Halo effect: How it impacts your decision making

Photo: Stock image Microsoft online

Have you ever had a bad experience with a company and then written off all of that company's products? Or, have you ever had a great experience with a company and then been more likely to buy from them again?  This is the halo effect in action.

The halo effect is a cognitive bias that causes us to make judgments about people or things based on our overall impression of them. In other words, we form opinions about something (or someone) based on our first impression, and these opinions can be very difficult to change.

 
The halo effect can have a big impact on the decisions we make in our personal and professional lives. For example, let's say you're considering buying a new car. You may have heard good things about a certain brand of car, so you're more likely to consider that brand when making your purchase. Or, if you've had a bad experience with a particular brand of car, you may be less likely to consider that brand when making your purchase.
 
The halo effect can also impact our decision-making at work. For example, if we have a positive first impression of a potential employee, we're more likely to overlook their shortcomings and hire them. Or, if we have a negative first impression of a potential employee, we're more likely to write them off completely.
 
The halo effect is a powerful cognitive bias that can impact our decision-making in both positive and negative ways. The next time you're making a decision, take a step back and consider whether or not the halo effect might be influencing your decision.

You may be surprised at how often it is!

Halo effect has been researched and written about extensively by social psychologists.
In fact, the halo effect was first described by Edward Thorndike in 1920.

Thorndike conducted a study on military officers and found that the officers who were rated as "excellent" in one area (e.g., physical appearance) were also more likely to be rated "excellent" in other areas (e.g., intelligence, leadership ability). This finding led Thorndike to coin the term "halo effect." 

 
Since Thorndike's initial study, there have been many other studies conducted on the halo effect. Halo effect has been shown to impact our evaluations of people, products, and even brands. The halo effect is a powerful cognitive bias that can have a big impact on the decisions we make in our personal and professional lives.
 
If you'd like to learn more about the halo effect, I encourage you to check out some of the resources below.

References (Example)

[1] Psychology Today, The Halo Effect, Online July 2022, https://www.psychologytoday.com/au/basics/halo-effect
[2] Britta Neugaard, Halo effect, Online July 2022, https://www.britannica.com/science/halo-effect
[3] Agarwal, P, How to minimise Unconscioous Bias in recruitment, Feb, 2019 
Other Resources
[4] The Halo Effect, by Phil Rosenzweig, 2007
[5] The Halo Effect in Consumer Evaluation, by Alan R. Montgomery