1. HOW CUSTOMERS THINK CHAPTER 2: A VOYAGE TO NEW FRONTIERS Presented by: Peter Atmali Michael Miyagishima

2. Introduction Purpose: To understand the emerging paradigm for consumer research Means: Appreciating the power and complexity of the human brain

3. Understanding the Human Brain Contains 100 billion – 1 trillion neurons Neuron: The cellular unit of the central and peripheral nervous systems The cellular unit of the central and peripheral nervous systems Cells of the nervous system Cells of the nervous system

4. Cerebral Cortex The surface of the brain Houses 30 billion neurons Creates neural circuits that stimulate conscious and unconscious thought and behavior Responsible for perception, emotion, thought, and planning

5. Functional Divisions of Cerebral Cortex Prefrontal Cortex: problem solving, emotion, complex thought

6. Introduction to the New Paradigm Integrated Mind-Brain-Body-Society Each component influenced each other Example: Traffic Jam

7. Brain-Mind-Body-Society System Used to study consumer needs, satisfaction, and loyalty Consequences of treating each component separately: Elicit wrong information Elicit wrong information Interpret information incorrectly Interpret information incorrectly Develop products and services that underwhelm the marketplace Develop products and services that underwhelm the marketplace

8. Brain-Mind-Body-Society System Anne Harrington: “[H]uman beings are… like sponges.” The outside world strongly influence the thoughts, abilities, and emotional responses

9. The Mind of the Market Marketers and consumers influence one another on both a conscious and unconscious level Marketers have failed to tap into the unconscious level where pyramid dynamics are most active

10. The Mind of the Market Illustration: A man who drives a sports car Internal desires and early influences “Outer” marketing activities evokes “inner world” of consumers If consumer’s inner desire can connect with the message of the ad, then we have a winner!

11. The New Paradigm Thought is based on images, not words Most communication is nonverbal Metaphor is central to thought Emotion’s partnership with reason Most thought, emotion, and learning occur without awareness The importance of socially shared mental models The fragile power of memory

12. Thought is Based on Images, Not Words Thought occurs through neural activity Stimuli takes many forms: Stimuli takes many forms:Sight Sound, Verbal TouchSmell Moods and Emotions Different kinds of images are linked to one another and occur together

13. Thought is Based on Images, Not Words Verbal language is not the same as thought Talk is slow Talk is slow Cognition shapes language Verbal terms are developed to express thoughts Verbal terms are developed to express thoughts Different cultures emphasize different thoughts Different cultures emphasize different thoughts Expressions not readily translated in other languages View “language” as multimodal

14. Most Communication is Nonverbal Most human communication is nonverbal Gestures, body posture, distance Gestures, body posture, distance Eye contact, gaze, pupil dilation Eye contact, gaze, pupil dilation Visual cues - Apparel and adornments Visual cues - Apparel and adornments Paralanguage – tone and manner of speech Interpreting paralanguage is important Mismatch between ways consumers experience/think and methods marketers use to collect information

15. Metaphor is Central to Thought Help us interpret what we perceive in the world around us Helps bring important - but unconscious- thoughts and feelings to the surface Influence on consumers decision making Influence on consumers decision making Reveal “embodied cognition” – referencing of sensory and motor systems to express thinking

16. Emotion’s Partnership with Reason Most market research biased toward reason and away from emotion Know importance of emotions (espoused theory), but rely on reasons form market research (theory-in-use) Reason and emotion depend on one another for success To be rational means also to be emotional To be rational means also to be emotional

17. Most Thought, Emotion, and Learning Occur without Awareness Consciousness is the end result of a system processed in largely unconscious ways “Tip of the iceberg” “Tip of the iceberg” Inductive and deductive thinking skills Inductive and deductive thinking skills Synthesizes existing “data” to produce conscious thoughts Challenge in accessing the unconscious data Use metaphors Use metaphors

18. The Importance of Socially Shared Mental Models Sets of connected neuronal groups constitute mental models (scripts / schema) Mental models help us interpret stimuli Which information to attend to Which information to attend to What to do with information What to do with information Consensus maps – shared features of mental models Most important set of insights on consumer Most important set of insights on consumer

19. The Fragile Power of Memory Not a snapshot of past experience A creative product of our encounters, beliefs, and plans Develops at a preconscious level Develops at a preconscious level Reconstructed each time it’s recalled Reconstructed each time it’s recalled Marketing is a major source of influence on what consumers recall Memory is story-based

20. A Voyage to New Frontiers Insights about human behavior reveals the outlines of a new way of understanding consumers’ thoughts and behavior Consumers’ unconscious minds contain valuable information to marketing managers Key is to uncover this information