Neuromarketing

 What is Neuroscience?
Neuroscience is not a new field but now it is consider as an emerging field in this era. It is
basically the study of human nervous system. In simple it studies the brain to check how a
human think, feel, perceive things and what are the activities involves behind human actions.
Neuroscience has divided into many branches. If we take a look on its branches then we can
understand the importance of neuroscience and its studies in this modern era. People are the
same as they were in the past but they change their thinking and perceiving level about things.
E.g. if a business want to check that how customer perceive its product, better way to get the
answer of this is to use neuroscience techniques like EEG or MRI, instead of asking them “ Do
you like our product?” may be you not got satisfied answer. Sometimes people do not show
serious behavior. But Neuroscience and psychology combination, a new way to check your
marketing effort can help you to get better answer about your question.

Everyone has its own level and way of thinking. Neuroscience and psychology are helping in
better understanding how people think in different situations and what are the human parts
are involve in it.

Neuromarketing is helping the businesses in branding, making effective advertisements, price

setting and designing product and packaging.

Neuroscience is not just focus on studying human nervous system. It broadened its area of
study. It is the combination of many fields like Mathematics, physiology, biology, chemistry,
psychology and computer science.

 What is Psychology?
We can say that Psychology is similar as neuroscience both have link with mind but for
difference we can say that psychology focuses on human behaviors. Psychology identifies how
human behave in different situation like when it interact with group of people. Neuroscience
and psychology by combining as neuropsychology is now an important branch of Neuroscience.

 Major Focuses of neuroscience:

1- Behavioral Neuroscience - check how brain upgrade or modify behavior.

2- Cognitive neuroscience – related to thinking and perceiving pattern of mind.
3- Neuroengineering – evaluate the change in neural system through engineering
techniques.
4- Neuroimaging- identifies brain diseases and read the human mind.
5- Neuropsychology – Focus on neural system and connection of brain with other body
parts
6- Cultural neuroscience – Focus on the identifying the cultural impact on humans.

 Neuromarketing:

Neuromarkeing studies the customer brain responses (Thinking, feeling and Judging) to
check the effectiveness of marketing campaigns, advertisement and product. It
commonly uses neuroscience techniques such as fMRI and EEG to measure the
response.

Neuromarketing tells marketers about:

1- On which bases customer make decisions

2- Which brain activity involves in customer decision

 Some common Marketing Techniques:

1- Eye-Tracking:
As name show that it track the eyes. Where customer eyes move it track them and in
results it shows where customer was more focused. Like customer consistently see face
o person in advertisement or product color etc.
It is a small device customer can easily wear it.

2- Functional MRIs:
It has dual benefits. It is not only eye racking but also measure brain activity which
provides information about how customer thinks and feels about the product. It is most
costly techniques of neuromarketing but provide more detail information about
customer.

3- Facial Coding:
Eye tracking focuses on eyes movement and fMRI focuses on brain activity. Similarly,
facial coding focuses on face. When face s any movement, sensors captured it and
translate its meaning.
4- Sensory Marketing:
Through sensory marketing, marketing draw results about brand preference. It may be
sound or smell which effects the customer decision.

5- Neromarketing Mind-Tricks:
Like price written as $14 has negative impact on customer as customer feel lose. Write
your price on product as 14.00 or 13.99. These type of mind tricks are used by
marketers to increase by selling.

6- EEG:
It uses electrodes which measure the electrical waves produced by brain which indicate
customer is in anger or pleasant mode.

Experiments of neuromarketing:

1- The importance of eye gaze

Method used: Eye-Tracking Technology

Procedure: Breeze (2015) conducted this research on advertisements by using 16

subjects. HE used eye-tracking technology to check the eye movement of subjects
while watching ad.
Findings: He found that people more focused on baby face in the advertisement.
When baby saw them they also look at them not anywhere else. (Dooley, 2005)

Conclusion: Breeze suggested that “Use attractive face in ads to gain customer
attention but must keep in mind face look at what you want your viewer see.”

2- Pepsi vs. Coke Test

Method used: fMRI Technology

Procedure: (McClure et al., 2004) conducted study on 40 participants. Research

was based on 2 parts. (Blind and Non-blind)
In first part, when participants could not see the drinks. They drank both Coke and
Pepsi but Pepsi won. Reason was that, due to test they might be prefers Pepsi and
 brain activity which generated response was “Ventral Putamen” (reward system of
mind).
In second part, when non-blindly Pepsi and Coke was served. Coke won. 2 brain
activities involve in that case. One was Medial Prefrontal Cortex which is related to
cognitive functions like thinking feeling and judging … etc. Second was Hippocampus
which related to cultural influence over preference.
Findings- Changing in results in both conditions was due to brand image, marketing
messages and advertisements. Coke earned a good image in customer mind due to
its marketing efforts Therefore, or coke people shown their feelings and experience.
Pepsi might be good in taste therefore participants like it. (Phanesh-avr4033, 2012)

Conclusion- Build our brand image focuses on your marketing efforts and
advertisements.

3- Frito-Lay experiment by using neuroscience to test packaging and

design
Method used- EER Technology

Procedure- By using EER technology, Frito-Lay conducted his research to check

either shiny packaging was attractive or not.
Participants were allowed to answer in positive, negative or neutral option.
Frito-Lay discovered that when participants looked at the shiny bags the mind
portion which indicated about with feelings of guilt known as Anterior Cingulate
cortex was activated.
Findings- People preferred matte packaging over shiny. (Burkitt, 2018)

Conclusion- Frito-Lay converted all its shiny packaging into matte. Result was in
increasing sales of potato chips.

4- Hyundai Prototype Testing

Method used- EEG Technology

Procedure- Hyundai used 15 men and 14 women in its experiment. They were
asked to stare different parts of the vehicle for an hour like bumper body and tiers.
All participants were evaluated through EEC technology. Test included 2 brain
 activities (Feelings and thinking). Feeling associated with the middle of the brain and
thought associated with logical portion of the mind.
These brain activities showed the preference o participants about car.
Finding- Participants more focused on the exterior of the Hyundai and wanted to
change it. People attracted by good design. (Prezi, 2015)

Conclusion- Hyundai brand manager asked carmakers to change the exterior

according to EER results.

5- Campbell’s experiment to check consumer Behavior

Method used- Biometrics

Procedure- Campbell thought people had emotional feelings about their products
and what kind of improvement they want. It used biometrics to evaluate customers.
Campbell used set of design changes and monitored how customer response them
(like or dislike).
Findings - Campbell found there should be different color for different lines, used
human face and minimize the logo size. (Dooley, 2005)

Conclusion- there would be significant Increase in the Campbell’s sales amounted

12%.

6- National cancer institute neuroscience experiment to check ad efficiency

Method used – fMRI and self-report measure

Procedure – 31 participants were the part of that experiment. One was excluded
due to excess of emotions. 3 campaigns (A, B and C) were designed with time limit of
90s.
During fMRI measure brains of participants showed more activities for campaign C.
Medial prefrontal cortex Showed activities for Campaign C.
Findings- C campaigns had more efficiency because it is relevant to its purpose and
had accurate information. (Emily B. Falk, Elliot T. Berkman, and Matthew D.
Lieberman, 2012)

Conclusion- National cancer institute then aired selected ad to public.)

7- Neuroscience experiment to check customer eye movement on menu
Method- Eye tracking

Procedure- a restaurant was selected for experiment. Customer viewed menu and
evaluated through EEG technology.
Findings- Whether menu is double or triple folded customer looked at the middle
of the menu. Mostly, customer orders what is the front of eye. (Choi, J.G., Woo, B.
W., Mok, J.W., 2010)

Conclusion- Place main or basics items at the middle of the menu then left and
then right.

8- PayPal experiment to check customer priorities

Method- EEG technology

Procedure- By using EEG technology PayPal evaluated its customer. PayPal

developed an advertisement which focused on speed and convenience.
Findings- People preferred convenience and speed. Speed was more than safety
and security. (Staff, 2008-17)

Conclusion- PayPal launched the advertisement then. PayPal now focused on

speed and convenience with Security and safety.

9- Price Setting Experiment

Method used – Not described in research
Procedure- This experiment did by Singapore researchers Monica Wadhwa and
Kuangjie Zhang. They checked the effects of rounded price and non-rounded price or
different products.
Findings – Rounded prices and non- rounded prices are felt right, I it matches with
customer thinking. (Dooley, 2005)

Conclusion – set your price according to your product nature and what customer
thinks about your product.
10- Influence of light and color on consumer behavior
Method Used- Survey questionnaire, EEG Technology

Procedure- 15 participants were used in the experiment. 5 types of lights

(Halogen, halide metal halide 2, LED and florescent) with different colors (Green,
Pink, Yellow, Red, and Blue) were used.
Experiment had 3 phases:
1st phase- participants gave physical response.
2nd phase- participants were examined through EEG technology. Brain activity
divided into Alpha and Beta rhythms. Alpha based on emotional phase and
addressed the sub conscious response. Beta based on problems solving and
intellectual phase and addressed the conscious response.
3rd phase- examined the results.
Findings- On the base o survey, participants considered halogen and metal halide
most attractive due to high intensity of lights and LED and florescent least attractive.
Through EEG, participants’ reaction varies with the type of light. Most emotional
response generated for metal halide (150w) and least for metal halide (70w) and
halogen. Most brain activity found at the right side of the brain which was emotional
and less rational part. (Horská, E., & Berčík, J. 2014)

Through questionnaire, 64% people consider the yellow color most attractive, red
18%, then green, pink and blue. Through EEG, purple, blue and yellow were the
most rationally justified color.
Conclusion – Lights and color had significant impacts on customer preference.
Appropriate color captures the customer attention. Lights had impact on customer
brain as most emotional reaction was recording or florescent because it is used in
every retail shop.

References:
1- Dooley, R. (2005). Child labor: put the baby at work! Retrieved september 23,
2018, from neuromarketing by roger Dooley (et al):
https://www.neurosciencemarketing.com/blog/articles/baby-heat-maps.htm

2- Phanesh-avr4033. (2012, September 19). Neuromarketing coke Pepsi study.

Retrieved September 23, 2018, from scribd.com:
 https://www.scribd.com/document/106357808/Neuromarketing-Coke-Pepsi-
Study

3- Burkitt, L. (2018). Neuromarketing: companies use neuromarketing for consumer

insight. Retrieved September 23, 2018, from Forbes:
https://www.forbes.com/forbes/2009/1116/marketing-hyundai-neurofocus-
brain-waves-battle-for-the-brain.html#1db4053617bb

4- Prezi. (2015, July 12). Hyundai did a neuromarketing study that had 15 men and
women. Retrieved september 23, 2018, from prezi.com: https://prezi.com/-
gustg3pchgt/hyundai-did-a-neuromarketing-study-that-had-15-men-and-
women/

5- Dooley, R. (2005). Your brain on soap. Retrieved september 23, 2018, from
Neuromarketing by Roger Dooley (et al):
https://www.neurosciencemarketing.com/blog/articles/your-brain-on-soup.htm

6- Emily B. Falk, Elliot T. Berkman, and Matthew D. Lieberman. (2012). From neural
responses to population behavior: neural focus group predicts population-level
media effects. PMC, 23(5), (s).

7- (Choi, J.G., Woo B.W., Mok, J.W., 2010. An experiment of Psychological gaze
motion: A reexamination of item selection behavior of restaurant customers,
journal of global business and technology (06/10), Vol. 6, NO. 1, P.68

8- Staff, A.-o. (2008-17). Neuromarketing: using neuroscience to super charge

results. Retrieved September 23, 2018, from Act-on: https://www.act-
on.com/blog/neuromarketing-using-neuroscience-to-supercharge-results/

9- Dooley, R. (2005). How to set the right price every time. Retrieved September 23,
2018, from Neuromarketing by Roger Dooley:
https://www.neurosciencemarketing.com/blog/articles/round-pricing.htm

10- Horská, E., & Berčík, J. (2014). The influence of light on consumer behavior at the
food market. Journal of Food Products Marketing, 20(4), 429-440.
 Implications from Neuromarketing experiments for new restaurant:

1- Dooley (2005) wrote in his paper about Breeze (2015) research. Breeze (2015) explained
by using attractive faces in ads we can gain customer attention. So, for new restaurant if
we use people in ad then make sure they are attractive and hire attractive staff. And
most important thing, people you hire for advertisement should focus on what you want
your viewer to see. Because where they will look people will look at there.

2- McClure et al., (2004) conducted research on Pepsi and coke, which was published by
Phanesh-avr4033 (2012), showed the reason of preference of people about Pepsi and
coke through neuromarketing. I suggest restaurant should focus on its image to make it
acceptable in public. For this purpose restaurant must take its marketing efforts
seriously and create effective advertisements. Other most important things give priority
to culture then people will give you. According to McClure. (2004), people have feelings
and emotions about what they consume. Moreover, consider the culture of the region
important. Deal with people according to their culture.

3- Burkitt (2018) wrote about the Frito-Lay why it changed its shiny packaging. Because
people perceived shiny color negatively. So I suggest that restaurant should use matte
colors for its exterior and interior design.

4- Prezi (2015) explained about the Hyundai experiment, why the change the exterior of
car. Make 2 or 3 design of your restaurant exterior. And approve them from your
customers. Allow them to evaluate it and ask them their suggestions will be
appreciated.

5- Dooley (2005) is a neuromarketer. He wrote about Campbell research. How Campbell

made changes and gain profit. I suggest restaurant should use combination of colors to
design its menu to attract the customer. It can be used happy face in its advertisements
and billboards and use small logo.

6- Ad will be effective it must be relevant to subject and have proper information. (Emily B.
Falk, Elliot T. Berkman, and Matthew D. Lieberman, 2012).
Focus on your ad efficiency clear all the contents that you want your future customer
will read and then air it.
7- Make your menu attractive. Your menu is your profit. (Choi, J.G., Woo, B. W., Mok, J.W.,
2010)
Place your strategic dishes at the middle of the menu. Then come left and right side.
Research found that people mostly order those things that are in front of their eyes.
Make segments of your menu which help your customer to make decision quickly.

8- Staff (2008) wrote about the PayPal research. PayPal found that speed is more than
safety and security. So I suggest that restaurant should provide convenience in the form
of service and location. If you are giving delivery option then make sure you deliver on
time.

9- Dooley (2005) explained different researches about how to set the right price. Most
recent research he xplained about the rounded price and non-rounded price.
According to Lynn, M., & Helion, C. (2013), studies gave poor results either people
prefer rounded price or non-rounded price. Lynn, M., & Helion, C. (2013), said pay-what-
you-want is a situation that can help you to understand what customer want to pay.
They Explained 2 cases in which customer paid amount in rounded price. So, I suggest
set rounded price to make feel free and less stress to your customer.

10- According to Horská, E., & Berčík, J. (2014), Light and colors have strong impact on
customer and it is an important tool in marketing that effects consumer behavior.
I suggest use high intensity light help customer to decide fast. And 2nd use Red or yellow
color, these color increase appetite for exterior.