Consumer neuroscience
Encyclopedia
Consumer neuroscience is the combination of consumer research with modern neuroscience. The goal of the field is to find neural explanations for consumer behaviors in both normal and diseased individuals.
, psychology
, and anthropology
, and popular topics in the field revolve around consumer decision-making, advertising
, and branding
. However, consumer researchers have never been able to directly record the internal mental processes that govern consumer behavior; they have always been limited to designing experiments in which they alter the external conditions in order to view the ways in which changing variables may affect consumer behavior (examples include changing the packaging or changing a subject’s mood). With the combination of neuroscience
and consumer research it is possible to go directly into the brain to discover the neural explanations for consumer behavior. The ability to record brain activity with electrodes and advances in neural imaging technology make it possible to determine specific regions of the brain that are responsible for critical behaviors involved in consumption.
Consumer neuroscience is similar to neuroeconomics
and neuromarketing
, but subtle, yet distinct differences exist between them. Neuroeconomics is more of an academic field while neuromarketing and consumer neuroscience are more of an applied science. Neuromarketing focuses on the study of various marketing techniques and attempts to integrate neuroscience knowledge to help improve the efficiency and effectiveness of said marketing strategies. Consumer neuroscience is unique among the three because the main focus is on the consumer and how various factors affect individual preferences and purchasing behavior.
and the striatum
play a role in bilateral emotion processing .
The attractiveness of the advertisements correlates with specific changes in brain activity in various brain regions including the medial prefrontal cortex, posterior cingulate
, nucleus accumbens
and higher-order visual cortices . This may represent an interaction between the perceived attractiveness of the ad by the consumer and the emotions expressed by the people pictured in the advertisement . It has been suggested that ads that use people with positive emotions are perceived as attractive while ads using exclusively text or depicting people with neutral expressions may generally be viewed as unattractive . Unattractive ads activate the anterior insula, which plays a role in the processing of negative emotions . Both attractive and unattractive ads have been shown to be more memorable than ads described as ambiguously attractive , but more research is needed to determine how this translates to the overall brand perception in the eyes of the consumer and how this may impact future purchasing behavior .
process and store the information presented in advertisements. Television commercials with scene durations lasting longer than 1.5 seconds have been shown to be more memorable one week later than scenes that last less than 1.5 seconds, and scenes that produce the quickest electrical response in the left frontal hemisphere have been shown to be more memorable as well. It has been suggested that the transfer of visual advertising inputs from short term memory to long term memory may take place in the left hemisphere, and highly memorable ads can be created by producing the fastest responses in the left hemisphere . However, these theories have been renounced by some who believe that the research findings may be attributed to extraneous and unmeasured factors . There is also evidence to suggest that a front to back difference in processing speed may be more influential on ad memorization than left to right differences .
Research has shown that there are certain periods of commercials that are far more significant for the consumer in terms of establishing advertising effects. These short segments are referred to as “branding moments” and are thought to be the most engaging parts of the commercial. These moments can be identified using an EEG
and analyzing alpha waves
(8-13Hz), beta waves
(13-30Hz) and theta waves (4-7Hz) . These results may suggest that the strength of a commercial with regard to its effect on the consumer can be evaluated by the strength of its unique branding moments.
, the orbitofrontal cortices
, and the brainstem whereas cognitive advertising (strict facts) mainly activates the posterior parietal cortex
and the superior prefrontal cortices
. Ambler and Burne in 1999 created the Memory-Affect-Cognition (MAC) theory to explain the processes involved in decision making. According to the theory, the majority of decisions are habitual and do not require affect
or cognition
; they require memory
only . Most of the remaining decisions only require memory
and affect; they do not require cognition
. The main use for cognition
is in the form of rationalization
following a particular action, however, there are occasional instances in which memory
, affect and cognition
are all used in conjunction, such as during a debate about a particular choice . The above findings suggest a correlation exists between ad memorization and the degree of affective content within the advertisement, but it is still unclear how this translates to brand memory .
associations on consumer preferences and how they manifest into brand memories. Brand memories can be defined as “everything that exists in the minds of customers with respect to a brand (e.g. thoughts, feelings, experiences, images, perceptions, beliefs and attitudes)” . Several studies have indicated there is not a designated area of the brain devoted to brand recognition. Studies have shown that different areas of the brain
are activated when exposed to a brand
as opposed to a person, and decisions regarding the evaluation of brands in different product categories activate the area of the brain responsible for semantic object
processing rather than areas involved with the judgment of people. These two findings suggest that brands are not processed by the brain
in the same manner as human personalities, indicating that personality theory cannot be used to explain brand preferences.
serves as a reward during choice tasks, but less loyal customers do not exhibit the same reward pathway. It was also found that loyal customers had greater activation in the brain
areas concerned with emotion
and memory retrieval suggesting that loyal customers develop an affective bond with a particular brand, which serves as the primary motivation for repeat purchases.
Brand loyalty has been shown to be the result of changes in neural activity in the striatum
, which is part of the human action reward system
. In order to become brand loyal the brain
must make a decision of brand A over brand B, a process which relies on the brain to make predictions based upon expected reward and then evaluate the results to learn loyalty. The brain
is required to remember both positive and negative outcomes of previous brand choices in order to accurately be able to make predictions regarding the expected outcome of future brand decisions. For example, a helpful salesman or a discount in price may serve as a reward to encourage future customer loyalty. It is thought that the amygdala
and striatum
are the two most prominent structures for predicting the outcomes of decisions, and that the brain
learns to better predict in part by establishing a larger neural network
in these structures.
In an attempt to model
how the brain
learns, a temporal difference learning algorithm has been developed which takes into account expected reward, stimuli presence, reward evaluation, temporal error, and individual differences. As of yet this is a theoretical equation
, but it may be solved in the near future.
to the products they are purchasing either by establishing an emotional connection or by creating a particular image. It has been shown that when consumers are forced to choose an item from a group in which a familiar brand is present the choice is much easier than when consumers are forced to choose from a group of entirely unfamiliar brands. One MRI study found that there was significantly increased activation in the brain
reward centers including the orbitofrontal cortex
, the ventral striatum
and the anterior cingulate when consumers were looking at sports cars as compared to sedans (presumably because the status symbol associated with sports cars is rewarding in some way). Many corporations have conducted similar MRI studies to investigate the effect of their brand on consumers including Delta Air Lines
, General Motors
, Home Depot, Hallmark
, and Motorola
but the results have not been made public.
A study by McClure et al. investigated the difference in branding between Coca-Cola
and Pepsi
. The study found that when the two drinks were tasted blind there was no difference in consumer preference between the brands. Both drinks produced equal activation in the ventromedial prefrontal cortex
, which is thought to be activated because the taste is rewarding. When the subjects were informed of the brand names the consumers preferred Coke
, and only Coke
activated the ventromedial prefrontal cortex
, suggesting that drinking the Coke
brand is rewarding beyond simply the taste itself. More subjects preferred Coke
when they knew it was Coke
than when the taste testing was anonymous, which demonstrates the power of branding to influence consumer behavior. There was also significant activation in the hippocampus
and dorsolateral prefrontal cortex
when subjects knew they were drinking Coke. These brain structures are known to play a role in memory
and recollection
, which indicates they are helping the subjects to connect their present drinking experience to previous brand
associations. The study proposes that there are two separate processes contributing to consumer decision making: the ventromedial prefrontal cortex
responds to sensory inputs and the hippocampus
and dorsolateral prefrontal cortex
recall previous associations to cultural information. According to the results of this study, the Coke brand has much more firmly established itself as a rewarding experience.
does not contain a “buy button”, but rather recruits several processes during choice tasks, and studies report that the prefrontal cortex
is heavily involved in limiting the emotions expressed during impulse buying. Reducing the effect of these executive control areas of the brain
may contribute to changes in purchasing behavior, for example music may lead to reduced cognitive control which is why it has been shown to correlate with a higher percentage of unplanned purchases .
associated with decision making in order to investigate the underlying processes governing purchasing. The studies suggest that decisions involved with purchasing can be seen as occurring in two halves. The first half is concerned with memory recall
and problem identification and recognition. The second half is associated with the purchasing decision itself; familiar brands produce different brain patterns than do nonfamiliar brands. The right parietal cortex is activated when consumers
choose a familiar brand, which indicates the choice is at least partially intentional and behavior is influenced by prior experiences.
select less well known products or products that are completely unfamiliar, several areas of the brain
are activated to help with the decision making process that are not activated when consumers select more well known products. There is an increased synchronization between the right dorsolateral cortices
(associated with consideration of multiple sources of information), there is increased activity in the right orbitofrontal cortex
(associated with evaluation of rewards) and there is increased activity in the left inferior frontal cortex
(associated with silent vocalization). Activation in these brain
structures indicates that the decision between less well known products is difficult in some way. MEG findings also suggest that even repetitive daily shopping that is apparently simple actually relies on very complex neural mechanisms.
is heavily involved in decisions regarding brand-related preferences and individuals with damage to this region of the brain do not demonstrate normal brand-preference behavior.
and striatum
are the two most prominent structures for predicting the outcomes of decisions, and that the brain
learns to better make predictions in part by establishing a larger neural network
in these structures.
and dorsolateral prefrontal cortex
help consumers recall previous associations with cultural information and cultural expectations. These associations with prior information serve to modify consumer behavior and influence purchasing decisions.
studies. Consumer studies help neuroscience
to learn more about how healthy and unhealthy brain functions differ, which may assist in discovering the neural source of consumption-related dysfunctions and treat a variety of addictions
. Additionally, studies are currently underway to investigate the neural mechanism of “anchoring”, which has been thought to contribute to obesity
because people are more influenced by the behaviors of their peers than an internal standard. Discovering a neural source of anchoring may be the key to preventing behaviors that typically lead to obesity
.
have been conducted in medical or technological environments where such brain imaging devices
are present. This is not a realistic environment for consumer decision making and may serve to skew the data relative to consumer decision making in normal consumer environments.
2. Testing underlying neurophysiological principles is extraordinarily difficult from an experimental setup standpoint simply because it is unclear exactly how various factors are perceived in the human mind. An extremely comprehensive understanding of the neuroscientific testing techniques to be used is required to be able to establish proper controls and create an environment such that test subjects are not inadvertently exposed to unwanted stimuli that may bias results.
3. There are many concerns over the value and the potential usage of consumer neuroscience data. The potential for enhanced consumer welfare is certainly present but equally present is the potential for the information to be used inappropriately for individual gain. The reaction to emerging study results in both the public and the media remains to be seen.
4. In its current state, consumer neuroscience research is a compilation of only loosely related subjects that is unable, at this point, to produce any collective conclusions.
Consumer Research
Consumer research has existed for an extended period of time and has been well established as a combination of sociologySociology
Sociology is the study of society. It is a social science—a term with which it is sometimes synonymous—which uses various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity...
, psychology
Psychology
Psychology is the study of the mind and behavior. Its immediate goal is to understand individuals and groups by both establishing general principles and researching specific cases. For many, the ultimate goal of psychology is to benefit society...
, and anthropology
Anthropology
Anthropology is the study of humanity. It has origins in the humanities, the natural sciences, and the social sciences. The term "anthropology" is from the Greek anthrōpos , "man", understood to mean mankind or humanity, and -logia , "discourse" or "study", and was first used in 1501 by German...
, and popular topics in the field revolve around consumer decision-making, advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
, and branding
Brand management
Brand management is the application of marketing techniques to a specific product, product line, or brand.The discipline of brand management was started at Procter & Gamble as a result of a famous memo by Neil H...
. However, consumer researchers have never been able to directly record the internal mental processes that govern consumer behavior; they have always been limited to designing experiments in which they alter the external conditions in order to view the ways in which changing variables may affect consumer behavior (examples include changing the packaging or changing a subject’s mood). With the combination of neuroscience
Neuroscience
Neuroscience is the scientific study of the nervous system. Traditionally, neuroscience has been seen as a branch of biology. However, it is currently an interdisciplinary science that collaborates with other fields such as chemistry, computer science, engineering, linguistics, mathematics,...
and consumer research it is possible to go directly into the brain to discover the neural explanations for consumer behavior. The ability to record brain activity with electrodes and advances in neural imaging technology make it possible to determine specific regions of the brain that are responsible for critical behaviors involved in consumption.
Consumer neuroscience is similar to neuroeconomics
Neuroeconomics
Neuroeconomics is an interdisciplinary field that seeks to explain human decision making, the ability to process multiple alternatives and to choose an optimal course of action. It studies how economic behavior can shape our understanding of the brain, and how neuroscientific discoveries can...
and neuromarketing
Neuromarketing
Neuromarketing is a new field of marketing that studies consumers' sensorimotor, cognitive, and affective response to marketing stimuli. Researchers use technologies such as functional magnetic resonance imaging to measure changes in activity in parts of the brain, electroencephalography and...
, but subtle, yet distinct differences exist between them. Neuroeconomics is more of an academic field while neuromarketing and consumer neuroscience are more of an applied science. Neuromarketing focuses on the study of various marketing techniques and attempts to integrate neuroscience knowledge to help improve the efficiency and effectiveness of said marketing strategies. Consumer neuroscience is unique among the three because the main focus is on the consumer and how various factors affect individual preferences and purchasing behavior.
Advertising and Emotion
Studies of emotion are crucial to advertising research as it has been shown that emotion plays a significant role in ad memorization . Classically in advertising research, the theory has been that emotion and ratio are represented in different regions of the brain , but neuroscience may be able to disprove this theory by showing that the ventromedial prefrontal cortexVentromedial prefrontal cortex
The ventromedial prefrontal cortex is a part of the prefrontal cortex in the mammalian brain. The ventral medial prefrontal is located in the frontal lobe and is implicated in the processing of risk, fear, and in decision making.- Anatomy :...
and the striatum
Striatum
The striatum, also known as the neostriatum or striate nucleus, is a subcortical part of the forebrain. It is the major input station of the basal ganglia system. The striatum, in turn, gets input from the cerebral cortex...
play a role in bilateral emotion processing .
The attractiveness of the advertisements correlates with specific changes in brain activity in various brain regions including the medial prefrontal cortex, posterior cingulate
Posterior cingulate
The posterior cingulate cortex is the backmost part of the cingulate cortex, lying behind the anterior cingulate cortex.This is the upper part of the "limbic lobe". The cingulate cortex is made up of an area around the midline of the brain...
, nucleus accumbens
Nucleus accumbens
The nucleus accumbens , also known as the accumbens nucleus or as the nucleus accumbens septi , is a collection of neurons and forms the main part of the ventral striatum...
and higher-order visual cortices . This may represent an interaction between the perceived attractiveness of the ad by the consumer and the emotions expressed by the people pictured in the advertisement . It has been suggested that ads that use people with positive emotions are perceived as attractive while ads using exclusively text or depicting people with neutral expressions may generally be viewed as unattractive . Unattractive ads activate the anterior insula, which plays a role in the processing of negative emotions . Both attractive and unattractive ads have been shown to be more memorable than ads described as ambiguously attractive , but more research is needed to determine how this translates to the overall brand perception in the eyes of the consumer and how this may impact future purchasing behavior .
Mental Processing of Advertisements
There are many studies that have been conducted to research the question of how consumersConsumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
process and store the information presented in advertisements. Television commercials with scene durations lasting longer than 1.5 seconds have been shown to be more memorable one week later than scenes that last less than 1.5 seconds, and scenes that produce the quickest electrical response in the left frontal hemisphere have been shown to be more memorable as well. It has been suggested that the transfer of visual advertising inputs from short term memory to long term memory may take place in the left hemisphere, and highly memorable ads can be created by producing the fastest responses in the left hemisphere . However, these theories have been renounced by some who believe that the research findings may be attributed to extraneous and unmeasured factors . There is also evidence to suggest that a front to back difference in processing speed may be more influential on ad memorization than left to right differences .
Research has shown that there are certain periods of commercials that are far more significant for the consumer in terms of establishing advertising effects. These short segments are referred to as “branding moments” and are thought to be the most engaging parts of the commercial. These moments can be identified using an EEG
EEG
EEG commonly refers to electroencephalography, a measurement of the electrical activity of the brain.EEG may also refer to:* Emperor Entertainment Group, a Hong Kong-based entertainment company...
and analyzing alpha waves
Alpha Waves
Alpha Waves is an early 3D game that combines labyrinthine exploration with platform gameplay. By most definitions of the genre it could be considered to be the first 3D platform game, released in 1990, 6 years before the genre's seminal classic Super Mario 64...
(8-13Hz), beta waves
Beta wave
Beta wave, or beta rhythm, is the term used to designate the frequency range of human brain activity between 12 and 30 Hz . Beta waves are split into three sections: High Beta Waves ; Beta Waves ; and Low Beta Waves...
(13-30Hz) and theta waves (4-7Hz) . These results may suggest that the strength of a commercial with regard to its effect on the consumer can be evaluated by the strength of its unique branding moments.
Affective vs. Cognitive Ads
Affective advertising (using comedy, drama, suspense, etc.) activates the amygdalaAmygdala
The ' are almond-shaped groups of nuclei located deep within the medial temporal lobes of the brain in complex vertebrates, including humans. Shown in research to perform a primary role in the processing and memory of emotional reactions, the amygdalae are considered part of the limbic system.-...
, the orbitofrontal cortices
Orbitofrontal cortex
The orbitofrontal cortex is a prefrontal cortex region in the frontal lobes in the brain which is involved in the cognitive processing of decision-making...
, and the brainstem whereas cognitive advertising (strict facts) mainly activates the posterior parietal cortex
Posterior parietal cortex
The posterior parietal cortex plays an important role in producing planned movements. Before an effective movement can be initiated, the nervous system must know the original positions of the body parts that are to be moved, and the positions of any external objects with which the body is going to...
and the superior prefrontal cortices
Prefrontal cortex
The prefrontal cortex is the anterior part of the frontal lobes of the brain, lying in front of the motor and premotor areas.This brain region has been implicated in planning complex cognitive behaviors, personality expression, decision making and moderating correct social behavior...
. Ambler and Burne in 1999 created the Memory-Affect-Cognition (MAC) theory to explain the processes involved in decision making. According to the theory, the majority of decisions are habitual and do not require affect
Affect (psychology)
Affect refers to the experience of feeling or emotion. Affect is a key part of the process of an organism's interaction with stimuli. The word also refers sometimes to affect display, which is "a facial, vocal, or gestural behavior that serves as an indicator of affect" .The affective domain...
or cognition
Cognition
In science, cognition refers to mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions. Cognition is studied in various disciplines such as psychology, philosophy, linguistics, and computer science...
; they require memory
Memory
In psychology, memory is an organism's ability to store, retain, and recall information and experiences. Traditional studies of memory began in the fields of philosophy, including techniques of artificially enhancing memory....
only . Most of the remaining decisions only require memory
Memory
In psychology, memory is an organism's ability to store, retain, and recall information and experiences. Traditional studies of memory began in the fields of philosophy, including techniques of artificially enhancing memory....
and affect; they do not require cognition
Cognition
In science, cognition refers to mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions. Cognition is studied in various disciplines such as psychology, philosophy, linguistics, and computer science...
. The main use for cognition
Cognition
In science, cognition refers to mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions. Cognition is studied in various disciplines such as psychology, philosophy, linguistics, and computer science...
is in the form of rationalization
Rationalization
Rationalization may refer to:*Rationalization , the means of transition from a traditional society into a rationalized one*Rationalization , the process of constructing a logical justification for a decision that was originally arrived at through a different mental process*Rationalization , an...
following a particular action, however, there are occasional instances in which memory
Memory
In psychology, memory is an organism's ability to store, retain, and recall information and experiences. Traditional studies of memory began in the fields of philosophy, including techniques of artificially enhancing memory....
, affect and cognition
Cognition
In science, cognition refers to mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions. Cognition is studied in various disciplines such as psychology, philosophy, linguistics, and computer science...
are all used in conjunction, such as during a debate about a particular choice . The above findings suggest a correlation exists between ad memorization and the degree of affective content within the advertisement, but it is still unclear how this translates to brand memory .
Brand Associations
Much of consumer research is devoted to studying the effect of brandBrand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
associations on consumer preferences and how they manifest into brand memories. Brand memories can be defined as “everything that exists in the minds of customers with respect to a brand (e.g. thoughts, feelings, experiences, images, perceptions, beliefs and attitudes)” . Several studies have indicated there is not a designated area of the brain devoted to brand recognition. Studies have shown that different areas of the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
are activated when exposed to a brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
as opposed to a person, and decisions regarding the evaluation of brands in different product categories activate the area of the brain responsible for semantic object
Semantics
Semantics is the study of meaning. It focuses on the relation between signifiers, such as words, phrases, signs and symbols, and what they stand for, their denotata....
processing rather than areas involved with the judgment of people. These two findings suggest that brands are not processed by the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
in the same manner as human personalities, indicating that personality theory cannot be used to explain brand preferences.
Consumer Neuroscience Explains Brand Loyalty
In a study of fMRI scans of loyal and less loyal customers it was found that in the case of loyal customers the presence of a particular brandBrand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
serves as a reward during choice tasks, but less loyal customers do not exhibit the same reward pathway. It was also found that loyal customers had greater activation in the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
areas concerned with emotion
Emotion
Emotion is a complex psychophysiological experience of an individual's state of mind as interacting with biochemical and environmental influences. In humans, emotion fundamentally involves "physiological arousal, expressive behaviors, and conscious experience." Emotion is associated with mood,...
and memory retrieval suggesting that loyal customers develop an affective bond with a particular brand, which serves as the primary motivation for repeat purchases.
Brand loyalty has been shown to be the result of changes in neural activity in the striatum
Striatum
The striatum, also known as the neostriatum or striate nucleus, is a subcortical part of the forebrain. It is the major input station of the basal ganglia system. The striatum, in turn, gets input from the cerebral cortex...
, which is part of the human action reward system
Reward system
In neuroscience, the reward system is a collection of brain structures which attempts to regulate and control behavior by inducing pleasurable effects...
. In order to become brand loyal the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
must make a decision of brand A over brand B, a process which relies on the brain to make predictions based upon expected reward and then evaluate the results to learn loyalty. The brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
is required to remember both positive and negative outcomes of previous brand choices in order to accurately be able to make predictions regarding the expected outcome of future brand decisions. For example, a helpful salesman or a discount in price may serve as a reward to encourage future customer loyalty. It is thought that the amygdala
Amygdala
The ' are almond-shaped groups of nuclei located deep within the medial temporal lobes of the brain in complex vertebrates, including humans. Shown in research to perform a primary role in the processing and memory of emotional reactions, the amygdalae are considered part of the limbic system.-...
and striatum
Striatum
The striatum, also known as the neostriatum or striate nucleus, is a subcortical part of the forebrain. It is the major input station of the basal ganglia system. The striatum, in turn, gets input from the cerebral cortex...
are the two most prominent structures for predicting the outcomes of decisions, and that the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
learns to better predict in part by establishing a larger neural network
Neural network
The term neural network was traditionally used to refer to a network or circuit of biological neurons. The modern usage of the term often refers to artificial neural networks, which are composed of artificial neurons or nodes...
in these structures.
In an attempt to model
Scientific modelling
Scientific modelling is the process of generating abstract, conceptual, graphical and/or mathematical models. Science offers a growing collection of methods, techniques and theory about all kinds of specialized scientific modelling...
how the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
learns, a temporal difference learning algorithm has been developed which takes into account expected reward, stimuli presence, reward evaluation, temporal error, and individual differences. As of yet this is a theoretical equation
Equation
An equation is a mathematical statement that asserts the equality of two expressions. In modern notation, this is written by placing the expressions on either side of an equals sign , for examplex + 3 = 5\,asserts that x+3 is equal to 5...
, but it may be solved in the near future.
How Branding Affects Consumers
Brands serve to connect consumersConsumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
to the products they are purchasing either by establishing an emotional connection or by creating a particular image. It has been shown that when consumers are forced to choose an item from a group in which a familiar brand is present the choice is much easier than when consumers are forced to choose from a group of entirely unfamiliar brands. One MRI study found that there was significantly increased activation in the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
reward centers including the orbitofrontal cortex
Orbitofrontal cortex
The orbitofrontal cortex is a prefrontal cortex region in the frontal lobes in the brain which is involved in the cognitive processing of decision-making...
, the ventral striatum
Ventral striatum
The ventral striatum is generally considered that part of the striatum that is connectionally associated with limbic structures, such as the amygdala, hippocampus, midline thalamus, and certain regions of the prefrontal cortex...
and the anterior cingulate when consumers were looking at sports cars as compared to sedans (presumably because the status symbol associated with sports cars is rewarding in some way). Many corporations have conducted similar MRI studies to investigate the effect of their brand on consumers including Delta Air Lines
Delta Air Lines
Delta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
, General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, Home Depot, Hallmark
Hallmark
A hallmark is an official mark or series of marks struck on items made of precious metals — platinum, gold, silver and in some nations, palladium...
, and Motorola
Motorola
Motorola, Inc. was an American multinational telecommunications company based in Schaumburg, Illinois, which was eventually divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011, after losing $4.3 billion from 2007 to 2009...
but the results have not been made public.
A study by McClure et al. investigated the difference in branding between Coca-Cola
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
and Pepsi
Pepsi
Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo...
. The study found that when the two drinks were tasted blind there was no difference in consumer preference between the brands. Both drinks produced equal activation in the ventromedial prefrontal cortex
Ventromedial prefrontal cortex
The ventromedial prefrontal cortex is a part of the prefrontal cortex in the mammalian brain. The ventral medial prefrontal is located in the frontal lobe and is implicated in the processing of risk, fear, and in decision making.- Anatomy :...
, which is thought to be activated because the taste is rewarding. When the subjects were informed of the brand names the consumers preferred Coke
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
, and only Coke
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
activated the ventromedial prefrontal cortex
Ventromedial prefrontal cortex
The ventromedial prefrontal cortex is a part of the prefrontal cortex in the mammalian brain. The ventral medial prefrontal is located in the frontal lobe and is implicated in the processing of risk, fear, and in decision making.- Anatomy :...
, suggesting that drinking the Coke
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
brand is rewarding beyond simply the taste itself. More subjects preferred Coke
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
when they knew it was Coke
Coca-Cola
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending machines in more than 200 countries. It is produced by The Coca-Cola Company of Atlanta, Georgia, and is often referred to simply as Coke...
than when the taste testing was anonymous, which demonstrates the power of branding to influence consumer behavior. There was also significant activation in the hippocampus
Hippocampus
The hippocampus is a major component of the brains of humans and other vertebrates. It belongs to the limbic system and plays important roles in the consolidation of information from short-term memory to long-term memory and spatial navigation. Humans and other mammals have two hippocampi, one in...
and dorsolateral prefrontal cortex
Dorsolateral prefrontal cortex
The dorsolateral prefrontal cortex , according to a more restricted definition, is roughly equivalent to Brodmann areas 9 and 46. According to a broader definition DL-PFC consists of the lateral portions of Brodmann areas 9 – 12, of areas 45, 46, and the superior part of area 47. These regions...
when subjects knew they were drinking Coke. These brain structures are known to play a role in memory
Memory
In psychology, memory is an organism's ability to store, retain, and recall information and experiences. Traditional studies of memory began in the fields of philosophy, including techniques of artificially enhancing memory....
and recollection
Recollection
Recall in memory refers to the retrieval of events or information from the past. Along with encoding and storage, it is one of the three core processes of memory. There are three main types of recall: free recall, cued recall and serial recall...
, which indicates they are helping the subjects to connect their present drinking experience to previous brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
associations. The study proposes that there are two separate processes contributing to consumer decision making: the ventromedial prefrontal cortex
Ventromedial prefrontal cortex
The ventromedial prefrontal cortex is a part of the prefrontal cortex in the mammalian brain. The ventral medial prefrontal is located in the frontal lobe and is implicated in the processing of risk, fear, and in decision making.- Anatomy :...
responds to sensory inputs and the hippocampus
Hippocampus
The hippocampus is a major component of the brains of humans and other vertebrates. It belongs to the limbic system and plays important roles in the consolidation of information from short-term memory to long-term memory and spatial navigation. Humans and other mammals have two hippocampi, one in...
and dorsolateral prefrontal cortex
Dorsolateral prefrontal cortex
The dorsolateral prefrontal cortex , according to a more restricted definition, is roughly equivalent to Brodmann areas 9 and 46. According to a broader definition DL-PFC consists of the lateral portions of Brodmann areas 9 – 12, of areas 45, 46, and the superior part of area 47. These regions...
recall previous associations to cultural information. According to the results of this study, the Coke brand has much more firmly established itself as a rewarding experience.
Purchasing
Research in consumer buying has focused on the identification of processes that contribute to an individual making a purchase. The brainBrain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
does not contain a “buy button”, but rather recruits several processes during choice tasks, and studies report that the prefrontal cortex
Prefrontal cortex
The prefrontal cortex is the anterior part of the frontal lobes of the brain, lying in front of the motor and premotor areas.This brain region has been implicated in planning complex cognitive behaviors, personality expression, decision making and moderating correct social behavior...
is heavily involved in limiting the emotions expressed during impulse buying. Reducing the effect of these executive control areas of the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
may contribute to changes in purchasing behavior, for example music may lead to reduced cognitive control which is why it has been shown to correlate with a higher percentage of unplanned purchases .
Purchasing Process
Several MEG studies have been conducted to measure the neuronal correlatesNeural correlate
A neural correlate of a content of experience is any bodily component, such as an electro-neuro-biological state or the state assumed by some biophysical subsystem of the brain, whose presence necessarily and regularly correlates with such a specific content of experience.When the full ontological...
associated with decision making in order to investigate the underlying processes governing purchasing. The studies suggest that decisions involved with purchasing can be seen as occurring in two halves. The first half is concerned with memory recall
Memory
In psychology, memory is an organism's ability to store, retain, and recall information and experiences. Traditional studies of memory began in the fields of philosophy, including techniques of artificially enhancing memory....
and problem identification and recognition. The second half is associated with the purchasing decision itself; familiar brands produce different brain patterns than do nonfamiliar brands. The right parietal cortex is activated when consumers
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
choose a familiar brand, which indicates the choice is at least partially intentional and behavior is influenced by prior experiences.
Familiar vs. Unfamiliar Purchases
When consumersConsumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
select less well known products or products that are completely unfamiliar, several areas of the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
are activated to help with the decision making process that are not activated when consumers select more well known products. There is an increased synchronization between the right dorsolateral cortices
Dorsolateral prefrontal cortex
The dorsolateral prefrontal cortex , according to a more restricted definition, is roughly equivalent to Brodmann areas 9 and 46. According to a broader definition DL-PFC consists of the lateral portions of Brodmann areas 9 – 12, of areas 45, 46, and the superior part of area 47. These regions...
(associated with consideration of multiple sources of information), there is increased activity in the right orbitofrontal cortex
Orbitofrontal cortex
The orbitofrontal cortex is a prefrontal cortex region in the frontal lobes in the brain which is involved in the cognitive processing of decision-making...
(associated with evaluation of rewards) and there is increased activity in the left inferior frontal cortex
Inferior frontal gyrus
The inferior frontal gyrus is a gyrus of the frontal lobe . It is labelled gyrus frontalis inferior, its Latin name...
(associated with silent vocalization). Activation in these brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
structures indicates that the decision between less well known products is difficult in some way. MEG findings also suggest that even repetitive daily shopping that is apparently simple actually relies on very complex neural mechanisms.
Ventromedial Prefrontal Cortex
It has been shown that the ventromedial prefrontal cortexVentromedial prefrontal cortex
The ventromedial prefrontal cortex is a part of the prefrontal cortex in the mammalian brain. The ventral medial prefrontal is located in the frontal lobe and is implicated in the processing of risk, fear, and in decision making.- Anatomy :...
is heavily involved in decisions regarding brand-related preferences and individuals with damage to this region of the brain do not demonstrate normal brand-preference behavior.
Amygdala and Striatum
It is thought that the amygdalaAmygdala
The ' are almond-shaped groups of nuclei located deep within the medial temporal lobes of the brain in complex vertebrates, including humans. Shown in research to perform a primary role in the processing and memory of emotional reactions, the amygdalae are considered part of the limbic system.-...
and striatum
Striatum
The striatum, also known as the neostriatum or striate nucleus, is a subcortical part of the forebrain. It is the major input station of the basal ganglia system. The striatum, in turn, gets input from the cerebral cortex...
are the two most prominent structures for predicting the outcomes of decisions, and that the brain
Brain
The brain is the center of the nervous system in all vertebrate and most invertebrate animals—only a few primitive invertebrates such as sponges, jellyfish, sea squirts and starfishes do not have one. It is located in the head, usually close to primary sensory apparatus such as vision, hearing,...
learns to better make predictions in part by establishing a larger neural network
Neural network
The term neural network was traditionally used to refer to a network or circuit of biological neurons. The modern usage of the term often refers to artificial neural networks, which are composed of artificial neurons or nodes...
in these structures.
Hippocampus and Dorsolateral Prefrontal Cortex
The hippocampusHippocampus
The hippocampus is a major component of the brains of humans and other vertebrates. It belongs to the limbic system and plays important roles in the consolidation of information from short-term memory to long-term memory and spatial navigation. Humans and other mammals have two hippocampi, one in...
and dorsolateral prefrontal cortex
Dorsolateral prefrontal cortex
The dorsolateral prefrontal cortex , according to a more restricted definition, is roughly equivalent to Brodmann areas 9 and 46. According to a broader definition DL-PFC consists of the lateral portions of Brodmann areas 9 – 12, of areas 45, 46, and the superior part of area 47. These regions...
help consumers recall previous associations with cultural information and cultural expectations. These associations with prior information serve to modify consumer behavior and influence purchasing decisions.
Real-World Applications of Consumer Neuroscience
Consumer research provides a real-world application for neuroscienceNeuroscience
Neuroscience is the scientific study of the nervous system. Traditionally, neuroscience has been seen as a branch of biology. However, it is currently an interdisciplinary science that collaborates with other fields such as chemistry, computer science, engineering, linguistics, mathematics,...
studies. Consumer studies help neuroscience
Neuroscience
Neuroscience is the scientific study of the nervous system. Traditionally, neuroscience has been seen as a branch of biology. However, it is currently an interdisciplinary science that collaborates with other fields such as chemistry, computer science, engineering, linguistics, mathematics,...
to learn more about how healthy and unhealthy brain functions differ, which may assist in discovering the neural source of consumption-related dysfunctions and treat a variety of addictions
Substance dependence
The section about substance dependence in the Diagnostic and Statistical Manual of Mental Disorders does not use the word addiction at all. It explains:...
. Additionally, studies are currently underway to investigate the neural mechanism of “anchoring”, which has been thought to contribute to obesity
Obesity
Obesity is a medical condition in which excess body fat has accumulated to the extent that it may have an adverse effect on health, leading to reduced life expectancy and/or increased health problems...
because people are more influenced by the behaviors of their peers than an internal standard. Discovering a neural source of anchoring may be the key to preventing behaviors that typically lead to obesity
Obesity
Obesity is a medical condition in which excess body fat has accumulated to the extent that it may have an adverse effect on health, leading to reduced life expectancy and/or increased health problems...
.
Limitations of Consumer Neuroscience
1. Most of the consumer neuroscience studies involving brain scanning techniquesNeuroimaging
Neuroimaging includes the use of various techniques to either directly or indirectly image the structure, function/pharmacology of the brain...
have been conducted in medical or technological environments where such brain imaging devices
Neuroimaging
Neuroimaging includes the use of various techniques to either directly or indirectly image the structure, function/pharmacology of the brain...
are present. This is not a realistic environment for consumer decision making and may serve to skew the data relative to consumer decision making in normal consumer environments.
2. Testing underlying neurophysiological principles is extraordinarily difficult from an experimental setup standpoint simply because it is unclear exactly how various factors are perceived in the human mind. An extremely comprehensive understanding of the neuroscientific testing techniques to be used is required to be able to establish proper controls and create an environment such that test subjects are not inadvertently exposed to unwanted stimuli that may bias results.
3. There are many concerns over the value and the potential usage of consumer neuroscience data. The potential for enhanced consumer welfare is certainly present but equally present is the potential for the information to be used inappropriately for individual gain. The reaction to emerging study results in both the public and the media remains to be seen.
4. In its current state, consumer neuroscience research is a compilation of only loosely related subjects that is unable, at this point, to produce any collective conclusions.