How Apple and Nike have branded your brain | Your Brain on Money | Big Think

How Apple and Nike have branded your brain | Your Brain on Money | Big Think

Introduction

Coke is just soda, Tylenol is just acetaminophen, and Levi's are just jeans. Still, consumers go out of their way to select these specific brands over others. An economist might wonder: How is it possible that a rational consumer would be willing to pay more for exactly the same thing?

The Power of Brands

We love to think of ourselves as rational beings, but that's not how it works. A famous study done by colleagues at Duke University flashed either the Apple logo or the IBM logo to two randomized groups of participants. The study found that after being subliminally exposed to the Apple logo compared to the IBM logo, participants performed better on creative tasks.

The argument is that Apple has been telling you a story over and over again: Apple is the brand for hip, cool, fun, creative people. This is the true power of brands. They can influence our behavior in ways that extend way beyond the point of sale.

Influence on Rational Spending Decisions

So, to what degree can the influence of brands wreak havoc on our ability to make rational spending decisions?

This is your brain on money.

(* Image or Video Thumbnail *)

Identity and Marketing

Americus Reed, who studies identity and marketing at the University of Pennsylvania, states that when we make choices about different brands, we're choosing to create an identity. When I put that shirt on, those shoes, or those jeans, someone will form an impression about what I'm about. If I'm choosing Nike over Under Armour, I'm choosing a different way to express affiliation with sports. Nike is about performance, while Under Armour is about the underdog.

You have to choose which conceptual pathway is most consistent with where you are in your life. Once a consumer makes that choice, their relationship with a brand can deepen to the point where they identify with the brand like family. And once you identify with a brand, it can shape the way you behave.

Brand Loyalty and Defense

It's really interesting because if someone talks bad about that product, brand, or service, loyal customers will be the first to defend it. Why? Because an attack on the brand is an attack on themselves.

Michael Platt, a professor of neuroscience, marketing, and psychology, has research demonstrating how our perception of brands influences our decisions. There's an idea in marketing that we relate to brands in the same way we relate to people. It's like, "I love this brand" or "I hate this brand."

Research Findings

Platt and his team observed the brains of iPhone users and Samsung Galaxy users with an MRI machine while they heard good, bad, and neutral news about Apple and Samsung. Apple customers showed a brain empathy response toward Apple that was exactly what you'd see in the way you would respond to somebody in your own family. Strangely, Samsung users didn't have any positive or negative responses to good or bad news about their brand. The only evidence was reverse empathy for Apple news, meaning if the Apple headline was negative, their brain reflected a positive response.

These results indicate that Apple has completely defined the market. Samsung customers seem to be buying Samsung only because they dislike Apple. Interestingly, Samsung users didn't report feeling the results that the MRIs showed. What was happening in their brains and what they reported feeling toward Apple and Samsung were totally different.

Subconscious Influence

Most people don't realize that they are subconsciously choosing brands because those brands have some self-expressive value. The implications of this are profound. As we understand more about this influence, we need to think deeply about the ethical, legal, and societal implications.

Making Informed Choices

As consumers, what can we do to make informed choices? The best thing we can do is be aware of the influence that brands hold. It's important to always pause and think, "Why am I buying this product?"

Brands Aren't Going Anywhere

Brands aren't going away. Even people who say they're not into brands are simply affiliating with an anti-brand brand. Identity is a fundamental need for support systems. Perhaps it was the church, the community, or other institutions that existed before. Now, brands have stepped in as pillars of our identity, and we should view this in a positive light.

Keywords

• Brands
• Rational Spending
• Identity
• Marketing
• Consumer Behavior
• Apple
• Samsung
• Neuroscience
• Ethical Implications
• Informed Choices

FAQ

1. How do brands influence our behavior? Brands influence our behavior by creating strong, consistent narratives that resonate with our identities. For example, Apple markets itself as a brand for creative, cool, and fun people.

2. Why might consumers pay more for branded products when they are essentially the same as cheaper alternatives? Consumers may pay more for branded products because they identify with the brand and its values, making it a self-expressive choice rather than just a transaction.

3. What did the Duke University study reveal about brand influence? The study showed that participants performed better on creative tasks after being subliminally exposed to the Apple logo compared to the IBM logo, suggesting that Apple's brand narrative affects cognitive performance.

4. How do consumers react to negative news about their favorite brands? Consumers who identify strongly with a brand may show brain responses similar to empathy they would feel for a family member. Conversely, brand detractors may experience reverse empathy.

5. What should consumers do to make more rational spending decisions? Consumers should be aware of the influence brands have and consciously question why they are choosing specific products over others. This can help mitigate the subconscious pull brands exert on purchasing decisions.

By observing the intricate relationship between brands and consumer behavior, we can better navigate our purchasing decisions and understand the profound impact of branding on our lives.