Apple is back. After a year without any new product releases in 2023, March 2024 sees the unveiling of the new iPad Air and iPad Pro. As note-taking, video streaming, completing assignments, and preparing for competitions have all become possible on one device, tablets have become essential for many college students. With the improvement in tablet performance, the tablet adoption rate is increasing, with the iPad being the most popular choice. Therefore, it is expected that Apple’s new iPad Air and iPad Pro will also achieve high sales figures.

 However, people do not solely base their purchasing decisions on performance. The term “iPad Syndrome” has emerged to describe how people often make purchasing decisions based on factors such as device appearance, image, and other reasons unrelated to performance. Many consumers believe that new products are always the best and are willing to spend a significant amount of money, even if their current device is not faulty or causing any inconvenience. Why do many people make emotional purchasing decisions? The Argus seeks to explore the definition, principles, techniques, and significance of neuromarketing, which stimulates consumer emotions and desires, hopefully helping readers make more rational consumption decisions.

1. Neuromarketing

1) What is Neuromarketing?
“A new product has been released, so I purchased it through direct overseas shipping to introduce it to you before its official release in South Korea(hereafter Korea).” Almost everyone may have heard something like this at least once from mass media outlets like YouTube. Even before new products are officially released, various mass media outlets are flooded with content introducing them. Through such content, products are presented in terms of various aspects such as their strengths and weaknesses, external factors, and differentiation from other products. The individuals who create such content are called reviewsumers, a compound word of review and consumers that is commonly used in Korea and refers to consumers who try out products, post reviews online, and significantly influence others’ purchasing decisions. The content created by these reviewsumers plays a role in instilling new curiosity and purchasing desire for the products in those who encounter them. As a result, companies often request pre-launch promotions to reviewsumers to ensure that consumers are frequently exposed to the products.

 Consumers rely heavily on subconscious processes in their decision-making, influenced by advertisements and stimuli like reviewsumers, that permeate our daily lives. Therefore, companies stimulate consumers’ purchasing desires by employing neuromarketing, which combines analysis of brain stimulation activation resulting from unconscious reactions with marketing strategies. Neuromarketing, a term combining neuroscience and marketing, analyzes emotions and purchasing behavior regarding products arising from consumers’ subconscious, allowing companies to effectively apply it to their marketing strategies. Neuromarketing emerged as a means to overcome the limitations of traditional consumer research. Traditional research methods such as surveys or observation of purchasing activities often did not yield satisfactory results relative to the costs and time invested by companies. This was because consumers frequently either expressed opinions contrary to their true feelings out of consideration for others or were unsure about what they truly wanted. In fact, consumers often made purchases or developed preferences for advertisements for reasons they themselves did not realize. Traditional research methods were limited in uncovering aspects that even consumers themselves were not consciously aware of. The Coca-Cola Company’s announcement of new research findings provided clues to overcoming these limitations.

2) Emergence of Neuromarketing
In 2003, there was a remarkable report release. Coca-Cola Company announced the results of brain research conducted on consumers using functional Magnetic Resonance Imaging (fMRI), a method that can identify brain activation areas. While consumers drank Coca-Cola and Pepsi, researchers monitored their brains. Through fMRI, researchers could observe changes in the brain areas of participants during the process of thinking. The experimental results showed that participants, in a blind test where they did not know which brand of cola they were drinking, activated the same brain regions for both Pepsi and Coca-Cola, particularly activating the prefrontal cortex responsible for reward processing. Reward processing occurs through reward circuits, where dopamine , a neurotransmitter, operates in the brain. Dopamine is produced in response to tasty food or stimulating behavior. When judging the taste of both brands of cola purely based on taste, participants’ brains produced dopamine for both brands, showing no difference in preference between the two brands.

 However, when participants were shown the brand logos while being given the beverages, the fMRI images of their brains changed dramatically. When drinking Coca-Cola, different areas of the midbrain and prefrontal cortex were activated, while no changes occurred while drinking Pepsi. Furthermore, when participants knew the brands, they overwhelmingly preferred Coca-Cola. According to brain images, when participants tasted Coca-Cola and Pepsi without knowing the brand, the same parts of their brains were activated. Nevertheless, when participants knew the brands, only Coca-Cola activated certain brain areas indicating that other brain regions were involved in consumer desires besides the prefrontal cortex that was activated in previous studies. The findings obtained by observing brain regions allowed companies to utilize the unconscious mind to make consumers aware of their brands, leading to the emergence of a new field called neuromarketing that goes beyond traditional research methods.

2. Cerebrum, the Brain That Drives Unconscious Consumption

As seen in the cases of Coca-Cola and Pepsi, brands that are frequently encountered from childhood and naturally connected to various memories, experiences activate different brain regions compared to brands or products that are not familiar. Familiar and positive experiences and memories naturally influence consumer behavior. Conversely, even when encountering new brands or products, consumers often impulsively make purchases due to repeated exposure, recommendations from friends, or well-designed marketing strategies, even if these products are not necessarily needed in their daily lives.

 Thus, what are the neuroscience-based reasons that lead consumers to make emotional purchases when they come across brands or products? The brain areas activated by sensory input and emotions are primarily in the cerebrum. The cerebrum is composed of the cerebral cortex, internal structures, and substructures. The prefrontal cortex of the cerebrum, a part of the cerebral cortex, is responsible for higher mental functions such as emotions, and it regulates information from other association areas and controls behavior. The prefrontal cortex is divided into the dorsolateral prefrontal cortex, ventrolateral prefrontal cortex, and orbitofrontal cortex, based on function. Regarding the experiment with Coca-Cola and Pepsi, Kwon Gusang, a Cognitive Science Expert at L’Oreal R&I, stated, “In the case of the Coca-Cola experiment, when preference for a specific object is influenced solely by sensory information such as taste, the ventrolateral prefrontal cortex is activated. However, when exposed to the brand, the dorsolateral prefrontal cortex and the hippocampus* are also activated.” The dorsolateral prefrontal cortex is responsible for higher cognitive functions such as decision-making and emotional responses, while the hippocampus is responsible for memory recall. In other words, different brain areas are activated when sensory information is provided and when emotions are stimulated through brand recognition. Neuromarketing induces consumers’ unconscious consumption by stimulating brain regions that regulate emotions through strategies.

 When sensory responses reach the brain and the process of recognizing brands occurs, there are cases where consumers encounter well-known brands and cases where they encounter new and unique brands that stimulate their curiosity. Dr. Kwon explained, “When encountering well-known brands, it is familiar information, so the brain automatically switches to a mode where the comprehensive judgment based on the stored brand information operates quickly. At this time, the amygdala located above the limbic system, responsible for determining whether one likes or dislikes, is mainly activated.” On the other hand, when encountering new brands, he stated that, “Because judgment needs to be made after exploring additional information, the brain switches to an analytical mode, and the activity of the orbitofrontal cortex responsible for learning is increased.” Regardless of brand awareness, when consumers receive a strong impression of a specific brand or product, although there may be differences in processing time, ultimately, positive emotions are triggered through the activation of the prefrontal cortex and various brain regions responsible for emotions. In other words, if it is a familiar brand, even without the activation of brain areas responsible for emotional judgments, automatic and unconscious judgments can lead to a final purchase decision. As the time for the brain regions̓ activation and consumers̓ purchasing decisions differ, the strategic use of neuroscience in the industry to effectively imprint brands on consumers and connect them to purchase decisions is gradually increasing.

*Hippocampus: The brain area located on both sides of the limbic system near the cerebral cortex that is responsible for memory and learning. It processes declarative memory rather than short-term memory or emotions.

3. Examples and Principles of Neuromarketing Technology

1) Amorepacific, Use of fMRI

Amorepacific, one of the first companies in Korea to introduce neuromarketing, adopted fMRI in 2004 to observe the brains of women who frequently use color cosmetics after showing them images of cosmetics. The results revealed activation in parts of the brain responsible for sensory memory, vision, and touch, indicating that women with rich cosmetic experiences could have multisensory experiences simply by viewing cosmetic images. Based on this finding, Amorepacific renewed its flagship products that were basic skincare products, and launched color cosmetics, leading to significant increases in sales.

 The technology utilized in this process, the fMRI, detects changes in blood flow to measure brain activity. When a specific area of the brain is used, the amount of blood flow to that area also increases, allowing researchers to measure which areas of the brain are activated. The changes in MRI signals due to changes in cerebral blood flow can be divided into two main types: one directly proportional to cerebral blood flow and the other related to changes in Blood Oxygen Level Dependent signal ( BOLD signal) induced secondarily by changes in cerebral blood flow. The former has the disadvantage of weaker signal intensity and limited coverage of the brain region that can be measured. On the other hand, the latter, measuring BOLD signals, offers stronger signal intensity, can capture all brain regions. Also, a substance used to make images clearer called the contrast medium or exposure to radiation is not necessary during X-ray* imaging, and as the spatial resolution of the analysis results is relatively good, it is used as the main tool in neuromarketing. Companies use fMRI to confirm consumers’ subconscious responses and incorporate them into products to increase sales.

*X-ray: When fast electrons collide with an object, electromagnetic waves with
strong penetration are emitted, which are called X-rays.

2) Frito-Lay, Use of EEG

In 2008, the American food company Frito-Lay introduced neuromarketing for a new advertisement campaign for Cheetos. The company predicted that consumers would perceive the orange powder seasoning of Cheetos negatively, but their predictions were completely off the mark. Results measured by electroencephalography (EEG), a method for recording brain activity, showed that consumers’ brains exhibited a stronger preference response when they saw the orange seasoning. Reflecting on this, Cheetos underwent a transformation to prominently feature the familiar orange powder. Frito-Lay incorporated this insight not only into Cheetos advertisements but also into the packaging, making orange the dominant color. Subsequently, the orange powder became a signature of Cheetos.

 The EEG used here refers to an electrophysiological measurement method that records the electrical activity of the brain through electrodes. In general, it only refers to measures signals by attaching electrodes to the scalp and measuring fluctuations in potential induced by ionic currents occurring inside nerve cells. What is the principle behind measuring the brain’s electrical signals via EEG? The answer lies in the repetitive excitation of the billions of neurons inside the brain, which generate flows of charge.

 Nerve cells in a normal state are not normally active, but when a signal comes in, the voltage on the cell membrane increases or decreases, generating an electric signal and transmitting this signal. When a signal is transmitted like this, the ions released from the nerve cell push other ions around them through electrostatic repulsion, and as this process occurs in chains, a kind of wave is generated. The movement of electric charges created by the movement of these ions pushing and pulling electrons is propagated to metal electrodes attached to the scalp, making electroencephalogram measurement possible. The EEG technology offers advantages such as low equipment costs and minimal environmental constraints. Additionally, since it does not use radiation and produces no sound, it has the advantage of generating fewer error signals related to hearing. Companies employ EEG technology to test consumers’ unconscious preferences and use it in various areas such as advertising and to entice consumers.

Can all consumption be considered rational? It is easy to assume that we make rational choices through reason when consuming. However, much of our decision-making is influenced by marketing strategies employed by companies, and companies are constantly researching how to stimulate consumers’ emotions and increase their desire to purchase. The advancement of neuromarketing provides an opportunity to understand and utilize consumers’ unconscious desires and behaviors more precisely. However, this can lead to a situation where consumers misunderstand their consumption as being based on their own rational judgment rather than being influenced by corporate marketing strategies. Therefore, it is necessary for individuals to develop the ability to analyze and regulate their consumption habits rationally. The Argus hopes that from this time on, readers will be able to be cautious of overconsumption and develop healthier consumption patterns.