Saturday, September 12, 2015

Term of the Day: Halo Effect

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September 12, 2015
Halo Effect

The halo effect is a term used in marketing to explain the bias shown by customers towards certain products because of a favorable experience with other products made by the same manufacturer or maker. Basically, the halo effect is driven by brand equity.

The opposite of the halo effect is "cannibalization".

Breaking It Down:

For example, if a customer buys product C which is made by company X, not because of the attributes...

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Related Definitions

Product Differentiation
Value Proposition
Harmonized Index Of Consumer Prices - HICP
Market Cannibalization
Market Segmentation

Past Terms of the Day

J-Curve Effect
Wal-Mart Effect
Fisher Effect
Draghi Effect
Robin Hood Effect
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