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[Applause]
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about 20 years ago a group of
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researchers did a study at a wine store
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they want to find out if source
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background music could influence
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shoppers wine selections here's what
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they found on a days when they played
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German music German wines also French
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wines by 3 to 1
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and on the bass when they play French
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music French wines also German ones by 3
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to 1 but here's a kicker
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they asked shoppers if the background
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music influenced their wine selections
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your profit could guess over 90 percent
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of shoppers say no this study shows that
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our buying decisions can be influenced
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by something so subtle that we don't
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even notice the study also raises some
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important questions how do we make
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buying decisions you will make decisions
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consciously based on facts reason and
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logic we're doing make decision
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unconsciously based on emotions feelings
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and intuition next I'd like to share
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with you harrowing conscious emotions
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influence our decisions
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you remember New Coke here's a story
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behind New Coke in 1985 Coca Cola was
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losing market share to Pepsi perhaps he
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had been telling coca-cola by claiming
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that in blind taste testing more people
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preferred Pepsi over coke coca-cola
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decided to improve the taste by changing
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his formula it came up with new coke
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over 200,000 people taste test New Coke
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or whelmingly people preferred New Coke
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over the original coke but more
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importantly people prefer New Coke over
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Pepsi with a lot of confidence coca-cola
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rolled out new coke but very quickly
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this sweet drink turned into a bitter
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pill that cost coca-cola tens of
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millions dollars angry customers started
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protesting around country demanding the
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original coke back anxious customers
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start hoarding Coke products left on
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store shelves
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coca-cola headquarters received about
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8,000 angry phone calls a day he can
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help asking
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how could 200,000 people get it wrong
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what did coca-cola miss what coca-cola
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missed was a strong emotional connection
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people had for nearly hundred years coke
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had been marketed as a feel-good product
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their marketing slogans included have a
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Coke in the smile I like to buy the
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world a coke celebrities like Elvis
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Marilyn Monroe and the Beatles were the
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face of coca-cola if you don't feel well
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have a coke Coca was more than a sweet
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beverage drinking coke had to become a
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feel-good experience that feel-good
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experience involves thoughts feelings
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and memories while drinking coke seems a
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bit complicated doesn't it the study
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pops in 2004 shows how Coca Cola's
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marketing has imprinted our brains with
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good thoughts feelings and memories in
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this study volunteers for a 13 litre
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coke were Pepsi while their brains were
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scanned to find out which part of the
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brain became active
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the researchers start out with blind
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taste testing like the Pepsi challenge
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they were able to replicate the result
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the Pepsi challenge that is slightly
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over 50% of volunteers preferred Pepsi
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over coke no surprise there then the
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research has made a slight change to the
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Pepsi challenge the volunteers were told
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exactly what they're going to drink
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before taking a sip it's no longer blind
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taste test anymore
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suddenly 75% of volunteers prefer Coke
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over Pepsi more surprisingly while
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they're drinking Coke the emotional part
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of the brain the memory part brain and
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the thinking part of the brain became
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their active in sharp contrast this
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elevator brain active the pattern was
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not observed while they're drinking
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Pepsi with the study tell us the study
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demonstrates what happens in our brains
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unconsciously when we think of popular
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brand like a Coca Cola
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the study also demonstrated that our
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thoughts feelings and memories can
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unconsciously change our experience with
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a product this is exactly how the
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unconscious might influence our choices
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the fast feelings and memories evoked by
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the coca-cola brand are the strong
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emotional connections people have and
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coca-cola missed those strong emotional
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connections when they reduce this iconic
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drink to just taste this is why New Coke
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failed for this brain study we can see
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how marketing influences our emotions
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and our decisions without our awareness
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this is where neuroscience means
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marketing welcome to new marketing new
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markings and new signs consumer
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decisions he studies how men will make
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buying decisions and how our emotions
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and intuition shape our decisions but
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why the markers are paying attention to
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our emotions intuition and unconscious
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mind here are some of the reasons over
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the last few decades neuroscience
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research has confirmed that about 95
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percent our decisions are made
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unconsciously during the same time
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medical studies have shown that without
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emotion we simply cannot make decisions
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inside the human brain there are many
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highly specialized areas each area has
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unique functions some areas are response
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we're seeing some are were hearing some
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are for tasting and this larger the
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brain color in blue is what we call the
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limbic system is our emotional brain our
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emotions depend on this part of the
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brain our love compassion optimism pride
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joy happiness as was anger fear anxiety
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embarrassment guilt and sadness our
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Center in this part of brain
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neuroscientists often learn more about
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the brain when something goes wrong here
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we have Frank he had a stroke the stroke
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damaged a large paralyze his emotional
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brain what's going to happen to him what
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you will see as a Frank will have a very
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difficult time making decisions even the
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simplest decisions when he goes to a
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grocery store to buy breakfast cereal he
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will agonize over the decision whether
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he's to choose we these Cheerios were
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conflicts without his emotional brain
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being fully functional he simply cannot
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make that decision
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every purchase involves decision making
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both neuroscience and marketing can help
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us understand how make decisions and
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will influence our decisions
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there's mirrored between the earth
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science and marking has given birth to
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neuromarketing but why does new Merton
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matter every year nine of the ten new
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products fail about a hundred billion
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dollar spend on marketing are wasted the
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main reason that traditional marketing
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fails to pay attention to consumers
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unconscious emotional experiences this
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will happen to new coke if we can avoid
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wasting so much money on - marketing
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both consumers and businesses went with
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newer marking to focus on creating
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better consumer experiences and it does
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work first like to share with you how
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Google captain's user's unconscious
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behavior to maximize his revenues we'll
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have seen Google as before the links in
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these ads are colored in blue every time
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you click on these blue links Google
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makes money naturally Google wants a
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huge surtout click on these ads more
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often we know that color can impact our
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emotion in our behavior the question
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Google asked was whether a subtle change
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of color in these bull links could
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changes users clicking behavior several
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years ago Google test is close to 50
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shades of blue in these links wanting to
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find out if certain shades of blue with
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general more clogs one shade of blue did
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10 or more clicks by adopting that color
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Google increased annual revenue by 200
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million dollars this is a power new
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marketing if you know what clicks with a
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brain you can apply that knowledge
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create better customer experience a
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better customer experience and transfer
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into a stronger bottom-line this is why
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new marketing works next like to share
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with you how a slight a notable speedy
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improvement by Amazon increase the sales
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by over 1.7 billion dollars according to
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Amazon a one
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of a sunken speeding pumaman songs
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website can you increase the cells by 1%
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consciously we cannot beat at one tenth
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of second difference but unconsciously
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our brains notice it by speeding up the
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website ever so slightly Amazon quiz a
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better customer experience that better
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customer experience generates more sales
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this is Paul Daniel marketing Google's a
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notable change of a color makes a click
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more or amazons and notable speed
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improvement makes a buy more what does
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that tell us about our decision making
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our way in total control our decisions
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were the influenced by something so
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subtle that we don't even notice the
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study published in 1975 shows how
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invisible social influence can shape our
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decisions in this study volunteers were
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asked to rate quality and price of
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cookies from two jars one jar had cane
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cookies the other one had only two
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volunteers were told the cookies in the
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jar with only two laughs were in high
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demand in short supply now surprisingly
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those cookies were read as a hiring
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quality in price because it was believed
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that more people wanted them what is
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surprising that all the cookies used in
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the study were identical we tend to
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believe is something's won by more
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people it must be good and valuable why
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is this invisible social influence so
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persuasive it's because decisions create
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uncertainty we feel safer by phone
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decisions made by crowd this is a
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natural bias in our brains Amazon
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understand this bias very well uses
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biased persuade to spy imagine in any
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new coffee maker
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how does Amazon help you decide first
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you want to see a four star rating then
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over 5,000 customer reviews and or 1000
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questions answered then number one
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bestseller all this information is based
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on other customers opinions this
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information comes before you see the
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price and the free shipping offer
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Amazon persuaded by using this invisible
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social influence most people have not
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heard of a newer marking yet but if you
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ever bought anything Amazon you've been
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persuaded by Amazon's new marketing
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techniques newer marketing is still in
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its infancy but there's no sort of
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misinformation one big misunderstanding
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is that your mark is all about brain
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scans and mind-reading in 2011 the New
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York Times pops a letter claiming that
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iPhone users had a romantic love for
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their phones here's evidence cited by
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the author a pre instructor called
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insular cortex let up doing brain scans
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when a small number I phone users saw
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their phones no self-respecting
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neuroscientist would have drawn that
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conclusion because the same brain
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structure also lights up we see
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something disgusting
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one brain structure can become very
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active for many different emotional
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responses what do you call a
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mind-reading brain scan a brain scan
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some snake oil salesmen claimed that
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Newmark is all about findings brains by
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button by pressing that buy button you
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can persuading anybody Anytime Anywhere
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to buy anything until the cows come home
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why does this claim also sound like a
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scam because it violates a basic
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principle persuasion if seems too good
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to be true it is to be true
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Noura marketing is about buying
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decisions but the impact has reached far
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beyond them because ultimately is about
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human decisions we're all decision
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makers through our lifetime we'll make
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millions and millions decisions some
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decision can be very difficult even
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life-changing over the last 10 years I
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had come from many gut-wrenching
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decisions should I leave a stable job to
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work on my own business how do I care
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for my aging parents who are six six
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thousand miles away in a different
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country how do I support someone who
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battles depression from your marking we
00:13:34
have learned that our decisions are not
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completely within our control there are
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many invisible influences that shape our
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decisions without our awareness being
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mindful that vulnerability give us a
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more power not less our decision can
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have a lasting impact on other people's
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lives from newer marketing we have
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learned that something very subtle
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contained our behavior dramatically what
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does it take to safety enough energy to
00:14:01
power all the homes in Minnesota and
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Iowa it's not creating a massive
00:14:06
government program we're switching to
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all you lightbulbs we're upgrading for
00:14:09
energy-efficient appliances is a tiny
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emoticon in a 2007 study an energy
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company printed a tiny emoticon energy
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bills to tell customers about their
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energy consumption a happy face meant
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lower energy consumption the neighbors a
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sad face meant higher
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consumption the neighbors given how
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powerful the invisible social influence
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can be is now surprising that our
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decisions it's not surprising that our
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neighbors in the behavior can impact
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ours what is surprising that all these
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these tiny emoticons reduce energy
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consumption by almost three percent
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that's enough energy to power all the
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homes in Minnesota and Iowa who would
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have thought something so subtle can be
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so powerful now this subtle cue is
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showing up in our lives here is any bill
00:15:05
NGO I recently received it has a happy
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face I'd like to close my talk with one
00:15:13
more story this story has some bathroom
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humor
00:15:16
it's about urinal spillage when a guy
00:15:21
stands for on urinal he often does his
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business mindlessly and aimlessly
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spill it happens they cost money to
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clean it up in 1990s the amsuman airport
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came up with a brilliant solution all
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they did was to etch the image black
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line near the training urinal when guys
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see that black light they start aiming
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at unconsciously that reduces spillage
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by 80%
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well other than my poor case of humor
00:16:02
was the point I like this story because
00:16:06
this fly serves a good metaphor when you
00:16:09
search what what touches people's hearts
00:16:10
and minds you want to find game changers
00:16:13
if you understand how the brain works
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you guys know how people make decisions
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you can find a game changer that has a
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huge impact the most fascinating thing
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is very often this game changer is
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something we don't even pay attention to
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it can be something very subtle like a
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background music and wine store a slight
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change of color by Google noticeable
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Expedia Mumbai Amazon a tiny emoticon on
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your energy bill or a fly as a target
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once you find some sacado
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by following your science the impact
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will be anything but subtle you want to
00:16:53
make a positive impact you want to make
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you want to help others thrive here's
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something I encourage you to try find
00:17:00
your fly and thank you very much
00:17:02
everybody thank you
00:17:10
you
