Pros and Cons of Neuromarketing

PROS AND CONS OF NEUROMARKETING 6

Prosand Cons of Neuromarketing

Prosand Cons of Neuromarketing

Oneof themajorpointsof concernformarketers, scholarsandmanagersis understandingconsumerbehavior.After manyyearsof studiesandmassivedisappointmentfrom ancientmethods,newemergingtechniquesof understandingconsumerbehaviorhavebeendeveloped.Themostpopularapproachhas beentheneuromarketing that coalescetwo branchesof sciencemarketingandneuroscience (Krajnovic,Sikiric &amp Jasic, 2012). Neuromarketing is a newturfofmarketingstudythat examinesconsumercognitive responseto differentmarketingstimuli.Thistechniqueemploystechnologies suchas eye-tracking techniqueandneuroimagingtechniquesto assesschangesin thehumanbrainactivityto augmentour knowledgeofhowconsumersmakedecisionandspecificpartof braininvolvedin decisionmakingin relationto commercialtradeandmarkets(Eser,Isin &ampTolon, 2011).Itis evidentthatthisnewtechniquespromisesto conferimmensebenefitsto managers,markersandconsumersbutunfortunatelyithas sparked hugecontroversy.His papershall seekto exploretheadvantagesandlimitationsof neuromarketing as a marketresearchtechniquethrougha thoroughevaluation of availableliterature.

Advantages

Oneof the mainbenefits ofneuromarketing can enablefirms to knowthe properfeedback andreaction ofcustomersto the itemforconsumptionlaunched inthe market,a feat thatmay not be possibleusing othermarketingresearchmethods (Ariely&amp Berns, 2011).Using brainscanning technologies marketers can be ableto understandwhatpropels customersto likecertainproductsand acquirethe realknowledgeof theconsumerperspicacitypower.

Itis evidentthat themodernmarket isdominatedand as suchneuromarketing will assistmany firmsto have aprofound insightinto themodernconsumer’sway ofthinkingwhile inthe marketand be in aposition tocater fortheir needsas best ascan be possible (Krajnovic,Sikiric &amp Jasic, 2012).Neuromarketingis a comprehensiveapproachthat shall createstrongerand betterlink andunderstandingbetween demandand supply.The mostfundamentaladvantageof neuromarketing highlighted by numerousauthors isthecapacity ofthistechniqueto detectconcealedinformation (Ariely&amp Berns, 2011). Wilson et al. (2008)allegedthat theapplicationof neuromarketing could goa long wayin helpingconsumersandmarketingexperts tounderstandone anotherin a betterway.Consumersare likelyto understandbetter whattypes andkind ofproductsthey needand want,which will resultin awin-win scenariofor boththeproducerand theconsumer (Krajnovic,Sikiric &amp Jasic, 2012).

Leeet al. (2007) statesthat theuse of thistechniqueis not onlylimited tounderstandcustomerbehaviorand lookingfor waysthroughwhich a brandcan be moreattractiveto consumersbut canalso serveas a mechanismto reducethe useof harmfulsubstancesuch ascigarettes (Krajnovic,Sikiric &amp Jasic, 2012).Researchhas shownthat thewarningssign oncigarettepackets haslittleeffect onsmokers andreducingsmoking. Infactresearchpoint outthat signssuch assmokingkills stimulatethe portionof thebrain thatreferred toas “pointdesire”that ineffectswitch on whenat the bodyneedssomething suchgamblingandcigarette.This meansthat suchsigns playno rolein reducingsmoking butin actualsenseserves toincrease tobacco use.Nonetheless,with neuromarketing itwould be possibleto knowexactlywhat shouldbe includedin thepackets ofsuchproducts toreducetheir consumption (Ariely&amp Berns, 2011).

Disadvantages

Manyscholarshave statedthatneuromarketing has numerousdisadvantagesthat makefirms should considerbefore theyemploy it.Schull (2008) indicatesthat theremanyscientistswho areagainst theentire ideaof neuromarketing on thebasis thatany factorthat has nodirectimplicationon thequality ofa productshould not be appliedto influencetheconsumers (Ariely&amp Berns, 2011).Theyemphasizethat buyersshould be influencedto purchasea productexclusivelyby accentuatingits quality.In addition,otherscholarssuch asTouhami (2008) haveindicatedthat thetechniquesand devicesemployed toscan thehumanbrains suchas fMRI are extremelynoisy andclaustrophobic (Eser, Isin&ampTolon, 2011). Thetestingprocedureis alsoverycumbersomesince firms haveto getpermissionfrom consumersbefore theyconduct anyscan. Also,each andeverycustomerrespondsuniquely to differentstimuli andthereforeit is notpossible tocreate astandardpattern fora givenmarketsegment.

Otherscholars’state themainadvantagecited bymanyproponentsof neuromarketing (thatit canuncoverhiddeninformation)cannot be ascertainedbecausevery littleis actuallyknownrelating tothe linkbetween theactivitiesof thebrain andexpressedpreference (Ariely&amp Berns, 2011).Otherscholarshave statedthatanalysis ofthe neuroactivity a fewminutesbefore a consumermadepurchasedecisioncannot be an excellentindicatorof rewardorsatisfactionat themoment ofbuying.Moreover,scholarsopposed toneuromarketing questionthe ROI ofthistechniquein relationto othermarketingresearchapproaches (Ariely&amp Berns, 2011). Thecost ofacquiringone scanning machineis out of reachof manysmall andmediumfirms, andeven insituationswherecompaniescan affordthescanning devicesthe returnon investmentwhich is not justifiable. Researchindicatesthat thecost ofconductinga singlebrain scanon a consumeris over $500 per hour (Ariely&amp Berns, 2011).

Finallymanyindividualsare worriedabout theethicalconcernsraised bythis newtechniqueof marketresearch.Lee et al.(2007) claimthat manyindividualswill be concerned about gatheringinformationwhich shall be usedto create amarketstrategythat would be difficultto refuseoroverlook.There are alsoconcernsabout thebrainscanning techniquesrelating toinfringingon theprivacy ofa person toan unacceptable level (Ariely &amp Berns, 2011).

Conclusion

Itcan be statedthat inspite ofthere beingdifferencebetween proponentsandopponentsof neuromarketing, there is an generalacceptancethatneuromarketing can bringmassivechanges intheperceptionof marketingand assistfirms to understandthe purposeserved byemotions indecisionmaking.Using neuromarketing marketers cab be in position to developeffectivemethod ofinfluencingconsumeremotions toreinforceloyalty andtrust to agivenbrand. ).It isevidentthat thisnewtechniquepromises toconferimmensebenefits tomanagers,markers andconsumersbutunfortunatelyit hassparked hugecontroversydue to the high cost of scanning machines and ethical concernsrelating to privacy.

References

Ariely,D.and Berns, S.G. (2011). Neuromarketing:the hope and hype of neuroimaging in business.National Institute of Health. Nat Rev Neurosci. 2010 Apr 11(4):284–292. Retrieved from:http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2875927/

Eser,Z.,Isin, B.F. and Tolon,M. (2011).Perceptions of Marketing Academics, Neurologists, and MarketingProfessionals about Neuromarketing.Journal of Marketing Management Vol 27, No.7-8: 854-868.

Krajnovic,A., Sikiric, D. and Jasic,D. (2012). Neuromarketingand Customers’ Free Will. Managing Transformation and Creativity.Budapest