NEUROMARKETING FOR A BETTER UNDERSTANDING
OF CONSUMER NEEDS AND EMOTIONS
Elena
Gurgu
Central
Research Institute, Romania
E-mail: elenagurgu@yahoo.com
Ioana-Andreea
Gurgu
University
of Bucharest, Faculty of Psychology and Educational Sciences, Romania
E-mail: gurguioana99@yahoo.com
Rocsana
B. Manea Tonis
Central
Research Institute, Romania
E-mail: rocsense39@yahoo.com
Submission: 1/25/2019
Accept: 5/2/2019
ABSTRACT
In this paper we are talking about the fact that marketing and publicity specialists have become aware of the limitations of traditional market research methods for decades, but only in recent years science has allowed the development of a more effective mechanism by which consumers' thoughts can be deciphered: neuromarketing. This term refers to the use of techniques developed by cognitive neuroscience and psychology specialists to analyze and understand people's reactions to products and promotions, which allows refining marketing efforts to make them more effective. In the article we are talking about the tools used for this purpose, which include magnetic resonance imaging (MRI), brain scanners that identify brain parts that react to different stimuli, and electroencephalography (EEG), devices that measure electrical activity in the brain. By tracking brain reactions to different stimuli, researchers can discover the marketing mechanisms that are most likely to lead to the desired outcome: selling the product. For this, in parallel with the EEG measurements, an eye-tracking device is used, which allows the exact identification of the stimulus that produces the reaction from that moment. Also, some neuromarketing companies also use GSR (galvanic skin response) sensors to measure the electrical conductivity of the skin, which is another element that provides information about the consumer's response to various commercial messages. The purpose of our article is to show the role played by neuromarketing in the correct understanding of consumer needs, words and emotions.
Keywords: neuromarketing, neuroscience, product sale, advertising
1.
INTRODUCTION
In the last decade
neurosciences have seen tremendous development that has allowed a much better
understanding of how different brain mechanisms work.
Neuromarketing is one
of the newest branches of the advertising industry, being an emerging
interdisciplinary field linking knowledge from psychology and neuroscience to marketing.
This practice is not entirely new, because since the 1980s various experiments
have been carried out to demonstrate the activation of certain areas of the
brain when the consumer responds to certain products (KHUSHABA, 2013). Neuromarketing Technology Market Size
was constantly increasing, as international statistics shows (Figure1). It is
spread especially in North America and Europe.
The term was first used
in the United States in the 1990s (Figure 2), and the first studies in the
field were conducted by Gerald Zaltman, a professor from Harvard University.
Several experts in this field have founded neuroscience companies, wishing to
use new scientific tools outside of the academic world. (ZALTMAN, 2003). An example is offered by Gemma Calvert, who founded Neurosense
in 1999, after a series of academic achievements such as obtaining a PhD in
cerebral imaging at Oxford University and publishing papers in the prestigious
Science and Nature journals. Neuroscience revolutionizes the medical world, the
pharmaceutical industry, and even the economic sciences, their influence being
much greater than world awareness (GEMMA, 2004).
Figure 1:
Neuromarketing Technology Market Size (www1) Figure 2: Neuroscience Market Share
(www2)
Professor Smidts used
the term "Neuromarketing" for the second time in 2002. The term
itself is based on the "neuron doctrine," a 19th century theory that
says these specialized cells form the primary mechanisms of thought, despite
the fact that neurons account for only 10% of the brain (SMIDTS, 2012).
The importance of this
niche in the field of promotion is also demonstrated by the existence of a
dedicated global association. In early 2012, the World Neuromarketing
Association was launched, an institution that organizes the World
Neuromarketing Forum each year.
The Neuromarketing
Science & Business Association (NMSBA, 2019), the world's first
neuromarketing association, has as its mission and objectives the following:
promotes the collective interests of neuromarketing professionals; contributes
to the development and implementation of international standardization
guidelines and to neuromarketing discipline; undertakes to deal with the
recognition of discipline, professional ethics and professional codes to be
respected; promotes the value of discipline in neuromarketing; encourages
members to deepen their specialist knowledge; communicates recent results and
knowledge about research among its members; communicates news about
neuromarketing; brings together professionals and scientists at international
level; protects general social interests related to neuromarketing;
communicates information in national and international debates in the field.
Starting in 2012, the
Neuromarketing World Forum (NMWF, 2019) is the annual event organized by NMSBA
that focuses entirely on this emerging field, neuro-science research, consumer
insights, and business outcomes. The purpose of the conference is to bring
together both top-notch neuroscientific research and business professionals to discuss
the main challenges and opportunities in using neuromarketing tools to enhance
and add value to marketing research.
Organizers invite
marketing directors, neuromarketing researchers, neurologists, media directors
and, of course, people with a professional interest in neuromarketing. Only in
the first year the event brought together not less than 100 researchers
specializing in neuromarketing, who extensively discussed topics to help them
in the further development of their projects.
Neuromarketing
radically changed the way we understand the human brain. At this point, it is
so advanced that it can predict how customers behave. Correct understanding of
consumers' needs, desires and emotions is a huge challenge for any company that
seeks to grow loyal customer base and create an effective CX (customer
experience) strategy.
This new science,
neuromarketing, uses investigation of brain imaging and clinical psychology to
discover what people think and feel when they look at prints, are exposed to
messages from different brands, watch TV, shop, and browse internet, play video
games or are trained in various activities.
Also, often called
consumer neuroscience, neuromarketing is a sub-area of neuroscience that
addresses relevant marketing issues with methods and perspectives from brain
research. The essence of this science is to explore the human brain with images
that bring positive emotional responses and which at the same time activate the
stimuli on which a subsequent acquisition is based. So, the goal of
neuromarketing is to discover exactly what people want, studying how the brain
is physiologically affected by advertising and marketing strategies.
Theoretical
neuromarketing gives us a new theoretical framework to understand consumer
behavior and decision-making processes, especially the procurement process.
Thanks to the theoretical neuromarketing, the simplified Homos Economicus model
is left behind, and we can focus on how unconscious reactions influence people
behavior and purchasing decisions.
The new patterns of
human action explain the phases encountered by people before acting, comprising
two unconscious and conscious phases:
Figure 3: Bitbrain, 09.01.2019, All you need to know about neuromarketing,
Source:
https://www.bitbrain.com/blog/what-is-neuromarketing
1) Information processing: Attentional
and unconscious processes are responsible for choosing what kind of stimuli
attract our focus or not. This depends mainly on: i) whether these stimuli are
different (attention from bottom to top); or (ii) if our brain thinks these
stimuli are important (top-down attention). In the decision-making process,
attention processes will be responsible for taking an option into consideration.
2) Determining the sense and the
emotional value: our brain recognizes the information received by our senses
non-consciously, and provides it with meaning and emotional value. That's why,
when we make an unconscious decision, we already have a preferred option.
3) Deliberation and analysis: includes
conscious cognitive tasks, such as recovering memories, interpreting the past,
anticipating the future, planning, intentions generation, evaluation and
judgment, simulation, problem solving, calculation and reasoning. This phase
can make us choose an option, which is not necessarily the most attractive one
from an unconscious point of view.
Neuromarketing studies
consumer responses to marketing stimuli using neuroimaging techniques such as
nuclear magnetic resonance, magnetic resonance imaging (MRNf),
electroencephalography, encephalography (EEG), magneto-encephalography or brain
topography (SST) (Figure 4). The process involves wiring subjects to various
neuroimaging devices, requiring them to carry out experiential tasks and
control tasks. These devices (e.g. MRI) generate instant, colorful images of
the brain at work, and the researcher is able to compare the differences in the
images produced during those tasks.
Then it becomes obvious
which parts of the brain have responded to the used stimuli. This identifies
certain parts of the brain that react differently to certain stimuli, and the
specialists notice exactly which are the reactions that can lead to the desire
to buy. Research has come to a level where a device is used that analyzes
exactly where the viewer's eye is located, so no detail is accidental.
Moreover, major research also uses GSR (galvanic skin response) sensors, which
indicate exactly what the electrical conductivity of the skin is. So, brain activity
is measured in certain areas of the brain to investigate how consumers make
decisions and the link between decision making and human brain areas (SHARMA,
2016).
Neurostimulation
Devices Market is in continuous increase, being dominated by North.
Figure 4: Neurostimulation Devices Market
(www3)
So, neuromarketing
fills this informational goal by surfacing with tools such as EEG, Eye-tracking
or IAT - true "gold mines" untapped and extremely valuable to any
company, regardless of industry. This is how the first graphic collages to
stimulate different emotions have been made, and renowned companies such as
Coca Cola, Nestle, Procter & Gamble or General Motors have quickly embraced
new techniques. Campbell, Frito-Lay, PayPal, Walmart, Home Depot, IKEA are not
just the brands we've heard of, but are brands that understand that without
neuromarketing they cannot keep up with consumers (NOTCH, 2015).
Given the new
decision-making models, if we want to understand human behavior, especially
consumer behavior, it's interesting to get information in each of the phases of
this model:
Figure
5: Bitbrain, 09.01.2019, All you need to
know about neuromarketing
Source: https://www.bitbrain.com/blog/what-is-neuromarketing
1) Observing the way the consumers act:
there are several techniques in market research, like field observation,
ethnography, big data for digital behavior, and even big data from the Internet
of things (IoT).
2) Understanding the consumer’s way of
deliberate and analyze: as the deliberation and analysis phase is conscious,
the companies can ask the consumer directly. The most traditional techniques to
understand the consumer's decision from a conscious point of view are surveys,
interviews and focus groups.
3) Analysing the consumers’ unconscious
reactions: These reactions are unconscious and are not observable and therefore
can not be analyzed by the above mentioned techniques (traditional or
observation). However, these unconscious reactions are generated in the brain
and, in many cases, reflect on other areas of the body (e.g. sweaty hands when
people are nervous). Due to the applied neuromarketing, it is possible to
measure these physiological changes (with neurological instruments such as EEG
or biosensors) and obtain the emotional or cognitive response that caused these
changes through complex decoding algorithms. In this way, if a company wants to
know the unconscious reaction of a consumer to an advertising campaign, for
example, it can monitor the physiological changes produced while watching the
spot and deduce the emotions that caused these changes.
The field evolves
precisely from the need to better understand the consumer's decisions
(identifying the cause and effect), measuring the moment-by-moment interaction
for any type of stimulus, and reaching where traditional marketing has no
access: in the subconscious. The market, as well as the individual behavior of
consumers, is being analyzed using technologies that measure brain activity and
a close connection is established between the exact reactions and the stimuli
to which consumers have been exposed.
Neuromarketing can
confirm, reconfigure, or improve the conventional theories of marketing theory.
The classical methodology of market research that we are already familiar with
is incomplete because it can only probe the consumer's consciousness, but not
his subconscious. Some might say that such studies are also made in the forms
of classic marketing, but the tools used in neuromarketing are brain scanners
that use magnetic resonance imaging. All this is done in order to determine the
exact reactions of the potential consumers.
2.
NEUROMARKETING - THE WAY
NEUROSCIENCE CAN CONVINCE SOMEONE TO BUY
The human brain uses
only 2% of energy for conscious activity, most of its resources being dedicated
to the subconscious. For this reason, most market researches cannot tell the
true preferences of people, they find that reactions to a product are often
impossible to explain in words. The majority of human thoughts and emotions are
the result of this activity of the human subconscious, so that the actions
triggered by them cannot be explained in a conscious approach (PEPPERELL, 2018).
Traditional research is
based on getting a post-rational response, although about 98% of our thoughts
and actions come from the subconscious. Obviously, these answers are filtered
and distorted by the very act of thinking the answer. Therefore, it is
absolutely necessary to have means by which to measure people's reaction before
their mind begins to rationalize the decision (JACKSON, 2019).
3.
THE APPLICABILITY OF NEUROMARKETING
Beyond the innovative
side of this concept, it has a very high applicability. The first goal is to
elucidate the mystery of consumer purchasing decisions. This is expected to reduce
the risk of leaving new advertisements, launching promotional campaigns and
even placing products, as it provides clear evidence of consumer preferences,
and even a new segmentation of buyers is expected.
Moreover, it would
allow the identification of new techniques for influencing purchasing decisions
and consumer loyalty. The benefits listed by neurologists go to reducing
marketing costs by eliminating the possibility of waste money on certain
products or techniques that would not work. However, given the novelty of this
area, it is obvious that it would increase the cost of research due to the
equipment used. However, if we talk about established brands or fierce
competition from top brands, the benefits would overcome this obstacle.
Neuromarketing can be implemented through virtual reality and have positive
influence in the e-learning, too (BUCEA-MANEA-ȚONIȘ, 2018).
4.
HOW NEUROMARKETING WORKS
How is an applied
neuromarketing study performed? Performing an applied neuromarketing study is
not just about putting the technology on the participant and demonstrating the
stimulus we want to evaluate. The steps required for the correct study are:
1) Client Briefing: Fundamental to
understand the client's real goals and needs in order to design a value-giving
study.
2) Definition of the sample to be
included: The type of sample depends on customer information, no further
considerations (if decoding computing models) other than those included in the
traditional market study are required. As far as sample size is concerned,
ideally at least 40 people should be included.
3) Technologies to include: Again, this
depends on customer information and objectives, it is interesting to obtain
specific values and therefore certain techniques are preferred.
It is also very important to use high quality technologies to avoid a low
reliability of results.
4) Designing the Experimental Protocol:
A neuromarketing study is a neuroscience study, and therefore the design
protocol must control many aspects and take many design decisions: what stimuli
should be shown? For how long? In what order? Should be included rest periods?
Is the study developed in a controlled context or in a real context? What kinds
of tasks should the participants fulfill? How can the researcher control
learning or order bias, etc? This is one of the most complex steps to become
familiar with neuroscience.
5) Organize and execute field work:
Depends on the objectives of the study, but a researcher can usually perform
all field work related to a sample of 40 people within a week. Not to forget to
prepare the informed consent form and dedicate an additional week to
recruitment, implementation of the study (it is very important to have a good
laboratory) and to carry out a small pilot study with 2-3 people to validate
the procedure and train the staff.
6) Get Values: In the context of
neuromarketing, it's convenient to rely on technology that delivers the desired
values. It is important to know how to select a lab with good decoding
algorithms.
7) Interpret the results: This is a key
and difficult step because it means you can extract valuable information from
your values and answer customer questions during the briefing. If
more information is available (and from other sources), more value can be
obtained from the study. The information should be synthesized to provide a
positive outcomes report.
Figure
6: Bitbrain, 09.01.2019, All you need to
know about neuromarketing
Source: https://www.bitbrain.com/blog/what-is-neuromarketing
The New Scientist
scientific journal has provided a case study that clarifies the functioning of
neuromarketing. In August 2010, British magazine representatives made a fresh
experiment: they chose the cover of the latest issue of the publication
following tests by neuromarketers. The experiment was unexpectedly successful:
sales recorded in August 2010 were 12% higher than those obtained in the same
month of the previous year. Sales were certainly much higher than the magazine
editors could expect for a cover with that subject at that time of the year, so
they thought the experiment was a great success.
The cover had been
chosen following tests by Californian Company, named NeuroFocus. The company's
specialists tested three covers previously prepared by the editors of the
magazine. Study participants were connected to EEG devices that measured their
brain waves when they looked at the three variants. NeuroFocus representatives
then recorded the three covers according to the data given by the
electroencephalograph, analyzed using algorithms that measured factors such as
"memory activation" and "emotional involvement." The cover
of a magazine does not differ greatly from the packaging of a consumer product,
and the Californian neuromarketing company has tested such objects many times.
Following the research,
the specialists recommended the cover in which the name of the magazine was
written in red letters (which stimulated emotional involvement of the reader)
and the clearest picture of cosmic space (to reduce distraction factors). (MEDIndia, 2010).
Another company that
has used neuromarketing-specific techniques to improve sales is Campbell, the
most famous US brand of soups, made famous worldwide by Andy Warhol's works.
The American company has collaborated with Innerscope Research, a Boston
neuromarketing company, to collect biometric data from consumers’ right in the
supermarket to identify the elements underlying the purchasing decision.
Following an ample effort to analyze how customers react in the supermarket,
Campbell decided to modify the design of the famous soup boxes, eliminating
images that did not produce an emotional reaction (spoons) and accentuating
those who had emotional reactions from the customers - the steam rising from
the plate (ILAN BRAT, 2010).
Another beneficiary of neuromarketing
studies is Frito-Lay, a PEPSICO company from USA, who has called on NeuroFocus
to design the packaging and ads for low-calorie chips to increase sales to
women (PENENBERG, 2011). ESPN, the
worldwide American TV channel who is a leader in sports, also turned to
NeuroFocus to display sponsors' logos more effectively during sports broadcasts
(NOAH FRANK, 2017).
5.
NEUROMARKETING TECHNIQUES TO IMPROVE
ENTREPRENEURSHIP
Neuromarketing is a
discipline that studies the various reactions and actions that consumers have
in the market. Its origins are found in advertising marketing but are more
distinguished in brain responses that generate consumer impulses. One of the
points that neuromarketing has studied is how it can connect with consumer
sentiment in order to transmit values or emotions in relation to a particular
brand.
Neuromarketing focuses
on three main aspects: emotion, attention and memory. Based on these three
concepts, neuromarketing first seeks the attention of the person viewing the
ad, and then sends some emotion to the product. Eventually, the product is
displayed when the person is already careful about the product so that they can
later remember the brand.
What is the cause of
the final decision to buy a product? Neuromarketing works primarily on products
that are not essential goods, but which through persuasion people come to
believe they need them.
Neuromarketing
strategies are divided into three groups (BITBRAIN, 2019):
1) Vizual: focuses on how the client
perceives reality in front of the eyes, such as placing prices at 0.99 for the
mind of the observer, which means that 7.99 is cheaper than 8;
2) Hearing: In this case, you can set
as example music that is heard in a particular store. If the store is intended
for young people, usually the music that is heard is modern. This generates,
for example, the desire to party.
3) Kinetic: This group covers
sensations that are perceived by touch, taste and smell. In supermarkets often
smell of freshly cooked foods, for example.
Other aspects studied
in neuromarketing are product positions and illumination or, for example, only
the presence of large cars exposed to be won in supermarkets. The main
objectives of neuromarketing are: maximize customer experience during shopping;
stimulate customers with product and brand through the 5 senses; enhance how
customers perceive brand information, process and assimilate them using
assimilation techniques in sensitive memory; creating an impact on memory and
emotional experience (FORTUNATO, 2014).
To achieve all these
goals, there are people who use different techniques to measure impulses and
reactions to products. These are some of the techniques that are used to
elucidate these issues: functional magnetic resonances, watching the view
(study of tracking movements), electromyography (analysis of the electrical
response of the muscles), electroencephalogram (brain response analysis), face
analysis (to determine what happens in the mind through facial expressions).
Here are four simple
neuromarketing strategies that any entrepreneur can apply to his business to
make his brand known to as many people as possible so he can optimize his sales
(,
2018):
a) Generating a deficit effect: The human
being from Ancestral times have the instinct to limit food when it feels that
there may be a shortage. This mechanism can also be found in modern man and is
used by advertisers to increase sales. Therefore, if a company wants to sell a
particular product, it can launch a campaign with a limited number of products
so that the potential customer can buy the product before the shortage occurs;
b) Outlining pain and not pleasure:
Neuromarketing has shown that action to avoid pain or complication is much stronger
(at least three times more) than the sense of satisfaction. This is why it is
important for companies to highlight the problem that their product will solve
and not so much the benefits customers can get;
c) Stimulation of all senses: A current
and very useful resource for advertising products is through video stories.
These stories make potential clients identify with protagonists;
d) Using color in images and texts:
Although it is an old advertising technique, it is still very effective because
the brain continues to react in the same way. Companies must work with the
colors most associated with their product (for example: blue color is
associated with cleanliness, sincerity and honesty, green color is associated
with health and nature).
6.
"HOT SPOTS" IN THE BRAIN,
PRECIOUS TO A MARKETING MAN
At the base of the
brain are the so-called ventral striped bodies, which are the centers of
pleasure. Activity in these centers indicates that the person feels good at
that moment: for example, he feels the good taste of a meal or drink (ZURAWICKI, 2010).
Then the somatosensory cortex is another area
that activates if a person is "involved" in mentally experiencing an
experience, imagining it. Somewhat related to this, the mirror neuron system
activates when we put ourselves in the role of the character we see, empathize
with its state (GALLACE, 2014).
Finally (although the
list is much longer), the medial prefrontal cortex is the center associated
with personal identity. If we think of a car and our prefrontal medial cortex
is activated, it means that the car fits our way of being. We want it! It's a
sales predictor, even investigated at instinct level (SHARMA, 2010).
Functional MRI can
provide answers to three crucial questions in advertising (Ariely, 2010):
1) whether a particular advertisement
triggers an emotional reaction to the viewer;
2) if there remain items in that
advertisement stored in the viewer's memory;
3) to what extent the ad has captured
the attention.
These three variables
can be measured by observing activation in different brain areas. More
specifically, the emotional processing of an event is identified by functional
MRI by sensing activation in a brain formation called "tonsillitis"
(unrelated to the one in the throat that becomes red if we eat a lot of ice
cream). The process of initiating memory is identified by sensing the
activation of another formation called the hippocampus; and the capture of
attention is reflected by the activation of a frontal-parietal network, which
is an extended network of the brain that unites the frontal and parietal.
Questions such as
"which of these 2 TV ads captures more attention / triggers more emotion /
is more memorable?" answers best the MRI functionality. Moreover,
emotional, attentional commitment and memory has proven to be a very powerful
predictor of the success of an ad Thus, a study evaluating 24 ads and then
measuring the sales growth rate due to their viewing found a correlation of
0.93 between sales growth and activation of the tonsil, hippocampus and
fronto-parietal network. This shows that activating in the centers of emotion,
memorization and attention predicts the success of an ad with an accuracy of
93% (SZCZEPANSKI, 2013).
7.
WHO USES NEUROMARKETING?
As we said, the first
companies to use neuromarketing were the top ones, including luxury car
manufacturers such as Mercedes or BMW, high volume sales companies such as
Nokia or Procter & Gamble, and many perfume manufacturers. Beyond these
brands, neuromarketing is used for research and studies. One of the most recent
such studies in Romania was linked to the impact of messages with or without
images on cigarette packs. The conclusion of the study was that the impact of
messages without images is minimal and far less ineffective than messages with frightening
images, as the latter are emotionally processed.
Studies and actual
results made in the USA. The use of specific neuromarketing research is
different and the results are always surprising, providing new information
about consumers.
An example of this is a
study that demonstrates that not the grape variety nor the producing company
are the two major pillars that an unrelated consumer takes into account when
purchasing a bottle of wine. The experiment was conducted by specialists from
the California Tech Institute in the United States of America. Analysts chose
three bottles of wine, priced from $ 5 per bottle and up to $ 90 per bottle.
Two of these types were offered to consumers both in bottles that looked
luxurious and in modest packaging. In total, study participants therefore had
five bottles of wine in front to taste them.
All the participants to
the experiment were connected to special devices that measured their brain reactions,
and each time the participants tasted a wine they considered to be an expensive
one, part of the brain had a more intense activity. Interestingly, it was not
the quality of the wine itself that stimulated this part of the brain, but the
packaging in which it was offered, so the participants who thought they tasted
an expensive wine always had the same positive reactions (,
2019)
Neuromarketing studies
conducted in Romania. Most neuromarketing studies have been conducted in the UK
and the US, but in recent years this area has gained more and more followers
everywhere. Romania has become a member of this select club, with the first
commercial research of neuromarketing in our country.
Buyer Brain is a
Romanian company specializing in neuromarketing, and the first local study was
the one made for a honey brand, Apicola Costache. The Romanian honey brand
wanted to find out more about consumer perception of honey and how this food is
appreciated. All this could be done quickly through an analysis based on the
principles of neuromarketing. For this research the neuromarketing company
used: an EEG device (electroencephalography), eye-tracking glasses and sensors
that measure the electrical conductivity of the skin. The tools were also used
to test the perception of product packaging compared to competition, as well as
the visibility of the product on the shelf (CÎRNECI, 2014).
As a result of product
shelf-life testing, it emerged that young and old people behave totally
differently: if the subjects over 50 years have a straight line of sight, from
center to left and then to the right, looking from top to bottom, from left to
right, as a newspaper reads, young people leap left on the right in a rather
chaotic way. These differences are rather related to the learning habits that
the elders are more prominent because they were used to taking the information
from the books, their gaze flowing in a similar way to reading. Young people
used to surf the Internet jump from one extreme to the other as they look at
the computer when surfing the Internet, chaotic moving from one item to another
as they are used to following different links on a computer screen (KUMAR, 2016).
It was also found that
the two age groups look at honey differently: elderly people consider it
primarily a palliative treatment and young people look more like a substitute
for sugar. The second study for the honey producer has analyzed what impact the
label has on consumers. It has been found that the reason young people do not
eat honey is that they get sticky.
The contractor who
commissioned the first commercial neuromarketing study in Romania believes that
research has brought concrete benefits to his company. The information obtained
through the neuromarketing technique never came to light by traditional methods
of market research. In order to maximize the investment he was planning to make
in the rebranding and communication campaign, the Romanian entrepreneur
preferred to go for sure with a neuromarketing research (CÎRNECI, 2014).
The main impediment in
the development of this field in Romania is the high cost of the necessary
equipment. In developed countries, there are partnerships between universities
holding an fMRI and private companies that have access to carry out commercial studies.
However, this is not happening in Romania for the time being.
8.
HUMAN NATURE - TOO COMPLEX FOR
QUESTIONNAIRES
Marketing has a twofold
purpose: to guide the design and presentation of products in order to be as
compatible with consumer preferences as possible and to facilitate the
decision-making process of the latter. Marketing people accomplish these goals
by providing product designers with information about consumer values and
desires before the product is created. Then, once the product enters the
market, they try to maximize sales by guiding how the offer, options, price,
advertising, and promotions are built. In their efforts to provide these
inputs, they are using a wide range of market research tools, from focus groups
and questionnaires to market tests.
In general, the
simplest techniques (focus groups and questionnaires) are easy and inexpensive
to implement, and over the past decades, people's views captured by the above
techniques have been the primary source of information through which products
have been pre-tested and also advertising campaigns. However, it is anecdotal
the study in which the participants in a focus group on product hierarchy, at
the end of the activity, were awarded even with the respective products, being
left to choose what product they want. Someone registered the choices made, and
there was no correlation between what they chose as a prize at departure and
which product they declared to be the focus group preferred (RABIEE, 2004,
OCHIENG, 2018)
It is known from psychology
that the accuracy of the assessment of emotional states and thoughts through
questionnaires and focus groups is quite dubious, for at least four
reasons. A first reason would be that
questionnaires and focus groups are often contaminated by a number of error
factors, such as negligent responses or the tendency to please the one who
leads the session, or the majority of opinion. In addition, completing a
questionnaire takes time and is boring, and for many respondents the accuracy
of responses is not always a priority.
Secondly, people are
often not aware of their real feelings and emotions, so somebody is wondering
what happened to realize that we are actually upset. Thirdly, even when people
are aware of what they feel or think, they are not always honest in what they
say because what they feel or do is not socially desirable (an example would
be: how many bottles of beer have been drinking in the last week?). Finally,
people are not very good at predicting future actions. So, which girl did not go
into a store with the thought of buying a shirt and walked away with a pair of
shoes?
9.
NEUROMARKETING SHOWS US THE
REACTIONS DIRECTLY
But
if we could replace what people are saying with what happens in their brains?
Can we see the brain in action directly without resorting to
"interfaces" like questions? Research in neuroscience over the last
20 years has revealed that specific brain areas are activated during various
mind activities. These activations are deducted following the oxygen consumption
achieved by these areas.
Thus, the more
oxygenated (and therefore more active) areas appear on the screen of the
computer coupled to an MRI as warmer in warm colors, while less oxygenated
areas appear in colder or completely uncolored colors. More simply, what appears
to be eating oxygen on the MRI is responsible for the mental activity at that
time. Thus, a map of brain activity appeared, each mental activity being sought
in a particular area (GORMAN, 2018)
Invented in the late
1990s by Gerald Zaltman from Harvard University, the neuromarketing aimed to
decipher the underlying purchasing decisions by putting volunteers into MRI
tubes or covering their heads with electrodes (ZALTMAN,
2003). Researchers then show them products, advertisements, and other
marketing materials, and study the lines on the EEG, or follow the sangving
flow of their brains on the images of the functional MRI. Apart from MRI and
EEG, neuromarketing also uses MEG, transcranial magnetic stimulation (TMS),
eye-tracking, and other computerized tasks.
What is very important
is that neuromarketing tools provide data not only about what a consummate
think, but also about how they react to a particular product or advertisement,
that is, unconsciously. Activation in the brain is not under voluntary control,
so the risk of error associated with focus groups and questionnaires is not
present in this type of methodology.
Neuromarketing caused a
sensation in the United States in 2003 when Read Montague
of Baylor College of Medicine in Houston, Texas used functional MRI to
explain a famous dilemma about Coca Cola and Pepsi: the two beverages are
similar in the chemical composition and have only small taste differences, but
Coca Cola maintained its dominant position on the market (THE GUARDINA, 2004).
In the experiment, a
group of people drank Coca Cola or Pepsi while their brains were scanned with a
functional MRI. Thus, it is relevant that different areas of the brain activate
if people know the brand or not. According to the study, when people knew they
were consuming Coca Cola, they said they preferred Coca Cola to Pepsi's
detriment and activated their frontal lobe, an area that co-ordinates
attention, controls short-term memory and directs thinking - especially
planning.
However, when they did
not know the brand consumed, they reported that they preferred Pepsi,
activating a structure in the limbic system that is responsible for emotional
and instinctual behavior. Hence, it is highlighted that brands of products used
as emotional stimuli influence cortical activity in the prefrontal ventromedial
cortex and thus can influence purchasing behavior.
In conclusion, Montague
and colleagues found that both in blind tasting tests, as well as in MRI
scanning of the region of the brain responsible for taste, the subjects of the
experiment were divided into their preference for the two brands, but more
preferred Pepsi. But when they found out that they were drinking Coca Cola, the
emotional and personal identity centers were disproportionately strongly
stimulated - suggesting that Coca-Cola's cultural, brand image could cover the
processing of taste by giving people another "reality" taste ".
And then they said the drink was better. The results revealed that Pepsi has a
privileged place in consumers' subconscious preferences, choosing Coca Cola not
for reasons of taste, but because of their experience with the Coca Cola brand.
10.
THE PLUS VALUE OF NEUROMARKETING
Neuromarketing can
enter in a product cycle in several places. First, it can be used as part of a
product design process. In this step, the brain's response can be used to test
and refine the product before it is launched. For example, this methodology is
widely used in food testing (yogurt, chocolate) at the level of pleasure
associated with taste, smell, texture, each aspect can be studied separately,
seeing which ones trigger more pleasure in the brain (SOUSA, 2017).
Second, it can be used
after the product is ready, the brain response being used to measure the
effectiveness of the promotion campaign. For example, the entertainment
industry has been used to evaluate the success of a sitcom pilot called Curb
Your Enthusiasm. It was found that the successful remembrance of its content
over a period of 3 weeks after viewing was correlated with the degree of activation
of the hippocampus during the viewing.
So, the more areas in
the brain are more active while watching the movie, it means it has a bigger
impact. This technique is also used to test movie trailers. That's why the trailers
have such a great impact on us, they are making us curios to see the movie, and
it's often a big difference between the feeling left after seeing the trailer
and the feeling the movie gives you (SOUTHERTON,
2011).
Finally, neuromarketing
techniques can be used to market segmentation, grouping consumers on the basis
of "similar purchasing drivers" or, more briefly, by their brain
model, and not just by traditional socio-demographic factors (age, gender,
income, education). Moreover, neuromarketing can be applied to the most
important marketing campaign: the political campaign. Studies have shown that
activation of the medial prefrontal cortex is associated with maintaining
preference for a candidate in response to the advertising campaign, while activity
in its lateral area of the prefrontal cortex is associated with changing the
preferred candidate (KUMAR, 2016)
11.
CURIOSITIES DECIPHERED BY
NEUROMARKETING:
a)
How
men’s do brains work when they see naked women in chocolate or car commercials?
It has been said that sex is selling, but neuro-studies show that things are
not so, because the central element of the spot becomes the woman, and the
viewer's brain no longer allocates resources to decode the message of his brand
or to keep the information about it. If the role that a woman plays is closely
related to the story of the spot and the message transmitted, the impact may be
positive because the brain records that information together (,
2015).
b)
Effects
on the brain of images with people who smoke and drink alcohol. On those who
are not smokers or alcohol consumers, the pictures have no effect. A study
conducted by the GSR on two groups of participants - consumers of Coca Cola and
non-users - showed that the advertising spot on the drink had no effect on
those who did not consume it. But the consumer group displayed a high level of
activation throughout the spot. On smokers or those who drink alcohol, the
effect is craving. The phenomenon occurs due to the mirror neurons, with the
role of brain-mimicking the action the participants see on the screen. Cerebral
response also occurs in the non-consuming population, but is not followed by
that craving - for them the reaction does not evoke any experience (ROBBINS, 2003).
12.
BENEFITS OF NEUROMARKETING FOR BOTH SIDES
Companies dealing with
the promotion of different solutions see the future of sales in the
neuromarketing, but there are consumers who are very skeptical about this
sector, believing that final decisions do not belong to them altogether. The
truth is that neuromarketing is only another method by which specialists can
find out exactly what attracts attention and what we really want, and if this
information needs to develop solutions that are more suitable for consumers
then all parties have something to gain. The products and services of the
future will be made according to all our expectations, and companies will
invest in product research and development where there is certainty that the
demand will be high (
Neuromarketing studies
are also very effective for companies. They allow the message to be optimized,
so that the impact is the expected one. For example, after studying a video, we
figure out which are the sequences that stir up the interest and which, on the
contrary, irritates people or frustrates them because they do not understand
the message (MORIN, 2011).
The effectiveness of the neuromarketing study
is also reflected in the sales figures of a brand. Thus, ROI (return of
investment) on the media budget will be much higher. However, sales of a
product are related to several factors, not just advertising: logistics,
product availability, price, and so on (NIKOLOPOULOU, 2016). Through the neuro-studies only some
of these variables can be tested. A study in Germany tested the impact of
coffee prices on consumers subconsciously and concluded that Starbucks demanded
little for their product (KOTLER, 2017).
13.
NEUROETICS OR ETHICS IN
NEUROMARKETING
Commercial Alert
(2003), an organization that aims to reduce the negative impact of advertising
on the consumer, believes that neuromarketing aims to find inside the skull a
button that activates buying. In terms of ethics, studies in Neuromarketing
will never allow individuals to manipulate the minds of consumers or to get
them to buy products that they do not need or do not like. Realistically, what
can be done is to improve the way companies create and analyze their
advertising messages, so they become more interesting, appealing and valuable
to the target audience. The goal is to make changes within companies and not
among consumers or their behavior (MADAN, 2010).
“The future of
neuroscience will see the fuelling of neuroscience with ICT and future
technologies. The robotics platform is a part of this, where neuromorphic chips
that function like the human brain or the mouse brain or like brain circuits.
This can be used, in the first instance, for brain simulation, but also for all
sorts of other application, such as like artificial intelligence (AI) and
neural networks. (FAUTEUX,
2019)”.
Nikki Westoby (2019),
Director of Neuroscience at Nielsen Consumer Neuroscience, the largest market
research company in the world, said recently in an article called The Future of
Neuromarketing that “Consumer neuroscience’s much-improved diagnostics capabilities
are rapidly making it an essential part of the creative process. Does it mean
that we have all the answers now? Of course is not true. Human beings are
complex. No single technology has a monopoly on the truth.”
In our study we decided
to analyze a time series that represents estimated total global
neurostimulation devices market from 2013 to 2024 (in billion U.S. dollars). It
was analyzed with Augmented Dickey-Fuller Test that shows the data was correct
estimated and this means that neuroscience will have a fabulous spread in the
future.
We even can create a
pretty representative regression model: R-squared takes the value 0.92, meaning
that with a 92% probability the model coefficients are well estimated. The
conclusion is supported also by the value of F test that is lower than 0.05.
Durbin-Watson shows that there is no autocorrelation between variables. The
trend is very well estimated. The p value for @TREND is 0.02< 0.05.
The coefficients for
intercept (C) and Share variable could be better estimated. Their values are
higher than 0.05. (Table1). In table 1 Share variable is estimated total global
neurostimulation devices market from 2013 to 2024.
Table1: Estimated
total global neurostimulation devices market regression model (Dickey-Fuller Test)
When we are talking
about the future of neuromarketing and what are the challenges that people have
to face, we may think about:
1) Transmit the value added of
neuromarketing: The insights obtained with neuromarketing cannot be obtained
otherwise. Also, the insights can be acted upon to improve the brand or
product, communication, purchasing experience, etc. There is still unawareness
on what neuromarketing can offer. Rigorous dissemination of neuromarketing
contributions is required.
2) Accessible: New laboratories that
include simple, easy-to-use technologies, pre-designed studies and decoding
algorithms can be used by any professional without a background in
neuroscience. In terms of prices, high quality professional labs are available
starting at € 8,000.
3) There are no B2C or B2B companies;
we are talking about H2H companies: Marketing is becoming more and more human,
not only focusing on the customer relationship, but on the person, with his
emotions and values. Therefore, it is necessary for marketing professionals to
have a holistic view of the human being. This is only achieved by integrating
neuromarketing techniques with other complementary research techniques.
4) The technological revolution is
here. To survive, we need to innovate: the customer wants innovation and wants
to be surprised. Neuromarketing brings innovations to market research
institutes and also to brands while accessing new consumer information.
5) Fight against the unethical attitudes
that generate the "fear" of neuromarketing: Since this is a new
field, there are false news about neuromarketing and not much information
overall. For example, some specialists defend the existence of the purchase
button in the brain, which could be a priori a good sales argument, but it is
unethical, it is not true and generates rejection from the society.
6) Searching for standards: As a new
domain, there are no standard values so that each neuromarketing
company uses its own values. Thus it becomes complex to compare results if you
switch among providers.
Technology
analysts mention that wearable revolution is close - in other words, wearable
technologies with biosensors. Nowadays, there are examples of such types of
devices: Fitbit, Xiaomi Mi band and the Apple Watch, which are designed
primarily to monitor physical status. However, although the quality of the
physiological signals currently recorded is not accurate enough to be used in
the neuromarketing environment, it is only a matter of time until the precision
of the equipment improves. Eventually, neuromarketing will cease to be used in
controlled contexts and will begin to be utilized massively, anywhere, by any
person, thanks to these devices.
Eventually, technology
analysts say the bearer's revolution is close - in other words, technologies
that can be worn with biosensors. Nowadays there are examples of such types of
devices: Fitbit, Xiaomi Mi and Apple Watch, which are mainly designed to
monitor physical activity. However, although the quality of recorded
physiological signals is currently not sufficiently precise to be used in the
neuromarketing environment, it is only a matter of time to improve the
precision of the equipment. Eventually, neuromarketing will cease to be used in
controlled contexts and will be widely used, anywhere, by any person due to
these devices.
14.
INSTEAD OF CONCLUSIONS: WHAT DOES
THE FUTURE PREPARE US FOR?
Neuromarketing is not
the only innovation that allows a better understanding of the consumer. Thanks
to technological advancement, marketers have access to a growing amount of
customer data, and the growing computational capacity allows them to be
analyzed to identify buying intentions. The American company Target has become
the target of critics after the New York Times reported a case in which
hypermarket statisticians identified the products that women buy in the first
month of pregnancy.
Another technology,
developed by Affectiva, allows computers to automatically evaluate people's
facial reactions and instantly understand their reactions to commercials and
other alike communications. Affectiva's representatives say that the growing
number of camcorder devices, from mobile phones to laptops, will make the
interpretation of a person's emotions easy to read in most moments.
In the future, smart
phones could allow companies to drive ads much more efficiently than today. A
patent demanded by Verizon's Mobile Phone Company shows how this system works:
for example, a couple begins to quarrel at the TV in their own living room. An
algorithm detects the domestic dispute, so the TV automatically selects an
advert for a local therapist specializing in couple issues for the next
advertising pause. As each of us produces more data, through search engines, social
networks, smart phones or intelligent sensors installed in shopping centers,
and computational capacity grows, companies will come to understand us much
better.
This progress is
promising to deliver multiple benefits: on the one hand, the general public
will have products carefully designed to meet its needs, and the natural and
human resources that have been missed today by unsuccessful products will be
used more efficiently. Today, statistics show that about 80% of new products
are failing in the first year of launch. Therefore, a better understanding of
consumers and the refinement of marketing techniques could lead to wiser, more
efficient and more friendly nature.
The effects of
neuromarketing have not yet been debated, so it is not clear whether it is
ethical or not. Neuromarketing is like a Pandora's Box, but it's not
necessarily bad. Neuromarketing should be treated with caution, because we do
not know all the consequences it may involve, there are many confusions and
misunderstandings, many expectations, many challenges, but also many boundaries
related to the human brain.
Neuromarketing is
mostly used in advertising. And in advertising you cannot respect the concept
of privacy when you are in an agency of this type and you must use neuromarketing
for a particular product. Communication is not a science, it is a dialogue.
Brands should talk to consumers, and in branding people need to be involved.
This communication must be seen in the behavior of the consumer, that he
returns to the product, this being the essence and promise of advertising. If
the company wants to communicate a message to the customer, then it has to let
him know it.
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