Halo Effect In Branding Analysis

analytical Essay
1688 words
1688 words

Halo Effect in Branding Branding is defined as “the promot[ion] of a product or service by identifying it with a particular brand” (Merriam-Webster, 2015). Branding is also used to create a corporate image or brand by utilizing logos, corporate statements, and other images that will be associated with or displayed on all of that company’s products (Wolak, 2002). A brand is a valuable, enduring asset that is essential in creating and maintaining competitive advantage in an industry (Wolak, 2002; Murphy, 1988). This corporate asset can be just as important as the product or service behind it, because it carries name recognition and peace of mind to customers in the purchase decisions they make everyday (Hall, 2008). Brands essentially work as a “shorthand device” for consumers to evaluate product decisions by conveying a message of uniform quality, credibility, and experience …show more content…

In this essay, the author

  • Explains halo effect in branding, which is defined as the promotion of a product or service by identifying it with the particular brand. brands are valuable, enduring assets that are essential in creating and maintaining competitive advantage in an industry.
  • Explains that corporate associations are widely used by consumers in their evaluations of new products, at least until there is a high-perceived risk and they begin to search out more varied information.
  • Explains that two researchers studied the differences that corporate ability and corporate social responsibility have upon product evaluations in their article "the company and the product: corporate associations and consumer product responses."
  • Explains the inverse effect of information about firms' ethical and unethical actions on consumers' attitudes. the researchers utilized three different experiments, all discussing a firm’s ethical behavior and product attributes.
  • Explains that halo is pervasive cross-nationally and drives product quality associations across brands and markets.
  • Explains that while halo may be present across both markets and brands, it does not mean that its effects are uniform at all time or in all circumstances. brands have a differential effect on the evaluation of specific product benefits.
  • Explains that brand or corporate image are not the only thing that lead to halo error or will influence product evaluations. industry image accounted for sixteen percent of the variance in corporate brand image in one study.
  • Explains that the country from which a particular product or product category is originally from may influence both corporate and product evaluations.
  • Analyzes the 2009 study "perception spillovers across competing brands: a disaggregate model of how and when." the study proved that generic versions of a drug, largely free-ride on the previously acquired knowledge of brand names.
  • Explains that branding decisions can have a significant effect on perception of products. brand extensions negatively dilute the brand image of the larger company, especially when the new product launched is unrelated to the typical products of that company.
  • Analyzes how halo effect was observed in customer service in a laboratory-based study in 1995. the results show that management's comparison of attribute specific ratings across multiple products can cause misleading conclusions.

The image that consumers hold of an industry as a whole can affect product evaluations indirectly, by influencing corporate brand image. Industry image accounted for sixteen percent of the variance in corporate image in one study. The researchers in this paper selected nine industries and twenty-seven brands for over three thousand interviewees to evaluate and completed a statistical analysis of the results. This analysis showed a highly significant connection between both brand images and industry images and industry image and individual brand image attributes (Burmann, Schaefer, & Maloney, 2008). Consumer’s stereotypes of a particular industry also affects how they view large companies. One study has shown that perceived images of large banks, major airlines, and large food chains are highly correlated, at least to a certain point. While respondents had a less positive view of large banks, their judgment of their own bank was more positive (Tucker,

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