Buyology – Truth And Lies About What We Buy
Here is a review of an upcoming book titled Buyology. Warren Buffett popularized the concept of “a business moat”, a sustainable competitive advantage that a business enjoys, allowing it to increase prices while fending off competition. This book uses a scientific approach to understand the customers of businesses with sustainable advantages.
Article Introduction (Via Neuromarketing)
Buyology is a compulsively readable (at least for marketers) account of a research project that spanned three years and cost $7 million. Lindstrom’s team used both fMRI and EEG technologies to study what was really going on in the brains of consumers as they watched commercials, thought about brands, and much more. This body of research is surely the biggest compilation of neuromarketing data ever, and the results are always fascinating and sometimes surprising.
Article Excerpts & Examples (Via Neuromarketing)
1. Cigarette Health Warning Stimulate Smoking – while it’s accepted wisdom that printing health warnings on tobacco product packages doesn’t have much of an impact on smoking behavior, the researchers found that the warnings had no effect at all on the cravings of smokers.
2. Product Placements Almost Never Work – With TV commercial viewing under pressure from TiVO/DVR fast-forwarding, greater viewing of commercial-free DVDs, etc., advertisers are turning to placing their products inside the content of television shows and movies.
3. Strong Brands Are Like Religion – When the research team compared consumers’ brain activity while viewing images involving brands, religion, and sports figures, the activity evoked by strong brands was much like that caused by religious images.