Claudia Townsend

Consumer neuroscience: Assessing the brain response to marketing stimuli using electroencephalogram (EEG) and eye tracking

Application of neuroscience methods to analyze and understand human behavior related to markets and marketing exchange has recently gained research attention. The basic aim is to guide design and presentation of products to optimize them to be as compatible as possible with consumer preferences. This paper investigates physiological decision processes while participants undertook a choice task designed to elicit preferences for a product. The task required participants to choose their preferred crackers described by shape (square, triangle, round), flavor (wheat, dark rye, plain) and topping (salt, poppy, no topping). The two main research objectives were (1) to observe and evaluate the cortical activity of the different brain regions and the interdependencies among the Electroencephalogram (EEG) signals from these regions; and (2) unlike most research in this area that has focused mainly on liking/disliking certain products, we provide a way to quantify the importance of different cracker features that contribute to the product design based on mutual information. We used the commercial Emotiv EPOC wireless EEG headset with 14 channels to collect EEG signals from participants. We also used a Tobii-Studio eye tracker system to relate the EEG data to the specific choice options (crackers). Subjects were shown 57 choice sets; each choice set described three choice options (crackers). The patterns of cortical activity were obtained in the five principal frequency bands, Delta (0-4Hz), Theta (3-7Hz), Alpha (8-12Hz), Beta (13-30Hz), and Gamma (30-40Hz). There was a clear phase synchronization between the left and right frontal and occipital regions indicating interhemispheric communications during the chosen task for the 18 participants. Results also indicated that there was a clear and significant change (p<0.01) in the EEG power spectral activities taking a place mainly in the frontal (delta, alpha and beta across F3, F4, FC5 and FC6), temporal (alpha, beta, gamma across T7), and occipital (theta, alpha, and beta across O1) regions when participants indicated their preferences for their preferred crackers. Additionally, our mutual information analysis indicated that the various cracker flavors and toppings of the crackers were more important factors affecting the buying decision than the shapes of the crackers.

Self-Affirmation through the Choice of Highly Aesthetic Products

Just as good looks bestow an unconscious “beauty premium” on people, high aesthetics bestows an unrecognized benefit on consumer goods. Specifically, choosing a product with good design affirms the consumer’s sense of self. Choice of a highly aesthetic product was compared with choice of products superior on other attributes including function, brand, and hedonics to show that only aesthetics influences a consumer’s personal values. In study 1 a prior self-affirming task leads to a decrease in choice share of a highly aesthetic option. Studies 2 and 3 mimic prior research on self-affirmation with, however, choice of a highly aesthetic product replacing a traditional self-affirmation manipulation. Choosing a product with good design resulted in increased openness to counter-attitudinal arguments and reduced propensity to escalate commitment toward a failing course of action. There are numerous implications of this form of self-affirmation, from public policy to retail therapy.

The Impact of Dynamic Presentation Format on Consumer Preferences for Hedonic Products and Services

Manufacturers and online retailers are readily availing themselves of new technologies to present their merchandise using a variety of formats, including static (still image) and dynamic (video) portrayal. Building on vividness theory, the authors propose and demonstrate that presenting products and services using a dynamic visual format enhances consumer preference for hedonic options and willingness to pay for those options. The dynamic presentation format increases involvement with the product/service experience in a manner presumably similar to that of the actual product experience. The result is an increased preference for and valuation of hedonic options. This holds true for experiential and search products in single and joint evaluations and carries over to subsequent choices. Across all studies, the results demonstrate that a dynamic (relative to static) presentation format enhances choice of the hedonically superior (vs. utilitarian-superior) option by more than 79%.

Assortment Variety: Too Much of a Good Thing?

Purpose – The purpose of this chapter is to examine the connection between actual variety (the number of stock-keeping units (SKUs)) and amount of useable variety that the consumer perceives. The optimal combination for a retailer is to offer an assortment that maximizes the perceived assortment variety while minimizing the perceived inter-item complexity. Both measures are a function of the actual variety offered in an assortment but other factors such as attribute structure of the individual items, assortment organization, and individual differences can alter the way the actual variety is perceived.Design/methodology/approach – The main methodology used in the chapter is a comprehensive, critical literature review of the empirical research on the topic.Findings – We find that while assortments with a large number of SKUs are desirable for attracting consumers to the category, too large assortments can result in consumer frustration and confusion. On the other hand, when assortments are small, the perceived variety or attention to the category may be limited.Value/originality – Our review shows ways a retailer can adapt to these challenges. First, we show that assortments are viewed in stages. In the first stage, high perceptions of variety are beneficial. When assortments are small, increasing perceived variety can be accomplished by increasing the number of subcategories within the assortment, adding in packaging cues, or using other emotional affective descriptors to further define options within the assortment. In the second or choice stage, too much variety can increase perceived complexity. Perceived complexity at this stage can be reduced by simplifying the complexity of the individual items within the assortment by increasing alignability of attributes, using a simplifying external organizational structure for the assortment, or helping consumers learn their preference.

Using aesthetics and self-affirmation to encourage openness to risky (and safe) choices.

Research has shown self-affirmation to be a powerful tool for increasing openness to arguments. However, prior examinations of its effects involved manipulations with limited applicability outside the laboratory. Building on recent work suggesting that choice of highly aesthetic products can be a form of affirmation, we proposed and tested whether merely affiliating people with high aesthetics can affirm their sense of self and thus encourage openness to arguments advocating selection of one option over another. In 3 experiments we examined this effect in financial and consumer decisions in which choices varied in their inherent risk. Across the experiments, after affiliating people with high (vs. low) aesthetics, they were more likely to select the advocated option--whether that option was the riskier or less risky option. This occurred using actual annual reports and a sample of experienced investors (Experiment 1), when the aesthetic affiliation and the choice tasks were in entirely unrelated areas (Experiment 2) and was driven by greater openness to arguments (Experiment 3). Together these studies offer a self-affirmation manipulation that is relevant and easily used by practitioners in a variety of fields. They also provide novel insights on the link between aesthetics, self-affirmation, openness, and risk taking.

Toward an optimal donation solicitation: Evidence from the field of the differential influence of donor-related and organization-related information on donation choice and amount

The present research decomposes consumer donation behavior into two components: donation choice (i.e., whether to donate) and donation amount (i.e., how much to donate). It then considers how information related to the donor and information related to characteristics of the soliciting organization may differentially influence the two decisions. Results from four field experiments suggest that donor-related appeals have a greater effect on the donation choice decision (vs. organization-related appeals), whereas organization-related appeals have a greater effect on the donation amount decision (vs. donor-related appeals). This might lead one to conclude that presenting both types of appeals in a solicitation is ideal. However, the studies presented herein also suggest that this strategy may backfire. The simultaneous presentation of donor- and organization-related appeals can hamper both donation response rates and average contribution amounts. To address this issue, the authors identify and test an alternative solicitation strategy for maximizing solicitation effectiveness. This strategy involves a multistep request process that capitalizes on an understanding of the differential influence of donor- and organization-related information on donation choice and amount decisions.