NeuroPsychoEconomics

A i ti f N P h E iEditors Association for NeuroPsychoEconomicshttp://www.neuropsychoeconomics.orgISSN 1861-8243

Editors

Martin ReimannOliver Schilke

Editorial BoardTim Ambler

2010NeuroPsychoEconomicsConference Proceedings

Tim AmblerIngo BalderjahnAntoine BecharaPeter BossaertsEduard BrandstätterWolfgang BreuerJohn T. CacioppoMichael CzinkotaMargit EnkeChristian E. ElgerGuillén FernándezDieter FreyFlemming HansenScott HuettelAndrea Gröppel-KleinGert GutjahrHans-Georg Häusel Manfred HollerScott HuettelPeter KenningErich KirchlerChristian KorunkaFrank Krueger Camelia KuhnenCamelia KuhnenMarco Lehmann-WaffenschmidtGeorge LoewensteinKevin A. McCabeMichael I. NortonJohn P. O'DohertyAndreas OehlerHilke PlassmannPeter PolitserScott RickLutz von RosenstielAldo RusticiniGad SaadAlan G. SanfeyDirk SchiereckFriedrich SchneiderHeinz SchulerBaba ShivAle SmidtsManfred SpitzerVolker TrommsdorffBodo VogtKathleen D. VohsBernd WeberBernd WeberPeter WeinbergKlaus WertenbrochCarolyn YoonPaul J. Zak

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Imprint Editors

Association for NeuroPsychoEconomics &

The Decision Neuroscience Research Group, Copenhagen Business School

Flemming Hansen | Martin Reimann | Oliver Schilke

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2010 NeuroPsychoEconomics / ConNEcs Conference Program Copenhagen Business School (Solbjerg Plads 3, DK-2000 Frederiksberg, Denmark) Presentations will be held in English. May 31, 2010 04:00-05:30 PM: Annual Meeting of the Editorial Boards of

the Journal of Neuroscience, Psychology, and Economics and NeuroPsychoEconomics (Limited to editorial board members only) Location: Augustinus Meeting Room at Copenhagen Business School

06:00-07:00 PM: Registration Location: SPs16

06:00-07:00 PM: Reception Location: SPs16 07:00-10:00 PM: Copenhagen Nightlife Meeting point: SPs16

Location: Copenhagen City—exact location to be announced during the reception (paid on your own)

June 1, 2010 08:00 AM: Registration

Location: SPs16

09:00 AM: Welcome note from the conference chairs Flemming Hansen, Copenhagen Business School & Martin Reimann, University of Southern California

Location: SPs16 09:15 AM: Invited talk:

Julian Jamison, Federal Reserve Bank of Boston Advertising and the welfare implications of endogenous preferences Location: SPs16

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10:00 AM: Competitive paper session I Track: Organizational Behavior & Organizational

Decision Neuroscience Track chair: Ale Smidts, Erasmus University Location: SPs16

10:00 AM: A neural network approach to forecasting large and medium regional U.S. air carrier financial stress and bankruptcy Gritta, Davalos

10:25 AM: Eye-tracking analysis as a complementary technique to psychometric scale analysis – The case of evaluating different answer formats Koller, Salzberger, Himmer

10:50AM: The influence of others on our decisions – A closer look at the fundamental nature of

reference group influence on decision-making Stallen, Smidts, Sanfey Track: Behavioral Economics & Neuroeconomics 1 Track chair: Thomas Zoëga Ramsøy, Copenhagen Business

School Location: SPs14

10:00 AM: Augmented replicator equation and socioeconomic dynamics

Dilmaghani 10:25 AM: On mental transformations Kontek 10:50 AM: Neural basis of risk and ambiguity: An fMRI study

Welpe, Hewig, Stanton, Hecht, Miltner 11:15 AM: Coffee break & Poster session Location: Strøget 11:45 PM: Key note speech:

Antoine Bechara, University of Southern California The somatic marker hypothesis and human decision making: Withstanding the test of time Location: SPs16

12:45 PM: Lunch (included in conference fee) Location: Tønden

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01.45 PM Competitive paper session II

Track: Consumer Behavior & Neuromarketing Track Chair: Hilke Plassmann, INSEAD Location: SPs16

01:45 PM: What advertising managers can learn from brain researchers Fehse 02:10 PM: Emotions and intention to buy: Applying neuro-IS on the adoption of the iPhone

Hedman, Tscherning 02:35 PM: Net emotional response strength and fMRI Hubert, Hubert, Hansen, Kenning 03:00 PM: The insentience of brand equity – Two studies of consciousness and brands Ramsøy, Skov

Track: Behavioral Economics & Neuroeconomics 2 Track chair: Isabell Welpe, Technical University of Munich Location: SPs14

01:45 PM: How neuroscience methodology can help sponsorship research solving the “black

box” problem Breuer, Rumpf

02:10 PM: Trading and emotion regulation: The heart of financial decision-making? Fenton-O’Creevy, Smidts, Lins 02:35 PM: Unconscious brand reactions influence financial decision-making

Harris, Murawski 03:00 PM: An economic institutional analysis of the retirement pro-vision information in

Germany Haupt, Yollu-Tok

03:25 PM: Best paper award ceremony

Location: SPs16 04:00 PM: Coffee break & Poster session Location: Strøget 04:30 PM: Invited Talk:

Tim Ambler, London Business School Predicting consumer supermarket brand choices with neural markers Location: SPs16

05:15 PM: Good bye note from the editors Martin Reimann, University of Southern California and Oliver Schilke, University of California, Los Angeles

Location: SPs16 05:30 PM: End

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2010 NeuroPsychoEconomics / ConNEcs Poster Session Poster sessions will take place from 11:15 AM to 11:45 AM and from 04:00 PM -04:30 PM at “Strøget.” Poster session participants must display their poster by 08:30 AM on Tuesday, June 1 2010 at designated spaces at the conference venue. P1 Call-response improvisation. New insights in the study of creativity Friis-Olivarius, Wallentin, Roepstorff, Ramsøy, Vuust P2 A model of hypnotic communication in the consumption experience

Guido, Prete, Pichierri, Bleve P3 Exchange or communal: An examination of customer relationships’ orientation from the salesperson’s

perspective Guo P4 Perception and effectiveness of commercials: An experimental study using eye-Tracking Hofer P5 Automatic processes and neural correlates of compulsive buying behavior in men

Hubert, Hubert, Büttner, Florack, Kenning P6 Price memory and the life you live

Linzmajer, Eberhardt, Kenning P7 Are every-day consumer choices driven by value or brightness of choice options? Insights from vision

science Milosavljevic, Navalpakkam, Koch, Rangel

P8 The contribution of emotions and nonverbal attitude

Schlegl P9 Ad-editorial congruency and side of ad presentation affect attention and memory for print

advertisements Simola, Kivikangas, Krause

P10 Level of perceptual expectedness influences the preference for novel brand logos

Skov, Ramsøy P11 Disorganized children: The emotional and financial cost of unidentified neuro-developmental

difficulties in children and adolescents Stein, Chowdhury P12 What happened…and how fix it? Resolving conflict at home, at school and in the workplace Stein, Pearce, McMillan P13 Excalibur: Multi-agency intervention and support barometer Stein, Sebire P14 Frames, decisions and cardiac-autonomic control

Sütterlin, Herbert, Schmitt, Vögele P15 Cognitive control capabilities, routinization and decision-making Laureiro-Martinez, Brusoni, Zollo

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Map of Copenhagen Business School

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Contents

Gritta, Davalos A neural network approach to forecasting large and medium regional US air carrier financial stress and bankruptcy............................................................................................................................................................. 13 Koller, Salzberger, Himmer Eye-tracking analysis as a complementary technique to psychometric scale analysis – The case of evaluating different answer formats ............................................................................................... 14 Stallen, Smidts, Sanfey The influence of others on our decisions – A closer look at the fundamental nature of reference group influence on decision-making ............................. 15 Dilmaghani Augmented replicator equation and socioeconomic dynamics ............................................................................. 16 Kontek On mental transformations .................................................................................................................................... 17 Welpe, Hewig, Stanton, Hecht, Miltner Neural basis of risk and ambiguity: An fMRI study ............................................................................................. 18 Fehse What advertising managers can learn from brain researchers ............................................................................... 19 Hedman, Tscherning Emotions and intention to buy: Applying neuro-IS on the adoption of the iPhone............................................... 20 Hubert, Hubert, Hansen, Kenning Net emotional response strength and fMRI ........................................................................................................... 21 Ramsøy, Skov The insentience of brand equity – Two studies of consciousness and brands ....................................................... 22 Breuer, Rumpf How neuroscience methodology can help sponsorship research solving the “black box” problem ...................... 23 Fenton-O’Creevy, Smidts, Lins Trading and emotion regulation: The heart of financial decision-making? .......................................................... 24 Harris, Murawski Unconscious brand reactions influence financial decision-making ...................................................................... 25 Haupt, Yollu-Tok An economic institutional analysis of the retirement pro-vision information in Germany ................................... 26 Friis-Olivarius, Wallentin, Roepstorff, Ramsøy, Vuust Call-response improvisation. New insights in the study of creativity ................................................................... 27 Guido, Prete, Pichierri, Bleve A model of hypnotic communication in the consumption experience .................................................................. 28 Guo Exchange or communal: An examination of customer relationships’ orientation from the salesperson’s perspective ............................................................................................................................................................ 29 Hofer Perception and effectiveness of commercials: An experimental study using eye-tracking ................................... 30

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Hubert, Hubert, Büttner, Florack, Kenning Automatic processes and neural correlates of compulsive buying behavior in men ............................................. 31 Linzmajer, Eberhardt, Kenning Price memory and the life you live ....................................................................................................................... 32 Milosavljevic, Navalpakkam, Koch, Rangel Are every-day consumer choices driven by value or brightness of choice options? Insights from vision science .................................................................................................................................. 33 Schlegl The contribution of emotions and nonverbal attitude............................................................................................ 34 Simola, Kivikangas, Krause Ad-editorial congruency and side of ad presentation affect attention and memory for print advertisements ....... 35 Skov, Ramsøy Level of perceptual expectedness influences the preference for novel brand logos .............................................. 36 Stein, Chowdhury Disorganised children: The emotional and financial cost of unidentified neuro-developmental difficulties in children and adolescents ....................................................................................................................................... 37 Stein, Pearce, McMillan What happened … and how fix it? Resolving conflict at home, at school and in the workplace ......................... 38 Stein, Sebire Excalibur: Multi-agency intervention and support barometer ............................................................................... 39 Sütterlin, Herbert, Schmitt, Vögele Frames, decisions and cardiac-autonomic control ................................................................................................ 40 Laureiro-Martinez, Brusoni, Zollo Cognitive control capabilities, routinization and decision-making ....................................................................... 41

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A neural network approach to forecasting large and medium regional US air carrier financial stress and bankruptcy

Richard Gritta*, Sergio Davalos

Abstract Analysts have turned increasingly to newer techniques to measure the financial health of firms. Neural networks

(NN) borrowed from Artificial Intelligence (AI) have been one of the newer approaches. This paper applies the

use of neural networks to an important applied forecasting problem. That problem is the health of the U.S. airline

industry, a vital part of the nation’s transportation system. It is the continuation of our research into the

forecasting of air carrier financial stress and bankruptcy. Prior studies (Chow, Gritta, Leung, 1991; Davalos,

Gritta, Chow, 1999) focused on the larger airlines, called majors and nationals by the Department of

Transportation (DOT). These studies utilized neural networks, Multiple Discriminant Analysis (MDA), Genetic

Algorithms (GAs), and other models, such as logit/probit, to identify financially stressed or failing airlines. The

applications of several of these models (MDA, GA, logit/probit, etc.) to the smaller carriers did not initially

achieve the same results. The use of a neural network seemed to be a good alternative to many of these

techniques for reasons that will be explored. A preliminary NN study (Gritta, Chow, Davalos, Wang, 2000)

using only smaller carriers showed promise. Since that study included only 9 failed carriers, a larger sample was

needed to better gauge the powers of the model. A subsequent study (Davalos, Gritta, Wang, 2002) expanded the

sample and obtained more significant results. The purpose of the current study is to add several more carriers and

to update that analysis to be if the neural network maintains its ability to separate out the healthy from the

financially stressed.

* Corresponding author: Richard Gritta, University of Portland, E-Mail: gritta@up.edu.

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Eye-tracking analysis as a complementary technique to psychometric scale analysis –

The case of evaluating different answer formats

Monika Koller*, Thomas Salzberger, Christoph Himmer

Abstract Measurement in the social sciences is typically concerned with latent variables like attitudinal predispositions or

behavioral intentions. In both survey research and experimental research their quantification usually relies on

multi-item scales. Each item and its associated response scale represent a stimulus, the respondent reacts to. It

has been demonstrated repeatedly that the type and the design of the response scale (e.g., appropriate number of

response categories or labeling of response options) may have a major impact on the responses provided.

However, another important characteristic of the response scale, namely the direction of a Likert-type response

scale (agree>>disagree format versus disagree>>agree), has attracted less attention. In two different studies

Salzberger and Koller (2008, 2009) investigated these two different formats in both PAP and ONL settings and

concluded that the agree>>disagree format performs much better, exemplified by two different latent constructs,

based on the Rasch measurement model. In the present study, eye-tracking data of a total of 30 right-handed

respondents was collected in order to get more insight into the process of answering to a verbal stimulus and

varying response formats. Preliminary eye-tracking results show that, as hypothesized, different reading patterns

emerged for the two response formats presented.

* Corresponding author: Monika Koller, Vienna University of Economics and Business, E-Mail: monika.koller@wu.ac.at.

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The influence of others on our decisions –

A closer look at the fundamental nature of reference group influence on decision-making

Mirre Stallen*, Ale Smidts, Alan Sanfey

Abstract Decision-making is often influenced by the behavior of others. For instance, people frequently make similar

decisions as their friends do (e.g. teenagers may choose to wear clothing that is identical to that of their buddies),

while they also often choose differently than the ones they do not like (e.g. the clothing should not be identical to

what is worn by “uncool” kids). Groups that influence an individual in the process of decision-making have been

labeled as ‘reference groups’. Given the large impact of reference groups on individual decision-making, these

groups are of great importance for marketers. Therefore we designed a study to get more insight into the

automatic nature of reference group influence. Our results suggest that the influence of reference groups on

decision-making is a very fundamental process which occurs under surprisingly minimal conditions: Even when

decision-making takes place in a domain for which identity signaling is irrelevant and even when group

identification is low, people’s decisions are shaped by the behavior of others. In a next phase of the experiment,

the neural correlates of the mechanism underlying reference group influence will be investigated.

* Corresponding author: Mirre Stallen, Erasmus University, E-Mail: Mirre.Stallen@fcdonders.ru.nl.

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Augmented replicator equation and socioeconomic dynamics

Maryam Dilmaghani*

Abstract The replicator equation is one of the standard frameworks for evolutionary analysis. It is used for modelling the

changes in population proportion of types through selection mechanisms. This work proposes a modified version

for the replicator equation that incorporates emotional incentives behind human social behaviour, making this

equation suitable for the modelling of social influence. Existing literature suggests these emotional incentives to

be conformity and status-seeking. In my proposed version the dynamic impacts of these incentives are

formulated in terms of population proportions, leaving the analytical tractability of the replicator equation intact.

The equation is then examined in order to derive its main patterns. It is shown through illustrative examples that

this version of the equation proves to be both empirically useful and theoretically instructive.

* Corresponding author: Maryam Dilmaghani, Mount Allison University, E-Mail: mdilmaghani@mta.ca.

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On mental transformations

Krzysztof Kontek*

Abstract The paper presents an alternative interpretation of the experimental data published by Kahneman and Tversky in

their 1992 study "Advances in Prospect Theory”, which describes the Cumulative version of their Prospect

Theory from 1979. It was assumed that, apart from the operations made during the initial stage of problem

resolution, which Prospect Theory defines as Editing (here generalized as Mental Adaptation), other mental

transformations such as Prospect Scaling (resulting from Focused Attention) and Logarithmic Perception of

Financial Stimuli should be considered when analyzing the experimental data. This led to the design of an

explicit, simple and symmetric solution without the use of the probability weighting function. The double S-type

function obtained (the aspiration function) resembles the utility curve specified by the Markowitz hypothesis

(1952) and substitutes the fourfold pattern of risk attitudes introduced by Cumulative Prospect Theory. The

results presented constitute a basis for negating Prospect Theory as a theory which correctly describes how

decisions are made under conditions of risk and may signal a return to a description of people’s behavior that

only relies on the utility-like function

* Corresponding author: Krzysztof Kontek, Artal Investments, E-Mail: kkontek2000@yahoo.com.

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Neural basis of risk and ambiguity:

An fMRI study

Isabell M. Welpe*, Johannes Hewig, Angela Stanton, Holger Hecht, Wolfgang Miltner

Abstract Risk and ambiguity are important concepts in theories of managerial and entrepreneurial behavior. Whereas risk

is defined as a pure gamble with known probabilities and outcomes (e.g. a lottery ticket), ambiguity is defined as

a compound case of risks in which more than one outcome is possible and the probability associated with each

outcome is unknown. It is often assumed that managers and entrepreneurs have a superior ability to deal with

decisions under risk and with ambiguous information. Previous research has often used simple risk as proxy to

measure entrepreneurial decisions under risk, transposed the answers to entrepreneurial decision-making in

response to ambiguity, thus combining and treating risk and ambiguity parameters as one. We argue that it is

necessary to differentiate between the two for the following reasons. First, using simple risk-type questions that

do not relate to real managerial decision-making tasks ignore that agents have the propensity to turn them into an

unknown degree of ambiguity or uncertainty. Second, managers and entrepreneurs rarely play pure gambles and

thus seldom deal with pure risk. Rather they are surrounded with ambiguity or even uncertainty, a type of risk

that arises from lack of information. The present study aims to extend the knowledge about brain structures

involved in decision-making under different degrees of risk and under ambiguity.

* Corresponding author: Isabell M. Welpe, Technical University of Munich, E-Mail: welpe@tum.de.

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What advertising managers can learn from brain researchers

Kai Fehse*

Abstract In order to assess the potential relevance of neuroscience to marketing-communications, one should look beyond

the few fmri-studies that have been published on this topic. Marketing and advertising practitioners can

particularly benefit from instead applying generic findings from cognitive neuroscience. These findings often

strongly conflict with the prevailing doctrine of advertising science, and even more with the heuristics of its

practitioners. For example, advertising managers seem to be unaware of the fact that the brain constructs its

environment instead of perceiving it; that there are two dissociated memory systems; and that emotional and

rational cognitions are tightly interwoven on a neuronal level and are by no means separate phenomena.

Naturally, these general findings also apply to advertising stimuli. What the advertising industry can learn may

seem trivial to ist “teachers” from neuroscience; for their “pupils” in agencies and advertising departments, these

lessons are still valuable and useful. Even more so, if these teachings are summed up by a simple heuristic like

the CASE2-model for advertising impact.

* Corresponding author: Kai Fehse, Institute for Cognition and Communication, E-Mail: kf@icc-institute.org.

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Emotions and intention to buy:

Applying neuro-IS on the adoption of the iPhone

Jonas Hedman, Heidi Tscherning*

Abstract Neuro-IS assumes that all behavior, including intention to behave, is elicited by stimuli, emotions and emotional

response. We develop and test the Emotion Cognition Behavior model and introduce feeling words in an

Information Systems (IS) context. We test the role of emotions in an exploratory setting, namely the adoption of

the iPhone in Demark. The iPhone was chosen as study object, as it had not yet been released in Denmark at the

time of the study and thus was a novel study object. A research model that includes stimuli, emotions, emotional

response and cognitive processes as latent variables and intention to buy as predictor was developed to test the

role of emotions. The hypotheses derived from the research model are tested by the use of Structural Equation

Modelling (SEM). Five hypotheses were developed to explain the relationship between the latent variables and

the predictor, and the results show that positive emotions elicit the cognitive process constructs “image” and

“compatibility” as well as the predictor “intention to buy”. However, the test does not support that image is

positively related to people’s intention to buy and the test only provides some support for the hypothesis that

compatibility is positively related to people’s intention to buy an iPhone.

* Corresponding author: Heidi Tscherning, Copenhagen Business School, E-Mail: htj.caict@cbs.dk.

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Net emotional response strength and fMRI

Marco Hubert*, Mirja Hubert, Flemming Hansen, Peter Kenning

Abstract The application of traditional measurement instruments to analyze emotional responses towards brands often

seems to be insufficient to capture intangible and unconscious aspects within the consumer decision-making

process. On the other hand neurological studies emphasize the importance of essential emotional processes

underlying human decision making. Therefore, the focus of this preliminary study is to link a questionnaire

based measurement technology (Net Emotional Response Strength (NERS)) with an fMRI experiment in order

to firstly, shed light on the functionality and the validity of the traditional measurement instrument and secondly,

to interpret results of the behavioural level in the light of neurophysiologic insights into emotional processing.

Within the fMRI experiment, all participants had to evaluate 35 different brand logos twice according to their

attractiveness. Additionally, we applied a modified version of the original NERS Measurement for each brand

after the fMRI. Three brands (BOSS, Calvin Klein, and Giorgio Armani) were analyzed within a first

preliminary investigation. Thus, by applying NERS-scores for grouping the participants we observed significant

activity changes within brain regions associated with reward, emotions and memory processing. Although the

revealed results are very preliminary, first insights for linking traditional measurements of emotional responses

to brands and fMRI could be provided. Nevertheless further research and analysis is needed and underway to

develop and validate our results.

* Corresponding author: Marco Hubert, Zeppelin University, E-Mail: marco.hubert@zeppelin-university.de.

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The insentience of brand equity –

Two studies of consciousness and brands

Thomas Zöega Ramsøy*, Martin Skov

Abstract Perceiving known brands usually lead to numerous conscious associations that relate to visual, narrative and

episodic memories of previous exposures, and in particular to positive or negative associations. By comparison,

less is known of potential differences between conscious and unconscious responses to known brands, and

whether subjective brand valence can affect these responses. Previous studies have suggested that implicit

processing of brands may affect motivated behaviour, even without conscious awareness (Chartrand 2008).

However, such studies have not determined whether it is possible to measure these implicit brand preferences.

Furthermore, it is yet unknown whether preference for complex cultural information such as brands may have an

impact on the subjective threshold for conscious and unconscious perception. To approach this problem, we

conducted two behavioural studies with equipment that allowed controlled presentation of stimulus durations

and precise measurements of reaction times.

* Corresponding author: Thomas Zöega Ramsøy, Copenhagen Business School, E-Mail: tzramsoy@gmail.com.

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How neuroscience methodology can help sponsorship research solving the “black box” problem

Christoph Breuer, Christopher Rumpf*

Abstract The industry’s expenditure on sport sponsorship activities has significantly increased during the last two

decades. Since then, a large number of research studies has been accomplished to examine the relative

effectiveness of this marketing communication instrument. However, most studies are methodologically limited

to assessing either the stimulus’ impact by exposure analysis or the consumer’s response by recall or recognition

measures. Consequently, contributions on the cognitive perception and information processing of sponsorship

stimuli remain marginal. The present paper takes this limitation as a starting point in order to discuss the capacity

of neuroscience methods like eye-tracking. Eye-tracking enables researchers to measure the consumer’s visual

attention to sponsorship stimuli and thereby contributes to our understanding of sponsorship stimuli processing.

This is relevant to the evaluation of economic benefits since it reveals the effective contact with a certain

sponsorship activity rather than a mere opportunity to be seen. After giving a brief outline of the consumer’s

general reception in a sport sponsorship context we will discuss the “black box” problem and the difficulties with

an economic sponsorship evaluation. Next, an experimental study will be presented in which visual attention to

sport sponsorship stimuli has been investigated.

* Corresponding author: Christopher Rumpf, German Sport University Cologne, E-Mail: c.rumpf@dshs-koeln.de.

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Trading and emotion regulation:

The heart of financial decision-making?

Mark Fenton-O’Creevy*, Ale Smidts, Jeffrey Todd Lins

Abstract We study the role of emotions and emotion regulation in financial markets. We argue that variability in emotion

regulation is a good candidate to explain important intra and inter-individual variability in susceptibility to key

decision-making biases and hence in financial performance of market actors. We will present the results of a

pilot study in which we investigate the role of emotion regulation in relation to the decision-making of

professional traders in an investment bank. Highly experienced and less experienced traders will be compared in

how they react to a news event that is salient to the pricing of products they trade. The traders are monitored over

a period from one hour prior to the news event to one hour after the news event. The monitoring consists of

measuring: 1) heart rate and heart rate variability, 2) video capture of activity to study facial expressions, activity

and audio (the trader is asked to provide a constant spoken narrative of their actions and decisions including

commentary on feelings), and 3) time stamped trading data will be captured along with relevant price data.

Analysis focuses first on providing a rich description of the unfolding of trading performance episodes, including

the nature of emotional response and regulation. A rich qualitative account of reactions to key market events will

be constructed for each trader and comparisons will be made between traders in the ‘expert/inexperienced’ pairs.

* Corresponding author: Mark Fenton-O’Creevy, Open University Business School, E-Mail: m.p.fenton-ocreevy@open.ac.uk.

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Unconscious brand reactions influence financial decision-making

Philip Harris*, Carsten Murawski

Abstract A growing body of research shows that consumer decision-making for products and brands is meaningfully

shaped by affect. In parallel, research examining influences of mood states and other transient affective states on

judgement and decisions demonstrate that incidental affect powerfully shapes judgement and decisions. In this

research we examine incidental effects of brand presentation on financial decision-making. We explore the

possibility that brands can impact on decisions by influencing affective systems underlying decision-making.

Our results indicate that brand images with affective value can shift incidental decision-making towards

affectively-driven choices. Furthermore, these effects occur without conscious awareness of the identity of the

brand stimuli. These findings provide initial evidence that brands may impact on behaviour outside of the

consumer context by modulating affective systems underlying decision-making.

* Corresponding author: Philip Harris, University of Melbourne, E-Mail: hap@unimelb.edu.au.

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An economic institutional analysis of the retirement pro-vision information in Germany

Marlene Haupt*, Aysel Yollu-Tok

Abstract As a result of demographic and economic developments as well as the reduction in the benefit levels provided by

the Federal German Retirement Fund, the provisions of individuals' private pensions have gained in importance.

Consequently, the informational needs of beneficiaries have increased, as a wider range of options are open to

them and more diverse obligations are associated with complex pension products and services that are

supplemented by public subsidies. Drawing on an economic-institutional framework, an analysis of the Federal

Pension Fund in Germany as well as the privately funded 'Riester' pensions can be used to illustrate, firstly, how

the normative and actual behaviour of beneficiaries differ and, secondly, the behaviour-theoretical reasons for

that discrepancy. A holistic and analytical concept that can be used to explain human behaviour is the homo

oeconomicus institutionalis. This links economic and psychological preferences. The paper concludes by noting

that a delta analysis can identify the behavioural modifications that contribute to a reduction in the gaps between

normative and actual behaviour. This can lead to recommendations for policy makers so that existing

information on retirement provisions can be optimized.

* Corresponding author: Marlene Haupt, University Koblenz-Landau, E-Mail: hauptmarlene@uni-landau.de.

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Call-response improvisation:

New insights in the study of creativity

Morten Friis-Olivarius*, Mikkel Wallentin, Andreas Roepstorff, Thomas Zöega Ramsøy, Peter Vuust

Abstract Nearly all neuroimaging studies of creative behavior investigate verbal associations. These studies find an

involvement of the left dorsolateral prefrontal cortex (DLPFC). In contrast, two recent studies of pianists found

the right DLPFC to be linked with non-verbal creative behavior. Musicians, however, often communicate on

stage through their playing. But does this improvised interaction involve left- or right-lateralized prefrontal brain

regions? To investigate this, we conducted a functional magnetic resonance imaging (fMRI) experiment where

participants had to improvise a musical answer to a given musical rhythmic phrase. We found that only the left

DLPFC was activated during response creation compared to control, indicating that musical communication

resembles that of linguistic behavior rather than strictly non-linguistic behavior.

* Corresponding author: Morten Friis-Olivarius, Copenhagen Business School, E-Mail: mr.friis@gmail.com.

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A model of hypnotic communication in the consumption experience

Gianluigi Guido*, M. Irene Prete, Marco Pichierri, Barbara Bleve

Abstract In their purchase decision processes, consumers can be affected by a magnetic mechanism similar to what

influences hypnotized individuals. Purchasing decisions are often based on apparently unconscious and

emotional reasons, and the response to this need can be provided by hypnotic communications, which turn an

abstract idea into a real and credible benefit for products/services. Defined hypnosis as a state of focused

attention, it is plausible to make the comparison between the hypnotic phenomena and the "absorption" of the

consumer in the consumption’s experience. This study describes how the methods of the persuasive

communication replicate the workings of the hypnotic phenomena and how hypnotic and persuasive marketing

communication can be a powerful tool for implanting ideas or suggestions. A model of persuasive

communication structured on the following three levels is proposed: i) Appealing to emotions and latent stimuli

is the first stage to activate the post-hypnotic suggestion; ii) The post-hypnotic suggestion becomes action when

a situation or a state recalls the hypnotist’s suggestion; iii) Suggestion needs to be reinforced so that an action

could be repeated. Implications for marketing are discussed.

* Corresponding author: Gianluigi Guido, University of Lecce, E-Mail: g.guido@agora.it.

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Exchange or communal:

An examination of customer relationships’ orientation from the salesperson’s perspective

Lei Guo*

Abstract Cultivation of successful customer relationships is accomplished through individual firms’ employees, especially

the salesperson. Although prior research has established a link between salesperson’s characteristics and

customer relationships, little research has addressed salesperson’s perspective in cultivating customer

relationships. In the present study, we have drawn on the literature on relationship marketing and social

psychology; and formalized our conceptual model of customer relationship orientations from the salesperson’s

perspective. This model illustrates that a customer relationship is either communal or exchange oriented where

the salesperson’s perceived relationship benefits and customers’ characteristics are determinants of the

relationship orientation. We tested the model with salespeople from business-to-business companies in Chinese

business context. Initial 132 survey responses indicated that customer relationship is both exchange and

communal oriented. Furthermore, we noted that salespeople are likely to develop communal type relationships

with their favorable customers as well as with those who are similar.

* Corresponding author: Lei Guo, University of Exeter, E-Mail: lg232@exeter.ac.uk.

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Perception and effectiveness of commercials:

An experimental study using eye-tracking

Natalie Hofer*

Abstract In the underlying study a theoretical model has been designed in order to explain the perception and

effectiveness of TV commercials. The model centers on the influence of product involvement, familiarity with

the commercial, attitude toward advertising in general (as factors which influence visual attention top-down),

and brand position/position of the web address in the commercial (as a bottom-up factor) on eye movements of

consumers. The study is the first to confirm the influence of top-down-factors such as product involvement and

familiarity with the commercial on eye movements. Within commercials with moderate – compared to low or

very high – complexity the position of the web address has a positive impact on the number of fixations on the

address, if the address is shown all over the commercial instead of being shown only at the end. Eye movements

of the respondents also predict the effectiveness of commercials in regard to the attitude toward the commercial

(e.g. “relevance”, “transparency”) and the attitude toward the brand (e.g. “cognitive aspects”). The findings

support that a commercial’s power to concentrate consumers’ attention (= fixation density) predicts the

respondent’s attitude toward the commercial. The greater a respondent’s fixation density is, the better the

commercial is rated by the respondent concerning the “relevance” of the commercial.

* Corresponding author: Natalie Hofer, Vienna University of Economics and Business, E-Mail: natalie.hofer@wu.ac.at.

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Automatic processes and neural correlates of compulsive buying behavior in men

Mirja Hubert*, Marco Hubert, Oliver B. Büttner, Arnd Florack, Peter Kenning

Abstract A considerable number of consumers suffer from financial problems that are the result of impulse buying and

overspending. Indeed, in an extreme form impulse buying and overspending can be considered as a compulsive

buying disorder. Recent studies have shown that lacking self-control is an important determinant of compulsive

buying. Our research completes these studies by showing that male consumers who suffer from problems related

to compulsive buying also differ in how much shopping related stimuli automatically activate positive impulses.

In two studies, we presented participants brand logos from the high price segment of various product categories

and measured automatically activated positive associations (Study 1) and the activation of brain areas related to

the reward system (Study 2). We found that automatically activated positive associations with the brand logos

were correlated with indicators of compulsive buying such as overspending (Study 1) and that groups

differentiated on the basis of a compulsive buying index showed the expected differences in activation patterns

in brain regions associated with reward.

* Corresponding author: Mirja Hubert, Zeppelin University, E-Mail: mirja.hubert@zeppelin-university.de.

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Price memory and the life you live

Marc Linzmajer*, Tim Eberhardt, Peter Kenning

Abstract Price knowledge has been one of the top behavioral pricing themes over the last decades with considerable

research investigating price knowledge of consumers. A minor focus of research is so far to what degree price

knowledge is dependent on the individual’s memory system. This study tries to combine the marketing concept

of price knowledge with psychophysiological evidence on memory performance with the focus on individual

lifestyle components and its influence on price memory. The exploratory approach is based on a sequential price

processing model and leads to an interesting outcome: When dealing with price knowledge of consumers, a

reconsideration including lifestyle components showed significant effects. Recognition performance was

significantly predicted by twice as much lifestyle components (health status, nutritional habits, physical activity,

satisfaction and affective state, smoking, mental activity) than recall memory performance (health status,

nutritional habits, physical activity). Therefore the results have strong practical and future research implications.

New perspectives are opened up for marketing and sales professionals by better understanding their customers’

way of memorizing price information. In the light of relative imprecise knowledge about lifestyle factors going

beyond the medical sphere, further research in this sense should try to create more reliable measurements.

* Corresponding author: Marc Linzmajer, Zeppelin University, E-Mail: marc.linzmajer@zeppelin-university.de.

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Are every-day consumer choices driven by value or brightness of choice options?

Insights from vision science

Milica Milosavljevic*, Vidhya Navalpakkam, Christof Koch, Antonio Rangel

Abstract Imagine that you are in a hurry and have a few seconds available to choose a food item (e.g. from a vending

machine). The available items vary both in subjective value - how much you like each – and in their visual

properties – brightness. How do the two factors affect your choice? In four eye-tracking and button-press

experiments, subjects made choices between pairs of food items with different subjective values. We also

manipulated visual saliency by changing the brightness of the food items. The results indicate that such choices

can be made at sub-second speeds and that visual saliency affects choices when the value of the two items is

similar, which is highly representative of today’s cluttered shopping environment, but that value wins over when

one of the options is highly preferred. The current findings carry important implications for marketing practice,

such as product packaging and shelf-positioning.

* Corresponding author: Milica Milosavljevic, California Institute of Technology, E-Mail: mmilosav@hss.caltech.edu.

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The contribution of emotions and nonverbal attitude

Sandra Brigitte Schlegl*

Abstract The aim of this poster is to demonstrate the use of nonverbal attitude measurement (i.e. via pictures and

emotions) for brand management. A positive attitude towards a brand serves as a predictor for future behaviour

(e.g. buying intention). Therefore, the periodical ascertainment of attitudes is one of the main parts of brand

management. As human information processing mainly works with pictures and emotions, it is doubtful if

attitudes can be surveyed true to reality by sole means of verbal measurement. This is where the method of

nonverbal attitude measurement can be assessed. In this method, the emotional component of the customers'

attitude is ascertained by pictures. Thereby, not only the existence but also the intensiveness of the relevant

emotion can be measured. The empirical study has been examined by structural equation modelling.

* Corresponding author: Sandra Brigitte Schlegl, Vienna University of Economics and Business, E-Mail: sandra.schlegl@wu.ac.at.

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Ad-editorial congruency and side of ad presentation affect attention and memory for print advertisements

Jaana M. Simola*, Markus Kivikangas, Christina M. Krause

Abstract Previous research on visual processing of advertisements has mainly focused on formal aspects such as graphics,

size and location of the ads. Currently, little is known about ad content related factors. The present experiment

investigated how semantic relation between the ads and editorials, as well as the side of ad presentation

influenced processing of print advertisements. Ad processing was studied in a typical newspaper reading

situation, where the eyes land on the ads as part of scanning on the page. We examined situations in which the

topic of the ad was either semantically congruent or incongruent with the content of the editorial texts. The aim

was to test to which extent the semantic congruency and the side of the ad presentation affected attention and

memory for the advertisement pictorials and brand-logos. We recorded eye movements since the method has

proven to be a good indicator of the locus of visual attention. Recognition of the ads and the logos was measured

to infer how deeply the ad message was processed during the initial viewing of the newspaper pages.

* Corresponding author: Jaana M. Simola, University of Helsinki, E-Mail: jaana.simola@helsinki.fi.

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Level of perceptual expectedness influences the preference for novel brand logos

Martin Skov*, Thomas Zöega Ramsøy

Abstract Brands are among the main vehicles for companies to ensure consumers’ attention and memory. Influencing the

brand equity of a given brand starts at the formation of first impressions. It is well documented that novel

information, including novel brands, are initially treated with a relative skepticism. With repeated exposure this

negative response has been shown to fade and change into a more favorable evaluation of the information.

Although this initial exposure effect has been demonstrated across different domains, little is known about the

underlying psychological and neural factors influencing it. Recent studies suggest that skepticism for novel

information is in part caused by stimulus predictability where unexpected stimuli, by activating specific aversion

related brain states, cause avoidance behavior. Using a recently devised method from cognitive neuroscience, we

sought to test whether auditory predictability and unpredictability, known to produce aversive behavioral and

neural responses, would influence first impressions to novel brand logos. During testing, novel brand logos

associated with unpredictable sounds were rated significantly lower than brand logos associated with predictable

sounds. Exploratory analyses uncovered unexpected effects of gender and brand logo category. These results are

discussed in light of factors influencing first impressions, suggesting implications for brand logo design.

* Corresponding author: Martin Skov, Copenhagen Business School, E-Mail: mskov01@gmail.com.

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Disorganised children:

The emotional and financial cost of unidentified neuro-developmental difficulties in children and adolescents

Samuel Stein*, Uttom Chowdhury

Abstract “Disorganised children” suffer from a wide array of neuro-developmental processing problems that actively

impede their emotional, social and academic progress. Unfortunately, rather than being recognised early as

having neurologically-based deficits, they are often referred to child and adolescent mental health services much

later due to concerns about emotional and behavioural problems. Whilst these “disorganised children” often fail

to meet the strict diagnostic criteria for any one particular diagnosis, their presentation is extremely consistent

with subtle neuro-biological deficits which are of sufficient severity to cause difficulties day to day, both within

the family and within the classroom. If these children can be identified early, and receive appropriate therapeutic

help, they are more likely to remain in school and engage within the community rather than becoming

educationally and socially marginalised. The aim of this presentation is to highlight the needs of this very

interesting, and yet often overlooked, group of children before they are negatively and unhelpfully labelled as

simply being badly behaved, with an emphasis on punishment rather than on help and support. If not identified

and treated when still young enough to change, the emotional and financial costs of this missed diagnosis are

potentially astronomical with significantly worse adult outcomes.

* Corresponding author: Samuel Stein, Bedfordshire & Luton Community NHS Trust, E-Mail: samuelstein@pitchcott.demon.co.uk.

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What happened … and how fix it?

Resolving conflict at home, at school and in the workplace

Samuel Stein*, Duncan Pearce, Helen McMillan

Abstract Getting on with other people can sometime be very difficult. Everyone has their own ideas about what is right,

and their own thoughts about how to do things. This can lead to arguments at home, at school or in the

workplace when people want to do things differently, or don’t see things the same way. Often when this

happens, people spend most of their time worrying about who did what, and who is to blame. They don’t spend

nearly as much time thinking about how to fix the problem. This mediation-based approach therefore attempts to

change that, and to have most people spending most of their time and energy looking at making things better. It

may be that no-one will get everything they want, or have everything their own way, but at least everyone should

get a fair share of what they want. It can be used with families at home, and with pupils in schools. It can also be

used by adults experiencing marital friction or for problems at work. If implemented effectively, mediated and

negotiated solutions can provide a more viable, more satisfying and more economical way of dealing with

conflict across a whole range of settings.

* Corresponding author: Samuel Stein, Bedfordshire & Luton Community NHS Trust , E-Mail: samuelstein@pitchcott.demon.co.uk.

39

Excalibur:

Multi-agency intervention and support barometer

Samuel Stein*, Christopher Sebire

Abstract Over the past decade, heavy criticism has been directed towards mental health and social care services for failing

to manage children and families at risk more effectively. Unfortunately, traditional risk assessment tools have

proved of limited usefulness, especially as they struggle to address multiple risks within a single measure and

fail to facilitate effective communication between different professionals and agencies. Risk management should

also be conducted in a spirit of collaboration with service user, building on their strengths and emphasising

recovery. Recognising these problems, the Multi-Agency Intervention and Support Barometer has been designed

to provide a unique but comprehensive approach to risk management. It utilizes a broad-based clinical approach,

in a user-friendly format, with major emphasis on intervention and recovery rather than on risk identification

alone. The barometer also promotes follow-through from assessment to treatment, and provides effective

communication across teams, services and agencies. In addition, the barometer allows for easy updating and

tracking of changes over time, and emergency alerts are automatically triggered when patients score highly on

risk factors being measured. If integrated into health and social care, the barometer will actively reduce risk

whilst also improving clinical care and providing essential support for vulnerable children and families.

* Corresponding author: Samuel Stein, Bedfordshire & Luton Community NHS Trust , E-Mail: samuelstein@pitchcott.demon.co.uk.

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Frames, decisions and cardiac-autonomic control

Stefan Sütterlin*, Cornelia Herbert, Michael Schmitt, Claus Vögele

Abstract The „framing effect“ (FE) describes the phenomenon that human choices are susceptible to the way they are

presented rather than objective information. The present study extends common decision-making paradigms with

frame variation by including inhibitory control, operationalized as vagally mediated heart rate variability (HRV)

at rest and motor response inhibition during a stop-signal task (SST). We hypothesized that inhibitory control is

inversely associated with susceptibility to framing effects. Forty adult volunteers performed a risky choice

framing task in which identical information about wins and losses was presented using loss or gain frames. As

predicted, there was an inverse association between HRV and framing effects, accounting for 23% of the

variance in framing effects. Inhibitory control as indexed by performance in the SST was not associated with

framing effects. These results are discussed in terms of the role of inhibitory processes (as indicated by vagal

activity) for decision-making processes.

* Corresponding author: Stefan Sütterlin, Université du Luxembourg, E-Mail: stefan.suetterlin@uni-wuerzburg.de.

41

Cognitive control capabilities, routinization and decision-making

Daniella Laureiro-Martinez*, Stefano Brusoni, Maurizio Zollo

Abstract The link between the mindful and less-mindful perspectives is relatively underdeveloped (Levinthal & Rerup,

2006) and even less so is our understanding of the combined impact that superior cognitive abilities (i.e.

mindful) and routinization (i.e., less mindful) simultaneously have on decision-making. This paper intends to fill

this gap introducing the concept of cognitive control capabilities, i.e. an individual’s ability to regulate one’s

attention modulation processes. Through an experimental study we first show that differences in individuals’

cognitive control capabilities actually influence adaptive managerial decision-making. Second, better

performance in a decision making task is obtained only when superior cognitive control capabilities are

combined with the ability to routinize decisions. Finally, we conclude this paper exploring the implications of

our results.

* Corresponding author: Daniella Laureiro-Martinez, Bocconi University, E-Mail: dlaureiro@gmail.com.

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2011 Call for papers Please be invited to submit a paper to the 2011 NeuroPsychoEconomics / ConNEcs Conference in Munich, Germany. The conference will be held from May 26-27, 2011 at TUM Business School of the Technical University of Munich (Arcisstrasse 21, Munich, Germany). The conference will be chaired by Isabell Welpe, Professor of Strategic Management and Organizations, TUM Business School. The deadline for submissions is January 15, 2011.

The conference theme of 2011 is:

“Excellence in Neuroeconomics – Striving for Impact

in Economics, Management, and Marketing Research”

Manuscripts should combine concepts from neuroscience and/or psychology with problems of business and economics. Topics may include (but are not restricted to):

Application of concepts and methods from neuroscience and/or psychology in solving business and economics problems (e.g., marketing, behavioral finance, organization science, management, and decision science)

Analysis of interpersonal behavior (e.g., relationships between customer-supplier, supervisor-subordinate, and/or investor-firm) with the means of neuroscience and/or psychology

Discussion of ethical and legal issues at the interface of psychology, neuroscience, and business and economics research

Evaluation of the state of the field of research in neuroeconomics

Presentation of state-of-the-art techniques for solving neuroeconomic problems

Empirical as well as conceptual manuscripts are welcome. Manuscripts submitted for the conference must not be published elsewhere at the time of the conference. The conference language will be English.

Full paper submissions

Manuscripts for the 2011 NeuroPsychoEconomics / ConNEcs Conference must be submitted by January 15, 2011.

Manuscripts passing the double-blind review process will be accepted for presentation at the conference. Manuscript submissions must be accompanied by a cover letter that indicates the intention to publish the paper, if accepted, either in its entirety in the “Journal of Neuroscience, Psychology, and Economics” (ISSN 1937-321X) for English submissions, in the journal “NeuroPsychoEconomics” (ISSN 1861-4523) for German submissions, or in abstract form (English only) in the “NeuroPsychoEconomics Conference Proceedings” (ISSN 1861-8243).

English manuscript submissions must conform to the author guidelines of the American Psychological Association (APA). Please see http://www.jnpe.org for more submission information.

German manuscript submissions must conform to the author guidelines of the Association for NeuroPsychoEconomics. Please see http://www.neuropsychoeconomics.org for more submission information.

In submitting a manuscript, the authors affirm that, if accepted, at least one author will register for the 2011 NeuroPsychoEconomics / ConNEcs Conference and appear at the conference to present the paper.

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Poster submissions

Posters for the 2011 NeuroPsychoEconomics / ConNEcs Conference must be submitted by January 15, 2011.

Posters passing the double-blind review process will be accepted for presentation at the conference. Poster submissions must be accompanied by a cover letter that indicates “poster submission” and an extended abstracts (1,000 words max.) that describes the research presented on the poster. Please submit the extended abstract through http://www.jnpe.org. Extended abstracts will be published in the “NeuroPsychoEconomics Conference Proceedings” (ISSN 1861-8243).

English poster submissions (that is, extended abstracts) must conform to the author guidelines of the American Psychological Association (APA).

Posters may have a maximal size of 120cm (height) x 90cm (width).

In submitting a poster, the authors affirm that, if accepted, at least one author will register for the 2011 NeuroPsychoEconomics / ConNEcs Conference and appear at the conference to present the poster.

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Membership & mailing list Membership You can become a member of the Association for NeuroPsychoEconomics online at http://www.jnpe.org or http://www.neuropsychoeconomics.org. Membership includes a subscription to either the peer-reviewed scientific English “Journal of Neuroscience, Psychology, and Economics” or the peer-reviewed scientific German journal “NeuroPsychoEconomics”, a discount in conference fees, and special announcements.

Mailing list In order to subscribe to the NeuroPsychoEconomics mailing list, please send an e-mail to mailinglist@neuropsychoeconomics.org with Subscribe in the subject field. You will receive up-to-date information on topics at the interface of economics, management, psychology, and neuroscience through the official NeuroPsychoEconomics mailing list. The list will also cover information about conferences and publications from those fields. You will also have the possibility to send own information through the list. Please refrain from SPAM. In order to unsubscribe, please send an e-mail to mailinglist@neuropsychoeconomics.org with Remove in the subject line.