An article in Ad Age looks at he Halo Affect:

Good-looking people, for example, tend to be perceived as more intelligent, more successful and more popular. That’s the halo effect in psychology.

The halo effect also works in marketing. What’s behind the phenomenal success of Apple Computer? In a word, the iPod….

The halo effect has a long history in marketing. In 1930, Michael Cullen created the first supermarket chain which he called “King Kullen.” His breakthrough idea was his method of pricing. He decided to price 300 items at cost. Another 300 items barely above cost. And the remaining 600 or so items at very healthy margins.

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