Is there a role for neuroscience in business?

Is there a role for neuroscience in business?

Believe it or not, neuroscience (in its widest context) has been around for quite some time. For centuries we have been interested in understanding the workings of the human brain. Up until the 20th Century, neuroscience was the study of the nervous system within the scientific disciplines that make up biology. After this time, it began to become established as its own field. Today, the neuroscience is often applied to study and build an understanding of human behaviour (not just the workings of the brain). Of particular interest to businesses is a relatively recent area of neuroscience known as cognitive neuroscience, which brings together the traditional disciplines of cognitive psychology and neuroscience – looking at the cognitive processes that shape behaviour and relating them to underlying theories of brain function.…
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How does anchoring affect consumer behaviour?

How does anchoring affect consumer behaviour?

What happens to your brain when you walk into a shop and are faced with a huge, ultra-high definition, 3D television at the startling price of £14,899? Assuming you actually need a new TV, you might dismiss this as ridiculous; laugh at the spendthrift fools who might buy it. And then, very sensibly, you start looking at more reasonably priced options, maybe at around the £1,500 mark. You have just been successfully manipulated. Welcome to the world of anchoring. The above is precisely what happened to me, and it happens to all of us. Anchoring is a type of cognitive bias where the mere presence of an initial number can have a disproportionate influence on subsequent decision making. The outrageous price of the TV serves as an anchor that nudges…
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Does brain-training ruling affect neuromarketing?

Does brain-training ruling affect neuromarketing?

Lumos Labs, who make the game Lumosity, were recently fined $2m because they did not have sufficient scientific evidence to back up their claim that playing the game provided brain health benefits such performing better at work and protecting against cognitive decline. “Lumosity preyed on consumers’ fears about age-related cognitive decline, suggesting their games could stave off memory loss, dementia and even Alzheimer’s disease. But Lumosity simply did not have the science to back up its ads,” Jessica Rich, director of the US Federal Trade Commission’s bureau of consumer protection, said in a statement. The FTC was specifically targeting companies developing medical apps with dubious claims of health benefits, but could this ruling have broader implications? If governments start reviewing the scientific evidence behind marketing claims, how well will neuromarketing…
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