Analysing applications of neuromarketing in efficacy of programmatic advertising

In this paper, there is exploration of the concept of neuromarketing as a newly developed strategy with economic potential deriving from human brain research. The central notion of the essay is that programmatic advertising can be used to better comprehend the idea of neuromarketing and its impact on consumers' decision-making. So neuromarketing involves the scientific observation of brainwave activity, eye tracking, and skin response to determine how people's brains react to advertisements and other brand-related communications. By studying the brain, these neuromarketing strategies can forecast how consumers will make decisions. The neuromarketing tactics' benefits and constraints are studied on a number of market input devices in the paper. The influence of various techniques of neuromarketing is studied from the available research studies and literature. In the recent years, the neuromarketing concept has been able to garner a lot of importance in its contribution to the marketing, advertising, and programmatic advertising has been immensely helped by the understanding of consumer decision making. The consumer behaviour has been able to be comprehended through neuromarketing techniques which are one of the key pillars of the purpose and running of programmatic advertising. A neuromarketing study shall be the helping hand for increasing customer base, market leadership, and converting them to loyal customers. It will help in programmatic advertising through the understanding of the advertiser with respect to the likes and wants of the customers and how consumer attention can be drawn. The consumer behaviour can be understood by the marketers in terms of how the consumers react to the advertising.     

Use it or lose it: purchase acceleration effects of time‐limited promotions

While researchers have examined the impact of retail promotions on purchase acceleration in the past, the distinction between time‐limited and time‐independent promotions has not been made in this context. In this paper, the authors report findings from two studies. In Study 1, it was found that promotions of short duration (time‐limited), such as store coupons, accelerate purchases, whereas promotions of longer duration (time‐independent), such as manufacturer's coupons, have no such impact. In Study 2, the impact of semantic cues was examined highlighting the time‐limited nature of promotions (such as ‘10 Hours Only Sale’), impact on purchase willingness, intent to search further for deals and attitudes towards the deal. Copyright © 2003 Henry Stewart Publications.     

Gamification and neuromarketing: A unified approach for improving user experience

Neuroscience and its offshoot as neuromarketing have helped marketers understand neuroscientific aspects of customers while gamification has helped them understand the psyche of consumers. Despite neuromarketing's many potential benefits to businesses, little academic work has been done on the field so far. Most studies have examined consumer shifts during and after pandemics without analyzing them from two critical perspectives: neuroscientific theories and psychology theories. As the two streams of knowledge lean on each other, their interdependence in the field of e-engagement needs exploration. The purpose of this study is to answer an important question – “How do marketers use gamification and neuromarketing to understand online engagement of consumers?”. We used a quantitative empirical research approach to assess the inter-relationship between neuromarketing and gamification. The study collected data from digital marketing strategists of retail firms to propose a theoretical framework for self-determination theory in successfully implementing new age technologies by plugging the cues of gamification and neuromarketing. The framework would be useful for retail firms to design digital marketing strategies for capturing the attention of consumers across different geographies. Findings indicated that, marketers are interested in neuromarketing for two main reasons: first, they think it can help them save money and improve their marketing plans, and second, they think that cutting-edge research techniques such as brain imaging can help them get more accurate findings.     

Neuromarketing Research Practices: Attitudes,Ethics, and Behavioral Intentions

As a new addition to the marketing research toolbox, neuromarketing science has given rise to a variety of questions relevant to consumer perceptions of this nascent area of investigation. Neuromarketing researchers are dependent on consumer involvement as research participants, and finding means to educate the public about neuromarketing is a priority for professionals working in the field. This article describes the results of two online questionnaire studies focused on the role of personal constructs presumed to underlie perceptions of neuromarketing research. The findings point to neuromarketing research knowledge, attitudes toward science, attitudes toward technology, and ethical ideology as important factors linked to neuromarketing research attitudes, perceptions of the ethicality of neuromarketing research, and willingness to participate in neuromarketing studies. We discuss the implications of our findings for educating the public about neuromarketing research and encouraging research participation, and we conclude by suggesting directions for future research.     

Form ‘defines’ function: Neural connectivity between aesthetic perception and product purchase decisions in an fMRI study

In the aesthetics literature, object beauty has been emphasized for its non‐instrumental benefits, in other words, beauty that is ‘rewarding’ in itself, without functional considerations. In the context of consumer products, this study examines the influence of aesthetic perceptions on purchase decisions based on integrating both reward (hedonic) and functional value attribution mechanisms. Brain connectivity analysis of functional magnetic resonance imaging (fMRI) data sheds light on the neural route for the influence of product beauty on purchase. Notably, a significant directional connectivity from brain networks mediating ‘aesthetic perception’ to ‘functional value’ to ‘purchase decision’ shows that the left Amygdala, an emotion‐related region of the aesthetic network, influences all five regions in the functional network, which then influences the purchase network of the brain, thus supporting the utilitarian goals of aesthetic appraisals and the Antonio Damasio's somatic/emotional marker hypothesis. Further, we find clear evidence that the reward (hedonic) network, which also influences the purchase network, receives information from the functional network of the brain, integrating both the non‐instrumental and instrumental value of the product. In other words, beauty in consumer products influences purchase decisions by evoking emotions that importantly define the functional value of products, in addition to their hedonic/reward value uncovered in previous literature. In light of the novel findings, the authors discuss important implications for marketing theory, methodology, and practice. Copyright © 2016 John Wiley & Sons, Ltd.     

Children's response to sales promotions and their impact on purchase behavior

Despite the growth in children's purchasing power, surprisingly little is known about how children respond to sales promotions. We conduct two experiments to address this issue. Study 1 shows that elementary-aged (second and fifth grade) children's purchase decisions are influenced by the presence of sales. Study 2 demonstrates that both age groups favor conceptually easier promotions, even when the sale is inferior. Additionally, we find that children have difficulty applying mathematical concepts to sales promotions, regardless of classroom mastery of the associated operations. Together, these results indicate that elementary-aged children routinely incorporate sales into purchase decisions, sometimes with suboptimal results.     

Effects of product portfolios and recommendation timing in the efficiency of personalized recommendation

Personalized recommendation has important implications in raising online shopping efficiency and increasing product sales. There has been wide interest in finding ways to provide more efficient personalized recommendations. Most existing studies focus on how to improve the accuracy and efficiency of the recommendation algorithms or are more concerned on ways to reduce perceived risks and thus increase consumer satisfaction. Unlike these studies, our study begins from the decision‐making process of consumers, using consumers' two‐stage decision‐making system and preference inconsistency theory as a basis, to reveal the mechanisms involved in consumers' acceptance of recommendations. This paper analyzes the effect of personalized recommendations from two angles, recommendation timing and product portfolio, tries to point out differences in consumer preferences between similar products and related products, and verifies that consumers demand diversity in the recommended content. The study analyzes differences in the acceptance of personalized recommendations between practical products and hedonic products and discovers that recommendations of hedonic products are more effective than that of practical products. Based on the research earlier, the study provides suggestions on how to better plan and operate a personalized recommendation system. Copyright © 2016 John Wiley & Sons, Ltd.     

The direct and interactive effects of store‐level promotions on impulse purchase: Moderating impact of category familiarity and normative influences

Marketing literature conceptually and empirically establishes the direct effects of different variables on impulse purchase. However, the simultaneous interactions between variables influencing impulse purchase are yet to be studied. This paper measures the direct effects of store‐level promotions, brand equity, and price consciousness and also examines the interactive effects of store‐level promotions and the moderating influence of category familiarity and normative influences. The results demonstrate the importance of simultaneous examination of interplay between different consumer and store‐level variables. Collectively, the results provide substantial segmentation opportunities for manufacturers of branded goods and retailers. Copyright © 2013 John Wiley & Sons, Ltd.     

How consumers respond to missing a quantity discount with multiple price breaks

This study investigates how consumers evaluate and respond to different discount schemes (i.e., one versus multiple price breaks) in the wake of a missed quantity discount. Two field experiments are conducted. The results demonstrate that promotions with multiple price breaks (e.g., 2 for 30% off and 3 for 40% off) will result in a higher likelihood of purchasing one item at the regular price than promotions with only a single price break (e.g., 2 for 30% off) when a quantity discount is missed. The results of Experiment 2 reveal that increasing the number of price breaks (i.e., from two to three) can strengthen the assimilation of the advertised regular price into consumers' internal reference price range when there is a greater interval between the two price breaks (e.g., 2 for 30% off, 5 for 40% off, and 8 for 50% off) and that subsequently raises consumers' purchase likelihood if they are not able to take advantage of the promotional price. Finally, the effect of the discount scheme on purchase likelihood is shown to be mediated by the internal reference price. These observations have important implications for retailers. Copyright © 2016 John Wiley & Sons, Ltd.     

睡眠剥夺与购物后悔：来自大规模个体层面数据的证据

睡眠剥夺正在成为人们面临的一种普遍问题,但是已有研究很少将睡眠剥夺与消费者行为联系起来。本文采用真实购物情境下的大规模消费者个体层面数据(N=1625472),通过建立计量经济学模型来研究睡眠剥夺与购物后悔的关系。结果表明,睡眠剥夺显著地增加了消费者的购物后悔倾向,具体在行为上表现为增加了商品的退货概率和加快了商品的退货速度。此外,商品的价格正向调节了睡眠剥夺对购物后悔的影响,而促销优惠金额的比例则负向调节了睡眠剥夺对购物后悔的影响。     

Learning by Collaborative and Individual‐Based Recommendation Agents

Intelligent recommendation systems can be based on 2 basic principles: collaborative filters and individual‐based agents. In this work we examine the learning function that results from these 2 general types of learning‐smart agents. There has been significant work on the predictive properties of each type, but no work has examined the patterns in their learning from feedback over repeated trials. Using simulations, we create clusters of “consumers” with heterogeneous utility functions and errorful reservation utility thresholds. The consumers go shopping with one of the designated smart agents, receive recommendations from the agents, and purchase products they like and reject ones they do not. Based on the purchase–no purchase behavior of the consumers, agents learn about the consumers and potentially improve the quality of their recommendations. We characterize learning curves by modified exponential functions with an intercept for percentage of recommendations accepted at Trial 0, an asymptotic rate of recommendation acceptance, and a rate at which learning moves from intercept to asymptote. We compare the learning of a baseline random recommendation agent, an individual‐based logistic‐regression agent, and two types of collaborative filters that rely on K‐mean clustering (popular in most commercial applications) and nearest‐neighbor algorithms. Compared to the collaborative filtering agents, the individual agent (a) learns more slowly, initially, but performs better in the long run when the environment is stable; (b) is less negatively affected by permanent changes in the consumer's utility function; and (c) is less adversely affected by error in the reservation threshold to which consumers compare a recommended product's utility. The K‐mean agent reaches a lower asymptote but approaches it faster, reflecting a surprising stickiness of target classifications after feedback from recommendations made under initial (incorrect) hypotheses.     

Help or hinder? When recommendation signage expands consideration sets and heightens decision difficulty

This research examines whether recommendation signage helps or hinders the consumer when faced with choosing from large product assortments. In spite of frequent usage and retailer intuition suggesting that providing recommendation signs (e.g., “Best Seller,” “Award Winner”) should help consumers in the choice process, we propose that signs can hinder choice for consumers with more developed preferences by adding to the complexity and difficulty of the decision process. In three experiments using horizontally differentiated products in multiple categories, we provide evidence that recommendation signs create preference conflict for consumers with more developed preferences, leading these consumers to form larger consideration sets and ultimately experience more difficulty from the decision-making process. In addition, we show that these effects are mitigated for consumers with less developed preferences and when the choice is from a small assortment. The results suggest that recommendation signage may not be an effective tool for aiding choice from large assortments; instead signage can exacerbate the difficulties associated with having too many choices, with implications on purchase quantity.     

Free Gift with Purchase: Promoting or Discounting the Brand?

Two experiments examine the process by which free gift promotions serve as a source of information about the underlying value of the product offered as a free gift. The value‐discounting hypothesis argues that by virtue of being offered as a free gift, products will be valued less as evinced by lower purchase intentions and a lower price that consumers are willing to pay for them. Conditions that inhibit the value‐discounting effect include the (a) presence of alternate price information to make judgments about the value of the gift, and (b) contextual information about the value of the promoted brand.     

Creating cluster‐specific purchase profiles from point‐of‐sale scanner data and geodemographic clusters: improving category management at a major US grocery chain

In the retail grocery industry, category management is the process of managing categories of products for greater profitability and customer value. Category management is a data‐driven process and, as a result, can benefit from point‐of‐sale (POS) scanner data. This paper describes the results of a one‐year project that shows how to use POS scanner data and geodemographic clusters to improve the practice of category management at Price Chopper, a large US grocery chain. The paper demonstrates how to merge POS scanner data with geodemographic clusters to create detailed purchase profiles that provide valuable information to category managers. It also discusses the trials and tribulations of using scanner data and provides several findings as implications (eg store‐specific promotions should be more effective than chain‐wide promotions for stores servicing a small number of geodemographic clusters with distinct shopping profiles) that supermarket managers can immediately use to improve existing promotional strategies. The paper's contents should be relevant to academicians and practitioners interested in improving the practice of category management in the UK, USA, Western Europe and Australia. Copyright © 2004 Henry Stewart Publications.     

The antecedents of anticipatory purchase: Reconciling the two routes to optimism

Consumers often behave optimistically, purchasing products that they are unable to use at the time of purchase, but anticipate being able to use in the future. This research investigates such anticipatory purchase behavior, and demonstrates that optimism exerts its influence on anticipatory purchase via two distinct routes. One is driven by the perceived ease of the process required to achieve a given outcome and prevails when sufficient cognitive resources are available, while the other is driven directly by the perceived favorability of the outcome itself and holds when cognitive resources are constrained. Within each route, the focus of thought (process vs. outcome-focus) moderates the influence of optimism, and the two routes converge on enhanced motivation. Multiple experiments provide support for predictions derived from this framework, illuminating the substantive domain of anticipatory purchasing and providing theoretical insights into the nature of optimism.     

预期性思考、自我调节导向与非计划购买

当消费者对非计划购买产生犹豫时,营销者应如何引导他们的购买行为？本文通过准实验与控制实验的方法探究该问题。研究结果显示：（1）营销者可以通过设计预期欣喜和预期后悔信息提高其非计划购买意向;（2）但是预期性思考的有效性还受到消费者自我调节导向的影响：预期欣喜对提高趋利导向消费者的非计划购买意向较有效,预期后悔对提高避害导向消费者的非计划购买意向较有效;（3）预期欣喜和预期后悔通过影响消费者对购买合理性的判断而影响他们的非计划购买意向。     

Extending overjustification: the effect of perceived reward-giver intention on response to rewards

The perceived intention model incorporates a new moderator, beliefs about reward-giver intention, into the overjustification paradigm. In 2 simulated shopping studies featuring products paired with promotional rewards, consumers who believed the marketer was promotion focused (reward used to encourage purchase) reported lower purchase intentions and brand attitudes for promoted products after promotion, whereas consumers who believed the marketer was reward focused (promotion used to distribute the reward) showed no attitude change. Promotion-focus beliefs lowered attitudes by heightening the contingency between the promotion and purchase and thereby increasing the perceived causal role of the reward. This effect was contingent on initial behavior--postpromotion attitude change occurred for consumers who actively engaged in product decisions but not for consumers who passively observed the choice sets.     

Comparison of the SERIOL and SOLAR theories of letter-position encoding

There has been increasing interest in the question of how the brain encodes the order of letters in a written word. This problem is of practical and theoretical interest, so it is important to distinguish between competing computational models. This article compares the SERIOL and SOLAR theories on their biological plausibility and ability to explain experimental results at the orthographic and lexical levels.     

Does online ticket booking system make people better off? An empirical study on railway service

The Spring Festival Travel Rush (SFTR) as the largest annual migration on earth has been a serious challenge for the railway system in China. In order to reduce the difficulty of ticket purchase, Chinese government has adopted information and communications technology (ICT) include online ticket booking system so that more ticket channels are available for passengers to choose from. However, whether the online ticket booking system in transportation can improve passengers’ well-being with the Spring Festival experience remains unknown. In this study, a structural equation model is developed to investigate the impact of online ticket booking system, socioeconomic status and perceived control on passengers’ well-being during SFTR. Results show that online ticket booking system has a direct positive influence on passengers’ well-being. In addition, the application of online ticket booking system and perceived control play an important mediating role between socioeconomic status and passengers’ well-being of Spring Festival. In particular, online ticket booking system had made it easier for people of lower socioeconomic status to purchase tickets and thus significantly raised their well-being.     

The comparative mind-set: from animal comparisons to increased purchase intentions

Stimulating people to state a preference for one of two commercial products can increase their willingness to purchase not only one of these products, but also other products in a totally unrelated domain. However, willingness to make a purchase in a given domain (e.g., computers) can also be increased by asking individuals (a) to indicate which of two stimuli in a different domain (e.g., vacation packages) they dislike more, (b) to compare the relative attractiveness of wild animals, (c) to compare the animals with respect to physical attributes, and (d) to estimate how similar one object is to another. Moreover, the effects generalize to decisions about dating partners, as well as consumer products. In short, making any type of comparative judgment appears likely to give rise to a comparative-judgment mind-set and, therefore, to influence decisions in subsequent situations.