Neuromarketing in Market Research

Question

Neuromarketing has revolutionised the ways to understand consumer minds and behaviours.

In the class, we learnt many cases about how neuromarketing methodologies could be applied to tackle real business/marketing problems.

Choose one of the options to write your term paper. Option One: Write an essay about neuromarketing applications. What are the insights by using neuromarketing methodologies (i.e., what is new)?

Why traditional marketing research methods are inferior to uncover these insights?

Are neuromarketing methodologies complementing, competing or replacing traditional marketing research methods?

To help you crack the topic, think about why testing consumers’ attention to ads that are displayed on a different device (e.g., desktop, laptop, mobile and tablet) using eye-tracking?

Option Two: Neuromarketing is founded on the theories and methodologies in cognitive neuroscience.

Think about cognitive neuroscience more broadly, how could its findings be translated into innovation and new products development on the market. We briefly mentioned this point in class.

For example, how engineers learnt from cognitive neuroscience research about human intention and integrate the knowledge to improve self-driving cars in detecting the intention of pedestrians (You can also refer to this special issue in Nature,https://www.nature.com/articles/s42256-019-0103-7 talking about how engineers could benefit from cognitive neuroscience to design a machine with feeling analogues).

Elaborate your perspective on how cognitive neuroscience could contribute to market innovation.

Answer

The application of technological advancements has led to the study of the human brain in various capacities. Neuromarketing is the application of neuroscience knowledge into marketing. Actually, this type of marketing studies consumers’ nervous system as well as the rain. Basically, this type of marketing uses technologies to observe brain activity of the consumers.

Such activities include heart rate, eye-tracking galvanic skin response or even facial coding. The main aim of neuromarketing is to determine how consumers respond to marketing messages (Peraira et al., 2019).

In the contemporary world, technology has led to the introduction of computerized marketing practices such as the ads displayed on websites. The response that consumers make for a particular ad varies from one person to another. The difference is contributed by the nervous system and the brain activity of the consumers.

Neuromarketing focuses on the minds of consumers. Researchers use technologies that can observe biometrics to determine the brain activity of the consumers. The human brain controls almost all body activities. It is the central system of the human body.

Therefore, anything that affects the brain is likely to affect human understanding and thinking. As far as marketing is concerned, researchers have used this strategy to market different products. One of the neuromarketing practices includes tracking eye movements to see which part of the webpage that attracts the attention of the consumer (Cosic, 2016).

Research indicates that some ads grab consumers’ attention than others. Market researchers have tried to determine the version of an ad that attracts consumers most even though the ad is featuring a similar product. This essay analyses the effectiveness of neuromarketing about advertisements. The essay also discusses the importance of neuromarketing over traditional forms of marketing.

Sensory marketing in retail is an example of a neuromarketing application. With the continuous developments in technology, retail marketers apply brain activity to determine customers’ take on a particular product.

As far as sensory marketing is concerned, the internet has enabled the transfer of products from physical to the virtual interactive world. Today, consumers can view the specifications of the products that they intend to buy. They do not have to travel to the outlet to do window shopping.

The pictures of goods that pop up in various webpages are likely to stimulate the five senses. Due to the increased stimulation of the five senses, consumers are expected to make more purchases. For example, an appealing food item on the webpage can improve the consumer’s desire to have more.

The brain centrally controls the human senses; therefore, anything that influences brain activity is likely to affect consumers’ decision to buy a product. The human brain plays a crucial role in determining customers’ tastes and preferences (Horska and Bercik, 2017).

The knowledge of the brain is also applied in determining perfect customer behavioral segmentation. Ideally, consumers behave differently in certain circumstances. The consumers’ behavior has an impact on the purchasing decision that the consumer is likely to make. Marketers have used technology to determine customers’ behavior on the consumption of particular products.

Neuromarketers are interested in segmentation depending on various factors, such as the age of the brain or gender. The composition of the brain of the female and that of male consumers are used to segment the market. The brain activities of the youth are different compared to those who are in their late 70s and 80s (Bakardjieve and Kimmel, 2017).

The main course of brain activity difference is the composition of the neurons and the entire nervous system of human beings. The development in neuroscience has enabled the segmentation of markets based on brain activity. Generally, neuromarketing has been applied in market segmentation.

In regards to neuromarketing methodologies, marketers should see through the consumer’s eyes with eye-tracking. The movement of an eye is a crucial strategy to determine whether the brand is appealing to the customers or not.

The equipment used for eye tracking is potable. Therefore, researchers can use it at any place provided that the research sample has been identified. Due to the portability of the modern eye-tracking equipment, the researcher can create real-time and register the eye gaze of consumers.

The researchers tend to analyze the viewing patterns of the consumers when they focus on a particular brand. Also, eye tracking can be used to identify whether the adverts of certain products on television attract consumers’ attention or not. Some adverts are more attractive as compared to other (Gani et al., 2015).

The rationality of consumers enables them to focus on the advert of their choice. The decision to like an advert of a product can be influenced by brain activity. If a consumer prefers an advert of a particular brand, he or she is likely to purchase that specific product. Consequently, a brand that does not attract customers’ eyes may not be acquired by the consumers.

Taking a look at the consumers’ brains is a principal methodology that is used by neuromarketing and researchers. Neuromarketing tends to focus on what people think and not what people do. To read the consumer’s brain activity, marketers use various medical tools such as fMRI and EEG.

The equipment is used to measure the brain activity of people concerning a particular aspect. Researchers dealing with these tools tend to compare the results from each consumer to come up with a final report on the influence of the particular product or brand.

Today, marketers use brain scanners to crate ads and websites that are likely to attract consumers. This strategy helps marketers to produce products that meet customers’ tastes and preferences. Customers can also get products that make them happy. In the long run, both consumers and marketers benefit from the form of marketing in question.

Apart from brain scanning, facial coding is a new strategy that is used by modern neuro marketers—marketers who use this strategy aim at using the smiles on customers’ faces.  Facial expressions are used to determine whether the product is appealing to them or not. The idea behind learning from facial expression dates back to the early years.

The contribution s of psychologists such as Charles Darwin is used to explain facial expressions. Facial coding equipment can measure reactions to stimuli that are relevant in the field of marketing. For instance, if an ad makes someone smile, it shows that the brand can make that person happy.

Consequently, an advert can also make someone sad. In such a case, the consumer is not likely to buy a product that makes them unhappy. Instead, they will look at those ads that can put a smile on their faces.

Many neuromaketers use other psychological methods such as mind tricks. Psychological tricks are commonly used in countries such as the US and the UK. Removing the dollar sign in the pricing of a product to European customers may increase the sale of that particular product. Likewise, removing the euro sign in the pricing of goods in the US may increase the sale of that product.

The influence of exchange rates affects consumers’ decision to buy goods. Therefore, applying mind tricks can enable marketers to convince consumers to buy a product. Marketers should aim at preventing consumers from losses.

An example of neuromarketing that has been applied by different suppliers is using sound and color to sell more products. Research shows that music with a powerful bass makes people attend to dark objects. Music also attracts attention hence enabling consumers to have a look at the product. Sound and color have immediate feedback on marketing.

Also, some people are attracted to specific colors than others. For instance, women are attracted to bright colors such as white and pink. Therefore, women are more likely to buy goods from these two colors. Marketers use this strategy to gain a competitive advantage in a particular market segment.

Another prominent neuromarketing example is the persuasive way to frame scarcity in advertisements. Markets suggest that consumers are more likely to buy goods that are said to be scarce. Many advertisements inform consumers that they should buy before the stock gets finished.

The aspect of scarcity is a psychological trick that marketers use to attract more customers. Ideally, customers may feel that they will miss the product if they do not buy it at that time (Knutson and Genevsky, 2018). This strategy is useful where the company has much good in the stack, and they would like to reduce it.

Most of the traditional marketing techniques did not incorporate the importance of human brain activity in consumer decision making. Unlike traditional marketing techniques, neuromarketing research allows for better prediction of real market figures over a specified period.

The impact of brain functioning can be used to determine consumers’ behavior in the foreseeable future. In the early centuries, marketers could not predict actual future changes in the market.

The impact of continuous improvements in marketing technologies has enabled marketers to understand the current and future markets. This is one of the reasons why traditional marketing research methods are inferior to uncover the insights of neuromarketing (Harrel, 2019).

Neuromarketing techniques can show how to engage customers emotionally. Most of the traditional marketing research techniques engaged customers physically. In the changing world, people are migrating from physical to virtual platforms.

The traditional marketing research strategies did not incorporate the use of virtual platforms. On the other hand, neuromarketing methodologies are changing the scope of marketing.

Furthermore, the modern marketing research technique in question is complementing traditional marketing research strategies. Emotional engagements enable researchers to get more insights from consumers. They are likely to collect exclusive information about the consumption of a particular product. Such information can be used to improve the sales volume of the company as well as the competitive advantage.  

Generally, neuromarketing techniques are complementing traditional research methods such that it addresses the problems of emotional engagement. Traditional marketing research techniques could not address such problems.

However, some of the fundamental insights of traditional marketing research, such as selecting a sample, are relevant in the said modern marketing research technique. Apart from complementing, neuromarketing technologies are also competing with traditional marketing strategies. Companies that are using current marketing strategies are likely to do better than those that are using conventional marketing strategies.

The use of neuroscience techniques in marketing has eased the processing of data collected from consumers. Marketers who are using this strategy can quickly get valuable information from the consumers and use it to predict any changes in the market environment.

In most cases, traditional marketing techniques are used to identify a problem and come up with a solution at the same time. However, modern marketing techniques in question can be used to come up with a long term solution to marketing problems.

Consumers’ emotional influence is a long term ideology that can help marketers to understand the market dynamics. The availability of different types of brain screening tools is also changing marketing research from traditional methods to modern neuromarketing.

In summary, the emotional study of consumers is an essential aspect of marketing. The human brain activity helps in making decisions. Therefore, anything that affects the human brain can determine the reaction of that person. Neuromarketing techniques incorporate the impacts of neuroscience knowledge in the field of marketing.

Today, a more significant number of companies are implementing this type of marketing research technique. This type of marketing technique is applied in different ways, such as sensory marketing. Brain activity is used to determine how a given product can influence the five senses of human beings.

Moreover, brain reading tools such as the EEG play an essential role in determining the emotional reaction of consumers on a given brand. The brand that is attractive to the customers is likely to be produced in large quantities to meet the market demand. Neuromarketing is replacing the techniques used by traditional marketers.