This document discusses the use of facial coding and analysis of emotions to gain insights into consumer behavior. It provides information on how 95% of mental activity is subconscious and driven by emotions rather than rational thought. Facial coding is presented as a way to quantify emotions based on techniques developed by Darwin, Ekman and others to analyze facial muscle movements and map them to core emotions. Examples are given of how facial coding has been used to analyze reactions to TV ads and predict sales. The document also discusses using models of human personality traits like the Big Five to develop deeper understandings of consumers and how their traits relate to behaviors, attitudes and values.

1. © 2014. All Rights Reserved.
Emotions Matter!
Part 1

2. © 2014. All Rights Reserved.
Fear = Freezing

3. Moving Beyond Won’t or Can’t Say
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What % of mental activity is
subconscious?
95% of mental activity is
subconscious.
Thoughts &
Self-reported
Feelings
Intuitive
Emotions
3

4. SENSE – FEEL – think- DO
4
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©Sensory Logic 2012

5. Brain Exchange: 10x Ratio
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Emotional
Rational (10%)
5

6. Testing Issues
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Effectiveness Success Rate %
80
70
60
50
40
30
20
10
0
“Cases with favorable pre-testing results
did significantly worse in market
than those that were not tested.”
Binet and Field,
Marketing in the Era of Accountability, 2007
71%
44%
Not Pre-tested
Pre-tested

7. The Future of Marketing
20th
Century
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21st Century
Information
Satisfaction
Talking Points
Feeling Points
On-Message
On-Emotion
7

8. Step Closer… Step Ahead.
Traditional Economics
rational
verbal
conscious
vs.
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Behavioral Economics
sensory emotive
non-verbal
subconscious
rational
verbal
conscious

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Part 2
QUANTIFYING EMOTIONS:
FACIAL CODING

10. Mona Lisa
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11. Mona Lisa
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12. © 2013. All Rights Reserved.
“Lie to Me”

13. History of Facial Coding
•
Scientific Theory:
Charles Darwin
– Universal
– Spontaneous
– Abundant
Science
1872
•
Theory Refined:
Paul Ekman, Ph.D.
– 43 facial muscles,
express universal core
emotions
Psychology
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•
Business Inventor:
Dan Hill, Ph.D.
– Pioneer in using facial
coding to create
emotional metrics
– U.S. Patent Portfolio
Business
1965
1998

14. History of Facial Coding
2011
2005
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Which tool will have the most transformative
impact on MR?
2010
“The reviewers felt that neuroscience suggests
that neurological methods (fMRI)and facial
coding are best suited to assess the emotional
valence of viewer reactions”
2009-2011
- The ARF NeuroStandards
Collaboration Project

15. Sales Correlation to Super Bowl TV Spots
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Seventeen automotive TV spots were
analyzed over the past 3 years.
Facial Coding
Facial Coding .6112
Electroencephalography (EEG)
EEG
Rating
USA Today .0003
.232

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Part 3
FROM FLEETING TO ENDURING:
PERSONALITY

17. The Problem
In general, “evidence indicates
that demographic measures,
outside of education, are not an
accurate predictor of consumer
behavior.”
Sales/Marketing Management (11/09)
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Only 15% of major companies
surveyed derive real value from
creating segmentation typology.
(Marakon 2006)
Only 6% of marketers have
excellent knowledge of
customers, 51% have fair to little
knowledge.
(CMO Council 2008)

18. Solution: Big 5 Traits Model
“Surprisingly, most marketers have
no idea how well the Big 5 can
predict consumer behavior. The Big
5 predict attitudes, values, selfconcepts, and motivations.”
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19. Myers-Briggs Inadequate
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19

20. The Elements
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“The fifth element is mud.”
-Napoleon Bonaparte
20

21. Male Version: Big 5 Examples
Openness
Conscientiousness
Agreeableness
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Extraversion
Neuroticism

22. Female Version: Big 5 Examples
Openness
Conscientiousness
Agreeableness
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Extraversion
Neuroticism

23. Traits by State
Neuroticism
Openness
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Extraversion
• States that vote Democratic tend
to be higher on openness and
extraversion, vs. conscientiousness
for Republicans
Source: Gosling, Snoop: What Your Stuff Says About You

24. White vs. Wheat Bread
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25. White Bread Supporters
1 – White Bread Traditionalists
Emotional Profile
True Smile
Robust Smile
13%
0%
0%
2 – White Bread Neutralists
Emotional Profile
True Smile
13%
0%
Micro Smile
Surprise
0%
Surprise
7%
Dislike
87%
7%
0%
1%
4%
39%
Sadness
29%
Anxiety
0%
Dislike
21%
Frustration
15%
Skeptical
23%
Sadness
4%
Weak Smile
Micro Smile
Skeptical
20%
0%
Robust Smile
Weak Smile
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50%
100%
5%
Frustration
27%
Anxiety
80%
6%
0%
50%
100%
Traditionalists exhibit 2x more sadness than any of the other three segments. Meanwhile, the Neutralists
are notable for showing 1/3rd more dislike than any other segment.

26. Whole Wheat Supporters
3 – Healthy Whole Wheaters
4 – Sophisticated Whole Wheaters
Emotional Profile
True Smile
Robust Smile
Emotional Profile
12%
0%
6%
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True Smile
45%
0%
Robust Smile
36%
Weak Smile
0%
Weak Smile
Micro Smile
0%
Micro Smile
0%
Surprise
0%
Skeptical
0%
Surprise
6%
Skeptical
12%
Dislike
Sadness
10%
Dislike
0%
55%
12%
0%
21%
Sadness
Frustration
Anxiety
9%
50%
88%
100%
9%
Frustration
18%
Anxiety
55%
6%
0%
50%
100%
The Healthy Whole Wheaters are most notable for having 2x more frustration than any other segment.
Sophisticated Whole Wheaters, in contrast, are all about enjoyment.

27. © 2014. All Rights Reserved.
Part 4
SUMMARY

28. Facial Coding: Big Micro Data
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• Walmart’s transaction
• Walmart’s transaction
databases – 2.5
databases – 2.5
petrabytes
petrabytes
• 40 billion Facebook
• 40 billion Facebook
photos
photos
• Amount of digital
• Amount of digital
information increases 10x
information increases 10x
every 5 years
every 5 years
28

29. And Then You and the Client Can Be (Really) Smiling
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True
Fake
Fake
Fake
True
Fake
True
Fake
True
Fake
Fake
Fake
True
True
True

30. Go Deeper Than Online Behavior or Social Media Chatter
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Emotions
Immediate
Lifetime
Personality
Traits
Values

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