Introduction
How Apple and Nike have branded your brain
Watch the newest video from Big Think: bigth.ink/NewVideo
Learn skills from the world's top minds at Big Think Edge: bigth.ink/Edge
----------------------------------------------------------------------------------
Powerful branding can not only change how you feel about a company, it can actually change how your brain is wired.
"We love to think of ourselves as rational. That's not how it works," says UPenn professor Americus Reed II about our habits (both conscious and subconscious) of paying more for items based primarily on the brand name. Effective marketing causes the consumer to link brands like Apple and Nike with their own identity, and that strong attachment goes deeper than receipts.
Using MRI, professor and neuroscientist Michael Platt and his team were able to see this at play. When reacting to good or bad news about the brand, Samsung users didn't have positive or negative brain responses, yet they did have "reverse empathy" for bad news about Apple. Meanwhile, Apple users showed a "brain empathy response for Apple that was exactly what you'd see in the way you would respond to somebody in your family."
----------------------------------------------------------------------------------
TRANSCRIPT:
NARRATOR: Coke is just soda. Tylenol is just acetaminophen. And Levi's are just jeans. Yet consumers go out of their way to select these specific brands over others.
AMERICUS REED II: An economist would say,"How is this possible, that a rational consumer would be willing to pay more for exactly the same thing?" We love to think about ourselves as rational. That's not how it works.
A very famous study done by colleagues at Duke University flashed either the Apple logo or the IBM logo to two randomized groups of participants.
NARRATOR: The study found that after being subliminally exposed to the Apple logo, compared to when you'd been exposed to the IBM logo, participants performed better on creative tasks.
AMERICUS REED II: And the argument is that Apple has been telling you this story over and over again, that Apple is the brand for hip, cool, fun, creative people.
NARRATOR: This is the true power of brands. They can influence our behavior in ways that extend way beyond the point of sale. 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.
This is Americus Reed. He studies identity and marketing at the University of Pennsylvania.
AMERICUS REED II: When I make choices about different brands, I'm choosing to create an identity. When I put that shirt on, when I put those shoes on, those jeans, that hat, someone is going to form an impression about what I'm about. So if I'm choosing Nike over Under Armour, I'm choosing a kind of different way to express affiliation with sport.
The Nike thing is about performance. The Under Armour thing is about the underdog. I have to choose which of these different conceptual pathways is most consistent with where I am in my life.
NARRATOR: And once a consumer makes that choice, their relationship with a brand can deepen to the point where they identify with that brand like family. And once you identify with a brand, it can shape the way you behave.
AMERICUS REED II: And it's really interesting because they will also, if someone talks bad about that product, brand, or service, they will be the first to go out and defend. Why? Because an attack on the brand is an attack on themselves.
NARRATOR: Michael Platt is a professor of neuroscience, marketing, and psychology whose research demonstrates how our perception of brands influences our decisions.
MICHAEL PLATT: There's an idea in marketing, which is 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." Of course, what people say can often be different from what's really going on in their heads.
So we thought, "Well, why don't we just ask the brain directly?"
NARRATOR: Michael 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.
MICHAEL PLATT: 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.
NARRATOR: Strangely, Samsung users didn't have any positive or negative responses when good or bad news was released about their brand. The only evidence that Samsung users showed was reverse empathy for Apple news. Meaning if the Apple headline was negative, their brain reflected a positive response.
MICHAEL PLATT: You know, it really shows us that Apple has completely defined the market here. Samsung customers, it seems, from their brain data, are only buying Samsung...
To read the full transcript, please visit bigthink.com/singleton/how-apple-and-nike-have-branded-your-brain
Video
- Coke is just soda., Tylenol is just acetaminophen.
And Levi's are just jeans.
Yet consumers go out of their way to select these specific brands over others.
- An economist would say, "How.
Is this possible, that a rational consumer would be willing to pay more for exactly the same thing?" We love to think about ourselves as rational.
That's, not how it works.
A very 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 when you'd been exposed to the IBM logo, participants performed better on creative tasks.
- And.
The argument is that Apple has been telling you this story over and over again.
That 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.
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.
This is Americus Reed.
He studies, identity and marketing at the University of Pennsylvania., When I make choices about different brands, I'm, choosing to create an identity.
When I, put that shirt on, when I put those shoes on, those jeans, that hat, someone is going to form an impression about what I'm about.
So, if I'm choosing Nike over Under Armour, I'm choosing a kind of different way to express affiliation with sport.
The Nike thing is about performance.
The Under Armour thing is about the underdog.
I have to choose which of these different conceptual pathways is most consistent with where I am in my life.
- And.
Once a consumer makes that choice, their relationship with a brand can deepen to the point where they identify with that brand.
Like family.
And, once you identify with a brand, it can shape the way you behave.
- And.
It's really interesting because they will also.
If someone talks bad about that product, brand, or service, they will be the first to go out and defend.
Why? Because.
An attack on the brand is an attack on themselves.
- Michael.
Platt is a professor of neuroscience, marketing, and psychology, whose research demonstrates how our perception of brands influences our decisions.
- There's an idea in marketing, which is 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." Of course.
What people say, right, can often be different from what's really going on in their heads.
So we thought, "Well.
Why don't? We just ask the brain, directly?", - Michael 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 when good or bad news was released about their brand.
The only evidence that Samsung users showed was reverse empathy for Apple news.
Meaning.
If the Apple headline was negative, their brain reflected a positive response.
- You know.
It really shows us that Apple has completely defined the market.
Here.
Samsung customers, it seems, from their brain data, are only buying Samsung 'cause.
They hate Apple. - The, kicker?, The, Samsung users didn't report feeling the results, their MRIs showed.
What was happening in their brains and what they reported feeling towards Apple and Samsung, were totally different.
- Most people just don't realize that they are subconsciously, choosing brands because those brands have some kind of self-expressive.
Value.
- You can see.
There's a lot of power here in terms of shaping consumers' decisions.
As.
We learn more and more about that.
We have to think much more deeply about the ethical, legal, and societal implications of doing that., - So, as consumers.
What can we do to make informed choices? Well,? The best thing we can do is to be aware of the influence that brands, hold., - I think it's important to always pause and think a little bit about, "Okay.
Why am I buying this product?" - And, like it or not, brands, aren't going anywhere., - I've heard lots of people push back and say that, "I'm, not into brands." I.
Take a very different view.
They're, not doing anything any different than what someone who affiliates with a brand is doing.
They have a brand, it's just an anti-brand, brand.
And I think about.
What is it that I've learned about identity over time? I? Think a lot of it has to do with the fundamental need that we as humans have to have support systems.
Perhaps.
It was the church.
It was the community.
It was these other institutions that existed.
Now, brands have stepped in as pillars of our identity.
So I'm.
Very much motivated to see that in that positive light.
FAQs
How does Nike create brand value? ›
Nike has created superior marketing by utilizing celebrity endorsers, such as Michael Jordan, to represent their brand. The idea is that embedding a celebrity image into the consumer's mind will cause the consumer to associate the endorser with Nike's products. This makes the brand more desirable and valuable.
How does Nike use emotional branding? ›So to recap: Nike advertising uses the emotional branding technique of Heroism to inspire incredible customer loyalty all over the world. The hero starts from humble beginnings, challenges a foe greater than he, and against all odds, prevails. Nike marketing isn't the only group that uses this archetype.
How does Apple have a strong brand image? ›Apple's brand positioning is based on three key elements: innovation, design, and customer experience. These three factors allow Apple to stay ahead of competitors while maintaining a strong sense of identity.
Does Nike have a strong brand awareness? ›When it comes to sports and outdoor online shop users, brand awareness of Nike is at 95% in the United States. The survey was conducted using the concept of aided brand recognition, showing respondents both the brand's logo and the written brand name.
What branding strategy does Nike use? ›Nike's marketing strategy is based on inclusivity and considers athletes of all backgrounds, ethnicities, gender, and age; thus, everyone relates to the advertisements. Nike doesn't focus on a single sport. Instead, they focus on various sports and athletes globally.
Why is Nike branding successful? ›Nike's business strategy is straightforward: engage in brand creation through emotional marketing and sports star endorsements, manufacture products with high-quality, market-leading technology, and acquire competitive sports brands. Nike's swoosh dominates the footwear industry.
What is Nike's branding personality? ›As a person, Nike is seen as an athlete who is strong, fit, energetic and determined. Other qualities of the brand are kindness, openess, confidence. It is also described as winner, friendly, adventurous, competitive, dynamic and clever.
How does Nike have a strong brand image? ›Nike has successfully created a strong brand by fulfilling the pillars of brand equity, which include: brand loyalty, brand awareness, brand associations and perceived quality. Strategic marketing messages, combined with quality products have allowed for Nike to excel in each dimension of brand equity.
How does Nike create brand loyalty? ›47% of customers have reported they would stay loyal to a brand with a like-minded community. Establishing a community of people who have the same interests is how Nike creates a bond between themselves and their shoppers. Meaning they'll always be at the forefront of their shoppers' minds which secures loyalty.
What branding strategy does Apple use? ›Simplicity. Creativity. Humanity. They call these their three lenses, and, according to Tor Myhren, VP of Marketing Communications at Apple, “If a product is not made up of these things, it's not Apple”.
Why does Apple have a strong brand identity? ›
Apple's brand identity emphasizes the qualities of simplicity, innovativeness, exclusivity, and memorability within the minds of its consumers. This research is examined through the lens of the 5 P's of marketing: Product, Price, Place, Promotion, and People.
Why Apple has the strongest brand? ›Apple's products were sold in classy retail stores that set the gold standards for sales and support of tech devices. Apple had been enjoying tremendous brand equity with a loyal customer base, and had always appealed to the premium end of the consumer market through its innovative and aspirational products.
What brand has the highest brand awareness? ›Apple is the largest company in the world, so it is only fitting that it also has the most recognisable brand. Consumers all over the planet own Apple products – from iPhones and iPads, to Apple Watches and iPods – which can help to explain the company's brand recognition.
What Nike does to attract customers? ›Nike's promotion strategy is focused on creating strong, emotional connections with their customers through advertising, sponsorships, and events. They use a variety of marketing channels, such as television, social media, and influencer marketing, to reach their target audience and build brand awareness.
What are Nike brands values? ›Nike's Core Values
These core values include “innovation, being authentic, inspiration, every athlete in the world, connected, and being distinctive.” Through these core values, Nike has achieved greatness as a global leader in sports apparel and footwear.
What is Nike's marketing strategy? Nike's marketing tactic leverages the four Ps—product, price, promotion, and place. While these elements are fundamental in every marketing strategy, Nike understands how to gain an advantage. The brand uses a good combination of these components to lure more potential leads.
What is Nike's branding slogan? ›An original "Just Do It" commercial. Wieden coined the tagline, "Just Do It" for the then smaller sportswear brand based out of Oregon. The phrase immediately took off, and signaled an upward trajectory for Wieden and Kennedy, as well as Nike.
What is unique about Nike brand? ›Nike products are made in factories that aren't actually owned by the company itself. Instead, contractors own the factories and Nike pays them to produce the goods. The Air Jordan 1 was made famous by basketball player Michael Jordan; however, Jordan hated the colors red and black when he first saw the shoes.
What is Nike most successful product? ›The company makes money primarily from footwear. As of 2022, over 62% of revenues came from footwear and 29% from apparel. The most successful Nike brand is the Jordan Brand, which in 2022 generated $5.2 billion in revenue.
What is Apple brand identity? ›The Apple identity is a seal of approval and a promise of excellence. When you are authorized or certified in your area of business or expertise, you also represent Apple. By following these guidelines, you reap the benefits of the Apple identity and contribute to its strength.
What are the 5 branding personalities? ›
There are five main types of brand personalities with common traits. They are excitement, sincerity, ruggedness, competence, and sophistication. Customers are more likely to purchase a brand if its personality is similar to their own.
Why do people trust Nike? ›To put it simply, Nike doesn't just sell products. It tells customers what they want — and then makes that value readily available. The key is Nike's ability to cultivate customer trust. Between its brand legacy, its knowledgeable team and its commitment to the entire athletic experience, Nike proves it knows athletes.
What are three qualities of Nike? ›- Progressive. Nike can be characterized as progressive. ...
- Precise. ...
- Lively. ...
- Tolerant. ...
- Sensitive. ...
- Discover your brand personality for free.
Inspiration. Innovation. Empowerment. These are just a few words that describe Nike's branding.
How does Apple use brand loyalty? ›Apple has successfully used five strategies to create brand loyalty among its customers, including a focus on design and user experience, premium quality, innovation, community, and emotional connection. This demonstrates the importance of customer experience and emotional engagement in building brand loyalty.
How does Nike attract and retain customers? ›With quality to back it up, the company can charge more for its products than competitors while still making a lot of money. 79% of Nike consumers said the special incentives are a big part of why they stick with the brand. Exclusivity and rewards work well together to make the loyalty scheme ideas work.
How does Nike satisfy customers? ›Nike relies heavily on advertisements to promote their products, especially those featuring high-profile athletes and celebrities. Additionally, Nike makes use of sales promotion strategies like discount codes to entice potential customers to buy their products.
How does Apple attract customers? ›Focus on value: Apple focuses on their Unique Value Proposition (UVP). Apple is not afraid to price its products based on their value. They market the UVP of their products, how they improve the aspects of their customers' lives and quote the price for it.
What makes Apple unique? ›Steve Jobs dared to be different, he catered to creators and dreamers. Apple was created to cater to people, not consumers. Unlike most corporations, Apple makes product decisions driven by design rather than finance and marketing. He sold dreams, not products.
How does Apple logo attract customers? ›The designer of the Apple logo puts emphasis on simplicity, naturalness, recognizability, and sketchiness. This symbol is one of the most common commercial signs in the information space, and it naturally attracts the attention of potential consumers.
What makes Apple different from other brands? ›
Apple succeeds in design and integration, and no small degree of risk. All of Apple's products include programs that work very well with each other, but not with any of its competitors' products, which makes it easy for customers to keep buying Apple and difficult to switch to someone else.
Is Apple the most trusted brand? ›The brands that were most recognized in the study were Apple, Microsoft, HP, Dell, Samsung, Lenovo, Toshiba, Asus, and Acer. Apple received the highest Net Trust Quotient score and earned the #1 ranking of most trusted computer brands.
What is the number 1 most valuable brand? ›1. Amazon. Despite a tough year for the tech industry and a loss of US$51bn in value, it's no surprise to see Amazon coming out on top. The global heavyweight has retaken top spot having previously been ranked as the world's most valuable brand from 2018 to 2020.
What is the most recognizable logo of all time? ›Coca-Cola logo and brand is the most recognisable in the world. The red and white Coca-Cola logo is recognised by 94% of the world's population. The importance of a logo design can't be understated as is shown from this list of most famous logos.
What American brand is the most valuable? ›DALLAS, March 30, 2023 /PRNewswire/ -- Amazon has retaken top spot as the USA's most valuable brand despite its brand value falling 15% this year from US$350.3 billion to US$299.3 billion. Amazon was previously the world's most valuable brand from 2018 to 2020.
Who is Nike's main customer? ›The average Nike customer is a sports enthusiast, interested in leading an active and healthy lifestyle. Besides the sporty behavioral traits of the Nike audience, they are also image-conscious and tech savvy, looking to be ahead of the trends and up-to-date with the latest in fitness fashion and footwear technology.
What made Nike famous? ›They became the largest sportswear company in America in 1989, on the back of brilliant marketing like the Just Do It campaign and by signing rookie athletes that would eventually become famous across the world.
What is Nike main selling point? ›| Nike Overview | |
|---|---|
| Tagline/ Slogan | Just do it |
| USP | Nike shoes that are made for professional athletes across sports worldwide |
| Nike STP | |
| Segmentation | Sports enthusiasts |
Nike offers four primary value propositions: accessibility, innovation, customization, and brand/status. The company creates accessibility by offering a wide variety of options. It has acquired numerous footwear and apparel firms since its founding, including Converse and Hurley International.
What makes Nike different from its competitors? ›All these companies provide high-quality clothing or shoes. However, what has helped Nike stand out in a ridiculously crowded industry is the fact that it has developed a remarkable brand presence over decades that resonates with consumers and allows the business to generate wide margins and strong profitability.
How Nike is creating value and satisfaction for its customers? ›
To put it simply, Nike doesn't just sell products. It tells customers what they want — and then makes that value readily available. The key is Nike's ability to cultivate customer trust. Between its brand legacy, its knowledgeable team and its commitment to the entire athletic experience, Nike proves it knows athletes.
What is Nike brand value proposition? ›Value Proposition
Nike offers four primary value propositions: accessibility, innovation, customization, and brand/status. The company creates accessibility by offering a wide variety of options. It has acquired numerous footwear and apparel firms since its founding, including Converse and Hurley International.
Our mission is: To bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete.
What attracts customers to Nike? ›Nike's promotion strategy is focused on creating strong, emotional connections with their customers through advertising, sponsorships, and events. They use a variety of marketing channels, such as television, social media, and influencer marketing, to reach their target audience and build brand awareness.
Why does Nike have an effective marketing strategy? ›Nike's marketing tactic leverages the four Ps—product, price, promotion, and place. While these elements are fundamental in every marketing strategy, Nike understands how to gain an advantage. The brand uses a good combination of these components to lure more potential leads.
What do customers want from Nike? ›If products perform their function, customers are likely to feel good when wearing Nike shoes. If they run fast and with comfort, customers will associate happier sentiments with the brand. Similarly, aesthetically pleasing products inspire positive emotions in customers.
What is Nike's unique selling point? ›Nike's USP is 'Just Do It'. The short yet powerful tagline has been used by the brand since 1988 and expresses a message of empowerment.
What is Apple's value proposition? ›Apple's value proposition is to provide premium, high-quality, innovative and user-friendly technology products and services that enrich the lives of its customers.
What are brand values examples? ›- We back our customers.
- We make it great.
- We do what's right.
- We respect people.
- We embrace diversity.
- We stand for inclusion.
- We win as a team.
- We support our communities.
Nike's mission statement is, “To bring inspiration and innovation to every athlete in the world.” And as co-founder Bill Bowerman once said, “If you have a body, you are an athlete.”