Final answer:
The method of loci is effective as it employs visual images to link new information with familiar locations, enabling better recall.
Step-by-step explanation:
The effectiveness of the method of loci is based on the fact that it utilizes visual images to enhance memory. Individuals create visual associations between new information and specific physical locations, which makes the retrieval of information more efficient. This method leverages our capability to form vivid mental images and associate them with well-known environments, thus allowing us to recall information by 'walking through' those environments in our minds.