Neuroeconomic and Neuromarketing Research – Framework for future Management research directions for PhD

Introduction 

“Neuromarketing as a topic of research may simply be concerned with the application of neuro scientific approaches to examine and comprehend human behaviour in connection to marketers and marketing exchanges,” according to Lee and colleagues. The goal of neuromarketing is to comprehend the consumer’s thoughts and behaviours. The purpose of “neuromarketing,” sometimes known as “consumer neuroscience,” is to use neuroscientific methodologies to marketing-related challenges in order to bring findings from neurology to consumer behaviour research (Baskaran et al., 2021).

The objectives of neuromarketing studies aim to collect objective knowledge on the inner workings of customers’ brains without relying on subjective reports, which have long been the backbone of marketing research. Neuromarketers’ choice of modality will be based on a priori ideas and pilot research regarding important brain regions and activation patterns that may be used to predict real behaviour (Takemura, 2021).

Figure 1: Theoretical Framework for improving value added marketing performance

Source : (Md.Hafez, 2020)

Neuroscientific components

Three major components can be used to define neuroscientific investigation: localization, connection, and representation are all terms used to describe how something is located.

Localization is the first component, and it investigates whether areas of the brain are required or adequate for specific behaviours and skills. The second component, Connectivity, looks at how various brain regions collaborate to interpret information. For example, the V4 area of the occipital lobe is responsible for processing particular types of visual inputs, while elements of the prefrontal cortex are in charge of attention direction and concentrating (Oliveira et al., 2022).

The fourth component, Representation, looks at the codes that data is stored and interpreted in the brain, as well as attempts to “read out” or interpret those codes. Understanding brain representation is critical for a variety of applied neuroscience projects, including reading aloud people’s thoughts and experiences in real time to measure their mental states while target stimuli (e.g. commercials, goods, etc.) develop around them (Glushchenko, 2021).

 Related work

The authors (Karpova & Rozhkov, 2019) reviewed that there are notable differences between the thesis’s early plans and the final structure. After a thorough literature review, the initial idea of focusing on the full neuroeconomics and implementing a worldwide survey to discover and differentiate region-specific consumer behaviours ceded to a focus on neuromarketing in tandem with brand management.

Researchers  (Rüschendorf, 2020) studied that this shift was sparked by the discipline of neuroeconomics’ hitherto underappreciated extent. The literature search was the most difficult component of effective on the theoretical component. However, it turns out that the bulk of textbooks are only available in e-book format in university libraries, and newer versions are only accessible as bound versions on site. As a consequence, the hypothesis provided in this work is mostly based on prior studies.

Although the work’s trustworthiness the other researchers (Varona Aramburu et al., 2019) reviewed to guarantee that the information reprinted is still current, it can’t be excluded out that in such a fast-paced and dynamic subject as neuromarketing and neuroeconomics, new insights have already been achieved that update or supplement portions of this work. Nonetheless, the legitimacy of the argument is ensured by the fact that all claims are based on well-founded sources from reputable experts. The techniques and concepts offered in this thesis’ theoretical section are frequently debated.

One charge raised against marketing is that brand promotion manipulates consumers on an unconscious level, resulting in the creation of new desires. Neuroscientific results, on the other hand, have revealed that human intentions are biologically determined.

 Future of Neuroeconomic and Neuromarketing Research

The researcher’s (Swg & Nuremberg, 2020) reviewed that neuroscience and consumer behaviour are two areas that are exploring the human brain for marketing strategy signals. In the field of consumer behaviour, scientists are employing standard psychological testing techniques in the hopes of better understanding how individuals (consumers) make a decision and what variables impact those decisions. In this sense, marketing does not generate fake demands, but rather demonstrates many methods to meet such needs. Furthermore, a thorough understanding of consumer preferences aids in the development of goods that are tailored to their needs.

In this study, authors (Baron et al., 2019) stated that the charge of generalisation in relation to neuromarketing ideas cannot be completely rejected. The design of the framework and the collection of test subjects were the most difficult aspects of the empirical element. While a quantitative expert interview was first planned, it looked that effectively contacting matching experts would be challenging. As a result, instead of a quantitative case study, a qualitative research strategy on the combination of theory principles was conducted.

This proved to be a crucial and vital component, particularly for the quantitative survey’s implementation, since the case study gave a better knowledge of the theory that the survey could pick up on. We can see that Neuromarketing’s strength is that it can get into subconscious prejudices that standard advertising approaches like focus groups in advanced technology. Advanced neuroimaging techniques aim to decrease marketing failures and boost marketing success in the future.

Reference

Baron, D., Bolivar, H., Diaz, C. & Garcia, O. 2019. Neuro-economic Analysis of Games Theory Applied to E-Commerce. In: 2019 Congreso Internacional de Innovación y Tendencias en Ingenieria (CONIITI ). October 2019, IEEE, pp. 1–6.

Baskaran, S., Mahadi, N. & Abd Rasid, S.Z. 2021. Multiple intelligence and entrepreneurial opportunity recognition – a failsafe approach of neuromarketing. Journal of Research in Marketing and Entrepreneurship. (23)2,. pp. 318–338.

Glushchenko, V. V 2021. The development of neurotechnologies in the period of the sixth technological order. International Journal of Engineering Scientific Technologies. (5)2,. pp. 45–57.

Karpova, S. & Rozhkov, I. 2019. Research on the Application of Neuromarketing Technologies on Financial Markets. pp. 126–129.

Md.Hafez 2020. Neuromarketing: A New Avatar in Branding and Advertisement. Pacific B usiness R eview I nternational.

Oliveira, P.M., Guerreiro, J. & Rita, P. 2022. Neuroscience research in consumer behavior: A review and future research agenda. International Journal of Consumer Studies.

Rüschendorf, J. 2020. Neuromarketing: Insights into the Consumer Brain and its Adaption to Brand Management.

Swg, V. & Nuremberg, G. 2020. Economics , Business and Social Sciences.

Takemura, K. 2021. Decision-Making Process and Neuroeconomics. In: Behavioral Decision Theory. Singapore: Springer Singapore, pp. 193–207.

Varona Aramburu, D., Pérez Escolar, M. & Sánchez Muñoz, G. 2019. Teoría del framing y protoperiodismo. Estudio de los atributos asociados a la figura de Magallanes en los diarios de Pigafetta y Francisco Albo. Latina, Revista de Comunicación. 74,. pp. 734–747.