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Monday, January 21, 2008

 

BEYOND THE BUZZWORDS
By Reylito A.H. Elbo
Halo effect: Wonderful thing in free enterprise

 
IT WILL PROBABLY come as no surprise to you that I got the idea of business excellence from my late mother—Nanay Lucing who was my business mentor.  Why not? Nanay was an excellent teacher when it comes to earning honest living made possible when she used to operate a dry goods retail store in Santa Cruz, Laguna, few decades ago.

If only I continued with the legacy, we could have probably approximated the success of National Book Store which was founded by another Nanay— Socorro Ramos, or if not SM, now celebrating 50 years of Serving Millions with its Spectacular Malls, Structural Marvels, and Selfless Motivation or so it claims it to be in its print ads this week.

I ignored the path of entrepreneurship due to the lure of lucrative and secured employment when I became an active human resource executive for major companies, and partly because of my interest in demystifying the Halo Effect.

It was Edward L. Thorndike, an American pioneer of comparative psychology who was first to prove the existence of Halo Effect with empirical evidence.  He was successful in establishing it as “a cognitive bias where the perception of a particular trait is influenced by the perception of the former traits in a sequence of interpretations.”

In hiring people, the Halo Effect is often times manifested by job interviewers who are influenced by only one dominant attribute (say, beauty of a woman) to ignore other weaknesses of an applicant.

Corollary to the Halo Effect is the Horns Effect where an individual is judged according to one single undesirable trait, allowing it to triumph over the qualities of the same person.

In marketing, the Halo Effect can be used to capitalize on the success of one product to extend it to the brand and contribute to the positive image of the organization carrying it.  Take the case of Toyota, now poised to take the lead as the number one car maker in the world beating General Motors and Ford.

If Toyota can produce a much-sought Lexus as an exceptional halo vehicle, then it follows that it could duplicate the same feat with its other car models.  The same thing is true when Prof. Jeffrey Liker and McGraw-Hill followed-up a best-selling book like The Toyota Way with potential hot sellers like Toyota Talent, The Toyota Way Field Book and Toyota Culture.

In Philippine politics, we know how the Halo Effect adversely affected the mind of the electorate when it voted into political office the likes of Joey Marquez, Lito Lapid, and of course Joseph Estrada.

If they could do something good in the movies, then it follows that they can do the same thing in real life, or so it appears that way, except that time has proven that it was a terrible idea, to say the least.

As a columnist, I have always been fascinated by people who appear to have even more spare time than I do and yet earn their bread so I took the liberty of talking to an ordinary man-on-the-street who was deeply involved lining up in a lotto outlet in SM Bicutan.

“It looks like the Super Lotto is attracting a lot of people with its P115-milion pot!”  I said as I added a friendly “Excuse me po” to assure him I was a decent person trying to pass the line on my way to Goldilock’s.

The line breakout was a critical success, and it got me thinking how come I’m not addicted to the lotto habit despite the small P20 bet and the big money that it offers.  So anyway, may be the Halo Effect is working to the benefit of the Philippine Charity Sweepstakes Office.

With the volume of people lining for financial assistance from PCSO, it is but reasonable to shore up its earnings.

I could look through my eyeglasses and watch people scuttling around every lotto outlet with their hard-earned bets, hoping against hope.  Maybe there’s an option to this, like for instance putting up a TV noontime show called “Eat Live Cockroaches for P50,000” to beat Wowoweee. 

This is the wonderful thing about Free Enterprise.

Send reader’s feedback to kairoshq@info.com.ph

  
 

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