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Material how -apply -neuromarketing

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Material how -apply -neuromarketing

  1. 1. How to apply neuromarketing? Leon Zurawicki Profesor del Departamento de Gestión y Marketing de la Universidad de Massachusetts- Boston. Experto en comportamiento del consumidor Docente encargado:
  2. 2. INTRODUCTION
  3. 3. Zurawicki Lima 10-10-2014 3 http://www.springer.com/business+%26+management/marketing/book/978-3-540-77828-8
  4. 4. Zurawicki Lima 10-10-2014 4 What is neuromarketing? What does it mean? New science which represents a mixed bag of the most advanced high-tech methodologies but also using Long-established techniques (such as EEG) and bio- feedback recording physiological functions (some purists exclude it from neuromarketing). Hence, a diverse field and like the “traditional” can be applied in the observational and experimental (behavior) format. Often juxtaposed to the survey method so popular in the classical consumer research. The quality of neuro lies in that the responses obtained are not biased as might be the case of verbally expressed judgments (principle of the “lie detector”—remember objections to its validity). They might be also more accurate as well. (temperature analogy).
  5. 5. Zurawicki Lima 10-10-2014 5 What is neuromarketing? Blend of techniques documenting neuronal reactions in the brain/rest of the body to assure deeper insight relative to traditional research methods. Numerous studies on brand significance, perception, preference, cognitive processing, persuasion . Examples: research on the effectiveness of advertising, product attributes and positioning, consumer satisfaction.
  6. 6. Zurawicki Lima 10-10-2014 6 Neuromarketing in a broader context Neuroscience adds to the understanding of: • What makes us human • How we are conditioned to be who we are It is not a philosophical consideration, everything we do in life represents a form of consumption. Better understanding of the human condition leads to a better grasp of the consumer behavior. Marketing is not the only discipline benefitting as we learn why we are competitive, power thirsty, wish to win, altruistic, moral, lazy etc. These forays are useful in education, management and political science.
  7. 7. Zurawicki Lima 10-10-2014 7 In order to advance, marketers and neuroscientists need to communicate better with each other. Typically, they do not know well enough about their respective disciplines. That impacts 2 aspects: • Legitimacy of research questions/hypotheses • Suitability of the methodology/technology used
  8. 8. Zurawicki Lima 10-10-2014 8 Today, approximately 200 (and more to come) companies worldwide conduct neuromarketing research for the clients. Most are using EEG, biometric devices and eye-tracking. Advances in medicine and other fields produce better technologies to be applied also in social and behavioral sciences (for example, the voters’ behavior). Two-dimensional progress : 1/ greater accuracy, 2/ portability (i.e. escape from the lab) Neuromarketing helps better understand the nuances of cognitive processing (fluency, effort, credibility) AND Neuromarketing promises to measure the unconscious processing. People do not always interpret their emotions accurately and may not even be aware of them (no feelings).
  9. 9. Zurawicki Lima 10-10-2014 9 NEUROMARKETING PRODUCES NEW KNOWLEDGE IN 2 WAYS • Shows how the stimuli affect nervous system in a pattern typical for all consumers • Shows the individual and group differences suggesting new clustering formats
  10. 10. Zurawicki Lima 10-10-2014 10 NEURO—not for marketers alone Neuropolitics Neuroaesthetic Neurolinguistics Neuropedagogy
  11. 11. NEURO VS. TRADITIONAL METHODS – USING SEPARATELY OR IN CONJUNCTION?
  12. 12. Zurawicki Lima 10-10-2014 12 What do we call “traditional” research methods? Today’s marketing research technology uses: • video cameras • ability to collect data on shopping patterns, • web browsing • texting • word mining • tracking smart phone usage and produces a lot of big observational data which if used intelligently offers a lot of valuable info suitable for prospecting, profiling, persuasion and customization.
  13. 13. Zurawicki Lima 10-10-2014 13 Jointly or separately? The answer is a function of the research questions If the question is clear-cut and relatively simple, even small-scale neuro might be sufficient (at the risk of defying the laws of statistics) If it is more complex, then one method should complement the other: neuro would tell you that a positive/negative reaction is happening but the researcher is not sure what this is and in response to specifically what—more background information should be collected through traditional questioning
  14. 14. Zurawicki Lima 10-10-2014 14 Fast changing reactions
  15. 15. Zurawicki Lima 10-10-2014 15 What if both methodologies produce similar results (Millward Brown case of cleaning product TV ad)? Greater assurance but is it worth additional money and for which part of the study? Is the cost a primary determinant? Not only, there are many technicalities which favor neuro over traditional and vice versa. There are many practicalities as well. Example of the fast changing environment and strong involvement (watching a movie, playing a computer game) would favor neuro Jointly or separately?
  16. 16. Zurawicki Lima 10-10-2014 16 Traditional is not in opposition to the other. They are complementary. Neuro is not going to substitute the traditional. All the issues of importance in the research plan need to be scrutinized as to which approach may offer the relevant answer. Often before starting a study/experiment the researchers have to learn more to figure out how to structure the project= what are the issues here. This typically will have to be done via traditional approach (e.g. focus group). Finally, to verify outcome/recommendation traditional methods of data collection need to be used (buying intentions, recommendations, sales data etc.) Jointly or separately?
  17. 17. Zurawicki Lima 10-10-2014 17 In sum: Neuromarketing techniques need not be used to address same problems the surveys do. Best suited to examine the “hidden” issues. Also, applicable to study certain audiences: small children (toys, watching TV shows). Surveys should be avoided when the quality of responses appears doubtful.
  18. 18. ARE SPECIFIC NEURO METHODOLOGIES SUITABLE FOR SPECIFIC PROBLEMS: WHY YES/NO?
  19. 19. Zurawicki Lima 10-10-2014 19
  20. 20. Zurawicki Lima 10-10-2014 20
  21. 21. Zurawicki Lima 10-10-2014 21 YES but—the answer applies to traditional marketing research as well. Neuroscientific methods can be exceedingly complex TOPOGRAPHY OF THE BRAIN FUNCTIONS
  22. 22. Zurawicki Lima 10-10-2014 22 Construct/Process Sample Brain Areas Key References Ambiguity Insular cortex, Parietal cortex Krain et al. 2006 Anger Lateral Orbitofrontal cortex Murphy et al. 2003 Anxiety Amygdala–prefrontal circuitry, Inferior Frontal gyrus (Brodman Area 45), Ventromedial Prefrontal cortex Bishop 2007, Mujica-Parodi 2007, Wager 2006 Attention Right Frontal and Parietal cortices and Thalamus Coull et al. 1998 Automaticity Frontal and Striatal cortex, Parietal lobe (Deactivation) Kubler et al. 2006 , Poldrack et al. 2005 Calculation Anterior Cingulate cortex, Prefrontal cortex limbic system (mainly anterior cingulate cortex and amygdala) Ernst & Paulus 2005, McClure et al. 2004b Cognitive Effort Dorsolateral prefrontal cortex, Parietal cortex Owen et el. 2005, Linden et al. 2003 Competition Inferior parietal cortex, Medial Prefrontal cortex Decety et al. 2004 Consciousness Parietal and Dorsal Prefrontal cortex, Striate cortex, Extrastriate cortex Rees et al. 2002 Cooperation Orbitofrontal cortex Rilling et al. 2002 Disgust Insular cortex Britton et al. 2006, Lane et al. 1997, Murphy et al. 2003, Phan et al. 2002 Displeasure Amygdala, Hippocampus, Insular cortex, Superior Temporal gyrus Britton et al. 2006, Casacchia 2009 Distrust Amygdala, Insular cortex Winston et al. 2002, Dimoka 2010 Emotion in Moral Judgment Medial Prefrontal cortex, Posterior Cingulate, and angular gyrus Greene et al. (2001) Emotional Processing Anterior Cingulate cortex, Medial Prefrontal cortex (Emotional Information- dorsal frontomedial cortex) Damasio 1996, Ferstl et al. 2005, Phan et al. 2002 Envy Anterior Cingulate cortex Takahashi et al. 2009 Fear Amygdala LeDoux 2003, Murphy et al. 2003, Phan et al. 2002 Frustration Right Anterior Insula, Right Ventral Prefrontal cortex Abler et al. 2005 From: Dimokia 2012
  23. 23. Zurawicki Lima 10-10-2014 23 Habit Basal Ganglia, Medial Prefrontal cortex, Medial Temporal lobe Graybiel 2008, Salat et al. 2006 Happiness Basal Ganglia (Ventral Striatum and Putamen) Murphy et al. 2003, Phan et al. 2002 Hate Medial Frontal gyrus, Right Putamen, Bilaterally in Premotor cortex, Frontal Pole and bilateral Medial Insula, Right Insula, Right Premotor cortex , Right Fronto- Medial gyrus Zeki and Romaya 2008 Information Processing Anterior Frontal cortex, Lateral Prefrontal cortex, Medial Orbitofrontal cortex Hippocampus, Amygdala (Emotional Information- Dorsal Frontomedial cortex) Dimoka et al. 2008, Elliot et al. 1997, Ferstl et al. 2005 Intentions Ventrolateral Prefrontal cortex, Brodmann Area 47 Dove et al. 2008, Okuda et al. 1998 Jealousy Left Prefrontal cortex Harmon-Jones and Peterson 2009 Language function Broca’s area McDermott et al. (2003) Loss Insular cortex Paulus and Frank 2003 Love (maternal) Ventral part of Anterior Cingulate cortex Bartels and Zeki 2004 Love (overlap of maternal and romantic) Striatum (Putamen, Globus Pallidus, Caudate Nucleus), Middle Insula and Dorsal Anterior Cingulate cortex Bartels and Zeki 2004 Love (romantic) Dentate gyrus/Hippocampus, Hypothalamus, Ventral Tegmental area Bartels and Zeki 2004 Moral Judgments Frontopolar cortex (Brodmann Area 10), Posterior Superior Temporal Sulcus Borg et al. 2006, Moll et al. 2005 Moral Sensitivity Amygdala, Thalamus, Upper Midbrain, Medial Orbitofrontal cortex, Medial Prefrontal cortex, Superior Temporal Sulcus Moll et al. 2002 Motor Intentions Premotor and Parietal cortex Desmurget et al. 2009, Lau et al. 2007
  24. 24. Multi-Tasking Fronto-polar cortex (Brodman Area 10) Dreher et al. 2008 Optimism Rostral Anterior Cingulate cortex, Amygdala Sharot et al. 2007 Person Recognition Left Hippocampus, Left Middle Temporal gyrus, Left Insula, and Bilateral Cerebellum Paller et al. 2003 Pleasure/Enjoyment Anterior Cingulate cortex, Putamen, Medial Prefrontal cortex ,Nucleus Accumbens Klasen 2008, Sabatinelli 2008, McLean 2009 Priming Parietal cortex, Middle Temporal cortex, Posterior Superior cortex Naccache and Dehaene (2001), Wible et al. 2006 Rewards and Utility Anterior Cingulate cortex, Caudate Nucleus, Nucleus Accumbens, Putamen Bush et al. 2002, McClure et al. 2004c, Delgado et al. 2005 Risk Nucleus Accumbens Knutson et al. 2001 Sadness Subcallosal Cingulate cortex Murphy et al. 2003, Phan et al. 2002 Self-reflection Medial Prefrontal cortex, Posterior Cingulate Johnson et al. 2002 Self-regulation of emotion Amygdala, Dorsolateral Prefrontal cortex, Hypothalamus Beauregard et al. 2001 Social Cognition Amygdala, Cingulate cortex, Temporal lobe, Orbitofrontal cortex, Right Somatosensory cortex, Ventromedial Frontal cortex Adolphs 1999, 2001 Social Cooperation Amygdala, Orbitofrontal cortex, Dorsolateral Prefrontal cortex Rilling et al. 2007 Spatial Cognition Hippocampus, Medial Temporal Lobe Moser et al. 2008, Shrager et al. 2008 Sympathy Anterior Superior Frontal gyrus, Inferior Frontal gyrus, Temporal pole, Amygdala, Left Central Sulcus, Right Dorsal Premotor cortex, Dorsomedial prefrontal cortex, pre-SMA, and Inferior Parietal lobule Decety et al. 2002 Zurawicki Lima 10-10-2014 24
  25. 25. Zurawicki Lima 10-10-2014 25 How much knowledge do you need to master all this? Do you check on computer which ROI to monitor? The differences between available techniques pertain to how the data is obtained, not so much how it is analyzed later. One distinction pertains to the theoretical v. applied research. fMRI (less frequently PET) used to be in the first category because of the complexity of data acquired What is a “fishing expedition” in research terms? It is still too early to decide what works best under what circumstances as we still uncover new twists (technologies are advancing) and creative modifications of the experiments.
  26. 26. Zurawicki Lima 10-10-2014 26 Technological progress allows to overcome the constraints and add versatility to various methods  fMRI getting faster,  EEG caps less cumbersome  biometric devices smaller,  all the tools become more accurate  wi-fi connectivity allows distance monitoring  cloud processing helps with big data generated We have to understand the foundations of the methodology otherwise we will get lost. It is difficult as the human brain is the most complicated system known to mankind. Machine learning (training computer in recognizing specific patterns) helps to automate observations. Some methods offer more qualitative results (facial recognition, fMRI to an extent), others allow some quantification. Clients want to know how the results were obtained and be convinced of the basis for recommendations given by consultants.
  27. 27. Zurawicki Lima 10-10-2014 27 Note on fMRI Depending on the format, in fMRI study 500–1,500 functional images are collected, each subdivided into small cubes called voxels (volumetric or 3D pixels). Voxels’ dimensions are typically 3D 2–5mm--25,000– 50,000 voxels cover the whole brain. We need evidence of activation not in just one voxel but in a cluster of at least 5 to avoid inadequately supported conclusions Images (slices) of a single brain volume are obtained sequentially-adjustment is required. Imposes limitations on what is doable and what not when using the scanner. Not a very comfortable condition: up to 1hr. inside the fMRI scanner, and some head movement is likely to occur, resulting in spatial shifts (“artefacts”) in terms of which areas specific voxels correspond with. Individual brains differ in size and shape, comparing brain activations across subjects requires the use of a template (average) brain, hence possible differences in functional anatomy--the location of brain functionality. fMRI good for detecting “higher level” and more abstract phenomena, for example differences between subjects who are by definition different (men v. women, young v. old, users v. non-users Other techniques (EEG, bio) offer greater ease of interpretation—also because they have been used longer and more extensively
  28. 28. Zurawicki Lima 10-10-2014 28 Identifying Emotions on the Basis of Neural Activation. Kassam KS et al.,2013. We also learn how more complex things are and that our brains are somewhat different
  29. 29. Zurawicki Lima 10-10-2014 29 Regular reactions following the onset of the stimuli
  30. 30. SURPRISE A different gauge 30
  31. 31. Zurawicki Lima 10-10-2014
  32. 32. PURPOSE: Track shoppers’ store navigation patterns Measure the degree to which shoppers notice and emotionally respond to display types Identify display types and locations that generate the most impressions Categorize display types/qualities that drive positive and/or negative responses Study search patterns and navigational strategies shoppers use to find and select products Example: …….. Research, Inc. methodology 32
  33. 33. PROBLEMS WITH RATIONALITY OF CONSUMER BEHAVIOR AND HOW TO DEFINE
  34. 34. Zurawicki Lima 10-10-2014 Why is rationality so important? Because the marketers seek some logical explanations people’s behavior, learning the causes and quantifying th effect(s) leads to more accurate models and improved marketing program. So if things cannot always detected that way we feel like left helpless. WHAT APPEARS IRRATIONAL AT FIRST CAN PROVE RATIONAL IN THE END IF WE KNOW WHAT TO CONSIDER Examples:  Your absent minded professor  Dealing with an unknown risk (why losses hurt more than gains)  Unpredictable future (what is your plan for 10 yrs. ahead?, is it rational to get married?)  Inertia-cost of change, dealing with thresholds and small differences  Is the monetary reward ($$$) the ultimate criterion for our rationality and HAPPINESS? (Philantropy)  Various facets of the same proposition  Short v. long term rationality  Are poor more rational than rich? In sum: life is a very complex gamble with a lot of unknown risks
  35. 35. RATIONALITY and its limitations Is politeness rational? Petty rationality (flushing toilets every time). Washing windows every week? Lights outside? Fight a minor case in court instead of paying? Spending $1000 on a game ticket? What about trade-offs? What is rational if we do not know enough? 35
  36. 36. HABITUATION=weakened response to repeated stimulus Increase the stimulus? Increase the frequency of the stimulus? Change the stimulus? After a year, does a new car feels equally exciting? What about kids’ toys (2 weeks)? Role of curiosity and boredom (no challenge). WANING PLEASURES 36
  37. 37. Zurawicki Lima 10-10-2014 What is the value of time?
  38. 38. Zurawicki Lima 10-10-2014 Rationality starts with the perception stage and paying attention/exploring. Where is the optimum: speed versus the accuracy in perceptual decision—do we have control over? So much depends on the quality of info: what is the benefit of rationality if based on inaccurate info? Perceiving reality through our senses is like working with the instruments (they are not perfect). Can we be sure about our interpretation of the stimuli? Logic plus memory = what helps determine the rational side of appeal. People do not get perfect information, however and its processing can be flawed due to external and internal factors (e.g. time pressure). Shortcuts/heuristics. Two types of consequences for marketers: • Consumers might misunderstand the marketers’ communications • Consumers might be fooled by messages How to enhance search for info (=exploration) a challenge to marketers who believe their success is based upon customers’ thorough examination of their offer. A paradox: increased release of dopamine stimulates research in case of uncertainty. So making consumers happy serves not just developing a positive attitude but making them more curious as well.
  39. 39. Zurawicki Lima 10-10-2014 “Fewer than 10 percent of all adenomas become cancerous. But more than 95 percent of colorectal cancers develop from adenomas, and doctors now think some other types of benign polyps also may become cancerous”. When retrieving a quote from memory, evaluating a testimony’s truthfulness, or deciding which products to buy, people experience immediate feelings of ease or difficulty, of fluency or disfluency. Cognitive load
  40. 40. Zurawicki Lima 10-10-2014 Does rationality have to do with math? (exclusively?) If so what kind? How to approach the mental accounting?
  41. 41. 41
  42. 42. Cost of data processing in the brain What marketers do not consider well enough is that consumers have to make many different decisions at any given time. hence Competition for tasks More/less important decisions Do we need shortcuts? What worked for me in the past? (memory) Be less demanding (“good enough—it is only a vacation”) Seeking simplicity (“bare necessities”) Do not rush (“sleep on it”—your brain will do the work) If it is good for the neighbor/friend etc., it is good for me (theory of mind)? All the consumers can’t be wrong (popularity, herd instinct, safety, reviews) 42
  43. 43. 43
  44. 44. With only 3 left in stock! (73 Customer Reviews) Offer expires in: Hr. Min. Sec. Social Proof-Heuristic: buy what others buy/recommend. Authority-Proof-Heuristic: buy what experts recommend. Scarcity-Proof-Heuristic: buy what is offered for “limited time only”. Already 86 sold! 44
  45. 45. Zurawicki Lima 10-10-2014 Rationality should not be interpreted in opposition to emotionality and they both form the basis of INTUITION False impression as if humans were predominantly governed by uncontrollable emotions EMOTIONS ALSO SERVE AS HELPFUL (EFFICIENT?) SHORTCUTS AND CAN TEACH CONSUMERS A LOT (e.g. “regret”)
  46. 46. + OR ? 46
  47. 47. DEVELOPING APPROPRIATE RESEARCH SCENARIOS
  48. 48. Zurawicki Lima 10-10-2014 Keep it simple The problem—determination does not differ from the procedures in any traditional research except that we look for suitability/appropriateness of neuro-observations of more subconscious, emotional, and on occasion more credible responses. What can be observed/determined and what cannot with neuro? Will see an illustration later in the pricing study case. The relevant question/hypothesis based either on curiosity or previous knowledge: is it true/false that…. Then the question how to test/mimic the circumstances of use and the experience with a particular product or service. At home, store, on the web Trade-off: in a laboratory we have more sophisticated equipment (not always portable) and technicians but conditions are not natural (unless people play computer games or watch videos). Decision has to be made regarding the stimuli and context : • single stimuli or clutter • subjects monitored in isolation or together (influence, joint decisions) One-time or repeat trials
  49. 49. Zurawicki Lima 10-10-2014 From reactive to proactive approach Can the consultancy develop scenarios addressing a problem it considers important and unanswered and then prospect the businesses who potentially experience a similar problem? Sure, I do it all the time. It is actually a necessary strategy for the young industry. The advantage is that from the outset you prepare a program which you know you can implement. It might have to be modified to the needs of the actual client.
  50. 50. Zurawicki Lima 10-10-2014 As mentioned earlier, we need to figure out not only what specific questions are to be answered but have to determine what is DOABLE. If a repeat design is used to check for consistency/change of response, the same subjects have to be used. Could be a problem, subjects no longer available, not interested in participation. Consider fatigue: 1 hr. in a scanner is a lot to endure for anybody. What does the company need to know? Which scales/variables lead to an answer? Which of them can be obtained in a traditional, which in the neuro way (which in both ways)? Which are more appropriately acquired through the neuroscientific apparatus and why? How are we going to provide a contrast between the observation/experiment and a benchmark? (Just copy the original format or revise—we might have learnt something from the first one)
  51. 51. Zurawicki Lima 10-10-2014 From a scenario to protocol Location Population Procedures Measurement tools Methods of analysis Outcomes
  52. 52. Zurawicki Lima 10-10-2014
  53. 53. Zurawicki Lima 10-10-2014
  54. 54. Zurawicki Lima 10-10-2014 Car Research Scenario Suppose you wish to learn how people experience a new car model (comfort, handling), what scenario do you suggest? Can one record driver’s reactions while piloting the vehicle on a circuit/road? What should be watched? Could you create emergency situations so that you record reactions in real time to specific challenges and (dis)satisfaction with the car’s responsiveness and handling? Could you measure how strongly one holds the steering, presses pedals and what happens simultaneously in the brain (EEG) and reflects in biometric functions? Can you compare on the same circuit how maneuvering the new model differs from piloting the old one for the group of the (old model) owners and for drivers used to different makes? Is it suitable to measure the stress level (hormone cortisol in saliva) before and after? What will it document? From my neuromarketing perspective it is not so much about how you do it but what relevant aspects you study A recent rewarded study looked at aspects of design of competing cars and came up with observations and recommendation based on ET, EEG and GSR when subjects watched a videos and interacted with the interior. Is that so crucial? Client is the boss!
  55. 55. Zurawicki Lima 10-10-2014 FUTURE of POSTAL SERVICES Problem: is direct mail in continuous decline due to omnipresence of electronic media (and else)? In an earlier study in the UK a renowned company--Millward Brown--programmed an experiment in the computer lab—this ignored the tangibility of direct mail and limited impact to just visual incomplete (gloss disappearance stimulation. Even then, difference noticed. Design of the new study: focus on actually receiving new mail of specific interest. Recreating realistic conditions of actually receiving mail in the box. Allowing for full sensory experience with tangible mail. Which type of mail will be opened first? How much time will be spent examining the same messages sent both ways? then only the final question: What is difference in emotional reactions, do people (all, which ones) like direct mail better?
  56. 56. HOW TO SIMPLIFY AND ASK PUNCTUATED QUESTIONS?
  57. 57. Zurawicki Lima 10-10-2014 “How can we get our customers to buy more?” needs to be re-phrased and made operational (too many factors intervening). Do not ask questions you feel you cannot answer! You can ask: “Will you buy…A,B, C?” Answer NO, probably more credible than YES. You ask about the PROBABILITY and extract a NUMBER (e.g. 0.75). But people are not so good with estimating such values and if you ask: “How confident are you about your probabilities ?” –you can make things eve more difficult. You can try to measure confidence with neuro devices or even latency or use a proxy, e.g. degree of demonstrated interest (brain asymmetry while watching).
  58. 58. Zurawicki Lima 10-10-2014 So one could develop questions amenable to neuromarketing which in addition to the questionnaire will focus on specific scales:  Do they trust us (how much)?  Do they like us (relative to competition)  Do they approve of our prices  Do they enjoy visiting our stores (Apple, Nike etc.)  Is our message clear and understandable? (cognitive effort, for example humor typically require more processing time)  Are they curious/interested in our offerings and communications? (approach/avoidance mechanism) Some of the above can be typically answered “yes” or “no”, others san be measured using appropriate scales to offer a better insight into problems of interest.
  59. 59. Zurawicki Lima 10-10-2014 Methodologies offering simple outcomes are well designed to answer simple questions. If one can a priori assume the type of reaction to expect (a pic of a baby or puppy, picturesque sunset) then the study might just focus on the INTENSITY of response. Translates into a faster and less costly analysis. Different with ambiguous questions
  60. 60. TYPES OF MEANINGFUL COMPARISONS AND HOW TO MAKE SENSE OUT OF THEM
  61. 61. Zurawicki Lima 10-10-2014 It is often very important for the clients to figure out which alternative is better/best out of a multitude of options. A, B, C…. –it could pertain to:  product design  packaging  logo  slogan  commercial  endorser  web site  store environment  and many more (can you think of other aspects?) A very useful approach to uncover hidden elements is when consumers cannot TELL (verbally) the difference in the attractiveness of two or more offers. In such a case, neuro can reveal the unconscious preference which in reality would be tilting the scale.
  62. 62. Zurawicki Lima 10-10-2014 Neuro useful to detect minute differences in preference (say, comparable tourist destinations).
  63. 63. Zurawicki Lima 10-10-2014
  64. 64. Zurawicki Lima 10-10-2014
  65. 65. Zurawicki Lima 10-10-2014 Green logo according to Walmart (Sands Research). Highest, Most Intense Engagement Level with Logo Concept Sam’s Club selected to use this logo design for their very successful "Simple Steps for Saving Green" campaign which easily identifies environmentally friendly products throughout their stores.
  66. 66. Zurawicki Lima 10-10-2014
  67. 67. Zurawicki Lima 10-10-2014 NESPRESSO ANALYSIS
  68. 68. Zurawicki Lima 10-10-2014 How to improve if not happy with the results:  change characters  change order of scenes (if story allows)  change product shots  choose the best frame for a billboard
  69. 69. POSITIVE VERSUS NEGATIVE COMMUNICATIONS
  70. 70. Fascinating understudied topic Beyond theoretical aspect, a practical consideration: what to expect (and hypothesize) as the reaction/outcome? Positive emotions breed a lot of positive attitudes, why then negative communications? Besides creating contrast the emotional rollercoaster is not proving too helpful unless for certain industries and when the objective is to change bad habits (fear, disgust).
  71. 71. Zurawicki Lima 10-10-2014
  72. 72. Touching negative emotions Does this work? Which one is better Which is more persuasive: A or B
  73. 73. Zurawicki Lima 10-10-2014 Recent study showed that ad-evoked positive emotions generate a favorable attitude towards the ad and the brand. Occasionally, marketers do allude to negative states. Intention is not to leave the viewer with hurtful emotions. Like in most movies and unlike in most operas, the drama of signaling to consumers is not only to end on a positive note but also to instill an optimistic mood. Except for the brief moments to make the threatening, displeasing and annoying aspect of the message clear (and maybe as applied specifically to such sectors as health care or insurance), the strategy would prove risky. Could prove risky
  74. 74. Zurawicki Lima 10-10-2014 Logically, negative feelings in the consumers better be avoided. There is no convincing evidence that negative appeals in advertising are effective Ads provoking fear, guilt or anger are by definition aversive, and can prompt consumers to ignore the ad or dislike the product if not contrasted with some overruling antidote Tension Response to fear follows an inverted U-shaped curve. Mild fear signals produce tension in consumers, the moderate level facilitates persuasion, beyond the optimal point, strong fear appeals lead to anxiety, negative attitudes and adoption of defense mechanisms. Persuasion range Intensity of fearful message
  75. 75. PROS AND CONS OF READING FACE (RECORDING FACIAL EXPRESSIONS)
  76. 76. Zurawicki Lima 10-10-2014 Is facial recognition of emotions a part of neuromarketing? Expressions on our face, like reactions in our whole body, controlled by the command center—our brain. In that sense, grimaces are an extension of the mental processes. Regardless of how we label it, this is a very useful technique to study consumer attitudes and behavior-- unobtrusive, fast and relatively inexpensive
  77. 77. Zurawicki Lima 10-10-2014 find this methodology intuitively convincing because, to an extent, an average person can interpret the facial expressions.
  78. 78. Zurawicki Lima 10-10-2014 Facial reflections of emotions are quite universal (unlike voice and body language) and may be recognized from different angles
  79. 79. Zurawicki Lima 10-10-2014 How well can we read emotions?
  80. 80. Zurawicki Lima 10-10-2014 LIMITATIONS  Narrow menu of the available relevant emotions to study  Need for adaptation to lower emotionality of the context of stimuli (in advertising)  Probabilistic nature of the results  Overlooking blended emotions The wider a smile, the happier the person is T/F?
  81. 81. Zurawicki Lima 10-10-2014 The menu of emotions is not necessarily best adapted to the needs of consumer studies. We hardly experience ultimately powerful emotions in the context of buying (unless ultimate decisions: buying a home), more likely in the context of using products/services (aggravating misperformance, admiring beauty). NEUTRAL variable can often dominate Can we read TRUST/DISTRUST on a face? Can we read DESIRE? ACCEPTANCE? REJECTION? How can machine learning help? It is all about pattern seeking and expert system.
  82. 82. QUESTIONS & ANSWERS
  83. 83. Zurawicki Lima 10-10-2014

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