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buy .OLOGY Understanding Human Behaviour. Buyology. Martin Lindstorm Born in Denmark Lives in Sydney World leading brand expert “ buy .OLOGY “ New York Times Bestseller Pub 2008 Examines customer behaviour. In Search of the Buy Button. 150,000 new products launched per year
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Buyology • Martin Lindstorm • Born in Denmark • Lives in Sydney • World leading brand expert • “buy.OLOGY “ New York Times Bestseller • Pub 2008 • Examines customer behaviour.
In Search of the Buy Button • 150,000 new products launched per year • 26000 new brands per year • Marketing traditionally uses questionnaires • Focus Groups • But not very successful • 80% will fail • Why?
fMRI – basic principle • Neural activity leads to local changes of deoxyHb and oxyHb • Hemoglobin is diamagnetic when oxygenated but paramagnetic when deoxygenated. • The magnetic resonance (MR) signal of blood is therefore slightly different depending on the level of oxygenation. • Cost of scanner: 2 – 2.3m (3 Tesla) • 525 USD / hour Avg 1 hour per patient
Striatum=Caudate + Lenticular Nucleus + Int Capsule Lent Nuc = Putamen + Glob Pall Input to BG A long time ago … neuroanatomy
Striatum • * Ventral: Preparation, initiation and execution of reward-related behavior as a result of successful integration of (relevant) emotional and cognitive information (strong connections to the OFC and the ACC) S even when rewards were cued but omitted S www.brain-maps.com
The Pepsi Challenge • 1975 • 68 billion USD soft drinks industry in US alone • Coke was dominant • Pepsi challenge: blinded test to see which tasted better. • More than 50% preferred Pepsi but this did not reflect sales. • Why not?
fMRI & Pepsi Dr Montague Neuroimaging Lab 2003 repeated the test but with fMRI (no 67) Same results when participants were blinded. fMRI reflected same results in the ventral putamen: stimulated when we find tastes appealing. Unblinded: 75% said they preferred Coke. fMRI: Ventral Putamen AND medial prefrontal cortex (higher thinking and discernment) Positive Associations with Coke beat rational Pepsi preference based solely on taste: history, logo, childhood memories, ads over the years etc. Beat back the taste of Pepsi.
Now v Later • Psychologists at Princeton Uni. • Random students, Amazon.com gift voucher • Choice between now at $15 or 2 weeks later and $20 • fMRI: lateral prefrontal cortex (executive decision making) triggered by both.
Emotion v thought • But $15 now also produced activity inmost brains in the Limbic areas (emotional life and memory formation). • The more emotionally excited they were the more likely they were to opt for the immediate gift. • Emotions won over rational thoughts.
Advert Recall • By 66y most people will have seen 2 m TV commercials • 1965 34% recall • 1990 8% • 2007 survey 2.2 commercials recall • Information overload
Product placement works • American Idol • Coke and Ford invested 26 million dollars on ads • Ford ran traditional ads • Coke used product placement: placed cups, Coke red walls, furniture in the shape of bottles, judges sipped coke on the show. • Pre and post show EEG testing was done. • Logo recall of Ford commercials was suppressed
Unboxing Video • 2006 • Nintendo launches Wii • Nick: recorded an opening the box video • 76000 views on YouTube in the 1st week alone. • Spawned the rise of: www.unboxing.com & www.unboxit.com • Aspirers
Cigarette Adverts & Subliminal Advertising • Phillip Morris offers financial incentives to fill bars with their colour schemes, furnituer, ashtrays • 20 smokers exposed to images with fMRI • Explicit cig. ads: Nucleus Accumbens (reward, pleasure, craving addiction). • Non-explicit images (red Ferrari, camel in desert, boys on horseback) upto just 5 seconds: immediate and greater activity in the same regions of the brain as with watching expicit ads. • Why? Decreased defence mechanisms
Subliminal effects • Prior to smoking advert bans • Silk Cut started to use image association ads • Without mention of anything. • Adverts with logos but without health warnings were less powerful than ads with logos and health warnings. • Prob. bec more enticing.
Ritualistic behaviour • 1990s Guiness sales were falling. • Because it took time for the head to settle. • Time was of importance. • Guiniess rolled out adds stating: ‘’Good things come to those who wait”, “It takes 119.53 s to pour a pefect pint” • Sales were turned around. • The art of pouring became an awaited ritual.
Somatic Makers • Sound: Kellogs cornflakes crunch is engineered to be unique • Shape: Duracell and bullet shaped batteries. men believed they wee stronger and more durable but they were the opposite • Weight: Bang & Olufsen Remote Control a slab of Aluminium is placed inside. 200 customers given one without Al. => broken • Colour: Egg yolks in Saudi – vitamin mixture to enhance yellow colour because consumers associate colour with quality. • Smell: RTX9338PJS— code name for the just-cooked-bacon- cheeseburger-like fragrance used by fast-food restaurant • fMRI : somatic markers activate the same areas of the brain as a logo, but when combined with the appopriate logo do so more intensely.
Nice but so what? • Our patients are consumers • Compliance is a major problem • Diet effectiveness at 2 years 1:3000 • Lifestyle changes • Drs v PLCs • Disarming the PLCs • Dr awareness of technical sophistication of the PLCs