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Business & Marketing

Is brain mapping the next frontier?

Getting inside the consumers mind has been the biggest challenge for marketers. The secrets of the human brain and its abilities have confounded them since ages. A totally dedicated stream in neuroscience named neuromarketing is now attempting to understand the chemical patterns in the human brain to predict buying behaviour. What does this mean for marketers, and how can they leverage it going forward? ashish kumar of 4ps b &m presents a scintillating analysis

O
is this THE ONLY WAY

mind?
Inside the buyers
or Does
hold the answers?

NEUROmarketing

n a bright afternoon, on June 6, 2012, in a move that was perhaps deliberately kept out of media limelight, Robert Kaplan and Myron Gutmann representing the Executive Office of the President of the United States quietly signed in a charter forming what is known in closed circles as the Interagency Working Group on Neuroscience, or IWGN. The purpose and scope of IWGN, as officially stated, was to coordinate activities in neuroscience research across the Federal government. Cut to the 2013 State of the Union address of the US President Barack Obama, and one could clearly not miss the distinct statement he made citing brain research as an example of how his government would invest in the best ideas. Was Obamas statement a deliberate forerunner to bigger news? One didnt need to wait for long to get the answer. Cut again to February 17, 2013, and news breaks in global media of how the US government is probably now formally on the cusp of announcing a decade-long never-beforeseen mammoth effort to map the human brain. The New York Times reported on the same day, Scientists involved in the planning said they hoped that federal financing for the project would be more than $300 million a year, which if approved by Congress would amount to at least $3 billion over the 10 years. Comparisons of the governments brain mapping initiative are now being made to the Human Genome Project, which is considered the single most important initiative to fully map the human DNA. In a furiously competitive world, as marketers continue to pour in billions of dollars every year in market research to understand consumers needs, wants, demands and the tricky one, the latent demand, such happenings are ruthlessly followed and excruciatingly investigated. Today, with the hu-

US may soon initiate the worlds largest brain mapping project

man genome completely broken down and mapped, doctors can easily pinpoint the exact genetic reason why various parts of the human body behave the way they do in any individual. Will the Human Neuroscience Project (so titled by us) lead to similar results with respect to an individuals mental faculties and responses? You see, the answer to this question, or rather, the power to look into the mind of an individual would be worth billions of dollars, if not trillions, to the marketing powerhouse global community, considering that a comprehensive understanding of the human brain and ability to forecast and influence consumer buying behaviour could rewrite economic equations like never seen before in the history of mankind. Astonishingly, Apple Inc.s iconic founder, the late Steve Jobs, was never in favour of market research. He often said that the consumers didnt know what they wanted unless one was to build something and show to them. He reportedly told Fortune once that Apple did no market research when it came to developing new products. Apples products, as if to support Jobs theory, managed to be more successful than any other product ever could be. Uniquely, Apple became the totem pole for the bunch of experts who opposed market research. Apple was glamorously quoted as being proof enough of the uselessness of market research and of analysing consumer behaviour. The reality was far from that, and the cover on this supposed inhibition of Apple towards market research was blown late last year. In August 2012, Apples VP of Product Marketing, Greg Joswiak submitted a declaration to a US court explaining why specific documents relating to Apples market research and strategy should be sealed. The declaration clarified that every month, Apple surveys iPhone and iPad buyers and Joswiak

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Unit cost of various marketing survey tools

Brain mapping techniques score over most other means
14 12 10 8 6 4 2 0 EEG fMRI Focus Phone Mail Email Analyst in $ U.S.

marketers can use brain maps

Jeffrey Fannin Founder Center for Cognitive Enhancement

Source: Entrepreneur magazine (At November 2011 prices in the US)

From top (clockwise)(1) Brainmapping revealed that while watching the Gangnam Style video, most viewers experiencedhappiness, sadness and surprise, while disgust, anger and fear were insignificant (2) Researchers have observed that people associate the front of the BMW MiniCooper with a human face (3) Since 2008, Frito-Lay has utilised brain mapping as a very important tool in desiging its advertisements

90% of the decisions we take are at a subconscious level

explained what Apple was able to make out of these surveys. Apple wanted all of these tracking studies sealed so that rival companies could never find out what drove an iPhone and iPad purchase or which set of demographics got the maximum loyal Apple consumers. After this declaration, various estimates came out that said that Apple might have spent anything between $300-500 million a year in conducting such marketing research. Evidently, the market research supporters had lost their best argument with that one revelation of Apple. But where does neuroscience and neuromarketing fit into all of this? Perhaps better than we ever imagined. So what exactly does neuromarketing involve? Well start with a seat of the pants reply. Neuromarketing takes the help of various brain mapping techniques like Functional magnetic resonance imaging (fMRI), Electrocardiography (ECG), ElectroEncephalography (EEG) and similar techniques to reach out and understand the parts of the brain that decide the buying behaviour of a consumer. Think about it. If marketers could understand why a consumer

would prefer a certain product over another, product specifications could be changed significantly based on customer wants. But theres a deeper inference in all this. Apparently, all we thought we knew about consumer research was wrong. And what do we mean by that? Over the past many decades, and especially over the past few years, research after research is popping up to prove that responses that humans give verbally and responses that they themselves believe to be true may not exactly be what they in reality are thinking. Breaking it down, it means that if you were to ask a prospective consumer which colour of a car would he like, and if he chooses the colour red because he truly believes that to be his first choice, neuroscience allows researchers to determine whether the consumer really likes the colour red or whether theres some other colour that he might like better without knowing about it. From the times of Nash equilibrium to the times of Prospect theory, Nobel prize winning concepts have proven that consumers do not necessarily take logical decisions and use

the vague space of intuition to base their less than optimal purchase choices. The premise of these theories lies in the fact that around 90% of the decisions we make are taken at a subconscious level. Hence, if a brand can speak directly to our gut instinct, bypassing our logic and reasoning, they will sell more products. A March 2012 Harvard research authored by Carmen Nobel gives the example of junk-food giant Frito-Lay, which hired a neuro-marketing firm in 2008 to look into how consumers respond to images or other stimuli related to Cheetos, the top-selling brand of cheese puffs in the United States. Using EEG technology on a group of consenting subjects, the firm determined that consumers respond strongly to the fact that eating Cheetos turns their fingers orange with residual cheese dust. With this information in hand, Frito-Lay moved ahead with an ad campaign in the US themed The Orange Underground, featuring a series of 30-second TV spots, in which the Cheetos mascot Chester Cheetah encourages consumers to commit subversive acts with Cheetos. During one such commercial, an airline passenger quietly sticks Cheetos up into the nostrils of a snoring seat-mate. The campaign became a grand success, and even helped Frito-Lay grab a 2009 Grand Ogilvy Award from the Advertising

Research Foundation. This is not a one of its kind example. Companies are increasingly leveraging such neuro-studies into their market research and product development research projects. Daimler-Chrysler conducted a similar study to understand the effect of their cars on the consumers mind. The study revealed that images of sports cars generated signals from the reward center of the brain; the same area, which gets hyperactive during the consumption of alchohol or drugs or during sex. Also, when respondents saw the front of the car, the portion of the brain that responded to face-recognition lit up, suggesting some association with a person they knew. These are tremendous insights for a future car design. In the mid part of the last decade, in one of the notable neuromarketing tests, an American research group headed by Samuel McClure used functional Magnetic Resonance Imaging (fMRI) toexamine the correlation between brand names and consumer preferences. The research offered Coca Cola, Pepsi and another cola drink to the participants, without telling them which drink it was. When consumers did not know what they were drinking, researchers could see the sensory aspect of the brain getting active. But once they were again given the same cola drinks and were

Can brain mapping ever become a replacement for judgement while analyzing the needs, likes or dislikes of a human being? I dont believe that brain mapping will become a replacement. It is more like a tool to help in analysis. However, marketers can use the brain maps to understand various activities going on in the specific areas of the brain to understand likes or dislikes patterns. If we someday completely get to know how or what neurological combinations make humans behave in a certain way, we may alter those combinations. How distant does it sound? This does not sound distant at all. We are doing it now. My colleagues Rob Williams, Dr. Bruce Lipton, well-known author of The Biology of Belief and I have put together a program for working with leaders and balancing subconscious belief patterns with the principles of nature to achieve sustainable success. Some of our research in the past two years has involved subconscious belief patterns. Changing subconscious beliefs will alter behaviour. What have been your most surprising experiences with brain mapping? The process of brain mapping never ceases to amaze me even after doing it for over 15 years. I have worked with children having trouble in school, with adolescents that were able to turn their life around due to brain training. I have seen amazing things happen with adults, leaders and non-leaders alike. We have only scratched the surface as far as brain mapping, brain tuning and achieving higher levels of consciousness.

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told the brand names too, the emo- ing that the industry is not even a tional part got active as well (and the decade old. While none of the compreference shifted to Coca Cola, irre- panies in the neuromarketing busispective of the taste). Look at how ness shared their financial figures insightful such information can be to with 4Ps B&M, their client list is a the marketing president arguing with testimony that the worlds most pophis CEO for more money to build the ular brands have started roping in brand. these neuromarketing agencies. For In his book Buyology, Martin Lind- instance, Nielsen-owned NeuroFostrom, the bestselling writer listed as cus has investigated over 50,000 one of the 100 most infulential people brains so far for its clients like Microaround the world by TIME magazine, soft, Citi, Starcom MediaVest, Calisays that traditional advertising is one fornia Olive Ranch and of course for of the reasons why 8 out of 10 new the parent company, which we love to product releases fail. To prove his vex, Nielsen. point, in one of the most extensive Similarly, London based Neuroneuromarketing studies, Martin sense boasts a wide array of clients scanned the brains of over 2,000 vol- including Intel, GlaxoSmithKline, unteers over 3 years at a cost of P&G, Johnson & Johnson, BBC, around $7 million. The study threw Viacom, Coca-Cola and Unilever et. up mind-boggling findings. One of al. The company shares many suc- (L-R) (1) McDonalds uses a special perfume these findings was that warning cessful case studies where neuro- inside its outlets to stimulate the portions labels on cigarette packages stim- marketing helped the clients to of brain which handle things like brand (2) Images of dominant brands, ulate activity in a brain area as- understand the consumer require- association. such as the iPod, stimulated the same part sociated with craving. This result ments better and the results were of the brain activated by religious symbols came out despite the fact that sub- measurable. One such brief that jects often said that they thought the they received from Viacom in late warnings were effective. 2008 was that the company wanted whether or not they appear within In other words, while the consum- to redefine their advertising pricing an appropriate or congruent proers believed that warning signs would strategy. Unlike the ongoing ap- gramming context, the client wantdissuade them from consuming cig- proach of pricing TV advertising on ed to use brain mapping technology arettes, the actual result was aston- audience figures, which assumed to be sure about whether an advert ishingly the opposite. It was easy to that the ads were processed simi- is processed differently by the huconclude that having these signs on larly by a viewer regardless of man brain just because it is placed cigarette packs actually could in a different program slot. push the sales up as compared Neurosense conducted the to the popular belief that it will study using fMRI to measdiscourage the smokers. Anure the extent to which ads other observation said that the are encoded, understood images of dominant brands, and liked if placed in a consuch as the iPod, stimulated gruent versus incongruent the same part of the brain acprogramming context. The tivated by religious symbols. result said that the ads k.v. Sridhar, Prahlad kakkar. placed in an appropriate Hence, the consumers tend to Vishal Vyas, NCD, Leoburnett, CEo, Genesis have a strong loyalty for these Sr. Marketing programming context were south asia creations brand as they may have for Manager, TTKshown to be encoded, liked, Protective Devices their religion. attended to and processed It is the result of these find- Especially in an emotionally positive I do not think I am not that the field of much aware ings that neuromarketing has in sensitive way to a far greater degree neuromarketing of any such become a huge industry in it- categories than when in an incongrucondoms, has reached a technology; but ent context. Using these self. According to a January like where stage where even if there findings, Viacom made key 2012 estimate by the Advertis- consumers it can act as a is anything as strategic changes to its ading Research Foundation, the are not very replacement to such, it has to conventional stand the test of vertising pricing strategy neuromarketing industry may comfortable marketing time and market and since then, Viacom and start generating over a billion talking about his experience research tools; before it gets its partner MTV Networks dollar plus in revenues by the or views, yet, it holds acceptance; have managed to double end of the year 2013. This is neuromarketing much promise after handling their global advertising really serious money, consider- is a boon and potential ethical issues
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sales to over 8 billion pounds a year. Thats the same reason Google Adwords works, as it uses its analytics about various sites to understand which sites would be the most congruent to a particular advertisement. In a similar way, brands like Mcdonalds and Proctor & Gamble found out through brain mapping that certain smells can give birth to strong associations. Using these findings, McDonalds developed a perfume which was subtly diffused in restaurants to increase brand association and boost sales. Proctor & Gamble followed the way with a similar trick. Sales of Ariel washing powder increased by 70% after an artificial perfume was placed under the lid. Remember the recent success of PSYs music video Gangnam Style? The song was released in July 2012 and on December 21, 2012, Gangnam Style, became the first online video to record a billion hits on the Internet and is still the most watched video on the net. Marcelo Peruzzo, Chief Brain Officer of Brazil based neuromarketing company ipdois neurobusiness, decided to conduct a neuromarketing research and measure the viewers reactions while watching this video, in order to gain more insights on what exactly made this video so popular. He asked 20 women and 20 men to watch Gang-

nam Style while researchers from ipdois neuro-business measured their reactions. They used eye tracking of viewers eye movements, galvanic skin responses to measure the muscular excitement level and facial coding to understand the emotions of those seeing the video. Using facial recognition software, it was proven that most viewers experienced happiness, sadness and surprise while watching the video, while disgust, anger and fear were insignificant proving the power of attraction of the video. Peruzzo also found that many of the scenes stimulate the limbic system. On another front, neuromarketing is relatively cheap too. In a November 2011 study done by Entrepreneur magazine, it was found that the per head cost of doing an EEG or fMRI based study in the US was cheaper than using a focus group (see the comparative chart; previous flap). However, despite all the success that neuromarketing has gained around the world, there are not many takers for the concept in India. While many top companies and executives that 4Ps B&M contacted had no idea of this concept, there were a few surprising exceptions. Vishal Vyas, Sr. Marketing Manager, TTK-Protective Devices Ltd. which has recently come up with its latest condom brand, Skore, is very positive on embedding neuromarketing in the marketing campaign when he says, If there is any scientific aid which can help marketers to capture consumer insights, it is definitely welcome. In sensitive categories like condoms where consumers are not very comfortable talking about their experiences or views, neuromarketing is really a boon. Similar views are expressed by K.V. Sridhar, National Creative Director, Leo Burnett India when he says that the concept looks exciting if it can really offer a way to support the findings of a primary research done by a human. However, he does not feel that neuromarketing has reached that stage where it can act as a replacement to the conventional market research. Noted AD Guru, Prahlad Kakkar also has his

this is the gold standard

Erika Laing Clinical Associate UPMC Brain Mapping Center, Pennsylvania

What is the authenticity of various brain mapping technologies like FMRI, EEG or EP etcetera? fMRI and MEG brain mappings are compared to intraoperative mappings whenever possible. Intraoperative mapping is when a patient who undergoes brain surgery receives direct electrical stimulation of their exposed brain, after which brain functioning is observed. Historically, surgeons have used this technique to roughly verify that they were not damaging tissue critical to a patients post-operative quality of life, such as a motor or language functioning region. It is considered the gold standard of functional brain mapping; however, this technique requires removing more skull than is typically necessary to complete a surgery, and also it is only performed in clinical settings when medically necessary. Clinical studies comparing fMRI, MEG, and intraoperative mapping have shown concordant results ranging from 85% to 100%, dependent upon the neuroimaging modality used and the type of brain function being tested. While technology may generate valid brain maps, can these maps be interpreted correctly? The best neuroimaging practitioners go to great lengths to tightly control their experiments and analysis procedures, giving the best possible chance of correct interpretation. There are strengths and weaknesses associated with each type of neuroimaging, and a thorough understanding of these traits is necessary for optimal interpretive ability. Therefore, it is critical to employ highly trained individuals in the task.

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privacy may be compromised!

Ravikant Banka CEO, Eggfirst Advertising

Can neuromarketing work? Such scientific methods can give a good forensic insight and to an extent cut out the human biases. The subconscious mind stores everything that one sees, hears, feels, and any other information that he or she comes across. Neuromarketing tests, measures and analyzes these intents and desires. It is a great way to understand how consumers make decisions and what draws them to make those decisions. However, technology itself is not entirely reliable. So am not sure how accurate the results would be, apart from giving broad level views on consumer preferences. What about intrusions into an individuals privacy? Is that worrisome? Definitely yes. Technology is power and power lends itself to an amazing level of corruption. Using such methods somewhere has an effect on the individuals, that they do not know about. Neuromarketing brain-scans an individual, and manipulates subconscious motives. Also, confidential information is extremely private and such information would not be preferred to be shared by the individual himself. Therefore, it is equivalent to going against the individuals will. Moreover, advertising is already considered to be a form of manipulation. Neuro-marketing definitely pushes this thought to a new level of debates and criticism. Do you think neuromarketing can replace human judgment? No, I dont think so. Besides the massive costs, neuromarketing cannot be afforded by all brands or by any brand at all times.

(L-R) 1. Researchers at the University of South California proved that high calorie food stimulates the reward center of the brain, making us crave for fast food 2. A representative image of a subject undergoing a neuromapping experiment

reservations when he says, I am not much aware of any such technology but even if anything exists as such, it has to stand the test of time and market before it gets full acceptance. Despite the general positive light in which neuromarketing is seen, one can not ignore the critics. Slate magazines science writer Daniel Engber raised some serious doubts about the accuracy of the results obtained by brain mapping and its relevance for marketers. He writes, Scanning one individuals brain and drawing shaky conclusions proves nothing. A few peer-reviewed studies correlating fMRI predictions of ad effectiveness with actual consumer purchases would mute the critics and do a lot more for industry credibility than any number of glossy articles that end up making neuromarketing look like high-tech phrenology. There are other ethical and legal issues surrounding the area as well. As the researchers around the world are struggling to attain a go-ahead on issues like stem cell research and cloning etc, it is very tough that attaching brain mapping devices to someones brain for a purely commercial purpose will find acceptance. A recent research paper titled On the Feasibility of Side-Channel Attacks with Brain Computer Interfaces uncovers potential security risks in the use of the consumer-grade EEG headsets. In this paper, a team of

security researchers from Oxford, UC Berkeley and the University of Geneva have claimed that they were able to deduce digits of PIN numbers, birth months, areas of residence and other personal information from 30 subjects who were wearing consumer-grade EEG headsets and who were exposed to images of ATM machines, debit cards, maps, people and random numbers in a series of experiments. Critics and researchers are even concerned about a scenario where a potential malicious attacker could write a brain spyware program, which could extract private information from the user. As imaging technologies progress and get coupled with powerful and futuristic software, threats will be bigger. Having said all this, the field of neuromarketing is still relatively new and there is a lot more to happen in this in the coming times. As big brands have started opting for neuromarketing related services, the future looks bright for the industry. But the marketers have to come clean on issues like privacy policy, medical safety of the subjects. At the same time, more industry-academia collaborations are required to create positive awareness on the subject. Only then we can see this highly potent technology going forward. And as far as Indian corporations are concerned, they need to start by reading this article. 4Ps

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International perspectives

Appropriate regulation to protect respondents is a prerequisite

Can neuromarketing influence you to buy what you never wanted... or thought you never wanted, but in reality actually wanted? If thats enough to confound you, then read this sparkling expert interview

Prof. Gemma Calvert

Managing Director Neurosense Group

Neuromarketing tools are able to tap into customers subconscious responses and reveal deepseated emotions and implicit biases that are not always evident on the face of it

To what extent do you think neuromarketing can find out the consumer intent, desires and latent demand for a product? Finding out what products, brands or marketing messages consumers will respond positively to or recall and act upon is a key part of market research and the rapidly expanding field of neuromarketing has a similar purpose. But in contrast to traditional explicit market methods that capture consumers explicit responses via, for example, focus groups or explicit surveys, neuromarketing tools are able to tap into customers subconscious responses and reveal deep-seated emotions and implicit biases that are not always accessible through introspection. The reason why this is important is because often consumers do not know how they feel, or say what they think and neither do they do what they say.The result is that 80% or more of all new products fail within their first year to market and often despite millions of dollars spent on explicit market research. The ramifications for the industrial economy are massive and any tools which can help better predict what people will or will not buy must be beneficial to both companies and consumers. Over the past 15 years, weve undertaken an extensive number of commercial market research projects using functional MRI scanners to literally see inside consumers brains as they are exposed to different marketing messages, across different platforms, at different times of the day; as well as to new product prototypes, new flavours, fragrances and even fabrics. The results of these studies have

consistently shown that in many circumstances, people say one thing, but the brain tells a different story and one which is more accurate at predicting how products will fare in the market. This is a significant gain over the typical market research methods. The reason for this is that consumers often dont know how they feel about new products, or brands which they have bought for many years and which have become part of their everyday purchasing habits. Other times, respondents want to provide positive feedback irrespective of what they really think, in order not to seem negative. Neuromarketing tools bypass these social biases and attempt to get at peoples true underlying desires and preferences. In some researches related to neuromarketing, it has been observed that the researchers were able to find out even the confidential information like ATM pins, account passwords etcetera from the subjects using brain mapping. Do you think that frequent use of such technology can be unethical and can be an intrusion to an individuals privacy? Any new technology may be open to abuse. It is up to humans how do they use it. However, the recently established Neuromarketing Science and Business Association (NMSBA), an organisation that represents the neuromarketing industry, has made the publication of a Code of Ethics one of its primary activities. The NMSBA Code of Ethics was published at the end of 2012 and it is a requirement of membership that all neuromarketing

practitioners abide by this code. Key components of this include assurance of experimental transparency, subject confidentiality and respect for individuals privacy. In practice, neuromarketing studies aim to find out not how a single individual responds but how groups of consumers brains react to a new or existing product or service. This is partly because knowing what a single individual believes is not particularly useful to companies marketing to large populations and also because neuromarketing methods typically require (as with any other market research) a sufficient number of individuals data to ensure statistically significant results. Do you think that neuromarketing can become a replacement of market research and human judgment, when it comes to finding out consumer needs and desire patterns? I do not believe that any neuromarketing practitioner honestly believes that solely capturing consumers subconscious responses is ever going to tell the whole story about what may work and what may not, any more than relying only on peoples explicit feedback can do. Neuroscience has made rapid progress over the past few decades at finding out more about how we make decisions, what influences our thinking, what the role of emotions are in determining how we behave. The consensus that is emerging is that while complex choices and behaviours are often driven initially by subconscious emotional brain processes, these can also be substantially modulated by the conscious brain which allows us to eschew short term gains in order to achieve longer term goals. So human decision-making is the outcome of both implicit and explicit brain processes only by being able to measure both will marketers be able to gain at 360 degree perspective on what lies behind our behaviour. In times when subjects such as stem cell research, cloning et. al. have not been able to get a goahead in many countries, do you think that neuromarketing practices can get through legal and po-

litical hurdles? In contrast to areas such as stem cell research and cloning, neuromarketing per se does not set out to alter the human condition, but to better understand it. Naturally, appropriate regulation to protect respondentswell-being,privacy and to ensure transparency at all stages is a prerequisite if the industry is to survive and benefit consumers.Good market research is about finding out what the consumers need and want so providers can deliver products and services which match these desires and needs; neuromarketing can greatly help to achieve this, which benefits all of us. But the important point is that no matter what neuroscientists learn about the brain, or how we make decisions, or how our choices are influenced by certain cues, at the end of the day, if the product purchased does not deliver on expectations or generate an experience that is superior to what has already gone before, then our brains will ultimately reject it. In this way, our brains act as gatekeepers of marketing practices. Apart from the sci-fi loaded brain mapping techniques, what conventional ways have marketers been using to find out consumer demands? How accurate have these ways proved for them? Focus group, surveys and questionnaires online have all proved useful at

The NMSBA Code of Ethics was published in the year 2012 and all neuromarketing practitioners globally should necessarily abide by this code

being able to extract a partial picture of how consumers think at least some of the time. On the other hand, neuromarketing has typically used brain scanners, eye trackers and electrodes to monitor consumers implicit brain responses to the same questions or concepts. The former approach suffers to some extent from the fact that it only captures the tip of the iceberg of consumers thoughts and feelings, most of which occur below the level of conscious awareness, and therefore, often fail to predict behaviour. Traditional neuromarketing on the other hand has been criticised for requiring the use of costly brain scanners or unwieldy electrode caps which have negative implications in terms of practicality and scalability. A recent hybrid approach, which we believe allows marketers to benefit from the best of both approaches, is the evolution of online neuromarketing techniques. These methods, which have been developed and validated after years of piloting and commercial testing alongside brain scanning methods, have now reached the level of sophistication required to be able to capture peoples subconscious responses online and with considerable speed without the need for scanners and electrodes.These methods rely on measuring peoples response times at timescales (milliseconds) too fast for the conscious brain to kick in and influence the subconscious (or gut instinct) reaction. The approach involves presenting words (eg. brand attributes, logos, slogans) and/or images (products, celebrity endorsers, new prototypes) on a computer screen (or tablet, or mobile phone) and requires respondents to react in less than a second. The outcomes of these mini-tests provide insight into consumers implicit biases and preferences across a huge range of marketing stimuli. We therefore believe that, far from the sci-fi loaded brain mapping, the future of neuromarketing lies in the integration of these easily implementable, cost-effective and scalable online neuromarketing tools with traditional qualitative and quantitative market research methods. 4Ps

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i n t e r n a t i o n a l c o l um n

If you think you know what you are thinking, youre wrong!
Neuroscience is an area that has only been touched trivially by researchers globally. dr. phil harris argues why this may be one of the most critical tools to understand mercurial human behaviour
ow do we choose? Consumers imagine themselves as rational decision-makers, able to weigh up the relative costs and benefits of decisions to arrive at reasoned choices. Yet, a growing body of research in psychology and the neurosciences suggests that learning and decision-making are mediated by thought processes that occur belowthe-surface. Indeed, increasing evidence suggests that our decision-making is heavily biased via mechanisms that are inaccessible to deliberative thought processes. The role of emotions Marketing theory and practice has long understood that emotions play an important role in consumer decision; particularly those decisions that are impulsive, and low in cost or risk. Now there is mounting evidence suggesting that hidden, emotionally biased thought processes underpin decisionmaking in general, including those made by consumers. This evidence of hidden decision mechanisms provides a major challenge for marketing researchers and the industries they supply with consumer insights. Historically, marketing research has judged consumer attitudes and likely behaviour towards products, services and ideas based largely on what consumers say. Yet, organisations have long observed a gap between consumers stated intentions and actual behaviour, and understood that consumer behaviour towards products can be biased by decision factors that simply cant be articulated. Looking to science Over the past decade, researchers and commercial organisations alike have in-

Dr Phil Harris
Lecturer, Faculty of Business and Economics, University of Melbourne

A growing body of research in neurosciences suggests that learning and decisionmaking are mediated by below-thesurface thought processes

creasingly looked to the use of research methods from the neurosciences as a means to better understand decisionmaking processes. The nascent field of neuromarketing draws on theory and tools from the neurosciences to examine these processes in the context of market exchanges. In an early example of neuromarketing research, a US team led by Samuel McClure in 2004 used functional Magnetic Resonance Imaging (fMRI) toexamine the effects of brand exposure on consumer preferences. Participants preferred the taste of a cola drink more when it was linked with the market-leading brand than when it was tasted anonymously. Critically, the shift in branded preference was accompanied by greater activation of brain regions involved in information processing and long-term memory encoding. Brand knowledge stored in memory appeared to shift taste preferences. In a more recent neuromarketing study,Hilke Plassmann and other researchers from the California Institute of Technologyused fMRI to examine the influence of pricing changes on taste preferences. In a cleverly designed study, research participants sipped and rated red wines while in the fMRI scanner. What the participants did not know was that two wines offered the value $10 wine and the premium $90 wine were actually the same. Participants rated the higher priced wine as tasting better yet, fMRI responses in brain regions associated with taste sensation did not change. Instead, fMRI responses in brain regions associated with the overall pleasantness of the tested experience were more strongly activated when prices were higher than when they were lower.

In an early example of neuromarketing research, a US team led by Samuel McClure in 2004 used functional Magnetic Resonance Imaging (fMRI) toexamine the effects of brand exposure on consumer preferences. Participants preferred the taste of a cola drink more when it was linked with the market-leading brand than when it was tasted anonymously.

Brands do influence choice Together, these studies show that brands and pricing information shift expectations of a tasting experience, and can bias (even dominate) the influence of actual taste information on shaping preferences. Commercial organisations seeking to capitalise on these novel consumer insights have drawn on a variety of research techniques from the neurosciences to better understand consumer preferences and decisions. Some commercial organisations have used fMRI research to examine consumer responses to product designs. Daimler-Chrysler, for example,sponsored an fMRI studyin which males rated the attractiveness of car designs. Sports cars were rated as more attractive than other car categories, and were associated with greater activation of reward-related brain regions. Commercial uses However, the high cost, low scalability and limited temporal resolution of fMRI data has acted as a barrier to its more widespread commercial use. More commonly, commercial marketing research studies have examined brain electrical activity responses (electroencephalography, or EEG) and other biophysical measures that reflect attention and arousal while viewers are exposed to marketing stimuli, such as TV advertisements. Using this approach, responses

gained during exposure to products and advertisements can be used to diagnose the effectiveness of specific elements of the stimulus. For example, TV commercials that fail to communicate effectively during key moments such as the presentation of a brand can then be revised before launching. In a recent example,Nestl used EEG techniquesas an adjunct to more traditional research measures when designing a television commercial. The EEG responses identifiedkey moments in a confectionery ad for Allensthat required additional viewing time to communicate effectively. The ad was revised and launched, resulting in a sales increase for the advertised brand.

The high cost, low scalability and limited temporal resolution of fMRI data has acted as a barrier to its more widespread commercuse use

Controversy Use of neuromarketinng techniques isnot without its critics. Although debate has progressed beyond initial concerns over undue power of marketing stimuli developed through the use of these techniques, ethicists rightly express concern over ownership and use of private medical data gained through neuromarketing techniques. Resolving this debate will be an important step in the progression of this fledgling field. Other questions concern the extent that biophysical measures can be captured in commercially viable settings and still provide reliable and useful marketing research constructs. Peer-reviewed articles supporting the utility of these measures for marketing research are scarce, but increasing. Neuromarketing organisations have also responded with an industry-wide project that will formulate industry standards. Not all neuromarketing organisations have played ball, however. Still, the use of neuromarketing techniques is on the rise and we should expect to see more informed policy development regarding how it is used in marketing. Importantly, knowledge gained through the use of these scientific methods will provide both consumers and marketers alike with a better understanding of the role played by ubiquitous commercial stimuli in our everyday decision-making. 4Ps

74 4ps BUSINESS AND MARKETING 15 february - 14 march 2013

15 february - 14 march 2013 4ps BUSINESS AND MARKETING 75

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International perspectives

we need to ensure standards are never compromised with

morin, who has been one of the main authors of the nsba code of ethics for neuromarketing professionals, Presents his views to 4Ps B&M
They say that neuromarketing can one day even find out what the consumer desires and wishes for, better than what the consumer himself would be able to do. Do you think such a scenario is realistic? Neuromarketing is a relatively young field. In the last decade or so, peer reviewed experiments have provided key insights that have helped us understand the neural mechanisms of attention, self-relevance of an offer, how the brain assesses the value or utility of a decision and ultimately chooses to engage or ignore an offer. However, more research is needed to confirm some of the early conclusions. There has always been some or the other debate on the ethics of all this. In some researches related to neuromarketing, researchers were apparently able to elicit private information (passwords, pins etcetera) from the subjects using brain mapping. Thats raised some hackles and some quarters are questioning the unsolicited intrusion of privacy that may occur in this field. How do you feel this would pan out in the future? I am not aware of the research you are quoting nor do I think it is possible to retrieve such information via neuromarketing methods. I do think that neuromarketing professionals have to follow a code of ethics and I am one of the main authors of the code of ethics adopted by the Neuromarketing Science and Business Association. Hence, I believe that the neuromarketing practices cannot be threatening to that extent as described by you. But do we see this field as being the future of todays market research? And does this have the potential to completely replace market research to determine human behaviour more precisely than traditional techniques? I think neuromarketing research provides critical insights that are not possible to generate using conventional methods. Therefore, I recommend that marketers include neuromarketing methods and mix them with other research protocols to the extent that they can afford to do so. Every new area that has a radical nature (aka stem cell research) has run foul of powers that be. How do you believe the legal and political ramifications would be? As long as research is conducted according to the highest ethical standards by competent researchers, I dont see any reason why neuromarketing research should face legal and political resistance. However, we need a continuous endeavour to ensure that these highest standards are never compromised in any situation. Leaving aside brain mapping, are there other nouveau methods to determine consumer buying behaviour accurately? I believe that learning how consumers make decisions can in fact help us to create a society in which we are more mindful of the risk and excesses of consumerism. For instance, I am currently investigating the neurophysiological effect of advertising messages on adolescents because I believe that regulation does not protect young consumers adequately from stealth marketing techniques, especially for products like tobacco, alcohol and junk food. 4Ps

Christophe Morin
CEO, SalesBrain Adjunct Faculty, School of Psychology Fielding Graduate University

"I believe that learning how consumers make decisions can help us to create a society which is mindful of the risk and excesses of consumerism.

76 4ps BUSINESS AND MARKETING 15 february - 14 march 2013