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33 Lessons in Neuromarketing


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An exploration of neuromarketing, psychology and simply brilliant quotes from Jonah Lehrer's How We Decide, Roger Dooley's Brainfluence, and Marketing Lindstrom's Buy-Ology and Brandwashed. Also a couple quotes from Douglas Rushkoff's Coercion. For more on the future of marketing see:

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33 Lessons in Neuromarketing

  1. 1. 33 Lessons in Neuromarketing Presented by: Jeph Maystruck
  2. 2. From these books
  3. 3. The physicist Niels Bohr once defined an expert as "a person who has made all the mistakes that can be made in a very narrow field." From the perspective of the brain, Bohr was absolutely right. Expertise is simply the wisdom that emerges from cellular error. Mistakes arent things to be discouraged. On the contrary, they should be cultivated and carefully investigated. -How We Decide by Jonah Lehrer
  4. 4. Baba Shiv, a neuroeconomist at Stanford, supplied a group of people with Sobe Adrenaline Rush, an "energy" drink that was supposed to make them feel more alert and energetic.Shivfound that people whod paid discounted prices consistently solved about 30 percent fewer puzzles than the people whod paid full price for the drinks. The subjects were convinced that the stuff on sale was much less potent, even though all the drinks were identical. "We ran the study again and again, not sure if what we got had happened by chance or fluke," Shiv says. "But every time we ran it, we got the same results." -How We Decide by Jonah Lehrer
  5. 5. Mark Jung-Beeman, the scientist who studies the neuroscience of insight, has shown that people in good moods are significantly better at solving hard problems that require insight than people who are cranky and depressed. (Happy people solve nearly 20 percent more word puzzles than unhappy people.) -How We Decide by Jonah Lehrer
  6. 6. meet themorgensons
  7. 7. 17 microphones 35 hidden cameras15hidden crew members
  8. 8. ―Whether it’s shoes, jewelry, barbecuetools, or sports equipment, there’snothing quite as persuasive as observingsomeone we respect or admire using abrand or product.‖-Martin Lindstrom
  9. 9. ―The results proved beyond any doubtwhatsoever that marketers, advertisers,and big business have nothing at allcompared to the influence weconsumershave on one another.‖-Martin Lindstrom
  10. 10. Joe Camel and Mickey Mouse
  11. 11. Nearly all America’s six-year-olds could identify Joe Camel, who was just as familiar to them as Mickey Mouse. -Brandwashed by Martin Lindstrom
  12. 12. ―Recent studies have shown that by the time they are 36 months old, American children recognize an average of 100 brand logos.‖ -Dr. Allen Kanner, child psychologist at the Wright Institute in Berkley, California.
  13. 13. What’s one of the most powerful advertising tactics used?
  14. 14. Fear
  15. 15. 1. Pinpoint a problem consumersdon’t know they have 2. Create anxiety around the problem 3. Sell the cure
  16. 16. Remember these commercials….
  17. 17. Thanks to fear-mongering,alarm sales rose by an unprecedented 10% in a single year, a year during which crime rates actually decreased. -Brandwashed by Martin Lindstrom
  18. 18. What have marketers done to the supermarket?
  19. 19. For years now supermarkets have been sprinkling select vegetables with regular dew drops of water – a trend that came out of Denmark. Why? Like ice displays, those sprinkler-like drops serve as a symbolic, albeit a bogus one, of freshness and purity. (Ironically, that same dewy mist makes the vegetables rot more quickly than they would otherwise.) -Brandwashedby Martin Lindstrom
  20. 20. Yup, they’ve tested to see what colour ofbananas we tend to buy more of. -Brandwashed by Martin Lindstrom
  21. 21. Believe it or not, my research found thatwhile it may look fresh, the average appleyou see in the supermarket is actuallyfourteen months old. -Brandwashed by Martin Lindstrom
  22. 22. Does Music effect your shopping patterns?
  23. 23. In department stores ―Muzak‖ with a slow tempo makes shoppers shop for 18% longer and make 17% more purchases -Coercion: Why We Listen to What ―They‖ Say by Douglas Rushkoff
  24. 24. In grocery stores, shoppers make 38% more purchases while listening to slow tempo ―muzak‖On the contrary, fast food restaurants play faster ―muzak‖ to encourage a faster rate of chewing. -Coercion: Why We Listen to What ―They‖ Say by Douglas Rushkoff
  25. 25. In one experiment, I asked two groups of consumers to try two different versions of the toothpaste (Aquafresh)-one regular version and one that had been dyed just one color. Sure enough, the group using the paste with three colors not only reported that the toothpaste worked 73 percent better, they even claimed they believed that their teeth looked whiter. -Brainfluence by Roger Dooley
  26. 26. One Cornell study looked at several common restaurant price display techniques: $12.00 or 12 or twelve dollars. The researchers expected that the written/scripted prices would perform best, but they found that the guests with the simple numeral prices (those without dollar signs or decimals) spent significantly more than the other two groups did. -Brainfluence by Roger Dooley
  27. 27. Scents can affect behavior and consumer perceptions. One experiment showed that nightclub patrons danced longer when the venue was scented with orange, peppermint, and seawater. When surveyed, the patrons of the scented clubs reported they had a better time and liked the music more. -Brainfluence by Roger Dooley
  28. 28. A test in a casino found that people gambled 45 percent more money in a slot machine when a pleasant scent was introduced into the area. -Brainfluence by Roger Dooley
  29. 29. Another test found that changing a shampoo’s fragrance but no other performance characteristics caused testers to find that it foamed better, rinsed out more easily, and left their hair glossier. -Brainfluence by Roger Dooley
  30. 30. Sometimes, we process scents without conscious awareness. In one unique experiment, researchers asked female subjects to smell shirts worn by men who watched either an erotic movie or a neutral one. Virtually all of the women said they didn’t smell anything, but the functional magnetic resonance imaging (fMRI) scans of the brains of the women who smelled the shirts worn by the aroused guys lit up in a different way. (This is just one example of why surveys, questionnaires, and similar market research tools can yield unreliable results.) -Brainfluence by Roger Dooley
  31. 31. They chose a wineshop for this experiment, since wines have identifiable origins, and proceeded to play French and German background music on alternating days.The results were startling:the French and German wines each outsold the other by several multiples on the days the matching music was playing. -Brainfluence by Roger Dooley
  32. 32. One of the most interesting findings was that the mere illusion of progress caused people to buy coffee more frequently. The experimenters issued two different cards: empty cards with 10 spots to stamp and cards with 12 blanks of which two were prestamped. In both cases, 10 stamps were required to earn the free coffee. Despite the identical number of stamps needed, the group that started with apparent progress on their card bought coffee more frequently than the empty-card group. -Brainfluence by Roger Dooley
  33. 33. An experiment in Edinburgh began by planting hundreds of wallets on city streets. Almost half were mailed back to the ―owner.‖ Most wallets contained one of four possible photos: a smiling baby, a cute puppy, a happy family, or an elderly couple. Other wallets had no photo at all, and some had charity papers inside.3 The results were quite startling. Fully 88 percent of the wallets with the baby photo were returned. The next best rate was the puppy photo, at 53 percent. A family photo netted a 48 percent return rate, while an elderly couple picture scored only 28 percent. Just one out of seven of the no-photo wallets was returned. According to the principal researcher, Dr. Richard Wiseman, the high rate of return for the wallets that included a baby photo reflects an evolution-driven instinct to help vulnerable infants. Humans, in order to protect future generations, are wired to help babies, even the progeny of others.
  34. 34. An interesting study by German researcher Armin Falk showed that a bigger gift amplifies the reciprocity effect. Falk’s study involved mailing 10,000 requests for charitable donations, divided into three groups. One group received only the letter requesting the donation, one group received the letter plus a free postcard and envelope (the small gift), and the last group received a package containing four postcards and envelopes (the large gift). The idea that sending a gift along with a charitable donation request boosts response is well established, and the experiment bore this out: the small gift boosted donation totals by 17 percent. The recipients of the large gift, though, were even more generous: they donated 75 percent more than the no-gift group. This experiment is significant in a couple of ways. First, it tested reciprocity in the real world, not in an academic setting with undergrads used as inexpensive lab rats. Second, it demonstrated that the reciprocity effect is proportional to the perceived size of the gift or favor, even when the variations are relatively minor.
  35. 35. If you want to convey a positive message, use real numbers, not percentages. If you are describing a benefit of your product or service, expressing it in terms of absolute numbers will maximize its impact.Good: 90 percent of our customers rate our service as ―excellent‖Better: 9 out of 10 customers rate our service as ―excellent‖ -Brainfluence by Roger Dooley
  36. 36. A Harris survey showed that 18 percent of those who posted a negative review of the merchant and received a reply ultimately became loyal customers and bought more. -Brainfluence by Roger Dooley
  37. 37. Researchers at Carleton University were stunned to find that showing users an image of a website for a mere 50 milliseconds—that’s just a twentieth of a second—was sufficient for them to decide how appealing a website was. -Brainfluence by Roger Dooley
  38. 38. In addition, nearly 70 percent of those consumers receiving replies reversed the negative content either by deleting the bad review or posting a second positive one. Considering the power of word of mouth—in particular, negative word of mouth—that’s a stunning accomplishment. -Brainfluence by Roger Dooley
  39. 39. John Bargh of Yale University, found that the temperature of a beverage makes a difference in how one person judges another person. An experiment gave subjects cups of either iced or hot coffee and then told them to rate someone else’s personality solely from a file of information about that person. Which group do you think scored the person higher for ―warmth‖? The hot coffee group, of course! -Brainfluence by Roger Dooley
  40. 40. Researchers found that placing the following statement at the end of an ad for an auto service firm caused their trust scores to jump as much as 33 percent! ―You can trust us to do the job for you.‖ -Brainfluence by Roger Dooley
  41. 41. One small but interesting study measured sales of a liquor product in a bar. Patrons who had the aroma of that beverage pumped into the surrounding air while a visual ad could be seen purchased nearly twice as much of the product as those who saw the ad alone. -Brainfluence by Roger Dooley
  42. 42. Tobacco warning labels were found to stimulate craving for tobacco when smokers were observed using fMRI brain scans. The very labels intended to frighten smokers became, after repeated exposure, a cue to smoke. By their presence on every pack of cigarettes, the warning labels became associated with the pleasurable aspect of satisfying a tobacco craving. -Buy-ology by Martin Lindstrom
  43. 43. A Princeton study compared student retention of course material presented in both simple fonts and more complex fonts and found that retention was significantly better for the complex font. -Brainfluence by Roger Dooley
  44. 44. What do companies know about you based on yourcredit card?
  45. 45. In 2002 a Canadian Tire executive analyzed credit carddata from the previous year and found out that;―people who bought carbon monoxide monitorspractically never missed payments, and neither didpeople who bought those little soft pads that keepfurniture legs from scratching up your floor.
  46. 46. But….―if a person bought a chrome-skull caraccessory, he was pretty likely to miss hisbill eventually.‖
  47. 47. Colin Powell made a number of mistakes in the run-up to the Iraq war, but his advice to his intelligence officers was psychologically astute: "Tell me what you know," he told his advisers. "Then tell me what you dont know, and only then can you tell me what you think. Always keep those three separated." -How We Decide by Jonah Lehrer
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