MATEC Web of Conferences 184, 04023 (2018)

https://doi.org/10.1051/matecconf/201818404023
Annual Session of Scientific Papers IMT ORADEA 2018

New directions in the development of neuromarketing and

behavioral economics
Andrey Plakhin1*, Igor Semenets2, Ekaterina Ogorodnikova1 and Maria Khudanina1
1 Ural State University of Economics, Department of Management, 8th March str. 62, Ekaterinburg, Russian Federation
2 Slavonic University of the Republic of Moldova, Department of Economics, Florilor str. 28/1, Chisinau, Moldova

Abstract. The article substantiates the relevance of neuromarketing studies based on an understanding of the
basic functional mechanisms of the consumer's nervous system. Such studies include high-precision hardware
testing of unconscious human responses to audio-visual or any other stimulus. Neuromarketing is considered
as a symbiosis of separate disciplines: psychology and psychophysiology, traditional marketing and
economics, neurobiology, econometrics, etc. In the work comparison with traditional marketing researches
on such parameters as: objectivity of an estimation of results received during researches is made; also
effectiveness of application in practices was investigated; sample for the study is selected; cost of research
and interpretation of results are determined. The foreign experience of using neuromarketing technologies
and behavioural economics on the example of such organizations as Singapore Airlines, Nike, Starbucks,
automotive companies, universities, etc. was studied. Comparison with the Russian level of development of
innovative marketing is made. Recommendations are given on the introduction of neuromarketing in the
Russian automotive industry using the example of AvtoVAZ. The efficiency and value of carrying out
neuromarketing research in the enterprise and the possible economic effect are calculated. The main tasks of
modern higher education are marked and innovations in the learning process are proposed.

1 Introduction the consumer is presented: various forms of visual

representation of a product or service, their tangible
In modern microeconomics, presumably, there is no features, musical and aromatic support.
marketer who does not set a goal to correlate the product In the second part, foreign experience of introducing
with the buyer and give people what they really want neuromarketing technologies, features and structure of
most. Today it is not enough to understand and manage innovations in European companies are considered.
price policy: it is absolutely necessary to know the nature Comparative statistics are presented, which shows a
of a person, including his emotions. This is important, as relatively low level of development of marketing,
the consumer becomes more demanding and including neuromarketing, innovations in Russia [4].
sophisticated, complicating behaviour patterns. He At the end of the article, a conclusion is drawn that
understands that the product is not only a collection of neuroimaging in Russian organizations can be applied
consumer properties and services, but it is both emotions regardless of the scope and type of activity. In particular,
and feelings that appear when buying and using. It is the in the automotive industry or education.
emotional processes and thoughts associated with
branding that are the predominant reactions to product
quality [1]. To understand such reactions, neuromarketing 2 Theoretical aspects of neuromarketing
research is carried out, which today no longer has a
creative solution, but a rational approach [2], [3]. 2.1 Content and objectives of neuromarketing
In this article, the authors tried to characterize research
neuromarketing, its goals and objectives, as well as
involvement in the behavioural economy. The advantages Neuromarketing is a new direction in marketing, which
and disadvantages of technologies that help to compare uses brain research - neuroimaging - to study the
neurovisualization with the tools of traditional marketing behaviour of the buyer. In fact, this is one of the tools of
are considered. Further, the importance of categories such the customer relationship management (CRM), built on
as emotions, motivational structure and cognitive the basis of understanding the fundamental functional
distortions of a person is indicated. In the first part, you mechanisms of the nervous system. It includes high-
can find out what categories they are and why it is so precision hardware testing of unconscious human
important to consider them when forming a commercial responses to audio-visual or any other stimulus. Such
offer. Then the analysis of other channels of influence on irritant can be advertising, label or packaging, particularly

*
Corresponding author: apla@usue.ru
© The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution
License 4.0 (http://creativecommons.org/licenses/by/4.0/).
MATEC Web of Conferences 184, 04023 (2018) https://doi.org/10.1051/matecconf/201818404023
Annual Session of Scientific Papers IMT ORADEA 2018

a product or service. Knowledge of how irritants affect the the above-named disciplines and experiments that
main 4 channels of communication: hearing, sight, touch confirm this interpretation.
and smell through consciousness, make it possible to
analyse the behaviour of consumers, change their
2.2 Advantages and disadvantages of
thoughts even before understanding and making a choice
neuromarketing: comparison with traditional
[5].
methods
At the same time, it should be noted that, according to the
Russian Federal Law on Advertising No. 38-FZ of 13 Analysis of literature sources allows to formulate the
March 2006, Article 9 [6] states: "Radio, television, following main advantages of neuromarketing in
video, audio and film products or other products shall not comparison with traditional marketing research, and some
be used and distributed hidden advertising, that is, disadvantages of neuromarketing technologies. Let us
advertising, which has an impact on their consciousness also consider which of the shortcomings are more or less
not realized by consumers of advertising…". Therefore, justified.
neuromarketers should not pursue the goal of deceiving or The most important privilege is an objective evaluation of
imposing an unnecessary product on the buyer, but they the subjective reaction of a person to a product or service,
can investigate their attention and reaction to the or their component. Possession of such information can
advertised product for the most effective promotion [7]. give an advantage in the form of influence on purchasing
Thus, neuromarketing can be described as an behavior so that the costs of conducting
interdisciplinary science, since the development of events neurovisualization studies will be justified and paid off by
uses already accumulated or acquired knowledge from improving the product and increasing sales.
psychology and psychophysiology, neurobiology, It has been proven that neuromarketing technologies
traditional marketing, neuroeconomics, economics and provide marketers with information that can not be
econometrics and other branches of knowledge. obtained through conventional marketing methods.
The combination of all these sciences provides an According to experts, 95% of all thoughts occur in our
opportunity for a fuller and deeper understanding and subconscious, and it is these data that can not be fully
classification of the buyers value system, the structure of obtained through surveys or focus groups, and some of
their motivation, correcting socially directed and life- them can be misinterpreted.
affirming factors of self-perception and self-esteem. Let's look at an example. Baileys liqueur and Red Bull
All these factors can be expressed in the exact price drink did not like the focus groups at the initial stages, and
positioning, or in the development of precisely those according to preliminary tests it was revealed that the
products that will be more in demand by the potential subjects did not even agree to try the drinks more at all.
consumer (both because of the presence of specific However, the products were brought to the market, and
physical characteristics in this product, and because of now it is sold superbly throughout the world [9].
some emotional attractiveness not reducible to No less important is that the results of many
operationalization) or in the ability to communicate neuromarketing research are now available to a wide
accurately with their customers, or in the optimal layout range of people. This means the applicability of such data
of retail space, or in maximizing product life cycle and in building a development strategy and planning sales not
brands themselves. only in large companies, but also in small and medium-
Therefore, we can identify the following main tasks of sized businesses. It is the society that makes information
neuromarketing: open: we have moved to the digital level and every day
1. In the paper "Neuromarketing: Myths, Real Goals and we are creating a huge amount of archival data.
Traps" [8] Oleg Klepnikov and Maria Chernova compare On the other hand, there arises the problem of protecting
neuromarketers with artists: they combine a systematic the privacy of clients. This, as well as the desire to keep
approach and an uncontrollable subconscious process. In secret the interpretation of the data, does not allow some
the case of neuromarketing, it is necessary to combine all companies to publish the results of the conducted studies.
theoretical and empirical knowledge of traditional Nevertheless, although some of the information remains
economic sciences with applied sciences and brain open, the tools for its analysis remain closed [10].
research and consumer behaviour. Another disadvantage is the inadequate sample in the
2. Neuromarketers in the course of experimental and studies. Back in 1979, the work of Amos Tversky and
scientific activity determine the reasons and sequence of Daniel Kahneman "Prospect Theory: An Analysis of
making decisions about the purchase or refusal of a Decision under Risk " was published [11], in which it was
particular product. demonstrated how strongly economic theories differ from
3. Nomination of the most logical ways, or in some cases people's behavior in real life. Today, a whole science has
illogical, for promotion of goods in accordance with the emerged about the description of the behavior of buyers -
true needs of the potential buyer, identified in the course the behavioral economy - which is scientifically
of research. The development of such strategies for places supported by neuromarketing. Although it was previously
of sale, which would fall into the focus of selective thought that the error factor in decision-making can not be
(selective) customer perception. predicted, according to the work of Tversky and
In this case, in our opinion, it is not necessary to resort Kahneman, economic rationality is systematically
to "ultrasound" brain activity every time: it is enough to violated, but errors in decision making are not only
interpret the buyer's reaction with the help of a number of widespread, but also predictable [12].

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MATEC Web of Conferences 184, 04023 (2018) https://doi.org/10.1051/matecconf/201818404023
Annual Session of Scientific Papers IMT ORADEA 2018

This is partly written about by Dan Ariely in his book According to experts, in Russia people are more exposed
"Predictable Irrationality" [12]. Therefore, it can be stated to neuromarketing than Europeans. For example, from the
that this is one of the reasons why a large sample should use of sound, you can expect sales to increase by 10% in
not become a decisive factor when choosing a method of the West, while at the same time in the Russian company
marketing research. sales in this way are increased by a third [16].
The second reason speaks for itself: the Nielsen company According to studies of the European market of
conducted an experiment that showed that the neuromarketing among countries in terms of the cost of
neurosearch for a sample of 100 people gives the same neuromarketing activities confident leader is Germany,
result as for a sample of 20 people [13]. with a total amount of over 100 million USD per year. In
Further, according to the generally accepted opinion, and Russia, the amount is about 3 times less (Fig. 1) [17].
this is the strongest "anti-stimulus", neuromarketing 112808.8
technologies are one of the most expensive methods of
research.
Thus, the scientific direction in marketing analysis 60867.9
gives an answer to the question what the consumer really 46297.2
38143
needs, and how to sell him a "useful" product. 30126.5
Neuromarketing can be characterized as an accessible 15299
method of research and promotion of goods, and effective
and wearing an objective shade.
Russia Germany Great France Sweden Italy
Britain
3 Russian and foreign experience of Fig. 1. Domestic expenditure on research and development,
using neuromarketing technologies and million US dollars
behavioural economy
It is rather indicative also the analysis allowing to estimate
To date, there are some more than 250 research centres a share of the companies on the countries which in one
around the world dealing with neuromarketing. There is form or another apply marketing innovation tools in the
also an opportunity to pass special educational courses on activity (Fig. 2) [17].
neuromarketing in such universities as "Erasmus 35.9
University of Rotterdam" (Netherlands), "INSEAD" 25.3 28.1
23.5
(France), "Zeppelin" (Germany) and "Stanford" (USA) 18.5
[14].
1.8
In the international arena, companies of various industries
apply the behavioural economy in practice, including
Russia Germany Great France Sweden Italy
neuroimaging. Let’s give some examples. Britain
Sensual branding is used by "Singapore Airlines". The
company enjoys a special colour scheme and the smell of Fig. 2. Relative density of organizations using marketing
"Stefan Floridian Waters", which is used by flight innovations,%
attendants. This smell is also impregnated with towels and
other attributes on board. As the results of Agny's research show, in Russian
"Starbucks" is asking for a high price not only for coffee, companies the adoption of marketing decisions largely
but also for a unique combination of interior design, depends on the subjective opinion of specialists [17].
exotic smells, background music from around the world. While it is clear that effective solutions can only be
Constant neuromarketing research is conducted by achieved through scientific evidence based on the use of
"Nike". The company is well-oriented in the market due innovation, including neuroimaging.
to the behavioural economy. More than 10 applications Certainly, some Russian companies have succeeded in
that track the overall physical condition of a person, allow conducting neuromarketing research and applying the
consumers to add all the necessary information to a well- behavioural economy in practice. The brain laboratory,
known brand. NeuroTrend, OLYMPIA and other research centres offer
From the examples above, it can be seen that innovations to conduct neuroimaging and find out the true consumer
can be introduced in various ways: with the use of special preferences. In the process, many professional skills and
equipment, impact on sensorics or the development of knowledge are integrated. For example, in St. Petersburg,
applications; in all kinds of spheres and branches. the leading doctors - psychotherapists, candidates of
Most European companies already take into account philological sciences, astronomers and even mentalists
behavioural patterns in their pricing policies and united in the promotion company. All this contributes to
advertising, and traditional methods are inherent in the effective and reasonable development of the brand.
organizations that have long held a stable position in the As for the direct application of the behavioural economy
market due to the old technology of doing business or in practice, we can give an example of some companies
without growth tendencies. that do not hide this information: Makfa, Uvelka,
Moreover, Russian companies are lagging behind the Borjomi, Cherkizovo, Faberlic, Sela, Dixi, leading
Western ones on the introduction of innovative Russian mobile operators, etc. As you can see, the largest
technologies for about 2 to 3 years [15]. companies preferred innovative technologies.

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MATEC Web of Conferences 184, 04023 (2018) https://doi.org/10.1051/matecconf/201818404023
Annual Session of Scientific Papers IMT ORADEA 2018

Organizations that are not ready to widely modify and BMW uses the slogan created by neuromarketers: "The
promote business, realize the need for neuroeconomics in Ultimate Driving Machine", which focuses on the
B2B. For example, using an outsourcing call centre. complex of pleasant experiences that the consumer will
Obviously, in Russia it is necessary to develop experience while driving. BMW, Honda and Audi also
neuromarketing and to identify new directions, where the have their own fragrance, which is also an instrument of
use of the behavioural economy is necessary. Since in the sensory influence on a person's consciousness. Daimler
global science the share of the Russian Federation is no conducts research on the impact of the product on the
more than 2%, then efforts should focus on the consumer and develops special advertising campaigns;
introduction of innovations. thanks to one of these advertising sales grew by 12%, etc.
In order to build a strategy for the development of
production and sales, let us turn to the leading Eurasian
4 New directions of neuromarketing automotive companies that have already introduced
development and behavioural economy neuromarketing technologies, and advertising campaigns
in Russia are built according to the canons of the behavioural
economy.
Let's take AvtoVAZ as an example. AvtoVAZ is a
4.1 Car production
Russian automotive company, the largest car
The automotive industry in Russia is constantly changing manufacturer, with a market share of 19.5%. In 2017,
and is facing a lot of different problems. One of the 45% of cars were sold through state support programs. 17
reasons for the backwardness of the industry is that new LADA auto centres were opened, and retail sales
enterprises pay insufficient attention to research and grew by 31% [18].
development. Let's consider in dynamics specific density In 2016, the expenses of the auto concern for advertising
of the organizations which are carrying out marketing increased 4-fold, and in 2017 they decreased 2-fold. Let's
innovations in the process of production of vehicles and consider the marketing strategy of AvtoVAZ in more
equipment in their total number for 2009 - 2015 (Fig. 3) detail.
[8]. First, the Russian manufacturer is preparing in the next
ten years the release of 12 completely new SUVs built on
5.1 the platforms of the most popular cars.
Looking at this situation from the other side, it is
4 appropriate to use the Zaltman metamorphism method
3.7
(ZMET), widely used in neuromarketing and in the
2.9 3
automotive industry, by the transnational automotive
concern Daimler.
1.7 1.6 At the first stage of the target audience, it is suggested to
select pictures reflecting the emotional state of each
individual person. Pictures should encourage the creation
of associative links with respect to any statements without
2009 2010 2011 2012 2013 2014 2015 direct binding. For example, pictures associated with
investing or proper nutrition. Then the researcher
Fig. 3. Specific weight of organizations engaged in marketing
innovations in the production of vehicles and equipment in the
conducts interviews with each participant within 1-2
total number of organizations surveyed for 2009-2015,% hours.
In the process of research it is possible to reveal a latent
As can be seen from the graph, every year the number of reaction to a car, to uncover thoughts, feelings and desires
organizations implementing innovative marketing about a product. These are deep processes of
solutions is decreasing. consciousness contained within the human mindset of
At the same time, a number of European automakers, people, and reactions to auditory, visual, kinaesthetic
systematically conducting neuromarketing research, can information or another stimulus. The result can be used
observe the following dynamics of profit growth (Fig. 4). when changing the shape, design, type, colour, quality of
the upholstery material, etc.
150% The basis of the model is a symbiosis of neurobiology,
psychoanalysis, psychology, art and theory to identify
100%
mental models that determine human behaviour and other
sciences.
50%
Thus, it is not necessary to change and adjust the
autoconstruction completely to the European model, but
0%
to create one.
BMW Honda Daimler Renault Audi
It is also appropriate to use such devices as EEG, eye-
-50%
tracking, polygraph and others. For example, the South
2015 2016 2017 Korean automotive company Hyundai used the EEG to
test its prototypes. The activity of the brain was measured
Fig. 4. The growth rate of net profit in 2015-2017 for companies for various design features and it was studied what kind
with the practice of introducing neuromarketing of stimulation is likely to lead to a purchase. The results

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MATEC Web of Conferences 184, 04023 (2018) https://doi.org/10.1051/matecconf/201818404023
Annual Session of Scientific Papers IMT ORADEA 2018

of this study influenced the decision to change the exterior Further, we will estimate the level of quality of
design of the cars themselves. neuromarketing research (Table 2).
Secondly, an aggressive advertising campaign.
Advertising war with AvtoVAZ is carried out by the Table 2. The system of indicators used in forecasting the
correspondence of the results of the study with the objectives
largest car dealers Citroen, Audi, Volkswagen, Ford,
of the study
Hyundai, who have long considered the behavioural
economy. Value and range of evaluation of
Nevertheless, AvtoVAZ is also trying to affect emotion Index
the study quality
emotionally the consumer's consciousness using Deadlines 6 months
consonant associations in the advertising company to the Average level. Opens prospects of
Vesta model. The value of the results the Russian car industry
Since there are two ways of forming loyalty and "falling (Table 3) development, increase in sales
in love" with the consumer towards the manufacturer, it is volume, etc.
Level of results novelty Getting new results
probably worth paying attention not only to the emotional
The high significance of the
component, but also to cognitive distortions. Actuality and relevance research, both from the point of
The idea is not to create and use distortions, but to develop of the study view of the automotive industry, and
critical thinking in favour of the Russian automotive in general of the economy in Russia
industry. Possible scale of results
Branch
For example, the binding heuristic (anchor effect). implementation
Consciously there is a binding to the European standards Technical and Full compliance of the technical
of automobile designs. People are ready to overpay for the methodological levels of means and techniques used with
brand and the framing it created. This is what we call the study modern achievements of science
"brand equity". Partial implementation of the results,
There are several ways to deal with a distorted Volumes of results depending on the professionalism of
implementation the researchers interpreting the
consciousness: develop critical thinking and encourage
findings
the buyer to reassess values and views. The choice of a
car can be caused by a "trap of incomplete information", Table 3. Evaluation of the effectiveness of information
when decision-making is based on a few unpleasant facts, (by peer review).
while there are hundreds of them, and the consumer does
not need to know anything more about them. K = f (i; c; d) = i * c * d = 0,45
The average level of information value
The easiest way to point people to their own mistakes is
I 0,5
with the help of accurate measuring equipment: a lie
C 0,9
detector, an MRI, etc. D 1
Third, the development of e-commerce. With the advent
of the new function of buying cars online, new prospects
Based on the experience of foreign automotive companies
opened on the site of AvtoVAZ. Neuromarketing tools
and concerns, the introduction of neuromarketing
can be used in advertising texts and graphics, NLP; They
research can increase profit growth up to 24% (Daimler).
can affect conversion and total sales.
However, taking into account the average level of the
We calculate the overall economic efficiency of the
value of information and the high cost of marketing
proposed innovations in AvtoVAZ.
research, experts predicted growth of the company until
First of all, we will list the activities and their cost
2020, the average increase in profits of foreign
characteristics for a sample of 200 to 1500 people,
companies, which arose through neuroimaging, the
depending on the duration and quality of the event (Table
additional profits can be expected to increase to 10%.
1).
Given the above, it seems appropriate to consider the
Table 1. Proposed list of neuromarketing activities and their use of neuromarketing technologies in AvtoVAZ, as
cost characteristics many European companies have already successfully
implemented these innovations and were able to increase
Neuromarketing event Cost characteristics sales.
Conducting ZMET using additional
equipment: traditional marketing tools
From 60,940 4.2 Education and training of specialists
and neuromarketing, including: EEG;
thousand rubles to
MRI; polygraph; eye-tracker
110,750 thousand Even today in Russia you can take courses in
Attraction of highly qualified personnel
rubles
for holding events neuromarketing in major universities, namely the
Interpretation of resultsв Moscow State University. Lomonosov, MGIMO, REU
Formation of a new heuristic binding The same costs as and some others.
using an advertising campaign with a traditional At the same time, it is quite obvious that it is necessary to
advertising campaign modernize the education system in the sphere of
Development of commercial trade (from 1 to 2 billion marketing.
rubles.)
The main tasks of modernization include:
- the flexibility and effectiveness of vocational training
programs;

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MATEC Web of Conferences 184, 04023 (2018) https://doi.org/10.1051/matecconf/201818404023
Annual Session of Scientific Papers IMT ORADEA 2018

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6. On advertising: Federal Law No. 38-FZ of March 13,
does not allow us to examine the state of the market from
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