Neuroscience in Industry Professor Gemma Calvert What

Neuroscience in Industry Professor Gemma Calvert

What is “Neuromarketing” • Term broadly used to describe the application of tools tasks/tests derived from the fields of cognitive psychology and neuroscience to measure biological (as opposed to psychological) reactions to (marketing) stimuli Roughly speaking – basic consumer research using modern tools

What is “Neuromarketing” • Measure brain/neural responses • Implicit or direct responses (vs explicit/spoken) • Where those “stimuli” are: • • • Marketing strategies Communications Advertising New products Existing products

Why does industry need neuroscience? “In 2002, an estimated US$ 6. 8 billion was spent on conventional marketing research market research “The trouble with tools in the US alone. This is an enormous amount of money considering that there is little scientific evidence to support the is that consumers widespread use of focus groups. ” (Mast & Zaltmann, Brain Research don’t think how they feel, Bulletin, 2005) they don’t say what they think, and they don’t do what they say” 80% of all market research is “There is evidence that as much as confirmatory” (Barabba et al, 1991) Estimated 80%+ new products fail in Year 1….

Traditional Market Research Confounding Effects Focus Groups Observation Surveys • Group dynamics • Moderator bias • Behavioural change • Little control • Subjective interpretation of behaviour • Leading questions • Sensitivity • Inaccurate answers • Selective responses

What can Neuroscience offer? Objective Taps Implicit Processes (as opposed to explicit) Rigorously Controlled Environment

What type of companies are using these tools? • • • Global packaged goods Flavour and fragrance houses Media owners and planners Advertising agencies Pharmaceuticals Digital gaming and services

What’s the interest in neuroscience? • Brains are more direct predictors of behaviour • Brains absorb much more than what we are “conscious” of (spotlight of attention) • Emotions are key drivers of behaviour – easy to image in the brain, hard to articulate • Brains are less noisy than human speech (behave more similarly) • Better business decisions from better understanding

Current Applications • Measuring effectiveness of communications (public messages) • Neuroergonomics (human-machine interface) • De-risking marketing decisions • Evaluation of traditional market research tools • Validation of focus group output • Patents (back-up product claims) • PR opportunities (profile, talking point entry)

Case study: evaluation of planned brand extensions BRIEF • Use f. MRI to predict the likely success of two possible brand extensions • Existing brand: successful personal care product • Planned extension categories: homecare & babycare • Subjects: Mothers 18 -45 with children under 3 yrs • Compare with post-scanning questionnaire • Client: Unilever

Mock-ups of the planned brand extensions were generated by an illustrator prior to scanning Planned extension A Babycare sector Existing Brand Competitor Brands in the Planned Extension Markets Planned extension B Babycare sector Mock-up versions of the existing Brand into the planned new markets

KEY: 1: Existing brand 2: Brand Ext 1 3. Brand Ext 2 (failed in USA) FMRI indicates response to planned brand extension 1 is very similar to successful brand. Brand extension 2 shows the opposite pattern. There are no differences in visual attention areas to all 3 conditions so the differences seen in preference areas not due to superficial differences in mockup design. Post-scan explicit questionnaires revealed no sig diffs between all 3 conditions.

Neuroscience & Public Campaigns

• Are Government Health Warnings on cigarette packets effective, or do they in fact do more harm than good? • Following the ban on cigarette advertising on TV etc, tobacco companies are using more insidious methods of advertising • Have they tapped into a more effective but insidious method of advertising? Materials Packs with warnings Promotional items Billboard ads Sponsorship The same conditions were included for Marlboro Cigarettes © Neurosense Limited, UK 2008

ADVISING GOVERNMENT PUBLIC HEALTH CAMPAIGNS desire ** Ad format In contrast to the government’s aim to reduce cigarette smoking, warning labels FAIL to reduce the response of the brain’s nicotine craving area. Our data show that warning labels actually induce further craving, particularly in those people who say they are most affected by warning labels…

The correlation between rating and activity in the ventral striatum/nucleus accumbens in this graph is. 44, and significant at p <. 05. In other words, in those people who are most aware of warning labels (ratings 4 -7), these labels induce craving to a greater degree than those who ignore them.

Public health advice from industry sources Kempton et al, 2010

Evaluation of marketing activity • Evaluation of the relative effectiveness of different media formats (TV, print, radio) • Measurement of advertisement effectiveness in: – different dayparts (GMTV) – different sectors in ad break (Viacom) – different programming contexts (Viacom) • Pre-testing of concept boards

Simultaneous eyetracking and FMRI Simultaneous Eye Tracking and FMRI

How is neuroscience adding value? • De-risk marketing decisions • Bolster/validate/improve traditional research tools • Pre-testing of animatics/storyboards/prototypes • Evidence to back product claims (patents) • PR opportunities, profile raising • Contribution to knowledge (brand equity, loyalty, value)

Are there ethical issues to answer? • Technique is descriptive – still interrogating consumers as traditional methods • All FMRI studies subject to scrutiny by public research ethics committees • Group data maintains anonymity • Brain imaging may help uncover existing drives or needs, but difficult to conceive that it would be able to invent ones • The economic advantages are clear – refine and define new products with lower risk of failure • Boost UK economy by harnessing the best science available

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