Running head: NEUROMARKETING 1 Neuromarketing Science and Marketing Hand-in-Hand! Shelnik Boyd October 31, 2014 CMST 4899: Senior Project NEUROMARKETING 2 Abstract Nowadays, marketing companies will go beyond and yonder to make sure that their products have an advantage over their competitors. Neuromarketing is the new-age science procedure that has hit the laboratories of neuroscientists and the eyes of marketers. Neuromarketing is a combination of neuroscience and marketing. Neuromarketing techniques have the capacity to see the consumer’s behavior and the reason that consumer react to certain visual stimuli. Neuroscientists have technologies that measure the stimulation activity in certain parts of the human brain, to gain information that market researchers have the opportunity to benefit from. This paper analyzes the multiple reasons for neuroscientists and marketers’ motives for neuromarketing, and how they preform experiments to reach their ultimate goal. Secondly, the paper will explain the reason neuroscientists and marketers perform cognitive tests for different gender. Lastly this paper will review opposition and advocacy for neuromarketing. Keywords: Neuromarketing, advertisements, fMRI, gender, motives, consumer behavior NEUROMARKETING 3 Neuromarketing, Science and Marketing hand-in-hand Introduction Many new-age marketing companies have decided to strive for an edge over their competitors. They are using something called “Neuromarketing.” This new-age science has hit the ground and is running at full speed. It is both neuroscience and marketing hand-in-hand (Javor et al.,2013). It goes beyond just trying to appeal to a person’s physical needs, but even strives to stimulate the persons’ sensorimotor needs (Morin, 2013.) Researchers have developed technology that can actually measure the pleasure activity in parts of the brain, as well as what the person may find repulsive (Morin, 2013.) When showing a control group different marketing ads, they not only were able to observe the individuals’ facial expressions but were also able to monitor their brain activity. This enables the scientist/marketers to see both the emotional reaction as well as the physical action of the individual (Bowers, 2001.) Neuromarketing has gone so far that it’s even able to even determine what each sex might prefer (Goodrich, 2014.) This shows that knowing something as simple as the gender of the audience can make the advertisement more effective (Goodrich, 2014.) Neuromarketing has stepped up the bar of marketing and is able to seize the clutch point of the majorities buying purposes and optimize on consumer needs. NEUROMARKETING 4 Many people can relate to advertisement, especially if it’s geared to their gender or just simply has a great content within it. What the average person doesn’t know is that scientists and marketers have technology that can help them predict their success in products or ads. This paper addresses neuroscience research that explores the marketing segment and the various techniques that are being implemented to have better knowledge of the consumer’s purchase decisions. The average consumer is not aware of the marketing strategies that are used to target a specific audience (i.e., male and female customers.) In this paper, we will first discuss the motives for neuromarketing usage and how neuroscientists and marketers. Next, we will shed light on the benefits of neuromarketing and why a gender difference testing is essential for a successful campaign. Finally, we can evaluate the pro and cons of using neuromarketing techniques. Literature Review Neuroscientists and Marketers’ Motives for Neuromarketing There are many reasons for neuroscientists and marketers to use neuromarketing. Neuroscientists and marketers collaborated in the field of neuromarketing where they look into the mind of a human subject. Murphy, Illes, and Reiner (2008) critical review study found that the number one objective for neuromarketing was to probe into the minds of consumers. Neuroscientists scan the human brain for cerebral activity using a noninvasive procedure (Vecchiato et al., 2011.) Cerebral activation is caused by the human’s emotions (i.e., dislikes, likes, and arousal) attention (Stoll, Baecke, & Kenning, 2008), and memory (Morin, 2011.) Vecchiato et al. (2011), authors of “On the Uses of EEG or MEG Brain Imaging Tools in Neuromarketing Research,” discussed the technologies that neuroscientists used to measure cerebral activation (e.g., fMRI, EEG, MEG and MFT.) Marketing specialist, Christophe Morin NEUROMARKETING 5 explained the importance of studying consumer’s behavior in the neuromarketing field. Morin stated, “Neuroimaging provides powerful lenses through which we can observe and understand the mind of a consumer.” In addition, Vecchiato et al. (2011) believed that investigation of cerebral activation is able to help neuroscientists to distinguish emotional reaction from cognitive processing. Stoll, Baecke, and Kenning (2008) conducted a study that measured cerebral activation of participants. The participants were exposed to packages that were either attractive or unattractive. Questionnaires were given to participants to rate the attractiveness of the packages. Their final results were that the right brain hemisphere alternated between attractive and unattractiveness. On the occasion of the subject expressing dislike for a package, the left hemisphere of the brain was activated. In conclusion, to Stoll, Baecke, and Kenning reported, that one of marketers’ motives is to differentiate their products from competitors. Therefore creating products differentiation tactics such as, customizing the packages of the product has the opportunity separate from rivalries’ packages. Researchers have determined that even using something as simple as color can play a major part on the persons’ psyche. It has been determined that red, yellow and orange creates hunger in a person. When you think of some of the top food chains, Mc Donald’s, Burger King, Taco Bell we see that they use these some if not all of these colors. There are numerous reasons that marketers are able to benefit from neuromarketing. Cognitive studies of human subjects have the opportunity to examine both primary (e.g., stimulations arousal and cerebral activation,) and secondary motives. Since neuroscientists’ objectives are to understand the human brain dynamics, marketers can profit from their studies NEUROMARKETING 6 that are based on products/merchandise stimuli. Considering this fact, neuroscientists and marketers cognize the differences in gender concerning in neuromarketing. Cognition Difference in Gender Marketers know that gender difference is a vital component for neuromarketing. This is why gender difference testing is conducted in neuromarketing. In a study conducted by Goodrich (2014), who explored the hemispheric processing between both male and female subjects, he believed that men and women’s cerebral behavior is different from one another, especially in a situation in which involves shopping. The participants were exposed to online advertisement that was featured on the rightward versus leftward of the screen. Goodrich discussed the measuring attention and attitudes of both genders and the participants’ emotional drive that came from a specific product or an advertisement. Once the experiment was completed Goodrich hypothesized that male subjects were more favorable to online advertisement compared to female subjects. In addition to Goodrich’s findings, he predicted male subjects preferred an advertisement that had low attention span versus an advertisement that consists of high attention span usage. Goodrich mentions that advertisement placement is important, when targeting male or female consumers. In conclusion to Goodrich’s research, his predictions of males that preferred leftward advertisement and females that preferred rightward advertisement, was due to considering the fact how the gender’s brain hemisphere was activating. Eisend, Plagemann, and Sollwedel (2014) conducted a research that examine different gender roles and humor in advertising. The authors examined gender stereotypes that were placed either in a humorous or (non) humorous ad. Also, Eisend, Plagemann and Sollwedel NEUROMARKETING 7 (2014) discovered that (non) humorous advertisement is more effective for female stereotypes, whereas stereotypes of males are more effective in a humorous advertisement. Marci, (2006) measured both the emotional engagement and the attention levels of participants. The experiment was conducted on 27 adult males, between the ages of 25 to 35 years. Two commercials were shown to the participants, while the participants watched previously aired television shows. The television shows were either, successful or unsuccessful. Each commercial was shown twice, to measure the participants’ emotional engagement and reaction to the commercials that represented a beer company and a bank corporate. In conclusion, Marci found a commercial with no content of a successful television show, does little effect in the situation in which it is shown twice. Under circumstances in which the commercial(s) is aired with content, it creates more engagement regards if the television show is successful or unsuccessful. These studies mention the importance of neuromarketing techniques and why it’s crucial to know the target audience’s gender. Without knowing the gender of the audience, an advertisement can be ineffective. Marketers know that in order to have a successful advertising campaign, they have to probe into the mind of their consumers. Considering the fact that companies already know what the average consumer wants, others feel that that these companies (i.e., who’s engage in neuromarketing techniques) are violating the human’s private thoughts. Advocacy and Opposition for Neuromarketing Practices Despite strides this new science has taken, not everyone has decided to jump on the bandwagon, when it comes to companies’ looking into their crystal ball, to seek out human’s inner thoughts. Many feel that it’s too intrusive and doesn’t allow personal privacy or even the NEUROMARKETING 8 “choice” to say yes or no to a product. Possible negative effect for using neuromarketing could be the misguiding of a product. In a research conducted by Lindell and Kidd (2013) 180 participants took part take in the experiment. The experiment that was made-up of three groups (i.e., non-psychology students, psychology students and parents (whose average age of students was 41.63 years.) Also, the participants who volunteered their service, was both female and male. The participants were asked to watch advertisement for a product that could possibly enhance children learning ability. One product was shown to the participants, but the product was divided into two advertisements, creating the sense of two entirely different products. One advertisement showed a brain image and the other without a neurocontent (Lindell & Kidd, 2013). The first advertisement was worded “Right Brain Training” and the other was named “Right Start Training.” Conclusively, the researchers stated that most participants would be vulnerable to products that have a neurocontent/ brain image. In addition to their conclusion, Lindell and Kidd (2013) stated that even the psychology students were not sure of the skeptical of scientific rationale of the products. As the group choose the product that had the neurocontent as well. Even marketers can endorse negativity for using neuromarketing, paying thousands of dollars experimenting with their products. Another con may be that marketers may experience, a product or advertisement campaign that is not successful, thus losing thousands of dollars. As stated in the previous section, Marci (2006) founded commercials that did not have content that is being aired during a successful television show, does little effect. Accordingly to Marci, if a commercial is aired with content, it creates more engagement regards if the television show is NEUROMARKETING 9 successful or unsuccessful. For this reason, marketers have to strategize the air placement of their advertisement or they could end up losing thousands of dollars. As always, every dark cloud has a silver-lining and the usages of neuromarketing contribute a lot of positivity as well. Considering the fact that researchers (i.e., neuroscientists) use non-invasive procedures on their human subjects, this allows participants to have low-risk and little to no side-effects (Stoll, Baecke, & Kenning, 2008). “Neuroethics of neuromarketing” a critical review by Murphy, Illes, and Reiner (2008) suggested that it is necessary that practitioners to remind participants to ensure his or her protection. In addition, Murphy, Illes and Reiner emphasize that certain populations (e.g., children and those that have psychological disorders) need stronger rules and regulations to protect them against neuroscience marketing techniques. For quite some time, marketers thoughts their products would be successful if they placed a beautiful model in an advertisement. This method is called emotional selling proposition (ESP) which has the ability to intensify a product while placing a beautiful model in the ad (Gakhal & Senior, 2008.) Researchers are finding out that the usages of beautiful models in their campaign could possibly lower the self-esteem of the consumer. Bower, (2001) conducted an experiment on highly attractive models (HAM) in advertising and how other women perceive the model’s beauty. The main purpose of Bower’s study was to find the relationship between the negative affect that came from the HAM and influence that the model represented for the product. The subjects were asked to record their feelings towards the model and the product. Participants were given a Likert surveys to measure the: model beauty, comparisons of oneself against the model, NEUROMARKETING 10 and negative affect from the ad. In all sum, Bowers (2001) stated that advertisements that have attractive models (expertise) can cause psychophysiological issues within the consumer (i.e., women consumers who see a highly attractive model in an advertisement can ultimately affect her purchase decision). Without these studies, marketers and advertisements could not only bring harm to their companies but also the likelihood of their consumers. Consumers and marketers will always be interchangeable, for that reason alone; marketers need to be ethical throughout their practice, while using neuroscience techniques. Summary In, summary neuromarketing is a new study that studies the consumer’s physical and emotional response to stimuli. It allows scientist to view the consumer’s cognitive reaction as well as their affective response. In all, research suggests that emotions, norms, visual stimulus and attention can be beneficial factors for measuring the consumer behavioral process. Vecchiato et al. (2011) and Stoll, Baecke & Kenning (2008) explain that measuring a human’s cognitive processor, marketers and neuroscientists have access to explore the attention and attitude (Goodrich, 2014) of their subjects (both male and female). In regards to future research it shows that as time passes, marketers are using technology to present their products. They are becoming more rigid with their techniques to sell their merchandise, thus causing some consumers to possibly feel violated from this new marketing strategy. There NEUROMARKETING 11 Despite the above negative aspects, one must also consider the benefits that come with neuromarketing tactics: H1: Neuromarketing is a physically non-evasive and effective tool used to understand the consumers’ cognitive processor. R1: Have we, as a society relied on business companies to know our needs and wants? Conclusion In conclusion, we’ve reviewed the motives of marketers and neuroscientists’ usage for neuromarketing and why gender difference research is a critical category. We have also discussed several theories which provided knowledge of the benefits of neuromarketing within neuroscience, marketing/advertising, as well as an overall informative topic for modern society. This document has shown why it is imperative we understand how neuromarketing has effected and will continue to make an impact on both male and female consumers. purchase processes. Clearly this advancement in technology will continue to shape our NEUROMARKETING 12 References Bower, A. (2001). Highly attractive models in advertising and the women who loathe them: The implications of negative affect for spokesperson effectiveness. Journal of Advertising, XXX (3), 51-63. Eisend, M., Plagemann, J., & Sollwedel, J. (2014). Gender roles and humor in advertising: The occurrence of stereotyping in humorous and nonhumorous advertising and its consequences for advertising effectiveness. Journal of Advertising, 256-273 Gakhal, B., & Senior, C. (2008). Examining the influence of fame in the presence of beauty: an electrodermal ‘neuromarketing’ study. Journal of Consumer Behaviour, 7, 331-341. doi: 10.1002/ch.255 Goodrich, K. (2014). The gender gap: Brain-processing differences between the sexes shape attitudes about online advertising. Journals of Advertising Research, (p.32-43.) doi: 10.2501/JAR-54-1-032-043 Javor, A., Koller, M., Lee, N., Chamberlain, L., & Ransmayr, G. (2013). Neuromarketing and consumer neuroscience: Contributions to neurology, (p.1-12.) Lewinski, P., Fransen, M., & Tan, E. (2014). Predicting advertising effectiveness by facial expressions in response to amusing persuasive stimuli. Journal of Neuroscience, Psychology and Economics, 7, 1-14. doi: 10.1037/npe0000012 Lindell, A., & Kidd, E. 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