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AbstractRecently, a rapidly growing approach within con- of those constructs will soon be observable directly in vivo
sumer research has developed under the label of consumer because of considerable progress in using neuroscientific tools
neuroscience. Its goal is to use insights and methods from neu- to observe brain activity (Ambler et al. [8] and [9], Shiv and
roscience to enhance the understanding of consumer behavior. In
this paper we aim to provide an overview of questions of interest Fedorikhin [10], Shiv et al. [11]). Taking into account that the
to consumer researchers, to present initial research findings, and first results from the emerging discipline of consumer neuro-
to outline potential implications for consumer research. In order science have received considerable attention as expressed by
to do so, we first discuss the term consumer neuroscience and several scientific conferences (e.g., Association for Consumer
give a brief description of recently discussed issues in consumer Research preconferences and special sessions, conference
research. We then provide a review and short description of initial
empirical evidence from past studies in consumer neuroscience. on Neuro Economics (ConNEcs), Neuro Psych Economics
Next, we present an example of how consumer research or, more Conference) and special issues in different journals (e.g.,
specifically, customer loyalty research, may benefit from the Journal of Consumer Behavior, Brain Research Bulletin, and
consumer neuroscience approach. The paper concludes with a International Journal of Advertising) the goal of this paper
discussion of potential implications and suggestions for future is to provide an overview of the status quo in the field. With
research in the nascent field of consumer neuroscience.
consideration for the audience of this journal, the next section
Index TermsConsumer neuroscience, consumer research, neu- provides an overview of the questions of interest from consumer
roeconomics. researchers. We then discuss some initial findings from recent
studies, and conclude by giving specific examples that illustrate
I. INTRODUCTION how customer loyalty research could benefit from research in
neuroscience.
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KENNING AND PLASSMANN: HOW NEUROSCIENCE CAN INFORM CONSUMER RESEARCH 533
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534 IEEE TRANSACTIONS ON NEURAL SYSTEMS AND REHABILITATION ENGINEERING, VOL. 16, NO. 6, DECEMBER 2008
may be surprising to brand researchers, particularly the con- IV. EXAMPLE: CAN CONSUMER NEUROSCIENCE BE APPLIED
clusion that there is a nonlinear effect of brand equity with re- IN ORDER TO BETTER UNDERSTAND CUSTOMER LOYALTY?
spect to how prior brand preference modulates brain activity
(first-choice-brand-effect, see Deppe et al. [2]). To date, this We have provided a brief overview of first findings of
nonlinear effect is still not fully understood and more research is consumer neuroscience, and below we illustrate the approach
needed on this. However, in a recent lesion-study conducted by of consumer neuroscience by using customer loyalty as an
Koenigs and Tranel [20], patients with damage in the ventrome- example. Customer loyalty can be defined as a deeply held
dial prefrontal cortex (VMPFC) did not demonstrate the normal commitment to rebuy or repatronize a preferred product /ser-
brand-related preference bias when exposed to brand informa- vice consistently in the future (Oliver [27]). We have selected
tion during choice as compared to a control population. More- customer loyalty as an example for the following reasons.
over, Yoon et al. [16] reported neural differences when subjects First, research in customer loyalty has attracted increased at-
made person judgments, as opposed to brand judgments. This tention from marketing researchers (e.g., Bell et al. [28]) and
could indicate that, on a neural basis, brand personality may findings are published in top tier marketing journals (e.g., Dick
differ from the personality of people, which could be of interest and Bansu [29]).
for empirical brand research promoting the view that brands Second, while early research tried to establish whether
have personalities. The findings of Yoon et al. [16] might ex- customer loyalty has impact on aspects of business perfor-
plain why, in some cases, people can hardly describe a brand in mance (such as profit margin and sales), researchers are still
personality-related terms such as friendly or exciting. attempting to explain the theoretical foundations of customer
loyalty (Johnson et al. [30]).
Third, loyalty is a psychological construct that develops
B. Research on Advertising over time during a learning process of the consumer. Learning
theories have received considerable attention in neuroscience
Advertising research studies have often pointed out the im- and more recently also in the nascent field of neuroeconomics
portant role of emotions for ad memorization (see Ambler et al. (e.g., Caplin and Dean [31]). Thus, loyalty research can benefit
[8], Delgado et al. [23], and Klucharev et al. [14]). In adver- from insights in neuroscience and neuroeconomics about how
tising research, the hemisphere theory has been widely used learning processes are represented in the brain.
(e.g., Rossiter et al. [24]), suggesting that emotion and ratio Fourth, customer satisfaction and commitment play a central
are represented in different hemispheres of the brain. Research role in loyalty research. Most of the studies have looked merely
on the neural representation of stimuli-induced emotions, how- at cognitive aspects of these constructs, however some studies
ever, could show that emotions are not only processed in the found that affective processes have a higher impact on satisfac-
left brain hemisphere, but are also processed bilaterally (e.g., tion and loyalty (Westbrook and Oliver [32], Evanschitzky et al.
in the left and right hemispheres of such cortical structures as 2006 [33]). To better understand the role of affective processes
the ventromedial prefrontal cortex, and such subcortical struc- for customer loyalty, neuroimaging might complement existing
tures as the striatum). However, taking into account the che- methods in this area because it enables an online measure of un-
quered or multifaceted character of emotions, it is hard to lo- conscious and conscious aspects of affect-based loyalty during
calize them in the brain (Ochsner and Gross [25]). To the best the time of decision-making.
of our knowledge, emotions seem to be associated with several In the following section, we attempt to show that con-
highly complex brain patterns, and the neural representation of sumer neuroscience can enhance the understanding of
specific emotions such as sadnessas compared to angeris customer loyalty. In doing so, we apply the Temporal-Dif-
poorly understood (Ochsner and Gross [25]). ference-Learning-Model (TDLM) (Schultz et al. [34]). This
model has primarily been used for solving the reinforcement
learning problem. While we assume that building customer
C. Research on Choice Behavior and Purchasing Decisions loyalty is comparable with the more general process of learning,
we suggest that the application of the TDLM, in particular the
Using a term often promoted by the popular press, there is TD learning algorithm, might be useful to explain the devel-
nothing resembling a simple buy button in the brain. Instead, opment of customer loyalty from a neuroscientific perspective.
the brain recruits different brain processes during choice tasks. The basis for this suggestion can be found in a recent study
Some of these processes involve subcortical brain structures by Plassmann et al. [17]. They provide first evidence that a
such as the striatum (e.g., Plassmann et al. [17]). Most studies change in neural activity (i.e., in the striatum) correlates with
report that structures in the prefrontal cortex attempt to control customer loyalty (see Fig. 1). In order to identify these brain
the impact of emotions as expressed, for instance, in impulse regions, they employed Deppe et al.s first-choice-brand-task
buying. Reducing (enforcing) these areas of executive control [2]. By comparing and contrasting the brain activities of loyal
can have an impact on what and how people buy (Ambler et customers with those of disloyal ones, they found significant
al. [9], Ochsner and Gross [25], Paulus and Frank [5], and Rid- activity changes in the striatum (marked in yellow and red in
derinkhof et al. [26]). For instance, music might reduce cogni- Fig. 1, for details of the study, see Plassmann et al. [17]).
tive control, suggesting the reason why music is reported to have The most significant activity changes are reported for the
a positive influence on nonplanned purchasing decisions (Shiv dorsal striatum, a small structure of the brain that is part of the
and Fedorikhin [10]). human action-related reward system (ODoherty et al. [35]).
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KENNING AND PLASSMANN: HOW NEUROSCIENCE CAN INFORM CONSUMER RESEARCH 535
play a key role in this interaction (Canli et al. [39], Morris et al.
[40], ODoherty et al. [41] and [42]). The involvement of these
brain areas was reported in studies on the neural responses to
sensory stimuli and the receipt of money (Aharon et al. [43],
Blood et al. [44], Elliot et al. [45], ODoherty et al. [41], [42]).
Thus, either monetary incentives such as immediate discounts at
the point of sale, or a friendly salesperson, might exert a positive
impact on customer loyalty. In addition, we know that reactivity
in the striatum is prone to individual differences (e.g., because of
age, disorders such as depression). To date, such individual dif-
ferences have not been investigated in consumer research. Also,
the interplay of punishment and customer loyalty has not been
yet addressed in extenso in loyalty research.
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536 IEEE TRANSACTIONS ON NEURAL SYSTEMS AND REHABILITATION ENGINEERING, VOL. 16, NO. 6, DECEMBER 2008
In (2), the term represents the experienced reward at a cer- V. HOW NEUROSCIENCE CAN LEARN FROM
tain point in time . If is equal or greater 0, meaning that CONSUMER RESEARCH
the experienced reward is equal or greater than expected, this
should lead to satisfaction which in turn positively influences In the previous sections we have shed light on how con-
loyalty. Accordingly, if , the experiences were lower sumer research can benefit from neuroscience. In this section,
than expected which, in terms of loyalty theory, leads to disap- we address the perspective of how neuroscience can benefit
pointment and dissatisfaction. from knowledge in consumer research and behavioral deci-
In addition, (2) also incorporates another variable that has sion-making theory. Though it might be premature to delineate
been largely neglected in loyalty research: , the temporal delay these benefits completely, in the overall it is appropriate to
between the expected and the actual reward. Several studies in- speculate that the combination of consumer research and
vestigating the intertemporal choice indicate that there is a re- neuroscience might allow researchers to better understand con-
lationship between the value of a reward at the point in time sumer decision making and to learn more about how healthy
when it is predicted and the time when it is received. Generally, brains function in everyday decision making. In turn, this may
people have the tendency to prefer immediate rewards over de- help to identify specific consumption-related dysfunctions.
layed ones (Read et al. [55], McClure et al. [56]). For example, For instance, issues of persons suffering from addictions, or
McClure et al. [56] found evidence that an immediate reward from obesity or compulsive spending, are discussed in both
experience recruits brain areas different from those of a delayed consumer research and in clinical research, but little is known
reward experience. about the underlying decision-making mechanisms of persons
Finally, the temporal-difference learning model defines the with these conditions. While recent evidence indicates that
delta of the weighting factor as follows: overeating is affected by biases in decision making (Chandon
and Wansink [58] and [59]), insights into consumer decision
(3) making might, perhaps, increase the understanding of the
reasons people are obese and the knowledge of interventions
In (3), reflects the individual learning rate of the customer. that might decrease obesity behavior. For instance, Christakis
To the best of our knowledge, this variable has not yet been and Fowler [60] describe how weight gain occurs in social
discussed in the loyalty research. However, the learning ability clusters, and they stress a view that people are influenced by
of customers may play an important role in building loyalty. the appearance and behaviors of others. In consumer research,
this mechanism is referred to as anchoring, meaning that
C. Ad 3) Integration of Predicted and Experienced Rewards in judgments are based not on absolute values but on comparison
Decision-Making Processes with implicit reference points. One can speculate that people
who are susceptible to anchoring may have a higher risk for
In order to make advantageous decisions, it is essential that obesity. However, little is known to date about the neural
the brain is able to predict which decisions are advantageous and mechanisms of anchoring and how to influence it, although
which are not. Recent neuroscientifc studies have reported that
such understandings could be quite useful for health marketing
for such predictions and their integration in the decision-making
(e.g., Jones [61]). In addition, little is known about how insights
process, the ventromedial prefrontal cortex and the striatum are
from neuroscience might support the development of specific
crucial (ODoherty et al. [35]). Related to that finding, several
rehabilitation methods for recovering higher cognitive abilities
studies could show that activity changes in the ventromedial pre-
(e.g., after a stroke). As mentioned, the 2007 study by Koenigs
frontal cortex predict whether or not a particular brand is an indi-
and Tranel [20] provides evidence that people suffering from
viduals first choice (Deppe et al. [2], Koenigs and Tranel [20])
lesions in the ventromedial prefrontal cortex are unable to
Considering that all brain structures mentioned above are
associated with the entire process of the TDLM, it can be integrate brand-induced emotions into decision making. Taken
concluded that dopaminergic neurons in areas such as the ven- together with other studies by Bechara and Damasio [62] it can
tral tegmentum, in particular the nucleus accumbens, generate be concluded that this brain area is important for advantageous
a signal which reflects (Schultz et al. [34]). Recently, decision making. Moreover, consumer neuroscience may shed
fMRI-studies (Delgado et al. [49], ODoherty et al. [57], Mc- more light on the neural mechanisms associated with specific
Clure et al. [56]) have revealed that, as well as the striatum, the kinds of addiction like gambling or shopping (Reuter et al.
orbitofrontal cortex, the amygdala, and the medial prefrontal [63], Glimcher et al. [64], Bijou et al. [65]). Therefore, insights
cortex are crucial for successful learning. With respect to the from consumer neuroscience may help to identify early stages
findings of Plassmann et al. [17] that indicate that activity of those dysfunctions and contribute to the development of
similar to the above-mentioned brain structures predict whether better treatments. A better understanding of the human brain,
or not a customer is loyal, it seems possible to use the TDLM on the other hand, might enable marketing companies to sell
to explain how customer loyalty arises. One benefit of its unnecessary products to consumers (e.g., cigarettes or alcohol).
application to consumer research is that the TDLM yields to This dark side of consumer neuroscience, often addressed
a neuroscientific-based explanation of why it is difficult to by the popular press, needs to be discussed very carefully by
develop loyalty in some cases, while in others it is not. The researchers in consumer neuroscience. Moreover, consumer
degree of difficulty could depend on individual differences with neuroscientists should take care about the ways in which their
respect to the variables in the above-mentioned model. findings are presented by the popular press and are used for
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KENNING AND PLASSMANN: HOW NEUROSCIENCE CAN INFORM CONSUMER RESEARCH 537
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ACKNOWLEDGMENT
visual scene encoding in long-term memory for TV-commercials, J.
The authors would like to thank B. Scho and J. Niessing for Advertising Res., vol. 41, pp. 1322, Mar./Apr. 2001.
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Peter H. Kenning is Professor of Marketing at
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search interests are consumer behavior, consumer
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neuroscience, neuroeconomics, and marketing man-
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and Mathematical Modelling of Neural Systems. Cambridge, MA:
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years from now: The date/delay effect in temporal discounting, Man- value signals, and ways to alter/self-control/regulate
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rate neural systems value immediate and delayed monetary rewards, of the National Academy of Sciences of the United
Science, vol. 306, pp. 503507, Oct. 2004b. States of America and the Journal of Neuroscience.
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