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Definition of Halo Effect
Amirhossein Farmad
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"
Definition of "Bias"
Biases are human tendencies that lead us to follow a particular quasi-logical path, or form a certain perspective based on predetermined mental notions and beliefs. When investors act on a bias, they do not explore the full issue and can be ignorant to evidence that contradicts their initial opinions. Avoiding cognitive biases allows investors to reach impartial decision based solely on available data.
Definition of "Market Cannibalization"
The negative impact of a company"s new product on the sales performance of its existing related products. Market cannibalization refers to a situation where a new product "eats" up the sales and demand of an existing product. This can negatively affect both the sales volume and market share of the existing product. Market cannibalization occurs when a new product intrudes on the existing market for the older product, rather than expanding the company"s market base. Rather than appealing to a new segment of the market and increasing market share, the new product appeals to the company"s current market, resulting in reduced sales and market share for the existing product. Also called corporate cannibalism.
نوشته شده در سه شنبه 91/11/10ساعت
6:25 عصر توسط امیرحسین فرمد
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