page_title: Consumer behaviour
section_title: Consumer neuroscience
hierarchical_section_title: Consumer behaviour / Research methods used / Consumer neuroscience
caption_attribution_description: English: A NeuroCatch Platform™ by Health Tech Connex
context_page_description: Consumer behaviour is the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services, and how the consumer's emotions, attitudes and preferences affect buying behaviour. Consumer behaviour emerged in the 1940s and 50s as a distinct sub-discipline of marketing, but has become an inter-disciplinary social science that blends elements from psychology, sociology, social anthropology, anthropology, ethnography, marketing and economics.
  The study of consumer behaviour formally investigates individual qualities such as demographics, personality lifestyles, and behavioural variables, in an attempt to understand people's wants and consumption. Also investigated are the influences on the consumer, from groups such as family, friends, sports, and reference groups, to society in general, including brand-influencers and opinion leaders.
  Research has shown that consumer behaviour is difficult to predict, even for experts in the field; however, new research methods, such as ethnography and consumer neuroscience, are shedding new light on how consumers make decisions.
context_section_description: Consumer neuroscience (also known as neuromarketing) refers to the commercial use of neuroscience when applied to the investigation of marketing problems and consumer research. Some researchers have argued that the term consumer neuroscience is preferred over neuromarketing or other alternatives.
  Consumer neuroscience employs sophisticated bio-metric sensors, such as electroencephalography (EEG), functional magnetic resonance imaging (fMRI) and eye tracking, to study the ways that consumers respond to specific stimuli such as product displays, brands, packaging information or other marketing signals.  Such tests reveal stimuli that trigger the brain's pleasure centre.
  Consumer neuroscience has become a mainstream component of consumer research methods. International market research company, Nielsen Research, has recently added neuromarketing to its services by acquiring Innerscope, a company specialising in neuromarketing research thus enabling Nielsen to add neuromarketing research to the suite of services available to clients.
  Consumer neuroscience research has led to some surprising findings:
  Framing price or value
  For example, one study reported on a magazine subscription where potential subscribers were offered two options: an online subscription for $59, or a combined online and print for $129 a year.  Most people chose the online only option. However, when a third option was introduced: print only for $129 (i.e. the decoy), the online and print option seemed like better value and a significant number of people switched to that option. In other words, the decoy price assists in framing value. Marketers use a variety of methods to frame value: e.g. quote monthly payment options rather than a single all-inclusive price.
  Choice Fatigue
  Research by Sheena Iyengar experimented with the number of gourmet jams on display. When consumers were faced with a large number of alternatives (24 jams), 60% of consumers stopped and looked but only a few (3%) actually made a purchase. However, when consumers faced with fewer brands (6 jams), were more likely to make a purchase with 30% going on to buy something. Similar results have been observed in other categories. The findings suggest that while consumers appreciate being given some choice, the process of making a selection is painful and can lead to choice fatigue. An issue for marketers and retailers is to determine the ‘sweet spot’ where consumers are given sufficient choice to satisfy their desire for variety, but not become overwhelmed by it.
  Decision Paralysis
  One study examined the wording used to solicit philanthropic donations. Consumers were exposed to variants in the advertising copy execution: "Would you be willing to help by giving a donation?" and "Would you be willing to help by giving a donation? Every penny will help." Those given the second option were almost twice as likely to donate. The researchers concluded that people are more likely to take action when given parameters. By clarifying that “even a penny” could make a difference, the second line provides guidance and makes the request more achievable. For marketers, the implication is that when asking consumers to take an action, specifying a small step helps to break through the action paralysis. This finding also suggests that even small differences in advertising copy can lead to improved outcomes.
caption: Neuromarketing uses sophisticated biometric sensors such as EEG to study consumer responses to specific stimuli.
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