Download Table of Contents: Lecture 1: Introduction to Neuromarketing Lecture

Table of Contents: Lecture 1: Introduction to Neuromarketing Lecture 2: Smell and Taste Lecture 3: Touch and Sound Lecture 4: Vision and Attention Lecture 5: Emotion Lecture 6: Learning and Memory Lecture 7: Value Lecture 8: Decision Making Lecture 9: Neuroimaging in business Lecture 10: Biometrics Lecture 11: Neuromaketing ethics Neuromarketing Exam Notes Lecture 1 Consumer Research limitations: Advertising is becoming inherently risky as it entails high investment costs and often success rate is low or unknown. Traditional marketing research methods use things such as focus groups or surveys to help estimate the success of an advertisement. However, most of our decision-­‐making process is driven by factors that are ‘’beneath the surface’’. Therefore, a lot of our biases and learning processes are hidden from our conscience and our awareness of it is limited or even non-­‐existent. The implications of this for marketers is that asking the customers questions (i.e surveys) is insufficient to gather information as it often cannot really tell the true reasons driving their behaviour.. Neuromarketing can provide a direct measure of these signals. Marketing measures derived from neuroscientific methods: • Data collected using biometrics or neuroimaging technology may predict consumer response more accurately than conscious/explicit measures such as interviews or surveys • May provide a direct measure of consumer response to a stimulus • Provide an objective viewpoint on consumer responses • Are acquired at the time of exposure to the stimulus (instantaneous) rather than post-­‐hoc as in traditional measures • Regard explicit consumer viewpoints as additional/secondary response Neuromarketing: is the use of theory and tools from cognitive neurosciences to inform marketing theory, planning and activities • Theory: cognitive psychology, Neural Science, Economic & Marketing Theory • Tools: Psychological measures + Neuroimaging technologies The contemporary media landscape is driving an even stronger emphasis on engaging consumers and measuring effectiveness. Contemporary media challenges driving marketers to seek greater connection with more specific target audiences, with greater efficiency and accountability. Lecture 2a 4-­‐Lobes: (lecture 2 slide 15) • Frontal Lobe: Integrates outputs from other brain regions, responsible for higher level processing. • Parietal Lobe: (touch, somato-­‐sensory cortex) • Occipital Lobe: Visual cortex, What and where • Temporal Lobe: Speech and hearing The left and right hemispheres of our brain are specialized for different types of information: • Left hemisphere of our brain is good for fine detail (i.e language). • Right hemisphere is better for a course range of information or best suited for holistic (i.e emotional content in information). For marketers, understanding the role of brain region specialization and functional networks in specific cognitive processes provides: 1. Theoretical insight • Enhance economic theory of decision-­‐making and consumer behaviour theory by examining specific mental processes underlying consumer behaviour. • If we understand the way people are wired, how they live and what affects their behaviour, we can develop theories on how people make certain decisions. 2. Marketing research insight • Examine regional brain responses that underpin (support) consumer behaviour to inform decision making • Enables us to measure our consumers using certain tools Lecture 2b-­‐ Smell & Taste Olfactory (Smell) System The olfactory system provides capability to discriminate between thousands of different odours but not describe them • It is good at identifying different smells but its not good at analysing or describing them. • Odours generally consist of a mixture of separate odourants. However, odours tend to be treated as mixtures rather than made up of components. Olfactory (smell) perception is influenced by experience: Smell is very exposed to learning processes in that we need to learn different smells. • When you first encounter a smell, what you are possibly encountering is a mix of hundreds of other different odours (activating multiple locations in the olfactory bulbs), and our perceptual ability to recognize that smell is low. • Smell recognition involves detecting a familiar pattern of olfactory areas triggered by separate odourants to form a familiar pattern of odourants= recognisable smell object. • It takes around 10 exposures before we can recognize that certain types of molecules go together to create that certain smell (pattern). This pattern recognition needs to be learnt and when that pattern is formed, you get that single holistic object. Linking smell to marketing: • Experiencing a smell more enhances identification of ‘’smell objects’’. Therefore, smell perception can be educated through sampling • Marketers can enhance recognition and smell preference by linking smell exposure with brand identification. (i.e Abercrombie & Fitch) Olfactory sense is the only sense that connects directly with the Cortex without first passing through the brain’s attention gateway (Thalamus). Olfactory tracts connect directly with brain structures that: 1. Mediate emotional responses to odours (amygdala) a. Amygdala can bias our behaviour such as approach or withdraw without us being consciously aware. 2. Are linked with memory encoding (hippocampus) a. Most strongly linked with encoding of autobiographical memories (memories related to a person’s experience) due to direct connections with primary memory encoding region. b. Therefore, if you have a product with a unique smell that can help link to a particular emotion or experience, then you should leverage it. 3. Are linked with a frontal region (orbitofrontal cortex) that also processes gustatory (taste) signals Impact of olfactory system on emotions: • Smell is the only sense that gets direct access to the brain without passing through the Thalamus. • Smells can affect our emotion, whether we want it to or not. • It is tightly connected to the amygdala. The amygdala can give us fast signals from the external environment and create bias in our behaviour. • It motivates behavioural responses such as approach or withdraw. This is done without consciously thinking about it. Pleasant scent as part of the product (ie as a product attribute): • Enhances product quality perceptions and product evaluations • Evokes positive associations (eg fresh scent = clean laundry) • Effects attributed to functional dimensions of the product rather than the scent. o We believe that the product function is better if the smell is good • Enhances long-­‐term memory for other non-­‐scent product attributes • Increases attention and memory for brands (helps facilitate memory encoding)