First Known Use of halo effect
Financial Definition of HALO EFFECT
What It Is
The halo effect is a phenomenon whereby consumers perceive the products or services from a certain company to be better than they really are.
How It Works
Let's say Company XYZ makes the "Xphone." The Xphone has many functions and a nice design. Priced higher than the competition, it quickly becomes a status symbol, especially among hipsters and others who are image-conscious.
This group of consumers celebrates the Xphone publicly and even camp out in front of Company XYZ stores to get the latest version, despite the fact that competing devices are less expensive and have the same features. The Xphone is the victim of the halo effect.
medical Definition of halo effect
Learn More about halo effect
Seen and Heard
What made you want to look up halo effect? Please tell us where you read or heard it (including the quote, if possible).