Understanding Consumer Behavior

By Kirsten Shaw

When watching an NFL game on TV, how much attention do you pay to the ad that appears on one half of the screen during a break in the action?

Motivating consumers is a challenge that has always been at the heart of marketing. In today’s environment, the ability to understand what awakens a potential customer’s interest is more essential than ever. Never have there been more platforms to reach customers, but while this brings opportunity, it also means increased competition to capture attention.

In response, new research methods have emerged to help businesses better test market their products and campaigns. Companies are turning to biological data to learn more about what grabs audiences’ interest and how they respond to that interest.

Focusing on these procedures, two members of the College of Business marketing faculty have planted seeds for a research lab that will put Mississippi State at the forefront of behavioral research. Both Dr. Mike Breazeale and Dr. Adam Farmer had previously been involved in establishing neuromarketing labs at other institutions – the University of Nebraska at Omaha and the University of Kentucky, respectively. When they became colleagues on the MSU marketing faculty, their shared interest in the incipient field of biometrics led to MILO – the MSU Market Innovation Lab and Observatory.

“It will be the world’s largest biometric research facility,” states Breazeale, Assistant Professor of Marketing and Co-director of the lab.

MILO will enable researchers to delve into physical and emotional responses to produce comprehensive views into consumer motivation. The results will be more objective than what can be gleaned through interviews and surveys.

“People try to answer honestly, but they don’t always know why they think the things they think or how to articulate what they’re feeling,” observes Farmer, MILO Co-director and Assistant Professor of Marketing. “And sometimes they manage their impressions subconsciously, to what they think they should be.”

MILO will be equipped with stations that incorporate several types of technology, produced by Bostonbased iMotions. Eye tracking and facial expression recognition software will identify where on a computer screen a person is looking, and for how long. GSR – galvanic skin response – will read subtle changes in perspiration that can indicate a change in interest or excitement level. EEG equipment will show what areas of the brain “light up” in reaction to a focused-on item or message. Special goggles will allow the eye tracking research to extend into the field by showing what products or displays are observed by a wearer in a store.

Each technology adds a layer of understanding. The eye tracking shows what is being viewed. Facial expression indicates the emotional response to it, and GSR can show the intensity of that emotion. EEG reveals what cognitive processes are going on and in which area of the brain they are occurring – virtually, what someone is thinking.

It is easy to see how insights provided by this kind of data would be invaluable to manufacturers, and major corporations are indeed making use of it.

The NFL, for instance, has employed biometrics to gauge the attention paid to the ads that run in split screen alongside game broadcasts. The research has improved the organization’s understanding about viewer multitasking and how effective it is.

“We’re thrilled to see the rapid adoption of biometric research being done by a wide range of commercial clients around the world, from Expedia conducting advanced UX [user experience] research to BMW using biometrics to measure driving comfort and performance,” comments Peter Hartzbech, CEO and founder of iMotions. “This adoption would not be doable without university labs paving the way and equipping students with the correct framework and tools such as biometrics to investigate human behavior through sensors and technologies that complement each other to get the fuller picture.”

He continues, “For the students themselves, having vast biometric research experience while studying represents an opportunity to create a unique profile when transitioning into the commercial sphere.”

Equipping MSU business students for the marketplace is a primary goal of MILO. Breazeale and Farmer are both certified to teach the use of the equipment and interpretation of results. Once the lab is fitted out, they plan to offer a concentration in marketing research. Long term, they hope to add a master’s degree.

Farmer notes that he has already begun incorporating MILO into his Marketing Research course, providing examples of biometric research data, what the results can look like and how they can be interpreted.

“Even in its infancy, MILO is already adding value for our students,” he says.

The aim is to open the lab in 2018, with 24 research stations and several sets of goggles. The first station has been acquired to demonstrate the equipment not only to students but also to faculty and potential donors.

Another asset already in place is a large subject pool, with students being encouraged to participate. Funding is currently being sought for the $2.5 million lab. It will be an investment that benefits the entire University.

“Any discipline on campus that requires behavioral research could use it,” says Breazeale. “We met with the entire College of Business faculty to talk to them about MILO’s capabilities, and several researchers from various departments already have projects that can be started with this first station.”

The technology will provide Breazeale new ways to expand his research on how terrorist organizations successfully use branding strategies to promote their causes – and on how the impact of those strategies might be reduced.

Farmer looks forward to pursuing his interest in political ideology – learning how liberals and conservatives differ in their decision-making processes, not in the voting booth but in everyday choices like buying a car.

“We’ll be able to collaborate across departments, too,” he notes.Another group sure to benefit is student entrepreneurs.

“In recent years, the E-Center has made adjustments to our program to push students to talk to potential customers and to firmly understand their market before blindly jumping into business,” says Eric Hill, Director of the MSU Center for Entrepreneurship and Outreach. “MILO will be a fantastic tool where our students can collect hard data and insights into their consumers’ behaviors to better answer the question, ‘Do you think, or do you know?’”

Once these entrepreneurs have the reinforcement of knowing for themselves that there is a market for their businesses, they will also be able to demonstrate this convincingly to potential investors by providing objective data gathered at the lab. MILO can help them in specific areas as well, such as gauging response to product packaging.

MILO’s potential reaches beyond campus. Breazeale and Farmer foresee demand from outside companies. While the priority will be MSU students and researchers, the sizeable lab will also have enough capacity to conduct paid research for local, regional and national clients. Proceeds from corporate research would help fund the ongoing operation of the lab.

“The interaction with outside companies will also expose our students who are working there to potential employers,” notes Breazeale.

It could mean economic benefits to the state, too. Mississippi companies can become more informed and efficient by using the lab, and MILO can raise the state’s profile among outside corporations.

Biometric consumer research is a fast emerging field. Corporate demand for this research and for employees qualified to do it is on the rise, and universities are responding. By establishing a lab of this size and quality – and doing it now – MSU will command a powerful reputation nationwide.

“MILO will catapult our world class College of Business and highly coveted Center for Entrepreneurship and Outreach into a new sphere of excellence,” states Dr. Melissa Moore, Chair of the Department of Marketing, Quantitative Analysis and Business Law. “This superlative facility places the COB on a trajectory to reshape the experience of undergraduate and graduate students across all departments in the College and all across campus, building a reputation of distinction in practical business analytics and research.”

For more information about MILO contact Dr. Mike Breazeale at mbreazeale@business.msstate.edu or Dr. Adam Farmer at afarmer@business.msstate.edu.