CAN SCIENCE FORESEE THE FUTURE OF A PRODUCT; THE ADVANTAGES AND DISADVANTAGES OF NEUROMARKETING

Sharon Sue Ann Netty

Center for Southern New Hampshire University (SNHU) Programs

HELP College of Arts and Technology

Kuala Lumpur, Malaysia

Email: sharonann94@gmail.com

Rashad Yazdanifard

Center for Southern New Hampshire University (SNHU) Programs

HELP College of Arts and Technology

Kuala Lumpur, Malaysia

Email: rashadyazdanifard@yahoo.com

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ABSTRACT

Neuromarketing is gradually expanding throughout the marketing industry during the contemporary era and it has many benefits and limitations of its own. In this essay, the advantages and disadvantages of the neuromarketing field are uncovered and discussed. It was concluded that neuromarketing has its fair share of benefits and limitations altogether.

Keywords: neuromarketing, advantages, disadvantages

1. Introduction

In the marketing world, many businesses are competing with one another to gain lots of consumers. A company will have to put in tremendous amount of effort to know the finest way there is to sell and advertise their product to the consumers. If only there was an easier way to do it? Well, there is and it is called neuromarketing. According to Lee et al. (2007) which was cited in “Evolutionary Neuromarketing: Darwinizing the Neuroimaging Paradigm for Consumer Behaviour”, [Garcia & Saad, 2008, p. 404] “neuromarketing as a field of study can simply be defined as the application of neuroscientific methods to analyse and understand human behaviour in relation to markets and marketing exchanges”. It is clear that neuromarketing is the future and all of us will have to adapt to it no matter how much we may feel uncomfortable with it. Neuromarketing is very important because as quoted by Mindlab cited in the journal, “The Marketing of Neuromarketing: Brand Differentiation Strategies Employed by Prominent Neuromarketing Firms to Attract Media Clients”, [McDowell & Dick, 2013, p. 31] “Neuromarketing measures below the surface, like the iceberg below waters. We only use about 20% to 30% of our brain and that’s why neuromarketing; with its cutting edge technology will help companies to know their consumers with a deeper understanding. Hence, this will ensure a better way to sell and advertise a certain product.

Indeed now neuromarketing is burgeoning slowly. In fact, the word ‘neuromarketing’ was just a few hits on Google in 2002 but it increased rapidly with thousands of hits in 2010 (Morin, 2011). Many researchers have found out that neuromarketing have a fair amount of advantages and disadvantages. Although neuromarketing helps marketing researchers to find out different kinds of technique to bring in more consumers; but it comes with risks and misconceptions (Green & Holbert, 2012).

2. Both parties gain benefits

The most important advantage that neuromarketing can give to the marketing sector is that it is a tool to help companies distinguish the consumer’s desires, wants and needs and most prominently to find out what they will really buy (Marcel, Lăcrămioara, Ioana & Maria, 2009; Ariely & Berns, 2010). According to Fugate (2008) as cited in “The Contributions of Neuromarketing in Marketing Research”, [Hammou, Galib & Melloul, 2013] neuromarketing helps companies understand the consumer’s buying decisions by looking into their cognitive processes. There are many experiments done to be used as evidence that neuromarketing does contribute to know what consumers require. One of the experiment done and written in the journal “Using Neuromarketing to Discover How We Really Feel About Apps” ensured that users of apps favours a more simpler and convenient app with a lot of visual imagery (Adhami, 2013). Even Microsoft came to neuromarketing to measure how effective certain of their promotions on the Xbox platform are (Greenfieid, 2011). As cited in “Case Study: How

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Microsoft has Tracked Brain Activity”, [Greenfieid, 2011] Ginny Musante, director of marketing at Microsoft's Xbox Live advertising business said that, “We knew intuitively from our own behaviour that when we are on a gaming console we are highly engaged, but the research on their effectiveness also showed us an incredible lift in the traditional brand metrics - favouribility, awareness, memorability - on Xbox” (p. 18). These researches done now can tell us that neuromarketing can let a marketer know what product or campaign ad can trigger the brain of a consumer (Andrejevic, 2012).

Neuromarketing opens doors for companies to boost the quality of the product and to come out with easier methods of user experiences (Adhami, 2013). Through fMRI-scanning, marketers can narrow down the other possibilities and they can zoom into the ones that the consumer desires (Eser, Isin & Tolon, 2011). Companies will be better equipped through neuromarketing and they can choose the products labelled as winners without any clutters (Eser, Isin & Tolon, 2011). By using this technology, companies are motivated to take more jeopardy to engage more boldly with their consumers and hence this in turn will captivate their consumers (Green & Holbert, 2012).

3. Subconsciously accurate

According to NeuroFocus (2011) as cited in “Brain Whisperers: Cutting through the Clutter with Neuromarketing” [Andrejevic, 2012] with neuromarketing, marketers now can dig deeper into the brain and know how the brain of a consumer really respond to a certain product or advertisement. The subconscious or the behaviour of the consumers can be predicted more efficiently because of the technology available (Page, 2012). As an example, facial coding can reveal the true emotion of how a consumer feels about a certain product when in surveys they are unwilling to tell because of their politeness (Page, 2012). PR Newswire (2009) as cited in “Brain Whisperers: Cutting through the Clutter with Neuromarketing” [Andrejevic, 2012] identified that a person’s brain actually changes the original material it recorded when asked a question but when looking into the subconscious part of the brain, the original information can be accessed. Therefore, neuromarketing is a tool that helps marketers and advertisers to tap into the wants, needs and desires of the consumers (Andrejevic, 2012). As explained by Burne (2003) and Shah (2005) cited in “Perceptions of Marketing Academics, Neurologists, and Marketing Professionals about Neuromarketing” [Eser, Isin & Tolon, 2011] neuromarketing depends largely on images of the brain activity during vital moments of retail selections. A retailer will know which product or advertising technique with just a light up in certain areas of the brain (Eser, Isin & Tolon, 2011). Unlike traditional techniques such as surveys, modern technologies such as fMRI monitors what consumers really think about a product and how their decision-making processes are (Stoll, Baecke & Kenning, 2008).

In a nutshell, neuromarketing provides information of a product at subconscious level of a consumer than the traditional technique. As observed by Martin Lindstrom, the author of Buyology (2010) as cited in “Brain Whisperers: Cutting through the Clutter with Neuromarketing” [Andrejevic, 2012] ‘Consumers will never, ever tell the truth ... It’s not because they’re lying – because they’re not – they’re just unaware’ (pg. 199). Now, retailers can straight away see to the fundamental facts revealed by the brain thanks to neuromarketing (Andrejevic, 2012).

4. Improve advertising

The field of neuromarketing has made advertising more interesting and efficient. Many studies had been done via neuromarketing to ensure that the advertising of the product is at its peak. Christophe Morin, co-author of “Neuromarketing: Understanding the “Buy Button” in Your” as cited in “The Contributions of Neuromarketing in Marketing” [Hammou, 2013] told that neuromarketing allows companies to improve their marketing schemes and that is including the advertising sector. For example, recently an fMRI study has helped a company to increase their sales (Javor, Koller, Lee, Chamberlain & Ransmayr, 2013). The fMRI study showed that celebrity endorser has a huge influence on the product’s preferences (Javor, Koller, Lee, Chamberlain & Ransmayr, 2013). In another study, a company found out something that can was very useful to enhance their advertising strategies (Pilelienė, 2012). The study found out that the left hemisphere activates before the right hemisphere of the brain (Pilelienė, 2012). Hence, the price of the product has to be emphasized before the creative features of the product (Pilelienė, 2012). This is because price is associated with the left hemisphere while the creative components are associated with the right hemisphere (Pilelienė, 2012). Apart from that, in another study Lindstrom (2008) as cited in “The Contributions of Neuromarketing in Marketing Research” [Hammou, 2013] has discovered via neuroscientific methods that hearing and smelling is more powerful than seeing. Therefore, the advertising strategies can be altered to those findings. All these studies related to neuromarketing have

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helped researchers gain more information about the reward system of the brain (Javor, Koller, Lee, Chamberlain & Ransmayr, 2013. Thus, by understanding more about the reward system, advertising can be much easier.

Let us not forget that many advertising messages are not only commercial but they are a part of campaigns too (Morin, 2011). Therefore, by understanding the consumers’ brain, many advocates can transform their self-destructive conduct (Morin, 2011).

5. Apparent issues

Neuromarketing has many obvious issues that need to be solved before going on to the next stage. First, according to the Advertising Research Foundation (ARF) as cited in the journal “The Marketing of Neuromarketing: Brand Differentiation Strategies Employed by Prominent” [McDowell & Dick, 2013] more amount of transparency is needed in the neuromarketing field. Cited in another journal “Defining Neuromarketing: Practices and Professional Challenges” [Fisher, Chin & Klitzman, 2010] Emory University also criticised that there is very limited transparency given to the consumers in the neuromarketing industry. Apart from that, studies regarding the marketing activity cannot be done on children and minorities as well as ill and disabled folks because many authorities have argued that they need special protection against neuromarketing (Javor, Koller, Lee, Chamberlain & Ransmayr, 2013). Therefore, some products that are associated with these individuals will have a lower percentage of sales increment in the future. Furthermore, brain activity is very different when one is in a lab than when one is in a mall (NeuroFocus. Inc, 2010). There will be limitations on the accuracy of the data taken from the artificial environment in the real world (Barkin, 2013). Neuromarketing has some serious issues with its validity which can cause the the risk of the public’s trust of science itself (Arussy, 2009; Murphy, Illes & Reiner, 2008). Moreover, through the field of neuromarketing, excessive reductionism will occur (McDowell & Dick, 2013). This means that neuromarketing only can occur when the world’s complexity is decomposed into smaller and simpler portions (McDowell & Dick, 2013). Additionally, most of the studies done in the neuromarketing field are purely correlational (Andrejevic, 2012). For instance, consumers or researchers cannot tell why the brain’s pleasure centre is ‘tickled’ when the consumers see a juicy hamburger in a printed advertisement (Garcia & Saad, 2008). Hence, even though the data collected by the neuroscientist are reliable, they still do not know why the particular area of the brain is lightened up (Green & Holbert, 2012). Other than that, in terms of attracting consumers in a long-term perspective, neuromarketing does not offer the best results (Green & Holbert, 2012).

The cost of neuromarketing is very high (Eser, Isin & Tolon, 2011; Fisher, Chin & Klitzman, 2010; NeuroFocus. Inc, 2010; Ariely & Berns, 2010). The machines used in the neuromarketing field can cost up to $ 1 million per hour (Barkin, 2013). Neuromarketing is also very harmful in many ways. Neuromarketing can be considered as socially harmful because it may increase the sales of certain bad products such as junk food (Fisher, Chin & Klitzman, 2010). Lastly, neuromarketing in the business-to-business sector can be limited because of lesser emotions during the buying decision making process (NeuroFocus. Inc, 2010).

6. Ethical issues

Recently, Lee and others (2007) cited in “Perceptions of Marketing Academics, Neurologists, and Marketing Professionals about Neuromarketing” [Eser, Isin & Tolon, 2008] has proclaimed that the ethical issues of neuromarketing are strongly being questioned by neuroscience literature. This is because of what neuromarketing is doing, that is to know the inner working of the brain (Eser et al., 2008). The privacy of individuals who partake in neuromarketing studies in the United States are highly compromised (Murphy, llles & Reiner, 2008). Another ethical issue found in the neuromarketing sector is that information gained from the studies done may be used to discriminate other individuals (Ariely & Berns, 2010). Researchers may use these findings to exploit the flaws found only in certain individuals (Ariely & Berns, 2010). Furthermore, studies in the neuromarketing sector can be taken from a small group and used to generalize the whole population (Ariely & Berns, 2010). The lack of regulation during the neuromarketing studies is another explicit ethical issue (Ariely & Berns, 2010). Finally, companies may use neuromarketing for their own beneficial gain (Ariely & Berns, 2010). They may not be predominantly concerned about the consumers’ wants and needs (Ariely & Berns, 2010).

7. Still in its infancy

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Although the neuromarketing industry has a lot of benefits, it is still in its infancy and it is not even 10 years old (Garcia & Saad, 2008; Barkin, 2013). Some journals even claimed that neuromarketing is only in its embryonic stage (Morin, 2011). Given that neuromarketing is still young, Lee, Senior and others (2007) as cited in the journal “Evolutionary Neuromarketing: Darwinizing the Neuroimaging Paradigm for Consumer Behavior” [Garcia & Saad, 2008] the theoretical framework is still being developed. Therefore, research agenda only got a minimum theoretical paradigm to choose from (Garcia & Saad, 2008). There are even few experiments and case studies to identify with (marketing magazine.co, 2011). The experiments are mostly contained in the private sector (Fisher, Chin & Klitzman, 2010). According to Dr AK Pradeep, one of the world's leading neuromarketing experts as cited in “Marketing On” [marketing magazine.co, 2011], companies may not want to give up information to their rivals and that is why their studies have not been published.

To sum it up, neuromarketing has many years to develop a strong theoretical background so that things will not get problematical (Wiley, 2008). Research is necessary to understand how the brain really works and to build a strong theoretical foundation in neuromarketing (Wiley, 2008; Kenning, 2008).

8. Discussion

The field of neuromarketing is the future of the marketing industry. Hence, researchers should come out with specific solution to solve these drawbacks that the neuromarketing industry suffers from. Although neuromarketing rewards marketers and consumers with many advantages, its limitations will eventually stop it from mushrooming throughout the world. First and foremost, neuromarketing is a field that benefits both the company and the consumer. Through neuromarketing, companies can know what the best product to sell is and also how to advertise their product in order to attract all kinds of customers. On the other hand, the consumers can receive the best quality of a product as much as possible. This is because the company can track the customer’s brain and look into its subconscious via the tool of neuromarketing. Neuromarketing is still in its infancy therefore; researchers of this field can tackle many problems regarding neuromarketing. In other words, there is still room for improvement for neuromarketing in years to come.

Major issues such as ethical issues should be solved eventually. The studies done in the neuromarketing industry must be more transparent. Researchers should think about where they should do their studies in the future because artificial testing environment (e.g. the lab) is much more different than the real world. Researchers also should make the equipment for neuromarketing more user-friendly. Government should tighten up the rules and regulation of any research done in the neuromarketing field (Hammou, Galib & Melloul, 2013).

Even though neuromarketing has a list of obvious disadvantages, there are other issues created by other parties that are untrue. First untrue issue is that through neuromarketing, researchers can find the ‘buy button in the brain’ (Wiley, 2008). The meaning of that phrase is that there are efforts to trace a region in the human brain that would trigger during subsequent consumer behaviour while the consumer is unconscious (Wiley, 2008). Currently, there is evidence that proclaim that buying choices are multi factorial (Ariely & Berns, 2010). Another untrue issue is that neuromarketing is a form of ‘mind reading’ that can influence a consumer to purchase a product (Javor, Koller, Lee, Chamberlain & Ransmayr, 2013). It is said that this is not possible today and can never be possible in time to come (Wiley, 2008).

To summaries, neuromarketing is a tool to that benefits different party in many ways. Without its flaws, it can definitely help everyone in the future being. Everyone should read up about neuromarketing in order to know that some issues regarding neuromarketing are unquestionably fictional.

9. Conclusion

Neuromarketing is the future of marketing. With its many advantages, companies will find it easier to sell and advertise their product. In other words, neuromarketing can eventually foresee the future of a product. Neuromarketing is still a very young sector therefore all its limitations can still be solved in the coming years. Companies should contribute all their researches done in the neuromarketing field. By this, all the issues can be solved easier. Apart from that, these studies are very important to help as a basis of further research. The government should look into neuromarketing to increase their exportation of goods to other countries in order to increase their economy. Campaigners should use neuromarketing to enhance the message they are trying to send. Some companies should be cautious when they look

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into the neuromarketing field to sell their products. These companies are the ones that sell products that are harmful to the world (e.g. cigarettes and junk food).

All in all, when used wisely, neuromarketing can benefit many individuals in many ways. The incorrect part of the neuromarketing sector should be abolished from our thoughts in order to let neuromarketing mature throughout the whole world.

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