Impact of@neuromarketing on

current marketing practices

A*thesis Presented to*the Department of Retail Management#at K.J. Somaiya
Institute of Management Studies#and Research, Mumbai

In*the Partial Fulfilment of*the Requirements for PGDM Retail Management

By Sk Sahiriar#alam
Roll No. 55 | march 2019
PGDM | RM | 2017-19

Under*the supervision of
Prof. Krupa Rai
KJ SIMSR
 Student’s Declaration

I Sk Sahiriar#alam, declare that*the master*thesis titled Impact of@neuromarketing

on current marketing practices#as I submitted to*the K J Somaiya Institute of
Management Studies#and Research in partial compliance with*the requirements
for*the#award of PGRM - RM, Mumbai is#a record of my work during*the period from
July 2018 to February 2019 under*the guidance of prof. Krupa Rai.

To*the best of my knowledge,*the*thesis is#a record of#authentic work done(by me

during*the given period#and has not been submitted for#any degree to#any other
institute.*the original sources have been#adequately cited#and referenced. I#also
declare my#adherence to#all principles of#academic honesty#and integrity#and my
submission did not misrepresent or fabricate or falsify#any idea / data / fact / source.

Sk Sahiriar#alam
Date:
Place: Mumbai

Certificate Of Faculty Guide

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It is certified that*the work performed under my supervision in*the master*thesis titled,
Impact of@neuromarketing on current marketing practices submitted(by Sk
Sahiriar#alam.

This is his original work#and#all materials obtained from other sources have been duly
recognized in this*thesis.

Signature of*the Faculty Guide

Date:
Place: Mumbai

2
 Acknowledgement

I feel extremely privileged to have received timely guidance#and support from many
people throughout*the duration of my project for*the successful completion. I would like
to thank Prof. Krupa Rai for her prompt support#and#at#all times for her master*thesis
guide.*the*thesis was successfully concluded due to her positive support#and
constructive inputs.

I would#also like to thank PGDM-Retail Management Program Coordinator Dr. Vandana

Khanna, Program Coordinator Prof. Vilasini Jadhav for guidance over*the two years of
my#academic programme.

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 Contents

Topic Number Title

Executive Summary

Abstract

1 Introduction

2 Definition of@neuromarketing

3 Literature Review

4 The objectives of*the study

5 Neuroimaging: Benefits of Marketing

6 Brain#activity measuring methods for!consumer buying behaviour

7 Methods#and procedures for study

8 The four P’s of@neuromarketing

9 Case studies

10 Ethics in@neuromarketing

11 Critics of@neuromarketing

12 Future of@neuromarketing

13 Conclusion

14 Market Research vs neuroimaging tools

15 References

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 IMPACT OF@neuromarketing

Executive Summary

The objective of#any marketing campaign is&to tilt*the preference

of*the!consumer&towards#a specific brand.@neuromarketing,#a recent marketing
phenomenon, is#analyzing#and optimizing marketing strategies through*the use of
neuroscience knowledge#and methods.*the report investigates*the impacts#and
implications of@neuromarketing in*the future.

We will try&to delve deep into its positive#as well#as critical implications for
marketers#and customer experience. We will try to compare*the
results@neuromarketing tools have helped marketers#achieve#and compare it with*the
expectations practitioners had from it. In#addition,*the report will shed light on*the
ethical#aspects#and*the grey#area surrounding@neuromarketing.

Abstract

Lately,@neuromarketing has caught*the interest of both#academicians#and practical

literature practitioners.*the goal of this study is to#assess how@neuromarketing
tools#affect traditional marketing inputs#and get#a holistic understanding of purchasing
behaviour. However, no@neuromarketing survey was provided with#a detailed overview
of*the@neuromarketing effect on traditional marketing inputs, while considering both
technical#and ethical issues. In this paper,#a comprehensive literature review#approach
is used.*the increasing use of@neuromarketing techniques to evaluate customer
preferences#and decision - making processes#at*the same time is seen#as benefiting
customers#and marketers.
EEG, fMRI#and MEG#are#among*the most#appropriate techniques for neuroscience.
Critics, however, stress*the limitation of*the!consumer's freedom of will#and his
reduced#ability to decide on*the purchasing of individuals due to@neuromarketing.*the
recent paper#assesses*the effect of*the neurological marketing on various marketing
inputs#and follows its consideration of ethical defensiveness following#an evaluation of
Outside Reflexes#and Input / Output Models#and Inside Reflexes for brain#activity.*the
results show that@neuromarketing has#a high impact on!consumer buying
behavior,#advertising, price distribution, product branding#and decision - making,#as
well#as on marketing inputs.

Therefore,@neuromarketing can be seen#as#an outstanding extension in human conduct

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research#and brain research#as*the − black box, which can positively contribute to its
practical#applicability.

1. Introduction

1.1 History of marketing

In order to sell goods#as efficiently#as possible, it%is important to know what!consumers

want.*the market was filled with different types of goods#and services during*the
economic prosperity of*the 1920s.*the supply was much bigger than could
be#absorbed(by demand. In#addition, marketing was necessary for!consumer sales of
excess products. In#addition to this problem of non purchased goods,*the major
depression of 1929 meant that companies needed to find innovative solutions to sell
excess goods to customers not eager to buy. Thus, using!consumer behaviour
studies#as its base, marketing slowly developed into#a scientific field of study followed(by
research#and data instead of predictions#and#assumptions. Soon, scientists
understood*the brain#and its usefulness#as#an organ useful for decision - making
process. Emotions#and decision - making have been identified(by scientists.*they*then
began to measure emotions to find out what our decision%is motivated to make.
Marketing journals began giving emphasis on market research#and!consumer emotions.
Studies in marketing involving focus group, questionnaires, market tests were
used.#all*these tests focused on understanding how#a!consumer made decisions of
buying.

A film owner who reportedly blitzed' Drink Coca-Cola'#and' Eat Popcorn' on*the screen
so quickly in 1957 was used to send#a subliminal message that no one could know that.
But#all of*them subconsciously saw this,#and so much began to crave cola#and popcorn,
sales were reported. This has caused such#a fear of people being manipulated that#all
kinds of#advertising#aimed#at manipulating!consumer choices have been revolted
without his knowledge.#a law was enacted in*the year 1988 that prohibited firms from
using#advertisements that had deceptive techniques. It declared "subliminal or similar
techniques#are prohibited" in situations with similar tools "refers to#any device or
technique used to convey or#attempt to convey#a message to#a person through very
brief images or sounds that can not be perceived#at#a normal level of#awareness"

It was#a revolutionary idea for marketers though it led to#a breach of!consumer free will.
In time, psychological understanding#and brain functioning have improved.#advertisers
continued to use*the spirit to sell*their products with this.
The progress of@neuromarketing was#a predictable step in*the development of

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contemporary marketing. EEG#and MRI play#an important role in understanding how*the
brain functions#and neuroscience is developed.

Neuromarketing is distinct from subliminal messaging,#as@neuromarketing#attempts to

understand what#a!consumer#and market products#are best suited to those
decisions#and preferences, instead of using#a device to manipulate!consumer instincts.
However, like subliminal messages, for fear of!consumers being manipulated*the public
is#against@neuromarketing.*the thing#all understood was that#although*the two were
working deeper in*the brain,@neuromarketing won't make#a!consumer feel
or#appeal.*the#aim of@neuromarketing is to promote#and commercialize its products
in#a crowded#and saturated market in*the most effective way possible. This means
creation of psychological strategies#and target customers#at#a subconscious
level.@neuromarketing#aims to understand how#and what#a customer thinks#and*then
cater to*these decisions.

In*the early 2000s, Read Montague performed#an experiment in*the Baylor University,
where he created#a Pepsi challenge. He did both#a coke#and Pepsi#anonymous blind
taste test#and#a brand cued test here. That's why one customer chose one product
over*the next. When*the!consumers tasted blind,*they said*they liked Pepsi more.
When#a brand cued test was done, customers like coke over pepsi. He*then tested*the
same in#an fMRI machine#and observed brain#activity#and found Pepsi was really
enjoyed(by customers. Montague has found Coke's commercialization#and promotion far
more successful than Pepsi, which has led!consumers to think#about coke. Finally it can
have#a behavioral effect#and#an effect on!consumers if*the strong brand message is
strong. This survey showed that marketers were#able to understand what*their
customers want without putting social distortions on*the customer. Despite such concrete
results,@neuromarketing is still#a subject of study rather than#a conclusive result#as it
consists of various complexities#and variables of*the brain, dependence of results on*the
environment, quality of tools used. This has led to inconsistent results
via@neuromarketing tests. Thus still today, scientists#are working on discovering more
insights to understand*the brain.

2. What is@neuromarketing?

Marketing is#an#activity through which products#and people#are brought together

through understanding#and#analysis of*the relevant!consumer behavior. When
considering marketing development to@neuromarketing, how information#about
what!consumers want#and how*their preferences#are#acquired is*the key factor that
changes.

We can further divide into three fields of study within*the' neuro-

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area.'*they#are@neuromarketing, neuroscience#and neuroeconomics. "Neuroscience
is*the study of*the nervous system, which seeks to understand*the biological basis of
behaviour,"#according to Plassmann et#al. (2012). Neuroeconomics#attempts to explore
brain processes that focus on economic#aspects decision-making.@neuromarketing is#a
neuroscience branch that deals with marketing - related issues(by using brain research
methods in managerial practice to understand*the brain's subconscious responses.

These#are done using ' single neuron recordings ' to ' cognitive brain neuroimaging ' using
procedures such#as FAM (fMRI), POT, Electroencephalography (EEG) etc.#advertisers
have#always wanted to understand*the human mind in terms of what is*the thought
process before taking#a decision of buying. With*the creation of neurological imaging
techniques, it is believed to be possible to deliver*the results*the#advertisers long for.#a
detailed examination of*the topic can be difficult#as@neuromarketing
is#an#amalgamation of various overlapping disciplines such#as economics, marketing,
management, behavioural science, psychology#and neurology.

Though it is widely believed that*the proper#application of@neuromarketing can help

marketers understand!consumer behaviour better. Today,@neuromarketing continues to
be relevant only because of one reason. That is#accurate information can be directly
retrieved from*the brain of*the!consumer. It was not until*the functional magnetic
resonance imaging (fMRI) was developed that*the@neuromarketing studies started
gaining momentum.

The results of*the initial studies#appeared in*the year 1984 in#a book(by Stewart DW.
Since*then,*there has been#a constant investigation#and studies done on*the topic,
which further led to*the development of@neuromarketing. In 2002, Brighthouse Institute
for Thought Sciences was incorporated. It was*the first company dedicated
to@neuromarketing. In October 2002, professor#ale Smits from*the Erasmus University
of Rotterdam introduced*the term ‘Neuromarketing’.*the term becomes mainstream#and
creates#a buzz#all over*the world for*the first time when Forbes Magazine dedicates its
front cover to#a@neuromarketing#article(by Mellanie Wells in September 2003. In
2012,*the@neuromarketing Science & Business#association (NMSBA) was
founded#and headquartered in Holland. Today,@neuromarketing has separate
departments dedicated for its investigation#and experiments, with many
students#actively researching on it.

When comparing@neuromarketing with marketing,@neuromarketing tells us#about*the

strengths#and weaknesses of marketing.(by measuring certain#activities in*the brain,
marketers can find out*the effectiveness of#a campaign,#advertisement, website, flyer
etc.*these#activities take place in*the human subconsciousness. Traditional tools of
market research like surveys may not#always provide complete#answers. People#are
not#always honest. Sometimes,*they give#answers that*the survey conductor wants to

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hear#and sometimes people find it hard to describe how*they#actually feel#about
something.*therefore, it is believed that with time we can get closer to 100%#accuracy in
predictions#about!consumer behaviour with neuroscience#and@neuromarketing. Where
traditional marketing tries to#answer what is working#and what is not
working,@neuromarketing tries to#answer why something is working#and how. It joins
marketing, psychology#and neuroscience together. It gives us new insights into*the
customer's mind.

3. Literature Review

Neuromarketing is#an upcoming interdisciplinary field which is#an#amalgamation of

subjects like psychology, neuroscience#and economics.*the goal of this field of study is
to find out how*the human brain reacts to marketing#and#advertising stimulus. (Lee,
Broderick, & Chamberlain, 2007)
It was further said that in order to find out its effectiveness, brain#activity during#and post
experiencing#a marketing stimulus must be monitored#and measured with neuroimaging
tools (Laybourne & Lewis, 2005).

Fúgate (2007)#argues that in order new behavioral models of!consumer behaviour,

marketers must#adopt new roles. Practitioners should use neuroimaging tools to verify,
monitor,#adjust#and improve upon traditional*theories of!consumer behaviour.

(Gang, Lin, Qi, & Yan, May; Butler, 2008) In particular,#an in-depth#analysis of!consumer
purchasing conduct through*the use of@neuromarketing techniques is helpful,#as
blistering product representations#are constantly growing. Some things have to be taken
into#account, however. Firstly, it is important for!consumers to be mostly unable to
express*their needs or wishes when explicitly requested, which is why*the brain itself is
supposed to contain internal information to clarify real desires#and needs. If this expertise
was#available, it could most likely#affect people's buying behaviour, eliminating*the cost
drawback of*the@neuromarketing#aspects.

Neuromarkting techniques#are better suited,#as stated in#ariely#and Berns (2010) when

taking*the product's experience into#account than*the decisions made prior to*the#actual
product design. In other words, no valid results can be generated before product
development. It is*therefore suggested that#alternative methods be used in*the
development of new products

Agarwal & Dutta, 2015,@neuromarketing research(by#accurately measuring observable

brain behavior eliminates subjectivity#and#ambiguity. In order to improve behavioral
forecasts#and to encourage!consumer understanding, neuroscience has played#a major
role. It#also offers insight into neural differences if*there is no comportemental difference

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(Venkatraman, Clithero, Fitzsimons & Huettel, 2012).

In 1957, when*the best seller Vance Packard,*the Hidden Persuaders, was released,
critics expressed concern that marketers had been threatened with psychological#and
subliminal#approaches.*their warnings were based on*the#assumption that
marketers#are unscrupulous manipulators, who use every#available means to
bring!consumers under*their control to purchase*the brands#and products.

R. M. Gaines, R.P, Wilson, J. Hill. (2008) believed that@neuromarketing can invade

privacy(by using scanning#and persuasive techniques to manipulate!consumers without
regulations,#and threaten freedom of free will. He criticized that*the utilization of such
techniques would#affect!consumers'#ability to opt out of market consumption, leaving
people unable to withstand such efforts#and making*them easy goals for*the company's
campaigns.

On*the other hand, neuromarketeers such#as Lindstrom (2009a, 2009b)#and Dooley

(2010) discuss*the technological#advantages with!consumers#and organizations.*the
marketers would benefit!consumers(by creating products#and campaigns to help#and
make*their decisions easier than manipulated, while organizations would save much
of*their budget, currently spent on inefficient#and inefficient campaigns to improve
customer competitiveness#and improved customer performance.*there is#another
section of researchers who believe that@neuromarketing would be far more science
fiction than reality, since people in*the world can not be found with*the same thinking#and
changes based on personal experiences, values,#and character (Hubert, 2010).

3.1#articles

We#are now in#a "neuroculture" era, where neuroscientific knowledge is constantly

integrated into our life, culture#and intellectual discourses (Frazetto &#anker, 2009).
Mainstream Westerners see*the brain#as responsible for several functions, which, unlike
other organ in our bodies,#are irreplaceable to us. In*the principal notions of*the brain,
our identity, our free will, our compassion,#and our#ability to love is#all worked#and
understood.*the brain is considered*the holding cell of our 'personality.'

A 2012 study looks#at*the number of#articles on brain research from 1 January 2000 to
31 December 2010. Six daily newspapers in*the UK have only been searched, including
Daily Telegraph,*the Times, Daily Mail,*the Sun,*the Mirror#and*the Guardian. Only
2.931#articles remain*the neuroscientist mentioned#after deletion of duplicate#articles
such#as obituaries#and TV lists. In*the period before slight decreases in 2007,#and more
dramatically in 2009 (probably due to economic depression),*the number of papers

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published#annually steadily rose from#around 180(by*the end of 2000 to#around 350(by
2006. This shows*the growing interest of society in how we consider*the brain to be
important to our lives.

In*the New York Times op - ed#article of Lindstrom (2011), "You love your iPhone.
Literally,"*the#average person believes in love for his mother#and loving for his iPhone.
Psychological phenomenon buildings,#although loosely supported(by neurological
evidence,#are of greater interest#and credibility#as#a consequence of our cultural
obsession with*the#ability of*the mind to manage our function#and
personalities.*therefore, once*the media starts reporting that*there is mind – reading
machines predict our movements#as!consumers#and tell us to "buy buy buy". It must be
true that*the "neuroculture," because of*the "science" that supports*these claims, takes
over.@neuromarketing can not be#an independent productive study; our brain has no
purchase button#and we definitely can not look#at#a brain scan#and tell if*the emotion
is love. Without market research, we can't do much with neuroimaging.*the marketing mix
with marketing*therefore still needs to be used.

4.*the objectives of*the study

1. *the main objective is to evaluate*the impact of neuro marketing on different

marketing factors, such#as!consumer buying behavior#and#advertising.*the
main#aim is to identify which marketing tactics#are determined(by@neuromarketing.

2. Research questions:

a. What three different methods help to gain#access to*the brain#are used to

promote@neuromarketing?

b. Which of*the following marketing#areas could, in effect, be

influenced(by@neuromarketing: (1)consumer buying behaviour, (2)advertising,
(3)pricing, (4)new product development, (5)communications, (6)product
distribution, (7)branding#and (8)deciding?

c. How ethically justifiable#are*the@neuromarketing#activities used for marketing

problems?

4.1*theoretical Implications

The main focus is on*the connection between key marketing inputs#and*the effects
on*these factors of@neuromarketing. Secondly, we want to provide#a detailed
explanation of its technicalities#and ethical issues surrounding it.

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 4.2 Practical Implications

It is expected to offer more contradictory points of view in relation to practical impacts.

On*the one hand, more information can#allow companies to make better decisions on
pricing, branding, publicity, marketing#and new product development strategies, on
how!consumers think#and choose. On*the other hand,*the technique of
brain#analysis#and marketing strategy development can be considered#as#a
direct#attack on!consumer privacy, manipulating*the!consumer's freedom of choice. If
this is taken#away,*then*there will be no free markets#anymore.

4.3 Social Implications

Marketing#aims first#and foremost to match*the right product or service with*the right

user. Marketing designs#and#adapts*the presentation to*the preference of*the
customer.*the question is whether*the information neuroscience gives us is ethical or
not.#as*these insights tells us things#about our subconscious, it means we cannot control
it.*the question is if marketers know this information, can*they tempt*the customers to
raise*their sales without customers knowing#about it?
When discussing*the research method for@neuromarketing,*there#are various ethical
concerns that must be considered. On*the one hand,*the scientists#are of*the opinion
that#a marketing strategy can improve*the elimination of#a person's free will (Madan,
2010).
Remember that today!consumers ' freedom#and#ability to make choices on*their own is
one of*their main powers, given*the enormous#amount of different but similar
products#and#affluent societies.*the idea of#a free market would disappear if this were
to be taken#away or manipulated (Wilson et#al., 2008).

5. Neuroimaging: Benefits for marketing

If marketers could see#and understand!consumer thought precisely without#a social

filter, data on improper market research would diminish#and#a more efficient product or
service would be delivered.. Current market research strategies#are costly#and can
provide incorrect information#as to what!consumers#are interested in, since*they often
feel compelled(by social distortions, what*the marketer is willing to hear, or how*the

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marketer really felt#and eventually misled. Marketers hope that market research will be
replaced(by neuroimages#as#a more effective system in which to determine
what*the!consumer wants.*the idea is that!consumers ' brains can include information
on*their true product or service preferences Where' mind#and brain#are One' (Ariely#and
Berns, 2010; Breiter et#al., 2015). That hope is based upon knowledge. This hope is#also
based on*the hypothesis that scientists can find this information in*the brain.
Neuromarketing uses neuroimaging machines to see what#areas of*the brain certain
marketing incentives#are#activating. Current research focuses primarily on brain
mapping; it responds in particular to questions such#as, "How does#a certain#area of*the
brain#activate#and what can that tell us?#a more study is still needed to fully characterize
why some#areas#are#activated in excess of other#areas.*then, when Lindstrom (2011)
published "You Love Your iPhone, Literally," saying that love in#an insular cortex
when!consumers look#at*their handsets, neuroscientists said*the same science could
have been used to saying "You're disgusted with your iPhone. Instead of using
neuroimaging to learn how we feel#and evaluate specific products, we should understand
which#areas of*the brain#are enabled#and how we#act. This science can't be used to
conclude what we feel or predict what we do.

6. Methods to measure brain#activities in regard to!consumer buying behavior

6.1*the Brain
The brain can be described#as#an organ within*the cranium which is part of*the central
nervous system#and which enables#all mental#and physical processes, including
thinking#and feeling, of#a human being to be controlled. On*the first part,*there#are three
brain#areas:*the forebrain,*the midbrain#and*the hindbrain, where*the forebrain relates
to speech, thought control#and performance,*the midbrain to*the recognition of eye
movements,#and*the backbrain is responsible for#all unconscious processes in*the
body, such#as breathing#and heart#action.
On*the other side, Renvoisé#and Morin (2005)#also differentiate between three
minds,*the old one,*the middle one,#and*the new one.*the old brain takes#a decision
based on*the*theory,*the middle brain involves thinking,#and*the new brain deals
with*the process of feeling. So@neuromarketing is concerned with#an old brain when
looking#at this division because it tries to find out#about*the processes of making
decisions that influence!consumer procurement (Kampakoglou, 2012).#as#an
organ,#all!consumer behavior is carried(by*the brain itself. Interestingly, while only 2%
of*the body,#approximately 20% of*the human energy is consumed.#another key issue
is that#approximately 80 per cent of human brain#activity occurs unconsciously, leaving
just 20 per cent of intellectual#activity (Morin, 2011).*the brain has been#and continues
to be used to scan*the environment for potential dangers because of its origins#as#a
hunter#and#a collector striving for survival, mostly through*the part known#as "reptilian
brain." This part is#able to process#all visual stimulus(by not using visual cortex, which

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is*the biological#argument that humans generally favor. Being#aware that*the brain,
including numerous interrelated cells, is one of*the most complex#and interwoven
existing biological organ, translation#and interpretation of its#activities should
become#apparent#as being#a highly complex process (Purves, Fitzpatrick,#augustine,
& Katz, 2008).
While it is known that buying decision is not#a yes or no social response, means that
with*the use of#a certain publicity it can certainly not be expected,*the capacity
of@neuromarketing to look#at#and#analyze*the brain#as#a whole continues to be highly
expected in order to find new, unexpected results, providing new insights into
neuroscience.

Neuroscientists constantly observe*the individual brain#areas,*their relationships#and

how*they interact with!consumers. Current studies show that*the@neuromarketing
brain#areas#are#associated with*the frontal lobe#and*the subcortical structures
of*the#accumbens core with*the recompense center#and*the emotional#amygdala.*the
neurons in*the lobe#are linked to managerial operations which mean "the#ability of#a
person to conduct#a deliberate, independent#and self - serving behavior" (Kramer,
Miller#and Kemenoff, 2002), one of our brain's most#advanced#areas#and*the part that
separates us from our earliest#ancestors.*the frontal cortex,*the emotional, rewarding,

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design#and judgment correlated#area, lies specifically in*the frontal lobe.*these#are
mainly*the functions that!consumers ' neuroscientists use when making*their decisions
during shopping#and thus monitoring*the#area.

6.2 Outside reflexes

During this period,*the#autodetermining measures#are consistently contrasting to*the

real internal state, since people#are largely unable to rebuild#and express*their
thoughts#and feelings in#a valid#and trustworthy way. Consequently, we distinguish
between external reflexes, models of input output#and internal reflexes below.*the
collection of various methods, namely body language, empathic design, facial coding#and
vision monitoring, which have been#around for#a long time now,#are#all subjected to
external reflexes. Since*the technology in*the past has not been so#advanced, this
method is best suited for gathering brain information.*the methods do not examine*the
inner workings of*the brain, but rather perceive*the external reflections that originate
in*the brain, regardless of*the statements made#about certain things(by*the observed
person. *these "outside reflexes" can simply be seen when you concentrate on*them.

6.2.1 Body language

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It is worth recalling that external reflexes#are body#activities-causes that#are difficult to
suppress#and reflect people's emotions.#an#analysis of*these biological reflexes like
body language can provide#access to*the brain, similar to#a fMRI scanner.*the major
difference, however, is that nonverbal communication with*the body language or, in
particular, muscle contraction or relaxation is involved. Often it is underestimated*the
extent of communication via*the body's language, because this#actually expresses#a
huge#amount of communication. Body language can#also be expressed in*the form of
conscious or unconscious ways#as#a way of non-verbal communication, especially in
gestures, imitations, postures#and other body movements.

6.2.2 Empathic design

The word ' empathic design' is#also called#another method of#analyze people
without#any devices. You can#also refer to*the meaning of*the word ' empathic' to be
sensitive. Under this method, observation is carried out on#a normal basis
in*the!consumer environment (Postma, 2013; Leonard, & Rayport, 1997). In this way,
observation is done in*the!consumer's environment. Furthermore,#areas for
improvement can be identified.
The test subjects know that*they#are observed in#an empathical design. It is different
from corporeal language. Of course,#a prerequisite is*the#availability of*the product.
Since*the observer will be subjective in most instances, what you would like to note
should be explained in detail in#advance, otherwise*the final measures might be
devastating. It is important that*the viewer does not comment, but quietly#and
unobtrusively observes how*the test person uses*the product in#a natural environment.
This procedure is called*the Direct Marketing Principle, in which you#are expected to
collect,#analyze,#apply#and observe more information rather than to#ask#a person
directly. Empathic design is#a great way to identify*the desires#and needs of!consumers
because this method is low cost#and low risk. This tool may however not be used isolated,
but#as#a complement to other tools, such#as facial coding#and eye tracking, it may#also
be suggested that it is used to bring out its potential (Leonard, & Rayport, 1997).

6.2.3 Facial coding

Facial coding is#a special body language form that is systematized(by facial
expressions#and#associated with*the emotions of human beings. Dan Hill has
established 24 combinations of muscle movement that#are trackec back to seven
essential emotions. C1000#and KPN#are other Netherlands companies with experience

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using this technique, for example. In practice, test persons#are basically exposed to*the
stimulus while*they simultaneously determine, interpret#and#analyze*their face
expression.*the test person knows that during this procedure he / she is observed
(Postma, 2012).

6.2.4 Eye tracking

The last form of*the external reflexes#addressed is*the method of eye-tracking, which
provides information inside on*the non-suppressible internal brain#activity.*the method
itself is not new in*the world because it was#already carried out in*the 1980s for relatively
simple methods. Today,*the whole eye tracking process is computer controlled#and*the
range of options is*therefore increased.*the way to track what#a person sees#and what
he or she pays close#attention to is quite easy to#apply to#advertising, mailing,
website#and online games.*the chronological order in which things#are examined
can#also be determined.
However,*the method 6#analysis has one difficulty. In*the case where*the eyes fix#a
certain point for#a longer duration than can be done*there#are two different
interpretations. Due to its lack of understanding, one could#assume, on*the one hand,
that#a person must focus#a site for#a longer period of time.(by contrast,#a person could
look more intensively, because he / she is so#attracted to it.*the eye-tracking method can
not distinguish between*these two views (Postma, 2012).

6.3 Inside reflexes

The third#approach of Postma is only in#a different way*the same#as*the previous

two#approaches. In particular,*the "Inside Reflexes"#approach is dragged in
technologically#advanced methods originally developed for*the medical field. You see
yourself in*the brain(by using this#approach. To do this correctly, use EEG or fMRI scans,
which#are explained in*the sections that follow. *the#applicability is#a significant
difference#among*the input / output models#and internal reflexes:#advertising,
packaging#and branding#are concerned with internal reflex@neuromarketing. Nobody
is#asked to buy, but you can#ascertain what#a person is experiencing during media
exposure#and whether#a person's want can be calculated
neurologically.*the@neuromarketing input/output system is more#about buying
processes (Postma, 2012).

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 6.3.1 EEG

EEG means electric brain reproduction#activity for electroencephalography (Postma,

2012).#although*the EEG technique is#a rather old method*the electrical field changes
in certain brain regions#are still considered#a suitable way to measure. It uses numerous
skull#attached electrodes that recognize electronic signals representing current
brain#activity. Usually it is possible to make#a short - term recording of#about 20 to 40
minutes.*the responsible cells#are called neurons for#all our cognitive
responses.*therefore, each person has more than 100 trillion synapses#at his disposal
(Morin, 2011).*these neurons#are relatively long#and have electricity running through.
So, if#a specific stimulus like publicity is displayed,*the neurons#are#able to fire electric
current perceptible(by EEG (Morin, 2011). If several neurons communicate#at#a specific
location,*there is more electricity than normal,#and this can ultimately be measured
using*the EEG on*the scalp. In this way, recognized energy can be connected to certain
functional#areas in*the brain, which in turn can provide relevant marketing information
(Postma, 2012). In#addition,*the neurological knowledge can#also be used. In
practice,#a researcher can just put*the electrodes#attached to*the helmet or cap on*the
head of#a person#and*then display certain products or services that can track#and
record*the#attractiveness in*the form of#a brain#activation.
An#advantage of*the procedure is that*the EEG's temporal resolution in milliseconds is
very timely. This#allows short neural#activity to be detected easily. Moreover, it should
be noted that*there is relatively lightweight#and portable equipment needed for#an EEG
measurement which makes*the#action of measurement easier. Thus,*the person
being#analyzed is not bummed during*the measurement because*the person is#able to
move,#although most of*the tests#are conducted in#a research lab (Postma, 2012).One
downside is that*the use of EEG, which one does not want to quantify, is unwanted
electronic brain#activities (Postma, 2012). Thus,*the spatial resolution (about#an exact
centimeter) is relatively imprecise#and can be#augmented(by*the number of skull
electrodes.#at*the end,*these disturbances must be filtered#away.*the EEG
method#and*the eye - tracking method can#also be efficient,#as brain#actions#are more
pointedly recorded (Postma, 2012).

6.3.2 FMRI

MRI is#a magnetic resonance imaging tool which uses magnets in order to
create#an#anatomical image of*the brain (Postma 2012).#a MRI scanner is used to
measure blood oxygen levels that can indicate#an seismic#activity in certain regions
of*the brain (Ariely & Berns, 2010).The metrics work#as follows:*the content of blood
oxygen in*the brain can be identified(by*the magnetic field.*therefore, in some#areas
of*the brain*the oxygen – rich blood will#also increase if*there is#an increase in*the

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neural#activity because*the brain needs oxygen to work.*the method became practical
in*the 1990's#and#allowed scientists to understand*the human brain, which until*then
used to be some kind of black box (Kumlehn, 2011). It simply shows#a blood circulation
of oxygen-rich blood into various brain regions in order to explore*the human behavior.
FMRI is#a non-intrusive tool mainly used to promote marketing. In recent years,*the
interest in it has greatly increased,#as some neuronal systems linked to specific brain
functions can be isolated. This isolation from*the nervous system is#a very complicated
task that only#advanced tools can help. In practice,*the observed person is located in
certain passageways where he / she is placed in#a magnetosphere.#as#already
mentioned with regard to EEG, you can give detailed remarks#about*the brain function if
you know which brain#activities#are responsible for which functions.#a benefit of
this#approach is that*the order of brain#activity can, if#any,#also be recognized.*the
fMRI#approach provides#a better insight into*the brain, particularly where emotional
mechanisms occur, is#another#advantage over*the EEG method. It should be taken into
consideration that*the required devices#are fairly costly#and for*the person to be
observed*the scenario is not very pleasant (Postma, 2012).

6.3.3 MEG

To investigate neural#activity, Magnetoencephalography is#a similar non-invasive

procedure. In*the past few years, this procedure has#also received
greater#attention#and is intimately connected with*the EEG technique.#as*the EEG
method works on scalp fluctuations in local wattage,*the MEG encapsulates
electromagnetic fields of neural#activity. This technique is often used for neurosurgery
since it makes it possible to identify recreation processes following
injuries#and*therefore*therapeutic success.*the practical measurement uses highly
sensitive SQUID detectors, while measures#are undertaken to remove fields of
interference (Braun, 2007).*the scope of#a sensor in*the form of#a cylinder monitors*the
magnetic field of*the test person.*therefore*the#area#and ferocity of brain#activity in
different regions can be calculated.#although both*the MEG#and*the EEG methods#are
time - resolved, MEG is better than*the EEG. Nevertheless, this innovation, together with
EEG#and fMRI, is expensive (Morin, 2011).

7. Methods#and procedures for study

To comprehend how@neuromarketing has become#a tool that#affects current marketing

practices. We use case studies,#academic papers#about@neuromarketing impacts.

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Psychological studies will be*the primary research.*these will serve#as basis#and
contribute to*the development#and development of@neuromarketing to#a fully
integrated marketing tool that#asserts to enhance!consumer decision-making#and build
on*the existing understanding.*the#application of@neuromarketing#as#an#alternative
for traditional marketing means that@neuromarketing improves or produces inaccurate
data that is not useful for*the marketing sector in*the process of data generation.

The secondary research sources will be write-ups,#articles(by people, marketers, critics,

scientists,#academics responding to this new field of marketing.

8.*the four Ps of@neuromarketing

With*the#aid of*the marketing mix, marketers#aim to identify*the right customer for#a

price that*they#are ready to pay with*the right products#and services.(by trying to
follow*the marketing mix#and conducting exhaustive research, situations where#a bone
is sold to#an elephant can be prevented.

A successful brand not only has customer pull but#also convinces#a customer that no
other product can meet*their needs#as well.
Marketing mix is still*the most frequently used marketing tool used for years. Brain
imagery#allows marketers to experience sensory#activity in*the brain of*the!consumer to
look more closely for behaviors like memory, choice, care. It will#also help examine
periods before#and#after#a purchase. This can help in finding out*the effectiveness
of*the marketing mix. (Plassman,2015)
Since marketing mix is very important to understand how to market products#and
services to#a customer,@neuromarketing can either benefit*the traditional tool or replace
it. With each case study, we will focus on how@neuromarketing can either replace or
benefit every P of marketing mix.

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 8.1 Product

Before designing#a product,*the maker#always does#a market research. It is done to find

out*the needs of*the customers, how can those needs can be satisfied.#a good product
has#a number of benefits to buy from#a!consumer. This could include#a good product,#a
good service, or both.@neuromarketing can help producers understand why certain
products have been selected(by customers over others. Like focus groups,
questionnaires, simpler#and cheaper#approaches can be implemented. However,*the
cultural inclination of#a client lies behind*these market research methods, which can lead
to misleading results. If marketers#assume that@neuromarketing tools can help*them
find out more#about#a!consumer,#and recognize hidden patterns in*their
brain,*then*they can start joining*the dots between brain#activity#and*the preferences
expressed(by#a!consumer without#any social bias (Ariely & Berns, 2010).

8.2 Place

In#a marketing mix, where is*the product is being sold,#are people going to buy it from
that location? This includes both*the location of#a store#and of#a product in*the store. If
someone was selling tires,*they would want to#approach car dealers,#auto parts shops
to sell*them#and not#a departmental store. Similarly, one would place tires in*the tire
section#and not with car electronics parts.@neuromarketing can benefit users(by running
eye tracking exams on!consumers#and further#assist in product placement. This
includes tracking*the customers eye, what*they look#at*the first thing when*they enter#a
store, what*they never look#at. This#allows store owners to place products strategically
to improve sales.

8.3 Price

Price is one of*the main factors that determine!consumer decision making. Price is#again
closely linked with quality#and brand. Branded products#are often priced higher than
generic ones because*the!consumer is paying#a bit more because of*the “trust”
factor*the branded product has.
Neuromarketing cannot generate#an exact price#at which#a customer will buy#a product
blindly, but it could help us understand#a range of price where#a customer is more likely
to buy#and how*the customer reacts to certain prices in both higher#and lower ranges.

8.4 Promotion

Promoting#a product is*the only way#a customer can learn#about#a product's

existence#and why it should be purchased (Ruskin-Brown, 2006). It involves exposing
relevant#advertisements to targeted customers.#as#a renowned marketing saying goes:
"I know that half of*the#advertising money I spend works. I don't know which half,
unfortunately.@neuromarketing can guide marketers#and#advertisers to create content

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that is memorable enough to buy*the product or service that*the!consumer needs to
experience. If#advertising is done successfully, it can be done much more
successfully#and efficiently, it can target*the right promoters with products*they#are most
likely to be interested in.#as#a result, cost - effective#advertising#and more satisfied
customers would be created.

9. Case Studies

The next step is to examine*the use of neuroimaging tools in marketing practices

to#achieve marketing goals.(by doing this we will be#able to find out if*the new
technology is#a gimmick or it#actually does#add value to current marketing practices.
Every research study concentrates on#a marketing factor: product, price, location#and
promotion.*these case studies#act#as*the primary source#and help to explain how*the
marketing sector currently uses@neuromarketing.

9.1 Product: Foreseeing!consumer choice

A group study has been performed#and questionnaires have been completed in order to
find*the right target customer for#a product. However, it has been seen that sometimes,
people give wrong information which leads to inaccurate results due to feeling pressure,
wanting to tell what*the surveyor wants to hear, being unsure#about what*they truly want,
being unsure#about how*they truly feel#about something. With neuroimaging tools, we
can now see#a customers brain#activity where we focus on*their initial impulse
before*they have*the#ability to#articulate that feeling.#a marketer,(by removing*the
communication barrier,*theoretically discover what public wants.

The first essay concerns*the replacement of market research neuroimaging

machines.*the second#article deals with*the impact of impulsive decision on food intake.
Both papers#are from*the Market Investigation Journal. Despite being#a reputable
source, JMR favors*the promotion of marketing practices#and it may not be fully fair
to*the credibility of neuroscientific journals focused on science.

9.1.1#article 1
To#anticipate customer future decisions, Telpaz, Webb,#and Levy (2015) examined*the
use of EEG - machines. It was discovered to be inaccurate(by using traditional research
tools such#as questionnaires for evaluating!consumer preferences,#attitudes#and
buying intentions. It is of high importance for#a marketer that*their campaign is#able to
influence#a!consumers’ preference#and buying behaviour. Lack of information regarding
why#a!consumer chooses on product over#another is harmful for#a marketers job.
Neuroimaging tool such#as EEG is#an#affordable tool which can#anticipate customers '
choices#and thus benefit marketing campaigns. Studies have been conducted using fMRI

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devices to#address*the same problem but#are very costly.By using EEG,*the writers tried
to communicate that EEG neural#activity calculation can be used to "predict ranking
preference values#as well#as#actual choices in#a subsequent behavioral task".

Two methods#are employed in*these tests: ERP (event potential)#and ERSP (Event
spectral interference).*the tests#analyze*the EEG response of!consumers.*the EEg
continuously collects signals from general brain#activity.*the#activity is trapped#and
displacements#are displaced compared to other similar events when using*the ERP
process. This gives scientists*the means to perceive how quickly#a stimulus
is#answered.

The reaction to#a stimulus is measured over#a period of time in*the ERSP method.*the
EEG signal is divided into multiple frequencies. intensity*the frequency band changes
in#a certain time period.

Study(by Telpaz, Webb,#and Levy follows#a three-stage procedure:

Stage 1:#a summary of*the operation is given to participants#and ten!consumer

goods#are known.*there#are no#attendees notified of*the real prices of*the product.

Stage 2:#a EEG is used to calculate*the neural#activity while photographers see*the

goods met in stage 1. This is#accomplished to obtain#an#autonomous neural#activity

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measurement for every product in isolation.

Stage 3: End*the EEG electrode cap#and pairs of!consumer products shall be shown in
stage 1#and stage 2. You must choose goods#and*then classify*the products#according
to your inclinations.

In*the experiments, EEG data from stage 2 were used successfully to#anticipate*the
customers ' choice in stage 3.*the ERP#and ERSP maps of*the five least preferred
products#appear in*the figure#above. We can note that*the product#assessments#are
complete#and#a decision was taken#at 200-300 milliseconds. This demonstrates how
EEG technology can be utilized to predict!consumer views#and product choice. This
means that marketers can successfully use EEG neuroimaging data to find
out#about!consumer preferences#about products instead of doing inaccurate market
research. This will remove problems of traditional practices like bias from social pressure,
not knowing how one exactly feels#about something. This study pinpoints exactly which
parts of*the brain related to disliking#a product.

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 9.1.2#article 2
The impact of neurotranmers on our decision-making is being examined(by two University
of Utah marketing professors#arul Mishra#and Humanshu Mishra (2010).
Neurotransmitters#are#a chemical compound released from#a nerve impulse#at*the
nerve fiber's extremity#and transmitted to#another nerve fiber,#a muscle fiber, or some
other structure(by diffusing through#a synapse or#a junction.*they help#activate multiple
functions such#as searching for reward, excitement, sleep, etc.*the study was conducted
on*the#assumption that it is possible to influence individual behaviour(by influencing
specific neurotransmitters.*the main focus was on how certain foods may influence
or#augment certain neurotransmitters ' concentrations#and functionality.(by consuming
turkey, high quantities of tryptophan#are consumed. It is#an enzyme that increases
serotonin production#and impacts one's capacity to make impulsive choices.*the high
level of serotonin in*the body leads to less impulsive behavior#according to this study.*the
researchers defined impulse buying#as#an unexpected decision to buy#a product or
service just before buying. One who continues to buy such shopping is called#an impulse
buyer or#an impulse buyer. Because serotonin directly#affects impulsive behaviour,
higher levels of serotonin can reduce impulsive behaving in*the!consumer.

The study was conducted under two different conditions. One in#a lab#and*the other in#a
real world environment. In*the two studies,*the impact on*the impulsivity was compared.
In*the real world,#a subject#ate#a high tryptopean dinner (a thanksgiving dinner)#and#a
day well known for heavy discounts in shopping centers was studied during Thanksgiving.
In*the lab,#a drink was taken to increase*the level of serotonin#and to be tested without
/ without. In*the test,*the subjects calculated#an impulsive level(by measuring how
slowly#and quickly*they could press Y when*the numbers#assigned#as "favorable"
numbers were seen#and not reacted if*their numbers (any other numbers) were
"unfavorable" Serotonin has been surmised to decrease impulsive behavior in
controlled#and natural environments in#a!consumer. This would mean that black friday
can never be successful because impulsive buying in!consumers#are low when*they go
out to shop#after#a Thanksgiving meal. However,*the study states that!consumer
decisions cannot be totally dependent on serotonin levels.*there#are many other factors
that come into play while making purchase decisions#and marketers do not have*the
tools to influence#all such factors.*the study does demonstrate how decisions made(by
us#are#a result of chemical reactions in our brain. It#also supports*the#assumption
that!consumer decisions can be predicted within*the brain. But it does not give#any
solution to marketers to use*these#as tools to help in creating marketing strategies in*the
future.

We can*therefore say that*the two studies support*the notion that perhaps*the brain

25
could tell us#about*the decision-making of customers. We saw here how*the
preference#and behavior of!consumers changes#according to what*they eat. We can
thus#assume what#a customer will or might not want, but can't predict exactly what#a
customer will purchase.*the inference of*the study shows that@neuromarketing,
combined with marketing research studies, will be most useful. In brain studies, we#are
still#at#a preliminary level. In this way, we#are not yet ready to replace traditional
marketing studies with@neuromarketing. It has been confirmed in*the first study that
choices can be comprehended through use of EEG.*the second study shows that several
variables, including food,*the environment, may be behind decision-making. So it's not
possible to tell specifically what#a customer will buy.
The most desired#and controversial#area of@neuromarketing is#accurate forecasting of
customer decision because it is infringing on privacy#and free will. It can be impossible
to do so, however, while finding*the key to how#a!consumer makes decisions.
Thinking#about*the last time you bought#a piece of#apparel. Was it#an impulsive
decision, was it#a planned one, was it for#a particular event, did you buy it because you
were feeling#a bit down, did you buy it to celebrate#a newly received promotion?*there
can be countless number of reasons that go behind decision making. This makes
understanding*the neural science behind buying decision difficult.

9.2 Price: Brand - premium relationship

In*the second scenario study,*the efficacy of branding#and pricing is examined. Branded

goods#are usually more costly than*their generic counterparts,#as quality#assurance is
provided(by brand#and*the confidence that#a!consumer has over time to build on. We
will look into two cases. One that focuses on*the relationship between wine prices#and
wine tastes.*the second study examines how brands influence decision - making.*the
objective of this research is to learn how@neuromarketing can help us to price#and
brand#a product.

9.2.1#article 1

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The study was carried out(by inspecting*the brains of people in#a fMRI device who were
drinking wine.*the subjects have been told that 5 different vintage versions will be
sampled, but in fact only 3 different vintages have been given. Two of*them have been
repeated twice (see table#above for wine costs).*the outcomes concluded that*the wine
taste was better than it was before when*the prices of*the wines were
increased.*the#activity in*the medial orbitofrontal cortex (mOFC) was seen in*the
machine,#a region in*the prefrontal cortex linked to human pleasure experience.
The figure below shows*the results form*the brain scan test.*the blue line is for*the 10$
wine#and*the green line is for*the 90$ line. In figure D, we can see that when*the wine is
declared prices#are $ 10,*the blue line shows#a negative percent change from that of
green line. While*the green line shows#an increase of 0.5%, indicating that*the brain
pleasure centres were more#active when*the subject was drinking*the expensive
wine.*the scan results in E clearly shows this#activation in brain, in*the mOFC.
This study shows#a relation between branding, pricing#and pleasure. We can see that
how social bias can can#affect*the pleasure#and utility received from#a product
(Here*the bias being, more expensive wine tastes better). Wine is#a product which is
consumed conspicuously#as it is#a luxury product. This study shows us#an insight into
how social bias, branding#and pricing can be tweaked to change*the
experience#a!consumer has.It#also shows how@neuromarketing can shape marketing
strategies for#any product(by looking inside*the!consumer's brain when it is experienced.

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 9.2.2#article 2

The study of*the impacts of brands on people's brains was conducted(by Chen,
Nelson#and Hsu (2015). We identify certain brands with certain types#and characteristics
when we think#about*them. Example: we might think that*the brand mercedes
has#aristocracy, luxury#and success.*the motive of this study is to find out if*the brand
personalities#are pre existing in*the!consumer's mind or#are#a result of external
influences. Sonalities pre exist or result from external influences in*the mind
of*the!consumer. Seventeen people were placed in*the fMRI scanner#and emblems from
44 popular brands were shown for this study.*the subjects were shown four randomly in
each of*the 44 brand logos.*the subjects were#asked to carry out#a survey to
inquire#about*their#appetite, preference#and familiarity with each brand.*the research
resulted in*the researchers being#able to tell*the brand that*the subjects were thinking of
when*they looked#at*the pattern in*the brain scans#and compared it with*the#answers
of*the study.

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The fMRI tests represent#a single#axis brain slice. Intensity is depicted in colour. Red,
high energy#and blue, lower intensity indicator. Section#a lists#all*the useful brands.
Section B displays*the different personality traits of*the brands,#and Section C
demonstrates each personality's forecasted brain scans. Section D equates "Disney" with
"Gucci"#as#a brand. Looking#at Disney's forecasted#and real-life scan images, it can be
seen that*the upper#and lower brain is triggered. When you look#at scans from
Gucci,*the top#activation is visible, but in*the lower part of*the brain it is much lower. We
can*therefore say that Gucci's forecast scan does not match*the current Disney scan.
Various#areas of*the brain#are triggered for each brand. This implies!consumers can
have different perceptions for different brands.
This study puts emphasis on that part of*the brain that gets stimulated while perceiving#a
brand.
By understanding*the location of*the particular thought process,*the researchers
were#able to predict#a!consumers perception#about#a particular brand. This could open
up future studies on subjects which delve into how to market specific brands based

29
on*their unique personality.
This study indicates that@neuromarketing practices can open up studies in innovative
concepts like effect of branding#and price on#a products perception.
What@neuromarketing has not changed is how brands like gucci, disney#are
marketed#and how#a!consumer interacts#and feels#about such brands. But what it
sheds light on is providing important data#about what#a!consumer is looking for
when*they purchase products of#a particular brand.

9.3 Promotion: Effective#advertising

Neuromarketing has been used to design promotional#activities for brands, create

TV#ads(by understanding how!consumers react to promotional stimulus. Through
several studies, marketers have tried to find out how brain imaging data#and
neuroscience can help in creating productive#and memorable#ads for!consumers.*the
studies show how packaging, marketing#and emotions will#affect*the!consumer's
decision buying#and determine how#anti - tabacco campaigns Wang et#al (2013) can be
more effective.*the study here will focus on how promotional#activities
like#advertising#and packing#affect decision making in!consumers.
It was hypothesized that*the brain reacts differs to negative (non-attractive) stimuli#and
to positive (attractive packages), differently. This hypothesis tested how different
packaging#affects brain parts#and how*the preference of brands#as well#as total sales
was influenced. It is common knowledge that more customers#attract#appealing
packaging (Stoll et#al., 2008).
Consumers were placed in#a fMRI machine#and#asked preference for packaging based
on*their#attractiveness,#as shown on screen.Researchers found that*the#area
responsible for decision-making was#activated in*the medial prefrontal cortex
(MPFC).#attractive packaging was found to have received greater#attention while
unappealing packaging#activated#areas of*the media, middle,#and top front
cortices.*the unfavorable outcome, risks#and conflicts#are connected with*these#areas.
Desirable packaging might not#assure#a product sale, but it increases!consumer brain
share#and*the likelihood of buying it. This study emphasises on correlation between brain
neural function#and#attractiveness of packaging. It opens up doors for future explorative
studies which focuses more on specific types of packaging#and products.

9.4 New product development#and@neuromarketing

With respect to*the effect of@neuromarketing on*the new marketing tool for product
development,*the effectiveness might be more restricted.@neuromarketing methods#are
more suitable than making decisions before*the#actual design of*the
product,#as#ariely#and Berns (2010) have stated. This means that before product

30
development, no valid results can be#assumed.*therefore, when developing new
products, it is suggested to use#alternative methods (Ariely & Berns, 2010).
However,*the#argumentation looks quite different when considering Calvert#and
Brammer's study (2012). In particular,*their study shows that fMRI can funnel information
efficiently. It could be extended because*the internal information would be divulged
during*the pre - testing#and development of new products.The paper suggests
that@neuromarketing may be efficient but not*the greatest means to design new
products, since*they#are more suitable for finished product testing, when taking
into#account both of*these#arguments. Methods like*the SWOT examines to classify
product#and market strengths, weaknesses, opportunities#and threats,#are more
suitable for*the examination of product design.

9.5 Product Distribution#and@neuromarketing

When it comes to influence of new marketing on product distribution,*the#argument is

that*the use of@neuromarketing methods such#as oeil-tracking, body language, EEG,
or fMRI is possible to obtain#appropriate internal information (Ailawadi, & Keller, 2004;
Kotler, & Keller, 2005).#a particular example of decision-making#and*the
distribution#and#assessment of products with@neuromarketing methods is*the top-shelf
example. In this instance it is stated that those products in top shops#are*the only ones
that!consumers#are#actually evaluating. It is known that top locations#are
more#appealing#and*therefore more likely to be chosen(by purchasers For example, if
you go shopping#at grocery stores, you can put#an EEG cap on your head#and track
your eyes through*the supermarket.#all this can be finally#analyzed#and will probably
contain information on*the decision-making processes of people.

9.6@neuromarketing on product design

Let's recognize*the impact on product development of@neuromarketing.*the design of#a

good#and its presentation in#a warehouse or packaging#are first images that!consumers
see.*the design#and representation of#a product itself should*therefore be carefully
examined#and comprehensive. Because@neuromarketing instruments like fMRI#and
EEG can explicitly detect which brain#areas#are triggered in specific time periods,*these
devices#are extremely beneficial in product development. Many different product models
can be presented to#a!consumer,#and*the brain can evaluate*the most effective brain
impacts of*these products. Because*the process takes place unconsciously in*the brain,
it is more reliable than simply giving verbal descriptions of your inclinations.#a study(by
Reimann, Zaichkowsky, Neuhaus, Bender#and Weber (2010) found#a compulsorily
increasing#activation of*the#accumbent nucleus#and*the ventromedial prefrontal cortex,
which is responsible for emotion#and cognition of prizes during decision - making,

31
through#appealing#and esthetic display in form of its layout or packaging. FMRI#and
EEG#are*the only means of perceiving such#activations.*therefore, we can conclude
that#application of@neuromarketing methods can be very efficient when#applied
properly to#affect*the efficiency of current marketing device pricing.

10. Ethics in@neuromarketing

Neuromarketing has been often#accused of trespassing ethical boundaries,

violating!consumers privacy#and breaking!consumers trust.#aThe category "risks of
harm#and infringement of rights" falls under
most@neuromarketing#allegations.*there#are two prevalent ethical concerns which#are
linked to@neuromarketing:#a supposed purchase button is found in*the brain, which can
once detected influence!consumer decision-making#and handling of goods#and
services. However,*the notion of total!consumer desire manipulation is#an unreal issue
that could only exist in*the distant future. Currently we do not have enough
information#and research to#accurately forecast what customers might want
unless*they*themselves know it. World media describes@neuromarketing#as#a#area of
study in which customers buy *their products(by finding*the purchase button within*the
human brain. However*the reality is totally different from how*the media currently
perceives*the study to be.*the real purpose behind@neuromarketing is to create better
products, service#and more memorable#advertisements#and promotional
materials.Marketing#aims primarily to comprehend#and meet*the needs of!consumers
"(Stanton et#al., 2016).@neuromarketing will help to enhance#and improve*the
effectiveness of traditional marketing practices#and will not be#a new deception
technique.@neuromarketing will complement traditional marketing to market#a product
to#a customer that will most likely like to use it, instead of manipulating!consumer
purchases of one commodity to#another.
This raises#a different issue in turn. Is@neuromarketing used for selling products, like
cigarettes, not required(by!consumers? What happens to#a SME sector that can't#afford
costly neuroimaging machines#and expertise when*the@neuromarketing industry can
market products more efficiently? This paves*the way for#a future where more cash-rich
companies can offer fMRI#and EEG machines#and better market*their products that#a
small business is unable to market#and so struggles to offer!consumers products. This
would lead to larger companies capable of removing customers from smaller firms
through better understanding of*their customers, better marketing practices#and better-
in-class products. This could ultimately lead to dissolution of smaller companies.
Institutional Review Board (IRB) is*the body which currently ensures companies#are
operating#and carrying out research practices ethically. But it is not responsible
for@neuromarketing#and marketing practices of corporates. This means companies can
carry out marketing#and market research without#any compulsion to follow#any ethical
code of conduct.#as@neuromarketing becomes more mainstream#and integral to

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marketing functions of#a company, it will become necessary for#a regulating government
body to intervene, set standards#and monitor*the#activities of companies.
When considering*the ethical#aspect of@neuromarketing,*the opinion of Muphy,
Illes,#and Reiner (2008) must#also be considered.*there#are two major moral conflicts
in@neuromarketing research: firstly, to protect researchers*themselves#and to
use@neuromarketing ; to protect!consumers ' independence#and#autonomy#as regards
decision - making, especially when further development has to be done
in@neuromarketing's efficiency.*the rapid growth of companies
offering@neuromarketing services can provide evidence of this ethical concern.
The Lancet (2004) talks#about*the quick requirement#and solutions to preventing
exaggerated privacy interference.#as suggested(by Murphy et#al. (2008), it is possible to
introduce#a code of ethics.*the invention#and more responsible use of new#and
enhanced technologies would be#also#an opportunity while
simultaneously#addressing*the problem of*the lack of oversight, for example(by
introducing internal quality standards.

11. Critics of@neuromarketing

Critics have#always been#around to point out shortcomings#and flaws

of@neuromarketing. It is#accused to be either totally unreliable or#accused of being too
reliable that it can reveal deep secrets#about#a!consumers buying behaviour. To reduce
confusion#about what is known#and unknown#about@neuromarketing, let's look#at
what scientists#and marketers know currently. Marketing professionals#and!consumer
product neuroscientists#are trying to find out*the meaning behind what certain parts
of#activated brain means#and how this information can be used practically. While we
keep trying to find out#answers to such topics,*these can hardly be clarified totally, till we
become more knowledgable#about how human brain functions. Thus
currently,@neuromarketing#alone is not competent enough to get practical results but#at
best can be used#as#a compliment to current marketing research practices.
Countless#articles on' brain optimization' have been penned that improve*the brain's
functions (O'Connor 2012). This is*the subject of ideal brain optimization.*the*theory is
supported of*the mixability of human brains,#and scientific techniques#and tools
such#as@neuromarketing can distort*them. This led*the public to misinterpret or
misunderstand*the implications#and effects of@neuromarketing. People started making
broad generalisations based on*theory which was not totally understood. We must keep
in mind that until more is known#about*the exact capabilities of
neuroscience#and@neuromarketing, we cannot make definitive#arguments for
or#against it.
Many important views have to be taken into consideration when considering*the question
of@neuromarketing. Gary Ruskin, Chief Commercial#alert Officer, contends that*the

33
serious impacts of*the targeted marketing strategy can pinpoint epidemics, such#as
obesity, diabetes,#alcohol, gambling#and smoking. Other impacts may include-
consumption#and dependence on products#also deemed harmful. Thus,*the
Commission forecasts that#any improvement in*the productivity of marketing techniques
can harm society itself. Other critics claim that#although@neuromarketing practices
inevitably violate*the privacy of society,*the trend can not be predicted to stop#as many
businesses do see*their revenue growth#as*their primary objective–regardless of
whether#a possible breach of trust#and decisions may occur. #another viewpoint,
however, contends that@neuromarketing techniques do not#allow#a person to
determine his real behavior, but only neurological proof of his or her behaviour indicates
that it is thus impossible to find some sort of buy - button, because only certain#areas
of*the brain can be noticed instead of inspired. In*the end, we can say*the biggest
threat#and biggest criticism of@neuromarketing is that*the initial results
of@neuromarketing have*the potential to collide with free will of people#and thus
destroy*their privacy.

12. Future of@neuromarketing

With growth in*the field of@neuromarketing#and neuroscience studies,*the

understanding of its implications in marketing will get better. But one must be ready for
consequences like with most#advancements. With rising interest
in@neuromarketing,*there has been#a growth in*the number#and quality of studies
done(by neuroscientists in Business schools. This has led to creation of new findings
(Plassman et#al., 2015).
People#all over*the world in most countries have peace of mind because*they enjoy
rights like freedom of speech. It gives us*the#ability to question, reason#and#ask logical
question to problems#around us. When media portrays
neuroscience#and@neuromarketing#as#a studies intended to read*the thoughts of
people(by looking into*their brain, discover#a buy button,!consumers feel like*they have
been robbed of privacy#and#are*the on*the verge of losing free will. Inspite of such
concerns from!consumers#and media, big companies like Google, Disney, Frito-lay
uses@neuromarketing to test!consumers reaction to various marketing stimulus. But due
to widespread fear due to misconception#about@neuromarketing,*these studies#are
carried out in#a low profile mode, out of sight of*the public. To take*the subject more
seriously(by populace#and*the science community,#and to change marketing
standards,@neuromarketing must be more prominent#and strong in#academic
papers#and in*the fields of schooling, industry#and medicine. This will mean prominent
personalities from*the field of@neuromarketing#and companies together clearing*the#air
of doubt#around@neuromarketing practices,#address ethical dilemmas#and*then go
forward with further studies.

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13. Conclusion

If used effectively,@neuromarketing can#act#as#a catalyst for traditional marketing

practices#and help marketers better#and efficiently comprehend!consumers#and
meet*their needs. While@neuromarketing is not evolved enough to replace marketing
mix, market research, it can provide#adequate support#and help marketers find right
customers for*their products#and services.#additional benefits of@neuromarketing can
be gained if*the customer prefers#a product, develops brain mapping initiatives,#and
enhances our brain's overall#awareness.*the#above studies show us how*the field
of@neuromarketing is developing#and how*they will impact marketing research
practices. It was found that@neuromarketing can have*the highest positive impact on
promotional practices#and guide pricing strategies.(by increasing*the prices of wine we
saw that*there was#an increased#activation in pleasure centres of*the brain. This shows
that social biases not only#affect our preferences but#also makes!consumers
perceive*the taste of wine to be better Plassman et#al. (2008). In*the study done(by
Chen, Nelson#and Hsu’s (2015) we saw that human brain#associates brands with
different personalities.(by using*the perception of brand#and price, marketers can
tweak*their marketing strategies to best suit#a product#and its target customer.
Given*the many variables that#are important to!consumer choice, including*the
ethical#area of!consumer freedom,@neuromarketing is highly unlikely to be#a stand-
alone field of study in*the marketing field. But*there is#a possibility that@neuromarketing
will become#an indispensable part of marketing research#and practices#as#a
supplement or catalyst. This way, marketers will be#able to harness*the#advantages
of@neuromarketing in form of better insights#about#actions, preferences#and reactions
of target#audiences to different marketing stimulus. It will reduce costs of companies(by
reducing pointless promotions that do not have#any positive impact. But, it is highly
unlikely that#any marketer will be#able to use manipulation#and sell#a bone to#an
elephant.

14. Market Research vs. Neuroimaging Tools

35
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