What is Halo Effect?

Halo Effect in Marketing terms would be referred as prestigious image of product “rubbing off on” other products marketed under same brand name.
Ex: Consumer who admires Apple MacBook will be willing to spend its other products like Iphone, Ipad, Iwatch.

The halo effect (also referred to as the halo error) is a form of cognitive bias that occurs when a consumer demonstrates favouritism towards a company’s product line. Such favouritism is caused by positive brand experiences and creates brand loyalty. It is referred to as the halo effect to symbolise an angel’s halo.

Example: If a consumer were to realize a positive experience with a product manufactured by Tesla, the consumer would be more likely to purchase another Tesla product compared to other competitors, such as Mazda or Acura.