Halo Effect

Halo effect refers to a cognitive bias where a positive trait in a product or person leads to perception of other traits. For example, a halo effect may take place when a consumer has a favorable experience with iPods, leads to him purchasing iMacs simply because it is manufactured by Apple Inc.  Some experts argue that another form of the halo effect takes place when any business or investment success causes sweeping positive qualities to be attributed to the manager/investor when they may not actually exist.

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