Neuromarketing: The Capitalism Catalyst

” Neuromarketing is the process of researching the brain patterns of consumers to reveal their responses to particular advertisements and products before developing new advertising campaigns and branding techniques.”

dictionary.com

Time is money. Like it or not, this is the universal truth in the age of consumerism. No action is for mere face value, everything is an investment. Watching a movie with friends? You are investing time in your social life. Want a new laptop? The first thought that pops to your mind is, can my wallet/purse take the strain? We borrow time we don’t have to spend money that’s constantly flowing to plug our needs and wants, sometimes straying more towards the latter. When there’s such a flux and precarious balance in place, then science can’t be far behind, can it? Consumer choices are all about manufactured coincidence nowadays. In that regard, the world of neuromarketing involves winning the game even before a single card is played.

Mind Over Market

Remember the last annoying YouTube ad that popped up on your screen? Did it bring an uncanny parallel to something that was on your mind of late? Rest assured, it’s not a chance encounter. The process of making a sale begins even before you witness the product these days. In other words, it isn’t about product value anymore. It’s about consumer value. How can we leverage this particular audience to our brand? How many eyeballs can we grab with this campaign? Marketing campaigns are tailor-made with the audience’s mindset as a prominent factor. When we speak of the mind, it’s impossible to not include psychology in the grand scheme of things. Branding and marketing have evolved from the hard sell into the smart sell. Let’s try and decipher some of the basics in the field to better comprehend our place in 21st-century consumerism.

First Pick: Anchoring & Neuromarketing

This technique is an old favorite of sales outlets. Anchoring is a neuromarketing tactic that plays on your ability to rely on the first piece of information you receive. That info snippet becomes the benchmark for every subsequent byte you receive, and you judge it based on the initial information. For instance, let’s say you’re used to paying ₹649/- per month on your Netflix plan. The introduction of a mobile-only plan at a discount price of ₹199/- per month might seem like an impressive deal to you. However, to the person who pays ₹129/- per month for full Amazon Prime benefits, this is a laughable proposition.

Brands worldwide leverage your existing perception of value for money to pitch sales and discounts that will get your attention. Brands aren’t content with their own lot either. Their focus is always on the niche leader and how they can leverage their strategies to one-up the competition. Anchoring works both ways in business!

The Numbers Game

Middle-class eyes are hardwired to check the price tag first and foremost. Sellers know this and exploit it to the hilt. Our brains perceive numbers in a specific manner, and it doesn’t take rocket scientists to figure it out. Take a glance at the below tactics and see if you can recall any examples you’ve seen in recent times.

• Percentage Over Price: Which sounds better, 20% off ₹50/- or ₹10 off ₹50/-? They’re both the same, but our minds think bigger numbers equal better deals.
• Rounding Down: ₹299/- somehow sounds a lot lesser than ₹300/-, doesn’t it?
• Price Comparisons: Retail Price vs. OUR Price. A classic tactic!
• Focus on Prices Over Time: Dread it, run from it, EMI arrives all the same.

Bait and Switch

Everyone loves a free trial on premium services. Any platform worth their salt has one these days, ranging from one week to one month. Why are they popping up in droves, however? Neuromarketing offers an answer. We hate having our “possessions” taken from us. Free trials are the textbook case of getting us hooked on value and snatching it just when we hit the point of no return. Different companies experiment with the various parameters in this equation. More often than not, it’s the length of the free trial brands that’s up for experimentation. Keeping us on the hook just long enough for us to get accustomed to the luxury… and then yanking it from our hands, leaving us grasping air. An underhanded tactic, but in this cut-throat world, anything goes.

Placeholder Policy

Isn’t it much easier to put value into perspective when there’s a clear reference point? Marketing agencies are a step ahead in this aspect as well. The infamous decoy effect is among the most effective neuromarketing tactics there is. The effect in particular refers to the tendency of consumers to change their preferences based on the introduction of an option that is closer to one of the other options available. To elucidate matters, let’s have a look at an example.

Let’s assume that you have two recharge plans available to you. One gives you 2 days of talk time at ₹100/-, while the other gives you 5 days of talk time at ₹200/-. Most would opt for the first option with moderate value at lower rates. Now, let’s throw in another option: 3 days of talk time at ₹175/-. For just ₹25/- more, you’re getting 2 full days of extra talk time, right? Congratulations, you’ve been played by the decoy effect. The decoy option is a mere ruse to nudge you towards the most expensive option. Buyer beware!

Me and Hue

Any mention of neuromarketing would be incomplete without talking about color psychology. Our bodies are programmed to have intrinsic reactions to colors around us. Orange and light blue evoke a modern vibe. No surprise that the Nike Swoosh is bright orange! White and green are reassuring colors that build trust in the user. Discussing the full spectrum of color and its effect on perception is a topic for another article, so watch this space to know more! On the subject of knowing more, brands use color preferences among the target demographic to devise new strategies for pitching their products. Color is the silent motivator that influences consumer decisions more than you may realize. Don’t try and control it, it’s only human!

All these tactics are but the tip of the iceberg of how neuromarketing molds your mind as a customer. Being in the loop about these techniques is a step in the right direction towards being an informed consumer. Can you recall any such marketing marvels that you’ve come across of late? Let me know in the comments, and don’t forget to voice your thoughts here!