Neural Sense Introduction to Neuromarketing


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Let us introduce you to the world of Neuromarketing

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Neural Sense Introduction to Neuromarketing

  1. 1. Neural SenseNeuromarketing Fundamentals
  2. 2. Agenda: The Brain & Marketing• Background – Why the brain in Neuromarketing – Anatomy for Marketers – Emotions & Reason – Decision-making – Science as Art DR• Advent of Neuromarketing – Traditional Marketing Research pitfalls – Neuromarketing’s Relevance – Techniques • EEG, fMRI, psychophysiology, FACS, eye tracking• Some Case Studies
  3. 3. BackgroundWhy the Brain in Neuromarketing?
  4. 4. Why the Brain in Neuromarketing• The age of neuroscience (The age of the brain)• Penetrating major fields of business, computers, biology, engineering and the social sciences• Is allowing the broader dissemination of the scientific method (into marketing)• Brain science provides unique, powerful and revealing insights• Field of growing innovations
  5. 5. Why the Brain in Neuromarketing
  6. 6. BackgroundAnatomy for Marketers
  7. 7. Anatomy for Marketers• Tripartite brain• Cortex and Limbic System• Cortex has 4 lobes (Frontal, Temporal, Parietal and Occipital)• Frontal – Decision making, planning, concentration, attention, reasoning• Temporal – Auditory processing, auditory sensory integration• Parietal – Visual Spatial processing• Occipital – Visual Processing, mirroring, visual analysis
  8. 8. Limbic System - brief Memory formation and emotional Meaning memory processing with Temporal lobe Emotional processing, emotional intensity andemotional learning center
  9. 9. The Amygdala
  10. 10. BackgroundEmotions and Reason
  11. 11. Emotion vs Feelings • 95% of Mental Activity is Subconscious • Emotions = Subconscious • Feelings = Cognitively Filtered • Traditional Research only accesses FeelingsIs it prudent to base decisions based on 5% of our mental activity?
  12. 12. Fact: Emotion Sellson 880 UK Case Studies – IPA Emotional Messages Trump Rational 880 U.K. Case Studies Effectiveness Awards Ones • “Soft Sell” can reduce price sensitivity • Enduring sense of brand differentiation Source: IPA Effectiveness Awards
  13. 13. Emotional Processing
  14. 14. Emotions and Feelings• Social Sciences - theoretical distinctions between them• Supported by Neuroscience• Differentiation between them can help guide hypothesis and target responses
  15. 15. Emotions• Low Order• Predominantly Limbic in origin• Raw• Main categories – Anger – Fear – Happiness – Disgust – Sadness – Neutral
  16. 16. Feelings• Higher Order• Cortical feedback• Cortex emotional inhibitory function• Valenced emotions – Range – Intensity – Meaning• E.g.. Irritated……annoyed…..angry…..raging
  17. 17. BackgroundDecision Making
  18. 18. Decision-making• Biology of decision making – Frontal lobe networks and emotional systems – Dopamine reward system – Excitement in the body and arousal systems (Sympathetic activations)• Psychology of decision making – Social Psychology – Reasoning theory – Game theory – Memory
  19. 19. Biology of decision-making• Dopamine system NB• Often examines emotional antecedents – emotional valence, autonomic arousal• Classical conditioning models (Brain reinforcement – repetitions, schedule (bordering on psychology)
  20. 20. Decision Making Processing
  21. 21. Psychology of decision-making• Communicator effects• Message effects• Probability Heuristics• Hindsight bias (false memories and change blindness)• Cognitive Dissonance (cognitive-emotive dissonance to change attitudes…)• Foot-in-the-door-technique• Bait and switch• Altruism• Tit-for-tat and social reciprocation
  22. 22. Emotion and Cognition?• Cognition – Gestalt thinking – Memory – Attention – Attribution• Cognition does not equal Reason or Emotion. Don’t be mislead. It is involved in the brains information processing• Neuromarketing literature mistake – cognition = reason
  23. 23. BackgroundScience as Art
  24. 24. Science as Art• “Science may be described as the art of systematic over-simplification” – Karl Popper• “In so far as a scientific statement speaks about reality, it must be falsifiable: and in so far as it is not falsifiable, it does not speak about reality” – Karl Popper
  25. 25. Science as Art• Scientific endeavors allow for much creativity• Interdisciplinary – bringing psychology, marketing, economics, neurology, neuroscience, psychiatry and biomedical- engineering together• Allows us to test intuitions, visions and innovations• Science has provided the greatest number of innovations to date than any other endeavor
  26. 26. Science as Art• Scientific Method is NB – Reliability – Validity – Replicabality• Science is always updating and changing• Statistical Power
  27. 27. Advent of Neuromarketing Traditional Research Pitfalls Neuromarketing’s Relevance
  28. 28. Traditional Research Pitfalls• Tendency towards pleasing the interviewer – What answer would a good person give? Or – What answer does the interviewer want to hear? (Hawthorne/Halo effect)• Relies heavily on rationalisation of emotions• Not always accurately interpreted
  29. 29. Traditional Research Pitfalls• When testing advertisements – Specificity of emotional response – Intensity of response – Inaccuracy of self-report• Product Design/Packaging – Conscious perceptions less than 5% of full perceptual experience
  30. 30. The Relevance of Neuromarketing• Better assessment of marketing’s “holy grail” i.e. customer emotions• More scientific• Gets behind key driving forces behind decisions/behaviour/motivation/”buying”• Improve Marketing ROI through more accurate spending
  31. 31. Advent of Neuromarketing Neuromarketing Techniques
  32. 32. Neuromarketing Techniques• Techniques are hypothesis driven• Employs objective methodologies• Takes out human error – Researcher and participant• Offers blinding, control and replication• Can be simple and inexpensive techniques to more complex and expensive techniques
  33. 33. Neuromarketing Techniques• Psychophysiological measures – Heart Rate (variability) – Skin Conductance – Temperature – Breathing rate• Neurological Measures – Electroencephalograph (EEG) – Functional Magnetic Resonance Imaging (fMRI) – Positron Emission Tomography (PET)
  34. 34. Neuromarketing Techniques• Questionnaires – Social Psychology measures – Measures of belief systems – Metacognitions – Memory and attention checks• Other Neuromarketing measures – Facial Action Coding – Eye-tracking – Cognitive Task Analysis
  35. 35. EEG• Surface readings of the brain• Good temporal reliability, poor spatial specificity• Cannot always pinpoint• Difficulty establishing valence• Best used in conjunction with other measures• Not very expensive
  36. 36. fMRI• Poor temporal reliability, good spatial specificity• Good at pinpointing areas of activation in the brain• Need 13-15+ for good statistical power. Most fMRI Neuromarketing experiments to date have used less (Differences in human brains therefore not accounted for?)• Expensive
  37. 37. Psychophysiology• Fair temporal reliability good emotional intensity responses and autonomic measure• Not expensive• Reliable measure of contradictory conscious/unconscious responses
  38. 38. Facial Coding• Charles Darwin 1872 – “The Expression of the Emotions in Man and Animals”• Facial Expressions are – Universal – Spontaneous – Abundant
  39. 39. How Facial Coding Worksw Facial Coding Works Facial Coding is Transparent © 2011. All Rights Reserved. • We’re all facial coders • Facial Expressions can be shown • 43 Facial Muscles • 23 Action Units • 6 Core Emotions al coding is transparent facial expressions can be shown
  40. 40. Testing Options / Sample Sizes • 30 + • 50+ Focus Group Ethnographic Online IDIs • 100- • 50 + 150
  41. 41. Data-driven Outcomes• Most outcomes are quantitative and statistical• Statistical modeling allows for correlations, predictions, replication, hypothesis testing and comparison• Lots can be done with the data
  42. 42. Neuromarketing in Action Case study samples
  43. 43. Brands Using Neuromarketing
  44. 44. Campbell Soups Example
  45. 45. fMRI Studies• Examine statistical outputs not just visual• Look at comparative activation areas across the brain to examine areas of most activation (statistical significance) to make predictions and correlations• Video’s can be nice for presentation value – often best to produce a combined image (on a brain atlas)
  46. 46. fMRI Case 1
  47. 47. fMRI Case 2
  48. 48. Research on New Scientist
  49. 49. Research with New Scientist
  50. 50. Facial Coding in Action: Establishing Priorities • Doctors discussed which of six claims in a sales script were most important to them, but their emotional output revealed different priorities: Claim 1 Claim 2 Claim 3 % Doctors Cited % Doctors Cited % Doctors Cited 31% (1st Place) 20% (T-2nd Place) 5% Last Engagement Engagement Engagement 9% 22% 22%ResponseNo Response 78% 78% 91% 5th Place T-1st Place T-1st Place
  51. 51. Facial Coding: Greater Data Separation• Loading Up, Paying Up, or Hitting the Open Road? Which is best?• Testing different logo designs C Impact• Rational response gives less data separation• For making the right choice C – FACS Pays Off B A Appeal Emotional A B Rational
  52. 52. Identifying Emotions Second-by- SecondNeuromarketing is about testing your efficacy attaking the customer through a story & creating an emotional connection
  53. 53. On-Emotion Insights Anxiety 4% Frustration 28% Sadness 14% Dislike 11% Skeptical 0% Surprise 3% Micro Smile 18% Weak Smile 10% Robust Smile 2% True Smile 10% 0% 5% 10% 15% 20% 25% 30% When testing a TV spot promoting a health drink, the spot brought out more than twice thenormal levels of sadness upon initial viewing, and was off-emotion. Why? The target market felt guilty….
  54. 54. Neuromarketing Conclusions
  55. 55. Neuromarketing – in its teensNeuromarketing is still a growingfield• Many conclusions are being drawn without proper scientific foundation – E.g. “iPhone Love”• Industry Standards still to be set• Popularity is growing fast
  56. 56. Finding the Buy Button• Is there a Buy Button?• Is there a Buying Cognitive Process?• Are there Cultural Buying Processes?• Emotional process/story – Create memorable & positive brand associations
  57. 57. Additional ResourcesNeural Sense@NeuralSenseNeuralsense.wordpress.comEmotionomicsBuyology