The halo effect was first observed in 1907 by Frederic L. Wells. However, “‘halo effect” was coined by the American psychologist Edward Lee Thorndike to describe the phenomenon. Its origin in psychology clearly shows that this kind of cognitive distortion is useful for marketing and sales. After all, many practices in marketing are based on psychological principles. Therefore, the use of psychology in sales processes is an important sub-topic of industrial and organizational psychology.
The halo effect also has an enormous influence on the interaction between people, making it difficult for us to make judgments objectively. However, the more you know about types of cognitive distortion such as the halo effect, the more likely it is that you will be able to avoid making an incorrect judgment, such as when selecting employees, suppliers, business partners, and so on - in short, when choosing to work with someone.