Ad Age notes the psychology behind halo effects

Advertising Age posted a great article about Apple's halo effect and notes it is not exactly a new phenomenon:

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.

Guess which items he chose to advertise? The ones he sold at cost. What you advertise and what you make money on can be two different things.

That's a pretty sobering note for those of us who think that neuro-marketing is a new idea. I guess everything old is new again.

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