Decision Making and Neuromarketing Presented by: Megan Norby Warren Mui

What is Neuromarketing? Neuromarketing: uses functional magnetic resonance imaging, a brain-scanning device that tracks blood flow as we perform mental tasks Marketers measure consumers’ reactions to movie trailers, choices about automobiles, the appeal of a pretty face, and loyalty to specific brands

Why Expensive Wine Tastes Better Studied subjects’ brain activity while they consumed wine Studied subjects’ brain activity while they consumed wine Marketing can change how people value goods! Subjects were told how expensive each wine was before consuming it Subjects were told how expensive each wine was before consuming it Subjects reported actually experiencing a tastier wine Subjects reported actually experiencing a tastier wine

Importance of Product Positioning Price is an important part of the experience for a premium product/ luxury brand! Experiential perspective: consumers buy based on totality of product’s appeal Heuristics: mental rules-of-thumb that lead to a speedy decision Product Positioning: convincing consumers that a product should be considered within a given category

Perception Becomes Reality  Red Bull example Self-fulfilling prophecy: we see what we are looking for… …almost as if we are tricking ourselves/ talking ourselves into what the value of a product is tricking ourselvestricking ourselves

Nike Foamposite Galaxy Nike Foamposite Galaxy

Lucky Strike “It’s Toasted” It’s ToastedIt’s Toasted

Questions or Comments?

References (2008, January 16). Why Expensive Wine Tastes Better. Retrieved February 15, From Neuromarketing website. why-expensive-wine-tastes-better.htm