Too much information?

Editor’s note: John Owen is CEO of Melbourne, Australia, research software company QSR International.

At a brain imaging center at a university in the U.S., a woman is lying face-up in a 12-ton tube. The room is darkened and a white plastic cage covers her face. She is surrounded by brightly-lit computer screens and is given strict instructions to lie still, as even the slightest movement could affect the accuracy of what is about to take place. The neuroscientist then starts to go about his work.

Given this scenario, you could easily be forgiven for thinking that a complicated and possibly risky medical procedure is underway. In fact, what’s about to happen is that the neuroscientist is going to read the woman’s mind.

Welcome to the world of neuromarketing - a relatively recent development by the marketing and advertising industry to try and understand how people think and thereby gain greater insight into how people react to visual and audio stimuli.

Unlocking our minds

Over the past 10 years, neuroscientists have spent an increasing amount of time researching ways to read people’s minds through brain-pattern analysis, using techniques such as functional magnetic resonance imaging (fMRI). Already, scientists can predict with great accuracy the last thing you saw by analyzing your brain activity through a method of neural decoding, which involves scanning the brain while you look at thousands of pictures and analyzing how you respond to each one. Over time, this allows scientists to construct a general decoding pattern that can be used to identify an object you see without the need for pre-analysis.

If successful, these techniques could influence the way we view issues such as mental health, by allowing doctors to gain greater understanding of the mentally ill or people suffering from stress-related disorders. This in itself is an impressive achievement, but the far bigger challenge is how to uncover the actual thoughts associated with that object you see, although some scientists believe that even this will be achievable within a decade. At the same time, this technology is raising serious ethical concerns with the potential for misuse and the fear that one day our private thoughts may become more accessible.

Few are more curious

Understanding the complexities of the human brain is perhaps one of our most natural curiosities. But when it comes to gaining a greater appreciation of the science behind what drives peoples impulses, few are more curious than marketers and advertisers.

So how is this science being deployed in the marketing industry and is it all hype or can marketers really benefit from this technique?

Neuromarketing, a term coined in 2002, uses various sensor and imaging technologies, such as the fMRI referred to earlier, to measure changes in brain activity as well as in heart and respiratory rates. The subtle change in reactions can tell researchers precisely when a decision is made, what part of the brain is making it and even give clues as to why a particular decision is made.

Author and behavioral economist Dan Ariely has said that these cutting-edge neuro-tools could arm marketers with previously unobtainable information, as consumers themselves may be unaware of how they think, feel, react and, ultimately, consume. He listed food, entertainment, buildings and political candidates as a few examples of the “products” this kind of marketing could apply to.

Although understanding human behavior is fundamental to psychologists, psychiatrists, therapists and other similar professions, it is also the role of the market researcher and therefore it is little wonder that there is an increasing interest in this rapidly-evolving technology that promises so much in terms of the possibility of determining how and when decisions are made.

Until recently, researchers have predominantly relied on respondents to feed back information on how and why they make certain decisions. They’ve developed various questioning techniques that have provided reasonably reliable projections. But one of the reasons neuromarketing is so attractive is that it addresses, arguably, one of the major weaknesses of market research: identifying why people make certain choices.

In the traditional data analysis method of market surveys, customers may fail to express their real choice, or may even bend the truth, and this can lead to the failure of marketing strategies that do not take these factors into account. The neuromarketing approach of studying brain activity may help overcome this weakness, but it is a complex procedure, requiring many levels of scientific research, study and analysis and is likely to be a highly expensive investment. There is also another major disadvantage in that although this is an exciting and innovative technology with promise, it is still hard to correctly predict the thoughts and behavior of consumers - it’s not as if you can carry a 12-ton fMRI scanner around with you while carrying out surveys!

This type of analysis is carried out under laboratory conditions where testing on participants is done using multiple products and the purchasing behavior is analyzed using sophisticated scientific methodology. In addition, we are all different and the conscious or unconscious responses to visual or audio stimuli in a controlled environment could vary significantly. With this approach comes the risk of drawing broad-based conclusions because a handful of customers have shown a similar reaction, which in turn may lead to a more hit-or-miss marketing strategy than would justify the substantial investment.

Robust debate

On the ethical and moral side of the argument there is robust debate on the potential for harm or exploitation and the protection of consumers’ control, as neuromarketing research achieves greater effectiveness in understanding - and potentially manipulating - consumer behavior. One could argue that the essential objective of marketing as a discipline is to manipulate consumer behavior, and many of the traditional tools of marketing such as focus groups and surveys rely upon the subtle interpretations of human psychology to arrive at conclusions about consumer behavior. What is still unknown is whether the application of neuromarketing research techniques will allow sufficient understanding of the way in which the brain works to permit the manipulation of desirable behavior in consumers’ preferences.

There is also the risk of creating a consumer backlash where the application of neuromarketing research techniques is seen as a shortcut by marketers to “mess with people’s heads” instead of developing an appealing and rewarding experience that treats customers as individuals who will make the right decisions for the right reasons.

Bypass focus groups

Either way, market research firms are now beginning to offer their clients brain-based information about consumer preferences, choosing to bypass focus groups and other market research techniques on the premise that directly peering into a consumer’s brain while they view products or brands is a much better predictor of behavior. Studies have shown that most buying decisions about products are made at the last minute and understanding why a customer may forgo their favorite brand for a new brand is largely unknown and an area in which neuroscience may help unlock the answer.

Several major companies have already invested significantly in neuromarketing research with some perceived success, including the 2004 Pepsi Challenge   study which many claim led to the dramatic increase of interest from marketers in the potential of neuromarketing. In this particular case, 67 people had brain scans while taste-testing Coke and Pepsi and after analysis, it was concluded that, based on the taste test, Pepsi should command 50 percent of the soft-drink market. As Pepsi clearly didn’t have that kind of market share, and the results seemed to show that people were choosing Coca-Cola due to branding, etc., it allowed Pepsi to divert funds earmarked to improve taste into improving the Pepsi brand. But again, the question can be asked that, as the fMRI didn’t reveal anything new to anybody (the answer was already freely available from the vocal customer base), was it worth the cost?

In the past, the most common and effective way of reaching large market segments was to advertise regularly using a single form of media such as print or television. But today this approach rarely works, as the market has fragmented and a more focused strategy is required using different media depending on the target audience. The hope is that neuromarketing research techniques will provide a new tool to help create a more scientific approach to reaching consumers, by providing a clearer picture of how they will react to various forms of advertising.

As one example, St. Louis-based Emotive Analytics has developed a research technique to uncover the specific feelings potential customers have toward a new product or brand. Its approach is to try to understand the emotional side of consumer behavior by utilizing a combination of neuroscience and psychology. The company’s “emotional profiling” technique aims to capture emotions that people are aware of and willing to share and also reveal the subconscious emotions or those that they are specifically trying not to reveal. It attempts to assess both positive and negative feelings, as well as specific feelings that impact purchase decisions such as security, excitement and relaxation. The technique requires a quantitative and qualitative element in order to provide both the metrics that define the brands’ emotional profiles as well as what triggers the key emotions found in the quantitative emotional profiles, to tell marketers what to do to activate the desired emotions.

Often been effective

The use of psychological techniques in marketing and advertising has been around for many years, in particular to develop a positive association between a product and service and something desirable. These methods have often been effective and have been achieved without taking away the freedom of choice from the consumer.

As the science of neuromarketing continues to develop, the line between what is acceptable and what isn’t in terms of its applications will become thinner and thinner. It is hard to argue against the use of neuromarketing to develop and test strategies that are designed to help overcome significant social issues such as encouraging people to stop smoking or avoid obesity. But its use in advertising campaigns that encourage consumers to buy fast food or alcohol may be far less acceptable.

There is no doubt that neuroscience will be a vital tool in helping to open up a whole new understanding of the human mind. But as it develops, it will be important for organizations to tread carefully in its application to advertising and marketing to avoid public alarm and to allow sound science - rather than promotional hype - to dictate the extent of the regulatory framework constraining its use.