Implicit Decision-Making Influences. Learning Objectives. Hidden Decision-Making Influences. Managing Marketing Investment Risk

Transcription

1 MKTG30008 L1: Learning Objectives Neurmarketing Intr Explain the unique cntributin f neurmarketing appraches fr marketing thery and practice Explain cntemprary marketing and media issues underpinning the grwth f neurmarketing research Cnnect and explain the rle f the sub-disciplines which cntribute t neurmarketing Managing Marketing Investment Risk Implicit Decisin-Making Influences Decisin-making influences may perate belw the level f awareness These are subcnscius influences; we are nt aware f these influences as they influence us Hidden Decisin-Making Influences Study New range juice prduct suppsedly Student recruited suppsedly t test a new range juice prduct Students ranked drinks depending n hw much they liked it, and indicated hw much they liked it. The belw faces were shwn n a screen at the time, subliminally flashing at times during the experiment. Marketing investments are risky They are speculative; it is unclear hw the market will respnd t the investment Predicting and measuring the impact f a marketing investment can be difficult Marketing activities can invlve multi-millin-dllar investments E.g. US Super Bwl advertising - $4.5mil base price per 30 secnd spt in 2016 Why the huge spend? Reaching mass audience Varying success rates, ften lw r unknwn E.g. >50% f new prduct launches fail Marketing Research Methds Implicit Drivers f Decisin Making Hw well can individuals reprt the influences n their decisins? Nrth, Hargreaves and McKendrick (1999) German and French wine brands given equal shelf presence in liqur sectin f supermarket; German r French music played n alternate days ver 2 weeks Cnsumers wh bught either win interviewed at checkut fr underlying purchase reasns French/German music days French utsld German/German utsld French 3:1 1/44 cnsumers nminated music as purchasing factr 86% ruled ut music as an influence n purchase decisin Winkielman, Berridge and Wilbarger (2005) Subliminal smiles impact n puring, evaluatin and willingness t pay Shifts in behaviur due t hidden influences Heavy bias in ways peple are nt even aware f

2 Further Questin Marks Further questin marks n reliability f self-reprted decisin=making influences Clinical neurpsychlgy studies suggest we create explanatins fr ur behaviur The left-brain interpreter: Split-brain research suggests that a built-in neural system (the left-brain interpreter) generates cnscius thught prcesses in respnse t largely autmatic trains f thught that run thrugh mental life (Michael Gazzaniga research) Implicatins ur cnscius thught prcesses can be an interpretatin f cnscius thughts and behaviur driven by subcnscius prcesses Memry lss acquired thrugh alchl abuse (Krsakff s syndrme) results in cnfabulatin: imaginatin in place f memry S what is neurmarketing? Neurmarketing (cnsumer neurscience) is the use f thery and tls frm the cgnitive neursciences t infrm marketing thery, planning and activities Thery Cgnitive Psychlgy + Neural Science + Ecnmic & Marketing Thery Tls Psychphysilgical measures + Neurimaging technlgies Neurmarketing Tlkit Cnsumer Research Limitatins Summary f influences that impact n reliability f cnsumer self-reprts Thught prcesses that ccur largely beneath the surface influence decisins Awareness/ability t reflect n thught prcesses that influence behaviur is limited Self-reprted influences n decisins may nt reflect actual decisin factrs Hw can we gain cnsumer insights withut being expsed t self-reflectin bias. Neurmarketing Data An alternative apprach fr gaining cnsumer insights Data cllected using bimetrics r neurimaging technlgy may predict cnsumer respnse mre accurately that cnscius/explicit measures (interviews r surveys) Falk et al (2010) Behaviur change in respnse t sunscreen messages predicted mre accurately by functinal magnetic resnance imaging (fmri) data than participants predictins Benefits f Neurmarketing Metrics Marketing measures derived frm neurscientific methds: May prvide a direct measure f cnsumer respnse t a stimulus Prvide an bjective viewpint n cnsumer respnses Are acquired at the time f expsure t the stimulus rather than pst-hc as in traditinal measures Regard explicit cnsumer viewpints as additinal/secndary respnse Imprtant Caveat: Must be a rbust link between bserved respnses and the psychlgical prcess prpsed t be driving the bserved respnse! Marketing Mix Black Hles Prmtin Prduct Pricing Distributin Brand Equity 50% f my ads wrk which 50%? Why d the nes that wrk, wrk? >50% f my new prducts fail. Which NPD cncept r final versin t pursue? Hw can we trust that what cnsumers say abut ur prduct reflects their actual behaviur? Hw d cnsumers value ur prduct? Hw d intangible benefits and csts impact n valuatin prcesses? Hw d we knw that the pricing strategy is crrect until after the fact? What impact d psychlgical prcesses such as framing have n channel chices? Hw d we measure the influence f the brand n the cnsumers? Hw d we incrprate intangible brand factrs in brand value? Neurmarketing Tlkit 1: Cgnitive Neurscience Bilgical fundatins f mental prcesses Cgnitive Psychlgy Sensatin and Perceptin Attentin Learning and memry Affect (emtin) + Neural Science Neurphysilgy hw the nervus system wrks Neuranatmy structure f the nervus system Neurmarketing Tlkit 2: Neurmarketing/Neurecnmic Theries Neurmarketing Tlkit 3: Psychphysilgy Measurement f physilgical prcesses that reflect internal states Psychphysilgical Measures Heart Rate/Respiratry Rate Muscle Tensin Pupil Dilatin Eye-Tracking Electrencephalgram (EEG) Magnetencephalgram (MEG) Psitrn Emissin Tmgraphy (PET) Functinal Magnetic Resnance Imaging (fmri)

3 Why neurmarketing nw? Cntemprary media challenges driving marketers t seek greater cnnectin with mre specific target audiences, with greater efficiency, and greater accuntability Lackluster perfrmance f traditinal metrics in cmmercial research New measures required t match demands f the new media landscape; e.g. engagement Mainstream awareness f significant authrs in neursciences; e.g. Damasi, Le Dux Dissatisfactin with traditinal black bx theries riginating frm ecnmics Need fr bjective measures Technlgy availability Cntemprary Media Issues The cntemprary media landscape is driving an even strnger emphasis n engaging cnsumers and measuring effectiveness Recap Individuals have limited access t thught prcesses that influence behaviur Neurmarketing research draws n direct and bjective measures f neural and physilgical prcesses assciated with cnsumer behaviur Neurmarketing research draws n insights frm the cgnitive neursciences t prvide a deeper understanding f thinking prcesses underlying cnsumer behaviur infrms marketing thery, practice and research

4 MKTG30008 L2A: Learning Objectives Cre Neur Cncepts Familiarity with cncepts f reginal brain specialisatin functinal neural netwrks, and their implicatins fr marketing thery and research Tn Tn and Aphasia Tn Tn demnstrates a specific type f aphasia a deficit in language prductin r cmprehensin An inability t turn thught int wrds Can arise due t strke, car accident, brain damage Brca s Aphasia language prductin impaired Wernicke s Aphasia language cmprehensin impaired The Mdular Brain The brain is mdular Aphasias demnstrate that brain regins tend t be specialised fr particular kinds f prcessing E.g. using language A particular brain regin invlved in prducing speech (Brca s area) A particular brain regin invlved in understanding language (Werncikes area) What Makes Up the Nervus System Neurns Glia Neurns Cells that specialise in sending, receiving and cnverting electrchemical (electrical/chemical) signals Neurns are the basic infrmatin-prcessing unit f the nervus system. In the brain generate brain activity signals Cells that supprt neurns Neurns prcess infrmatin by receiving and sending signals 1. Dendrites receive signals frm ther neurns 2. The cell bdy f the neurn (the sma) generates an all r nne electrical signal (the actin ptential) 3. The Axn sends the electrical signal t ther neurns The Cnnected Brain Neural netwrks supprt cmplex behaviur Thinking and behaviur results frm the actin f different brain regins that are functinally cnnected Cnnectins between specialised brain regins enable cmplex behaviur (e.g. understanding language and speaking) Nervus System Cmpnents Central Nervus System (CNS) brain and spinal crd Peripheral nervus system includes smatic and autnmic nervus systems Smatic nervus system cnnects the brain and spinal crd with the envirnment The Actin Ptential Signals travelling n neurns are electrical Neurns are nt directly cnnected, there is a gap between neurns (the synapse) The signal passing acrss the gap between neurns is a chemical signal (neurtransmitters) Neurtransmitters Neurtransmitters: Chemicals that carry neural impulses frm ne neurn t anther Travel acrss the gap between neurns and make the next neurn mre likely (excitatry) r less likely (inhibitry) t fire Neurtransmitters supprt cre behaviurs (including cnsumer decisin making) E.g. reward value and dpamine The value f rewarding stimuli is signalled by an increase in the neurtransmitter dpamine in brain regins linked with mtivatin. Mre dpamine = greater influence f a stimulus n impulsive behaviur

5 Grey Matter/White Matter Cerebral Crtex Crtex means shell A layer f grey matter flded arund the utside f the brain Grey clur due t heavy cncentratin f neurn cell bdies that generate electrical signals... brain activity White Matter Layer beneath the crtex made up mstly f axns cnnectins between different brain regins Reginalised Prcessing Each sense assciated with a specialised brain regin The frntal lbe: Integrates utputs frm ther brain regins Cmplex prcessing Many ther brain regins perfrm specialised functins E.g. inferir tempral lbe linked with bject categrisatin assigns perceptual bjects t categries (what is it?) E.g. Assembling facial features int a face Damage t tempral lbe results in inability t recgnise faces Subcrtical Regins Subcrtical brain regins that lie beneath the uter crtex play critical rles in regulating behaviur much f this beneath awareness Limbic System regulatin f emtins/mtivated behaviurs Fur F s: fleeing, feeding, fighting and sexual behaviur Basal Ganglia mvement cntrl and reward prcessing Fur Lbes Frntal Lbe Smell and Taste Thinking and Feeling Decisins after receiving infrmatin frm ther lbes Parietal Lbe Tuch Tempral Lbe Hearing Occipital Lbe Visin

6 Lbes Superir View What d we knw abut reginal specialisatin? (cnt ) Grwing appreciatin f functinal brain netwrks Cnnectins are dynamically activated between specialised brain regins when cperatin required t perfrm particular types f prcessing Particular patterns f activatin are assciated with specific mental states E.g. Music listening activates different brain regins depending upn current fcus f attentin: meldy, rhythm, verall frm f sng, meaning f lyrics, etc. Implicatins fr Marketing? Left Brain/Right Brain What is the difference between left and right hemispheres? Left and right hemispheres specialise fr different types f infrmatin Left high spatial frequency = best suited fr detail Right lw spatial frequency = best suited fr hlistic What d we knw abut reginal specialisatin? Fr marketers, understanding the rle f reginal brain specialisatin and functinal netwrks in specific cgnitive prcesses prvides: 1. Theretical Insight Enhance ecnmic thery f decisin-making and cnsumer behaviur thery by examining specific mental prcesses underlying cnsumer behaviur 2. Market Research Insight Examine reginal brain respnses that underpin cnsumer behaviur t infrm market decisin making Cnnectin t Perceptins 1700s facial features were linked with persnality characteristics 1758 Franz Jseph Gall prpsed that the brain cnsisted f distinct rgans f thught (faculties) Accrding t Gall, develpment f a specific mental faculty prduced an enlargement f the assciated brain regin and an enlarged bump n the skull ver the area Phrenlgy deducing the existence f persnality characteristics frm features n the skull