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Functional magnetic resonance imaging, or fMRI, works by detecting the changes in blood oxygenation and flow that occur in response to neural activity when a brain area is more active it consumes more oxygen and to meet this increased demand blood flow increases to the active area. FMRI can be used to produce activation maps showing which parts of the brain are involved in a particular mental process.
MindSign Neuromarketing
It is non-intrusive, and entirely passive Its temporal resolution enables causal connections between continuous stimuli and responses It is scientifically robust It is fast It is low cost Consumers like it Recordings can be obtained in a naturalistic environment
Starting in 2004, Martin Lindstrom and Oxford University researchers began a $7 million study of more than 2,000 people. They studied brain activity when exposed to product placement, subliminal messages, brand logos, health and safety warnings, and provocative product packaging. Presented in his book, Buy-ology, Lindstrom argues that almost 90% of customer purchasing is driven by unconscious processing
Eye Tracking & EEG: Where do eyes fixate and what do they trigger?
Eye Tracking
Gaze plots shows the order of eye fixations to better identify search patterns
http://www.sutherlandsurvey.com/Column_pages/Neuromarketing_whats_it_all_about.htm
A study by Alexander Felfernig et al., tested web buying behavior by presenting a series of tents in a different sequence to see which order was most effective. Each tent had unique characteristics.
What they found was that rather than sequencing, it was first in order that was most important. The first presented tent was chosen 2.5 times more often than any other.
Although people would always come up with some explanation of their choices, the first was preferred in any rearranged sequence.
http://www.futurelab.net/blogs/marketing-strategy-innovation/2009/09/order_effect_affects_orders.html
When people are exposed to a stimulus (product, message, etc.,) the brain reacts spontaneously, usually outside our conscious awareness, and reflects our attentional and emotional predisposition
Purchase decision weighing benefits and risks Nucleus accumbens: part of the dopamine pleasure circuit involved in reward anticipation Anterior Insula: associated with risk aversion; activation involves loss prediction, pain, anxiety, disgust;
A study at Carnegie Mellon University presented participants with $20 to spend on a range of 80 products that, if they bought any of them, would be shipped to them. If they made no purchases they would keep the money. For each item the nucleus accumbens (anticipation of reward) and insula (anticipation of risk) were monitored ; the relative activity reflected the perceived gains and losses The activation was a good predictor of actual purchases
Knutson, B., Rick, S., Wimmer, G. E., Prelec, D., & Loewenstein, G. (2007). Neural predictors of purchases. Neuron, 53(1), 147-156.
In 2007 Sprint advertised a special deal for new customers. While this may have been attractive to new users, it angered and alienated their current loyal customers.
Paying $99 dollars rather than $250 set off the brains reward circuit for new customers, but conversely activated the pain circuits!
http://www.neurosciencemarketing.com/blog/articles/how-to-increase-customer-pain.htm
Mirror neurons: Monkey see, monkey do (or, youre fine, how do I feel) Newborns as young as 72 hours old can imitate some facial expressions A mirror neuron is a neuron which fires both when an animal performs an action and when the animal observes the same action performed by another mirror neurons have been found in the premotor cortex (motor behavior) and the inferior parietal cortex (distinguishing self/other) These appear to be involved in understanding intentions of others, empathy, predicting actions of others, and social bonding (e.g., I want what you have)
Paul Slovik at the University of Oregon studied the emotional basis of donations
He presented Ss with pictures of sad and malnourished children with the result of each person, on average donating $2.50 to Save the Children
Alternately he provided Ss with considerable statistics about starving children more than 3 million starve in Malawi, 11 million in Ethiopia, etc. However the donation was 50% lower Statistics dont activate our moral emotions
Animal Allies Ad
Another group were given a messy crumbly cookie to eat . Hidden camera recorded those in the scented room were more fastidious.
None of the groups were aware of the influence of scent on their behavior. Light floral scent was pumped into one room and not another where Nike running shoes were shown. 84% Ss preferred the same running shoes theyd seen in the floral room, and estimated that they were $10 more expensive Grass fragrance was sprayed into a home improvement store. 49% of all customers surveyed before and later said the staff appeared to be more knowledgeable about the stores products
Ss did not consciously feel more positive or negative following the expressions, but
Smiling doubled the amount of money people are willing to spend on a beverage (twice as much as for frowning). They also poured significantly more drink from a pitcher and drank more
http://www.neurosciencemarketing.com/blog/articles/smiles-boost-sales.htm
The study
30 Ss, men & women, democrat & republican randomly assigned to 2 groups Obama Treatment group watched 4 ads emphasizing hope & positive outcome from Obama, and four ads by McCain emphasizing fear & negative outcomes if Obama were elected. McCain Treatment group reverse of the above Task: Ss had to identify the real Obama & McCain in the ads from lookalikes Images were preceded by subliminal positive words (leader, honest, winner) and negative words (Loser, risky, danger), or neutral If they had a positive view of a candidate the positive priming would facilitate facial recognition, while negative priming would inhibit recognition (and vice versa if they had a negative attitudes toward the candidate) The real question was how much hope and fear appeals affected recognition and therefore micro-attitudes about candidates
Brain worms and sticky music: I just cant get you outta my mind
Nearly 98% of people have had tunes stuck in their heads: lyrics stuck 74%, commercial jingles 15%, instrument tunes without words 11% Episodes last over an hour and are frequent for 62% of young adults They tend to irritate & annoy women more than men Nonetheless, they tend to prime the brain for product recognition after we may have forgotten the source Head-on commercial Head on revised HTC commercial
Chilis (Baby Back Ribs) Who Let the Dogs Out? We Will Rock You Kit-Kat bar jingle Mission Impossible Theme YMCA Whomp, There It Is The Lion Sleeps Tonight Its a Small World After All
http://www.business.uc.edu/earworms/
More activation
Less activation
As expected, after viewing ads, Ss were more responsive to their preferred candidate, and less to the other. Also paid less attention to the other after viewing negative ads But
Negative ads also subtlely diminished their responsiveness to their preferred candidate as well
http://lucidsystems.com/blog/2009/03/our-study-of-hope-and-fear-in-political-advertising-released/
With all these adverse ad campaigns, why have global consumers continued to smoke over 5.7 trillion cigarettes annually?
About a third of males smoke globally 15 billion cigarettes sold daily (10m a minute) Smoking related diseases affect 438,000 Americans annually
However, the unbranded images (e.g. cowboy) activated more cravings among smokers than the branded images (e.g. cigarette packs).
The brain scans revealed increased brain activity when exposed to cigarette packs as well as the Western imagery in a small region of the brain called the nucleus accumbens, which controls pleasures and addictions.
When people arent consciously aware they are being exposed to advertising message, they let their guard down.
Cigarette warnings, no matter how gruesome, actually stimulated the nucleus accumbens (Craving spot) Overt, direct, visually explicit antismoking messages did more to encourage smoking than any commercial promoting smoking could have Subsequent studies with subliminal images only related to cigarette commercials elicited the same responses as the actual commercials In 1997 a British tobacco brand, Silk Cut, was portrayed against a purple silk background in every ad. Following an advertising ban, billboards only showed a logo-free swath of purple silk. 98% of consumers identified the BB related to Silk Cut although the could not say why
In 2004 P. Read Montague of Baylor College of Medicine conducted a fMRI on 67 people repeating the Coke Pepsi Blind Taste Test. Following tasting of each drink, the reward or pleasure centers of both groups of subjects lit up and showed about equal preference for the two brands When the test was repeated and participants were told which brand they were drinking, 3 out of 4 said they preferred Coke over Pepsi. In addition to the pleasure centers, the memory regions of the medial prefrontal and hippocampus showed broad association to Coke
Experience with ads, images and experiences with Coke were so powerful that the associations and memories overrode the actual taste of Pepsiagain.
Once people are willing to pay a certain price for one product, their willingness to pay for other items in the same category is judged relative to the first price (anchor) (e.g., pay more for keyboard than trackball). Initial prices are arbitrary and can be influenced by responses to random questions. But once established in our minds, they shape what we are willing to pay for an item and related items. Implication: What is the purpose of manufacturers suggested retail price (MSRP) for cars, lawnmowers, and coffeemakers, or real estates statements on local housing prices? Just a price tag is not an anchor but if we buy or seriously think about buying, the decision becomes out anchor for that category. Example: people who move from one city to another remain anchored to the prices they paid in the former city. They dont adjust their spending to fit the new market.
Ariely, D. (2008) Predictably irrational. Harper Collins, New York.
What I tell you three times is true (Lewis Carroll) The Frequency-Validity Effect
If false information is repeated often enough, we begin to believe it Over time when people remember the core piece of information but not the details, they tend to think of it as true
If repeated false information goes unchallenged, be finally accept hearing it and therefore become primed to accept it
The more we hear it, the more we think there must be something to it It tends to be most effective for positive points, when brief, with periods of delay, and strongest for the first 10 exposures
(Brown & Nix, 1996)
So what?...
Popularity of brain research applications in many fields is growing rapidly There is some interesting evidence of brain processes reflecting consumer behavior Some critics strongly question the evidence, accuracy, and methodology Ethical issues are just beginning to emerge Competition will continue to drive exploration of methods that may provide advantage Promotion of neuromarketing has become a promotable business in itself
The Ethics of Neuromarketing Private research that promotes NM does not require peer review, results are proprietary, results are usually framed in ROI not comprehensive, and promises exceed evidence. Should marketers have access to our unconscious minds? Should the technologies be restricted to adult consumers? Who should determine standards & regulations? Should businesses be required to disclose use? How can businesses be protected from faulty claims and large expenditures of money?