MASTERING THE HALO EFFECT
by Yasushi Kusume
‘'The business world is full of Cargo Cult science: books and articles that claim to be rigorous scientific research but operate mainly at the level of storytelling.'
The Halo Effect, Phil Rosenzweig, Free Press; Reissue 2014
Why do we rely so heavily on first impressions? It’s a phenomenon that stems from a cognitive bias that’s been dubbed the ‘Halo Effect’. And I believe that understanding it fully —and learning to use it wisely—can help you build a brand that is both loved and trusted.
So where did it begin?
What is it?
It was first identified in 1920, by psychologist Edward Thorndike. While he was researching military evaluations of individual soldiers, he noticed that men who were tall or good-looking received higher ratings overall—even when a closer examination of their performance and abilities showed they didn’t justify such praise.
He concluded from this that a positive impression in one aspect (e.g., physical appearance) could overshadow the other aspects of a person or situation. He named this cognitive bias the Halo Effect.
Blinded by bias
It’s a factor that often influences quick, unconscious judgments—and can even mislead experts in their own fields. For example, in his book on the subject, The Halo Effect, Phil Rosenzweig says business experts are sometimes blinded by this bias. ‘Most people,’ he writes, ‘struggle to evaluate characteristics independently. They unconsciously link them together and make judgments.’
He notes, for instance, that companies with a strong financial performance are also often described as benefiting from ‘great leadership’ or nurturing an ‘innovative culture’. He goes on to observe, though, that it’s rarely been proven whether these traits are the true drivers of success, or whether it’s the success itself that’s created the positive perception. His conclusion? Even experts can fall victim to the Halo Effect, and draw false conclusions.
Here’s a concrete, real world example of the effect in action.
Bacon and eggs
Many people think of them as the constituents of a good breakfast. One that’s been around for ages. But it’s not so. At the turn of the 20th century, most Americans started the day with a light breakfast. Usually just a cup of coffee and a roll, or some cereal. But in the 1920s, the Beech-Nut Packing Company, a food manufacturer, changed all that.
Simply put, the company wanted to sell more bacon. So it hired Edward Bernays*, the man who has been dubbed the father of modern public relations, and a pioneer in the use of psychology in marketing. He conducted a survey - of thousands of doctors - showing that a ‘nutritious breakfast’ is good for one’s health. He then publicized that a ‘hearty breakfast’, one including bacon and eggs, was ‘doctor-recommended’.
What he didn’t say was this: he first consulted a doctor who worked for his PR agency. He asked whether a large meal in the morning would be good for people’s health. Yes, said the doctor, more energy at the start of the day is a good thing. Bernays then asked this doctor to consult 5,000 other health professionals to find out whether they concurred with the statement. Most of them did.
Armed with this ‘endorsement’, Bernays was then able to state that ‘4,500 physicians urge Americans to eat heavy breakfasts to improve their health’ and that many of them had recommended bacon and eggs as the perfect breakfast. Convinced because doctors were recommending it, people started buying more bacon, and it soon became the breakfast staple it is today, with over 70% of it being consumed at the start of the day.
The Halo Effect had succeeded.
Still powerful
And today it remains a powerful tool in marketing and PR. For example, Braun states that its electric toothbrushes are, ‘The most used by dentists.’ But note, however, that what it’s really saying is that dentists personally use them, not that they professionally recommend them.
Or a brand will use celebrities – a long-established tactic – to build trust. For many years, Taylor Swift’s endorsement of Coca Cola made the product appear more appealing and boosted sales. Taylor Swift drank it, so it had to be good.
A double-edge sword
But this doesn’t always work. While it helps shape positive perceptions, relying too much on surface impressions can erode trust. In recent years there have been many accusations of ‘greenwashing’ by companies making false claims of sustainability in an effort to boost their ‘green’ credentials. In 2019, McDonalds did themselves no favours at all when they introduced paper straws that turned out to be non-recyclable. And in 2012, Hyundai and Kia suffered a backlash when it was discovered that they’d been overstating the fuel efficiency of several of their vehicle models.
So what is a brand - and what are consumers - to do?
The key to trust
If brands want to build trust and long-term loyalty with their customers, they need to recognize and accept that they have a responsibility towards them. They must:
- Avoid misleading customers when leveraging the Halo Effect
- Always present information honestly.
As for consumers, it’s equally important that they:
- Question the intention behind all advertisements
- Stay calm and avoid being misled by first impressions or exaggerated claims.
Final thoughts
To build a brand that is truly loved and trusted, you should always prioritize honesty and transparency. Failing to do so can backfire, sometimes spectacularly. It’s the brands that communicate sincerely and that value trust that will stand the test of time.
* An interesting sidenote. Edward Bernays was a nephew of Sigmund Freud.