Neuromarketing

INDEX

1. Introduction .................................................................................................. 02

2. Neuromarketing: What's it all about ................................................... 03

3. History ............................................................................................................ 03

4. Why Neuromarketing .................................................................................... 06

5. Directions for scholarly Neuromarketing research .................................. 08

6. The Four Steps ................................................................................................ 12

7. Selling Probability ....................................................................................... 16

8. Examples ......................................................................................................... 17

9. Interpretation ................................................................................................... 18

10. Top 7 Insights to Unlocking Your Customer's Brain for Instant Sales .... 19

11. Problems, Issues and threats ........................................................................ 21

12. Neuromarketing: Evolution or unethical use of medical technology? .... 23

13. Concluding remarks ....................................................................................... 25

1. Introduction

Recent years have seen an explosion in the abilities of neuroscientists to directly study cortical activity in terms of frequency, time, and space. The psychological and physiological sciences have been quick to apply such techniques to make startling advances in our understanding of the brain and cognition. However, most social sciences have yet to adopt neuroimaging as a standard tool or procedure for research. In particular, while economics has begun to utilize neuroimaging techniques in its research - resulting in the creation of 'neuroeconomics'. Marketing science has been far slower to wake up to the benefits of imaging research, despite both fields of study sharing many common concerns regarding decision making and exchange.

There are a number of possible reasons for the lack of take-up of brain imaging methodologies in marketing science. From the perspective of the marketing academic, neuroscience and cognitive psychology in general can be intimidating subjects. Furthermore, many marketing academics may see imaging techniques as simply 'unattainable' to them in their own departments. However, this is generally not the case, as most business academics work within the context of a larger university with considerable facilities for brain imaging. Even if instruments such as positron emission tomography (PET), magneto encephalography (MEG), or functional magnetic resonance imaging (fMRI) are unavailable, electroencephalography (EEG) and galvanic skin response (GSR) technology will likely be. However, the lack of knowledge of even the existence of such techniques leads to a situation where they are not considered as potential avenues of exploration.

One possible solution to this is cross-school or departmental collaboration between business and neuroscience research groups -- both in terms of project design and procedure. However, from the perspective of the neuroscience researcher, there also appear to be some barriers to collaboration. In particular, while neuroeconomics appears to have raised nary a ripple of moral concern, recent opinions on 'Neuromarketing' within the neuroscience literature have strongly questioned the ethics of applying imaging techniques to the purpose of "finding the 'buy button in the brain' and ...creating advertising campaigns that we will be unable to resist"

Aim is not to set boundaries on what can and cannot be investigated in such a context, but to try to encourage and inspire thought about how neuroimaging can enhance our understanding of what is - for good or ill - an unavoidable part of contemporary society.

2. Neuromarketing: What's it all about

Neuromarketing is a new field of marketing that studies consumers' sensor motor, cognitive, and affective response to marketing stimuli. Researchers use technologies such as functional Magnetic Resonance Imaging (fMRI) to measure changes in activity in parts of the brain, Electroencephalography (EEG) to measure activity in specific regional spectra of the brain response, and/or sensors to measure changes in ones physiological state (Heart Rate, Respiratory Rate, Galvanic Skin Response) to learn why consumers make the decisions they do, and what part of the brain is telling them to do it.

Marketing analysts will use Neuromarketing to better measure a consumer's preference, as the verbal response given to the question "Do you like this product?" may not always be the true answer due to cognitive bias. This knowledge will help marketers create products and services designed more effectively and marketing campaigns focused more on the brain's response.

Neuromarketing will tell the marketer what the consumer reacts to, whether it was the color of the packaging, the sound the box makes when shaken, or the idea that they will have something their co-consumers do not.

3. History

Brain wave recording devices have been available for decades but the differences is that new technologies can now pinpoint more precisely which brain regions are active as people respond to products or make brand choices or are exposed to advertisements. The neuroscience dream of being able to peer into the functioning brain has been made possible through technology.

3. A) Beginnings

Neuromarketing is an applied extension of neuroscience. The application of brain-scan technology to marketing, especially the use of fMRI, gave rise to the term.

3. B) Peering Inside Heads

Neuromarketing is an extension of peering inside