Marketers have done a lot of exciting things with Neuroscience methods in recent years, and

1. Neuromarketing
©wimeuverman.nl
IS12 Psych! Conference: Marketing to the Mind
Dharol Tankersley, PhD Cognitive Neuroscience
Data Analyst, Schipul Technologies

2. I. What is Marketing?
II. What is Neuroscience?
III. What Neuroscience CAN do for
Marketing
IV. What Neuroscience can NOT do
for Marketing

3. I. What is Marketing?
A system to discover and satisfy needs of
people (HMT)

4. Goal of Marketing
Ø Identify consumer needs
I. What is Marketing?
Ø Solution - product/ service

5. Goal of Marketing
A system to discover, satisfy and influecne
desires of people (HMT)
I. What is Marketing?
Measure
Desire
Purchase

6. Traditional Measures of Desire
What do I desire?
I. What is Marketing?

7. Traditional Measures of Desire
What do you like?
I. What is Marketing?
Focus Groups

8. Traditional Measures of Desire
What do you like?
I. What is Marketing?
Questionnaires
Focus Groups

9. Traditional Measures of Desire
Which would you choose?
I. What is Marketing?
Simulated Choice
Questionnaires
Focus Groups

10. I. What is Marketing?
Traditional Measures of Desire
Not Consequential!
Simulated Choice
Questionnaires
Focus Groups

11. Traditional Measures of Desire
What do you want for dinner
tomorrow?
I. What is Marketing?

12. Traditional Measures of Desire
What DID you choose?
I. What is Marketing?
Fully Consequential!
Market Tests
Simulated Choice
Questionnaires
Focus Groups

13. I. What is Marketing?
Traditional Measures of Desire
Market Tests
Cost
Simulated Choice
Questionnaires
Focus Groups
Accuracy Adapted from Ariely & Berns (2010)

14. I. What is Marketing?
Traditional Measures of Desire
Market Tests
Cost
Simulated Choice
Questionnaires
Focus Groups
Accuracy

15. II. What is Neuroscience?

16. II. What is Neuroscience?
A system to measure the biology of desire
Ø Predict consumer behavior
Measure
Desire
Purchase

17. II. What is Neuroscience?
A system to measure the biology of desire
Ø Predict consumer behavior
“Hidden Information”

18. II. What is Neuroscience?
“Hidden” Information
Ø Emotional Ø Subconscious Ø Non-rational

19. Neuroscience Measures of Desire
Biometrics
II. What is Neuroscience?
GSR Heart Rate
Pupil Dilation Temperature

20. Neuroscience Measures of Desire
Behavioral Physiology
II. What is Neuroscience?
Eye Tracking Facial Coding

21. Charity Selection
Neuroscience Measures of Desire
Brain Imaging
II. What is Neuroscience?
EEG MEG fMRI
You
will play for
Easter Seals
+
Dharol Tankersley Cognitive Af

22. NeuroAnatomy of Marketing
III. What Neuroscience CAN do for Marketing
Liking
mPFC
(Medial PreFrontal Cortex)
Disliking
Insula
Amygdala
Attention/ Arousal
Striatum

23. III. What Neuroscience CAN
do for Marketing
Ø Success: Case Studies
Ø Summary: Promising Areas

24. Case Studies
III. What Neuroscience CAN do for Marketing
What kind of product is being sold?

25. Case Studies
III. What Neuroscience CAN do for Marketing
What kind of product is being sold?

26. Case Studies
III. What Neuroscience CAN do for Marketing
What kind of product is being sold?

27. Case Studies
III. What Neuroscience CAN do for Marketing
What kind of product is being sold?

28. Case Studies
III. What Neuroscience CAN do for Marketing
What kind of product is being sold?

29. III. What Neuroscience CAN do for Marketing
Case Studies
Eye Tracking

30. III. What Neuroscience CAN do for Marketing
Case Studies
Eye Tracking

31. Case Studies
III. What Neuroscience CAN do for Marketing
Eye Tracking
Website Optimization Packaging
Ad Placement

32. III. What Neuroscience CAN do for Marketing
Case Studies
Which design do you prefer?

33. Case Studies
III. What Neuroscience CAN do for Marketing
Biometrics
1 2 1000"
800"
Sales"Rank"
600"
400"
200"
0"
0" 5" 10"
Emo4onal"Engagement"Rank"

34. Case Studies
III. What Neuroscience CAN do for Marketing
Biometrics
Ø Heavy detail that expresses attitude
Ø Prominent facial features often with large eyes
Ø Bold color palette with high contrast

35. Case Studies
III. What Neuroscience CAN do for Marketing
Biometrics
Emotionally Engaging -> Twice the Click Thru Rate

36. Case Studies
III. What Neuroscience CAN do for Marketing
Which cover design do you prefer?
1 2 3

37. Case Studies
III. What Neuroscience CAN do for Marketing
Brain Imaging: EEG
Overall effectiveness
Attention
Emotion Emotion
Retention
Purchase Intent
Novelty
Awareness

38. Case Studies
III. What Neuroscience CAN do for Marketing
Brain Imaging: EEG
12% Increase
in Sales
2

39. Case Studies
III. What Neuroscience CAN do for Marketing
Which advertisement is the most effective?
http://www.youtube.com/watch?v=lf01Ti6bH8U
Campaign A: Coffee Ad

40. Case Studies
III. What Neuroscience CAN do for Marketing
Which advertisement is the most effective?
http://www.youtube.com/watch?v=dR6odVmNTlw
Campaign B: Jumping Out of Window Ad

41. Case Studies
III. What Neuroscience CAN do for Marketing
Which advertisement is the most effective?
http://www.youtube.com/watch?v=weVp5FXVyqM
Campaign C: Puppet

42. Case Studies
III. What Neuroscience CAN do for Marketing
Which advertisement is the most effective?
Campaign A: Coffee Ad
Campaign B: Jumping Out of Window Ad
Campaign C: Puppet

43. Case Studies
III. What Neuroscience CAN do for Marketing
Brain Imaging: fMRI
Expert
self%report%
Predictions
10"
8"
6"
4"
2"
0"
A" B" C"

44. Case Studies
III. What Neuroscience CAN do for Marketing
Brain Imaging: fMRI
Expert Calls to 1-800-
self%report%
Predictions
actual&
QUIT-NOW
10" 32"
8" 24"
30x
6"
16"
10x
4" 2x
2" 8"
0" 0"
A" B" C" A" B" C"
Experts & smokers fail to predict.

45. Case Studies
III. What Neuroscience CAN do for Marketing
Brain Imaging: fMRI
Brain: mPFC
Expert Calls to 1-800-
mpfc%
Activation
Predictions
actual&
QUIT-NOW
0.1% 32"
24"
30x
0.05%
16"
10x
0% 2x
A% B% C% 8"
!0.05%
0"
!0.1% A" B" C"
Frontal Cortex Predicts
Advertisement Effectiveness

46. Promising Areas
III. What Neuroscience CAN do for Marketing
Ø Visual – Attention
Ø Advertising
Ø Packaging

47. Promising Areas
III. What Neuroscience CAN do for Marketing
Ø Emotion - Engagement
Ø Branding
Ø Politics

48. Promising Areas
III. What Neuroscience CAN do for Marketing
Ø Consumption - Experience
Ø Beverages
Ø Films

49. Promising Areas
III. What Neuroscience CAN do for Marketing
Ø Virtual Reality
Ø Shopping Display
Ø Architecture

50. Summary
III. What Neuroscience CAN do for Marketing
Ø Visual Attention
Ø Advertising
Ø Packaging
Ø Emotion
Ø Politics
Ø Branding
Ø Consumption
Ø Beverage
Ø Film
Ø Virtual Reality
Ø Architecture
Ø In-store marketing

51. IV. What Neuroscience CanNOT
do for Marketing
Ø Cautionary Tales
Ø Methodology
Ø Costs
Ø Context

52. IV. What Neuroscience Can NOT do for Marketing
Facebook Study
Cautionary Tales

53. Cautionary Tales
IV. What Neuroscience Can NOT do for Marketing
Facebook Study
Emotional Engagement
Facebook Yahoo NYTimes

54. Cautionary Tales
IV. What Neuroscience Can NOT do for Marketing
Coke vs Pepsi Taste Test
Blind Taste Test Labeled Taste Test

55. IV. What Neuroscience Can NOT do for Marketing
Cautionary Tales
Coke vs Pepsi Taste Test

56. IV. What Neuroscience Can NOT do for Marketing
Cautionary Tales
NewScience Magazine

57. IV. What Neuroscience Can NOT do for Marketing
Confounds
Cautionary Tales

58. Cautionary Tales
IV. What Neuroscience Can NOT do for Marketing
Confounds
“These methods do not reveal inner truth.
Neuroscience techniques need interpretation in
light of other information. Real understanding
comes from integrating information rather than
focusing on only one perspective.”
Barbara O’Connell
Vice President, Milward Brown

59. Methods: Reverse Inference
IV. What Neuroscience Can NOT do for Marketing
tions. Interestingly, an a
for pain placebo effects
Our results have impl
EP signal plays a centr
serves as a teaching sig
tunately, very little is k
neural computation of t
is the economic view, w
sensory properties of th
ular properties) and th
suggest that the brain
“Liking” sophisticated manner th
properties of the substa
tions about how good it
that it might be adaptive
Preference
decisions in the future
measurements of the qu
of noisy measurements,
quality of an experience
tion. A related study (1
dence for this point by
tions. Interestingly
an ambiguous odor (‘‘c
Fig. 4. Neural correlates of liking ratings. (A) Activity in the mOFC and the affectfor pain placebo e
both subjective p
midbrain correlated with the reported pleasantness of the six liquids at degus-
mPFC
tation time. For illustration purposes, the contrast is shown both at P Ͻ 0.001 and
P Ͻ 0.005 uncorrected and with an extend threshold of five voxels. (B) Correlation
related Our results have
to EP. Unlike th
al. (13) do not provideae
EP signal plays
pricing, can affect neura
ActivationSecond, our a teachin
serves as findings
of pleasantness ratings and BOLD responses (r ϭ 0.593, P Ͻ 0.000). Each point
Whereas there very little
tunately, is ample
denotes a subject-price pair. The horizontal axis measures the reported pleasant-
ness. The vertical axis computes the betas from the general linear model in a
5-mm spherical volume surrounding the area depicted in A. neural computatio
keting actions are succes
is the economic vie
that they can modulate n
not been reported befor
sensory properties
Discussion provide some clues abou
ular properties) a
The main hypothesis of this study was that an increase in the lar, it seems that price c
perceived price of a wine should, through an increase in taste experienced utility the n
suggest that but b
expectations, increase activity in the mOFC. The results de- ties of taste in the mann
sophisticated prim
scribed above provide evidence consistent with the hypothesis. properties of the s
Third, our results hav
The hypothesis was motivated by several previous studies, which important componentgo
tions about how o
have shown that activity in the mOFC is correlated with behav- omist’s termmight be ad
that it for subjecti
ioral pleasantness ratings for odors (10 –13), tastes (6, 14, and the standard economic f
decisions in the
15), and even music (16). This, together with our behavioral erties of products, such a
measurements of t

60. Methods: Reverse Inference
IV. What Neuroscience Can NOT do for Marketing
My
product
is “liked”
Preference
tions. Interestingly
for pain placebo e
mPFC Our results have
EP signal plays a
serves as a teachin
Activation
tunately, very little
neural computatio
is the economic vie
sensory properties
ular properties) a
suggest that the b
sophisticated mann
properties of the s
tions about how go
that it might be ad
decisions in the f
measurements of t

61. Methods: Multi-voxel Pattern Analysis
IV. What Neuroscience Can NOT do for Marketing
Beyond Reverse Inference
Like
Dislike
New Product

62. Costs
IV. What Neuroscience Can NOT do for Marketing
Intern Scan Subject Postdoc IT
You are the postdoc. You should
know how to make ends meet.
$40 $500 $40 $10,000 $20,000
Data: $17,400
Overhead: $30,0 00
$47,400

63. Costs
IV. What Neuroscience Can NOT do for Marketing
Return On Investment?
“If I can spend $1000 to do a traditional market study that
gets me 85% of what a $50,000 fMRI study does then the
return on my neuromarketing investment is not great.
Thinking about it another way, how much less or more
could I get across 50 traditional studies relative to the
value of one neuromarketing study.”
-Craig Bennett
Data: $17,400
Overhead: $30,0 00
$47,400

64. Context
IV. What Neuroscience Can NOT do for Marketing
Ø Loud
Ø Claustrophobic
Ø Stationary
Ø Repetitive

65. Summary: Limitations
IV. What Neuroscience Can Not do for Marketing
Ø Cautionary Tales
Ø Costs
Ø Methodological Data: $17,400
Overhead: $30,000
$47,400
My
product
Ø Context is “liked”

66. Neuromarketing: Conclusions
Promise Caution
Data: $17,400
Overhead: $30,0 00
$47,400

67. Thanks!
DHAROL TANKERSLEY, PhD
Analyst
dharol@gmail.com
www.linkedin.com/pub/dir/Dharol/Tankersley