Journal of Management Research and Analysis

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Get Permission Panigrahi and Arunima De: Dopamine manipulation and its role in effective advertising


Introduction

To make efficient campaigns, marketers need a deep understanding of consumer psychology surrounding dopamine – or the “feel-good” hormone. Dopamine is a neurotransmitter in very high concentrations, which influences the way your brain rewards itself. Dopamine also Incites you to move and play an important fullness role known as rewarding by releasing it when pleasurable events happen

Dopamine and the Reward System

According to Berridge and Robinson (2016), the main dopamine circuits for reinforcement learning and reward processing are the mesocortical and mesolimbic pathways. The latter are activated by rewards such as food, money etc., or non-material stimuli like social affirmation, anticipation etc., thus prompting behaviour that will eventually pay off. Many advertising strategies build on this biological assumption that dopamine tends to be excited in order to capture attention and increase customer engagement. 1, 2, 3, 4, 5

Emotional Triggers in Advertising

These are effective tools in commercial communications: moments of joy, with people filled with almost rainbow-like happiness energized by some soulful shout, and all that lovely stuff. Positive emotions such as joy, excitement, and nostalgia. (Dooley, 2012) All these make people feel good — and when people feel good, they think better of their surroundings. Producing such responses rapidly overcomes inhibitory mechanisms that might otherwise make it difficult to sell even fantastic new products. Advertisements that activate the brain's emotional and sympathetic side, as the viewer waits for a satisfying ending, such as teasers and cliffhangers, are known to stimulate interest and raise dopamine levels in viewers.

Reward Systems and Consumer Incentives

Advertisements that offer physical prizes can quickly trigger the brain's reward system. Common strategies like discounts, giveaways, gamified experiences, and loyalty programs utilize this approach. A prime example is the Starbucks Rewards Program, where customers earn points on their purchases that can be exchanged for free items. This satisfies immediate desires and encourages ongoing engagement by creating anticipation for future rewards. 6, 7

Customization and Focused Promotions

Personalized advertising powered by data analytics increases engagement and relevancy, which increases dopamine release. When advertisements are tailored to each person's preferences and behaviour, the marketing encounter seems more significant and intimate. Interactive materials like games and augmented reality experiences further engage consumers by providing a dynamic and interactive advertising environment.

Storytelling in Advertising

Narrative-driven advertising, also known as storytelling, is a powerful tool for establishing an emotional connection with customers. By telling engaging stories that resonate with the audience, brands can create strong emotional bonds and even life-changing experiences through the release of dopamine.

One great example of this is Nike's "Just Do It" ad campaign, which uses motivational storytelling to inspire viewers to take action and connect with the brand on a deeper level (McClure et al., 2004).8, 9

Visual and Auditory Stimuli

The audio and video must have a high standard to crack and tug at the heartstrings of the viewer and keep going. One of the means of doing this is introducing the spectrum of such lovely bright colours, chilling graphics, and good music to the ad that would give someone a bodily experience of happiness which assures no stress during their spare time. The viewers are supposed to be satisfied with the results of the headphones not only for pleasure but also for the development of such qualities as creativity and the ability to concentrate.

Timing and Frequency of Advertisements

To keep viewers hooked but not immune to ads, it is important to carefully schedule them. The most effective ads are those that are aired during periods of high consumer interest. This is in addition to the fact that maintaining curiosity while avoiding fatigue and diminishing returns on commercial rates may be achieved through overexposure (Ariely, 2008).

Authenticity and Trust

Advertisements that are honest and reliable are more likely to be noticed and read. As a whole, the advertisement does better when it convinces through being open and speaking to the people. Dooley (2012) claims that such businesses that show genuineness and steadfastness are usually liked by customers who follow them leading to stronger emotional ties that increase brand loyalty.

Purpose of the Study

The examination involves different strategies of advertising like using emotional content and giving rewards. It shows how visual and auditory stimulation, storytelling, and personalized marketing can lead to dopamine release causing a sense of excitement and pleasure among the potential buyers. The study also looks at scarcity, urgency, and social proof in ads which amplify consumers’ dopamine reactions leading them to buy things. The research also analyses the ethical issues related to the manipulation of dopamine in advertisements as it considers where one may come across from exploitative marketing into persuasive marketing while considering possibilities of consumer manipulation as well as obligations by advertisers to maintain moral norms. It aims to provide detailed knowledge about how advertising influenced by dopamine works to alter customer behaviours. For those who wish to understand the complicated world of modern-day marketing strategies and about the advertisers who are aiming to improve their methods by identifying the most effective ways of altering levels of dopamine, this study will be of immense help.

Dopamine: The manipulating tool of advertising

The role of dopamine

Dopamine is a neurotransmitter which plays an important role in regulating emotions, learning, and attention in human brains. It is released during positive experiences, driving individuals to seek out rewarding behaviours which acts as a powerful tool for influencing consumer behaviour.

Dopamine pathways

The dopamine pathways are the primary routes for dopamine in the brain, associated with pleasure, reward, and reinforcement learning. When a person comes across some kind of rewarding experience, these pathways are activated, motivating individuals to repeat the behaviours that lead to these positive outcomes.10

Emotional triggers

  1. Positive Emotions: Advertisements that trigger feelings of happiness, excitement, or nostalgia can lead to the release of dopamine which generally consists of charming stories, funny content, and stunning visuals.

  2. Anticipation and Curiosity: Customers experience a release of dopamine when they anticipate a reward from advertisements that make them interesting or create suspense. Techniques like cliffhangers, teasers, and striking visuals are often employed to create that suspense.

Reward systems

  1. Incentives and Rewards: Distribution of material benefits by advertisers like coupons, freebies, or loyalty points can trigger the dopamine system directly. In this process, the companies use gamification features, which offer prizes to customers based on their engagement.

  2. Social Proof and Testimonials: Sometimes, a vicarious reward experience can be produced by witnessing other people appreciate a good or service. User reviews, influencer endorsements, and testimonials are useful resources for this.

Personalization

  1. Targeted Advertising: Personalization of advertisements based on user preferences and behaviours can increase relevance and engagement, leading to higher dopamine release. Some companies use data-driven marketing techniques for precise targeting.

  2. Interactive Content: Interactive advertisements, such as quizzes, polls, and augmented reality experiences, engage consumers more deeply, enhancing the dopaminergic response.

Best Practices in Dopamine-Driven Advertising

Storytelling

Explaining the content in the form of a story is a powerful tool for engaging consumers emotionally and stimulating dopamine release. Stories that resonate with the audience can create strong emotional connections and memorable experiences.

Visual and auditory stimuli

Attractive and bright colours, appealing imagery, and catchy jingles are often used to create a pleasurable sensory experience.

Timing and frequency

Most of the time, the timing and frequency of advertisements play a critical role in maintaining consumer interest and avoiding desensitization. Strategically timed ads that coincide with moments of high receptivity can maximize impact.

Authenticity and trust

Advertisements that are genuine and reliable have a higher chance of drawing in viewers and holding their interest. Increasing trust via openness and sincere communication makes the advertisement more effective overall.

Findings of Existing Research

Effective advertising relies on several key factors, each contributing uniquely to the overall impact. Consumers connect emotionally with stories, which triggers dopamine release and is effective in 22% of cases. High-quality visual and auditory elements have a 30% success rate in grabbing attention and stirring emotions. Timing and frequency also play a crucial role, as well-timed ads can enhance effectiveness by 25% by maximizing their impact and maintaining audience engagement. To summarise, earlier studies on this topic reveal the possible impact of various activities/aspects as explained above and their effectiveness on consumer behaviour are given in Table 1.

Table 1

Summary of the existing research on various activities related to advertisement and their effectiveness on consumer behaviour

Aspect

Description

Data and Effectiveness

Storytelling

Engages consumers emotionally, stimulating dopamine release.

22%

Visual and Auditory Stimuli

High-quality visuals and sounds captivate attention and evoke emotional responses.

30%

Timing and Frequency

Strategically timed ads maximize impact and maintain interest.

25%

Authenticity and Trust

Genuine and reliable ads draw viewers and build trust.

50%

Graph and data representation

Graph 1

(Graphical representation of the Existing Research on Various Activities related to Advertisement and their effectiveness on Consumer Behaviour)

https://s3-us-west-2.amazonaws.com/typeset-prod-media-server/c2e6044c-a049-4ebb-bb5d-0ecc190e2b98image1.png

Case Studies

Case Study 1: Coca-Cola's "Share a Coke" Campaign

Campaign overview

In 2011, Coca-Cola launched a campaign named, "Share a Coke" which ran until 2014 and played a crucial role in boosting sales and enhancing brand engagement. The campaign's creative approach involved placing popular names on Coke bottles and encouraging customers to find and share their personalized bottles. This strategy had a significant impact on Coca-Cola's revenue, as reflected in the sales figures: $46,542 in 2011, $48,017 in 2012, $46,854 in 2013, and $45,998 in 2014. In addition to financial success, the campaign led to an impressive 870% increase in Facebook traffic and a 7% rise in brand awareness and consumption. It showcased the importance of social media in modern marketing, generating 18 million media impressions and engaging 65,000 participants in the Facebook initiative. Responding to public demand, Coca-Cola also added 50 more names, further personalizing the product and deepening its connection with consumers.

Dopamine manipulation

  1. Personalization: Coca-Cola was able to effectively customize its beverage by adding individual names, giving each customer a feeling of exclusivity and distinction. According to studies, customization increases relevance and engagement in the customer experience, which sets off a dopamine reaction.

  2. Anticipation and Reward: The excitement of discovering a bottle with one's name on it, or the name of a special someone, fuelled a sense of expectancy. Dopamine is released when there is anticipation because the brain anticipates a possible reward.

  3. Social Sharing: Dopamine release was increased by encouraging customers to post pictures of their customized bottles on social media. Sharing content on social media gave rise to a dopamine rush as a result of validation and approbation. There was also a dopamine rush from seeing relatives and family members taking part in the campaign.

Outcomes

  1. Increased Sales: As reported by Coca-Cola, the "Share a Coke" campaign resulted in a significant rise in sales, with a notable increase in consumption among teens and young adults.

  2. Brand Engagement: Millions of images were shared on social media as a result of the campaign, sparking a stratospheric increase in interaction. This increased awareness and fidelity further strengthened the brand's position.

  3. Emotional Connection: The campaign successfully strengthened the emotional relationship between customers and the business by encouraging personal interactions. Through this tactic, Coca-Cola was able to be effortlessly incorporated into social and personal settings, enhancing its place in commonplace encounters.

Table 2

( CocaCola Annual Revenue) (Millions of US $)

Sales Increase over Time (2011 - 2014)

Year

Amount

2014

$45,998

2013

$46,854

2012

$48,017

2011

$46,542

[i] https://www.macrotrends.net/stocks/charts/KO/cocacola/revenue

Table 3

Metric

Increase

Brand Awareness and Consumption

7%

Facebook Traffic

870%

Media Impressions

18 million

Facebook Campaign Participants

65,000

Additional Names Released

50

[i] https://www.reallygoodinnovation.com/stories/what-innovators-can-learn-from-the-share-a-coke-campaign

Graph 2

Sales Increase over Time (2011 - 2014)

https://s3-us-west-2.amazonaws.com/typeset-prod-media-server/c2e6044c-a049-4ebb-bb5d-0ecc190e2b98image2.png

Case Study 2: Nike's "Just Do It" Campaign

Campaign overview

The "Just Do It" campaign by Nike, launched in 1988, is a famous and lasting marketing strategy. The technique adopted was to tell motivational stories, showcasing individuals—from athletes to everyday people—who overcome obstacles to achieve their goals. The sales growth statistics from 1988 to 1998 reveal a remarkable increase in the company's global sales and market share, driven by key milestones. In 1988, the company's market share rose by 18%, with global sales reaching $0.877 billion. This period marked the introduction of the iconic "Just Do It" tagline, which became a crucial part of the brand's marketing strategy and customer engagement. By 1998, market share had climbed to 43%, and global sales soared to an impressive $9.2 billion, nearly tripling over the decade. This substantial growth underscores the effectiveness of the company's marketing strategies and strategic initiatives during this period.

Dopamine Influence

  1. Motivational Narratives: The audience experiences strong emotional responses in response to the stories of tenacity, resolve, and victory, which release dopamine and provide inspiration and motivation.

  2. Compelling Visual Elements: Through the use of vivid, captivating imagery and catchy language, the campaign engages the audience's senses and deepens the emotional bond.

  3. Personal Connectivity: The campaign resonates on a personal level with its overarching theme of ambition and tenacity, creating a sense of connection between viewers and the brand as well as their goals.

Impacts

Brand Loyalty: By effectively creating a strong emotional connection with customers, the campaign has positioned Nike as a representation of excellence and tenacity.

Revenue Surge: "Just Do It" has been instrumental in driving Nike's financial growth, establishing the brand as a leader in the sports apparel and footwear market.

Cultural Significance: This initiative has transcended traditional advertising, evolving into a cultural phenomenon that has shaped public opinion and inspired multiple generations.

Tabular Data for Nike's "Just Do It" Campaign

Table 4

Sales growth over time(1988 - 1998)

Year

Market Share Increase (%)

Worldwide Sales ($ Billion)

Key Milestone

1988

18

0.877

"Just Do It" slogan coined

1998

43

9.2

Sales tripled

[i] https://en.wikipedia.org/wiki/Just_Do_It

Graph 3

Sales Growth over Time (1988 - 1998)

https://s3-us-west-2.amazonaws.com/typeset-prod-media-server/c2e6044c-a049-4ebb-bb5d-0ecc190e2b98image3.png

Case Study 3: Starbucks Rewards Program

Program overview

Customers who join Starbucks' loyalty program earn points, known as stars, for every purchase they make. These stars can be redeemed for free items. The program also tailors special offers based on customers' preferences and previous purchases. Between 2010 and 2022, Starbucks saw significant changes in revenue and customer retention due to the strategic implementation of the Starbucks Rewards program. Launched in 2010, the program marked a shift towards enhancing customer loyalty. The introduction of tiered membership levels (Green and Gold) in 2012, encouraged users to engage more and most importantly, the launch of a digital card in 2015 can be considered the biggest achievement as it helped to boost active membership to 10 million. By 2019, personalized updates and rewards had grown the membership to 16 million, positively impacting sales. The digital engagement increased during the COVID-19 pandemic, reaching 19.3 million active members in 2020. In 2021, a partnership with Delta Airlines led to rewards members accounting for 47% of total retail sales. By 2022, a streamlined rewards program will increase member-driven sales by 53%. The American Customer Satisfaction Index (ACSI) scores, which reflect a steady rise from 77 in 2006 to a peak of 80 in 2024, demonstrate ongoing customer satisfaction and loyalty, underscoring the importance of this strategy. These efforts showcase Starbucks' commitment to leveraging personalized rewards and digital engagement to enhance sales and customer satisfaction.

Dopamine responses

  1. Reward System: This establishes a recurring reward system that releases dopamine with each transaction by guaranteeing that customers receive points.

  2. Building Anticipation: The recognition that every transaction contributes towards a reward builds anticipation, encouraging repetitive engagement.

  3. Tailored Promotions: The delivery of personalized offers and promotions aligned with individual choices heightens the perceived value of rewards, intensifying the dopamine reaction.

Outcomes

  1. Enhanced Customer Loyalty: The loyalty program has notably bolstered customer retention rates, leading to frequent revisits by members aiming to accrue and utilize rewards.

  2. Boost in Sales: Sales figures have risen due to reward-driven purchases, resulting in increased transaction values and overall sales volumes.

  3. Improved Customer Interaction: The enjoyment and engagement stemming from personalized rewards and offers have enhanced the overall customer experience, fostering a positive association with the brand.

Table 5

Data for the starbucks rewards program

Customer Retention and Increased Sales over Time (2010 - 2022)

Year

Active Members (Millions)

Program Highlights

Sales Impact

2015

10

Major app integration, digital card functionality

Not available

2019

16

Continuous updates and personalized rewards

A significant contribution to sales growth

2020

19.3

Increase during COVID-19 due to enhanced digital engagement

Digital sales surge during the pandemic

2021

24.8

New partnership with Delta Airlines

47% of store spend attributed to Rewards members

2022

26.4

Simplified rewards structure, expanded benefits

53% of store spend attributed to Rewards members

[i] https://www.pymnts.com/earnings/2022/more-than-half-starbucks-sales-now-driven-by-rewards-customers/

Table 6

American customer satisfaction index scores of starbucks in the united states from 2006 to 2024

Year

ACSI Score

2006

77

2007

78

2008

77

2009

76

2010

78

2011

80

2012

76

2013

80

2014

76

2015

74

2016

75

2017

77

2018

78

2019

79

2020

78

2021

79

2022

77

2023

78

2024

80

[i] https://www.statista.com/statistics/216719/starbucks-customer-satisfaction-in-the-us/

Graph 4

Customer retention and increased sales over time (2010 - 2022)

https://s3-us-west-2.amazonaws.com/typeset-prod-media-server/c2e6044c-a049-4ebb-bb5d-0ecc190e2b98image4.png

American Customer Satisfaction index (ACSI) scores of Starbucks in the United States from 2006 to 2024

Graph 5

https://www.statista.com/statistics/216719/starbucks-customer-satisfaction-in-the-us/

https://s3-us-west-2.amazonaws.com/typeset-prod-media-server/c2e6044c-a049-4ebb-bb5d-0ecc190e2b98image5.png

Future Scope of Dopamine Manipulation and Its Role in Effective Advertising

Integration of advanced data analytics

Utilizing advanced data analytics and machine learning will allow for more accurate targeting and personalization as social media platforms evolve. By examining large volumes of user data, marketers can develop highly tailored content that connects with each person and enhances their engagement. This level of customization will make advertisements more relevant and impactful, leading to increased engagement rates and better customer experiences.

Immediate Engagement and Response

Social media offers instantaneous engagement and input, which may be leveraged to continuously improve advertising tactics. Through real-time observation of user emotions and engagement, advertisers may modify their material to more effectively stimulate dopamine release. By ensuring that advertising is dynamic and fascinating throughout time, this responsive and dynamic approach reduces the likelihood of desensitization and maintains customer attention.

Immersive and Interactive Content

There might be a significant increase in immersive and interactive content in the future social media advertising scene. Technologies like virtual reality (VR), augmented reality (AR), and interactive video experiences may create extraordinarily interesting and exciting settings for users. Because these immersive experiences offer novel and compelling interactions that traditional media cannot match, they can significantly increase dopaminergic reactions.

Influencer Marketing and Social Validation

Influencer marketing will continue to be a powerful strategy for releasing dopamine through social approval. When customers see product endorsements and use by celebrities they look up to, they get validation and vicarious benefits. Influencer content's relatability and trustworthiness may strengthen emotional ties and trust, which increases the impact of advertising.

Gamification and incentive systems

Social media platforms will see an increase in the complexity of gamification elements including tournaments, challenges, and reward systems. Brands may create satisfying and engaging experiences that trigger dopamine release by including game-like aspects in their commercials. These gamified experiences make the customer journey more enjoyable and rewarding, which encourages repeat business and fosters long-term loyalty.

Moral considerations and consumer faith

As dopamine manipulation in advertising progresses, ethical questions will become increasingly important in maintaining customer confidence. Openness about data use, customized targeting, and the psychological strategies used will be essential. Brands will build more robust and long-lasting relationships with customers if they put an emphasis on ethical advertising techniques and maintain open communication with their audience.

Artificial Intelligence and Predictive Analytics

Predictive analytics and artificial intelligence (AI) are increasingly being utilized in advertising, providing companies with deeper insights into the desires and needs of their target audience. AI can analyze consumer behaviour patterns and forecast the types of content that are most likely to elicit a positive emotional response. This ability to predict allows for the creation of highly targeted and effective advertising strategies that align closely with the motivations and preferences of individual consumers.

Interconnected platform fusion

In the future, advertising strategies will increasingly focus on integrated platform fusion, allowing campaigns to seamlessly operate across multiple digital platforms and social media channels. This unified approach ensures consistent messaging and experiences, enhancing dopamine-driven engagement at various touchpoints. By maintaining a steady presence, brands can boost overall advertising effectiveness and cultivate greater consumer loyalty.

User-created content and community cultivation

Dopamine-driven advertising can be significantly enhanced by building online communities and encouraging user-generated content (UGC). When customers create and share content about a brand, they experience a sense of achievement and validation. This not only fosters a community of engaged and loyal customers but also triggers dopamine release. By effectively leveraging community building and UGC, brands can generate strong network effects that amplify their impact and reach.

Neuro-targeting and behavioural revelations

Advancements in behavioural science and neurology are set to shape social media advertising strategies. By utilizing neuro-targeting techniques that analyze brain responses to different types of content, advertisers can gain a better understanding of what drives customer engagement and satisfaction. By incorporating these insights, they can craft more effective ads that align with the brain's natural reward and pleasure systems.

Conclusion

Manipulating dopamine is a powerful advertising strategy that can significantly influence consumer behaviour. By understanding and leveraging the mechanisms of dopamine release, advertisers can create compelling and motivating ads. This study outlines best practices that provide a framework for enhancing the effectiveness of advertisements. These strategies encompass emotional triggers, reward systems, personalization, and storytelling. Utilizing insights from neuroscience will be crucial for staying competitive in the ever-evolving advertising landscape.

Source of Funding

None.

Conflict of Interest

None.

References

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The Role of Music in Video Advertisements: Enhancing Engagement and Brand Recallhttps://www.impressvideo.co.uk/vlog/importance-of-music-in-tv-advertising/

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Despite menu price increases, Starbucks Rewards members keep coming backhttps://www.restaurantdive.com/news/starbucks-rewards-members-rise-despite-menu-price-increases/628746/



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Article type

Original Article


Article page

192-199


Authors Details

Ashok Panigrahi, Arunima De


Article History

Received : 02-07-2024

Accepted : 17-08-2024


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