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The first Neuromarketing World Forum 2012 (Amsterdam) was one of the best experiences in my life, and it engaged all my senses! It gathered around 100 people interested in neuromarketing from an academic or business point of view, from top neuroscientific researchers to commercial parties that discussed the key challenges and opportunities of using neuromarketing tools to enhance and add value to market research. I will share with you the experience of participating at NMWF 2012.
The event was held on 2nd and 3rd of February, at NEMO Science Center in Amsterdam, the biggest science center in The Netherlands, where you can discover the wonderful world of science and technology in a playful and entertaining way. NMWF was organised by Neuromarketing Science & Business Association (NMSBA), a global trade association for everyone interested in neuromarketing. Congratulations to Carla Nagel (Director NMSBA) and her team for organizing the world’s first Neuromarketing World Forum!
At NMWF 2012
First day (2nd of February 2012)
Thursday in the morning we all met at NEMO Science Center and during the registration we had time for networking. At 10.30 the conference started with a welcome speech from Carla Nagel, the Director of the Neuromarketing Science & Business Association. Carla Nagel informed us that this new association already has members from 34 countries. Wow! The chairman of the conference was Rob Janssen.
Professor Siberstein continued the conference with a presentation about messages to the long-term memory of the audience. Talking about the technology and methodology used, he confirmed that they use Steady State Topography (SST) in order to measure spontaneous brain electric activity and to find the relation between this activity and memory. As advertisements need temporal resolution in order to investigate the precise moments that engage a certain emotion, SST is the right choice. As for the brain regions specialize in functions, he used this knowledge in order to measure consumer engagement and memory encoding.
In order to examine the relationship between brain activity changes at frontal sites and long term memory for advertisements not previously seen, he used the hypothesis that scenes associated with increased prefrontal excitation will be better recognized after a period of 7 days than scenes with reduced prefrontal excitation. Prof. Silberstein commented that the activity bounce between left and right frontal lobes reflect rejection or acceptance, and advertising effectiveness is correlated with the level of long term memory encoding at the time of key message and branding. This insight can optimize branded content.
Prof. Richard Silberstein
Prof. Richard Silberstein
Prof. Richard Silberstein
During an experiment Prof. Richard Silberstein presented, subjects were asked to choose products they need from some shelves and to put them in their shopping basket. Then they were invited in a room to watch a video material that contained also some advertisements. After leaving this room, they were told that their shopping basket was lost and that they needed to choose the products again. The interesting part is that they choose brands that were advertised a few minutes before, and this brand shift was attributed to the advertisements they watched.
Prof. Richard Silberstein
Studying Behavior
Prof. Richard Silberstein
Professor Silberstein emphasized that memory encoding is the key to effectiveness and presented the results that sustain this statement (the study included measuring the average of 9 best performing ads and 9 worst performing ads selected from IPA advertising effectiveness database of recent UK ads). He also presented the way brain remembers events separately and how small changes in advertising can have powerful effects. As he said, “to rationalize is to tell rational lies”.
Prof. Richard Silberstein
Prof. Richard Silberstein
Prof. Richard Silberstein
Professor Silberstein also presented results on conceptual closure triggers and advertising effectiveness, concluding that high peeks in long-term memory encoding (iconic triggers) indicate deeply encoded imagery and sound used by the brain to reconstruct entire sequences, conceptual closure marks the temporal transition from one set of strongly associated memories to another set of such memories. He emphasized that the management of conceptual closure can have a profound impact on advertising effectiveness.
Prof. Richard Silberstein
Prof. Richard Silberstein
Prof. Richard Silberstein
Professor Dr. Victor Lamme (CEO Neurensics & Professor at the University of Amsterdam)
Prof. Victor Lamme presented ways to predict preference and purchase using BOLD fMRI. At Neurensics, they use fMRI and their own 12 ‘mappers’ in order to analyze brain response to commercials, brands, products, packages, covers or propositions to predict what people will do when they are presented the products or the services advertised, as what they say they will do says nothing about what they will actually do. They are able to make these predictions by combining activity that reveals positive emotions with activity that reveals negative emotions. The balance between the two variables determines what people will do (approach or avoidance, buying or ignoring). Prof. Lamme explained that when confronted with a stimulus, the brain automatically assigns value to it. So, after identifying regions and networks that represent positive or negative values, they quantify the emotion or value that is assigned by the brain and combine these values to predict behavior. They record activity in regions of the brain that signal emotions and values that are relevant for consumer behavior, such as desire, trust and self relevance, or emotions that are to be avoided, such as fear or aversion.
Prof. Victor Lamme
Prof. Victor Lamme
Prof. Victor Lamme
Their results show that neural activity during the scan is a much better predictor of behavior change, in particular in Medial Prefrontal Cortex, Nucleus Accumbens and the Precuneus (Nucleus Accumbens and Medial Prefrontal Cortex correlate positively with purchase, while Insula correlates with price and negatively with purchase). As brains are similar, their study included 27 teenage subjects and they where able to predict USA wide sales of newly released pop songs. And their opinion did not predict it!
Prof. Victor Lamme
Prof. Victor Lamme
Prof. Victor Lamme
Professor’s Victor Lamme case studies included Heineken and Grolsch bier package designs, bank brands (like ABNAMBRO, ING Bank, RABO Bank), Cosmo magazine covers and an experiment on book covers (experiment included 16 subjects and analyze brain rating for most selected books versus least selected books; most selected books scored high values for “Self Relevance” and “Trust”, meanwhile least selected books scored high values for “Familiarity” and “Disgust”; results included that book choices correlate positively with “Self Relevance” (0.60) and “Trust” (0.52) and negatively with “Disgust” (-0.52)). Using Machine Learning and Neural Networks, they were able to predict behavior from the emotions experienced and presented a model for Purchase Loyalty Satisfaction (a neural network prediction scheme). Prof. Victor Lamme also presented results from examining commercials that received The Effie awards, Gouden Loekie awards and Loden Loekie awards: effective commercials are distinguished by high value, high trust and low anger. He concluded that the relative weight of emotions depend on product class and desired goals.
Dr. Stephen Sands focused his presentation on recording brain waves at the super market and about what happens in the brain when people spot an item of interest, grab it, examine it and then place it in the shopping basket. Using 68 channel full spectrum EEG technologies, they quantify: Overall Engagement, Emotional Valence, Cognition, Attention, Visual, Motor, Memory, Recognition. Their suite of Neurometrics, which are time-locked with the marketing stimulus and the eye movement of respondents, are designed to segment different types of brain responses that are evoked. These responses provide an unique and entirely non-verbal data on brain processing in the retail environment, moment-by-moment.
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
The challenges to recordings include the fact that participants are moving freely without any restrictions in the store, the electrodes must be firmly attached and have a low impedance, movement artifact can be significant, eye-movement recordings are critical to success / failure of EEG, data is massive and it is not easily automated.
For the study, the subject carried a backpack with a notebook (removing eye moving artifacts) and used an EEG cap (64 channels of Ag/AgCl Electrodes) and a Binocular Tracking system modified for mobile recordings, that was able to track where the subject was looking and the depth of the look. Recordings have been collected from 250 subjects that visited stores in 8 major markets (2-3 stores were visited within a given market area) across the USA. If a subject choose to purchase a certain product, they went back on the video recording to find the first eye movement to that particular product and analyzed the brain activity for that moment. The first look that identifies the product is the one that can determine buying and takes place in around 100-200 milliseconds. The activation of visual cortex, precuneus and frontal lobe as a first emotional response is used to make the buying predictions.
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
Dr. Stephen Sands
Examining 17.969 eye fixations, the study concluded that most eye movements are to rejected items (82.44%). Results also showed that alcohol produces the highest neuro-engagement score (so alcohol is the most activating stimuli), followed by candies, frozen desserts and different products placed in front aisles. Lowest neuro-engagement score was computed for fruits and vegetables. As for the time spend on each category, meats scored the highest time and candies, coffee and tee scored the lowest time.
Dr. Sands reported that there are no differences between males and females on their behavior when choosing products, the difference shows up only in the products they choose, and that only 5% of eye looking is on displays. There were important differences between the shopping list the subjects prepared and what they actually bought. The correlation coefficient between what people want to buy and what they actually buy is around 0.2 and many times it cannot be used for predictions.
Prof. Gemma Calvert provided information on the practical applications of neuromarketing tools, how to choose the right tool for a specific marketing question, what kind of insights can be derived and how to fit these findings into your existing research framework.
She explained that when a process is learned, it becomes involuntary and hard to be explained (just as driving a car), and this is a reason why brains say one thing, and people say another. So neuroscience is valuable to use when people can’t talk, won’t talk, or when dealing with embarrassing or difficult topics, self-denial or when some cultures negative opinions are not encouraged. She emphasized that neuroscience will transform business in the neural age, as emotions come first (significant decision elements are emotional, pre-conscious; we feel, act and think not the other way around; there are post-rationalisers of our choices, not rationalisers) and there are multiple inherent biases, often biologically derived (perception is biased; attention is fragile; some cognition is much more hard-wired than we thought).
Prof. Calvert presented two models of neural processing: System 1, that is based on unconscious emotion (Limbic System) and System 2, based on conscious reason (Prefrontal Cortex). The first one is associative, very fast, effortless, involuntary, about here and now, and the second one is rule following, slow, effortfull, controlled, concerned with future plans. They use System 1 when dealing with routines (shoppers buy the same brands – 80%, consumers cook the same meals, or visit the same pubs) and the system is reported to be highly efficient post the learning phase. System 1 is evoked when dealing with perception of threat, survival directive that hates uncertainty, novelty that hijacks attention, and cognitive overload that evokes stress. Prof. Calvert emphasized that implicit reactions predict what people do.
Prof. Gemma Calvert
Prof. Gemma Calvert
Prof. Gemma Calvert
She also presented the major trends in marketing, how will the consumer behave (impulse or panic buying, regret at leisure, confusion and loss of control, digital distraction = loss of concentration, learned helplessness – do nothing) and what can marketers do (declutter, simplify, differentiate, familiarize, build brands).
Prof. Gemma Calvert
Prof. Gemma Calvert
Prof. Gemma Calvert
Professor Gemma Calvert continued with a brief presentation of the tools used in neuromarketing research and which tool should be used in order to answer certain questions: Eye Tracking (for visual fixation, attention and search), implicit attitude tests (for reaction times and error rates), EEG (for attention, implicit awareness, memory encoding, approach withdraw), fMRI (positive / negative emotions, memory encoding, sensory perception, craving, conflicting feelings, anticipation of price, social acceptance, self-relevance, trust, loyalty and many others).
These tools are being used for certain research: Eye Tracking (websites, in-store aisles, packages, advertisements, POS displays), implicit attitude tests (brand positioning, salient pack features, brochure preference, category segmentation, celebrity endorsement), EEG (advertisements, websites, movie trailers, audio-visual cues, in-store response), fMRI (new product development, identify needs and habits, public health campaigns, fragrance testing, multisensory interactions).
Prof. Gemma Calvert
Prof. Gemma Calvert
Prof. Gemma Calvert
Neurosense’s approach is based on a neurogenetic model of reward (positive) as well as (negative) barriers to purchase. Case studies presented included a Dove Homecare campaign that was launched and had failed in the USA despite the positive focus group data. Also, a study that focused on implicit association with client brand (Audi) versus competitor, revealed that Audi’s strongest prime words (with lowest reaction time in milliseconds) are “popular”, “trusted”, “reliable”, “modern” and “safe”. Dr. Calvert also presented studies that used measuring multisensory brand profile using fMRI.
Prof. Gemma Calvert
Prof. Gemma Calvert
Prof. Gemma Calvert
Prof. Gemma Calvert
Prof. Gemma Calvert
Professor Calvert emphasized that good reasons to use neuroscience knowledge in marketing research include gaining insight into the hard truth, leverage new insights to advance competitors, greater insight into customers and designing campaigns that match brands with emotions.
Prof. Diana Derval focused on targeted product development and applications from new neuroendocrinological research which proves that consumers are rational: they just have a different physiological perception of the same stimulus! Their preferences, behavior, and decisions are strongly influenced by the hundreds of millions of sensors monitoring their body and brain. Nowadays, many companies fail to acknowledge and analyze disparities observed among consumers and simply put them down to culture.
Prof. Diana Derval
Prof. Diana Derval
Prof. Diana Derval
Illustrating striking case studies in this interactive session, Prof. Diana Derval shared an unusual approach to: Understanding and predicting consumers’ behavior and preferences; Designing the right sensory mix (color, shape, taste, smell, texture, and sound) for each product; Fine-tuning the positioning and product range for every local market; Systematically increasing the innovation hit rate. She also presented her book “The Right Sensory Mix” that was the finalist of the Berry-AMA prize for Best Marketing Book 2011.
Prof. Diana Derval
Prof. Diana Derval
Prof. Diana Derval
Professor Derval emphasized that color perception, hormones and taste buds play a very important role in advertising, and her research is based on them. Also, based on measurements performed in the last 5 years in over 35 countries, DervalResearch introduced the “Hormonal Quotient” in order to help predict consumers’ behavior, sensory perception and product preferences.
Prof. Diana Derval
Prof. Diana Derval
Prof. Diana Derval
She also shared small papers with all people in the audience and asked us to taste it. Some of us felt a bitter taste, others said it just tasted like paper. As concerning the taste buds, it seems that there is a correlation between the taste we felt and out immune system.
There was an interesting case study presented, about a company that had to choose the color for a dinosaur toy, in order to sell it in China. In order to find the right color (the one that would produce most sales), they based their research on how near sighted people and far sighted people perceive different colors, and choose the blue color for the toy that would be sold in China.
She emphasized that observing the consumer will always lead to better results in advertising and branding.
Cristina de Balanzo and Prof. Rafal Ohme presented the application of different neuromethods on enriching consumers feedback and how to integrate the findings resulted.
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo started her presentation with the common aim of cognitive neuroscience and neuromarketing industry of understanding the decision-making process. Their research is based on approach / avoidance motivational systems that underlie learning and affect. Prof. Rafal Ohme presented very interesting case studies and video materials that were tested using EEG, Eye Tracking devices and GSR. He emphasized that galvanic skin response is a purchase behavior correlate.
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
In order to emphasize the differences between what people say and what they think, Prof. Ohme also talked about how they tested a Heineken campaign in the early stages of creativity. The proposal included a storyline of 4 men sitting at a table, using their cell phones, and at a certain time, the waiter brings them the bier (Heineken). The qualitative prediction revealed negative emotions, as people considered that using the cellphone while sitting at a table with friends is not how they should behave. The contradictions come with the bio prediction that revealed that people do approve the attitude of the characters in the advertisement. An experiment that examine the package design of Heineken bier found that people are not disappointed with the brand, but they do expect more from Heineken design.
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
Cristina de Balanzo & Prof. Rafal Ohme
———————-
Presentation also included the evaluation of a campaign of Chinese extraordinary people and the results were very interesting. They recommended that in Japan and China the promotional focus should be on celebrities, while in other countries on ordinary people who build China, and also that the final scene should be more spectacular.
Prof. Ale Smidts, the person who coined the term “neuromarketing” in 2002, presented what new insights we can expect in the new future from neuromarketing research and how will the field develop and integrate as a discipline on the business floor. He emphasized that in the last 10 years, there was an enormous progress in understanding fundamental brain processes underlying preferences and choice, recommending Paul Glimcher’s book “Neuroeconomic Analysis”.
Prof. Smidts said that neuromarketing is clearly in the take-off phase and it is becoming serious business, as in May 2011 Nielsen acquired NeuroFocus, a leading neuromarketing company. He stated that the goal of neuromarketing is “a better understanding of the customer and his reaction to marketing stimuli by measuring the processes in the brain (neuroimaging and biometrics) and including them in the development of both theory and stimuli”. Marketing stimuli include products, ads, sales person behavior, webpage design and so on.
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
As for the brain processing underlying celebrity effects in advertising, he discussed how familiar faces attract attention and will cut through the advertising clutter. Also, marketers should make sure that there is a believable link between celebrity and product in order to improve memory encoding of the product and induce trust to the product leading to higher purchase intent. Giving expert advices, marketers maximize physical attractiveness, likability, trustworthiness and emphasize identification / role model. Research shows that there is a transfer of affect from celebrity to product at the level of Medial Orbitofrontal Cortex.
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
—————————
While Marketing 1.0 was product centered, Marketing 2.0 consumer centered, Marketing 3.0 is human values centered. Prof. Smidts also presented a research conducted on anti smoking ads (using an fMRI and 16 different “quit smoking” ads) and one on predicting consumer preferences. He stated that most companies use EEG, as it is cheaper and easier to use than fMRI, has a high time resolution (but not so sensitive to ‘deep brain areas’) and high claims (but needs more objective testing of the claims). Prof Smidts emphasized that we need to do much more work into theory development and testing in order to prosper, as neuromarketing is ‘here to stay’ (academic and applied research rapidly growing). He also presented how neuromarketing research could help creating a better world, supporting a healthy life. He said that insights should help in creating more favorable and sustainable consumption.
Prof. Smidts stated that ‘we have not seen anything yet’ in terms of understanding the brain, understanding the neurobiology of choice (integrating neuroimaging, biometrics, hormones, genes) and advances in neuroimaging methodology (Multi Voxel Pattern Analysis and predictive classifyers). As neuromarketing is where science and practice meet, a collaboration between the two areas has to be assessed objectively in order to develop sound methods and quality standards and to provide objective evidence for the added value of neuromarketing methods, above and beyond current methods. Concluding, he stated that NMSBA (Neuromarketing Science & Business Association) is the ideal platform to stimulate this collaboration and develop research agenda.
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
Prof. Ale Smidts
———————
At 5 P.M. started the social event and we went on a boat tour with drinks on the famous Amsterdam canals and then to dinner at Sofitel Legend The Grand Hotel, where we ate Tartar of seabass, Dutch prawn, lemon grass yoghurt; Organic corn-fed chicken, carrot and ginger puree, king oyster mushrooms, baby courgette, red wine sauce, mini fondant potato; Rhubarb yoghurt crumble with bitter orange and vanilla puree as desert. This was a great networking opportunity, as I could talk to Ana Iorga (Lemon Studio), Diana Lucaci (True Impact Marketing), Cristina de Balanzo (Global Head Of Neuroscience at TNS), Rafal Ohme (founder of Human Mind & Brain), Guy Redwood (Founder of SimpleUsability Ltd) or Sergio Romijn (CoFounder & Partner at EngagedMarketing). The evening ended at 10.30 P.M.
Martin de Munnik started the second day of Neuromarketing World Forum 2012 with a presentation on how to commercialize neuromarketing research and the challenges encountered in the neuromarketing industry.
Martin de Munnik
Mr. de Munnik also answered the following question: what is the product that we sell, as neuromarketers? We found out that at Neurensics they use 3D Brain Rating and 3D Brain Mapping, and the presentation included case studies of Heineken, commercial testing, book covers sales triggers, improving packaging by inference for Axe, finding the most appropriate name for a company (3 choices) and predicting price strategy using fMRI.
Cristophe Morin had a great presentation on neuromarketing ethics and the privacy of thoughts, providing information on the protocols and ethical guidelines. He discussed ethics and protection of subjects, protection of insights and protection of youth. He stated that ethics involves explaining protocols (E), treat with respect (T), honor privacy (H), instill trust (I), condemn stealth ads (C) and safeguard youth (S).
Prof. Mariano Alcala discussed several aspects of emotional marketing (emomarketing) with a special emphasis on the measurement of affective states of final consumers. The use of immersive computer graphics techniques like virtual reality and augmented reality were analyzed as powerful tools for product presentation.
The use of these “virtual mockups” techniques are emerging as a valuable tools for modulating and measuring affective states while modifying the aspect of product presentation. Prof Alcaniz stated that four points of pain are time, cost, relevance and reliability. At LabHuman, they have a multidimensional strategy that involves questionnaires (emotion / memory, remembering tasks, reality monitoring, Kansei methodology, analog-visual scales), physiology (heart rate, HR, ECG, GSR, linear analysis, non linear analysis), brain (EEG, fMRI, O2 consumption, biomarkers) and behavior (gestures, face tracking, eye tracking).
Finn Raben’s presentation looked at putting neuroscince in the context of a traditional industry like market research. He also showed how ESOMAR (the essential organization for encouraging, advancing and elevating market research worldwide) is helping the industry to engage with neuroscience. Mr. Raben also shared with us the 36 Questions to help Commission Neuroscience Research (that I will present in a later post).
Neuro… Science
Finn Raben
————————
At 13.30 started the break outs: CEO Roundtable (invitation only), Roundtable for Neuromarketing Education & Communication and The Neuromarketing Chain of Techniques and Business.
I attended the Neuromarketing Education & Communication Roundtable, where we were presented with a brief overview of existing neuromarketing education and organizations and vision on neuromarketing education in business. There was also a discussion and share of minds with the participants, which Professor Fabio Babiloni (Professor at Rome “Sapienza” University) coordinated. Next we talked with Carla Nagel about the next steps in pushing the neuromarketing field forward and about the forthcoming “Journal of Neuromarketing: Theory & Practice”.
Marcelo Peruzzo had a presentation on unconscious habit of consumption of ice cream, how the combination of measurements leads to insight in emotional response and how these insights lead to valuable information before entering the ice cream market.
Marcelo Peruzzo
Prof. Marcelo Peruzzo
See you all next year!
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[…] Center in Amsterdam, the biggest science center in The Netherlands. Read the detailed experience here (includes photos). Also, check the pictures from NMSBA’s Flickr […]
[…] The 1st Neuromarketing World Forum (February 2012, Amsterdam) gathered over 100 people interested in neuromarketing from an academic or business point of view, from top neuroscientific researchers to commercial parties that discussed the key challenges and opportunities of using neuromarketing tools to enhance and add value to market research. The event was held on 2nd and 3rd of February, at NEMO Science Center in Amsterdam, the biggest science center in The Netherlands. Read the detailed experience here (includes photos). Also, check the pictures from NMSBA’s Flickr account. […]
Thank you, Mr. Shafi! Yes, it has, and I hope I will be part of the whole “journey” in Neuromarketing development! Go SalesBrain!
Monica, congratulations for this post. The event has set the benchmark for the Neuroscience and Neuromarketing industry.
Dear Monica. Great report. Easy to share. Must read for Neuromarketers. Tnx
Thank you, Mr. de Munnik! It was great meeting you in person, good luck in your work!
Fantastically comprehensive post – many thanks.
You’re welcome! I’m glad you enjoyed reading it!
Excelent report Mónica!
Congratulations.
Thank you!
Great work Monica! You really captured the experience of the Forum. Here’s to next year!
Thank you, Tim! And congratulations for your great work at the Forum, too! Good luck in following your dream! I am also looking forward to NMWF 2013!
Do someone know where can I study a masters on Neuromarketing?