Institution; University of Zambia

Program: PHD in Business and Management

Name: Raphael mupeta
Lecturer; Dr Quotient Abubaker
Course: Seminar in Decision Making
 Abstract Neuroscience and Marketing

Neuroeconomics and neuroeconomics have one thing in common. Neuromarketing is a

field of research activity that that is consumer behaviors sensory nerves combinative and

effective response through marketing stimuli. Bridges the gap by measuring consumer behavior

and business insights. Marketers desperately need this skill to and dissipate consumer behavior

reliably. There needs to understand how consumers make the decisions and which part of the

brain is instructing them. More tools have been developed recently to help facilitate the task of

understanding how consumers make decisions among them include the functional magnetic

resonance imaging F MRI galvanic skin response electromyography Eye tracking . So normally

the blood flow in the brain associated with increased neural activity is tracked.

The benefit is that neural science techniques allow the consumer researcher to understand

the basic framework of physiological processes that guide how the consumer behaves by getting

into their black box which is the consumers mind. Neuromarketing provides effective methods

for probing consumer minds in absence of cognitive or conscious participation. Marketing is an

investment in expectation that companies or organizations revenues boosted through effective

marketing invested in the products and promotions. Neuromarketing has recently been realized

to have a strong influence on consumer buying behavior advertising pricing branding And

decision making inputs. It allows the generation of theories that integrates knowledge provide

business insights and predicting results under varying conditions.

The discusses the marketing potential based on the neuroscience innovations .

 Introduction

Behavior studies today regarding choice purchases and use require understanding the

consumer at length. The consumer will normally make preferences and choices with the vast

number of options. The availability of various products and services puts the consumer under

pressure when making choices also the consumer is limited in what's is affordable within his

budget.

On the other hand market size no longer wants to design products without understanding

consumer preferences. Previously they have been using traditional quantitative and qualitative

research such as observations interviews but still they've been ending up with a power stock

which consumers have not bought in spite of the interviews and questionnaires which indicated

that they would likely but the product and services. This has put managers and research scientists

at pressure to understand what exactly consumers mean when they are trying to communicate

through the interviews and questionnaires but still fails to connect with them buying behavior of

consumers. This has demanded for further research which can communicate consumer needs

reliably and to make their marketing and other businesses research reliable. Neuroeconomics and

neuromarketing are under development to bridge the gap between consumers on businesses

during the enhanced communication between the two, consumers and researchers.

Neurophysiological measures hey recently born to study human behavior in real situations. The

Barbarians do reflect on the neuroscientific tools, and how they are helping your mind behavior

studies.
 Neuromarketing emerged in the late 1990s. It has been developing with the aid of

technology by using tools which at least both conscious and unconscious thoughts by exploring

people's metaphoric expressions. It has been gaining popularity from the medical to the business

application. Most of the tools have been designed to show correlation between consumer brand

and marketing stimuli. The popular marketing research previously was limited to surveys,

interviews, questionnaires with other secondary data. However various delusive emerged to

extend the data such as FMRI, ECG which you use electrical magnetic activity of the dermis.

Human decision making has been known to be a conscious and a non-conscious activity

of the brain. Economists and marketers hey realized that one show my decision making is mainly

based on non-conscious information which has large influence in the decision and patches

making process. The combination of different tools to understand the consumers inflected being

used among them include electroencephalography EEG, Magnetoencephalography, Eye tracking

, are the common neurotechnology. Marketing involves investment oh using huge sums of

money. It has basically used traditional ways oh advertising product development to persuade

consumers decision making process. On the other hand neuromarketing techniques are the latest

and advanced tools used by marketing researchers to study and understand the consumer

behavior patterns. Advertising , products development and branding can be created with more

purpose by understanding the meaning and implication of each element in the process.

Availability of neuromarketing techniques enable marketers to use the innovative means that

involve brain scanning to understand the neurons behind the symbological decision making

process of the consumer. This can improve the efficiency and adequacy of marketing by selecting

and timing the video and audio features of effective marketing communications. This can involve

a simple focus group which represents A targeted segment, with an effective sample space and
the subject matter do test and advertisement, a branding approach, product stimulation and then

facilitate the best approach which consumers are able to respond to using the available

neuromarketing tools and techniques.

Theoretical concepts

Neuromarketing is the use of scientific neuro techniques to interpret, assess and to

comprehend human behavior in relation to markets and marketing, Ariely and Berns (2010).

Neuromarketing will assist marketers in enhancing the impact of marketing communications on

human brains by providing data regarding customer preferences by employing neuro imaging

tools, Chamberlain (2007).

According to Fortunato (2007), neuromarketing includes the techniques of neuroscience

that identify the regions of the brain which are responsible for consumer behavior. There are also

research tools for observing reactions of the brain during market stimulus research. It is an

interdisciplinary field that aims to understand consumer behavior by studying the brain using

various techniques such as neuroimaging.

Normally consumers brain waves are tracked to determine what they react to and why

they are react to some messages so that they can create, and craft products and advertisements

using brain activity stimulations to predict the purchase patterns and implement the knowledge

into brands marketing strategies. The neuromarketing can help the provision and determination

of the right data behind consumer motivation for a specific product from one brand in

comparison to the other. It brings to light the consumer preferences, and the stages they go

through when making decisions.

 According to Ciaramidaro, & Erik, (2005). The success of commercial adverts is no

longer on the frequency of display of various platforms but the feedback its able to generate in

terms of memory and revenue. Previously advertising measurements were based on reach,

evaluated the cost per thousand metrics.

Individual personalities vary between one consumer and the other, and this goes on to

decision making. It is difficult to trust what one consumer may think as they depend on their

peers and other role models to make the decision. Studying consumers through surveys focus

groups does not yield accurate information regarding consumer intentions because of their

ambiguity and biasness, Green & Srinivasan, (1990)

According to Zaltman, (2003) , in terms of recall and perception , the pre-tail of the

visual advertisements is not accurate when used alongside the respondents of native processes

which are activated throughout the interview. Most of the views of the respondents do not belong

to them but to others who are either their role models or peers or reflect the average society they

belong to.

According to Vlăsceanu (2001), neuromarketing makes it possible to find how the

consumer behaves and makes decisions by accessing unconscious thoughts emotions feelings

and desires that activate the buying decision. Neuromarketing facilitates the understanding of the

cognitive mechanisms of the brain using technologies that simplify complex purchasing

behavior,30. Emotional engagements that are very high and given the presented stimulus may

indicate an intent to purchase.

Eeg Electroencephalogram
 This technique involves the use of electrodes placed on the scalp of the individual or

candidate to measure the waves associated with various stimuli. Using this method has been

evaluated to be less invasive and less expensive compared to those techniques. His performance

has been ready to be excellent especially in the assessment of emotional styles by its ability to

measure millisecond changes in brain activity which can strongly and effectively apply in the

neuroscience of marketing where professionals can implement and you the results the intend to

obtain. It has an advantage and that it is also sensitive to motion which makes it portable and can

be used in most experiments that require action by the participant for instance in supermarkets,

open markets, product development centers and other areas where are the portable machines can

imply a challenge in terms of transportation and logistics. When evaluating stimulus such as

product development or brand communications campaign such as an advert, the controller can

choose which locations they are targeting to ensure that they are precise with the results they
want to obtain.

According to Purves et al.,( 2013) , “EEG is focused on the measurement of brain electrical

activity recorded by electrodes placed on the scalp at specific locations guided by the controller

.” “Because of its effective temporal resolution, this method is usually used to study changes in

brain activity in time and to analyse reactions to external stimuli” , Zaleśkiewicz, (2008).

FMRI; Functional magnetic resonance imaging

Functional magnetic resonance imaging is a neuroimaging technique that works by

measuring the number of jokes needed red cell complex and retains A sequency of well refined

images of cerebral activity to the machine monitor. The wake involves a high spatial resolution

in to deep brain structures. It's able to capture time varying changes in brain metabolism and

mapping the distribution of neural activity in the brain under varying cognitive conditions. The
relationship is that increased brain activity is accompanied by significant elevated cerebral blood

flow. The assumption is that neurons with active movement consume more oxygen than inactive

ones.

MEG; Magnetoencephalography

Magnetoencephalography records fields produced by the brain electric activity which

works by rapid scanning of the neural activity. When started with associated subjects it's simple

to review the functional connectivity between the brain regions supporting our cognitive

functions. The field or the area created by the neural activity is recorded inform of magnetic

fields generated by the electric currents in the brain. The output it's normally accurate resolution

of the timing of the neural activity using the right-hand rule recorded outside the head. When

subjecting the consumers with the various products or various campaigns or brand

communications, magnetic fields can be used to communicate responses from the machine and

help their marketers to make decisions regarding which ones are striking attentions before

investing sums of money in various brand communications. Billions of dollars can be saved

which have been wasted in various campaigns and a lot of products can be pruned from the

brand architecture those which no longer attract attention of customers.

 PET; Positron Emission Tomography

This is a positron emission tomography scan which uses a radioactive substance called a

tracker. It also employs a special imaging technique but uses radioactive particles that must flow

through the brain of the candidate so that when activation in the brain occurs to identify part of

the stimulated brain the substance causes a detectable reaction. It is known to be expensive but

compared to the cost of the marketing campaigns and expected revenues , they maybe

economical .
 EMPIRICAL RESEARCH
Human behavior mostly makes decisions based on emotions rather than scientific

evidence. They also fail to make judgment through evaluation but more on perception. Read

Montaque (2004) , “ participants were drunk while being subjected today F MRI another test for

Pepsi and Coca-Cola evaluation. Most of the participants thought that's they were taking Pepsi

instead of Coca-Cola.” According to Morin (2011) the affection with Coca-Cola was activated in

the frontal cortex of the brain. When consumers engage with the brand , they tend to perceive it

more than its credit ratings which are actual. This case has been true with the pricing offsetting

products like apple, Samsung, Tesla, BMW, another bronze which consumer are familiar with. In

most soccer games you find that the odds for Barcelona or Manchester United are mostly

exaggerated with the probability to win when in actual reality statistics would show that they are

level. Such perceptions are the ones which neuroscience can deal with when it comes to

consumer perception of products and services. Marketers need information to design products

which are right for a particular targeted segment. They need to design branch communications

which pitch perfectly to the targeted audience. This research was done a long time ago and it
needs to be evaluated further with the current information on various products so that it can hold

its concept.

Kahneman and Tversky (1984), Conducted the mental accounting process and evaluated

the results based on the functionality of the brain when making assessments, evaluations, or an

analysis. He explained the bi system battle affecting the brain; the first system being automatic,

and the second system based on the controller operations. He described that the first response

consumers make if the decision is fast is the emotional or automatic response, and the second

process which is deliberate involves generating cognitive alternatives. This was the second

evidence that shows evidence that consumers make decisions based on system one and barely

make decisions based on system 2. With neuroscience information, marketers can learn the

weaknesses of certain brand communications which they waste on product packaging and other

activates where they demand that consumers make decisions based on system 2 cognitively. If

emotion commands most of the decisions then most of the brand communications should be

based on emotions and neuroscience can be a pilot tester for most of the effects which market as

expect from new product development and other marketing communications. However

understanding the gap between system 1 and system 2 is there research gap that needs further

research. Further demarcations in the brain needs to be made as regards to where system one

starts and ends from as well as system 2 to help their decision makers apply the theory

effectively.

Belden (2008), the research concentrated on understanding the decision mechanism of

consumer perception and emotions by using their own vehicles. Motion reaction was spotted on

prefrontal cortex with sports cars. This research would also require similar ones with other

products so as to evaluate how consumers perceive other items which they own and the level of
emotion which they attribute to they own property. The other limitation of this studies that they

have not communicated which other parts of the brain responded to sports cars as well as what

other cars were there.

According to Glimcher, (2004); Politser, (2008) , conducted the study about the

immediate reward compared to the delayed rewind and found that consumers prefer the

immediate reward instead of they delayed reward and this decision comes from dopaminergic

systems of the limbic system which is the prefrontal cortex part of the brain which was activated

when consumers were making such a decision. This extended their evidence about the prefrontal

cortex which is supposed to be a leading brain area for making spontaneous decisions. This

neuroscience investigations we will enable the marketers to test various products and brand

communications before they reached the market and save billions of dollars which companies

can waste if they do not understand the consumer behaviors which they are product of

communications can evoke.

ANALYSIS OF THE DECISION-MAKING

Decision making with uncertainty.

In most cases, consumers make decisions from memory, and this makes decision making

easy. Consumer decisions come from memory in situations that are either similar or duplicating

themselves. Uncertainty in decision making hinders effective decision making. Most of the

products and services on the market are complicated for the consumer to understand them like

experts. Remembering self , plus the experience is responsible for most of the decisions that are

made .

Where there is uncertainty, neuromarketing can provide in the future a precise detail by

analyzing the neurobiology mechanisms of the consumer. A brain area called reptilian being the
real trigger of the decision can be targeted with advertising campaigns. If an advert or any brand

communication such as a marketing campaign can trigger this part of the brain, reliability of

persuasion on the marketing of the brand can be a guarantee.

Experimental economics should be able to drive more from neuroscience in designing

and performing research and that most of the theories lean more on neuroscience than economic

experimental theories.

So marketers are able to make predictions and calculate the dosage required for the

campaign if they can make use of the neuroscience available. Normally it is difficult in the

marketing environment to determine how long the brand communication or advertising

campaign on a television or radio should last. But the imaging technology in neuro science visual

stimuli can easily make contact with the primitive brain and how they ability to induce emotions

by detecting the paleocortex , an area of the brain and measuring the effect on the consumers ,

Renvoise ,(2010). It paleocortex is involved in the assimilation of the sensory and other neural

information and interact with the storage areas that consider long term memories.
 Decision making with certainty.

There is this fact that there are certain populations that do not update. Learning is key to

avoiding biases. The pessimism bias refers to the tendency to either overestimate or

underestimate the likelihood of the negative or positive event. It is also important to understand

they representative bias where the decision maker wrongly compares 2 situations based on

similarity. All because of not employing the cognition evaluation. According to economics the

expectations theories of the team structure and finance what's that long term interest rate is a

weighted average of the present and expected future short term interest rates which is likely to be

wrong, Wenzlaff &Wenger (2000). MRI studies they're very small sample sizes leading to

constructive results across studies and as such we need to be careful when interpreting the results

from these tools by also considering other traditional methods before making the decisions. It is

recommended that further research in the field of neuroscience is demanded following consistent

guidelines in terms of implementing the F MRI paradigms, Meinzer et al., (2013),

Decision making & Emotions.

Emotions constitute a potent, pervasive, predictable beneficial driver of decision making.

Emotions influence judgment and choice. There are basically three parts of the brain that have

been linked to emotions; the amygdala, the insula cortex. The anterior insula is a cool role in

supporting subjective feelings I can also regulate the introduction of feelings into cognitive

processes. The area is managed the emotional behavior. With the neuroscience and the

neuromarketing, this area is key for assessing brand communications such as marketing

campaigns advertising campaigns. It would only take a few focus group to make generalizations

on the general targeted marketing audiences. Brand new marketing campaigns that are likely to

affect this area with marks generated blood are more likely to influence the market effectively.
 In high involving decision making which requires extensive evaluations, the decision

maker may saturate the brains with cognitive facts about their decision domain in order to

diminish the carryovers of emotions, Leaneret al (2003). Where motions are not necessary a few

strategies have been this is to be effective such as delaying to make the decision, making and

shuffling through appraisals counteracting the emotional state, should I think the judgment or

decision process from the emotion e.g by increasing awareness of the misattribution modifying

the choice architecture to mention but a few Lenveson (1994). According to Bodenhausen ,

emotional arousal plays a vital role in interpreting emotions . Marketing can, through

understanding the emotional attachments which consumers hold with products and services take

advantage. Marketing can also take advantage of emotions by ensuring move away from the

cognitive perspective to emotional perspective were their judgement becomes purely emotional

Maximization And The Game Theory

Game theory teaches us how to come up with the best strategy to avoid a possibility that

may not be deserved. To optimize decision making it is recommended that one can combine the
game theory with psychology in neuroscience and economics that study human behavior and

how the brain works. Utility maximization spells that one can make an economic decision that

guarantee the highest level of consumer satisfaction. However, there’s been so much criticism

about an economic man in It simplifies human behavior. It that gives that human behavior

follows social cultural norms, and those other choices are made in the first conditions oh

situations. The limitation on the rational choice model is that it assumes that all acts of choosing

made on the basis of with the preference principle cut it out without error.

On the other hand neuromarketing is able to provide a more precise detail on the

neurobiological mechanisms of consumers when they are subjected to their decision making

process. The cortex part of the brain contains the physical structures which are responsible for

what is normally known as cognition mental imagery and the highly sophisticated processing of

visual information. It is the real trigger of decision.

The reptilian in the cortex contains the physical structures responsible for most of what

we call ''brainwork": cognition, mental imagery, the highly sophisticated processing of visual

information, and the ability to produce and understand language. According to (Renvoisé, 2010).

We make decisions on the emotional level which then we try to justify them from the rational

point of view and not that we are rational all the time.
 The use of neurobiology data to evaluate the effect of commercial advertisements and

other branding communications is gaining momentum. Going forward marketing firms I'm

realizing that neuroscience is indispensable for decision making as it employs the mapping of the

brain activity for the purpose of accurately assessing the marketing communications. The detail

analysis of the markets and product offering hey making things better for their marketing

environment. They're able to make forecasts regarding customer behavior and consumer

purchase behavior. Neuroscience is giving marketing academics and professionals a particular

niche That facilitates every waiting the brain processes and behaviors.

Neuromarketing from neuroscience is offering avenues to explore in the marketing

environment by making use of the tools to better understand consumer behavior and generate

more effective results when combined with the traditional marketing research techniques as

triangulation to develop advanced information that is closer to accuracy and enhanced prediction

of consumer behavior.

Ethical considerations are equally important in that privacy is important and needs to be

respected and consumers need to be given the freedom of choice before being subjected to

various scientific tools. To adhere to principle of ethics researchers center neuroscience are

expected to run communicate the goals and the processing of data collection to the targeted

individuals and an issue that both the local and international laws that protect consumers are

followed. Consumers are expected to understand and consent today risks or being exposed to the

new technologies in neuroscience.

Cognitive neuroscience has just begun to provide data relevant to the brain-based

understanding of human decision making. There is still a lot to discover in this field. More
profound and deep knowledge and understanding of how the brain functions is needed to explain

all the mysteries of human decision making.

In conclusion neuroscience is making a significant contribution as the examination of the

neural activities that underline the daily activities related to consumers, products, and marketing

at large. It is the wonderful and an amazing bridge between academic research and practical

application into business providing critical inputs to marketers and other decision makers in the

industry. They are available tools are being developed to enhance their current neuromarketing

tools which are giving insights not only into what day consumer thinking patterns are but also

consumer reactions to potential products and brand communications such as advertising. These

are being based on the premise that specific areas of the brain activated during the specific types

of cognitive and emotional processing, in the decision-making process of the consumer.

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