Truth & Lies About Why We Buy Has The Future Of Market Research Arrived


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Truth & Lies About Why We Buy Has The Future Of Market Research Arrived

  1. 1. Truth & Lies About Why We Buy: Has The Future of Market Research Arrived? Dennis Devlin AMA Market Research Shared Interest Group July 22, 2009
  2. 2. What’s The Issue? <ul><li>Increasingly greater demands on researchers </li></ul><ul><li>- Beyond just faster and cheaper </li></ul><ul><li>- Now even beyond higher quality </li></ul><ul><li>- Seek true consumer insights ( change the ways we have typically thought about why consumers decide to buy that can be leveraged for competitive advantage) </li></ul><ul><li>“ Tried and true” research methodologies insufficient </li></ul><ul><li>- Must question our shared conventional wisdom regarding the researcher’s toolbox </li></ul><ul><li>- Research innovation is required to respond effectively </li></ul>
  3. 3. What’s The Issue? (Continued) <ul><li>Traditional funnel perspective: consumer buying decision journey </li></ul><ul><li>- Traditional model, however, is incomplete </li></ul><ul><li>- Roughly 90% of our consumer buying behavior is unconscious </li></ul><ul><li>Presents the industry both a challenge and an opportunity </li></ul>
  4. 4. How Can Researchers Respond? <ul><li>Need to delve deeper into the human brain </li></ul><ul><li>Need to develop new research methodologies </li></ul><ul><li>- To respond to the increasingly greater client demand for true insights </li></ul><ul><li>- To close the gap in understanding consumer buying behavior </li></ul>
  5. 5. <ul><li>Confluence of medical knowledge, technology and marketing </li></ul><ul><li>Research discipline that uses high–tech brain scanning techniques to investigate brain activity in response to stimuli </li></ul><ul><li>Hardware enables an examination and analysis of what really drives behavior, opinions, and preferences </li></ul>What is NeuroMarketing?
  6. 6. The Ethical Debate (Briefly) <ul><li>PRO Stance </li></ul><ul><li>Better understanding of irrational behavior provides greater control </li></ul><ul><li>- The more firms know about our subconscious, the more meaningful products </li></ul><ul><li>CON Stance </li></ul><ul><li>Is this mind control? </li></ul><ul><li>Ultimate intrusion – peering into our inner most thoughts and feelings </li></ul><ul><li>Commercial Alert: “Subjugate the mind and use it for commercial gain” </li></ul>
  7. 7. What is Our Buyology? <ul><li>Subconscious thoughts, feelings, and desires that drive purchasing decisions </li></ul><ul><li>NeuroMarketing Research Study Details (2007): </li></ul><ul><li>- Cost of $7 million - 100+ fMRI scans/1,900+ SST studies - 2,000+ participants from America, England, Germany, Japan, & Republic of China </li></ul>
  8. 8. fMRI and SST
  9. 9. What is Our Buyology? (Continued) <ul><li>NeuroMarketing is designed to help make the transition toward understanding the truth and lies about why we buy </li></ul><ul><li>As a non-verbal research method, it bypasses a respondent’s claims by examining brain responses </li></ul><ul><li>As we learn more about the brain and its functions, greater capability to decipher more from observable brain activity, expanding the framework to interpret data </li></ul><ul><li>This opens the proverbial window to consumer lives and to our buyology </li></ul>
  10. 10. <ul><li>Consumer’s memory/recall: The most relevant, reliable measure of an ad’s effectiveness. </li></ul><ul><li>Perception/visual image: Powerful part of our buying behavior. </li></ul><ul><li>Dynamic duo: Improved recall and perception when a sound and an image are paired then when each is experienced alone. </li></ul>Selected General Findings
  11. 11. <ul><li>Sensory Branding: Visual images are more effective when paired with another sense (usually sound or smell). Case: Nokia ring tone. </li></ul><ul><li>Sensing Success: Smell and sound are powerful because of our mirror neurons (since your brain “sees” through sound and smell). </li></ul><ul><li>Touch: Tactile sensation is another key factor (e.g. heavier items are often perceived as higher quality). </li></ul>Selected General Findings
  12. 12. <ul><li>Coloring Perceptions: Color increases brand recognition. </li></ul><ul><li>Color of Money: Color of items affects their perceptions (e.g. yellow eggs, turquoise Tiffany boxes, pink sports paraphernalia). </li></ul>Selected General Findings
  13. 13. <ul><li>Shapes: Consumers might associate shape of a product with them (for better or worse). Consider the strength of the Coke bottle. </li></ul><ul><li>Sounds: Unique noises associated with products enhance their brand appeal and recognition (both direct and indirect). Ring tone appeal is important. </li></ul>Selected General Findings
  14. 14. Selected Specific Findings <ul><li>Cigarette health warnings stimulate smoking. While it’s accepted wisdom that printing health warnings on tobacco product packages doesn’t have much of an impact on smoking behavior , the researchers found that the warnings had no effect at all on the cravings of smokers. </li></ul><ul><li>They found that the health warnings stimulated the subjects’ nucleus accumbens, an area associated with cravings! The researchers concluded that the warnings not only didn’t help, but triggered a stronger craving. The very warnings intended to reduce smoking might well be an effective marketing tool for big tobacco companies! </li></ul>
  15. 15. Selected Specific Findings <ul><li>Product placements rarely work. With TV ad viewing under pressure from various alternatives, advertisers are turning to placing their products inside the content of television shows and movies. </li></ul><ul><li>Research showed that almost all product placements are ineffective. They found that typical product placements caused no increase in brand recall. The only product placements that did produce such effects were those which were heavily integrated into the content and actually made sense in their context. </li></ul>
  16. 16. Selected Specific Findings <ul><li>Brain activity accurately predicted TV failure. The researchers measured the brain activity of subjects while screening three new television shows: The Swan , How Clean Is Your House , and Quizmania . Of the shows, How Clean Is Your House was found to be most engaging, and The Swan the least. When the shows actually aired in the UK, the ratings the shows developed mirrored the predictions of the researchers. </li></ul><ul><li>This kind of successful application of neuromarketing may reduce the number of product introductions that fail , and prove to be a more reliable tool than traditional market research techniques. </li></ul>
  17. 17. Selected Specific Findings <ul><li>Sex does not sell. What the researchers did find was that controversies around sex in ads do sell the product. Often the controversy surrounding a sexually suggestive campaign is what attracts us, not the sexual content itself (stimulating but often distracting) — hence the success of Calvin Klein ads and those of Abercrombie & Fitch. </li></ul><ul><li>Keep it real: Consumers respond to “real” looking models (who could be us). Women in particular respond negatively to “glammed” up female models. </li></ul><ul><li>Overexposure: We are both overstimulated by and desensitized to sex. </li></ul>
  18. 18. Selected Specific Findings <ul><li>Strong brands are like religion. When the research team compared consumers’ brain activity while viewing images involving brands, religion, and sports figures, the activity evoked by strong brands was much like that caused by religious images. </li></ul><ul><li>Relevance of religion: Belonging; Clear Vision; Hierarchy (Power); Sensory Appeal; Story Telling; Evangelism; Symbols; Mystery. </li></ul>
  19. 19. Selected Specific Findings <ul><li>Subliminal advertising : Far from having fallen from grace the technique is alive, well and lucrative. It’s difficult for movie makers in search of the grittiness of everyday life to avoid ubiquitous advertising slogans, brands and products. </li></ul><ul><li>Subliminal advertising does have an effect on our buying behavior by circumventing our rational brain, going right for our emotional core. </li></ul>
  20. 20. <ul><li>Pure, instantaneous, unfiltered responses offer more accurate and reliable insights than other consumer research methodologies. </li></ul><ul><li>From detailed data is produced specific, actionable recommendations that can be implemented immediately </li></ul><ul><li>Apply tools to the full range of processes and materials that are central to developing and launching dynamic new brands, and ensuring the successful growth of existing brands, in any category </li></ul>In Practice - Positioning
  21. 21. <ul><li>Consumer testing capabilities typically include response to stimuli related to: </li></ul><ul><li>Brand name development </li></ul><ul><li>Product and packaging design </li></ul><ul><li>TV, radio, print and outdoor advertising </li></ul><ul><li>Sales promotions and collateral materials </li></ul><ul><li>Websites </li></ul><ul><li>Sponsorships, product placement + branded entertainment </li></ul>In Practice – Types of Stimuli
  22. 22. <ul><li>Neuroscience provides a deep, clear view into the real-world, real-time reactions of consumers at the most elemental level: their brainwaves. </li></ul><ul><li>The human brain reacts to stimuli in milliseconds. Capture of these reactions thousands of times every second is key to measuring: </li></ul><ul><li>Attention </li></ul><ul><li>Emotional Engagement </li></ul><ul><li>Memory Retention </li></ul>In Practice – Test Metrics
  23. 23. <ul><li>From those measurements, gauges of the following are derived: </li></ul><ul><li>Persuasion </li></ul><ul><li>Awareness </li></ul><ul><li>Novelty </li></ul><ul><li>Together these metrics determine consumers' engagement with the brand, with its marketing, and with its messaging or other content. </li></ul>In Practice – Success Metrics
  24. 24. <ul><li>Consumers are recruited, pretested, and familiarized with session setup. analytical equipment and techniques </li></ul><ul><li>Consumers are pre-screened for demographic, attitudinal, behavioral, and psychographic segmentation </li></ul><ul><li>Consumers are presented with a series of stimuli deliberately interspersed with normal viewing features in a setting that measures attention, emotional engagement and memory/retention </li></ul><ul><li>Data is acquired and processed </li></ul>In Practice – Design Elements
  25. 25. <ul><li>Quantitative indicators of attention, emotional engagement, and memory/retention are calculated from high density electrode arrays </li></ul><ul><li>Componentize the stimuli into key constituent elements (images, faces, actions, spoken words, written words, sounds, and other client indicated discriminants) </li></ul><ul><li>Utilize paradigms to elicit neuro physiological reaction measurements to determine which aspects of the stimuli contribute most and least to the overall effects identified in analysis </li></ul><ul><li>Provide feedback on each of the chosen components based on analysis </li></ul><ul><li>Identification of strengths and weaknesses and recommendations </li></ul>In Practice – Design Elements (Continued)
  26. 26. <ul><li>NeuroMarketing is still in its infancy, but it appears that the discipline will grow as our understanding of the brain grows </li></ul><ul><li>Initial indications show arguably promising results in generating a better understanding of consumer buying decisions </li></ul><ul><li>So, we need to begin to ask ourselves as researchers: Has the future of market research arrived? </li></ul>In Conclusion
  27. 27. Questions & Comments Thank You!