Motivation and emotion/Book/2024/Consumer neuroscience

Consumer neuroscience:
What is consumer neuroscience and how does it contribute to understanding consumer behaviour?

Overview

Scenario: Your favourite store

Imagine you are shopping at your favourite store. Perhaps this is a store you physically visit, where you peruse the aisles of products; or it could be an online store you can search through. What motivates you to put certain items in your basket or click on them? Has somebody you trust recommended the products to you, or did the colour or shape of the product make you want it?

People are talking more and more about the way influencers are promoting and advertising products on social media. Is there a chance that you yourself have purchased something just because your favourite youtuber used it, or it was on the Amazon storefront of your favourite TikToker?

You may already be aware these things influence you as you shop, and even scrutinise these influences intentionally to ensure you choose the best items to buy. But have you ever thought about the neurological structures involved in your decision making?

We have all experienced different emotions and motivations when purchasing a product. Whether you enjoy shopping or not, deciding which products we want to purchase; from food to clothing to leisure items, buying things is a key part of your life[grammar?]. While we can understand our own thoughts, there are unconscious processes that we are not always conscious of in the moment, making consumer behaviour hard to accurately study using questionnaires. A lot of these thoughts and their associated consumer behaviours can be understood through the lens of neuroscience. Understanding our own mind from a neurological perspective can help us to unpack how our thoughts come about and their commensurate purchasing decisions. Therefore, understanding the neurology of consumer decisions can help us understand what purchasing decisions might be the best for us personally, as well as allowing you to have a better understanding of the neurological process happening in your brain when engaging in consumer behaviour.

Focus questions

What is neuroscience and consumer behavior?
How is brain activity measured in consumer neuroscience?
What are the key neurological structures involved?
How do neurological structures relate to theories of consumer behaviour?
What are the limitations to applying consumer neuroscience?

What is consumer neuroscience?

Consumer neuroscience is the study of the impact of advertising material, product design, and brand image on neural activity. Neural activity is then related to the behaviour exhibited by consumers (Sánchez-Fernández et al., 2021). Consumer neuroscience is the intersection between economics, psychology, and neurology (Braeutigam & Kenning, 2022). This intersection allows for a new way of looking at and measuring consumer behavior.

In 2011, Daniel Kahneman proposed a two system decision making process. System one is fast: a quick and emotional system, and system two: a slow and rational system (Kahneman, 2011). In many ways this was the genesis of modern consumer neuroscience, as it provided a theoretical foundation for understanding the process consumers use to make decisions, and why those decisions are often irrational. Though that sounds odd, Kahneman's findings indicated we don't always think through our decisions properly, rather we act on easy emotional impulses. If our decision making process isn't a conscious and rational exercise, it must be subconscious in some way (Kahneman, 2011). When research is conducted on subconscious processes self report data becomes much less reliable, so the more empirical way to study the behaviour of the mind at the unconscious level is neuroscience. Hence, consumer neuroscience is born as an arms race to understand why people make the purchasing decisions they do, especially the irrational ones, emerges! Many types of machines and techniques were and still are used to understand the actions of consumers and relate it to their seemingly irrational and baseless consumer behaviours. The work of consumer neuroscience is mostly completed in labs due to the nature of the machinery used, however this does not mean it doesn't apply in a real world setting.

Measuring brain activity in consumer neuroscience

[Provide more detail]

Functional magnetic resonance imaging (fMRI)

fMRI technology measures the flow of blood and the concentration of blood carrying oxygen through the area which is desired to be measured. When literature about fMRI's talk about blood they used the term hemoglobin (Pirouz, 2004)[improve clarity]. When the blood, or hemoglobin is without oxygen it is referred to as deoxyhemoglobin, and when it is carrying oxygen it is referred to as oxyhemoglobin. Measuring the concentration of oxyhemoglobin, and deoxyhemoglobin, allows researchers to understand which areas of the brain are being used, because brain areas use more oxygen when they are woking[spelling?] harder (Logothetis, 2008). While it does allow for very specific imaging of the brain, fMRI machines are expensive, and if you have ever had an fMRI done, you know they can be loud, and due to the requirement to sit still for long periods of time it can be difficult to endure (Shechner et al., 2013).

Electroencephalography (EEG) figure 2

EEG machines are less invasive than fMRI machines. EEG's use electrodes to measure electrical activity, which are placed on the head over each brain region and allowing researchers to observe each brain region, specifically in the cortex, or the surface of the brain. The patterns that have been found in the electrical activity of the brain are referred to as brain waves. These brain waves have been extensively studied, so researchers are able to tell the function the brain is carrying out based on the observation of brain waves. For example, brain waves measured when a person is sleeping look different to brain waves observed when a person is experiencing hunger. While wearing an EEG machine is very noticeable the requirements to stay in a loud and small space for long periods of time are removed, and EEG machines are less expensive than fMRI machines. It is, however, less detailed and specific. EEG's measure broad electrical activity across the scalp, making discrete activity unable to be recorded.

Computerized tomography (CT OR CAT) figure 3

CT scans are a form of X-ray technology. The portion which takes the X-ray, which looks a bit like a donut, has a rotating X-ray tube inside it (Wellington & Vinegar, 1987). The X-rays measure differences in density and atomic composition which allows images to be taken. A CT scan is able to take many 2D images of your body, called slices which are put together to create a 3D image of the body part that has been scanned (Wellington & Vinegar, 1987). CT scans are used to look at the physiological structure of the brain, so aren't useful for observing brain activity.

Positron emission tomography (PET) figure 4

PET scans use nuclear imaging to trace the presence a particular radioactive glucose or sugar. Glucose is the main fuel of the brain (Harris et al., 2018). Essentially, the sugar is injected into the body via a vein in a very small amount, and the PET scanner is able to see which areas of the brain are using the glucose up. The scanner uses this information to create a 3D image of the area being scanned, in this case the brain. This change in metabolic process is what allows the researchers using the PET scanner to determine the most active areas of the brain. This is not always a preferred method due to the use of radioactive material. Even though it is small, researches may need to perform multiple scans, and radiation can build up over time (Harris et al., 2018).

Magnetoencephalography (MEG) figure 5

MEG works in a similar way to EEG in that it measures electrical activity of the brain, however MEG machines are able to measure brain waves more accurately and in greater detail (Harris et al., 2018). MEG measures the magnetic fields created by the electrical activity of the brain. MEG does have more specificity than an EEG machine, but much less so than an fMRI machine.

Key limitations of neural-imaging technologies

it is essential to remember that these machines are not able to be used in a natural setting where participants are simply engaging in every day activities. The laboratory setting is a highly controlled environment, so while this research is highly empirical there is still not a machine that is able to analyse consumer behaviour for people going about their regular purchasing activities.

Key neurological structures and pathways

So we know the tools we use to see what is happening in the brain. Now we can discuss the areas of the brain that are active during consumer behaviour, and what behaviours those areas have been linked to.

Navigating the brain

When neurologists refer to areas of the brain there is some key terminology that is important to understand in order to navigate the areas of the brain. Anterior: the front of the brain, towards the eyes. Posterior: the back of the brain, towards the back of the head. Dorsal: towards the top of the head. Ventral: towards the neck. Medial: towards the centre of the brain. Lateral: towards the sides of the brain. Inferior: above. Superior: below.

Reward approach: Meso-Limbic pathway

One of the key pathways involved in consumer behaviour is the Meso-Limbic pathway. This pathway is a neurological network that is comprised of several brain structures. The core function of this network is to produce feelings of desire, and feelings of reward when those desires are fulfilled. Reward and desire are innately interconnected, as desire within the brain is the anticipation of reward. This means an individual cannot desire something without reward, and vice versa. The relationship between these functions and consumer behaviour is probably quite obvious: when we desire things we buy them. In many ways, advertising could be seen as making people anticipate rewards they previously weren't aware of, hijacking this neurological network to the seller's advantage.

Ventral Tegmental area

The Ventral Tegmental Area is the beginning of the meso-limbic pathway. Within this area there is an extremely high density of neurons: cells that make up your brain; which respond to dopamine. When dopamine is present in this area, the neurons within it produce a feeling of wellbeing within an individual (Javor et al., 2013; Karmarkar & Yoon, 2016).

Nucleus Accumbens

See figure 6 for location, at the top of the brainstem.

Activity in the nucleus accumbens tends to reflect how much a consumer is attracted to a product based on it's visual properties, instead of factual and semantic information (i.e., price and genuine personal value)(Javor et al., 2013). Preferences for different products within this brain region could be seen as a gut instinct feeling of interest based on colour, shape, or other psychologically salient visual stimuli. For example, if you saw a pink barbie in a yellow car, those shapes and colours would probably increase activation in your nucleus accumbens. However, the nucleus accumbens works as an integrated part of your brain, so pretty shapes and colours alone won't sell you on something, though they go a long way! Pretty shapes and colours are crucial because they draw our initial attention; without our initial attention, it's hard to sell us something (Javor et al., 2013; Karmarkar & Yoon, 2016).

Orbitofrontal cortex

Orbitofrontal means that it is located close to the eyes (orbito) and near the front (frontal) on the surface of the brain (cortex) The role of the orbitofronal[spelling?] cortex, as a part of our more developed and higher-order frontal lobe, is to balance the more instinctive signals received from structures like the nucleus accumbens with our learned experiences about a stimulus (Javor et al., 2013). For example, if you saw a pink barbie in a big yellow car, your nucleus accumbens might tell you that this is something you want, but you may personally have learnt that toys are no longer fun, so you ignore the pretty shapes and colours. This could be seen as the place in your brain where your instincts about something are checked by your learned experience; a tiger is made up of many pretty shapes and colours, but we learn quite quickly not to try and play with them!

Amygdala

The amygdala is the novelty detector of your brain. It plays an important role in helping you understand when something unfamiliar is helpful, dangerous, or neither (Javor et al., 2013). Because of this, it is often referred to as the fear centre of the brain, but this is a reductionistic view of it's plurality of functions. Concerning consumer behaviour, the amygdala helps us understand how much we trust something. An unfamiliar product we have never seen before is novel, so our amygdala activates, and it does the work on a primal level to help us understand if this is something to fear, love, or be apathetic towards (Javor et al., 2013).

Hippocampus

The hippocampus is key in remembering the reward patterns and turning them into learned behaviours (Javor et al., 2013; Karmarkar & Yoon, 2016). When you think your brain uses its short term memory to work through what is happening in the moment. The hippocampus is then responsible for converting short term memories into long term memory, which is how you store long-term memories. The hippocampus stores your preferences and learns what behaviours are the most rewarding. It is also used in the loss or pain avoidance system to remember what is disliked and should be avoided (Javor et al., 2013; Karmarkar & Yoon, 2016).

Loss/pain avoidance systems

Ventromedial Prefrontal Cortex

see figure 7 for location

The core function of the ventromedial cortex in consumer behaviour is the determination of the subjective utility of a product (Javor et al., 2013). Subjective utility can sound like an odd and overly technical term, but it can be understood as the value something holds to you as a whole person (Karmarkar & Yoon, 2016). This differs from the orbitofrontal cortex, as that is mainly focused on learnt factual information (i.e., will this kill me or feed me). The ventromedial cortex combines memory, social cues, personal beliefs, and context to form a picture of the value something holds to you personally. This probably differs from the value it holds to somebody else, making this processing distinct from the factual and objective processing of the orbitofrontal cortex (Javor et al., 2013; Karmarkar & Yoon, 2016).

Insula

The insula plays a crucial role in your interoceptive feelings about yourself and your body. In many ways, your "gut feelings" come together in the insula (Javor et al., 2013). High prices and the anticipation of loss all synthesise within the network of the insula, and it could be seen as one of the final milestones in the evaluation of trust. The insula works together with the amygdala to determine trust (Javor et al., 2013).

Affect-integration-motivation (AIM) framework

The AIM brings together all of this information about the function of different parts of the brain to conceptualise it's functioning as a whole network (Karmarkar & Yoon, 2016). The nucleus accumbens, amygdala, and insula provide us with initial "gut feelings" about a product, which are primitive and unrefined views. These views are then expanded on by the orbitofrontal and ventromedial prefrontal cortices to integrate what we know about a product and the personal subjective value of a product with the previously mentioned "gut feeling". This all synthesises to create a desire to buy or avoid the product. It's worth understanding that all of this brain activity happens extremely quickly, sometimes in as much time as it takes to glance at a toy (Karmarkar & Yoon, 2016).

Case study: Pepsi vrs Coke

Pepsi and Coke are ever competing rivals. Chances are you have seen the many advertisements from each brand conveying that they are the superior cola company. In an experiment conducted by McClure et al, participants were given both pepsi and coke to taste while in an fMRI machine. For one of the tests the participants were given Coke and Pepsi without being told which was which. For the second test the participants were told the brand of cola when they were given some to taste. For test one, the neurological response was based solely on the taste of the product, and so the brain region that responded was in the ventromedial prefrontal cortex. When the drinks were labeled there was also activation in the hippocampus and the dorsolateral prefrontal cortex.

Conclusion

Consumer neuroscience is the study of consumer behaviour with information from the fields of psychology, economics and neuroscience. By using a range of tools that allow researchers to view the functioning of the brain, typically by neuroscience we are able to explore current theories of consumer behaviour[grammar?]. Much of the current research is based on psychological theory[explain?]. This research allows us to understand elements of economics such as the purchasing behaviour of consumers. Using a range of tools with differing benefits and limitations we are able to better understand the fast system of thinking, the emotional and quick path of thinking used when consumers make purchasing decisions. This has allowed us to understand a wide variety of processes, and gain information about many brain regions to determine the function each area of the brain completes. It is important to remember that the technologies used to come to the conclusions in this chapter are not able to be used in a natural setting, and hopefully further developments are made in the technology available to make the research conducted more representative of everyday consumer behaviours.

References

Balconi, M., & Sansone, M. (2021). Neuroscience and Consumer Behavior: Where to Now? Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.705850

Braeutigam, S., & Kenning, P. (2022). An integrative guide to consumer neuroscience. Oxford University Press.

Harris, J. M., Ciorciari, J., & Gountas, J. (2018). Consumer neuroscience for marketing researchers. Journal of Consumer Behaviour, 17(3), 239–252. https://doi.org/10.1002/cb.1710

Javor, A., Koller, M., Lee, N., Chamberlain, L., & Ransmayr, G. (2013). Neuromarketing and consumer neuroscience: Contributions to neurology. BMC Neurology, 13(1), 13. https://doi.org/10.1186/1471-2377-13-13

Kahneman, D. (2011). Thinking, fast and slow. Farrar, Straus and Giroux.

Karmarkar, U. R., & Yoon, C. (2016). Consumer neuroscience: Advances in understanding consumer psychology. Current Opinion in Psychology, 10, 160–165. https://doi.org/10.1016/j.copsyc.2016.01.010

Logothetis, N. K. (2008). What we can do and what we cannot do with fMRI. Nature, 453(7197), 869–878. https://doi.org/10.1038/nature06976

McClure, S. M., Li, J., Tomlin, D., Cypert, K. S., Montague, L. M., & Montague, P. R. (2004). Neural Correlates of Behavioral Preference for Culturally Familiar Drinks. Neuron, 44(2), 379–387. https://doi.org/10.1016/j.neuron.2004.09.019

Pirouz, D. (2004). The Neuroscience of Consumer Decision-Making [MPRA Paper]. The Paul Merage School of Business, University of California Irvine. https://mpra.ub.uni-muenchen.de/2181/

Shechner, T., Wakschlag, N., Britton, J. C., Jarcho, J., Ernst, M., & Pine, D. S. (2013). Empirical Examination of the Potential Adverse Psychological Effects Associated with Pediatric fMRI Scanning. Journal of Child and Adolescent Psychopharmacology, 23(5), 357–362. https://doi.org/10.1089/cap.2012.0076

Stillman, P., Lee, H., Deng, X., Unnava, H. R., & Fujita, K. (2020). Examining consumers’ sensory experiences with color: A consumer neuroscience approach. Psychology & Marketing, 37(7), 995–1007. https://doi.org/10.1002/mar.21360

Wellington, S. L., & Vinegar, H. J. (1987). X-Ray Computerized Tomography. Journal of Petroleum Technology, 39(08), 885–898. https://doi.org/10.2118/16983-PA

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