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The neuropsychology of consumer behavior and marketing

Article in Consumer Psychology Review · December 2017

DOI: 10.1002/arcp.1006

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DOI: 10.1002/arcp.1006

RESEARCH REVIEW

The neuropsychology of consumer behavior and marketing

Steven D. Shaw | Richard P. Bagozzi

Stephen M. Ross School of Business,

University of Michigan, Ann Arbor, MI, USA Abstract
Insights and tools from neuroscience are of great value to marketers. Neuroscientific
Correspondence
Steven D. Shaw, techniques allow consumer researchers to understand the fundamental neural under-
Stephen M. Ross School of Business, pinnings of psychological processes that drive consumer behavior, and elucidate the
University of Michigan, Ann Arbor, MI, USA.
Email: shawsd@umich.edu “black box” that is the consumer’s mind. In the following review, we provide an over-
view of the fundamental tenets of consumer neuroscience, selectively outline key
areas of marketing that consumer neuroscience has contributed to, compare and con-
trast neuroscientific tools and methods, and discuss future directions for neurophysi-
ological work in marketing. In doing so, we illustrate the broad substantive landscape
that neuroscience can add value to within marketing.

KEYWORDS
consumer behavior, consumer neuroscience, decision-making, decision neuroscience, genetic
associations, marketing, neuroeconomics, neuromarketing, neurophysiology, neuroscience,
social neuroscience

1 | INTRODUCTION neuroscientific knowledge (often derived by consumer neuroscience),

primarily in industry, for company-­specific marketing insights (Hubert
Marketers are plagued with the reality that despite widespread use of & Kenning, 2008).
self-­assessment measures, such as surveys and questionnaires, con- The use of neuroscientific techniques in marketing has generated
sumers are unskilled at retrospective introspection (Nisbett & Wilson, considerable interest and excitement in recent years, evidenced by
1977). In search of more objective and reliable insights into consumer an increasing number of publications and review papers in the area
thought processes, the use of psychophysiological measures to study (e.g., Kenning & Plassmann, 2008; Plassmann, Ambler, Braeutigam, &
consumer behavior began with electrodermal responses in the 1920s Kenning, 2007; Plassmann et al., 2015; Smidts et al., 2014; Solnais,
(Bagozzi, 1991) and pupillary dilation in the 1960s, followed shortly Andreu-­Perez, Sánchez-­Fernández, & Andréu-­Abela, 2013; Yoon et al.,
after by eye-­tracking and heart rate measures (Wang & Minor, 2008). 2012), as well as significant investments by industry leading marketing
More recently, technological advances have led marketers to use research and advertising agencies in neuroscience divisions (including
electroencephalography (EEG) and functional magnetic resonance im- Nielsen, Ipsos, and Millward Brown). For example, in 2015, The Journal
aging (fMRI; see Table 1 for an overview of neuroscientific methods; of Marketing Research, one of the top academic journals in marketing,
Kenning, Plassmann, & Ahlert, 2007). Such applications of neuroscien- published a special issue on neuroscience and marketing (Camerer &
tific techniques to study consumers’ emotions and cognitive responses Yoon, 2015). In industry, one of the world’s largest market research
have spawned the field of consumer neuroscience. Consumer neuro- firms, Nielson, acquired Neurofocus, a leading neuromarketing firm, in
science, defined as applying “tools and theories from neuroscience to 2011 (Hsu & Yoon, 2015).
better understand decision making and related processes” (Plassmann, The primary reason for such heightened interest in neuroscience
Venkatraman, Huettel, & Yoon, 2015; p. 427), is an interdisciplinary ac- within marketing is the promise that neuroimaging techniques, and the
ademic subfield of marketing and neuroeconomics, at the intersection data that they generate, may allow researchers to unravel the “black
of neuroscience and consumer psychology, and overlaps with decision box” inside the mind of the consumer (Fugate, 2007; Lee, Broderick,
neuroscience. Consumer neuroscience is differentiated from neuro- & Chamberlain, 2007). Behavioral outcomes, as well as the consumer
marketing in that the latter involves the practical implementation of processes associated with those outcomes, are of great importance

Consum Psychol Rev. 2017;1–19. wileyonlinelibrary.com/journal/arcp

© 2017 Society for Consumer Psychology | 1
 2

TABLE 1 Overview of neuroscientific methods and tools

|

Functional
magnetic Positron Transcranial Transcranial
resonance emission Single-­ direct current magnetic
Electroencephalography imaging Magnetoencephalography tomography neuron Multineuron stimulation stimulation
Method (EEG) (fMRI) (MEG) (PET) recording recording Lesion studies (tDCS) (TMS)

Description Electrodes are placed on Participants Participants sit with their Active A microelec- A microelec- Portions of Electrical An electromag-
the scalp, and electrical are placed head inside of a sensitive biological trode trode system the brain are current is netic coil
activity in the brain is in a large magnetometer tracer system is is used to removed or used to creates a
recorded in response to magnetic molecules are used to record the permanently temporarily magnetic field
specific stimuli (i.e., bore and introduced record the electrical inactivated inactivate and is used to
event-­related potential) inferred into the electrical response of specific brain temporarily
changes in participant, of response of multiple areas inactivate
neural which gamma a single neurons, specific brain
activity rays can be neuron simultane- areas
during tasks detected ously
is measured
by
recording
blood flow
Invasive No No No Yes Yes Yes Yes No No
Measurement Electrical activity/ Blood Magnetic fields resulting Gamma rays/ Voltage Voltage change N/A N/A N/A
aggregate voltage oxygen-­ from electrical activity tracer change
fluctuations level concentration
dependent
signal
(BOLD)
Temporal Milliseconds to seconds Seconds to Milliseconds to seconds Minutes to Highly Highly variable— Days Seconds to Seconds to
resolution hours days variable— milliseconds minutes minutes
milliseconds to days
to days
Spatial Centimeters—aggregate Millimeters Centimeters—aggregate Centimeters 4–100 4–100 Millimeters to Millimeters to Millimeters to
resolution regions of the brain to regions of the brain microm- micrometers centimeters centimeters centimeters
centim- eters
eters—lo-
calized
regional
gyrus and
layers

Continues
SHAW and BAGOZZI
 SHAW and BAGOZZI | 3

to marketers. However, similar behaviors within an individual, and

without being

resolution, no
between individuals, may be elicited as a result of highly different

brain regions
Transcranial

subcortical
stimulation

Low spatial
underlying psychological processes, many of which are not readily ob-

access to
Causation
magnetic

invasive
servable using traditional research methods (Adolphs, 2010; Sanfey,
(TMS) Rilling, Aronson, Nystrom, & Cohen, 2003). Thus, neuroimaging tech-
niques are attractive in marketing applications because they provide

brain regions
direct current

researchers and practitioners with seemingly objective physiological

Transcranial

subcortical
stimulation

Low spatial
resolution
access to
Causation

invasive,
data, are potentially less susceptible to experimenter bias or demand
without
being
(tDCS)

effects, and can be more reliable than self-­

report data (Camerer,
Loewenstein, & Prelec, 2005).
The purpose of this article was to review the foundational tenets of
phenomenon
Lesion studies

manipulated

naturalistic
robustness

in humans,
consumer neuroscience, providing readers with a basic understanding

lesions are
cannot be

imprecise
Causation,

of the neural basis of fundamental cognitive and affective processes,

Lesions

to provide a selective review of current research in consumer neu-

of

roscience, to summarize common neuroscientific tools and methods,

Highly invasive,

and to discuss the future of neuroscience and marketing.

Multineuron

Precision of

cannot be
recording
recording

used on
humans

2 | FOUNDATIONAL TENETS OF
CONSUMER NEUROSCIENCE
Precision of

cannot be
recording

invasive,
recording

used on
humans

Human decision-making is carried out through a complex symphony

Single-­
neuron

Highly

of neuronal firing and functional circuitry. The neurobiological compo-

nents underlying cognitive and affective processes rely on nonmutu-
ally exclusive functional neuroanatomy. For this reason, researchers
processes, no

and temporal
Invasiveness/

poor spatial
substances,
Detection of
tomography

radioactive

use simplified abstractions of brain areas and neural circuits to organ-

resolution,
expensive
metabolic

artifacts
emission
Positron

motion

ize scientific knowledge. Such abstractions represent the most essen-

(PET)

tial biological components necessary for a given neural process and

omit many details for brevity. Here, we consider four neural circuits
scalp, little/no scalp signal

commonly studied in consumer and decision neuroscience: (a) atten-

Magnetoencephalography

greater spatial resolution

need to be placed on the

than EEG, no electrodes
relative to fMRI, slightly
High temporal resolution

Expensive, not portable

tion, (b) memory, (c) emotional processing, and (d) reward processing.

2.1 | Attention
attenuation

At any given moment, our senses are bombarded with vastly more sen-
(MEG)

sory information from environmental stimuli than can be effectively

processed in the brain. With such a vast disparity between the amount
of incoming information and our processing capacity, determining
High spatial

relative to

relative to
resolution

resolution

EEG, high
Functional

resonance

temporal
magnetic

correla-

which information to process (or attend to) is critical for decision-

imaging

tional
(fMRI)

cost,
EEG

making. Attentional mechanisms modulate the selective concentra-

Low

tion of specific stimuli, or certain discrete aspects of stimuli, while

de-­emphasizing or ignoring other stimuli or distractors. Two primary
High temporal resolution
Electroencephalography

relative to fMRI, scalp

cost, can be portable

Low spatial resolution

relative to fMRI, low

modes of attention exist: bottom-­up attention and top-­down attention

attenuates signal

(Kastner & Ungerleider, 2000). Whereas bottom-­up attention is driven

by environmental cues (e.g., a shocking noise or unexpected scent;
Duncan & Humphreys, 1989; Treisman & Gelade, 1980), top-­down
attention is driven by an individual’s internal goals and motivations
(EEG)
Continued

(e.g., reading a book), external states, or expectations (Connor, Egeth,

& Yantis, 2004; Corbetta & Shulman, 2002). Bottom-­up attention is
Disadvantages

automatic, or unconsciously driven, and essential for first-­impression

Advantages
TABLE 1

judgments of stimuli. For example, when viewing marketing stimuli,

Method

initial eye movements are driven by bottom-­up factors, such as color

and brightness, and within the first 2.5 s consumers make an average
4 | SHAW and BAGOZZI

of four eye movements (Huddleston, Behe, Minahan, & Fernandez, Alternatively, explicit or declarative long-­term memories, which are
2015; Milosavljevic, Navalpakkam, Koch, & Rangel, 2012). processed consciously, can be episodic (memory for events or ex-
In contrast, top-­down attention is conscious, and information that periences) or semantic (memory for facts or concepts). Broadly, de-
is relevant to a consumer’s goals or expectation is given attentional pri- clarative memory traces are largely associated with activation in the
ority/emphasized (Wolfe & Horowitz, 2004). Much research has been hippocampus and surrounding neocortex, such as the medial tempo-
conducted examining the functional pathways involved in bottom-­up ral lobe (Eichenbaum, 2000). Memory for aversive or fearful negative
and top-­down attention. Key brain regions associated with bottom-­up events is associated with activation in the amygdala (Murray, 2007).
attention include the insula, anterior cingulate cortex, and dorsolateral Memory consolidation, which is essential for the formation of
prefrontal cortex (Felleman & Van Essen, 1991; Ungerleider & Haxby, long-­term memories, occurs via long-­term potentiation, or the neu-
1994). Conversely, the key brain regions associated with top-­down ral strengthening of patterned synapse activation (Lynch, 2004).
attention include the dorsolateral prefrontal cortex, inferior parietal Evidence suggests that the amygdala plays an important modulating
sulcus, inferior frontal gyrus, middle temporal gyrus, posterior cingu- role in memory consolidation, functioning to determine the strength
late cortex, and precuneus (Cook & Maunsell, 2002; Luck, Chelazzi, and significance of memory traces, whereas the hippocampus acts as
Hillyard, & Desimone, 1997; Noudoost, Chang, Steinmetz, & Moore, the primary locus of memory processing and consolidation (McGaugh,
2010). 2000). Given that the amygdala is heavily involved in both emo-
The largest portion of incoming environmental information is vi- tional processing (discussed below) and the modulation of memory
sual, and, as a result, vision processing is dominant among the human formation, it is not surprising that emotionally arousing experiences
senses (Kaas, 2008; Koch, 2004). Several regions in the prefrontal are better remembered than nonemotionally arousing experiences
cortex are believed to be essential to both bottom-­up and top-­down (Christianson, 1992). The amygdala can modulate memory formation
attentional processes. In particular, although raw visual information strength by signaling for the release of hormones along the hypotha-
is processed in the occipital lobe, connections to neurons in the pre- lamic–pituitary–adrenal axis (Smith & Vale, 2006). Greater strength of
frontal cortex appear to direct and focus visual attention (Armstrong, remembrance for emotional experiences is regulated by the release of
Fitzgerald, & Moore, 2006). Two cortical routes are involved in visual the adrenal stress hormones, such as epinephrine and cortisol (Gold
processing: the dorsal visual pathway and the ventral visual pathway. & Van Buskirk, 1975). For example, amygdala inactivation during fear
The dorsal visual pathway runs from the primary visual cortex V1 to conditioning prevents learning of the fearful stimuli from taking place
the dorsolateral prefrontal cortex, routing through the posterior pari- (Muller, Corodimas, Fridel, & LeDoux, 1997).
etal cortex, and is primarily involved in the spatial deployment of at-
tention. Conversely, the ventral visual pathway runs from the primary
2.3 | Emotional processing
visual cortex V1 to the ventrolateral prefrontal cortex, routing through
the inferotemporal cortex, and is primarily involved in object recog- Subjective feelings, such as happiness, sadness, fear, anger, surprise,
nition. Given attentional biases toward visual processing, stimuli that and disgust, play an important role in decision-making and postde-
are visually salient (e.g., brighter, more colorful) are often attended to cision appraisal (Ekman, 1992, 1999). At the neural level, two theo-
more rapidly or for a longer amount of time than those that are not vi- retical approaches for understanding emotion exist: the locationist
sually salient (Milosavljevic et al., 2012; van Zoest, Donk, & Theeuwes, approach, which hypothesizes that discrete emotional categories are
2004). tied to specific brain areas, and the psychological constructionist ap-
proach, which hypothesizes that emotional processes are constructed
from interactions between general neural networks that are not spe-
2.2 | Memory
cific to emotion categories. Although significant meta-­analytical evi-
In order for past information to influence future decisions, it must be dence supporting the psychological constructionist approach exists
encoded, consolidated, and retrieved. Defined as “any physical change (see Lindquist, Wager, Kober, Bliss-­Moreau, & Barrett, 2012), the vast
that carries information about the historical past” (Redish & Mizumori, majority of past research on emotional processing within the brain
2015), memory is the brain’s mechanism for the retention and re- relies on the locationist approach. Neural activation results from stud-
trieval of information. Such retention of information is essential for ies using a locationist approach can provide the foundation for the
learning and determining future actions. For this reason, memory and interrelated neural networks of noncategorical emotional responses
decision-making are tightly intertwined. Multiple memory systems hypothesized by constructionist approaches. For a psychological con-
exist within the brain (Eichenbaum, 1994; McDonald & White, 1993; structionist summary of brain networks consistently activated during
Squire, Knowlton, & Musen, 1993). Categorically, there are three dif- specific mental states and emotional methodological manipulations,
ferent types of memory: sensory memory (Sperling, 1963), short-­term see Table 3 of Lindquist et al. (2012).
or working memory (Baddeley, 2017; Miller, 1956), and long-­term According to the locationist approach, the primary neural cor-
memory (Bliss & Collingridge, 1993; McGaugh, 2000). Within long-­ relates of emotion are the medial prefrontal cortex, amygdala, along
term memory, implicit or procedural memories, which are processed with the thalamus and hypothalamus, the insular cortex, the orbi-
unconsciously, are associated with activation in the striatum and tofrontal cortex, nucleus accumbens, and the anterior cingulate cor-
cerebellum (Doyon et al., 1998; Packard, Cahill, & McGaugh, 1994). tex. Of central importance to emotional processing, and most well
SHAW and BAGOZZI | 5

researched, is the amygdala, which primarily processes negative emo- found in the subcortical brain circuits, with the mesolimbic dopamine
tions, fear, unknown stimuli, and inequality (e.g., LeDoux, 2000, 2015; system being of particular importance (Berridge et al., 2009). Namely,
Rilling & Sanfey, 2011). Previous research has also linked insular cortex the neural wanting system consists of the ventral tegmental area, nu-
activation with the perception and/or expectation of risk (Preuschoff, cleus accumbens, ventral pallidum, amygdala, anterior cingulate cor-
Quartz, & Bossaerts, 2008), as well as anger over unfair situations tex, orbitofrontal cortex, and insular cortex. Dopamine, produced in
(Sanfey et al., 2003), and disgust (Jabbi, Bastiaansen, & Keysers, 2008; the ventral tegmental area, spreads throughout the wanting system
Wicker et al., 2003). The orbitofrontal cortex appears to play a role in to influence desires for specific rewards and effort expended thereof.
anger (Murphy, Nimmo-­Smith, & Lawrence, 2003; Vytal & Hamann, On the other hand, liking is the core process of hedonic pleasure—it
2010), and feelings of regret after decision outcomes that differ from is foundational, evolutionarily ancestral, and unconscious or implicit
one’s expectations (Coricelli et al., 2005). The nucleus accumbens, in (Winkielman, Berridge, & Wilbarger, 2005).
concert with other reward-­related brain regions, also plays a role in The liking system regulates pleasure responses and is composed of
emotional processing, largely in conjunction with the neurotransmit- a small number of “hedonic hot spots” in the brain. Hedonic responses
ter dopamine, relating to “motivational processes including behavioral occur in the form of “sensory pleasures as well as many higher types
activation, exertion of effort, approach behavior, and sustained task of pleasure (e.g., cognitive, social, aesthetic, and moral)” (Berridge &
engagement” function (Salamone & Correa, 2012, p. 470). The anterior Kringelbach, 2015, p. 646). Whereas dopamine is a pervasive mech-
cingulate cortex has been primarily associated with sadness (Murphy anism for reward processing in the wanting system, the liking system
et al., 2003; Phan, Wager, Taylor, & Liberzon, 2002), but is believed to has a small number of regions where opioids and endocannabinoids
be involved in the processing of a variety of other neural emotional re- intensify sensations of pleasure (e.g., Kringelbach & Berridge, 2012;
sponses and the integration of emotional responses into the decision-­ Salamone & Correa, 2012). The nucleus accumbens and ventral pall-
making process (Bush, Luu, & Posner, 2000). idum interact with each other in this regard and send information to
the orbitofrontal cortex, where higher-­order cognitive processing oc-
curs. Within the limbic system, opioid, endocannabinoid, and GABA
2.4 | Reward processing
systems are particularly important for liking reactions. In nonhuman
Cost-­benefit analysis is necessary for determining the utility of option animals, observations of positive affective facial expressions have
alternatives. The dopaminergic circuit, referred to previously, which been used to map specific hedonic hot spots, including opioid en-
includes brain areas involved in the neurotransmitter dopamine’s syn- hancement of liking in the rostrodorsal quadrant of the medial shell of
thesis and reception, is broadly associated with reward processing. the nucleus accumbens (Peciña & Berridge, 2005) and ventral pallidum
Key elements of the dopaminergic reward circuit are the ventral teg- (Smith & Berridge, 2005), and endocannabinoid enhancement of lik-
mental area, the amygdala, striatum (putamen, caudate nucleus, and ing in the nucleus accumbens (Mahler, Smith, & Berridge, 2007). Thus,
nucleus accumbens), ventral pallidum, insular cortex, and prefrontal although distinct, the wanting and liking systems overlap in terms of
cortex (particularly the orbitofrontal cortex; Arias-­Carrión, Stamelou, brain regions; both systems combine to produce subjective feelings
Murillo-­
Rodríguez, Menéndez-­
González, & Pöppel, 2010; see also of pleasure.
Kringelbach & Berridge, 2012). The wanting and liking systems have obvious implications for
The reward circuit is activated in response to subjectively attractive ­decision-making by consumers and managers and also relate to satis-
desirable resources and experiences, such as food (Berridge, 1996), faction. We will provide an example shortly, during the discussion of
money (Knutson, Adams, Fong, Walker, & Hommer, 2001), sex (Pfaus, genetic factors, wherein gene variants, psychological phenotypes, and
2009), and drugs (Wise & Rompre, 1989). More specifically, the ventral stress are shown to combine to influence wanting and liking, which in
tegmental area is responsible for the synthesis and transmission of do- turn drive goal striving and satisfaction.
pamine to other areas of the dopaminergic circuit (Fields, Hjelmstad,
Margolis, & Nicola, 2007). The striatum is also crucially implicated in
forming evaluative expectations (Knutson & Wimmer, 2007) and social 3 | A REVIEW OF CONSUMER
reward processing (Fliessbach et al., 2007). NEUROSCIENCE
Reward can be separated into two dissociable psychological com-
ponents: wanting (or incentive salience) and liking (or hedonic impact; The goal of consumer neuroscience is to apply neuroscientific
Berridge, Robinson, & Aldridge, 2009; Pool, Sennwald, Delplanque, theory and methods to better understand consumer psychology. In
Brosch, & Sander, 2016). Wanting promotes the approach and con- doing so, behavioral theories, models, and methods from consumer
sumption of rewards (rather than withdrawal)—wanting has a motiva- psychology are combined with those from neuroscience, in an at-
tional component, is incentive salient, and neurobiologically distinct tempt to appreciate the biological contribution of consumer behav-
from liking. ior. In this section, we selectively review literature from three key
The wanting system is a network of brain processes that govern research areas that consumer neuroscience has added significant
motivation and is expressed as the desire for rewards. The wanting value to: (a) advertising and branding, (b) consumer preference and
system gives “a visceral oomph to mental desires” (Berridge, 2009, choice, and (c) price, product, promotion, and place (i.e., the market-
p. 378). Evidence for the neural basis of wanting has primarily been ing mix).
6 | SHAW and BAGOZZI

prefrontal cortex, and superior frontal gyrus). That is, behavioral pref-
3.1 | Advertising and branding
erences for Coke were only partly determined by sensory information,
Primarily using fMRI, a number of initial studies investigating brand and activation in the memory circuit as a result of brand information
favorability, brand associations, brand recall, and brand loyalty have biased such preferences.
been conducted (Plassmann, Ramsøy, & Milosavljevic, 2012). Research One of the most well-­studied types of brand associations is the
on brand favorability is intended to develop a better understanding so-­called brand personality, which posits that brands have personality
of the neural mechanisms that are responsible for brand preference. characteristics, similar to humans, and consumers are able to form re-
Deppe, Schwindt, Kugal, Plassmann, and Kenning (2005) show that lationships with brands in an analogous manner to those formed with
when consumers make decisions in which a choice set contains the people (Aaker, 1997; Aaker & Fournier, 1995). Neuroscientific meth-
consumer’s favorite brand (as compared to a choice set without the ods can be used to test and validate behavioral measures and claims.
consumer’s favorite brand), there is increased activation in the ventro- In the case of brand personalities, a study by Yoon, Gutchess, Feinberg,
medial prefrontal cortex. Additionally, such choice sets containing a and Polk (2006) showed that the neural systems involved in person-
consumer’s favorite brand resulted in reduced activation of the dorso- ality judgments of humans are not the same as brand personality
lateral prefrontal cortex, inferior frontal gyrus, and cuneus/precuneus judgments. More specifically, person judgments were associated with
(visual cortex). These neural correlates of brand favorability appear to activation in the medial prefrontal cortex regions, while judgments of
be modulated by the anterior cingulate cortex, which has been shown brands were associated with activation in the left inferior prefrontal
to predict the degree of bias an individual affords a brand on judgments cortex, which is typically involved with object recognition. Such re-
of product attractiveness and credibility (Deppe et al., 2005, 2007). sults illustrate how neuroscientific techniques can illuminate invalid
Evidence for similar biasing of choice by brand preferences comes assumptions that can underlie behavioral consumer research, includ-
from a lesion study by Koenigs and Tranel (2008), which demonstrated ing widely popular ideas and constructs (Azoulay & Kapferer, 2003).
that significant Coke versus Pepsi brand preference reversals between Brand recall, familiarity, and memory for a brand have implications
blind and open trials were not observed in patients with ventromedial for top-­of-­mind awareness and brand perceptions. Familiar brands,
prefrontal cortex lesions, but were observed in healthy consumers. versus unfamiliar brands, are associated with activation in the mid-
That is, patients with ventromedial prefrontal cortex lesions had con- dle frontal gyrus (Schaefer, Berens, Heinze, & Rotte, 2006). Familiar,
sistent preferences, regardless of whether the brand was present or favorable brands that are well established in consumer’s mind (so-­
not, whereas the preferences of healthy consumers were biased when called strong brands) elicit different neural responses than familiar
brand information was present. Additionally, in uncertain decisions, but unfavorable or unestablished brands (so-­called weak brands). In
brand preference amplifies the intensity of ventromedial prefrontal comparison with weak brands, strong brands engage the dorsolateral
cortex activation (Plassmann, O’Doherty, Shiv, & Rangel, 2008). The prefrontal cortex, while weak brands engage the insula more heavily
striatum has also been implicated in the predictive value of brand fa- (Esch et al., 2012). Similar to brand associations, expert endorsements
vorableness. Schaefer and Rotte (2007a,b) found that activity in the have been shown to improve brand recall and are associated with ac-
ventral striatum positively correlated with degree of sports and luxury tivation in the memory circuit (Klucharev, Smidts, & Fernández, 2008).
characteristics of a brand (e.g., imagining driving in a BMW vs. an un- Thus, relationships between consumers and brands can be observed,
branded car), but negatively correlated with rational choice attribu- validated, and quantified at the psychophysiological level.
tions of the brands. Finally, initial work on the neural correlates of consumer loyalty
Brand associations are learned attributes or values that a brand has validated the importance of loyalty in the marketing environment.
elicits in a consumer’s mind. Initial work by Erk, Spitzer, Wunderlich, Using point of sale scanner data and inviting loyalty card holders of
Galley, and Walter (2002), and later corroborated by Schaefer and different retail stores into a neuroimaging laboratory, Plassmann,
Rotte (2007a), showed that brands that are known to signal high social Kenning, and Ahlert (2007) showed that, when choosing between
status, through wealth and social dominance, are associated with the purchasing identical clothing items at different retail stores, consum-
brain’s reward circuit, specifically the striatum, ventromedial prefron- ers who are loyal to a store show more activation in the striatum as
tal cortex, medial orbitofrontal cortex, and anterior cingulate cortex. compared to consumers who are less loyal. That is, neural activation
Additionally, car brands signaling low status have been associated patterns showed that customer loyalty results in neural activation pat-
with activation in the superior frontal gyrus and anterior cingulate cor- terns consistent with the notion that consumers form affective bonds
tex (Schaefer & Rotte, 2007b). Thus, experiencing brands that signal with the store or brand and illustrates the importance of the emotional
high social status seems to be rewarding to the consumer, on a neural component of consumer loyalty.
level. Similarly, some evidence suggests that brands can alter actual
consumption experience (i.e., brand information changes the neural
3.2 | Consumer preference and choice
response when consuming the product). For instance, in seminal work
by McClure et al. (2004), consumers who knew they were drinking Why do consumers choose the products that they end up pur-
Coke, versus those who knew they were drinking Pepsi (or those who chasing? Preference formation and choice have been the subject
did not know what brand they were drinking), displayed neural acti- of much research, exemplified by choice theories across fields of
vation changes in the memory circuit (i.e., hippocampus, dorsolateral marketing, economics, psychology, and political science. However,
SHAW and BAGOZZI | 7

behavioral data can only provide a limited amount of insight into

3.3 | Price, product, promotion, and place
the processes underlying consumer preference and choice. As a
complement, neuropsychological data provide rich insight into con- The marketing mix, also known as the four P’s of marketing, is a foun-
sumer thought processes, and thus, examining the neurobiological dational categorical concept in marketing and represents four es-
mechanisms underlying preference and choice processes is of great sential aspects of marketing campaigns. Consumer neuroscience has
interest to researchers. much to contribute to understanding how each aspect of the market-
Much of the initial psychophysiological work on consumer pref- ing mix can be optimized at the consumer level. Modifiable aspects of
erence and choice has focused at the developmental level (i.e., how the marketing mix can dramatically influence consumer perceptions
the individual, and their brain, is shaped by sociocultural factors and ultimately the success of a marketing campaign. For example, it
during childhood and adolescence). Cultural and social influences is now clear that modifiable marketing mix variables, such as price,
during psychological development play a key role in preference for- influence experienced utility of products above and beyond intrinsic
mation. For example, children as young as 3 years old can recog- aspects of the product (e.g., taste).
nize and represent brand logos (McAlister & Cornwell, 2010). Some Price differences have been shown to markedly impact product
important developmental milestones, such as the representation perceptions. A seminal study demonstrating the malleability of price
and recognition of visual stimuli, occur during critical periods of perceptions showed that not only does price influence perceived qual-
development during adolescence and early childhood (Somerville & ity, but neural activation differs as a result of the expectancies created
Casey, 2010). Critical and sensitive periods are times during devel- by given price points. Plassmann et al. (2008) conducted a study show-
opment at which certain developmental processes, such as specific ing that consumers who tasted the same wine on multiple occasions,
cognitive skills or abilities, take place. Previous research shows that but were made to believe the samples had different prices (i.e., they
the formation of certain preferences occurs during critical periods. tasted the same wine but believed it was cheap or expensive, between
Holbrook and Schindler (1989) provide evidence for the critical pe- tastings), actually experienced the wine samples differently; beliefs
riod account of preference formation for musical taste. By correlat- about quality, based on price, altered activation in the medial orbitof-
ing musical preferences and participants age at the time selected rontal cortex when tasting wine. Additionally, excessive prices have
songs were popular, the researchers show strong evidence that mu- been shown to activate the insula and deactivate the mesial prefrontal
sical preference formation occurs in the early 20s. Understanding cortex (Knutson, Rick, Wimmer, & Prelec, 2007).
preference formation is essential, because preferences ultimately Another price-­related concept that evidence from consumer neu-
influence choice. roscience has contributed to is willingness to pay. In a study inves-
Choice is the primary outcome of decision theories and therefore tigating the neural correlates of willingness to pay, or the maximum
is important to marketers. Many factors influence choice, including price that an individual would be willing to pay for a given product,
environmental factors at the time of the decision, such as location Plassmann, O’Doherty, and Rangel (2007) scanned hungry partici-
the of a product on the shelf in a store (Durgin, Doyle, & Egan, 2008; pants and asked them how much they would pay for a variety of foods.
Efron & Yund, 1996) or the number of products being chosen from Results implicated activation in the medial orbitofrontal cortex with
(Scheibehenne, Greifeneder, & Todd, 2010), and biological factors, willingness to pay computation, and the dorsolateral prefrontal cor-
such as the ability to remember which product one bought previ- tex with decision execution. The order with which price information is
ously or misremembering crucial information about product attributes presented has also been studied at the neural level. Karmarkar, Shiv,
(Skurnik, Yoon, Park, & Schwarz, 2005). and Knutson (2015) show that when pricing information is revealed
A common challenge faced by modern consumers, when pre- before consumers see a product, there is altered activity in the medial
sented with choice decisions among product alternatives, is the prefrontal cortex, and subsequently, consumers value the product dif-
overwhelming availability of many alternatives. Given constraints ferently. Neural activation results like these are beginning to shed light
on memory and attention, leading choice theories postulate that on how our brain computes and represents value in everyday choices.
consumers first filter the alternatives into a small set prior to Intangible features of a product, such as product design, have im-
making a final decision. The smaller set of alternatives that re- plications for the success of the product (Bloch, 1995). Evidence from
mains after filtering is called the consideration set. Models of fMRI research shows that visual product attractiveness is associated
consumer choice that include a consideration set stage are sig- with activation in the ventral striatum, which houses the nucleus ac-
nificantly better at predicting choice than standard models using cumbens (Erk et al., 2002). Such findings could be used to optimize
only choice data (Shocker, Ben-­A kiva, Boccara, & Nedungadi, intangible product qualities. In addition to product attractiveness,
1991). Evidence suggests that consideration sets are often in the overall individual product preference is correlated with activation in
range of 3 to 6 items (Hauser & Wernerfelt, 1990). Cognitive the nucleus accumbens (Knutson et al., 2007). Thus, neural measures
resources, such as deliberation, memory, and attention, are only can detect biological responses to intangible product preferences,
devoted to items within the consideration set. At the neural which cannot be observed easily or accurately using traditional mar-
level, consideration set size seems to be related to activity in the keting measures.
striatum, dorsal anterior cingulate cortex, and insula (Kim, Shin, Research on promotion within consumer neuroscience has likely
& Han, 2014). received the least amount of attention, but is beginning to develop
8 | SHAW and BAGOZZI

and gain importance. One area that has been studied is the effect of products placed elsewhere, are nearly 60% more likely to be selected
celebrity and/or expert endorsements on promotional material. Stallen (Reutskaja, Nagel, Camerer, & Rangel, 2011).
et al. (2010) suggest that celebrity endorsement pairings are effective
because they increase positive affect and spontaneously elicit the
retrieval of explicit memories related to the celebrity, indicated by 4 | NEUROSCIENTIFIC METHODS AND
increased activation in the medial orbitofrontal cortex when viewing TOOLS
celebrity endorsers, versus viewing equally attractive nonfamous en-
dorsers. Similarly, promotion using “expert power,” or the persuasive Neuroscientists use a broad array of methods to study the brain,
effect of communicators with expertise, has been shown to have ex- behavior, and their intersection. Importantly, these methods differ
tensive memory and attitudinal effects on the product. Klucharev et al. in the spatiotemporal resolution at which they measure brain activ-
(2008) show that expert content is associated with left-­lateralized pre- ity, invasiveness, and type of brain activity that they measure (e.g.,
frontal and temporal brain activity, related to semantic elaboration, correlational versus causational observations). In human studies, the
hippocampus and parahippocampal gyrus activity, related to memory most commonly used methods for recording brain activity are electro-
formation, and caudate nucleus activity, related to trust, reward, and encephalography (EEG) and functional magnetic resonance imaging
learning. (fMRI). These techniques are popular because they can be admin-
Despite the current lack of neurophysiological research on pro- istered to healthy adult populations and are noninvasive. Whereas
motion, one of the most promising areas of consumer neuroscience, EEG has relatively high temporal resolution and is low cost, making
neuroforecasting, is beginning to gain traction. Neuroforecasting uses it popular among neuromarketers, its spatial resolution is relatively
insights from the neural activity of a small group of subjects (~30), low (on the order of centimeters), and depth of processing shallow,
scanned using fMRI, to predict generalizable, aggregate, market-­ making differentiation between certain neural regions and pathways
level choice forecasts. Initial forecasting studies have illustrated the difficult to ascertain (see Refai & Bagozzi, 2018, for a review of the
feasibility of neuroforecasting. In these studies, neural responses to use of EEG in marketing). Conversely, fMRI is used among consumer
early market conditions are used to create a predictive model of ma- neuroscientists and clinicians for scientific research and patient diag-
ture market outcomes, and this neural model is then tested against nosis, respectively, due to its higher spatial resolution (on the order of
self-­report models using real-­world market data once the market has millimeters) and comprehensive depth of processing. Although fMRI
matured (i.e., after a sufficient passage of time). For example, Falk, has much higher costs than EEG, in terms of scanner maintenance,
Berkman, and Lieberman (2012) used medial prefrontal cortex ac- operations, and participant incentives, and lower temporal resolution
tivity to forecast advertisement call volume, and Berns and Moore (on the order of seconds), the spatial resolution allows one to discern
(2012) used nucleus accumbens activation to forecast aggregate song between cognitive pathways.
downloads. Additionally, Genevsky, Yoon, and Knutson (2017) were Other neuroscientific techniques used to study the brain and be-
able to use neural data to predict both individual-­and market-­level havior include: magnetoencephalography (MEG), positron emission
choices for crowdfunding (i.e., raising funds for a project, cause, or tomography (PET), single and multineuron recording, lesion studies,
product through small contributions from a large number of people). transcranial direct current stimulation (tDCS), and transcranial mag-
The authors found that activity in the nucleus accumbens and medial netic stimulation (TMS). Of these, PET, single and multineuron record-
prefrontal cortex was predictive of individual-­level choices, whereas ing, and lesion studies are all invasive, which limits their usefulness to
only activity in the nucleus accumbens was predictive of market-­level applied behavioral researchers, because their application on humans
internet funding several weeks later. Importantly, in the crowdfund- is difficult and potentially unethical. These techniques are often re-
ing domain, behavioral measures were not predictive of market-­level stricted to nonhuman animal research. However, tDCS and TMS are
outcomes, illustrating the unique value of neural data on forecasting. noninvasive and could prove highly useful to marketers in the future
The placement of products, whether it be on a shelf or online, is as they may serve as a means to establish the causality of previous
another element of the marketing mix that influences the success of correlational findings (i.e., corroborate finding from EEG or fMRI) and/
marketing efforts. The location of products in displays matters—some or establish effect sizes. Table 1 provides an overview of neuroscien-
locations can attract more attention than others (Pieters & Warlop, tific methods, as well as their strengths and weaknesses for marketers.
1999). Eye-­tracking studies have shown that automatic visual atten-
tional biases exist. For example, among products on a shelf, there is
a visual attentional bias toward the upper visual field (Durgin et al., 5 | FUTURE DIRECTIONS FOR
2008) and right visual field (Efron & Yund, 1996). That is, products NEUROSCIENCE IN MARKETING
place on the upper shelves and to the right, within a given category,
received longer eye fixations (i.e., were paid more attention to and As the biological influences of consumer behavior become better
subsequently chosen more frequently). In online settings, there is a understood and accepted, there is a necessity for integrative ap-
strong visual bias toward information presented in the center of the proaches across neuroscience and marketing. Additionally, technolo-
computer screen (Tatler, 2007). Among similar items presented in an gies available for noninvasively measuring biological features are
online setting, products placed in the center of the screen, versus becoming less expensive and more readily available, opening many
SHAW and BAGOZZI | 9

neurophysiological avenues to marketers for future research. In the provide basic insights into decision-making, preference formation,
succeeding sections, we discuss five key topics that we believe are choice, and patterns of behavior.
essential for the future of neuroscience in marketing: (a) a need for
fundamental integrative approaches to neuroscience and suggestions
5.1.2 | Empathy (mirror neurons)
for critical areas of consideration, (b) the examination of genetic influ-
ences on consumer behavior, (c) incorporating naturalistic-­like social Empathy is not an emotion, but rather a compound psychological
consumption contexts into consumer neuroscience research designs, trait or state composed of empathetic concern (an affective reaction),
(d) consciousness, and (e) addressing the current limitations/common taking the perspective of others (a largely cognitive theory of mind
caveats of the field. process), and self-­other differentiation (a process related to identity
and psychological distress, e.g., Decety & Lamm, 2006; Walter, 2012).
Empathy is a fundamental human mental process that is embedded in
5.1 | Need for fundamental integrative approaches
many levels of consumption. As such, neuroscience methods and tools
to neuroscience
are valuable for studying empathy. Empathy occurs when consumers
Much neuroscience research to date in marketing, and consumer be- engage in purchases of gifts, when they interact with other consumers
havior, has been fragmented by examining narrow psychological pro- in joint decision-making, when they engage in transactions with sales-
cesses (e.g., attention, memory, or emotional reactions). A need exists persons, when they learn about the abuse of animals, the plight of
for studying basic, integrative psychological processes that address people in poverty, or experience natural disasters through advertising
fundamental aspects of decision-making and involve multiple brain appeals, and many other everyday situations. Indeed, early economic
regions in a holistic way. Three basic integrative processes deserve thought by David Hume and Adam Smith stressed the role of empathy
greater scrutiny: theory of mind, empathy (mirror neurons), and be- in business (they used the word, sympathy, because empathy had not
havior combining theory of mind and empathy. yet entered the English lexicon).
Empathy is a foundation of many marketing concepts and informs
strategic management decisions. Beyond a phenomenon for study in
5.1.1 | Theory of mind
its own right, in consumption and marketing empathy has been shown
Theory of mind concerns mentalizing in communication contexts and to directly regulate the influence of perceptions of corporate (ir)re-
refers to how people infer the beliefs, thoughts, feelings, desires, sponsibility on emotional reactions toward companies and indirectly
traits, and decisions and intentions of other people (e.g., Frith & Frith, on support for companies (e.g., Xie, Bagozzi, & Grønhaug, 2015).
2008). Research in autism and other neurodevelopmental disorders Furthermore, utilizing perspectives and tools from neuroscience can
has implicated the medial prefrontal cortex, temporal poles, temporal deepen our understanding of how empathy functions as a main effect,
parietal junction, and precuneus regions of the brain in theory of mind mediator, and moderator in everyday consumption and managerial de-
processes, among other regions (e.g., Frith & Frith, 2006; Lieberman, cisions. The emotional resonance aspects of empathy, such as those
2010). Essential psychological processes involved in theory of mind reflected in feelings of compassion for the suffering of others and em-
include taking the perspective of others, inferring what others are pathetic concern and kindness toward others, have been found to be
thinking, attributing causes or reasons for one’s own behavior or the associated with regions of the brain identified as the mirror neuron
behavior of others, and aspects of moral decision-making. system (e.g., Gallese, 2003; Iacoboni, 2009). Among other regions, the
One way that theory of mind has been studied in marketing is insula, inferior frontal gyrus (pars opercularis), temporal parietal junc-
by manipulating the perception of interpersonal relations between tion, superior temporal sulcus, and amygdala have been implicated in
people while in the fMRI, and comparing to a control group in which mirror neuron activation (Dapretto et al., 2006; Decety & Lamm, 2006;
stimuli had no interpersonal content, to see whether the brain regions van der Gaag, Minderaa, & Keysers, 2007).
associated with theory of mind are activated. The intensity of theory Mirror neuron system activation has been studied, using fMRI, by
of mind neural activation has been shown to relate to self-­reports of exposing people to video clips of positive and negative facial emo-
theory of mind, thereby relating objective, third-­person evidence to tions, with neutral faces and moving geometric objects as controls. In
first-­person experiences of theory of mind processes (Dietvorst et al., one study, seeing facial expressions of emotions was found to produce
2009). Additionally, Dietvorst et al. (2009) illustrate how fMRI can be activation of such mirror neuron components as the supplemental
used in scale construction and validation. motor area, pre-­and postcentral gyrus, and pars opercularis, as well as
Theory of mind processes undergird many phenomena in mar- inferior and superior parietal lobule (Bagozzi et al., 2012). Importantly,
keting. People watching interpersonal dialogue in advertisements, intensity of activation of each of these regions was positively cor-
face-­
to-­
face exchanges by consumers and salespeople, everyday related in salespeople with customer orientation and uncorrelated
decision-making by individuals taking into account the needs and with sales orientation (both first-­person self-­reports; see discussion of
expectations of others, and group decision-making in family buying consciousness below). Customer orientation is the strategic or policy
or organizational buying centers all involve strong, pervasive theory inclination to identify customer needs and adjust one’s product or ser-
of mind processes. To the extent that marketers wish to understand vice and selling appeals to meet those needs. It is thus rooted in em-
and influence buying behavior, study of theory of mind processes can pathy. By contrast, a sales orientation is a one-­sided or selfish policy
10 | SHAW and BAGOZZI

to try to convince customers to buy one’s product irrespective of cus- associations with emotional resonance and negative associations
tomer needs (i.e., even if the customer might not need the product). with cognitive theory of mind processes. Previous psychological
A customer orientation is based more on mutuality and engenders co- research based on self-­reports of perspective taking and empa-
operation and trust to work together to satisfy joint needs, whereas thetic concern has consistently maintained that both processes
a sales orientation is based mostly on self-­interest of the seller and go together in characterizing Machiavellians (i.e., in cases in which
often uses deception and manipulation to achieve seller ends at the associations between Machiavellianism, theory of mind, and em-
expense of customers. pathy are observed, the relationship has been positive). However,
using neuroscientific methods, the research described here shows
that these two defining qualities, theory of mind and empathy,
5.1.3 | Integrating theory of mind and empathy in
can in fact be related in opposite ways in Machiavellians. Thus,
consumer behavior
these findings provide an example of how integrative neural re-
Many actions by consumers and managers involve a number of sults go some distance in resolving controversies and inconsisten-
mental processes organized in complex ways. As an example, one cies in the psychological and organization behavior literature (see
study investigated the boundary conditions of sales account man- Bagozzi et al., 2013).
agers’ self-­
interests in business relationships by studying the role Theory of mind and empathy are two comprehensive, fun-
of Machiavellianism in decision-making (Bagozzi et al., 2013). damental mental processes. Although complex and difficult to
Machiavellianism is a kind of social conduct in which a person manipu- investigate, these processes can be usefully studied using neu-
lates others for self-­gain, and is conceptually similar to psychopathy roscientific techniques. In such complex, yet fascinating areas as
and sociopathy. By studying managers in terms of theory of mind (i.e., theory of mind and empathy, opportunity exists for gaining deeper
taking the perspective of others) and empathy (i.e., resonating with knowledge about consumer behavior and decision-making through
the feelings of others with whom one interacts), it is possible to see the use of integrative hypotheses and neuroscientific techniques.
how neural processes underpin Machiavellian behavior. Such projects cannot be easily or effectively approached by tradi-
Previous self-­report research on the relationship between theory of tional experimental and survey methods relying on self-­reported
mind and Machiavellianism has been inconclusive, with studies show- responses alone.
ing both null and positive relationships (e.g., Paal & Bereczkei, 2007;
Repacholi & Slaughter, 2003; Stellwagen & Kerig, 2013). Neural evi-
5.2 | Genetic influences on neural activity and
dence, however, can be used to help resolve previous inconsistencies
behavior
in the literature, and illustrate how theory of mind and empathetic pro-
cesses differentially influence Machiavellianism. Bagozzi et al. (2013) The human genome project, which sequenced the entire human
show that individuals who display more, versus less, Machiavellianism genome, was completed in 2001 and cost ~2.7 billion US dollars
have less activation in the temporo-­parietal junctions, medial prefron- (International Human Genome Sequencing Consortium, 2001;
tal cortex, and precuneus. These are classic areas of the brain coin- Venter et al., 2001). Between the years of 2008 and 2017, the
ciding with autism and related to lower theory of mind capabilities. rate of decrease in cost of genetic sequencing, per megabase of
Hence, in comparison with non-­Machiavellians, Machiavellians can deoxyribonucleic acid (DNA), has far surpassed Moore’s Law, which
be thought to be hindered in their abilities to infer the thoughts, be- describes the doubling rate of computer power and acts as a bench-
liefs, feelings, and other psychological states and traits of persons with mark for technological success. As DNA sequencing costs become
whom they interact and observe. In other words, the basis for taking ever more affordable and genetic data becomes more accessible,
the perspective of others is weakened in Machiavellians compared to marketing researchers and practitioners will have the ability to
non-­Machiavellians. understand potential genetic influences on consumer behavior.
Additionally, Bagozzi et al. (2013) show that individuals who To date, there is a dearth of research linking genes and behavior,
display more Machiavellianism display greater activation in the particularly in the applied behavior sciences. Of specific interest
insula and pars opercularis. Interestingly, these areas of the brain to consumer neuroscientists is variation in genes coding for neu-
are part of the mirror neuron system. Thus, when compared to rochemicals. That is, because there is a pool of research exploring
non-­Machiavellians, Machiavellians reveal greater emotional res- the neural pathways that influence behavioral marketing outcomes,
onance (i.e., experience of others emotional states) to other per- it can be reasoned that variation in genes related to the synthesis,
sons with whom they might interact and observe, as illustrated by activation, transmission, or transportation molecules within a given
greater activation of mirror neuron systems. It should be noted neural pathway should too influence behavior. Of the limited re-
that this result is likely to apply to automatic emotional reactions search using genetic techniques to study behavior, most are candi-
and not necessarily conscious empathetic responses. Activation date gene studies, investigating the role of a small subset of genes
of the precuneus was also negatively related to Machiavellianism. (typically 1–20 genes). In the sections that follow, we outline two
These neural associations further support the distinct and diverg- mainstream techniques for studying the link between genes and
ing results regarding Machiavellianism, providing novel insight behavior, and review research relevant to consumer psychology
into the cognitive processes underlying Machiavellianism: positive within each methodology.
SHAW and BAGOZZI | 11

Based on the supposition that candidate genes by themselves

5.2.1 | The candidate gene approach
might not produce consistent effects, a third study proposed and
In social science, the candidate gene approach to genetic association found that, for a sample of 65 salespersons, DRD4 carriers 7R+ ver-
employs specific hypotheses about the biological function of a gene, or sus 7R− interacted with the phenotype of psychological avoidant at-
a small subset of genes, and its variants subsequent effects on a given tachment style, and DRD2 carriers of A2/A2, versus A1/A2 and A1/
behavioral phenotype. For example, a number of studies have investi- A1, interacted with avoidant attachment style to positively influence
gated how variation in exon III of the dopamine D4 receptor (DRD4) customer orientation (Verbeke, Bagozzi, & van den Berg, 2014). It is
gene affects complex behaviors, including prosocial behavior (Sasaki probably unreasonable to expect that candidate genes will have con-
et al., 2011), cultural value orientation (Kitayama et al., 2014), and sistent main effects for complex behavioral phenotypes. Rather, their
postgame testosterone level following team-­based games (Verbeke, effects, if any, may depend on environmental or psychological condi-
Belschak, Bagozzi, & De Rijke, 2015). This gene, DRD4, has a variable tions, comprising complex gene-­by-­environment interactions. In the
number tandem repeat in it, meaning that a small nucleotide sequence case of gene-­by-­environment interactions, the necessary sample sizes
repeats a variable number of times across and within individuals (since for adequate statistical power are unclear, given prespecified hypoth-
individuals have two copies of DRD4, one from each parent) and pro- eses and (typically) dramatically lower phenotypic measurement error
vides a good example of how candidate gene studies are typically con- than genome-wide approaches.
ducted. The variants of DRD4 are categorized by the number of repeats
they have. In some candidate gene studies investigating the effects
5.2.2 | Genome-wide association studies
of DRD4 variation, the 2-­repeat (2R) and 7-­repeat (7R) variants are
lumped together and compared to all other variants. This way, 2R/7R On the other end of the genetic association methodological contin-
carriers can be compared as a measured independent variable with two uum are genome-wide association studies (GWAS). Such studies use
levels (2R/7R carriers versus all other variants, i.e., 2R/7R noncarriers). genome-wide genetic variation data, conservative control variables,
Simplicity, cost, and theoretical foundation are the most import- and multiple testing correction to elucidate genetic associations with
ant advantages of candidate gene studies. The main disadvantage of behavior, often in an a-­theoretical manner. As the cost of genetic se-
many candidate gene studies conducted to date is their lack of sta- quencing has decreased exponentially, GWAS have become increas-
tistical power. Given that behavioral phenotypes are distal outcome ingly popular and mainstream. In GWAS, millions of single nucleotide
variables, relative to genetic processes, their direct effect on behav- polymorphisms (SNPs), representing variation in genes from across
ior (regardless of genetic variant type) is usually very small. Candidate the entire genome, are independently regressed on the behavioral
gene studies typically use sample sizes under 1,000 (sometimes 100 or phenotype of interest, typically using a minor allele dosage model
less). Recent statistical evidence suggests that these sample sizes are (i.e., testing whether there is a linear pattern of association between
too small to adequately power genetic association studies and many the number of alleles of the less common variant and the dependent
candidate gene studies have now failed to replicate, are likely false variable). Standard control variables, such as age, sex, the interaction
positives, and have been the subject of publication bias (Beauchamp of age and sex, and population stratification principle components
et al., 2011; Chabris et al., 2012). Importantly, as many candidate gene created by conducting a genome-wide principal components analysis,
studies have failed to replicate, candidate gene studies have become are also included in the regressions (Benjamin et al., 2012; Price et al.,
increasingly difficult to publish, and journals have been prompted to 2006).
release editorial policies detailing strict guidelines regulating the publi- The primary advantage of GWAS is that, if conducted properly,
cation of genetic association studies (see Hewitt, 2011 and Little et al., the results are highly robust and replicable. Additionally, as GWAS
2009; for examples of such policies). are a top-­down process, they can result in genetic associations that
To illustrate the difficulty of conducting replications and inter- were not anticipated and may lead to fruitful future research avenues
preting findings in candidate gene studies, consider the following. (e.g., when unexpected SNPs turn out to be significant, the biological
Two dopamine receptor genes, DRD2 and the aforementioned DRD4, function of these SNPs may not yet be known, resulting in motivation
have been studied in marketing using a candidate gene approach and for more basic fields to study these genes at a molecular level). The
attempted conceptual replication of previous findings. In one study, largest drawback of GWAS, however, is their cost, as tens or hundreds
with a sample of 65 salespersons, carriers of the 7R+ genetic variant of of thousands of individuals are needed for adequate statistical power,
DRD4 had higher customer orientation than those with the 7R− variant, and SNP arrays (which measure SNP variation) still cost several hun-
but no differences in customer orientation were found for carriers of dreds of dollars to purchase and have sequenced. Thus, at present,
DRD2 A2/A2 versus A1/A2, and A1/A1 (Bagozzi et al., 2012). Another GWAS can only be conducted with large national or multinational re-
study looking at main effects of variants of DRD2 and DRD4 for a search grants, which are typically awarded to research consortiums
sample of 144 salespersons found opposite results: carriers of certain across multiple institutions (current GWAS frequently have over 50
DRD2 variants had significant indirect effects on new product selling authors on a publication), and their feasibility for consumer neurosci-
through performance of the task of knowledge brokering, whereas car- entists, and marketing academics in general, is limited. Additionally,
riers of certain DRD4 variants, which had previously been associated GWAS to date have been limited in the quality of phenotypes that
with customer orientation, did not (van den Berg et al., 2014). can be used to test theoretical processes. Table 2 provides a summary
12 | SHAW and BAGOZZI

TABLE 2 Summary of pros and cons of candidate gene and GWAS approaches to genetic association

Candidate gene studies GWAS

Advantages Disadvantages Advantages Disadvantages

• Theoretically driven • Lack of statistical power and • Robust, replicable results due • A-theoretical—significant SNPs
• Potential biological relevance replicability to high methodological rigor can have no meaning initially
• Relatively inexpensive • High likelihood of false (control variables and multiple • Extremely expensive
(compared to GWAS) positives and inability to rely on testing correction) • Lack of relevant data/
• Can study a wider variety of past findings in the literature as • Becoming more prevalent in behavioral phenotypes for
constructs—researcher has they may be underpowered top-tier journals/acceptable social science (most genetic
greater control of DV’s and is • Publication standards seem to standard of research consortium are primarily
actively involved in data be moving away from candidate concerned with medical
generation process gene studies phenotypes)
• Can be used to make simple, • Computationally intensive
easily interpreted and analyzed
study designs

of the advantages and disadvantages of candidate gene and GWAS the study used a three-­way interaction between each of three can-
approaches to genetic association studies. didate genes, DRD4, catechol-­O-­methyltransferase (COMT), and the
oxytocin receptor gene (OXTR), adult psychological attachment styles
(avoidant, anxious, or secure; Harms, 2011), and job stress. Results
5.2.3 | Gene-­by-­environment interactions
of this study indicated that among salespersons with an avoidant at-
A gene-­by-­environment interaction (G × E) occurs when two or more tachment style, DRD4 7R carriers are highly motivated in situations
genotypes (at a given locus) respond differently to two or more differ- of high role conflict. In contrast, among salespersons with a secure
ent environments. A G × E interaction is a “situation in which genetic attachment style, COMT Met/Met variant carriers are more motivated
effects connected to a phenotype are dependent upon variability in than other COMT variants in situations when there is low role conflict.
the environment, or when genes modify an organism’s sensitivity to Finally, Bagozzi and Verbeke (2018) provide evidence that OXTR had a
environmental features” (Seabrook & Avison, 2010, p. 1277). Note main effect on job satisfaction; whereas an anxious attachment style
that the meaning of “environment” can encompass a situational ma- and/or higher role conflict decreases job satisfaction, carrying certain
nipulation or a phenotype such as a psychological trait or state. That variants of OXTR predisposes salespersons to greater job satisfaction.
is, the observed phenotype when an individual has genotype A only Given the history of false positives in candidate gene approaches,
differs from the observed phenotype of an individual who has geno- it is absolutely essential that hypotheses in G × E studies be prespec-
type B if the phenotypes are expressed in a given environment. ified, and all results, including nonsignificant findings, be disclosed so
Gene-­by-­environment studies typically use the candidate gene that meta-­analyses can later be conducted. Additionally, replication
methodology, but, given an emphasis on the interaction as the primary studies must be conducted, and all studies should be conducted ac-
contribution, require a richer foundation in social theory (than main cording to the strict guidelines in Hewitt (2011) and Little et al. (2009).
effect genetic association studies) to drive the environmental compo- The caveats of G × E studies are similar to those of candidate gene
nent. Given the lack of feasibility of GWAS in marketing at present, studies (Ordovas & Tai, 2008). First, G × E studies suffer from low
G × E studies could provide early promise for marketers interested power and publication bias. Second, just like genetic factors, envi-
in the genetic influences of consumer behavior. Such potential exists ronmental factors are co-­linear with other environmental factors, so
because marketers utilizing neurophysiological measures are well-­ establishing causation is difficult and even significant results should
versed in consumer behavior and economic theory, which can provide be analyzed with caution. Third, although genotyping provides precise
the rich theoretical foundation necessary for G × E studies. Gene-­by-­ measurement, measurement of complex behaviors and behavioral
gene interactions can also be determinative of behavior (e.g., Verbeke, phenotypes has significant measurement error (an issue that is per-
Bagozzi, van den Berg, Worm, & Belschak, 2016). vasive throughout behavioral research but does not receive enough
The first high profile G × E publication was that of Caspi et al. attention).
(2002), in which variants of the serotonin-­transporter-­linked polymor-
phic region (5-­HTTLPR; gene) were shown to interact with life stress
5.3 | Social contexts and neuroscience
(environment) to influence depression. Despite controversy over the
validity and replicability of findings in Caspi et al. (e.g., Risch et al., Many consumer decisions are made within a social context (e.g., pur-
2009), this work spawned a great deal of G × E research in adjacent chases made with others; buying in interaction with salespeople), or
fields, including marketing. For example, Bagozzi and Verbeke (2018) with a social context looming (e.g., purchases that are made online
conducted a study on how salespersons’ hedonic systems (i.e., the but the product is consumed in public). Social settings have dramatic
neural reward circuit founded in wanting and liking) mediate the rela- implications for choice and behavior. Yet, much laboratory research is
tionship between genotype and essential work-­related tasks. Crucially, conducted in isolation from social context. For this reason, Pozharliev,
SHAW and BAGOZZI | 13

Verbeke, and Bagozzi (2017) argue for the importance of the inclu- with environmental factors and psychological variables, will be critical
sion of social contexts in studies using neurophysiological measures. in providing insight into contingencies that undergird the facilitating
Of particular relevance to understanding how social situations influ- and inhibiting forces in social behavior.
ence consumption and other marketing relevant research areas is how
the individual perceives others’ thoughts about the situation and uses
5.4 | Consciousness
this information to influence their own thoughts. Research in neuro-
science on theory of mind, empathy, and other processes (outlined Many neuroscience studies in consumer behavior and marketing, and
previously) can be used to lay the foundation for appreciating social the wider neuroscience literature, begin with a manipulation of con-
consumption contexts in marketing. Pozharliev, Verbeke, van Strien, ditions designed to induce changes in mental states or events, and
and Bagozzi (2015) found, for example, that greater attention was al- then measure activation of relevant brain regions by such methods as
located to viewing luxury brands and greater motivational/emotional fMRI as the primary dependent variables of interest. Such an approach
reactions occurred for people observing such brands when in the implicitly focuses on psychological processes as third-­person phe-
presence of another person versus alone. These attentional and emo- nomena, which is consistent with the prevailing point of view of re-
tional differences in social situations can largely be explained by social ductionism held by most neuroscientists and researchers in basic and
facilitation theory, which is one of the views that neuroscience studies applied disciplines using neuroscience methods. Typically, a variant of
in consumer research could utilize to study social processes, rather functionalism underpins such approaches (Bagozzi & Lee, 2017).
than limiting research to observing individuals in isolation. Such reductionist approaches address what can be termed as folk
As an example of how consumer neuroscientists can leverage novel psychology processes, which are regarded as immature vestiges of
techniques while also incorporating social context, Bagozzi, Stornelli, evolving disciplines, and proceed from the assumption that physical
Verbeke, Bagozzi, and Chakrabarti (2018) found that both empathetic processes will eventually replace folk psychology. By contrast, some
concern and perspective taking are influenced by the interaction be- researchers presume that first-­person processes (singular and plural)
tween incidental human touch and the COMT gene. That is, (yet to be and second-­person processes are those that allow people to achieve
published study) a G × E interaction occurred such that empathy in- meaning in their lives and function at a different level of discourse
creased when subjects were touched briefly on the shoulder (a highly than presumed by third-­person perspectives. In contrast to reduction-
social context) and possessed the Met/Met variant of COMT, versus ist approaches, first-­and second-­person processes cannot be reduced
not being touched and having Met/Val or Val/Val variants. Empathy to simple physical/chemical processes between neurons. Hard core re-
then leads to trust as a psychological state, and trust, in turn, influ- ductionists, of which the vast majority of researchers in neuroscience
enced actual behavior in the economic centipede game. can be classified (if not explicitly, then at least by the implicit point
Another (yet to be published) study illustrating how social con- of view taken in their research), follow a metaphysical orientation,
text can be incorporated into neurophysiological research in market- which can be termed reductive functionalism, or even eliminativism.
ing investigated competition and cooperation in the centipede game. Conversely, researchers retaining a role for subjective interpretation
Bagozzi, Stornelli, Verbeke, Bagozzi, Chakrabarti, et al. (2018) found in their research participants follow emergentism, nonreductive func-
that oxytocin interacts with psychological attachment styles to in- tionalism, classic dualism, or naturalistic dualism (see Bagozzi & Lee,
fluence empathetic concern. In this gene-­by-­phenotype interaction, 2017; for a review and analyses of the different points of view). A rap-
a positive association was found between oxytocin and the anxious idly developing, more-­or-­less intermediary position claims that subjec-
attachment style to influence empathetic concern, such that subjects tive experiences are produced by physical processes in the brain (see
with the GG variant of a SNP within the oxytocin gene, but not AG and Bagozzi & Lee, 2017, for a discussion and illustration of the latter). For
AA variants, had greater empathetic concern, the greater the anxious example, subjective pleasure has been argued to be produced by un-
attachment style. Likewise, a positive interaction occurred between conscious neuroprocesses in the wanting and liking systems.
oxytocin and the avoidance attachment style, such that subjects with Some researchers have advocated that to represent first-­and
the GG variant within the oxytocin gene, but not AG and AA variants, second-­person processes within a neuroscience context, explicit sub-
had greater empathetic concern, the greater the avoidant attachment jective reports or interpretations must be included in any neuroscience
style. Finally, secure attachment style had a main effect on empathetic study (Bagozzi & Lee, 2017). For example, theory of mind, empathy,
concern, while oxytocin gene variant neither interacted with secure and Machiavellianism neural substrates have been successfully related
attachment nor had a main effect. The above-­mentioned oxytocin by to psychological scales shown to validly capture theory of mind, em-
anxious and oxytocin by avoidant interaction effects had significant pathetic, and Machiavellianism processes, respectively (Bagozzi et al.,
conditional indirect effects on actual game behavior through empa- 2012, 2013; Dietvorst et al., 2009). Such approaches represent mul-
thetic concern and trust, whereas secure attachment affected actual tilevel investigations in which different levels of analysis (e.g., activa-
behavior through the serial mediation of empathetic concern and trust. tion of regions of the brain and self-­report measures) correspond to
Emerging research, such as that detailed investigating the effects manipulations shown to reflect underlying theorizing and have been
of neuromolecule-­related genetic variants and hormonal processes, related formally through correlation or regression analyses. Alternative
shows how social contexts can be integrated into consumer neurosci- approaches to multilevel investigations of consciousness can be done
ence. Methods and tools from consumer neuroscience, in conjunction using concepts such as supervenience and emergence. Bagozzi and
14 | SHAW and BAGOZZI

Lee (2017, Figure 8) develop the arguments supporting such per- activity appears to be more meaningful than once thought, and in-
spectives, as well as outline a general philosophy of mind framework trinsic/endogenous or default mode brain activity plays a role in
applied to folk psychology explanations of action, grounded in neuro- stimulus-­based responses. Resting brain activity has been shown
science and subjective measurements. to utilize the same amount of bodily energy as stimulus-­
based
Researchers using neuroscience methods and tools must come to responses (Raichle & Mintun, 2006), which implies that stimulus-­
grips with the qualitative or subjective experiences of the phenom- response brain activity is a redistribution of energy rather than a
ena under study if they are to account for human experience and the heightening of energy use, per se (as event-­based designs often
meaning it has for the people having such experiences. The fullest ex- imply). Additionally, prestimulus endogenous brain activity appears
planations of consumer and managerial behavior, it may be claimed, to influence attention, perception, memory, and ultimately decision-­
will require frameworks integrating neuroscience measurements with making, which in turn interacts with stimuli to create significant
subjective interpretations; the most fruitful and insightful conclusions variability in the responses of event-­based designs (Braeutigam,
will likely be drawn when methods are combined, such that the short- Lee, & Senior, 2017; Huang et al., 2017). For this reason, consumer
comings of one methodology are offset by the strengths of another neuroscience could benefit from the incorporation and appreciation
(Venkatraman et al., 2015). of prestimulus endogenous brain activity and a lesser reliance on
event-­based designs.
Reverse inference is a logical fallacy that is believed to be ever-­
5.5 | Common caveats of consumer neuroscience
present throughout neuroscience and subsequently across applied
Given the novelty of research and practice combining neuroscience fields such as consumer neuroscience and neuromarketing. Poldrack
and marketing, several key caveats are worthy of discussion. First, (2006) goes as far as to call the issue of reverse inference in neuro-
there is currently an fMRI-­biased methodological dogma through- science an “epidemic of reasoning.” A reverse inference occurs when
out consumer neuroscience studies. Second, event-­based study de- one reasons backwards from observed brain activity to cognitive pro-
signs fail to appreciate non-­stimulus-­based neural responses. Third, cess (Poldrack, 2006). That is, when conducting a study aimed at in-
the issue of reverse inference should be carefully considered. Finally, vestigating a given cognitive process, brain area X is observed to be
consumer neuroscience suffers from perceptions of low reliability and active. In another study aimed at investigating a different cognitive
generalizability. process, brain area X is also observed to be active, during a different
As detailed in the Neuroscience Methods and Tools section (and task. Reverse inference occurs when the first study concludes that
Table 1), neuroscientists have a wide variety of methodological ap- the cognitive process from the second study is occurring, because the
proaches at their disposal to study the brain and behavior. Thus far in same brain area, X, was observed to be active, even though the second
marketing, however, fMRI studies have dominated published works. cognitive process was not initially hypothesized or intended to be part
Although fMRI has been the stable workhorse of research in consumer of the experimental design of the first study. Such reasoning is prob-
neuroscience, there is currently perhaps too much reliance on fMRI lematic because one is inferring that a cognitive process is occurring,
within the field; many designs and concepts in consumer research do even though it was not directly observed (Lee, Brandes, Chamberlain,
not necessitate fMRI, and fMRI is not without its drawbacks, which & Senior, 2017).
primarily include multiple comparisons (Vul, Harris, Winkielman, & Finally, a classic lay critique of neuroscientific findings is that
Pashler, 2009) and systematic software issues (Eklund, Nichols, & they are unreliable, do not generalize, or have a high likelihood of
Knutsson, 2016). Many other neuroscientific techniques are available false positives due to the fact that they use smaller sample sizes than
to researchers in marketing and should be utilized for their unique ad- typical behavioral studies. These claims, however, are largely unin-
vantages based on the nature of the research question and for the goal formed and can be dispelled. First, neuroimaging studies are typically
of establishing convergent and discriminant validity of concepts and within-­subject, so sample sizes within a given treatment cell, usu-
processes across different methods. ally 30–50 participants, are comparable to behavioral studies with
Event-­or stimulus-­based designs are traditional controlled ex- between subject designs. Second, in terms of generalizability, neu-
perimental designs in which participants are exposed to a stimulus, roimaging studies typically have the same nonrepresentation prob-
and brain activity is measured in response to, or concurrently, with lems that other studies within marketing have, which is a reliance
that stimulus and a behavioral response. Such designs are popular on Western, educated, industrialized, rich, and democratic samples
because they follow the logical temporal sequence with which lay (i.e., samples largely collected using undergraduate student partici-
beliefs hold that mental processes occur (i.e., an event occurs, and pants; Henrich, Heine, & Norenzayan, 2010). However, as mentioned
the participant responds to that event, in that order). Likewise, most previously, and contrary to critical lay beliefs, evidence from neuro-
philosophy of science perspectives on causality follows such an in- forecasting research suggests that neural data may actually be more
terpretation (e.g., Dowe, 2008; Schaffer, 2016; Woodward, 2016). generalizable to the population than behavioral data alone. Lastly,
However, such designs have been criticized for characterizing the the threat of false positives in neuroscientific research is valid; how-
brain as a reactive system. That is, event-­based designs impose a ever, such is the case for research from across all of the behavioral
temporal order on how the brain processes information, which some sciences. Such issues of replicability are not unique to neuroscience
evidence suggests is not always the case. Namely, resting state brain and present a significant challenge to scientific progress as a whole.
SHAW and BAGOZZI | 15

To combat opportunistic findings, we, as scientists, must uphold Bagozzi, R. P., Stornelli, J., Verbeke, W., Bagozzi, B. E., & Chakrabarti, A.
standards of quality and integrity in research; replication studies and (2018). Molecular genetics, phenotypes, and the explanation of compe-
tition and cooperation in economic games. Unpublished working paper.
meta-­analysis should be valued highly for their contributions toward
Bagozzi, R. P., Stornelli, J., Verbeke, W., Bagozzi, B. E., Chakrabarti, A., &
scientific progress. Vu, T. (2018). Competition and cooperation in centipede games: Biology
matters, but so do the environment and self-consciousness. Unpublished
working paper.
Bagozzi, R. P., & Verbeke, W. J. M. I. (2018). Genetic and psychological un-
6 | SUMMARY AND CONCLUSIONS derpinnings of salesforce behavior and their role in generating task actions.
Paper under review.
In this article, we have presented a selective overview of neurosci- Bagozzi, R. P., Verbeke, W. J. M. I., Dietvorst, R. C., Belschak, F. D., van
den Berg, W. E., & Rietdijk, W. J. R. (2013). Theory of mind and em-
ence and marketing. In doing so, we reviewed foundational research
pathic explanations of Machiavellianism. Journal of Management, 39(7),
from neuroscience on which consumer research builds and discussed 1760–1798.
exemplary contributions from consumer neuroscience. Next, the neu- Bagozzi, R. P., Verbeke, W. J. M. I., van den Berg, W. E., Rietdijk, W. J. R.,
roscientific tools available to marketers were briefly discussed, and Dietvorst, R. C., & Worm, L. (2012). Genetic and neurological founda-
tions of customer orientation: Field and experimental evidence. Journal
several avenues for future research were considered, including the
of the Academy of Marketing Science, 40(5), 639–658.
need for integrative approaches across theories in consumer psychol- Beauchamp, J. P., Cesarini, D., Johannesson, M., van der Loos, M. J. H. M.,
ogy, genetic association studies, and common limitations of using neu- Koellinger, P. D., Groenen, P. J. F., … Christakis, N. A. (2011). Molecular
roscientific methods. genetics and economics. Journal of Economic Perspectives, 25(4), 57–82.
Benjamin, D. J., Cesarini, D., Chabris, C. F., Glaeser, E. L., Laibson, D. I.,
With a critical mass of researchers conducting work at top aca-
Guonason, V., … Lichtenstein, P. (2012). The promises and pitfalls of
demic institutions and publishing in top-­
tier marketing and non-
genoeconomics. Annual Review of Economics, 4(1), 627–662.
marketing journals, the field of consumer neuroscience is poised to van den Berg, W. E., Verbeke, W., Bagozzi, R. P., Worm, L., de Jong, A. A.,
continue to develop, expand, and add value to the field of marketing & Nijssen, E. (2014). Salespersons as internal knowledge brokers and
as a whole. Neuroscientific findings provide unique information about new products selling: Discovering the link to genetic makeup. Journal of
Product Innovation Management, 31(4), 695–709.
the consumer that cannot otherwise be observed using traditional be-
Berns, G. S., & Moore, S. E. (2012). A neural predictor of cultural popularity.
havioral approaches. The use of neuroscientific theory and methods, Journal of Consumer Psychology, 22, 154–160.
and more broadly, psychophysiological approaches, has added and Berridge, K. C. (1996). Food reward: Brain substrates of wanting and liking.
will continue to add, considerable unique value to the field of market- Neuroscience and Biobehavioral Reviews, 20(1), 1–25.
Berridge, K. C. (2009). Wanting and liking: Observations from the neurosci-
ing. Ultimately, neuropsychological findings are essential to scientific
ence and psychology laboratory. Inquiry, 52(4), 378–398.
pursuits attempting to unravel the foundational processes underlying Berridge, K. C., & Kringelbach, M. L. (2015). Pleasure systems of the brain.
consumer behavior, and to the progression of scientific knowledge in Neuron, 86(3), 646–664.
marketing. Berridge, K. C., Robinson, T. E., & Aldridge, J. W. (2009). Dissecting com-
ponents of reward: ‘liking’, ‘wanting’, and learning. Current Opinion in
Pharmacology, 9(1), 65–73.
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