Neuromarketing

Presented by:-
Kirti Dhingra (PGP21082)
Samiksha Jain (PGP21162)
Sakshi Sharma (PGP21160)
Ayushi Jain (PGP21038)
Dixsha Goswami (PGP21053)
Avinash kumar (PGP21033)

NEUROSCIENCE
 Neuroscience, which enables a deeper understanding of
human behavior by measuring, analyzing, and visualizing
underlying thinking processes, can provide a connection
between what consumers do and why they do it.
 Today, many leading businesses are applying neuroscience
to enhance the delivery and effectiveness of marketing
messages, to improve the usability of software and
applications, and to price products and services more
effectively, among other areas.
 For example, consumers may not be able to articulate
exactly what they liked or disliked about the experience.
Neuro scientific methods can help reveal the precise
moment at which the user became frustrated, or which
pieces of content prompted the most neurological activity.

Neuroscience & Consumer decision
making
Neuroscience can shape future theory and models
in consumer decision making and suggests ways
that neuroscience methods can be used in decision-
making research.
• Understanding Heterogeneity
• Understanding value and its computation
• Understanding strategic contributions to choice
• Hypothesis generation and constraints
• New types of predictions

Neuromarketing
 Neuromarketing is an emerging branch of neuroscience
in which researchers use medical technology to
determine consumer reactions to particular brands,
slogans, and advertisements.
 Neuromarketing uses neuroscience to reveal
subconscious consumer decision making process. They
study brain, biometric responses & behavior to
understand & shape how consumer feel, think or act.
 Example:- By observing brain activity, researchers in
lab-coats can predict whether you prefer Pepsi or Coke
more accurately than you can.

Brain Imaging technology
There are numerous types of method
Used when conducting neurological research all with
the purpose of trying to view the activity that occurs
within the brain during a certain activity or behavior.
Methods are as follows:
 fMRI (functional magnetic resonance imaging)
 QEEG (quantitative electroencephalography)
 MEG (magnet oencephalo graphy).

Neuromarketing: The Hope or hype of
neuroimaging
 Hope:-
1.A prominent hope is that neuroimaging will both
streamline marketing processes and save money.
2. Another hope is that neuroimaging will reveal
information about consumer preferences that is
unobtainable through conventional methods such as
questionnaires and focus groups.
 Hype:-
Marketing is not interested in science or complexity. A
marketer wants to increase the conversion ratio with a
solution that just says ‘this advertisement will generate
lots of traffic to our web shop’ or ‘this online quote
generator will increase sales’.

Why use brain imaging for marketing?
 More efficient trade-off between costs and benefits.
 Neuroimaging will provide marketers with information that is not
obtainable through conventional marketing methods.
 Neuromarketing can provide important but complex data to companies
that target a global audience. While product testing may provide similar
neural responses in American and Asian subjects, for instance, the
marketing implications may be very different. “Expressions of happiness
in some Eastern cultures are expressed as a sense of calm or peace,
whereas in some Western cultures, happiness means jumping around
with joy and excitement,”

fMRI Technology
• The fMRI method is currently the most popular
amongst marketing companies, since it utilizes
mainstream technology to produce clear images of
real-time brain activity. fMRI technology gives people
the opportunity to actually visualize the activity
patterns in their brains.
• The harder a specific area of the brain is working, the
more oxygen it requires; so when the fMRI machine
scans the brain, it picks up on the areas with
concentrated amounts of hemoglobin and displays
them as regions of high mental activity on the
computer screen.

COCA COLA V/S PEPSI
Research done for coke v/s Pepsi through use of fMRI, shown results that “a
preference for Coke is more influenced by the brand image than by the taste
itself”.
Outcome of these researches were bit interesting but could actually cause your
brain to believe something that contradicts what the rest of your body thinks is
unnerving, to say the least

EEG Technology
• EEG measures electric product of brain activity, when brain
undergoes a stimulus.
• A number of electrodes are placed on scalp of subjects, on
certain areas in order to measure & record the electricity
for that certain spot.
• For this analysis, voltage & frequency are measured for
each subject & compared with data collected through
marketing stimuli.
Researchers, from the Max Planck Institute in Leipzig, found
that it was possible to predict from their brain signals which
option they would choose seven seconds before they
consciously made their decision.

Use of EEG Technology
• “In research of checking engagement to super
bowl commercials and tracking shoppers in
supermarkets, found that storyline wins every
time. If you want to lose someone’s attention,
have several storylines in your commercial.”

EYE TRACKER
A research proved through eye tracking glasses
that a single eye movement takes just 200
milliseconds, the time a product in store gets to
persuade a shopper to buy it. And it only takes
one eye movement to change their behavior.

FACIAL CODING
It measures changes in facial expressions that
are typically imperceptible to the naked eye to
identify emotional reactions; this technology
leverages image recognition, machine learning,
and deep learning algorithms.

Hyundai used EEG Technology(2011) with 30 people to make
exterior changes of automobile before manufacturing &
market them.

Frito-Lay, which in 2008 hired a
Neuromarketing firm to look into
how consumers respond to Cheetos,
the top-selling brand of
cheese puffs in the United States.
V/S

BASIS EGG fMRI
Cost Easily accessible Extensive funding
Measure brain
activity?
Directly Indirectly
Portability Portable Not portable
Level of
expertise
Some training Extensive training
Temporal
resolution
Tight & Fixed Low
EEG Technology V/S fMRI Technology

Value signals important for brand decisions

Basic computations involved in
making a choice

Reasons for Lack of Neuroimaging in
Marketing
Neuroscience & Cognitive Psychology can be
intimidating subjects.
Neuroimaging seems unattainable in own
department.
Lack of knowledge about existing technologies
like EEG, FMRI etc.
Moral ethics in applying NI to find the “buy
button of brain “ & creating advertising
campaigns that will be resisted by consumers due
to fear.

Controversy
This was argued that any power
hunger neuro scientist can use this
technology to manipulate the public
desire for specific products, or that
the research could be used in the
realm of politics and propaganda,
dragging us down a slippery slope
toward totalitarianism and war.

Conclusion
 Neuromarketing is a handy tool for marketers
in research process.
 Help to examine cultural influences & brand
perception.
 Applicable in every industry.
 Has pros as well as cons.

Neuromarketing

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