HOW CUSTOMERS HOW CUSTOMERS THINKTHINK

CHAPTER 2: A VOYAGE TO CHAPTER 2: A VOYAGE TO NEW FRONTIERSNEW FRONTIERS

Presented by:Presented by:

Peter AtmaliPeter Atmali

Michael MiyagishimaMichael Miyagishima

IntroductionIntroduction

Purpose: To understand the emerging paradigm Purpose: To understand the emerging paradigm for consumer researchfor consumer research

Means: Appreciating the power and complexity Means: Appreciating the power and complexity of the human brainof the human brain

Understanding the Human BrainUnderstanding the Human Brain

Contains 100 billion – Contains 100 billion – 1 trillion neurons1 trillion neurons

Neuron:Neuron: The cellular unit of the The cellular unit of the

central and peripheral central and peripheral nervous systemsnervous systems

Cells of the nervous Cells of the nervous systemsystem

Cerebral CortexCerebral Cortex

The surface of the brainThe surface of the brain

Houses 30 billion neuronsHouses 30 billion neurons

Creates neural circuits that Creates neural circuits that stimulate conscious and stimulate conscious and unconscious thought and unconscious thought and behaviorbehavior

Responsible for perception, Responsible for perception, emotion, thought, and planningemotion, thought, and planning

Functional Divisions of Cerebral Functional Divisions of Cerebral CortexCortex

Prefrontal Cortex: problem solving, emotion, Prefrontal Cortex: problem solving, emotion, complex thoughtcomplex thought

Introduction to the New ParadigmIntroduction to the New Paradigm

Integrated Mind-Brain-Body-SocietyIntegrated Mind-Brain-Body-Society

Each component influenced each otherEach component influenced each other

Example: Traffic JamExample: Traffic Jam

Brain-Mind-Body-Society SystemBrain-Mind-Body-Society System

Used to study consumer needs, Used to study consumer needs, satisfaction, and loyaltysatisfaction, and loyalty

Consequences of treating each Consequences of treating each component separately:component separately: Elicit wrong informationElicit wrong information Interpret information incorrectlyInterpret information incorrectly Develop products and services that Develop products and services that

underwhelm the marketplaceunderwhelm the marketplace

Brain-Mind-Body-Society SystemBrain-Mind-Body-Society System

Anne Harrington: “[H]uman beings are… Anne Harrington: “[H]uman beings are… like sponges.”like sponges.”

The outside world strongly influence the The outside world strongly influence the thoughts, abilities, and emotional thoughts, abilities, and emotional responsesresponses

The Mind of the MarketThe Mind of the Market

Marketers and consumers influence one another Marketers and consumers influence one another on both a conscious and unconscious levelon both a conscious and unconscious level

Marketers have failed to tap into the unconscious Marketers have failed to tap into the unconscious level where pyramid dynamics are most activelevel where pyramid dynamics are most active

The Mind of the MarketThe Mind of the Market

Illustration: A man who drives a sports carIllustration: A man who drives a sports car

Internal desires and early influencesInternal desires and early influences

““Outer” marketing activities evokes “inner Outer” marketing activities evokes “inner world” of consumersworld” of consumers

If consumer’s inner desire can connect If consumer’s inner desire can connect with the message of the ad, then we have with the message of the ad, then we have a winner!a winner!

The New ParadigmThe New Paradigm

Thought is based on images, not wordsThought is based on images, not words

Most communication is nonverbalMost communication is nonverbal

Metaphor is central to thoughtMetaphor is central to thought

Emotion’s partnership with reasonEmotion’s partnership with reason

Most thought, emotion, and learning occur Most thought, emotion, and learning occur without awarenesswithout awareness

The importance of socially shared mental The importance of socially shared mental modelsmodels

The fragile power of memoryThe fragile power of memory

Thought is Based on Images, Not Thought is Based on Images, Not WordsWords

Thought occurs through neural activityThought occurs through neural activity Stimuli takes many forms:Stimuli takes many forms:

SightSightSound, VerbalSound, VerbalTouchTouchSmellSmellMoods and EmotionsMoods and Emotions

Different kinds of images are linked to one Different kinds of images are linked to one another and occur togetheranother and occur together

Thought is Based on Images, Not WordsThought is Based on Images, Not Words

Verbal language is not the same as thoughtVerbal language is not the same as thought Talk is slowTalk is slow

Cognition shapes languageCognition shapes language Verbal terms are developed to express thoughtsVerbal terms are developed to express thoughts Different cultures emphasize different thoughtsDifferent cultures emphasize different thoughts

Expressions not readily translated in other languagesExpressions not readily translated in other languages

View “language” as multimodalView “language” as multimodal

Most Communication is Most Communication is NonverbalNonverbal

Most human communication is nonverbalMost human communication is nonverbal Gestures, body posture, distanceGestures, body posture, distance Eye contact, gaze, pupil dilationEye contact, gaze, pupil dilation Visual cues - Apparel and adornmentsVisual cues - Apparel and adornments

Paralanguage – tone and manner of speechParalanguage – tone and manner of speechInterpreting paralanguage is importantInterpreting paralanguage is importantMismatch between ways consumers Mismatch between ways consumers experience/think and methods marketers use to experience/think and methods marketers use to collect informationcollect information

Metaphor is Central to ThoughtMetaphor is Central to Thought

Help us interpret what we perceive in the Help us interpret what we perceive in the world around usworld around usHelps bring important - but unconscious- Helps bring important - but unconscious- thoughts and feelings to the surfacethoughts and feelings to the surface Influence on consumers decision makingInfluence on consumers decision making

Reveal “embodied cognition” – referencing Reveal “embodied cognition” – referencing of sensory and motor systems to express of sensory and motor systems to express thinkingthinking

Emotion’s Partnership with Emotion’s Partnership with ReasonReason

Most market research biased toward Most market research biased toward reason and away from emotionreason and away from emotionKnow importance of emotions (espoused Know importance of emotions (espoused theory), but rely on reasons form market theory), but rely on reasons form market research (theory-in-use)research (theory-in-use)Reason and emotion depend on one Reason and emotion depend on one another for successanother for success To be rational means also to be emotionalTo be rational means also to be emotional

Most Thought, Emotion, and Most Thought, Emotion, and Learning Occur without AwarenessLearning Occur without Awareness

Consciousness is the end result of a system Consciousness is the end result of a system processed in largely unconscious waysprocessed in largely unconscious ways ““Tip of the iceberg”Tip of the iceberg” Inductive and deductive thinking skillsInductive and deductive thinking skills

Synthesizes existing “data” to produce conscious Synthesizes existing “data” to produce conscious thoughtsthoughts

Challenge in accessing the unconscious Challenge in accessing the unconscious datadata Use metaphorsUse metaphors

The Importance of Socially The Importance of Socially Shared Mental ModelsShared Mental Models

Sets of connected neuronal groups Sets of connected neuronal groups constitute mental models (scripts / constitute mental models (scripts / schema)schema)Mental models help us interpret stimuliMental models help us interpret stimuli Which information to attend toWhich information to attend to What to do with informationWhat to do with information

Consensus maps – shared features of Consensus maps – shared features of mental modelsmental models Most important set of insights on consumerMost important set of insights on consumer

The Fragile Power of MemoryThe Fragile Power of Memory

Not a snapshot of past experienceNot a snapshot of past experienceA creative product of our encounters, A creative product of our encounters, beliefs, and plansbeliefs, and plans Develops at a preconscious levelDevelops at a preconscious level Reconstructed each time it’s recalledReconstructed each time it’s recalled

Marketing is a major source of influence Marketing is a major source of influence on what consumers recallon what consumers recallMemory is story-basedMemory is story-based

A Voyage to New FrontiersA Voyage to New Frontiers

Insights about human behavior reveals the Insights about human behavior reveals the outlines of a new way of understanding outlines of a new way of understanding consumers’ thoughts and behaviorconsumers’ thoughts and behavior

Consumers’ unconscious minds contain Consumers’ unconscious minds contain valuable information to marketing valuable information to marketing managersmanagers

Key is to uncover this informationKey is to uncover this information