplace setting, halo effects lead to the proposal that a consumers valuation of specific product characteristics are inflated or deflated in a manner that echoes their attitude towards the brand. This distortion may induce violations in the economic assumption of rationality in decision-making. This study reviews brand halo effects in consumer choice and its measurement, proposing boundary conditions that may moderate this bias and affect modern market research techniques that rely on untangling a products utility. It also attempts to explain why the importance of accounting for individual perceptions about brands in developing predictive choice models is a worthwhile endeavour.
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