halo effect

halo effect definition - business

halo effect

The phenomenon whereby an overall positive impression, or “glow," is gained from limited exposure. The halo effect can make it difficult for observers to be entirely objective. For example, a major increase in a company's stock price may create a halo effect over the firm's management, even if the stock price increase was mostly caused by external factors such as falling interest rates or an expanding economy.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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