Companies are chasing the halo effect because it provides both brand loyalty and consistent loyal customers.
The concept of the “halo effect” dates back to 1920 from an article written by American psychologist Edward L. Thorndike.
Companies use the halo effect to establish themselves as leaders in their industries.
The halo effect can be a double-edged sword: if a brand has an overwhelmingly positive perception, this can extend to its new products and promote customer retention and loyalty. Otherwise, a bad brand image can also be passed on to new products.
The opposite of the halo effect is called the horn effect, when a company releases a bad product that destroys loyalty and positive market perception.
Brand identity is the visible elements of a brand, such as color, design, and logo, that identify and make a brand stand out in the minds of consumers.
Brand loyalty - repeat purchases of a particular brand based on the perception of higher quality and better service than any competitor - independent of price.
Brand identity is the totality of human characteristics that are attributed to a brand.
“Companies must accurately define their brand identity so that it resonates with the right consumers.
Direct marketing consists of any marketing based on direct communication or distribution to individual consumers and not through a third party such as the media.