Dr. Carl Marci, chief neuroscientist at Nielsen's presentation from the Digiday Retail Summit - Laguna Beach, CA on January 25, 2016.

1. CONSUMER
NEUROSCIENCE
BRICKS AND CLICKS:
EMOTIONS IN RETAIL
Digiday Retail Summit
Laguna Beach, CA
January 25, 2016

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2
THE HUMAN BRAIN IS
COMPLEX

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THE NEUROSCIENCE OF EMOTIONAL ADS
Top Ads Have Greater Brain AcMvity in Key Areas Related to InformaMon Processing
Study in partnership with Time Warner Media Lab & Temple University Decision Neuroscience Team
Hippocampus
Amygdala
STG
LPFC
Memory
Formation Emotion
Generation Sensory Integration Reward Evaluation

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4
PERSONAL RELEVANCE IS KEY
Top Ads Also Generate Greater Brain AcMvity in Area Related to Personal Relevance

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5
HOLIDAY TRENDS FROM 2015 BRICKS BEAT CLICKS:
• ~90% of consumers used brick and mortar
retailers
• ~80% cited seeing, touching, trying items,
and the ability to browse and buy the item
right away as the major reasons
DIGITAL ROLE:
• ~60% reported using mobile phones while
shopping in-store
• Price comparisons and reading reviews
most common use
• ~50% reported researching pre-purchase
CLICKS PLUS BRICKS:
• ~30% reported using “click and collect”
resulMng in ~70% buying addiMonal items
Interna'onal Council of Shopping Centers, 2016

6. THE EVOLVING PATH-TO-
PURCHASE What Was Linear is Now Non-Linear

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The Linear Path is Now a Roller Coaster
Ride

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Pre-Tail
Linkage to Engaging
MarkeMng
CommunicaMons to
Generate EmoMonal
Response and Build
Need States for Brand/
Product
Retail
Shelf Layout
OpMmizaMon & Package
Design to Guide
Shoppers Easily to
Brand/Products by
Triggering EmoMonal
Drivers at POP
Post-Tail
Customer Fulfillment
Related to Brand/
Product Experience and
Re-Experience of
MarkeMng Material and
PotenMal Social Media
Use

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Loyalty/Habit Loop
Considera'on Loop
NEED STATE ACTIVATION
CONSIDERATION EVALUATION
ACTION
BOND
CONSIDERATION EVALUATION
EXPERIENCE
PURCHASE
Adopted from D. Edelman. Harvard Business Review. Branding in a Digital Age. December 2010.

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10
Loyalty/Habit Loop
Considera'on Loop
NEED STATE ACTIVATION
CONSIDERATION EVALUATION
ACTION
BOND
CONSIDERATION EVALUATION
EXPERIENCE
PURCHASE
Adopted from D. Edelman. Harvard Business Review. Branding in a Digital Age. December 2010.
BOND
ADVOCACY
HABITUATION Advocacy Loop

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11
PUT EMOTIONS AT THE
HEART
OF YOUR P2P STRATEGY

12. FOCUS ON BRICKS
Understanding the Brick and Mortar Environment

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13
SHOPPER JOURNEY IN RETAIL
SEARCH
DECIDE
INTERACT
SELECT
NAVIGATE

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IN CONTRAST, TIME SPENT IN STORE ONLY ACHIEVED A .33 CORRELATION TO SALES
$0
$50
$100
$150
$200
Amount Spent in Big Box Retailer ($)
EmoIon Score During Key Phases of Purchase Journey
CorrelaIon of EmoIon to Sales (+0.59)

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EMOTIONAL JOURNEY IN-STORE
1. Entrance
5. Exit
2. The hard work starts
3. Success is building
4. Checkout is rewarding
EmoMonal Resonance In-Store
Time In-Store
OpMmal Reward
Pakern in
Product
Category B
Sub-OpMmal
Reward Pakern
in Product
Category A
Checkout
Frequently Shows
High Levels of
EmoMon
EmoMons are High
Entering the Store
Coming off the
Street Prior to the
“Work” of
Shopping

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OPTIMAL VS. SUB-OPTIMAL JOURNEYS
end caps
rewards foods
free samples
congestion
frustration
EmotionalJourney
Time in Store Across Categories
rewards/promotions
ease of navigation
end caps
congestion
frustration

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VISUAL HOT
SPOTS AND
BLIND SPOTS

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COMPARING SHELF LAYOUT
2 door beer 5 door beer
More areas of high
emo'on with 5 door
High EmoIon
Low EmoIon
(Emo$ve
Disconnect)

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►
IN-STORE POINT-OF-SALE MATERIAL

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►
EMOTION OF BOY DRAWS ATTENTION

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►
4
5 3
1
2
6
1
4
2 5
3
6
SIMPLE VISUAL PATH IS FASTER TO CONSUME

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High EmoMon
Low EmoMon
High CogniMon
Low CogniMon
4
5 3
1 2
6
1
4
2
5
3
6

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Anything but “soothing/nurturing”
• An overwhelming sea of complexity
• Confusion and FrustraMon
General naviga$onal disorienta$on
experienced by many…
“They don’t have chicken noodle…”
a 10 year-old girl said to her dad
who had sent her to the condensed secMon
IN-STORE DID NOT MATCH IN THE HOME

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Old Design New Design
RE-DESIGNING AN ICONIC LABEL
Changes included:
• Adding steam
• Enhancing the bowl
• Changing the font
• Removing logo border
• Curving edges

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66%
39%
65%
77%
FixaMon DuraMon/Time Biometric Impact
Impact of New Can Design
Old Can New Can
EYE TRACKING VS. EMOTIONAL IMPACT
FixaMon Time EmoMonal Impact

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Benefit clusters made: Different
varieMes of soup were color-
coded to help consumers idenMfy
them more easily
Steam was added: Biometrics
indicated that consumers had a
greater emoMonal response if the
soup appeared warm
Spoon was removed: Biometrics
demonstrated that the spoon
generated likle emoMonal
response
Bowl was updated: To convey
contemporary feel.
Logo was moved:
Eye tracking demonstrated that
when the logo was placed at the
top, it drew akenMon away from
other elements, and the red label
made it difficult to differenMate
between products
Reprinted from The Wall Street Journal
Old Label
New Label
NOT JUST THE PACKAGE

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New Design
CHANGES TO THE AISLE DESIGN
Old Design

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NEW DESIGN MAKES SHOPPING SOUP EASIER
Look at Soup OpMons Directly Go to Product of Choice Take from Maximizer

29. CLICKS GROWING FASTER
THAN BRICKS?

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DIGITAL AGE

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COMMUNICATING IN
THE DIGITAL AGE
31
Bar is Higher Than Ever
• More distracMons than ever as
plaporms and content
proliferate
Shorter A]enIon Spans
• Research suggests shorter
akenMon and reduced memory
in our digital lives
EmoIons & Non-Conscious Ma]er
• Consumer neuroscience is key
to creaMng breakthrough ads

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32
SHOPPING ONLINE IS
MORE CONVENIENT,
LESS EMOTIONAL

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SEARCH & NAVIGATE ONLINE: UNIQUE CHALLENGES
2
6
5
4
3
1

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NAVIGATING SHOPPERS TO PURCHASE
OLD DESIGN NEW DESIGN

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All of the time
23%
Often
30%
Sometimes
38%
Rarely
7%
Never
2%
Rarely or
Never 9%
USE OF
SMARTPHONES IN
STORES

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SMARTPHONES LOWER FRUSTRATION
You’re at snacks
Coca-cola 12-pack
Fruity Pebbles
ACT Popcorn
Campbell’s Tomato Soup
Clorox Wipes
V8 Fusion
Marie Callendar’sPot Pie
Honey Bunches of Oats
Shopping list
Smart Phone Users Non-Smart Phone Users
40% Lower on FrustraIon
During Search
Smartphone Users Non-Smartphone Users

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SMARTPHONE LISTS APPS
vs.
Smartphone Lists

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Facebook
Twiker
Pinterest
Instagra
m

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A STORE ABOUT
EXPERIENCES

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CONCLUSION

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THANK YOU!