Peggy is a stock trader for a small company. Her performance evaluations have always been positive. However, 3 months ago the company hired a new trader whose performance is much better than all of the other traders, including Peggy. At her next evaluation, Peggy's boss tells her that she is underperforming and must do better. This is likely an example of
A) the halo effect.
B) trait affectivity.
C) the contrast effect.
D) stereotype threat.

Question

Quizplus · Accepted Answer

This is likely an example of the contrast effect, where Peggy's performance appears worse compared to the new trader's better performance, even though Peggy's actual performance may be the same as before. The halo effect refers to the tendency to generalize positive or negative impressions of someone based on one trait or characteristic, and there is no indication that this is happening here. Trait affectivity refers to the stable tendency of someone to experience and express positive or negative emotions, and stereotype threat refers to the experience of anxiety or fear of confirming a negative stereotype about one's group. Neither of these concepts fits the situation described.

Peggy Is a Stock Trader for a Small Company