Customer Insights - Feb24 - Neuromarketing PDF

360º Customer insights Professor Jaime Veiga, MSMC Feb24 Class overview – topics Session1: Consumer trends 2024 Session2: Forum - Softeners case Session3: Neuromarketing Session4: Perception, attention, memory Session5: EXAM+ Motivation, attitudes Session6: behavioral Economics Session7&8: Presentat...

360º Customer insights Professor Jaime Veiga, MSMC Feb24 Class overview – topics Session1: Consumer trends 2024 Session2: Forum - Softeners case Session3: Neuromarketing Session4: Perception, attention, memory Session5: EXAM+ Motivation, attitudes Session6: behavioral Economics Session7&8: Presentation of final projects 2 Exam 15 min at the end of session5 10 short close-ended questions, covering class content 1-5 (only 1 question from session5) Similar to the EXAM in Core period Mock-up question: Q1- What do you think is easier …? a- Win market share b- Develop category size c- Both are straight forward for MSMC students d- It depends of how technological the category is Group project 10 min presentation+ 5 min Q&A to be delivered on session 7-8 (members of group can present or participate in the Q&A) Briefing already available in BB Rubric as follows: MAX Secondary data 20 Proposed improvements 30 Research plot (+details) 30 Actionability 20 02: Introduction and objectives Neuromarketing What happens in our mind …. …. And impacts your Communication and Customer experience execution Driving Innovation in Marketing and Communications 5 02: Introduction and objectives Who has experience in doing NeuroMarketing? Who has experience in designing market research? Who has ever done an Neuromarketing research? Who knows when to place NeuroMarketing research?.. And when NOT to place NeuroScience research? Driving Innovation in Marketing and Communications 6 02: Introduction and objectives of the Master class st 1 exercise … Are these Neuromarketing examples? 7 Introduction And this ad? Is an example of Neuromarketing? https://www.youtube.com/watch?v=A2wJikcfY3A 8 03: What neuromarketing is? Neuromarketing is a new field of marketing research that studies consumers' sensorial, cognitive, and affective response to marketing stimuli. Researchers use technologies to measure changes in one's physiological state (biometrics)… … to learn why consumers act that way, and which brain areas/process are responsible “find the buy button inside the skull” Driving Innovation in Marketing and Communications 9 03: What neuromarketing is? History of NeuroMarketing The bases for neuromarketing derive from the Greek Philosopher Plato Plato’s chariot-drawn-by-two-horses philosophy was the first to link the human person to a human soul (mind). One horse symbolizes human emotion (system 1) while the other is a representation of human reasoning (system 2); Driving Innovation in Marketing and Communications 11 To start … NeuroMarketing | Prof. Jaime Veiga 12 How do you explain this? NeuroMarketing | Prof. Jaime Veiga 13 What neuromarketing is? – THE BRAIN Just a few parts of the brain neuromarketers desire to stimulate (or not): Visual cortex – confirms the visual stimuli are being processed Amygdala – drives attention Nucleus accumbens—creates the expectation of pleasure Prefrontal cortex—controls higher thinking Hippocampus—assists with memory Insula—anticipates (and avoids) painful stimuli Mesial prefrontal cortex— registers disappointment when a hoped-for reward doesn’t materialize Driving Innovation in Marketing and Communications 14 Can you think of Neuromarketing techniques? Could you share? Driving Innovation in Marketing and Communications 15 04: Tools used today – Classification of neuromarketing tools Neuromarketing tools Recording metabolic activities in brain Positron Emission Tomography (PET) Recording electrical activities in brain Electroencephalography (EEG) Without recording Brain activities Eye Tracking Functional Magnetic Resonancew Imaging (FMRI) Magneto encephalography (MEG) Steady State Topography (SST) Transcranial Magnetic Stimulation (TMS) Skin Conductance Facial Coding Facial Electromyography Driving Innovation in Marketing and Communications 16 04: Tools used today – How does information obtained look like. Driving Innovation in Marketing and Communications 17 04: Tools used today – the top 4 neuromarketing techniques to date The top 4 Neuromarketing techniques to date … Driving Innovation in Marketing and Communications 18 04: Tools used today – the top 4 neuromarketing techniques to date Neuromarketing tools Recording metabolic activities in brain Positron Emission Tomography (PET) Recording electrical activities in brain Electroencephalography (EEG) Without recording Brain activities Eye Tracking Functional Magnetic Resonancew Imaging (FMRI) Magneto encephalography (MEG) Steady State Topography (SST) Transcranial Magnetic Stimulation (TMS) Skin Conductance Facial Coding Facial Electromyography Driving Innovation in Marketing and Communications 19 04: Tools used today – the top 4 neuromarketing techniques to date EEG HELMETS Driving Innovation in Marketing and Communications 20 04: Tools used today – the top 4 neuromarketing techniques to date EEG data – typical output Typical output is activation / valence – linked to cognitive activity and emotions Activation : Level of activity (see N1 – perception, P3 decision making) Valence: Hedonic tone – positive/negativehedónico positivo / negativo Driving Innovation in Marketing and Communications 22 04: Tools used today – the top 4 neuromarketing techniques to date Neuromarketing tools Recording metabolic activities in brain Positron Emission Tomography (PET) Recording electrical activities in brain Electroencephalography (EEG) Without recording Brain activities Eye Tracking Functional Magnetic Resonancew Imaging (FMRI) Magneto encephalography (MEG) Steady State Topography (SST) Transcranial Magnetic Stimulation (TMS) Skin Conductance Facial Coding Facial Electromyography Driving Innovation in Marketing and Communications 24 04: Tools used today – the top 4 neuromarketing techniques to date fMRI equipment Driving Innovation in Marketing and Communications 25 04: Tools used today – the top 4 neuromarketing techniques to date fMRI data analysis Compare with a reference (PRE) is a must Seeking for validation of hypothesis (or null) In this case: Faces/Houses images show a different process in the brain Driving Innovation in Marketing and Communications 26 04: Tools used today – the top 4 neuromarketing techniques to date We see faces all the time Driving Innovation in Marketing and Communications 27 04: Tools used today – the top 4 neuromarketing techniques to date Neuromarketing tools Recording metabolic activities in brain Positron Emission Tomography (PET) Recording electrical activities in brain Electroencephalography (EEG) Without recording Brain activities Eye Tracking Functional Magnetic Resonancew Imaging (FMRI) Magneto encephalography (MEG) Steady State Topography (SST) Transcranial Magnetic Stimulation (TMS) Skin Conductance Facial Coding Facial Electromyography Driving Innovation in Marketing and Communications 28 04: Tools used today – the top 4 neuromarketing techniques to date Facial coding … analysis How good are we reading emotions???? Exercise: Pls get a piece of paper / Word document. Write numbers 1 to 6 with a space next to them 1 2 3 EXAMPLE: 123456- Fear Anger Happiness Surprise Sadness Driving Innovation in Marketing and Communications Disgust 29 04: Tools used today – the top 4 neuromarketing techniques to date Facial coding … analysis How good are we reading emotions???? Exercise: Pls get a piece of paper / Word document. Write numbers 1 to 6 with a space next to them 4 6 5 EXAMPLE: 123456Fear Anger Happiness SOLUTION: 1-Happiness 2-Surprise Surprise 3-Anger 4- Fear Sadness 5-Disgust Driving Innovation in Marketing and Communications Disgust 6-Sadness 30 04: Tools used today – the top 4 neuromarketing techniques to date Facial coding … analysis Let’s start looking at the neck, head and face muscles) Example Not sincere smile & voluntary (Pan-Am) zigomatic muscle contracted on an isolated way Sincere and involuntary smile(Duchenne) zigomatic (major) contracted and the inferior orbicularis oculi. Driving Innovation in Marketing and Communications 31 04: Tools used today – the top 4 neuromarketing techniques to date Facial coding … analysis Coding system for the micro-movements of the different muscles (FACS) Example: happiness Driving Innovation in Marketing and Communications 32 04: Tools used today – the top 4 neuromarketing techniques to date Specialized agencies How is it done? La Specific software to analyze the faces of consumers when exposed to different stimuli Want more? Paul Ekman (“Lie to me) FACS https://www.youtube.com/watch?v=jXytQOkNaq4 Driving Innovation in Marketing and Communications 33 04: Tools used today – the top 4 neuromarketing techniques to date Which emotion drives more clothing purchases? When we are feeling … Happy? Sad? Stressed? Bored? Neutral? 04: Tools used today – the top 4 neuromarketing techniques to date Scientists have found that those who were sad, stressed or bored were 14% more likely to spend more than those who were happy or neutral. Of all the emotions, stress is the one that impacts spending the most, responsible for about 10% of the increase in spending probablity. In fact, stress and boredom can cost each person up to £1,250 per year, according to the study. The study also found that women were 40% more likely to spend more if they shopped when they were sad. More info: http://www.dailymail.co.uk/femail/article-5012583/Shoppers-likely-splurge-stressed-bored.html#ixzz5Ek1eDH2v Neuromarketing Tools: face coding using AI predictive tools https://www.youtube.com/watch?v=nwPtcqcqz00 Artificial Intelligence3e (AI) One example from the several agencies available https://www.youtube.com/watch?v=Jg2XwfN2PNg https://www.youtube.com/watch?v=gvIJAM6P_WI Extra Quiz Take a look at these people: Can you identify the 5 faces generated by AI? QuzExtraanswer QUIZ - ANSWER ANSWER: the 5 faces generated by AI? 1. Al female (93% incorrectly judge as human) 2. Al male (92% incorrectly judge as human) 3. Al male (90% incorrectly judge as human) 4. Human male (90% correctly judge as human) 5. Al male (89% incorrectly judge as human) 6. Human male (90% incorrectly judged as AI) 7. Human male 47 (86% incorrectly judge as AI) 8. Human female 31 (84% incorrectly judge as AI) 9. Al female 44 (82% correctly judge as AI) 10. Human male 18 (79% incorrectly judge as AI) 04: Tools used today – the top 4 neuromarketing techniques to date Neuromarketing tools Recording metabolic activities in brain Positron Emission Tomography (PET) Recording electrical activities in brain Electroencephalography (EEG) Without recording Brain activities Eye Tracking Functional Magnetic Resonancew Imaging (FMRI) Magneto encephalography (MEG) Steady State Topography (SST) Transcranial Magnetic Stimulation (TMS) Skin Conductance Facial Coding Facial Electromyography Driving Innovation in Marketing and Communications 40 04: Tools used today – the top 4 neuromarketing techniques to date Eye tracking equipment (Tobii leading manufacturer) Driving Innovation in Marketing and Communications 41 04: Tools used today – the top 4 neuromarketing techniques to date Eye tracking Widely used in the industry Serves to track attention 2D or 3D environment It measures Fixation points (ind) Flow (ind) Heat maps (group) Plenty of application for Customer Experience, shopper navigation, Mkt design … Driving Innovation in Marketing and Communications 42 How to analyze eye-tracking https://www.youtube.com/watch?v=lo_a2cfBUGc Key output Individual Fixation points Flow Cummulated (by leg) Heat map NeuroMarketing | Prof. Jaime Veiga 43 Example of the output 44 Example of the output- heat map 45 Where does your attention go ? https://www.youtube.com/watch?v=YiS9h8dOZYg https://www.youtube.com/watch?v=V1yGqHjSyCE NeuroMarketing | Prof. Jaime Veiga 46 Last tremds How can we make it easier? 47 EYE TRACKING Últimas tendencias: Inteligencia Artificial! ✓ Cada Segundo cuenta, hay que ser capaz de predecir lo que haremos! ✓ Algoritmo que analiza cualquier visual para ver qué es lo que llama la atención ✓ Ayuda a aumentar la confianza en los diseños, simplifica aprobaciones y aumenta el consenso en las prioridades visuales de diseño. ✓ Ayuda a comprender el área de interés, la secuencia, elementos y regiones visuales del estímulo … así como el contraste de colores, caras, perímetros, intensidad … ✓ Proporciona mapas de calor y resultados para ver qué elementos llaman la atención y cómo revisarlos. Like a visual spell-check Beneficio principal Medición del nivel de atención en cualquier circunstancia Limitaciones: No hay media de la connexion con el consumidor (reacción emocional ) a los elementos testados 48 EYE TRACKING AI predicting where the attention go http://solutions.3m.com/wps/portal/3M/en_US/VAS_NA/Home/How2/ 49 Neuromarketing Tools: eye tracking using AI predictive tools AI validation – Attention process according AI Vs actual human research https://www.neuronsinc.com Will you invest as main sponsor of Real Madrid ? Is the logo getting the attention of the soccer fans? Source: Neurons, 2022 AI análisis using predictive tool Source: Neurons, 2022 AI análisis using predictive tool Source: Neurons, 2022 AI análisis using predictive tool 04: Tools used today – the top 4 neuromarketing techniques to date RECAP: Neuromarketing techniques used… The KEY difference of Neuromarketing Vs other research tools is … biometrics data and technology used Eye tracking Measure attention and visual processing Functional magnetic resonance imaging (fMRI) Measure changes in activity in parts of the brain Electroencephalography (EEG) Measure brain activity Facial coding Measure emotions Driving Innovation in Marketing and Communications 55 05: Risk of Neuromarketing Getting info but not knowing how to read it Isolate the cognitive process you are after (Vs all the other cognitive process happening in parallel) Success criteria not defined Neurological differences might not relate to a different behavior Complicated and risk of confusing the consumer and getting the wrong answer Ethical issues Driving Innovation in Marketing and Communications 56 Let’s start with the learnings we already have! 62 Logos and Font type – key cues for our memory process 07: Marketing recommendations Would you believe this headline? 65 07: Marketing recommendations Would you believe this headline? Baskerville… “A HUGE asteroid is approaching the Earth … could provoque massive destruction and kill millions of people” Comic Sans… " A HUGE asteroid is approaching the Earth … could provoque massive destruction and kill millions of people” 66 07: Marketing recommendations Baskerville, the most credible font Source: New York Times, Hear, All Ye People; Hearken, O Earth. 67 How do we navigate a web page? Or Google page? How do we navigate a web page? Or Google page? While this depends on the culture! – left to right Reading Vs right to left (Arabic) 07: Marketing recommendations How do we read …? 70 Marketing application 71 Marketing application Face and the invisible arrow 72 Marketing application Face and the invisible arrow 75 Marketing application Show just BEFORE or AFTER the action 80 Marketing application Show (imply) movement 82 Show the emotion you want to get Use the emotion in the advertisement 83 Marketing application Use humour 44% more information processed if we are relaxed and Good- humored Lymbic system receptive and connecting messages Watch-out for cultural changes – humour does not travel well! 84 Final Remarks Neuromarketing is about understand better the impact of stimuli and how we take decisions It’s closely linked to market research activities To be used only if: other basic tools not valid exploratory/academic purpose More useful in the cases of: Unconscious mental process (attention, memory, emotions, … ) Bias or hidden factors driving choices Should complement traditional research techniques (asking, observing consumers) It uses new technologies (EEG, Eye tracking) Driving Innovation in Marketing and Communications 94 Neuromarketing Tools: eye tracking using AI predictive tools Exercise Which of those stimuli do you think maximizes the Brand impact? Neuromarketing Tools: eye tracking using AI predictive tools Exercise - results Neuromarketing Tools: eye tracking using AI predictive tools Where do you think the attention would go when having ads on videogames? embedded opt-in ad Fullscreen video Neuromarketing – live! https://www.youtube.com/watch?v=V3s2zUvuM1g NeuroMarketing | Prof. Jaime Veiga 98 Want more info? Recommended readings ❑ “Buyology” by Martin Lindstrom ❑ Funny and easy-going – great for biz trip reading! ❑ “Predictably irrational” by Dan Ariely ❑ Funny and easy-going – great for biz trip reading! ❑ “Why we buy ” by Paco Underhill ❑ Focus on the Point of Sale ❑ “NeuroMarketing” by Reinvose & Morth ❑ Focus on the sales application 99 Q&A time Any question on Neuromarketing? Next … we will learn on how we spend $$$$$$ Driving Innovation in Marketing and Communications 100 360º Customer insights Professor Jaime Veiga, MSMC Feb24