How far neuromarketing can go ethically - Literature review Example

?Introduction In earlier years, marketing was just considered as a tool to attract consumers by dressing up sales pitch but with the changes in time,consumers have started becoming internet maniacs. With consumers getting highly computer savvy day by day, advertisers are provided with several effective opportunities to reach the target audience. Cable televisions, the internet and Smartphone have enhanced the consumer’s knowledge and information regarding the brands available in the market (4imprint, 2010). Because of all these reasons, marketers have enhanced their presence through ads with an aim to capture the attention of the consumers in the marketplace. The key source to win such intensive battle i.e. capturing target audience’s attention was the use of highly targeted communication based on effective and thorough research along with the integration of science (4imprint, 2010). Traditionally, marketers and advertisers utilised focus groups and interviews to gain insights regarding the needs and wants of the consumers. With such techniques/tools, the marketers were able to read the mind of the consumers by gauging the responses which provided them with superiority in the marketplace. But with the changes in consumer-driven marketplace, organisations have started seeking out new methods and ways to gather consumer opinions and reactions regarding a particular brand in the marketplace (4imprint, 2010). With the improvements in technology, and with increasing research of the marketers, the result has been presented in the form of neuromarketing. Neuromarketing has been highly used and it has been estimated that the usage of neuromarketing will be increasing with the passage of time. It may sound futuristic, but with the advancement of technology in this new era, marketers have been provided with an opportunity to tap into the minds of the consumers. Not only this, these new technologies allow the marketers to scientifically understand the needs and desires of the consumers. With the integration of thorough research and science i.e. (technology), marketers and advertisers have gradually enhanced their ability to exactly pinpoint the reasons and causes due to which people tend to purchase a product. In addition, such technologies have uncovered the response of brain to various advertisement and marketing tactics (4imprint, 2010). Technology that organisations once fantasised is now a reality which has constantly helped the giant organisations like Campbell’s Soup and Pepsi to enhance their brand image along with the marketing of their products (4imprint, 2010). The concept of Neuromarketing came into existence almost a decade ago by an Atlanta Advertisement firm i.e. Bright house in June 2002, with a specific aim. The main aim of Neuromarketing was marketing research (Fisher et al., 2009). With the help of neuromarketing, the organisation was able to enhance its knowledge regarding the needs and desire of the customers along with the buying behavior of the consumers in the market. As Neuromarketing is a combination of neuroscience and marketing practices, it provides the organisation with perfect opportunity to understand, predict and eventually control human behavior. As indicated by Fisher et al. (2009) that the problem is based on the fact that such integration of sciences and research is quite unclear that is it only an academic field of research or business practices despite the advantages and benefits associated with neuromarketing through which organisations were able to predict human behavior and eventually consumer behavior. Similarly, Murphy et al. (2008) that several neuromarketing companies claim that with the help of neuromarketing, the organisations would be able to fully understand the buying behavior of consumers but on the other hand, very little academics and scientific approaches validate such claims. The question that has risen is whether such neuromarketing is another trick of marketers and advertisers to manipulate the demands of the products or it is just a practice to enhance the profits of the organisation. Neuromarketing Neuromarketing is one of the emerging concepts in the world of marketing. As this new way of marketing has allowed the managers and marketers to understand the needs and desires of the consumers due to which, they are provided with an opportunity to evolve their businesses around the globe along with their approaches to lure consumers so that they could purchase more of a product. With such significant approach, organisations have enhanced their ways to interact with the consumers which is one of the essential reasons due to which this particular approach has gathered alot of attention in the last decade. According to Fisher et al. (2009) that with the use of such tactic, organisations could gain information that might not be relevant to them due to which, different scientists have different views (i.e. positive and negative) regarding the use of such an approach. Thompson (2003) has defined the term neuromarketing as the application of methods that could significantly help to influence consumers in the market through advertisement. On the other hand, the International Journal of Psychophysiology defines neuromarketing as the application of neuro-scientific methods with an aim to understand how and why individual purchases a product i.e. human behavior in relation to marketing exchanges (Lee, Broderick and Chamberlain, 2007). Reid (2006), on the other hand, has indicated that the concept of neuromarketing is at its peak as more than 90 private consulting firms are based on such approach in United States. In addition, Ried (2006) has also indicated that the number of such organisations is constantly increasing in other countries as well. Furthermore, Dias (2006) has also identified that with the use of neuromarketing, the marketers are able to find the buy button in the brain which could eventually influence the consumers to purchase more of the products in the market. On the other hand, Brain Scam (2004) assumed that with the use of such approach, the population’s mind would be hacked and scammed to do what the marketer and advertiser wants the people to do rather than following personal desires. In addition, several advocates and critics have observed that there has been an increasing use of neuroscience in marketing. The advocates proposed that with the integration of neuroscience in marketing, both the consumers and the marketers would be perfectly understand what the consumer desires. Such an opportunity would benefit both the consumers and the marketers due to which such integration would be a win-win situation for both the parties (Erk, Martin, and Walter, 2005; Thompson, 2005). On the other hand, the critics proposed that with the use of such approach, the privacy of the consumers in terms of purchase decisions would be compromised (Herman, 2005; Huang, 1998; Lovel, 2003; Thompson, 2003). Exploring the Scope of Neuromarketing In the technologically advanced era, neuromarketing has become one of the marketing approaches which involve the application of neuro-imaging techniques to sell products in the market. The concept of such use of neuromarketing approach according to The Lancet is to attract the potential clients in the market with the use of advanced technology they cannot resist (Lee, Broderick, & Chamberlain, 2007). In addition, the success of neuromarketing has attracted several agencies to offer neuroimaging solutions to its customers with an aim to provide solutions to commercial marketing problems. Similarly, the rising use of neuromarketing to influence consumer behavior was the major reason to create considerable excitement within the marketing professions i.e. marketers and advertisers. (Mucha, 2005). To elaborate the scope of neuromarketing, the concept of neuroeconomics must first be taken into consideration. Neuro-economics as defined by Kenning and Plassmann (2005) suggest that neuro-economics is the art and science of neuroscietific methods which eventually help in analysing and understanding the economically relevant behavior of individuals. Similarly, Weinstein et al. (1984) that the advantages of such application of neuro-scientific methods have provided the marketing field with significant information for at least two decades. Moreover, Petty and Cacioppo (1983) have revealed that the self-assessment measures used in marketing research totally rely on the ability and willingness of the individual to report his/her past and present behavior along with attitude. Cacioppo and Petty (1985) have further indicated that physiological responses can be collected when an individual directly takes part in behaviors when provided with difficult situations to control. Even though, the responses of individual vary from person to person along with social situations and stimuli, such responses have powerful effect across individuals. Application of Neuromarketing Lee et al. (2006) have indicated that neuromarketing is closely associated and linked with neuroeconomics; a concept that resulted in the introduction of neuromarketing. The term neuroeconomics refers to the ability of the economists to relate different aspects of human behavior when taking an important decision that includes economy. The concept of neuromarketing and neuroeconomics is quite vague due to which Fisher et al. (2009) worked towards the elimination of such confusion (i.e. whether neuromarketing is different from neuroeconomics and to what extent). Neuromarketing as indicated earlier is a combination of neuroscience methods and marketing practices that focuses on the application of imaging technology to influence individuals in terms of emotions. In addition, the concept focuses on the recording of brain’s reaction when provided with different stimuli such as sound, taste, image, smell and others (Lee et al., 2006). In such way, marketers and advertisement agencies are able to predict the success ratio of product or campaign with the help of experiments on consumers while recording their brains’ reactions and signals. Revnoise and Morin (2002) in their book related to neuromarketing have categorised the brain into three aspects: the old, the middle and the new brain. As each of the brain differs from one another so does the responsibilities and tasks of each brain. According to a research conducted by Revnoise and Morin, the responsibility of the new brain is to feel, the middle brain does all the thinking while the old brain makes the important decisions that could help in the satisfaction of unending desires and wants. This eventually indicates that neuromarketing and imaging technology work towards the exploration of old brain rather than new and middle brain. As the old brain is the decision maker, neuromarketing focuses on influencing the old brain with different marketing techniques which could eventually help in the creation of artificial demand of the product. Revnoise and Morin (2002) have additionally indicated that the old brain is also responsible for the survival of individual due to which it makes decisions that could help in the satisfaction of desires for well being. The advocates of these methods consider this approach to be the safest and the only approach through which the organisations in the world would be provided with an opportunity to reduce their risks regarding the success of the products and with such approach, the organisations would evidently enhance their profits (Renviose and Morin, 2002). On the other hand, the opponents of this approach proposed that this marketing approach is far beyond the acceptable practices as it constantly works on sub-conscious level due to which the consumers have no control over their actions. In addition, the critics also assumed that the use of neuromarketing would bring up the issues of free will as this manipulative marketing technique would work towards controlling the actions of the consumers (Arussy, 2009). In addition, Fisher et al. (2009) have indicated that consumers are constantly kept in the dark of such practices as there is too little transparency and too little information being published in the researches. The Reasons and Causes That Influences People to Make Purchase It has been observed that people in the marketplace purchases for two particular reasons. People either buy for solving their problems or for the satisfaction of their desires and needs that could help them feel delighted and happy. For example, people purchases food for just one reason i.e. survival of their existence whereas, chocolate being a food is mostly purchased for the satisfaction of inner feelings. This means that when people purchase products from the marketplace, the reason for every purchase decisions are based on these two particular reasons. Due to the very reason, Shaw and Tamilia (2001) have indicated that influencing the people was the major reason for the changes in marketing practices. In addition, they also indicated that over the last four decades significant changes were observed in the marketing practices. Similarly, it has been observed in today’s era that people purchases product not for the satisfaction of their biological needs but most of the time, for the satisfaction of social and psychological needs. With changes in the market situations, more and more of the companies are offering products to help consumers satisfy their desired and needs. Due to such saturation problems, marketers have focused adding extra values to their products so that their products could stand out in the market. Marketers not only add additional values to their products but they create artificial needs by providing the customers with a whole lifestyle on a single product due to which people buy more of the products offered by the organisation so they could enhance their feeling of satisfaction, delight and happiness. This level of consumption as indicated by Solomon and Rabolt (2004) is directly linked to the ideal self of the consumers in the market. As a person is judged by his/her appearance so the same way consumers are judged as they are judge by the products they purchase in the market to satisfy their needs and demands. Solomon and Rabolt (2004) have further identified the ideal self with the help of Symbolic Self Completion theory. According to this theory, a person tends to complete his/her incomplete self by acquiring and using products that others could relate to his/her ideal self. In simpler words, people tend to hide their incomplete self by using products that could relate to their ideal image in the market. Neuromarketing plays an essential role in identifying what people aspire to be and what product could help these people to complete themselves so they can consider themselves as an ideal image. Damasio (1994) has revealed that psychology (i.e. emotions) play an integral part in decision making process. Similarly, Solomon and Rabolt (2004) have observed that people purchases products not due to the associated benefits or advantages that could significantly benefit the individual but for what they mean to them. This is where emotions come into act and blocks the thinking capacity of the people. In addition, it has also been indicated in several researches that people before acquiring any product or service evaluate its aspects. Some of the most prominent aspects include the price policy, location, features, packaging, branding and brand culture. Consumer’s Persuasion Model Traditional Consumer Persuasion Model The traditional consumer persuasion model focuses on exemplifying the ways through which marketers have created more effective promotions. The model focuses highly on phases which include screening, intervention and outcome. (Wilson, Gaines, & Hill, 2008) Revealed Preferences Consumer Persuasion Model This consumer persuasion model focuses highly on the collection of data at the individual level. The best example of retail organisation that uses such model is Tesco which uses consumer loyalty cards to track the purchasing behavior of customers. According to Humby, Hunt and Phillips (2007) organisations such as Tesco were able to enhance their level of sales with the help of data gathered through the loyalty cards. (Wilson, Gaines, & Hill, 2008) Collective Neuromarketing Persuasion Model This model differs from the 2 models mentioned above only in the screening phase. The screening phase of this model focuses on the introduction of neuroimaging techniques into the consumer behavior. Based on the responses gained from the consumers when provided with various marketing stimuli, the organisation designs its future persuasion attempts that could influence the consumer to make purchase on sub-conscious level. (Wilson, Gaines, & Hill, 2008) Individual Neuromarketing Persuasion Model This neuromarketing model focuses on the possibilities that may exist in forthcoming years. The screening phase is quite similar to the earlier model where the individuals are tested. However, the intervention phase significantly differs as the model focuses only the individuals rather than undifferentiated mass of consumers. (Wilson, Gaines, & Hill, 2008) Ethical Issues For Models Traditional and Revealed Preference Models The ethical issues that might occur in traditional preference model includes potential ethical conflicts in the primary practice i.e. awareness and consent of the consumers prior to and during the exposure to marketing stimuli. In addition, lack of transparency may occur such as; the use of one-way mirrors to observe the reaction of the consumers (Wilson, Gaines, & Hill, 2008). On the other hand, consumers willingly disclose personal information to the organisation due to their relationship with the firm. The information gathered are then use to persuade the consumers in the market but as consumers have provided the information willingly knowing all the risks ahead of them. In addition, this model suggests ethical violations that could occur due to lack of true awareness and consent on the part of target audience (Wilson, Gaines, & Hill, 2008). Collective Neuromarketing Persuasion Model The major area of concern for this model is the use of neuroimaging that allows the researchers to read the mind of the consumers and eventually permits them to understand which stimuli triggers excitement along with other emotions that leads the people to purchase products. With such knowledge, the organisation can manipulate the consumer’s purchasing decision. The potential privacy issue due to lack of transparency is another ethical issue in such persuasion model. As this model aims to understand the buying behavior of consumers, personal information may be compromised due to lack of transparency. On the other hand, being provided with such critical information, the organisation would have superiority as it would have information regarding the factors that triggers emotions to encourage purchases on sub-conscious level. Internal and External Manipulation of Behavior Kos-field et al. (2005) have revealed in their study that organisations carries significant risk of loss due to the administration of harmones that enhances the people’s trusting behavior along with their willingness to cooperate in the bargaining game. McClure et al. (2004) on the other hand, have presented their experiment that when individuals have low knowledge regarding the brands, their ventromedial prefrontal cortex is only active. But when provided with significant information regarding the brand, consumers exhibited additional dorsolateral and hippocampal responses. Hamilton and Denniss (2005) have labeled such experiments as disturbing as it manipulates the behavior of an individual as if their brains are rewired to want it. Due to such experiments, Hamilton and Denniss (2005) were able to conclude that the effective advertisement and cultural saturation strategy provides the organisation with superiority in the marketplace. In addition, with such strategy at work, the company was able to successfully make association between the products i.e. coke and other things that in fact were unrelated to it. On the other hand, it was indicated that the neuromarketing approaches are significantly used to bolster trust in speakers at political rallies (Damasio, 2005). With such encouraging trust, salespersons are also provided with an opportunity to enhance their sales. But salespersons are already engaged in activities designed to encourage and facilitate trust. Several researches indicate that salespersons are likely to engage in actions that could have positive effects on trusts which eventually increase the oxytocin. For example, a salesperson might tell individual/customers that the product he/she is looking for is somehow defective or unsuitable but since, the job of a salesperson is to enhance sales rather than declining it, the salesperson might tell the customers that the product is good and ready for use. This will eventually help in increasing trust of the consumer. With such trust, the salesperson would have the power to influence the consumer to purchase the products he/she wanted the consumers to buy. Future of Neuromarketing As indicated in the earlier stages of research, Neuromarketing provides the organisation with an ability to influence the consumer to make decisions regarding the purchase of products on sub-conscious level. This approach provides the organisation with perfect opportunity to enhance sales and reduce their risks despite such associated benefits, the future of neuromarketing is quite risky. It has become highly important for organisations to know a lot more about the consumers so that they can modify their offerings accordingly. Customers are more attracted if they are offered more customised deals rather than a general deal and thus neuromarketing has helped organisations in achieving this situation. Organisations need to make better use in the future in order to better understand the behavior of the consumers and in understanding how the consumers would behave and how different types of consumers are able to behave with different types of deals or offers. So, by understanding such important concepts and better understanding the behavior of different types of consumers organisation can not only modify their special offers and promotional campaigns but they can modify their products and services as well. Thus this would make the role of neuromarketing much stronger. Although, the information would help both the organisation and the consumers but the privacy of the consumers would be compromised which makes this approach quite unreliable in the future. With the ability to tap into the minds of consumers would provide the organisation with superiority in the marketplace which would eventually lead the consumers to make higher purchases to make their ideal self complete. References 4imprint. (2010). Neuromarketing: When science and marketing collide. Available from http://info.4imprint.com/wp-content/uploads/1P-07-0710-July-Blue-Paper-Neuromarketing.pdf [Accessed 18 April 2013] Arussy, L. (2009). Neuromarketing Isn’t Marketing. Customer Relationship Management, Information Today Inc. Brain Scam. (2004). Nature Neuroscience, vol. 7, no. 7, pp. 683. Cacioppo, J.T., Petty, R.E. (1985). Physiological responses and advertising effects: is the cup half full or half empty? Psychol. Market. Vol. 2, pp. 115–127. Damasio, A. (1994). Descartes’ Error Emotion, Reason, and the Human Brain. Penguin Group Inc. U.S.A Damasio, A. (2005). Human behaviour: Brain trust. Nature, vol. 435, pp. 571-572. Dias, D. (2006). A Buy Button’ in Your Brain? National Post, July 1. Erk, S., Martin, S., and Walter, H. (2005). Emotional Context During Encoding of Neutral ItemsModulates Brain Activation Not Only During Encoding but also During Recognition. Neuro-Image, vol. 26, no.3, pp. 829–838. Fisher, E., Lisa, C., and Robert, K. (2009). Defining Neuromarketing: Practices and Professional Challenges. Harvard Review of Psychiatry, vol. 18, no. 4, pp. 230-237. Hamilton, C. & Denniss, R. O(2005). Affluenza : when too much is never enough. Crows Nest, NSW: Allen & Unwin. Herman, S. (2005). Selling to the Brain. Global Cosmetic Industry, vol. 173, no.5, pp. 64–66. Huang, G. (1998). The Economics of Brains. Technology Review, vol. 108, no. 5, pp. 74–76. Humby, C., Hunt, T., and Phillips, T. (2007). Scoring Points. London, UK: Kogan Page Limited. Kenning, P., & Plassmann, H. (2005). NeuroEconomics: an overview from an economic perspective. Brain Res. Bull. vol. 67, pp. 343–354. Kosfeld, M., Heinrichs, M., Zak, P.J., Fischbacher, U. & Fehr, E. (2005). Oxytocin increases trust in humans. Nature, vol. 435, pp. 673-676. Lee, N. Broderick, A., and Chamberlain, L. (2007). What is Neuromarketing’? A Discussion and Agenda for Future Research. International Journal of Psychophysiology, vol. 63, no. 2, pp. 199–204. Lee, N., Broderick, A. J., & Chamberlain, L. (2007). What is ‘neuromarketing’? A discussion and agenda for future research. International Journal of Psychophysiology, vol. 63, no. 2, pp. 199-204. Lovel, J. (2003). Nader Group Slams Emory for Brain Research. Atlanta Business Chronicle, December 8. 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, vol. 44, pp. 379-387. Mucha, T. (2005). This is your brain on advertising. Business 2.0. Murphy, R., Judy, I., and Peter R. (2008). Neuroethics of neuromarketing. Journal of Consumer Behavior, vol. 7, pp. 293–302. Nick, L., Amanda, Laura, C. (2006). What is ‘neuromarketing’? A discussion and agenda for future research. International Journal of Psychophysiology, vol. 63, pp. 199–204. Petty, R.E., Cacioppo, J.T., (1983). The role of bodily responses in attitude measurement and change. In: Cacioppo, J.T., Petty, R.E. (Eds.), Social Psychophysiology: A Sourcebook. Guilford Press, New York. Reid, A. (2006). MRI Scanners Can Improve Advertising Effectiveness. The Economic Times, January 19. Renvoise, P. and Morin, C. (2007). Neuromarketing: Understanding the “buy buttons” in your customer’s brain. Nelson Thomas Inc. Rigby, E. (2006). Eyes in the Till. Financial Times, November 11. Rohwedder, C. (2006P). Stores of Knowledge. Wall Street Journal, Eastern Edition, June 6. Shaw, H. and Tamilia, R. (2001). Robert Bartels and the History of Marketing Thought. Journal of Macromarketing , vol. 21, pp. 156. Solomon, R. Rabolt, M. (2004). Consumer Behavior in Fashion. London: Prentice Hall Thompson, C. (2003). There’s a Sucker Born in Every Medial Prefrontal Cortex. New York Times Magazine, October 25. Thompson, J. (2005). They Don’t JustWant YourMoney, TheyWant Your Brain. London Independent on Sunday, September 11. Weinstein, S., Drozdenko, R., Weinstein, C., (1984). Brain wave analysis in advertising research. Psychol. Market. Vol. 1, pp. 83–96 Wilson, R., Gaines, J., & Hill, R. P. (2008). Neuromarketing and consumer free will. Journal of Consumer Affairs, vol. 42, no. 3, pp. 389-410. Read More