subconsciously
Transcription
subconsciously
Subconscious Decisions at the Shelf Andrew Polhmann A.K Pradeep 1. Nielsen Global and LatAm Shopper Trends 2. The Case for Neuromarketing 3. Applying Neuroscience to Shopper Marketing 4. Getting to ROI 5. Neurological Best Practices The Consumer of The Future LatAm The Latin America Consumer Trends Low Income consumer Eco-Friendly and Healthier products Aging and urbanization Women on the spot LatAm still has a gap compared to the other markets for income concentration Gini Index = 0 means no income concentration Gini Index = 1 total income concentration Source: UNO – IBGE • 20% of the LatAm* richest people concentrate 57% of the income • 20% of the poorest represent only 4% of the income Source: CEPAL *LatAm considering 9 countries: Brazil, DR, Chile, Argentina, Honduras, Ecuador, Panama, Mexico and Costa Rica 2010 Low Income consumer Aging and urbanization World Population Aging % above 60 years old World Population above 60 years old Source: World Population Ageing – 1950-2050 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 1970 The age pyramid in LatAm in the future will look more like the profile in developed countries 2000 2020 80 + 70-74 60-64 50-54 40-44 30-34 20-24 10-14 0-4 0 5 10 15 Million people Life Expectancy Birth Rate 5,0 72 76 61 2,5 2,0 LatAm 1970 Population Review 2008 1970/ ECLAC Source: ONU 2000 2020 Developed: 79 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 2000 2020 Developed: 1,7 20 25 30 Aging and urbanization Low Income consumer Eco-Friendly and Healthier products 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Eco-Friendly - Sustainability Sustainable Products Competitive differential : Communicate, communicate, communicate!!! Point of purchase and packages!!!! Source: Forum on Sustainable Retail and Consumption - FGV 2009 How consumers perceive Retailers about Sustainability… Perceive the retail as a great influencer of behaviors, Confidence in the retail as a promoter of sustainability, once the daily interaction with their clients is very strong Expect the retail to take social environmental aspects into account when selecting their product assortment Believe the sustainable practices in the retail must be continual, not sporadic actions See the communication of sustainable initiatives in the retail positively, as a means to disseminate the example Source: Forum on Sustainable Retail and Consumption FGV 2009 (Brazil) Prize companies that pioneer the adoption of sustainable practices Low Income consumer Eco-Friendly and Healthier products Aging and urbanization Women on the spot The women’s participation in the countries economy has been increasing % Females in the Economically Active Population % Householder 2000 2002 2008 2009 Source: ECLAC And they are making an important contribution to Household 74 income. Only 67 100% on around 20% of woman depend 62 their husbands. 54 % Woman contributing to HH income % of the total household's income generated by Women 79% 84% 43% 46% 1MEX Source: Nielsen women Of Tomorrow Study 2011 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 2BRA 3EMER 5 4D Women in Mex and Brazil expect to increase their contribution to HH income in the next 5 years Positive perspective in Emerging countries and the opposite in Develop ones.. Expect increase in their contribution to HH income in the next 5 yrs 74 67 br a br a br a 62 54 64% 63% 62% br a br a 53 55 53% 52% 63% Expect no change in their contribution to HH income in the next 5 yrs 1 MEX 2 BRA 3 EMER 4 DEV 5 USA 6 FRANCE Source: Nielsen women Of Tomorrow Study 2011 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. The Case for Neuromarketing 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Subconscious processing and the consumer experience Our brains process 11,000,000 bits of sensory information every second. But our conscious minds can only handle about 40 bits per second. That’s a selection ratio of 0.000004%. What happens to the other 10,999,960 bits of information? Consumer brains process them subconsciously. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Are you measuring them? Breakthroughs in neuroscience “We have learned more about the brain in the past five years than during all of human history combined.” Eric Kandel, M.D. Nobel Laureate in Medicine NeuroFocus Advisory Board Member Interview with Charlie Rose, 2009 View the Charlie Rose Brain Series at http://www.charlierose.com/view/collection/10702 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Why Now? Three trends converging Accelerating breakthroughs in neuroscience Increasing power of computing technology Evolution of traditional research Neuromarketing Revolution 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Technology evolution BRAIN ACTIVITY MEASUREMENT 2000s 1990s BIOMETRIC MEASUREMENT Dense Array fMRI 1970s - 80s MEG (Magnetoencephalography) Pupil Dilation, Galvanic Skin Response, Eye Tracking 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Electrode Cap Traditional approaches have left marketers demanding more from research Marketers still complain … “Half of my marketing budget is wasted, I just don’t know which half.” Product developers still lament … “80% of new products fail at the shelf.” 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Exponential growth in computing technology Breakthrough methodologies in neuroscience are only possible due to parallel advances in computing capacity, software tools and algorithms • Dense array EEG • Millisecond timing analysis • Millimeter source localization • Advanced signal-processing and pattern-recognition algorithms 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. IT’S A JUNGLE IN THERE... HOW DOES A SHOPPER DECIDE? Duke/Stanford Study Subconscious impact on purchase behavior Duke/Stanford Study: Can nonconscious activation of a goal influence buying selection behavior at a later point in time? Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,” Journal of Consumer Research 35, no. 2 (8, 2008): 189-201. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Duke/Stanford Study Nonconscious goal activation A psychology experiment at Duke University “Scrambled sentence” task primes prestige or thrift goals Distracter task, then choose either a premium or value brand of socks Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,” Journal of Consumer Research 35, no. 2 (8, 2008): 189-201. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Does priming affect choice of socks? Duke/Stanford Study You notice that it is time to throw away your cotton crew socks and buy new ones. CONSIDER THESE TWO OPTIONS: Nike at $5.25 for 1 pair Hanes at $6.00 for 2 pairs Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,” Journal of Consumer Research 35, no. 2 (8, 2008): 189-201. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Duke/Stanford Study Impact on Consumer Choice PERCENTAGE CHOOSING THE HIGHER-PRICED NIKE SOCKS 100% 80% 60% 48,0% 40% 19,2% 20% “… none of the respondents correctly guessed the general purpose of the study or believed that incidental exposure to words might have altered their choice.” 0% Prestige prime Thrift prime Tanya L. Chartrand et al., “Nonconscious Goals and Consumer Choice,” Journal of Consumer Research 35, no. 2 (8, 2008): 189-201. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Five “neuro-lessons” for marketing 1. Most processing in the human brain occurs subconsciously –below the level of conscious awareness. 2. Most of this subconscious processing is emotional, not logical. 3. Subconscious processes have a significant effect on shoppers’ attitudes, decisions, and behaviors. 4. Subconscious processes do not control us, but conscious deliberation in consumer decision-making is the exception, not the rule. 5. Your consumers cannot tell you about these influences, because they are not aware of them. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Applying Neuroscience to Shopper Marketing What we do How we do it What we measure 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. up to 64 sensors collect data 2,000 times every second fully capture activity across all brain regions eye-tracking and pupillometry pinpoint hot zones neuroscience applied to marketing high resolution EEGmeasures brain response 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. World’s First Wireless Full-Brain EEG Measurement Headset: Mynd™ 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. ATTENTION measures sustained focus and shifts in focus over time three metrics measured directly at the brain EMOTION measures intensity of emotional engagement and automatic motivational classification of stimuli MEMORY measures formation and strengthening of connections in long-term memory 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. PERSUASION/PURCHASE INTENT indicates a likelihood of attitude or behavior change market performance indicators NOVELTY indicates something is new and worth remembering 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. AWARENESS indicates something is understandable and comprehensible Deep Subconscious Response Exciting Entertaining Teamwork EXPOSURE TO STIMULI BASELINE BRAINWAVE MEASUREMENT OF MESSAGE ATTRIBUTES OR BRANDS Exciting Entertaining Teamwork P-300 RESONANCE CONFIRMS MESSAGE OR BRAND ASSOCIATION 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Full spectrum of applications BRAND Testing brands across seven dimensions of NeuroFocus’ Brand Essence Framework. PRODUCT An individual’s sensory responses to a product. Evaluation of new product concept and messaging to refine innovation cycle. PACKAGING Package design and performance. Analysis of neurological responses to graphics, design elements, and messages. ADVERTISING Consumers’ subconscious responses to advertising and other messaging, from development to execution and media placement. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. IN-STORE In-store displays, merchandising, and layouts. Proprietary tools: o Mobile EEG testing o N-Matrix 3D Virtual Reality™ testing 7 Dimensions of the Shopper Experience INFORMATION INTERACTION COMMUNITY SHOPPER EXPERIENCE ENTERTAINMENT SELF WORTH SIMPLICITY 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. EDUCATION Three methodologies to measure in-store marketing effectiveness 1. MOBILE AMBULATORY TESTING Test every aspect of a natural shopping experience, live and in real-time 2. VIDEO REALISTIC TESTING (VRT) More control, faster turnaround time in study process 3. 3D VIRTUAL REALITY (N-MATRIX 3D™) Change features & products digitally, test numerous features at lower cost than setting up mock store environments 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Mobile Ambulatory Testing The most “natural” approach to in-store testing • In-store testing enables brainwave and eye-tracking measurements in the retail setting • Study every aspect of the retail environment – brands – competitive products – shelf and free-standing displays – product demos – promotions – videos, signage – aisle layout and navigation 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Video Realistic Testing (VRT) More control, faster turnaround time • VRT neuro-testing is a powerful, comprehensive, accurate, reliable, flexible, and actionable research methodology • Maintains variables and prevents “noise” from corrupting results; improves ability to isolate impacts on behavior • Provides flexibility and speed in the study process (ability to change products, displays, pricing, etc.) • Realistic settings include other shoppers (unlike virtual reality) 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 3D Virtual Reality (N-Matrix 3D™) testing Best for combining control and natural shopping experience • Fully immersive shopping environments • Ability to rapidly configure “skins” to simulate any store design • Hundreds of products fully rendered in high-resolution 3D • Realistic physics • Ability to navigate, manually select, and manipulate in virtual space • Fully integrated with neurometrics data collection and eye-tracking 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Getting to ROI 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Benefits of neurotesting 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Which cover would you pick off the news stand? 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Neuro-selected magazine cover exceeded performance expectations • Second highest selling issue of the year • Especially unusual for the normally quiet month of August Graham Lawton, New Scientist Deputy Editor: “… neurologically speaking, there was a clear winner which stood out noticeably from the other two possible covers. “ 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. • 12 per cent increase over the same issue in the previous year • “we would certainly say the experiment was a big success." Neurodesign to improve shelf performance BEFORE AFTER 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Brain insights drove new design Clear bottle – beer is visible Silver foil used only around edges Lime flavor showcased Harmonious choice of fonts (two fonts vs. three) Uniform image behind text Name visible on back of bottle 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Immediate marketplace traction Lift from introduction of neuro-designed bottle 0,0 -0,1 -0,2 -0,3 -0,4 -0,5 -0,6 New bottle introduction -0,7 Share Point change Volume % change 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Neuro-designed aisle makeover Rounded end-caps and category-separation in aisle 7% increase in target product sales 3% increase in aisle sales 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Marketplace Validation Groundbreaking Study of In-Market Effectiveness and Pre-Test Effectiveness Correlation between the in-market effectiveness and NeuroFocus Measures is 85%. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Neurological Best Practices to use on Tuesday! 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Place images on the left, text on the right 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Minimize visual clusters BEST PRACTICES No visual anchors – that’s why finding Waldo is not easy 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Use unique fonts and font treatments But make sure they can be easily decoded or the effect will backfire Grabs attention but can you read it? 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Lead with emotion Emotion is a critical component of persuasion 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Motion, novelty, error, ambiguity Four ways to attract attention PRACTICES ERROR MOTION 1 AMBIGUITY NOVELTY 3 2 BEST 4 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Sustain attention with simple puzzles and surprises 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Iconic signatures of your brand BEST PRACTICES 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Use as many senses as possible in presenting your product 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Embed the product So the story can’t be remembered without it 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Emphasize your product’s links to the natural world 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Making the environment help drive purchases BEST PRACTICES Avoid sharp edges and interruptions in aisle and display designs. In nature, sharp edges are dangerous. They prompt an avoidance response in the brain. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Integrating sensory experiences BEST PRACTICES Multi-sensory experiences stimulate many regions of the brain and greatly enhance the shopping experience. Look beyond the usual visual elements to consider the impact of touch, taste, smell and sound. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Neurological Best Practices Leveraging gender differences 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. The Male Brain 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Suspicions Confirmed Men and women are different biologically, psychologically, and socially. 65 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Compared to the female brain, the male brain has… A Medial Preoptic Area (MPOA) that is 2.5 times larger. This is the area for sexual pursuit. Sexual pursuit is top-of-mind for most men A more active Temporal Parietal Junction (TPJ), the “cognitive empathy” brain hub. Men often respond to emotional issues with logic. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 66 Compared to the female brain, the male brain has… A larger Dorsal Premammillary Nucleus (DPN), contains the circuitry for territorial defense, fear, and aggression. Men are programmed to detect and defend against threats. A larger amygdala, the center for detecting threats, fear, and danger. Men are primed to react fiercely to threats and fears. 67 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Compared to the female brain, the male brain has… A smaller Mirror Neuron System (MNS), the system for empathy and feeling what another person feels. A smaller Anterior Cingulate Cortex (ACC): the seat for worry, self-consciousness, ruminating. The male brain doesn’t “fret” as much or as often as the female brain 11% fewer neurons in the language centers of the brain Men talk less and have slightly smaller vocabularies than women. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 68 Compared to the female brain, the male brain has… A smaller Prefrontal Cortex: the center responsible for making judgments and suppressing impulses. Men are more reactive, impulsive than women A smaller hippocampus, the center for memory storage Men don’t remember details of events as well as women do. A smaller corpus callosum, the nerve fibers that connect the two brain hemispheres Men don’t multi-task – or recover from strokes -as well as women do. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 69 Focused Shopping Men tend to hone in more quickly than women on what they're looking for. Men are not browsers. Men shop for what they need "now." Women can shop for something and put it away for "later." 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 70 Brand choices Men are more likely than women to prefer and buy brand name products 71 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Women Shop; Men Buy Men are goaloriented shoppers. They shop to “win” or to complete a set goal 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 72 Get in/Get Out: Men on a Mission Men spend less time browsing, and ask fewer questions when they are in-store than women do 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 73 Men are impulsive shoppers Keep your message short and focused 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES Men respond to messages showing advancement and success BEST PRACTICES Tagline: “become the king of bluff” 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Men are attracted to spatial imagery 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. BEST PRACTICES 76 BEST Sex sells PRACTICES Sexual imagery may be effective, so long as it’s appropriate for your product 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 77 Straight-talk messaging BEST PRACTICES Get to the point quickly, clearly, and directly Use active, declarative statements 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 78 THE MOMMY BRAIN 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 79 The Most Evolved Brain on the Planet Birth and caring for infants “literally reshape the brain [into] a more complex organ that can accommodate an increasingly demanding environment. “ Craig Kinsley, neuroscientist and author 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 80 Mommies are Better Shoppers Moms use more areas of their brains at once New connections between the right and left hemispheres allow Mommy’s brains to be more efficient in relaying information, gathering, synthesizing, and integrating new messages New moms improve basic memory and learning skills, key strengths for multi-taskers, particularly when it comes to shopping like activities Why? Anything that brings her back to her children quickly is an evolutionary advantage 81 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Enhanced Senses BEST PRACTICES Consider scent marketing for products and stores. Be vigilant about the condition of stores/displays. The Mommy Brain notices everything. Avoid sharp corners in the aisles. They create an avoidance response, particularly among women with young children. Engage as many senses as possible when marketing to mommies 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 82 Larger Mirror Neuron System (MNS) BEST PRACTICES Show people she can identify with doing things she’d like to do. Show others actively and obviously enjoying your product. Show realistic depictions of Mom and her family. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 83 Sense of Community BEST PRACTICES Present messages of opportunities to connect with others, especially her family. Be authentic. Images and pictures that show family and community are highly appealing to mothers. Show that you value community too—especially her community. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 84 Women are attracted to images BEST of women in groups PRACTICES especially when enjoying a shared activity 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Women engage faster with faces and respond to direct eye contact BEST PRACTICES 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Women process language more BEST fluently than men PRACTICES so respond more readily to text-based ads 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. Increased Vigilance BEST PRACTICES Point out safety features in a positive light (don’t use scare tactics). Provide plenty of information to allow her to make an informed decision. Acknowledge her for her vigilance and show that you’re vigilant, too. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 88 Greater Efficiency BEST PRACTICES Make navigating your store, your site, and your message as efficient and easy as possible. Consider grouping items that are used together. Provide information clearly and concisely. Use language that she understands immediately. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 89 Multi-tasking BEST PRACTICES Show Moms multi-tasking and appreciate how well she does it. Provide tools (shopping lists, apps) to make her life easier. Use details to explain your product or service—she will be able to take these in. 2011 © NeuroFocus, Inc. All Rights Reserved. Confidential and Proprietary. 90 Altruism BEST PRACTICES Let Mommies know that you support a cause. Give her an opportunity to contribute, too. Caring and nurturing is one of her strongest values and she will be drawn to these themes and messages. 91 Product Failure Intolerance BEST PRACTICES Be vigilant about the condition of stores/displays. The Mommy Brain notices everything. Avoid sharp corners in the aisles. They create an avoidance response, particularly among women with young children. If your product or service has an issue, be honest and open about it. 92 The Brain Makes Behavior The subconscious level of the mind is where initial product interest, trial consideration, purchase intent, repeat purchase decisions, brand image, and brand loyalty are formed.