A Study on Olfactory Brand Enhancement of Brand Recognition by Cecilie Vernon Nørsgaard & Rikke Søs Rasmussen Cand

Olfactory Brand

Ownership

A study on olfactory brand enhancement of brand recognition by Cecilie Vernon Nørsgaard & Rikke Søs Rasmussen Cand. Merc. MCM, February 2013

Master Thesis, Department of marketing, Copenhagen Business School

Supervisor: Thomas Zoëga Ramsøy

No. STU: 224.116

Acknowledgement

We would like to give special thanks, first of all to our supervisor Thomas Zoëga Ramsoy for advice and guidance.

Also a special thanks to Ambient Idea for lending us fragrances for the experiment. To all the Decision Neuroscience Research Group members for helping us set up the eye-tracking experiment and to all the participants who participated in the odour memory experiment.

2 Executive summary

The olfactory link to the brain's emotional center is a fascinating frontier in neuroscience, behavioural science and marketing. The ambition for this study is to provide a new perspective on the emerging and controversial area of sensory neuromarketing and the concept of olfactory brand ownership with enhancing brand recognition through sent.

A brand image represents the tangible benefits, whereas the personality of the brand indicates an emotional association to this specific brand. Brand personality cultivates brand equity, which determines the brand attitude. The concept of brand equity is to indicate the value of the brand, which added value to the product becomes the virtue of the brand. Incorporating odour in a branding strategy is therefore valuable.

Our experimental design draws upon olfaction, emotion and associative learning theory and the effect on the motivated behaviour, which is proven by Rachel Herz, 2004 (Theory on associative learning).

Results from the experiment revealed that participants’ pupil dilation showed a significant emotional reaction when presented with a scent. Furthermore, the results showed that a stronger emotional reaction towards a scent, in fact did not have a significant importance in generating a superior recognition of the brands. It was also found that the participants’ hedonic perceptions influence the ability to recognise brands via an odour, depending on how familiar or pleasant the odour is to the individual.

Finally, it was found that a possibility of enhancing brand recognition through odours occurred, but a more in-depth discussion and investigation on this matter is important in understanding the findings. The findings argues, that the conditioned response between an odour and a brand needs to be experienced more through continuously repetition to create a conditioned response with a higher probability for brand recognition.

3 Table of Contents CHAPTER 1 INTRODUCTION...... 7 METHODOLOGY ...... 10 RESEARCH PHILOSOPHY...... 10 Research design...... 10 Data collection...... 11 Approach ...... 11 Strategies...... 11 Choice...... 11 Time horizons...... 12 Limitations...... 12 CHAPTER 2 SENSORY BRANDING ...... 13 Introduction branding...... 14 Sensory branding...... 14 BRAND RECOGNITION ...... 15 BRANDING WITH LOGOS AND SOUNDS...... 16 Children and Brand recognition...... 18 EMOTIONAL BONDING TO A BRAND...... 19 Emotive branding...... 22 SCENT MARKETING...... 23 Studies on scent marketing ...... 25 Intangible products...... 26 THE CRITICAL ASPECTS OF SCENT MARKETING...... 27 Sub conclusion...... 31 CHAPTER 3 OLFACTORY SYSTEM ...... 32 WHAT IS OLFACTORY ...... 33 OLFACTORY DISCOVERIES ...... 35 ROLE OF THE AMYGDALA ...... 39 MEMORIES OF ODOURS ...... 40 Recollection of memory...... 40 EXPLICIT AND IMPLICIT MEMORY...... 43 Context dependent and autobiographical memory...... 45 Sub conclusion...... 46 VERBAL, NON VERBAL RECOGNITION...... 46 ENHANCE BRAND MEMORY...... 49 Emotional arousal on memory ...... 49 The Neurobiological connection ...... 50 CHAPTER 4 COGNITIVE NEUROSCIENCE ...... 52 MODERN COGNITIVE NEUROSCIENCE VIEWS...... 53 NEUROMARKETING MEASURES...... 54 Neuroscientific branding...... 55 Neuromarketing scepticism...... 56 CONSUMER BEHAVIOUR AND NEUROSCIENCE ...... 57 Value-based model of choice...... 57 BUYING BEHAVIOUR...... 59

4 Sub conclusion...... 60 CHAPTER 5 THE SENT OF USING SCENT...... 61 A SENSE OF ODOUR ...... 62 Olfactory preferences...... 63 Mediating factors: Visual – Verbal Priming...... 65 Sent of scent in marketing ...... 66 The future: Defining brands through scent...... 67 Personality of scents...... 68 OLFACTORY HERALD A NEW AGE FOR ADVERTISING - HOW DOES YOUR BRAND SMELL LIKE?...... 69 Industry insight – Who are the creators...... 71 The industry ...... 71 Interview with Ambient Idea...... 73 Emotions vs. feelings...... 78 Emotional choice...... 80 CULTURAL ASPECTS OF OLFACTORY ...... 81 INTRODUCING PERFUME ...... 81 The meaning of a scent...... 82 Olfactory talent - the nose knows a lot...... 83 Odours in rituals...... 86 Sub conclusion: ...... 88 ROI ON SCENT MARKETING ...... 89 Brand Equity...... 90 Review of theoretical findings...... 92 CHAPTER 6 RESEARCH DESIGN...... 94 EXPERIMENTAL DESIGN ...... 95 HYPOTHESES ...... 96 Pilot testing ...... 97 Pilot odour memory test set up...... 99 Set up...... 100 Sample population ...... 101 Instructions ...... 101 Testing procedure...... 101 Groups...... 102 Critique of experiment set-up...... 103 EYE-TRACKER ...... 103 Odour test with Eye-tracker...... 104 Session set up...... 105 RESULTS...... 106 Session one...... 106 Session two ...... 107 Session three ...... 108 Session four...... 110 ANALYSIS OF RESULTS H1, H2, H3 & H3 ...... 111 Analysing H1 ...... 111 Analysing H2 ...... 111 Analysing H3 ...... 113 Analysing H4 ...... 114 VALIDITY...... 117 Environmental control ...... 118 Control of demand effect ...... 118

5 Limitations in results ...... 118 DISCUSSION ...... 119 DISCUSSION OF RESULTS ...... 119 DISCUSSION OF THEORETICAL FINDINGS...... 120 Industrial aspects...... 120 Theoretical aspects ...... 123 FURTHER RESEARCH...... 124 Real-life experiment in the shopping environment...... 124 CONCLUSION...... 124 BIBLIOGRAPHY...... 127 APPENDIX...... 133

Chapter

7 Introduction Most people have experienced a moment when a faint fragrance brings a memory of a long-lost moment in time crashing back to the front of your mind.

Often we will have forgotten about the event completely, yet a brief odour can retrieve the long-lost memory in a second.

One often-quoted example of this phenomenon is an anecdote from Proust (1922/1960) in which the author is vividly reminded of childhood experiences by the smell of a tea-soaked pastry:

“And soon, mechanically, weary after a dull day with the prospect of a depressing morrow, I raised to my lips a spoonful of the tea in which I had soaked a morsel of the cake. No sooner had the warm liquid, and the crumbs with it, touched my palate than a shudder ran through my whole body, and I stopped, intent upon the extraordinary changes that were taking place. . . . I was conscious that it was connected with the taste of tea and cake, but that it infinitely transcended those savours, could not, indeed, be of the same nature as theirs.” (p. 58)

Proust’s experiences formed the basis of what has become known as the Proust phenomenon, the ability of odours spontaneously to cue autobiographical memories, which are highly vivid, affectively toned and very old.

The reason for the powerful effect of odour can be explained via the olfactory bulb, which is a part of the brain’s limbic system, an area closely associated with memory and feelings i.e. the “emotional brain”.

In recent years we have seen advances in neuroimagining to such an extent, that neuroscientist now are capable of studying the frequency, location and timing of neural activity to an unprecedented level. However, it can be argued that the marketing field largely has remained unaware of such advances and the following potential.

Today, neuomarketing as a field of study can be defined as the application of neuroscientific methods to analyse and understand human behaviour in relation to decision-making and marketing exchange. The contribution of neuroscientific methods can be used in a marketing relevant understanding of human behaviour,

8 mixed with the advantages of already known physiological measurements for marketing.

The link to the brain's emotional centre makes odour a fascinating frontier in neuroscience, behavioural science and marketing.

This study is aimed at providing a new perspective on the emerging and controversial field of neuromarketing and the ideas of olfactory brand enhancement. We focus on the concept brand ownership via olfaction. Brand ownership is, in this study, used s a term for how brands can “own” a specific sensory cue e.g. a sound, a colour composition, a logo or in this case a scent. Brands “own” a sensory cue when the specific cue is connected with the brand and only that brand. The aim of brand ownership is to create preference and recognition among the consumers.

What is brand recognition? In general it, can be discussed to the extent to which the general public is able to identify a brand by its attributes. Brand recognition is most successful when people can state a brand without being explicitly exposed to the brands name but rather through visual signifiers like logos, slogans and colours.

We find it interesting to examine if odour cues can be used to enhance brand recognition, matched with a logo, jingle, name etc.

In order to limit our field of study we are aiming to reflect and examine the following research questions.

• Odour cues enhance brand recognition? o Is olfactory a superior sense in brand recognition? o Can the term olfactory brand ownership being applied in branding?

In order to answer our research question the following research epistemology is adopted.

9 Methodology The choice of research philosophy supports our overall research design and in turn establishes our methodological approach to explain the complexity of the research question and the way in which we gather knowledge throughout the process (Saunders et al., 2007)

Research Philosophy The primary research philosophy reflects the principles of positivism. Positivism is a philosophy of science-based views that in the social as well as natural sciences, sensory experiences, logical and mathematical treatments and reports together are the exclusive source of all authoritative knowledge. (Saunders, Lewis, & Thornhill, 2009)

“Only phenomena that you can observe will lead to the production of credible data” (Saunders, Lewis, & Thornhill, 2009, p.103)

To generate a research strategy to collect data we are using existing theory to develop hypotheses. These hypotheses will be tested and confirmed, in whole or part, or refuted, leading to further development of theory, which then may be tested by further research.

In this research study we are adding an inductive approach in prolonging from our scientific philosophy of positivism, in which we develop a theoretical framework. This framework is subsequently tested by the deductive use of experimental data.

By adding a hypothetic-deductive approach, as our scientific method enable us to proceed formulating a hypothesis in a form that could be conceived falsified by a test on observable data or reified.

Research design As a part of our research we are conducting an exploratory study, to generate a posteriori hypotheses by examining data sets and looking at potential relations between variables. The exploratory approach gives us the advantage of making new discoveries due to the less stringent methodological restriction. (Saunders, Lewis, & Thornhill, 2009). By adopting an explorative approach we are conducting an experiment developed on previous literature and by interviewing expert with expert knowledge within the field of olfactory and branding.

10 Data collection Data and knowledge are deducted from traditionally marketing theory and the field of cognitive neuroscience that brings in the empirically endorsed reliability and contributes to the constructivist narrative notions of the brand management field (Walvis, 2007).

The data used for this research study is based on secondary data, primary qualitative data via interviews and quantitative data via the experiment. The secondary data consist mostly of documentary data in the area of scientific journals, articles and websites. Other secondary data comes from multiple sources such as textbooks. Also, survey based secondary data in the form of academic surveys were used.

Approach Our research approach is in the first part of the study, as mentioned above, based on an inductive approach where we gather theoretical knowledge to exploit our research. The second part of the study is a deductive approach. Here, we develop hypotheses based on our theoretical findings and test these hypotheses via an experiment. The progress of our research is as follows: 1) Deducing hypotheses from theory. 2) Using theoretical based knowledge and qualitative data (interviews) to express how the variables of the hypotheses are to be measured. 3) Testing the hypotheses. 4) Examining the specific outcome of the inquiry.

Strategies This study is divided into two general research strategies. The first strategy is an embedded case study strategy with use of different data collections. These data collections are based upon multiple cases and interviews. This is to establish, if there occurs some kind of generalisation from the different case findings that may lead to a consistency.

The second research strategy is experimental. The purpose of the experiment is to study causal links; e.g. how different variables react if on one of them changes. A specified research design will be presented in chapter 6, the chapter regarding the experiment.

Choice The choice of research methods is based on how we have chosen to combine quantitative and qualitative techniques and procedures (Saunders, Lewis, & Thornhill, 2009). Our choice of research methods is a mixed model research. A

11 combination of quantitative and qualitative data techniques is being used and analyzed as well as combining qualitative and quantitative approaches. We applied qualitative research techniques in the form of interviews and theoretical literature in the explanatory stage and then applied quantitative research techniques in the form of an experiment in the exploring stage.

The reason why we have chosen this research method is because we want to highlight critical and crucial questions through interviews and literature and thereafter using an experiment to collect the descriptive data.

Time horizons The time horizon for this study is cross-sectional. A cross-sectional study is a study of a particular phenomenon at a particular time. Our study is not a representation of events over a given period, but a “snapshot” taken at a particular time. (Saunders, Lewis, & Thornhill, 2009). The time horizon for the execution of this thesis was constrained from the beginning.

Limitations Although the research of this study has reached its aim, some unavoidable limitations occurred. First, the time limit of this research was constraint; secondly the experiment was conducted in a controlled environment and conducted on a small sample of population. Therefore to generalise the result for larger groups may not be applicable. Other limitations on this study are how we used and collected data. Specific questions and variables were not taken into consideration before conducting the experiment, which may be a limitation in the absolute truths of findings.

12 Chapter

13 Sensory Branding

Introduction branding The following chapter will be focusing on the branding theoretical aspects of this study. In the first part, we will discuss the applied theories and examine the concept of branding in relation to sensory marketing. We are focusing on brand recognition and brand recall in order to describe the importance of brand differentiation. Further more, the opportunities for brands to create a cue to recognition through senses like visual, auditory or through scents are examined.

Further, we will examine how emotions can be exploited in branding. This examination is based upon the idea that a brand can trigger emotions through senses. By this, a brand may have a recognition advantage compared to its competitors. This part especially focuses on how a brand can reach consumer loyalty by exploiting emotions among the consumers.

In the part concerning branding with logos and sounds, we are examining how brands can exploit a specific sense, which is related to a feeling. This may be through, a sound or a logo and may create an immediate recognition in consumers mind.

In conclusion scent marketing will be introduced as the last part of the brand theory. Here, we examine how scent can be used in a marketing strategy and discuses several examples of current scent marketing strategies. We also identify the downsides with the use of scent marketing and the negative reactions that come along.

Sensory branding In the recent decades we have seen a move away from traditional mass marketing towards more experimental and event-based marketing (Krishna, 2012).

Using sensory marketing as unconscious trigger in advertising is in many ways a very efficient way to appeal to consumers (Krishna, 2012). A lot of research has been conducted, where elements of vision, touch, audition and smell are incorporated. These researches have shown how sensory cues can have a crucial affect on consumer preferences and consumer buying behaviour.

Sensory marketing could be described as a relatively new application for the understanding of sensation and perception of marketing especially regarding the area of consumer perception, cognition, emotion, learning preference, choice and

14 evaluation (Krishna, 2012).

As this study is concentrated on scent marketing, and especially on how scent can be connected to a specific brand, the focus will generally draw on former research in the field of scent marketing. Though, to fully understand the underlying dimensions of scent marketing, it will be crucial to focus on the importance of brand awareness and recognition.

In terms of defining odours, different terms are employed e.g. fragrance, perfume and aroma, which are used primarily in the food and cosmetic industry to describe a pleasant odour. In contrast malodour, stench, reek and stink are used specifically in describing an unpleasant odour. In marketing terms the word scent is the preferred option in this field. In later theory concerning the olfactory system, odour is the favourable employed term.

Brand recognition Brand recognition is a key factor in a competitive industry where thousands of brands are struggling to differentiate. To survive in a fierce competition, a firm have to consider which communication strategies it is using to create brand recognition when it comes to its brand’s core values. When focussing on sensory marketing, brand recognition is often associated with the visual aspects of the brand. Through logos, colours and text the brand is given an identity that is recognisable to the consumers. Even though visual brand recognition is where most marketers put their efforts, other senses like sound and smell can have just as crucial an effect when it comes to recalling and recognising a brand. Initially, it is important to understand how visual brand recognition is employed and further connect it to other senses.

One study (Karjalainen, Snelders et al. 2010) examined how strategically to employ a design to create visual recognition of a brand. The study was focusing on the marketing efforts of Nokia and Volvo. These two brands managed to employ a design philosophy on which, design features effectively helped expressing the core value of the brand and thereby created strong brand recognition.

The study found that the success of both companies (Nokia and Volvo) resulted from the great effort the companied made in translating their core brand values into a

15 design that created brand recognition. The companies also used different design philosophies depending on the various products in the product portfolio. The companies’ lead products had the most influence on the design features and worked as a reference point for what the brands stand for. These lead products received most intention from the managers and would later on serve as examples for new NPD projects in the company. This made it possible to influence the design philosophy throughout the entire product portfolio of the company.

The study also found that there is no easy or simple recipe for creating visual recognition for a brand but instead the companies must make an effort in continuously renewing the connection between brand value and the design features (Karjalainen, Snelders et al. 2010). The result of the study revealed that the quality of a visual brand depends on how well it is aligned with the overall brand strategy and how the brands core value is identified through the visual design.

A study like this is a good example on how a company can create customer recognition by using the visual aspect. It could also be relevant to use other senses like auditory, tactile or olfactory that to a great extent also play a very important role when it comes to brand recognition. Taking an example from the article (Karjalainen, Snelders et al. 2010), Nokia created a characteristic ring tone that was one of the first nontechnical-sounding ring tones, and was a good example on how Nokia both created a human approach to technology and a brand recognisable feature.

Branding with logos and sounds A visual logo is an effective way to create recognition of a product and a brand. Its unique design, colour and distinctiveness are crucial parameters when it comes to differentiation among competitors and consumers preferences. A typical logo has a traditional graphic form, is recognisable and creates feelings and favourable or unfavourable associations with customers.

The most straightforward way to create a specific logo ownership on a brand is through the sense of vision. Vision is in many ways the most simple of all the senses and can be used in most medias, e.g. television, billboards, Internet, events etc.

(Krishna, A. 2008). In literature the sense of sight is considered as the most important sensory channel when it comes to the perception of a store environment. Research

16 also confirms this impact of visual cues on consumer behaviour. This is especially applicable in terms of consumption, purchase quantity or sales (Krishna, A. 2008)

A visual brand logo also facilitates the identification of the brand and contributes to differentiation from its competitors, because the logo acts as the brand’s general image and value. Logos can shape the brand’s reputation and customer’s attitudes towards it and in the end affect purchase intentions.

The logos also visually represent what the brand stands for and serve as a crucial point of connection by reinforcing the brands core values. In this way, the logo creates associations between the consumer’s self and the brand, which helps the consumers see the brand as a part of themselves (Park, Eisingerich et al. 2012).

Auditory branding and jingles, is a good example on how a brand can make recognisable sense related branding.

Sound logos or jingles are, in particular, a great way of capturing the customers’ attention and making the brand recognisable just by listening to a tune lasting only a few seconds. This jingle will typically be effective at the end of a television spot. Connected with a traditional graphic logo, the sound logo will give the ad an extra vivacity. A typical sound logo is a melody lasting around 3 to 5 seconds or a sequence of sounds used at the end of a TV commercial.

Auditory is linked directly to human memory - and recall and works most efficiently if the jingle is catchy and hummable. When we hear a familiar melody or jingle, our brain automatically anticipates how it should end. In this way we become unconsciously involved with the tune and that is what gives sound logos such great power and strength in the marketing perspective (Lusensky 2010).

Those sound logos that create most value to the brand are those who have a long-term existence and through continuously repetition provide the listener with instant recognition (Lusensky 2010).

Take a brand like Coca Cola. Just by hearing the sound of a soda bottle opening, most people would link it to a Coca Cola bottle. In that way, Coca Cola has managed to take ownership of that particular sound which gives the brand a huge advantage when

17 it comes to customer’s preferences and brand perception. In this way, Coca Cola is creating a need. You hear the sound and you want to drink.

Coca Cola is also a good example of a company that uses music as a big part of its branding strategy. The global Music Manager for Coca Cola, Umut Ozaydinli, believes that music has a great ability to connect with peoples’ feelings and thereby affecting their mindset in many different ways. The right kind of music will enhance the experience of all kinds of communications whether it is a television advertisement or an event. It helps the brand communicate with the audience on a deeper level and create a whole new dimension (Lusensky 2010).

Children and Brand recognition A typical adult can contain a huge number of brand representations in the memory (Achenreiner, John et al. 2003). Much research has been conducted to explore this field, but the research literature seems to have forgotten that children and youngsters are becoming more and more conscious about brand preferences. In short, age seems to have a determining role when it comes to memory and recognition. Being exposed to a certain brand in the early childhood increases the memory of the brand in later adult years (Achenreiner, John et al. 2003). In a later chapter (the Olfactory System p. 38, the concept of autobiographical memory will presented and explained.

The current generation of children and youngsters are the most brand conscious generation ever. They have clear preferences and know what they want (Achenreiner, John et al. 2003). A study (Valkenburg, Buijzen et al. 2005) was conducted to examine how and when brand awareness develops in young children. The study highlighted the influence of several environmental factors such as television, parents or peers that interfered the children’s brand awareness. The study focused on the terms brand recall and brand recognition and the importance of taking advantage of the marketing possibilities this young generation presents.

Brand recognition is necessary for purchasing a specific brand in a retail environment whereas brand recall is to what extent the consumer can remember the brand name or other brand attributes by top of mind. (Valkenburg, Buijzen et al. 2005)

According to the author (Valkenburg, Buijzen et al. 2005), children’s ability to recognise brands starts earlier in their development then the ability to recall brands.

18 I.e. children are better at recognising a favourable brand in a retail environment then recalling a brand out of context.

The explanation for this notion is that recalled memory requires two cognitive steps; 1) a mental search for a specific memory unit. 2) A determination of whether the activated memory unit is actually correct.

In contrast, to recalled memory, recognition memory requires only one step and that is step 2). Children generally have problems with taking a mental search for a particular memory unit and therefore it is easier for them to recognise than recall. (Valkenburg, Buijzen et al. 2005)

The study concluded that the younger the children were, the harder it was for them to recognise and recall the brands. Especially brand recall was very difficult for the youngest of the children, and they could hardly recall any of the brand logos.

The study also showed that even though age was a crucial factor in this case the television exposure and the influence of parents and peers also had a central role in the development of young children’s brand awareness. It appeared that children’s brand recognition starts earlier in development than their brand recall. Furthermore, the fact that children and youngsters are becoming more and more brand conscious, marketers are becoming well aware of the accessibilities end receptiveness of this target group.

Another study from 2009 (Ellis, Holmes et al. 2009) investigated the importance of focusing on children when it comes to brand recognition. The earlier in life a person was represented to a brand (name or logo) the faster and better the brand was recognised. Early acquired brands would especially be favoured in impulse-buying situations.

Important notions from theses studies are, that early brand exposure in childhood generates greater brand recognition in adulthood and will persist through life.

Emotional bonding to a brand Marketers know that if they can create a positive emotional bond between the brand and the customer, they may have a preferential advantage. In an article from Grisaffe and Nguyen (Grisaffe, Nguyen et al., 2010) the concept of repurchasing based on

19 emotional attachment to brands is being portrayed. Researchers have widely acknowledged that repurchasing driven by emotions has a positive affect. According to the article, emotional brand attachment is a significant determent of loyal behaviour.

The study was conducted to investigate the relationship between people and brands that they fell emotionally attached to. The test persons in the study were to report and describe how long they have purchased this brand and why they fell emotionally attached to this specific brand. Among the various reports, some of the test persons described how they fell emotionally attached to a brand because of the sensory pleasure that the brand provided.

In particular, if a brand had some sort of scent that recalled some pleasurable memories from the childhood the participants felt that they had a strong emotional bond to the product or brand. It was especially when the brand evoked some nostalgic experiences of eras, people or places, which the participants felt emotionally attached to the brand. Because of this emotional bond they have remained loyal towards this brand for several years and refuses to buy or try other products.

One study (Albert, Merunka et al. ) portrays how consumers develop feelings of love towards a brand. The respondents of the study were to describe their feeling of love for the brand and which special relationship they had with the brand. The study was aimed at determining if a feeling of love towards a brand is similar to the feeling of love for a person and which dimension characterizes this type of feeling. Anther issue the study investigated was the barriers across different cultures. Could different cultures have different perceptions of the love construct? In this case a French and a U.S study was conducted.

The study identified several different dimensions of love for a brand. Among them was passion for a brand, self-congruity between self-image and product image. It also identified how the brand favours consumer’s dreams, memories evoked by the brand, pleasure that the brand provides to the consumer, the beauty and attraction towards the brand.

Especially passion and pleasure were the two love dimensions that both cultures (the French and the American) shared in this matter. What was worth noticing in this

20 context was the different use of the word love in the two cultures. The Americans use the word love in a wider extend than the French who rather used the words “like” or “adore” to describe their feelings towards the brand. The French were also more dedicated to the dimensions of memories and trust especially when it came to memories of childhood, images or history.

Other dimensions of connections towards a brand were found, but did not relate to feelings of love. Attachment and commitment were some of those dimensions that had an important effect on brand relationships, but were not directly related to the feeling of love. The study showed that when the term attachment was used, the consumers said that they were only attached to the brand and did not posses any feelings that could be described as loving feelings.

The word “love” is often used when we describe an object, an activity or when we most importantly describe our feelings toward another person. This could be: “ I really love that dress” or “ I love running”. This means that objects and things have a big influence on consumers and how they perceive themselves. A study from 2005 (Ahuvia, 2005) investigated how objects and activities that were “loved” by consumers could be linked to an identity construction.

The main purpose of the study was to discover to what extent identity issues are central to consumption and that possessions are an important part of the self. Interviews were conducted to investigate to what extent items were seen as a part of the self. It was discovered that it varied continuously with the level of attachment to the brand.

Love objects seemed to be a symbol of the personality or self that the consumer wants to become. It could also be considered as the consumers’ conflict of wanting to pursue unattainable ideals. In most cases, the so-called socializing agents would endorse these ideals. Socializing agent could be close family, peers, school relations or other relations that are big influencers in the consumers’ life. These agents could act as a role model and dictate what is modern. The consumers purchasing decisions is highly affected by these individuals (Ahuvia, 2005).

Having a love object seemed to have given the consumers a solution to a possible identity conflict. According to the research, these love objects receive much of the

21 consumers’ emotional powers from helping resolve these conflict. This may have a great importance in the consumers’ lives.

The main intention with this research was to show how consumers use things that they love to construct a sense of self when they are to face identity conflicts. Furthermore it portrays how a materialistic aspect seems to have gained more and more access into the lifestyle of today’s consumers (Ahuvia, 2005). As possessions reflect the identity of the consumer and in turn these possessions contribute to that same identity, the consumer has then created an extended self (Ahuvia, 2005). These possessions could be anything from clothes to computers, but it could also be a specific perfume that the consumer wants to be indentified with. The scent of the perfume has a specific meaning and value for the consumer.

Emotive branding The new area of branding, hereunder experiential branding, seeks to create more intimate and unique experiences across the full range of consumer touch points. Experiential branding relies on consumer needs and strives to create a sensory- emotive experience rather than just to communicate an identity. It is also based on realizing that the brand is, for the consumer, a series of experiences that together form the “story” of the brand-customer relationship (Hill, Dan, 2003).

One good example of a company that understands the importance of the brand story on the children’s market is McDonalds. The company has managed to create an overall setting that contains everything from the surroundings. E.g. the playground, a wide variety of imagery, symbols and associations such as Ronald McDonald toys, the signature colours red and yellow and the golden arches. All of these elements represent a radical new form of brand equity and a story that taps into the target audience (Hill, Dan, 2003).

By tapping in early, in the child state, the brand story has a longer shelf life and offers a greater value later on in the adult life. It also increases the possibility that the brand and its value will be passed on to the next generation.

Having a “story” tied to the brand also provides a lot of value for the brand. The golden arches and the other elements used by McDonalds have managed to give the brand a width where the food is not the only important thing. This means, that the

22 French fries might be served cold but provided with the total branded experience the customers seems to neglect these disappointments (Hill, Dan, 2003).

Scent Marketing Imagine being in a store looking for a new sweater. Your eyes are focusing on the colours and form of the sweater while your hands are feeling the smooth fabric. The speakers are playing some modern music in the background and thereby engaging your auditory system. In addition to these sensory cues, a specific scent might have been added in the store to activate an unconscious emotion. This could be the scent of vanilla or rose maroc depending on whether you are a woman or a man (Bradford, Desrochers et al. 2010). Without you being aware of it, this scent could be the crucial factor in the decision making process of your purchase, and it could have a crucial effect on your buying decision.

In the chapter; Cognitive Neuroscience, a more in dept examination of the consumer buying behaviour will be examined (p. 52)

In a scent marketing aspect you can talk about three different ways in which scents are used (Bradford, Desrochers et al. 2010). Figure 2.1 displays these three ways as a framework for how scent is used in marketing. From the left it is the “marketer scent” that is used by marketers as a promotional tactic. Examples of this could be Verizon adding a chocolate scent to its stores when introducing its new Chocolate cell phone in 2008 (Bradford, Desrochers et al. 2010).

The next type of scent is “product scent” where the scent is the actual product. This could be a product like perfume or air fresheners that customers buy to use them on them selves or in their homes to create a preferred scent.

Ambient scent, the last of the scent categories, is a general odour that is presented as a part of a retail environment and is not derived from a product. In this category of ambient scent there are two types. First is the objective scent, which is scent, used in a retail environment with the attention of affecting the attitudes and behaviour of consumers. The other type is convert objective scent. Convert means that the scent is not openly acknowledges or displayed, but it does not mean that the scent is intentionally hidden. The convert ambient scent is also infused to motivate an action or influence the consumer behaviour but is completely below the consumers’ entrance

23 of consciousness. The use of convert ambient scent, though, is very risky for marketers because of the manipulative motives. If consumers discover that their buying behaviour has been manipulated with a scent, it might create a feeling of intrusion in their minds.

When consumers become aware of this manipulation of their senses, they automatically start thinking less of the store and get the feeling that their “free will” has been taken away from them. (Bradford, Desrochers, et al. 2010). Further details about this area will be presented in the next part; The critical aspects of scent marketing p 23.

A research (Bradford, Desrochers et al. 2010) showed that up to 84% of customers in a shoe shop were more likely to buy shoes or like them more when the environment was scented. Further, many of the costumers said they would pay 10-15% more for the product. According to the Scent Marketing Institute (SMI) some of the most effective scents are leather and cedar because of their abilities to motivate the consumers to buy expensive furniture. Sweet citrus scent also has a very positive effect on the consumer buying behaviour. In a study, the citrus scent manages to almost double the average total purchases in a retail store. Other studies have showed that scent paired together with music have positive effect on consumers shopping behaviour, since the customers tend to stay longer and their moods tend to get better. When music and scent were congruent with each other positive interaction effect found place. These studies show how customer satisfaction can increase through thoughtful insertion of ambient scent. (Bradford, Desrochers et al. 2010)

It is not only from a marketing point of view that an ambient scent can be effective. Study shows that pleasant scents can have a positive affect on performance in the workplace. Adding scent to the workplace environment seemed to increase people’s creativity in problem solving and self-efficacy (Bradford, Desrochers et al. 2010).

Figure 2.1 Framework for using scent in marketing: Source: (Bradford, Desrochers et al. 2010).

Even though scenting the stores in order to sell more products, it is a relatively new development. Marketers already tried experimenting with this decades ago, but obtained a rather negative result (Bradford, Desrochers et al. 2010). The general concern about the environment and health and the belief that scent is personal and should not be public phenomenon, resulted in an attempt that backfired. But today these worries seem to have disappeared, and still more retail stores, casinos, hotels etc. are using scent to make the consumers feel more willing to buy or relaxed (Bradford, Desrochers et al. 2010).

Studies on scent marketing A study has been conducted on how feminine scents were used and how sales of women clothes doubled (Trivedi, Bijal, 2006). Using a gender-preferred scent seemed to be the most important factor in this study. Both men and woman browsed in the store for a longer time and spent more money in stores that had inserted an ambient scent that appealed to their gender. The study also showed that the scent preference depended on distinct geographic and cultural factors showing that genders have a specific preference within each geographic area and culture. This will be further discussed in a later chapter (The sent of using scent, pp. 72)

There are many examples of stores and companies there are using scent as a form of signature brand. The cell phone company Verizon Wireless used chocolate scent

25 when launching their new LG chocolate phone; Sony also joined the scent phenomena by scenting their Sony Style stores and went even further with sending its signature scent home with the costumer in scented sachets in shopping bags (Trivedi, Bijal, 2006).

The Danish shoe brand Ecco, has been experimenting with scent marketing in their retail stores to stimulate the costumers to make purchases. Ecco uses grass scent in their golf shoes departments to enhance the feeling of standing on a golf course in order to induce the costumer to buy. Ecco, also scent their retail stores with the scent of leather to emphasize that their shoes have a high quality (Ecco, Ministeriet for Børn Og Undervisning)1. This is a relatively new marketing initiative for Ecco and they are still testing the effect of scent marketing to determine if this strategy should be a core component of their store environment, but so far it have shown very positive effects (Ecco, Ministeriet for Børn Og Undervisning)2.

These are a few examples of brands using signature scenting. Most brands, though feel reluctant to admit that they are using scent in their stores and try to avoid the publicity. Some brands even fear that it would destroy the effect of the scent if it became public that subliminal scenting was used as a marketing strategy. The fear of being accused of subliminal marketing and manipulation is also a reason why some brands feel reluctant to tell the public the truth about the use of scent in the marketing strategy. General concerns for the use of chemicals in scents, which could evoke asthma, or an allergic reaction are also a reason why brands do not openly admit to using scent marketing (Daye, Derrick , 2008)3.

Intangible products Moving from tangible products to more intangible products, such as services, using scent as a marketing strategy can also be an effective tactic. The presence of a scent

1 (http://www.emu.dk/erhverv/merkantil_caseeksamen/ecco/fakta/tema_maalgrupper_og_koebmandska b.pdf). 2 (http://www.emu.dk/erhverv/merkantil_caseeksamen/ecco/soundslides/15_jacob_duftmarkekdsfoering /kodefil.html) 3 http://www.brandingstrategyinsider.com/2008/04/the-sweet-smell.html#.UQ2VCkojjcs

26 in an environment where consumers are to make important decisions, e.g. taking a loan or buying insurance, has great significance and could have a crucial influence on the consumers’ intentions and behaviours and make them more willing to take a loan. A pleasant scent would of course affect the service or object in a positive way. But this could be rather tricky, since scents in general are perceived differently from person to person. Studies have shown that in most situations a pleasant scent in a retail environment leads to a more positive and longer product evaluation, and the inclination to revisit the store increases (Lena Goldkuhl, Maria Styv et al., 2007).

Having a scent in the store environment is not always enough. Research has shown that there has to be some kind of congruity between the product/service offered and the scent. In the service sector, the entire composition of the colours, sound, and the product offering depend on whether the specific scent has an effect or not (Lena Goldkuhl, Maria Styv et al., 2007).

More and more service brands choose to create a signature scent to help trigger emotions in consumers that make the connection stronger toward the brand (Lena Goldkuhl, Maria Styv et al., 2007).

An example of a service provider that has been using a signature scent is Singapore Airlines. The company is consciously using scents in their marketing strategy. A specific scent is used when you buy the ticket in the store, when you receive the ticket and when you are flying with the airplane. The scent symbolizes the total experience you get when you fly with Singapore Airlines, and this scent is printed in the memory and will stimulate future associations towards to the experience and then to the airline company ( Grumstrup, Kirsten, 2005)4.

The critical aspects of scent marketing Ever since marketers started using scent as a communication strategy, critical aspects and ethical issues have been raised concerning the scent marketing industry (The Marketer, 2011)5.

As the sense of smell prompts immediate emotional response, marketers might take advantage of the strong unconscious emotions consumers may have toward a specific

4 http://www.kommunikationsforum.dk/artikler/duften-af-penge 5 http://www.themarketer.co.uk/trends/scent-marketing/

27 scent. Manipulating with consumers unconscious emotions via advertising and branding is not a new phenomena in the marketing field, but due to the many unknown variables in scent marketing, the manipulation of senses may see a lot more interfering since, the senses of scent is one of the strongest and most vivid. (Hertz, Rachel S. and Engen, Trygg 1996)

Other critical aspects of the scent marketing field according to (Bradford, Desrochers et al. 2010) are that the scent industry in its entire links are well-known of manipulating the consumers. The use of convert ambient scent, especially, is very risky for the marketer. If consumers discover that their buying behaviour has been manipulated with a scent they might develop a negative reaction to the loss of freedom to make a choice. This reaction is called “psychological reactance” (Bradford, Desrochers et al. 2010).

Once consumers feel that they have been manipulated into making a certain choice in a retail store, the consumer might think less of the store that they are visiting. Furthermore, when a consumer realises a manipulation the consumer will think more negatively of the sources behind the persuasion attempt and of oneself. This will, in worst case, end up crashing the whole idea behind ambient scent marketing (Bradford, Desrochers et al. 2010). To detect the source of these critical aspects, a closer look at the scent marketing industry and the different channels is explained in the following pages.

Figure 2.2 displays a model of four components that binds the scent industry together -from the developer to the consumer. These components are: 1) the ambient scent researcher 2) the ambient scent marketer 3) the retailer and 4) the consumer. The researcher develops the scents that are believed to have an effect on behaviour and buying attitude of the consumers. The scent marketers distribute the scents to the retailers with the purpose of generating demand and cultivating the markets. The retailer infuses the ambient scents into the retail environment. Overall the retailer is the customer in the ambient scent industry.

Figure 2.2 The Scent Industry, Source: (Bradford, Desrochers et al. 2010).

The linkage between the different components in the scent industry can often have some ethical implications that are important to consider when using ambient scent in retail stores. Retailers use ambient scent to gain advantages in the competitive markets, but forget the disadvantages they impose on their consumers (Bradford, Desrochers et al. 2010). It is not illegal for retailers to use this tactic, but some find it unethical to influence the consumers in this way and believe that there should be some kind of sign telling the customers that the store is scented (Bradford, Desrochers et al. 2010).

In the link between the ambient scent researcher and the marketer same ethical implications can occur. Some scent researchers study the consumers to find the right ambient scent for a marketing strategic purpose. The scent researchers should not knowingly provide marketing stimuli to scent marketers that manipulate the consumer buying behaviour. If they do, this will then become an ethical dilemma for the scent researchers (Bradford, Desrochers et al. 2010).

In the ever-changing retail industry it is important for marketers to employ the most innovative marketing practices in order to be competitive. Scent marketing is increasing in its popularity as being a competitive advantage in a store atmosphere.

In some cases, the scent marketers promote the capabilities of scent marketing in ways that are not reliable. These unproven claims that scent marketers further give to the retailer, directs them to purchase ambient infusion products that do not provide the promoted result. Seen from an ethical point of view scent marketers should be

29 careful of providing the retailers with ambient scent that influence consumers without their knowledge.

When retailers are using ambient scent, whether it is convert or not, consumers will be influenced to meet the goal of the retailer without their awareness. Retailers are using ambient scent to develop certain purchasing behaviours among their customers and to create significant competitive advantages. Because we know that scent is directly tied to our emotions and memory, the unethical approach, in this matter, is especially present when the ambient scent is convert and therefore not able to be detected by the consumers.

It is to be noted that objective ambient scent and convert objective scent have started to create serious concerns when it comes to manipulation and ethical interventions. Despite of that, scent used in non-commercial matters can be considered as having positive effects for the retailer and other stakeholders e.g. the society, the organization and the individual (Bradford, Desrochers et al. 2010).

Importantly it can also be questioned if the ambient scent infused in a retail environment, has the same affect on all the costumers. The scent chosen by the retailer may not have the same emotional effect on the consumer as hoped for, since scent highly is subjectively perceived.

Allergy and asthma is another concern that comes a long with using ambient scent as a marketing strategy. The Danish association, Astma-Allergi Danmark, express great concerns about the increasing use of ambient scent in the retailer environment. They believe that people with asthma and allergy problems find it very irritating being in an environment where the air is scented. It could, in a worse case scenario, trigger an asthma attack or give them complications such as coughing, difficulties with breathing, a feeling of suffocation or general unpleasantness.

It is especially children that suffer from asthma and they are therefore more exposed to asthmatic attacks than adults. Astma-Allergi Danmark believes that people should at least be warned when a store is using ambient scent so that they have the opportunity to deselect these stores. To day there is no law that specifies that retailers should make it visible that they are using ambient scent in their stores. It is all up to the store manager to make this decision. The association is wondering why there are

30 no regulations in this area because it can be painful for an asthma or allergy patient to be in an environment or a workplace where the air is scented.

They also believe that a bigger focus should be put on which kind of chemicals that surround us in the every day life. Unions should also be more aware of this problem and focus more on this issue on the behalf of their members (Astma-Allergi Danmark)6.

Sub conclusion We have through this section been focusing on branding in relation to sensory marketing. At first, we analyzed the importance of brand recognition and recall in order for a brand to create a consumer preference. A connection was drawn to other sensory cues, which, like scenting marketing, also having the abilities to create brand awareness. A focus was especially put on the sensory cues of the visual and auditory. Having a visual strong design is an important sensory cue to create brand value and instant recognition for the consumers. A sound logo can create a need in the consumers mind, e.g. the sound of a Coca Cola bottle that opens and lead to an urge for a Coca Cola drink.

Consumers use brands to create an identity, which could be seen as a move to a more materialistic lifestyle where brands become a part of the (extended) self. In this new age of branding, creativity and novelty is essential parameters.

The concept of scent marketing is a very interesting field in branding and opens new possibilities for enhancing brands via scent. The examination within the area of scent marketing revealed some interesting variables that open new questions concerning how brands can exploit scent via ambient scenting and if it is possible to teach consumers to recognise a brand via scent. Other questions raised in this chapter are; how scent is perceived e.g. objective or subjective? And if some of these questions can be identified via neuropsychological studies.

The next chapter is a discussion on how cognitive psychology and neurobiological examinations may influence scent branding and how olfaction works.

6 http://www.astma-allergi.dk/duftmarkedsfoering

Chapter

Olfactory System This chapter will mainly focus on the olfactory system and theoretical discussions on how olfaction has been studied in relation to memory and learning.

Figure 3.1 Olfactory pathway (Professer Claffey, 2012).7

What is Olfactory The olfactory system represents one of the oldest sensory modalities in the phologenetic history on mammals (Vokshoor, Amor 2011)8. Nevertheless the olfactory system remains in many ways the least understood of the sensory modalities. The olfactory system is the most thoroughly studied component of the chemosensory triad and processes information about identity, concentration and

7 http://mikeclaffey.com/psyc2/notes-other-senses.html 8 http://emedicine.medscape.com/article/835585-overview

33 quality of a wide range of chemical stimuli. (Castle,P.C; 51 Purves D, Augustine GJ, Fitzpatrick D, et al., 2011). These stimuli are named odorants and interact with the olfactory receptor neurons in the olfactory epithelium that lines the interior of the nose. Via chemical sensors the olfactory systems makes us able to detect food and it influences social- and sexual behaviour. The system is an extremely discriminative and sensitive chemosensory system, which makes human beings able to distinguish between a predicted high of 1000 to 4000 odours.

In terms of naming odour different terms are used as describe in above chapter. In this chapter the word scent is being replaces with odour since the term odour is better fitted in the olfactory discussion.

Odour is normally caused by one or more volatilized chemical compounds, generally at a very low concentration and stems from a substance, which is somehow volatile, i.e. a substance that easily can turn into a gas. This substance will send off molecules – odorants. That is why non-volatile materials’ like steel do not have an odour. (Dowdey, Sarah. 2007). 9 Factors like temperature and humidity have a great effect on odour due to the increased molecular volatility. This explains why garbage smells stronger in the heat and wood musty after rain. Other odours that are dissolved in water or fat tend to have a more intense odorant.

An odour is activated when airborne molecules stimulate the olfactory receptor cells. The perception of these odours begins with the inhalation and transportation of volatile aromas to the olfactory mucosa, which, are located bilaterally in the dorsal posterior region of the nasal cavity. (Hutchins, 2012 )

The olfactory mucosa (figure 3.1) consists of a layer of columnar epithelium, surrounding millions of olfactory neurons; these are the only neurons to communicate with the external environment and are undergoing constant replacement. (Hutchins,

9http://science.howstuffworks.com/environmental/life/human-biology/smell.htm

34 2012) Basal cells near the lamina propria are undergoing differentiation and develop into these neurons about every 5-8 weeks.

When an air born odour sweeps up through the nostrils, the molecules hit the olfactory epithelium – the centre of olfactory sensation. When an odour is sensed, is done by the help from the olfactory receptors cells, which are neurons with knob- shaped tips called dendrites. When an odorant stimulates a receptor cell, the cell sends an electrical impulse to the olfactory epithelium. (Dowdey, Sarah. "How Smell Works" 29 October 2007). The olfactory bulb has close access to the amygdala, which processes emotion and the hippocampus, which is responsible for associative learning. Thus, we see a tight wiring, odours would not trigger memories if it weren’t for conditioned response. This conditioned response is started when you first smell a new odour, this odour you link to an event, thing, a person or a moment. The brain forges a link between the odour and a memory, e.g. cinnamon with Christmas or lavender with a summer memory in the South of France. When you encounter the odour again, the link is created and ready to elicit a memory or a mood.

In everyday life, odours are often connected to contextual relationship to other events, such as Christmas, dinner, persons, etc. as mentioned above. Attention often focuses on how we feel or behave towards the events rather than on naming or identifying the odour (Olsson 2003). According to (Engen 1991) “ Olfaction is a primitive survival system serving the function of quickly categorising experiences with the chemistry of the environment without reasoning about them (…) Odours are named by function, what one does with them and in what context (…) Other means of encoding than language must be involved” (pp. 83-85)

The interest in psychology and olfactory is growing area, whereas conventionally research on vision and auditory has tended to dominate behavioural science and sensory marketing. Even though research, concentrating on these sensory fields continues, attention is now more and more being directed towards the olfactory modality and in particularly to psychological effect of the odour. (Chu,Simon 2000)

Olfactory discoveries The psychology of olfaction or aroma-chology has involved several different focuses, including a wide rang of topics. This could be the effect of odour on specific behaviours; examples could be interpersonal and consumer behaviour. Other focuses

35 are the odours ability to effect emotional- and psychological changes e.g. changes in mood and behaviour, and the influence of odour manipulation on cognitive memory. (Chu,Simon 2000) The power of odours to vividly remind one of a particular past experience is particular interesting in olfaction and memory. One anecdote that is often mentioned in the literature stems from Marcel Proust (1922/1969) (Chu, Downes 2000) (p. 4). Proust was reminded of a childhood experience by the smell of a tea-soaked pastry. Marcel Proust’s experience formed the basis of what has been known as the Proust phenomenon i.e. the ability of odours spontaneously to cue autobiographical memories, which are often very emotional and often old.

This experienced called involuntary autobiographical memory is a subcomponent of memory that occurs when encounters in everyday life evoke recollections of the past without conscious effort, e.g. like if a passing smell of cinnamon suddenly reminds you of Christmas.

This phenomenon called the Proustean Phenomena is interesting when discussing the possibilities for using odour in a marketing sense. The ability for odour to recall memories that is more emotional than memories elicited by other sensory stimuli.

Today there is a positive support for this statement, since many scientists in a number of cross-modal laboratories and autobiographical studies have conducted episodic memory studies comparing olfactory, visual, verbal, tactile and auditory variants of same cues. One study by Hertz and colleagues (1998) has consistently shown that when a cue is presented in olfactory form, memories are more emotional as indicated by self-report and physiological responses. Such as heightened heart rate compared to memories evoked by the same cue presented in other sensory formats (Herts et all 2003). Here, other studies have also shown that odour-cued memories were rated more pleasant than visual or verbal variants of same items.

Evidence for these findings can be explained via the olfactory systems location in the limbic system (figure 3.2), which is a cluster of brain structure including the hippocampus, amygdala, anterior thalamic nuclei, septum, limbic cortex and fornix,

36 which also is home for emotions, behaviour, motivation and long-term memory (Medline Plus 2012). 10

Figure 3.2 Limbic system11

Evidence supporting the emotional silence of odour-evoked recall have been shown by Herz et all 2003, who proved the emotional potency of odour –evoked memories via functional magnetic resonance imaging (fMRI). fMRI is an MRI procedure that measures brain activity by detecting associated changes in blood flow. The primary form of fMRI uses the blood-oxygen-level-dependent (BOLD) contrast. (figure 3.3)

The study compared regions of activation during recall, triggered by olfactory and visual cues that were connected to meaningful memory and a comparable control cue presented in olfactory and visual form. The fMRI analyses indicated significantly greater activation in the amygdala and hippocampal regions during recall to the personally significant odour than other cue, and the behavioural responses confirmed that emotional responses were greater to the personally meaningful odour. These findings are providing a convincing neurobiological evidence for subjective experience of emotional potency of odour-evoked memory is correlated with activation in the amygdala. (Herz et al, 2003)

10 http://www.nlm.nih.gov/medlineplus/ency/imagepages/19244.htm 11 http://mycozynook.com/102RGCh28OH.htm

37 Figure 3.3 (Herz et al, 2003) displays the medial temporal lobe cluster of positive activation for the contrast between Experimental Odour (EO) and Experimental visual (EV) + Control odour (CO) +control visual (CV). As can be seen, significantly greater activation occurred in the amygdala for EO compared to the other cue types. (Hertz et al. 2003)

The positive activation difference for the comparison EO vs. EV + CO + CV is shown in color on the left side of the brain with the scale bar to the right in arbitrary MR units. The slice shown is at Z = −16 mm inferior to anterior commissure (AC). The maximum intensity difference of 1.65 (MR units) appeared at 14, 8, −16, relative to the AC, corresponding to left hemisphere Broadmann’s areas 28 and 34. The white outline denotes the regions of interest (ROI) on the left, including the hippocampus, amygdala, and parahippocampal gyrus, used for tests of lateralization

Generally, studies of the neurological functions of involuntary memory have been few. One study of the involuntary memory compared the involuntary memories with voluntary memories by using Positron Emission Tomography (PET). The study found that involuntary memory retrieval is mediated by the hippocampus, which is associated with episodic memory retrieval (Rugg, M.D, Fletcher, P. C. 1997).

One other study found that the medial temporal lobe, the posterior gyrus, and the precunueus are activated during retrival success with or without executive control seen within right dorsolateral prefrontal cortex. (Hall, N, M., Gjedde A. & Kupers, R 2008)12 This tells us that involuntary memories are retrieved using the same system

38 as voluntary memory when retrieving perceptual information. (Hall, N, M., Gjedde A. & Kupers, R 2008)

Role of the amygdala The amgydala, which is an almond-shaped cluster of neurons situated deep in the brain’s medial temporal lobe and lies beneath the primary olfactory cortex (Science Daily)13 has proved to be involved in the formation of memories and emotional experience, especially those associated with defence and fear (Murray, Elizabeth A., et. al. (2009).

In complex vertebrates, the amygdala performs primary roles in the formation and storage of memories associated with emotional events. Research indicates that, during fear conditioning, sensory stimuli reach the basolateral complexes of the amygdalae, particularly the lateral nuclei, where they form associations with memories of the stimuli. (Murray, Elizabeth A., et. al. (2009).

There are functional differences between the right and left amygdala. In one study, electrical stimulations of the right amygdala induced negative emotions, especially fear and sadness. In contrast, stimulation of the left amygdala was able to induce either pleasant or unpleasant.

Bilateral activation of the brain has been seen with experiments with unilateral stimulation, which can be accomplished by placing an odour stimulus under one nostril. Here we can se that the activation is not exactly equal in both hemispheres (Olsson, Mats 2003). The explanation is that different parts of the brain are involved in olfactory memory depending of what type of memory is being processed i.e. implicit memory or explicit memory. Previous studies have shown that the left hemisphere is activated during verbal semantic retrieval of odour-related memories, where the right hemisphere proves activation during non-verbal retrieval of semantic odour-relate information. (Olsson, Mats 2003)

There are also direct projections to the hippocampus, which are involved in the integration of various sensations into memory. Neuropsychological researchers have suggested that this pathway is important for the development of olfactory memories.

13 http://www.sciencedaily.com/articles/a/amygdala.htm

39 The primary olfactory cortex has both direct and indirect pathways connected to the amgydala, which is vital for e.g. an animal or a human to create memories of olfactory stimuli, which can threaten the survival. (Olsson, Mats 2003)

Memories of Odours Scientists and philosophers have long wondered how we manage to remember odours despite the fact that each olfactory neuron in the olfactory epithelium only survives for about 60 days where after new cells replace them. The replacement of neurons in the olfactory epithelium differs from most processes of the body, where neurons die without any successors (Pines, Maya)14. When olfactory neurons die, a layer of stem cells beneath them constantly generates new olfactory neurons to maintain a stable supply.

Recollection of memory The relationship between odour naming (to reflect semantic memory) and odour recognition memory (to reflect episodic memory) has been the topic of considerable interest to investigators studying odour and flavour perception. Understanding this connection is important to the understanding of the fundamental processes underlying olfactory perception and cognition.

Previous studies of odour and memory have dealt primarily with explicit forms of memory, which is the conscious memory, i.e. recollection of previous experience and information we use throughout the day to remember appointments and memory of e.g. an event from years ago. (Bernard J. Baars and Nicole M. Gage 2010) Explicit memory or declarative memory involves conscious recollection where implicit memory is unconscious and unintentional form of memory, this memory is also characterised as long-term memory.

There are two types of explicit memory, one part called the episodic memory and one called the semantic memory. The episodic and the semantic memory combined forms the autobiographical memory system. (Bernard J. Baars and Nicole M. Gage 2010)

The autobiographical memories consist of the recollection of events in a person’s life, like experience, people and particular time and place (episodic) and general knowledge like facts (semantic). These memories can be something that happened to

14 http://www.hhmi.org/senses/d140.html

40 the person directly or memories of events that happened around them. Episodic memory is necessary when remembering your past i.e. “time travelling”. (Bernard J. Baars and Nicole M. Gage 2010) Semantic memories are knowledge of historical events, mathematics, writing and reading or recognition of friends.

A study of autobiographical memory conducted by Johan Willander and Maria Larsson (2007), investigated the influence of verbal and conceptual processing on the retrieval and phenomenological evaluation of olfactory evoked memories, and whether the experienced qualities of retrieved information are affected by olfactory exposure per se. (Willander,Johan 2007)

The test subjects whom were all older adults were randomized into one of three cued conditions (odour only, name only or odour name) and then asked to relate to any autobiographical event for the given cue.

The main aim of the study was to explore whether (1) the age distribution of olfactory-evoked memories differs from memories cued by words and pictures and (2) the experimental qualities of the evoked memories vary over the different cues. The result showed that autobiographical memories triggered by olfactory information were older than memories associated with verbal and visual information. Specifically, most of the odour-cued memories were located to the first decade of life <10 years, whereas memories associated with verbal and visual cues peaked in early adulthood <11-20 years. Interestingly, odour-evoked memories also were associated with stronger feelings of being brought back in time and these memories were less thought of, compared with memories evoked by verbal and visual information. The findings and pattern from the study may suggest that odour-evoked memories may be different from other memory experiences. (Willander,Johan 2007)

41 AUTOBIOGRAPHICAL ODOR MEMORY 1661

The Distribution of Memories Over A the Life Span .5 For each participant, the number of evoked memories dated to a specific decade was divided by the subject’s total number of memories. The proportions were then submitted .4 to a mixed two-way ANOVA with cue type as between- groups factor, and decade as within-group factor. The analysis yielded a main effect of decade [F(7,63) 12.18, .3 p .001]. Post hoc testing showed that a higher proportion of memories were located to the first two decades as compared to the third to eight decades. Also, more memories .2 were overall localized to the first than to the second decade.

Interestingly, the interaction between cue type and decade Proportion of Memories .1 was significant [F(14,126) 1.76, p .05]. The source of this interaction was related to the first decade where more memories were generated in the odor-only condition 0 as compared to the name-only condition. The amount of 0–10 11–20 21–30 31–40 41–50 51–60 61–70 71–80 memories generated in the odor-name and odor-only con- Age at Event (years) ditions, and odor-name and name-only conditions did not differ reliably (ps .05). No other comparisons were reli- B able. The age distributions across the three cue conditions .5 are displayed in Figure 1. Given the unbalanced number of men and women across the three conditions meaningful gender analyses could not be performed. .4

Experiential Ratings .3 The experiential data for the evoked memories across the two conditions (rating with the cue/rating without the cue) were submitted to a 3 (cue type) r 2 (rating condi- .2 tion) mixed ANOVA. The first factor varied between subjects and the second within subjects. The ANOVA on rated pleasantness (valence) revealed a Proportion of Memories .1 main effect of cue type [F(2,69) 5.18, p .01]. Tukey post hoc analysis indicated that odor-only evoked memories (M 6.43, SD 1.74) were rated as more pleasant than the 0 name-only evoked memories (M 5.49, SD 1.38). The 0–10 11–20 21–30 31–40 41–50 51–60 61–70 71–80 memories evoked by odor names (M 5.97, SD 1.11) did Age at Event (years) not differ from odor-only or name-only evoked memories on C rated pleasantness. The main effect of rating condition was .5 not significant (p .70). No interaction effect between cue type and rating condition was observed (p .30). A main effect of cue type was demonstrated for emo- .4 tionality [F(2,69) 3.59, p .05]. Tukey post hoc comparisons indicated that memories evoked in the odor-only condition were more emotional (M 5.22, SD 2.00) as .3 compared to the name-only (M 4.01, SD 1.54) and odor-name (M 4.23, SD 1.80) conditions. The name- only and odor-name conditions did not differ reliably. No .2 main effect of rating condition was observed (p .20).

The interaction between cue type and rating condition was Proportion of Memories not significant (ps .90). .1 Cue type had a reliable effect on the feeling of being brought back in time to the occurrence of the event 0 [F(2,69) 4.30, p .05]. The odor-only evoked memo- 0–10 11–20 21–30 31–40 41–50 51–60 61–70 71–80 ries (M 6.66, SD 1.39) were experienced with a stronger feeling of being brought back in time as compared Age at Event (years) with memories evoked by name-only (M 5.68, SD Figure 1. The distribution of (A) odor-only-, (B) name-only-, 1.28) or odor-name cues (M 5.91, SD 1.61). Ratings and (C) odor-name-evoked autobiographical memories across in the name-only and odor-name conditions did not dif- the life span. Error bars indicate 1 standard error.

Figure 3.4 Autobiographical odour memory page 1661 (Willander,Johan 2007)

If looking at the diagram A in figure 3.4 we see that 40% of odour–only evoked memories were dated back to the childhood (0-10 years old) and 20% from childhood & early adulthood (11 – 20 years old). In diagram B the proportion of memories

42 evoked by name-only are significantly lower with different age proportions. Here, approximately 15 to 20% of the memory proportions stems from the age (10- 20 years old). The odour-only evoked memories in A were experienced with stronger feelings of being brought back in time as compared with memories evoked by name- only in B.

This may indicate that the age distribution, the phenomenological qualities and the number of evoked memories are affected by explicit knowledge of the provided odour cue. This suggests that conceptual processes may have a significant influence on the retrieval of autobiographical olfactory information. In fact, knowledge of an odour’s name resulted in a distribution taking an intermediate position in diagram C, and thereby not being statistically different from the age distributions obtained for the name-only and the odour-only cued condition. The observations suggest that olfactory knowledge creates a shift from perceptual to more conceptually driven retrieval process in the context of different types of sensory cues and evokes different types of retrieval processes.

The overall result of the study supports the concept that olfactory evoked memories are more emotional than memories evoked by verbal cues and the age where the memories tend to cluster. This result is interesting in further discussion in this study. The knowledge of the proportions of memories in the early childhood could be important when discussing odour in connection to branding.

Explicit and implicit memory In olfactory, explicit memory is about making associative meaning to odour (Olsson, Mats 2003). Previous studies of odour memory have, according to Mats Olsson (2003), dealt with explicit forms of memory even though implicit forms of memory may provide a common means to learn about odours.

In the context of the relationship between awareness and memory, Graf and Schacter (1985) made an important distinction between implicit and explicit memory tasks. In tasks concerning explicit memory (e.g. recall, recognition), test instructions are directed toward conscious recollection of a prior event or study episode. In contrast, in implicit memory tasks (e.g. perceptual identification, fragment completion, stem completion), no reference is given to a prior learning episode; participants are not informed of the connection between the study and the test.

43 Explicit memory of odour can be used to process information and compare encountered odours. Evidence of explicit olfactory memory is seen through behaviours in tasks that evolved a working memory component (Olsson, Mats 2003). Previously common tests, used in explicit odour memory, are odour identification and odour recognition. Here odour recognition is the most used and direct means to measure odour memory.

One of the most common and direct means used to measure odour memory, is odour recognition. (Wilson, Donald A. and Stevenson, Richard J. 2003) In this kind of odour recognition test participants are asked whether or not they recognize an odour. The participant is subjected to a certain olfactory-related stimulus and after an interruption period asked to decide if a probe, i.e. a stimulus, - could be the same as the initial stimulus, if this one is the same as the participant initially encountered. (Wilson, Donald A. and Stevenson, Richard J. 2003). Ways of testing the effect of verbal labelling could include comparisons of odour and odour name and the speed and accuracy of which lexical decision that was used for naming the odour. (Wilson, Donald A. and Stevenson, Richard J. 2003)

Unlike odour recognition, odour identification, which is another way of testing odour memory, requires the specific labelling of the present olfactory stimuli. According to a study (Wilson, Stevenson 2006) the ability of humans verbally identification of odours is very restricted despite the ability to differentiate hundreds of odours.

A study conducted by Wilson, Stevenson (2006) on synthetic olfactory perception suggests two types of findings. The first finding derives from experiments in which participants were asked to identify component parts of odour mixtures, where the participants first had learned the labels for each of the odorants to be mixed. The participants were presented with mixtures consisting of two or more constituents. The test showed that participants rarely could identify an individual odour while being presented in a mixture consisting of three or more components. In summery, the study suggested that olfactory processing mainly is synthetic at the behavioural level.

44 Context dependent and autobiographical memory Context-dependent memory is the memory-effect whereby retrieving information in the same environment in which it was encoded (in contrast to autobiographical memory). This method is said to lead to better memory performance than e.g. encoding and retrieving in different context.(Chu, Downes 2000).

Researchers like Hertz (1997) found that ambient odour functions are effectively in environmental context, in context-dependent memory studies.

One example to demonstrate the context-dependent memory is e.g. if an item is lost like a key, typically people try to systematically retrace their steps to determine all the possible places, where the key might be located. Often, when back at the location where the key is lost, your memory of where the key is, is retrieved.

Hertz (1997) suggested that odours, which were out of place in the experiment situation, were associated with best memory performance when reinstated at retrieval. Implications of these findings are ambient odours at the time of an event can be encoded along with event details and afterwards be used as cues in the retrieval of those event details. This information is interesting in the context of autobiographical memory research as well. However the kind of memories most commonly reported in Proustian memory are those, which are especially old, vivid and emotional.

One of the first examinations of odour-evoked memory conducted by Herz and Cupchik (1995) (Hertz, Rachel S. and Engen, Trygg 1996) used the method of paired- associated incidental learning paradigm to examine whether odours evoked more emotionally memories than verbal cues. In the experiments 16 emotionally evocation paintings were paired with 16 cues, either odours or verbal odour labels. The recall of the painting was conducted 48 hours later by a cued recall.

The result of the experiments showed that the response was equivalent between the two cues. Besides these findings, another interesting result was experienced in the same test. It showed that when a painting was recalled to an odour, there were more emotion elicited in the recollection, more emotions experienced, higher emotional intensity and greater confidence in emotional memory compared to recall associated to verbal cues.

45 These data demonstrate that odour may not provide better memory cues, but are rather more emotionally potent than cue-elicited memories. These memories produce the impression that odour memory is more real, which is in synergy with neuroanatomical evidence, when looking at the unique interconnection between the olfactory area and the amgydala- hippocampal complex of the limbic system. (Hertz, Rachel S. and Engen, Trygg 1996)

With these findings, theories concerning context-dependent memory are interesting since emotions often are connected with earlier associations and have been proved to be effective contextual memory cues. Context-dependent memory is based on the principle that environmental features are encoded as a part of the memory trace.

Sub conclusion The discussed literature above suggest that memories evoked by odours have a numerous and unique characteristics related to emotional quality. Memories elicited by odours appear to be more emotionally potent than memories evoked by other sensory stimuli and when a salient emotion is experienced during encoding with an odour, the effectiveness of the odour as a memory cue is enhanced.

Further discussion about emotional effect on odour recognition is interesting to examine in further chapters.

Verbal, non verbal recognition According to Hertz, Rachel S. and Engen, Trygg (1996) it has not yet been possible to study olfactory recall empirically because of the difficulty in producing observable recall outputs by using cognitive-behavioural measures. Thus, much research and discussion about olfactory memory have been studied. In a typical experiment for olfactory recognition and memory, tests-subjects are presented with a set of target odours and then set to choose between targets and distracters i.e. old and new odours. Here it is shown that the more similar the distracters are and the larger the distracters are set, the more difficult odour recognition memory is. (Hertz, Rachel S. and Engen, Trygg 1996)

In the discussion about odour memory recognition, two evidences contradict and divide researchers. The evidences are divided fairly between the evidences for verbal mediation and the evidences against verbal mediation. Experimental, linguistic and neurobiological evidence however believes that verbal codes have a nonessential part

46 in olfactory memory. According to Hertz, Rachel S. and Engen, Trygg (1996 pp. 303) objective conclusions regarding the involvement of verbal codes in olfactory memory need to be based on experimental investigations, which have not yet been conducted.

According to Frank R. Scab (Schab,Frank R. 1991) an experiment designed by Eich (1978) investigated the mechanism by which, an odour evokes a memory representation. Eich (1978) compared the absolute and relative contribution to retrieval of odour cues and semantic cues. In the experiment the test subjects were presented with a list of words, all subset of the names of objects with a characteristic odour, such as coconut. (Schab,Frank R. 1991). Here the recall of the word was cued with the appropriate odour and a semantic description e.g. a flavoured cake. The findings indicated that the effectiveness of odour cues was due to the mediation of an implicitly generated semantic cue. The experiment’s goal was the memory target of naming odour, but further findings indicate a more general implication, that when odours are effective retrieval cues, they are so because of appropriate verbal labels that have been generated implicitly and even explicitly. (Schab,Frank R. 1991).

Other studies (Hertz, Rachel S. and Engen, Trygg 1996) support the view that verbal mediation is inherent to olfactory processing. Hertz et al (1996) list four evidences for verbal mediation as a main factor for odour memory. 1) Familiar and correctly identified odours are better remembered than unfamiliar and incorrectly odours 2) Odour labelling can promote better odour memory 3) Odour naming are powerful in context for odour perception 4) Verbal distracter tasks can interfere with short-term memory for odours. (Hertz, Rachel S. and Engen, Trygg 1996 pp. 301)

Supporting research conducted by Lyman and McDaniel (1986) (Hertz, Rachel S. and Engen, Trygg 1996) tested 48 tests-subjects with 30 odours, where subjects were to perform one of four encoding tasks during odour presentation. 1) Visually imagining each odour 2) Attending to name each odour 3) associating each odour to a personal life event 4) or simply smelling each odour. In recognition test, held seven days later, showed that subjects who had been able to name the odours or odour associations during encoding, had the best recognition memory. (Hertz, Rachel S. and Engen, Trygg 1996)

47 In contrast to evidences implicating the fundamental role of verbal mediation in olfactory memory, there are many sources and data that suggest that little or no verbal involvement also processes olfactory memory.

Several experiments, in which odour familiarity ratings and odour labelling data were acquired, failed to demonstrate verbal mediation in olfactory memory. Engen and Ross (1973) showed that neither by providing test-subjects with verbal odour labels nor having test-subjects generate non-verbal odour labels produced any advantage on subsequent odour recognition tests. The study was conducted to study long-term odour recognition memory.

In the first test, test-subjects rated 48 odours for familiarity and were then given a force-choice recognition test for the odours presented in four different time intervals; immediate, one day, one week and one month. In another experiment test-subjects were required to match 20 odours to either generic or brand names, and a forced- choice recognition procedure was used at the test three months later. The overall result from the experiments was that the forgetting curve for odours is virtually flat over three months’ retention interval and that neither odour familiarity nor odour labelling, whether self-generated or experimentally provided had any effect on subsequent recognition. (Hertz, Rachel S. and Engen, Trygg 1996)

The findings that odour naming and odour familiarity have no effect on subsequent odour recognition memory are in conflict with the data from verbal odour recognition, which is discussed above. It can be discussed if the methods used in the experiments were sufficient or suitable e.g. using forced-choice methods. In further discussion about odour naming it is interesting to emphasise the odour lexical. According to Hertz, Rachel S. and Engen, Trygg (1996) our real ability to provide verbal labels for odours may account for some failure in the evidence for verbal mediation. Even though the English dictionary contains hundreds of applicable words to odour quality, our language is devoid of simple abstracts for naming odours. We can distinguish and name good and bad odours, but not quality per se.

The case is often that one finds the odour familiar and can tell the likely source and name similar odours, but can not exactly label it. (Hertz, Rachel S. and Engen, Trygg 1996). This phenomenon has been named tip-of-the-nose state, closely associated to the expression tip-of-tongue but is different since tip-of-the-nose has no lexical access

48 to the odour name. It is important to mention that even though odours are difficult to verbally identify, they act as reliable cues for complex memories.

Enhance brand memory According to (Morrin, Marureen 2003), who examined the effect of ambient scent on recall and recognition of brands in two studies, found indication of ambient scent apparently did not alter subjects' self-assessed mood or arousal levels. It increased their attention in terms of longer stimulus viewing times. The mediation analyses suggest that the attention mechanism most likely explains why ambient scent improves brand memory.

In the first study concerning encoding, test subjects were asked to evaluate familiar and unfamiliar brands while viewing digital photographs of products on a computer screen, at the same time as pleasant ambient scent was infused in the experiment room. In the second test concerning retrieval, which was conducted 24 hours later, brand recall and recognition were assessed. Findings from the study showed that ambient scent improved both recall and recognition of both unfamiliar and familiar brands, and that patterns emerged revealing whether or not the scent was congruent with the product category.

Interesting noticed in this study is that the findings about pleasant ambient scents in general tend to improve memory performance but also that scents that share semantic connection with the product to be remembered not necessarily result in deeper memory traces. Here the important result is that the ambient scent makes people stay longer in the environment and making them paying more attention to the brand stimuli. The second test underlines the above-mentioned statement. That via the findings ambient scent influences brand memory, in the way that the longer attention spans at stimulus viewing time the deeper memory traces are and is easily retrieved. This is regardless of whether the scent is present again during brand retrieval (Morrin, Maureen, 2003).

Emotional arousal on memory That olfactory cues create an emotional arousal is a notion that has been discussed through this study. Additionally it is interesting to discover if there are some kind of coherence between the arousal level and memory.

49 Studies have through time suggested that emotional arousal on objects creates a better memory on these objects (Brigham, John C. et al., 1983). Further, when objects obtain emotional arousal, their attributes are initially enhanced in memory (Madan, Christopher R, 2012).

Additionally it can be claimed that emotional enhanced information for the memory of items, are remembered better than neutral information (Madan, Christopher R, 2012). (This notion though is not applicable for association-memories).

Studies have shown that emotional arousal can be a critical factor when contribute with the emotional memory enhancement effect (Lewis, Michael et al.2010).

This notion is examined in the following study (Brigham, John C. et al., 198). Here, the effects of arousal on facial recognition on crime situations with electrical shock as manipulated arousal were studied. It was recognised that recognition accuracy was lower in the high arousal condition than in a moderate arousal condition.

Another study found that participants in an arousing condition were less likely to recognise the object than the participants in the non-arousing condition. This discovering suggested that arousal ruined the memory of the details associated with the object. (Novak, Deanne L, 2008)

The above findings could indicate that the emotional arousal level on memories does not have to be specifically high in order to create recognition. High arousal effect might disturb the people’s actual recognition ability, because they loose focus during the arousal. Also, neutral arousal might have a more positive effect on memories than high level arousal.

The Neurobiological connection From previously chapters is has been discussed that emotion and hedonic judgment are primary facts of olfaction and are known for influencing mood, inducing alertness or relaxation and not to forget long-forgotten emotional memories. Further, it has been proved that the close connection between olfaction and emotion stems from the process of how both share several limbic regions in the brain.

Neuroanatomy explains the unique emotional and associative potency of odour stimuli through the location of the olfactory system. The difference between odour and other sensory information lies in how the information is mediated in the limbic

50 system. A principal integration locus for sensory information is mediated through the thalamus where the close connection between the olfactory nerve and amygdala.

Especially these areas, olfactory cortex and amygdala, seem to play a major role in stimulus reinforcement association learning. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products) None of our other senses have this direct and intimate connection with this area of the brain, that process emotion, associate learning and memory.

51 Chapter

Cognitive Neuroscience In recent years, neuroscientific research has expanded to the realm of studying the brain in relation to stimuli influencing the decision and how it affects behaviour and perception. In order to understand the neuropsychological mechanisms in context to sensory marketing and the effect of brand preferences, this section covers the modern views on neuroscience and how it has evolved towards new marketing perspectives. The connection between marketing and neuroscience and its link to memory and emotions are examined. Furthermore, this section portrays various neuromarketing measures and how to interpret these measures. This section also focuses on branding and on which neuroscientific elements could help create at better understanding of the branding effect. In the final part of this section a critical approach to neuromarketing and the use of neuroscientific experiments is presented.

Modern cognitive neuroscience views Neuroscience combined with marketing is a relatively modern approach to the marketing strategies that have been used throughout the 20th century. We know now how decision-making is a relation between emotions and cognition, and that the choices we make as consumers is not only based on rational choices but are highly affected by our emotions. (Geuens, Maggie ; De Pelsmacker, Patrick ; Faseur, Tine, 2011)

The last couple of decades of the 20th century we have seen a move toward cognitive neuroscience, as a discipline to understand the brain and how it represents mental events. This new understanding covers the emotional memory, vision and other higher mental processes. (Albright, Kandel and Posner, 2000)

The aim of neuroscience is to explain and understand the biological mechanisms that form the basis of mental activity and underlie how the neural circuit in our brain perceives the world around us. Neuroscience also explains how we recall perceptions from our memory and act upon the memory of that perception. It also seeks to determine how emotions influence our thinking and how mental diseases, such as depressions, mania schizophrenia and Alzheimer’s, influence emotions, thoughts and actions. (Tjaco H.Walvis 2007).

53 There are generally two approaches, which neuroscientists use to handle the huge complexity of neuroscience. The first is the reductionist strategy, which focuses on analysing the elementary units of the nervous system. It is a bottom up approach that examines how neurons communicate and interconnect with one another. These studies are often concentrated around the study of simple animals. The second approach is a holistic approach that studies the mental functions in human beings. These studies often take advantage of neuroimaging techniques, such as Functional Magentic Resonance Imaging (fMRI), which is a specialized brain scan that measures the change in blood flow within the brain. Neural activity is indicated by the increase in the consumption of oxygen by nerve cells within the brain, the response to which is increased blood flow to that area. One other technology is Electroencephalography (EEG) by which records electrical activity of the brain over a short period of time through electrodes that are placed on the scalp. (Tjaco H.Walvis 2007)

Neuromarketing measures What are the possibilities with neuromarketing and how can it be measured? Whereas a definitive behavioural model is difficult to make right now, the use of brain scanning has shown significant implications for marketing related activities (Tjaco H.Walvis 2007). It could be used for creating advertising effectiveness by gaining insights of the subconscious thoughts of the consumers. Looking at which area of the brain responds to the stimuli could help determine whether the advertisement has succeeded in creating the intended response.

Neuroscience and neuromarketing use clinical information of the functions and mechanisms in the brain to help explaining consumer behaviour. The overall goal for neuromarketers is to locate the consumers so-called “buy buttons” so that they come closer to solving the big mystery of the consumer’s mind and behaviour (Tjaco H.Walvis 2007).

54 A very big part of the human behaviour seems to be shaped by factors beyond conscious awareness. The brain makes judgements on the basis of automatic affective valuation. Branding seeks to influence consumer choices by maximising the probability that the brand is chosen and wins the competition of awareness between its competitors (Tjaco H.Walvis 2007).

Neuroscientific branding Branding is, as an activity, aimed to increase the likelihood that a brand gets chosen by the customers. Almost all consumer brand choices are partially based on memory. Neuroscience is assumed to be the “hard” science of studying consumer memory and put together with the “soft” field of branding an effective tool for research could be developed (Tjaco H.Walvis 2007).

In a study by Tjaco H. Walvis (2007) three laws of branding are synthesised to confirm the probability that a brand creates awareness in our brains as a positive candidate for choice. Even though these laws are no new discovery, H. Walvis argues that the laws should have a more important position in the branding we see to day. Brands that have been built in accordance with these neuroscientific laws have a higher probability of being chosen, than brands in the same category that have not (Tjaco H.Walvis 2007).

The first law portrays the distinctive relevance: “The higher the distinctive relevance of branding efforts, the more likely the brand will be chosen” (Tjaco, H. Walvis, 2007, p 186). A brand can increases the probability that it gets chosen by having elements that are of personal significance to the customer. These elements could be the brand’s product-category, functional and symbolic attributes, use-occasion and self and user image. The brand’s core message must be built around the cues that are important to the specific customer segment.

The second law focuses on the repetition of a specific relevant core message for the brand. The law of coherence: “ The higher the coherence of branding efforts across time and space, the more likely the brand will be chosen” (Tjaco, H. Walvis, 2007, p 187). Repetition of the brand message is needed to create a strong connection between the brand and the customer’s choice criteria. This is required when increasing the cortical representation probability, which again is required for becoming top of mind at the moment of choice (brand recall). It is also important that

55 the message is specific. If the message is specific while being repeated, it is much more likely that brand is recalled.

The third law emphasises that a rich brand environment increases the likelihood that the brand is chosen: “ The more engaging the branding environment that is created the more likely the brand will be chosen.” (Tjaco, H. Walvis, 2007, p 188). A brand must create as many synaptic connections as possible to win the battle for awareness. When a brand tempts its customers to be curious or to try, play, practise, socialise or learn, the customers will create a stronger attachment to the brand and therefore a stronger awareness.

These three laws are not to be seen as a definitive answer to how branding could be enhanced but as a neuroscientific guideline to where a brand practitioner should direct his focus. In this case, H. Walvis believes that recognising these principles (distinctive relevance, coherence and participation) would establish a stronger foundation for the field of branding.

Neuromarketing scepticism Several critics are aware of the effects and the performance of neuroscientific experiments to understand consumer behaviour. In an article, James S. states that people behave differently when they know that they are obvious test objects. He believes that there are no rules about the relationship between brain activity and behaviour and that life stage variables have a far greater influence on behaviour than the brain arousal. He is highly convinced that it is unlikely that neuromarketing will solve all of our marketing problems. (James, S, 2004)

Other critics point out that neuromarketing does not have the capabilities to involve other aspects of study. This could e.g. be peer influence, which is likely to influence the consumer behaviour. Others believe that interpreting brain scans in response to traditional marketing efforts is highly exaggerated and overestimated by people who are not aware of the limitations. An advertising professor even claims that neuromarketing destroys the assumed differentiation between rational and emotional advertising. (James, S., 2004)

56 Consumer behaviour and neuroscience

Value-based model of choice Neuroscience combined with consumer psychology has gained a lot of focus in the last couple of decades. It has become a very popular subject to examine and has created many hits on Google and scientific publications. (Plassmann, Ramsøy, and Milosavljevic, 2012).

In order to understand how consumers make choices between various brand preferences we use the value-based model, which integrates the consumer psychology and cognitive neuroscience.

The value-based model of choice (Plassmann, Ramsøy, and Milosavljevic, 2012) explains how consumer preferences can be divided into four different parts over a specific timeline. It represents 1) Representation and attention, 2) Predicted value, 3) experienced value 4a) Remembered value and 4b) Learning.

This value-based decision model introduces how the brain is encoding signals of value and makes an evaluation for every option considered (Plassmann, Ramsøy, and Milosavljevic, 2012). Focusing on scent marketing, the five steps of the model are analysed here:

Figure 4.1: Value-based model of choice (Plassmann, Ramsøy, and Milosavljevic, 2012).

1) Representation and attention: Here the consumer is presented with a lot of information. How the consumer perceives this information has a huge influence on its behaviour.

Representation: Making a brand decision involves making a choice among a lot of various brand alternatives. The consumers then need to integrate the decisions on an internal state (thirst, hunger etc.) and an external state (social context, location etc.). These decisions are the ones that drive the consumer attention. In this phase the visual system is highly involved because it allows for the rapid brand and product identification. Here, unconscious processes are present and help shape the process of the decision-making situation. For odour branding, this step is interesting since odour infusion is subliminal and often on the unconscious state, which may create a decision on the internal state or even on the external state.

Attention: Consumers select the information that gains a preferential status above other available information. Here, various visual criteria are valuated such as; colours, size, shape, movements etc. Other attention stimuli could be faces, texts and novelty.(Plassmann, Ramsøy, and Milosavljevic, 2012) Emotions also have a high effect on attention. Research has shown that people more willingly pay attention to emotional than neutral stimuli. Emotional stimuli that create a lot of attention could be loud music, very pleasant or very unpleasant scent, scary faces or fear congruent related visual effects (Vuilleumier, 2005). Here odour branding has proven to maintain the costumers attention for time, which make browse among the product for longer time.

58 A study (Seo, Han-Seok et al., 2010) examined whether an odour could enhance the visual attention to its similar object selectively. The findings of the study demonstrated that olfactory priming on a visual object congruent with an odour could enhance the participants’ attention more compared to a non-odour condition. This study is a great example of how olfactory stimuli can play a determined role when creating attention among a lot of information bias. 2: Predicted value. The predicted value of each brand available for choice evolves the consumers’ evaluation of how much he or she will enjoy the brand (Plassmann, Ramsøy, and Milosavljevic, 2012). After seeing the product or brand the consumer has to calculate the value of the brand. E.g: A product might have been added a pleasant scent, and the consumer might see himself consuming this product while having a pleasant feeling.

3: Experienced value; this value is based on the pleasure the consumer receives when consuming the product. It is the actual value that is derived from the consumption of the brand. The combination of the predicted value and experience value is the most important part of the value-based model.(Plassmann, Ramsøy, and Milosavljevic, 2012) The experienced value consists of valance and intensity of the consumption experience.

Studies have shown that sensory pleasantness during consumption is crucial for the experienced value. The same studies also showed that branding changes the experienced value signals. E.g. it showed that the response to an odour is depended on the congruent of odour and stimuli. E.g if a cheddar cheese smelled of cheddar cheese the odour would be more positive accepted, than if human body smelled of cheddar cheese (Plassmann, Ramsøy, and Milosavljevic, 2012).

4a) Remembered value: A big part of the value is what is remembered from previous consumption experience. These experiences may influence the buying decision.

4b) Learning: When the predicted value is confronted with the experienced value a learning process occurs. The newly experienced value is encoded in the memory as a learned experience.

Buying behaviour The environment in a store has a crucial effect on the customer’s buying behaviour and decision-making. Various studies have demonstrated that ambient stimuli with

59 background elements should appeal to all five senses and so appeal to - and attract customers. (Mattila, A.S. and Wirtz, J., 2001)

The sense of smell is a crucial sensory channel and research has shown that olfactory cues have a significant impact on consumer behaviour in a retail setting. (Bone, P.F. and Ellen, P.S. 1999)

In a research (Bertil Hultén, 2011) the author tried to discover how visual and olfactory sensory cues impact consumer touch behaviour in the context of buying wine glasses at the point-of-purchase in an IKEA store. The research introduced design and lighting as visual cues and ambient scent for olfactory cues while testing the customer’s desire to touch the wine glasses.

The research emphasised three different aspect of using scent: the present of a scent, its pleasantness and how it fits with environmental and service elements. The result of the study revealed a significant difference in shopping behaviour after the introduction of visual and olfactory cues. The customers stayed longer in the store and spent more time touching the glasses. But most importantly, they bought the glasses after touching them, and the sales of the wine glasses increased (Bertil Hultén, 2011).

This research is a fine example of how sensory stimuli can affect the consumer behaviour and buying decisions, and how scent - ambient especially, is an important cue to influence customer performance in terms of intentions to visit and return to the store.

Sub conclusion From above findings concerning neuromarketing, buying behaviour and neuroscientific branding methods, a new discussion is born, which is, if sensory branding via odour enhances representation and attention, increasing predicted and experienced value while easing the remembered value. Then, how does a brand smell like, is there an olfactory preference and how can brands teach consumers to recognize the brand via an odour?

60 Chapter

61 The sent of using scent This session will discuss the sent of using scent, olfactory preferences and the future aspects of enhancing brands with odours.

A Sense of odour What are the connections between scent and vivid memories of particular persons, products or events from one’s past? Scientific research generally supports the notion that humans can retain information about scents for long periods of time, even from childhood to late adulthood (Morrin & Ratneshwar 2003). In reason years scientific research and theory concerning scent has centred on environmental scenting and grown into a major industry. Ambient scent is found in many diverse locations such as supermarkets, retail stores, airlines, casinos, banks etc. all utilized to evoke a pleasant atmosphere, make people spend more time in the store or influence the decision-making process etc.

In marketing, scent can be highly effective in helping distinguishing one product from another. It can trigger a memory or desire that influences a purchase decision. Alternatively, scent can remind us of pleasant associations. These associations help to create an environment in which we feel comfortable. In a consumer setting this impacts our decision to stay longer and consume more. Across industries, businesses are using scent as part of multi-sensory marketing strategies to enhance customers’ experiences of a location and its products or services. These experiences allow customers to develop deeper memories and emotional connections with the brand and promote sales and loyalty.

By incorporating odour in branding as part of the brand may help build a deeper emotional bond to the costumers.

The nasal findings have so far suggested that ambient scents indeed affect a wide range of consumer behaviours. Thus far, little attention has been devoted to the impact of scent on brand memory. More focus on this matter is highly needed since establishing a strong fundament in memory and is a strategic and desirable objective for most marketers of branded products (Morrin & Ratneshwar, 2003).

However, the ability to recall brand name from memory has shown to have a major impact on consumer choice. Morrin & Ratneshwar (2003) recognised that there could be a link between ambient scent and brand memory. Morrin & Ratneshwar (2003)

62 conducted a preliminary study to investigate the effect of scent on recall and recognition of real and factious brand names.

The study showed that through a pleasant ambient scent it increased the attention paid toward the fictitious brand names and it had a weak and statistically no significant effect on brand recall and no effect on brand recognition. According to Morrin & Ratneshwar (2003) the study may suffer from methodological shortcoming that can undermine their findings. They are highlighting that one factor could be that in the study there is only a five-minute delay between the time of brand exposure and the time of brand retrieval. It is possible that the effect of ambient scent on brand memory was not evident because the test persons in general faced a relatively easy memory task. Possibly, the effect of scent on stimulus attention would have manifested in brand memory if the subject had faced a more demanding task.

Mitchell, Kahn & Knasko (1995) have examined the impact of ambient scent on consumer decision-making processes. Their study indicated that the presence of congruent ambient scent e.g. a floral scent while choosing floral arrangement versus an incongruent scent in the same context like a chocolate scent, may increase the amount of time consumers spend making a purchase decision.

From the study further questions can be raised, such as, does it matter if the scent is congruent with the brand’s product class and if scent influence brand memory, and what type of mechanism is in charge for this phenomena?

Olfactory preferences The most immediate and basis response we have to odour is not analytical, even though an analytical evidence would be prosperously, instead it is hedonic, whether we like the odour or not. Three factors most often evaluated when examining odour hedonic perception are; pleasantness, familiarity and intensity. Here pleasantness and familiarity are positively correlated in preference perception, where familiar odours tend to be more favoured than unfamiliar odours, and pleasant odours are frequently perceived as familiar. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products)

The intensity of the odour has a more complex relationship to odour liking and tends to show either an inverted – U or linear function. For example, a lilac scent may be evaluated positively with increasing intensity up to a point where after the function

63 reverses, and the scent becomes stronger, and it is judged to be more disagreeable. One other example is by contrast a weak fishy odour, which may be acceptable, but as intensity increases, its hedonic value becomes steadily more negative. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products)

How we perceive different odours may also be a case of the genetic individual differences in the number and type of olfactory receptors expressed, that influences one’s sensitivity to a particular odorant and hence the predisposition to experiencing specific odours. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products)

How we perceive different odorants, whether olfactory perception are innate or learned is a long-standing debate, discussed in previous chapters. The innate view of odour preference claims that we are born with a predisposition to like or dislike various odours, e.g. roses are a good odour and garbage is inherently a bad odour. Though this theory is widely believed, according to Rachel S. Herz this view has not been empirically validated. In contrast the learned view state we are born basically with a predisposition to learn to like or dislike odours, and if we have an odour preference or not. This is due to our acquired emotional association to the odour. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products)

By focusing on the learned view, which in this study is interesting, since we are investigating if it is feasible for brands to take advantage of odours with reference to brand recognition, it is interesting to discuss associative learning. Given that it is the basis of the learned view of odour hedonic perception. Associative learning is the process by which an association between two stimuli or behaviours are learned E.g. an item or and odour can be linked to an event as a function of an individual’s past experience. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products)

To illustrate how associative learning functions, imagine there is a stimuli called “A” and your response to A is A+. Imagine there is another stimulus called “B”. Your response to B, however, is nothing. Next A and B are paired together and the following occurs. When you are presented with A again your response to it will still be A+. However, when you are presented with B again, your response to it is now A+ as well. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of

64 Products p. 88) This function, associative learning, is responsible for a large part of human cognition and behaviour and is also the basis of classical conditioning. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products).

The associative learning theory can be understood in the way the odour hedonic perception states that an odour is the meaningless B stimulus and an emotion is the A stimulus. Therefore, as a function of associative learning, an odour can e.g. elicit an emotional state connected with prior exposure and have an impact on mood and attach itself to the odour and imbue it with hedonic meaning.

This theory of association learning and hedonic perception is interesting to transfer to a branding concept. Imagine there is a stimulus called A, in this case a brand, and your response to A (the brand) is A+. Next A is paired with B, in this case a specific odour, which is new and meaningless. What happens according to the associative learning illustration above, is when you are presented with B again, the response will be A+.

By taking this theory one step further, we could switch the two stimuli, so A+ is the odour and B is the brand. If B (the brand) has no associative meaning, but A+ the pleasant odour has, next time B is experienced, the response will be A+, a positive associate meaning.

We will in this study focus on A+ (as brand and the connected association) and B (as an unknown odour).

Critique of this method in branding, is if the consumer has a negative association toward the brand (A+) and by then transfer the negative association to the odour (B) and will end up with a negative (B+). On the other hand, negative associations toward odours might be stronger and remembered better.

Mediating factors: Visual – Verbal Priming In earlier chapters, it has been discussed how several factors mediate odour- associative learning and the subsequent memories and behaviour that are elicited. Some influencers like context, expectation and visual-verbal schemas have been proved to be powerful. The context is important since it is a state of situation, here mental or physical or the environment can induce a set of preconceptions and expectations. Visual and physical context prime expectations for odours as well. The

65 effect of visual and odour taste has been clearly demonstrated in an experiment by Zellner, Bartolini and Eckard (1991) (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products) who found that when lemon-flavored mixture was coloured yellow, it received much higher liking scores than when the same mixture was coloured red. The same is demonstrated with odour and verbal labelling, the verbal expectation effects are so great that it actually can create olfactory illusions. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products).

An experiment conduced by Rachel Hertz (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products) showed that verbal labelling influenced the hedonic perception, when the labels were positive each odour was evaluated as more pleasant and familiar than when the same odour was giving a negative label. E.g. the odour pine oil was giving the labels Christmas tree and disinfectant.

These kinds of experiments where the connotation of words can have a tremendous impact on how an odour will be liked, independent of how it was originally learned, which must be said to be an obvious implication for scent marketing.

It can be said that visual and verbal context are very influential in olfactory perception, more than any other sensory modality because they are lacking information in themselves. Moreover odours are invisible and cannot be localized in physical spaces and additionally seek meaning from external context, is especially high compared to other sensory. This in advance may be taking advantage of when trying to elicit maximum impact in product labelling and branding.

It is an attractive idea to pair brands and odours in the way that the connotation of words is suited as like the verbal labelling for the odour i.e. if one person is presented with an odour and asked; what does this odour smell of? Favourably the answer would be - a brand name.

Sent of scent in marketing Substantial evidence indicates that through association with emotional experiences, the hedonic perception of odours can be formed and changed. To better comprehend the relationship between the sense of smell and its effects, Rachel Hertz (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products) has created a model illustration of how associative learning can be used in a

66 marketing connection.

Emotion and novel odour are experienced together; through amygdala – hippocampal mediation, the odour becomes associated with the emotion, which produces the hedonic response and memories that are elicited by the odour. As a function of the hedonic experience and the emotional associations, succeeding exposure to the odour impacts mood and concordantly influences behaviour. The effects of odour and emotions can be brought into the marketing theory by the fact that an ambient fragrance that is emotionally and thematically associated to a product should be able to alter perception, cognition and behaviour with positive consequences for revenue.

Model 4.2: Odours Associative Learning (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products)

The future: Defining brands through scent When studying the universe of senses, the possibilities seem endless. Research

67 concerning how to decode the conjecture of the olfactory universe points in different directions but all with common dominators. The sense of smell is one of the most powerful and advanced forms of human interaction with our surroundings, but one that often has been overlooked as a medium of communication. Findings have proved that about 75% of all emotions on a daily basis were generated from odour - not from what we see or hear (Bell, Stephen 2006). The answer to this fact is to find in the anatomy of our brain. The direct access to the limbic system – which is control of emotions and memory, is the powerful motor for why odour is so intense. The ability for odours to stay in our memory indicates we form an emotional attachment to them. For perfume houses this is nothing new but for other brands, the world of olfactory is new with great possibilities to explore. Finding the right odour personality is the first step.

Personality of scents There are three notes that make up a scent – top, middle and base are crucial to quality and longevity and can significantly change the odours’ “personality”. One example of a branded odour for a product brand e.g. that expressed themselves as colourful, creative and surprising could be expressed through a scent that contained citrus notes with a soft green edge on a clean woody base, which in combination gives a classic smell with a twist. (Bell, Stephen 2006) This can be described as a ‘logo’ smell. One brand, which has tried to evoke a specific memory by odour, is Marc Jacobs who launched a new scent called ‘splashes’ for summer 06. The idea behind this fragrance was to bottle his favourite summer memory. This illustrates how powerful odour can be in evoking emotions. The scent was made of the idea of freshly cut grass, cool summer rain and a perfect white cotton t-shirt. (Stephen Bell, creative Director, Coley Porter Bell)15

The idea behind creating emotional memories as a scent is very interesting since the

15 http://www.wpp.com/NR/rdonlyres/D9729054-FF03-4014-B1C9- 0066E6F3511C/0/coley_futuresense.pdf

68 scent can be used e.g. on clothing for different seasons and collections to give the extra feel, or it can be used as in-store ambience or even sold on bottles. The possibilities are prosperous, if the science of scent is brought to retail. The possibilities for brands to explore and take advantage of sensory branding are immense, what might be important, is that the scent has to be relevant for the target audience and how you want them to feel about the brand. (Bell, Stephen 2006)

According to the US cult brand Abrecrombie & Fitsch’s head of corporate communications, attribute to the complete in-store experience: “Its about what you see, what you hear, what you smell” the Abrecrombie & Fitsch stores have a distinctive scents that lingers until you get your clothes home and take them out of the bag and by this prolonging the experience. The scent is following you, which makes the priming period longer and by then makes you remember the significant scent.

There are clear benefits by reaching deeper into the consumer’s psyche by communicating on many levels. Brands that appeal to multiple senses will be more successful than brands that focus only on one or two. It is the same with brand consistency as with sensory branding - consistency is the key. For brands that not instantly have the direct link to use scent e.g. garment, lingerie and luxury goods, the possibility of adding an scent is immense, where brands with other products may need to think outside the ordinary to translate the brand’s personality through scent.

Olfactory herald a new age for advertising - How does your brand smell like? Establishing a strong foothold in memory is an important strategic object for most marketers.

Most brands today have a name, a logo, a colour, texture, and some a jingle and on top of that most brands and companies have a set of values, missions and style. These brand components are in fact the brands personality – it’s the way a brand speaks and behaves. By these means, it is like assigning a brand human personality trait to achieve differentiation. These characteristics signify brand behaviour though both individuals representing the brand. e.g. the employees or the final consumer as well

69 as through advertising, packaging, name etc. These brand image traits is a way to personify a brand so costumers can relate to it in terms of human traits i.e. brand personality.

While a brand image denotes the tangible benefits and attributes of a brand, the brand’s personality indicates emotional associations to the brand. Brand personality develops brand equity, which sets the brand attitude. The concept of brand equity is to indicate the value of the brand, it is the value added to a product by virtue of its name.

Brand personality develops brand equity. These values are the key to differentiate, communicate and market the brand. It helps to gain thorough knowledge of customers’ feelings about the brand. The brand personality helps standing out among brands very alike with the same attributes, for instance Coca-cola and Pepsi. The identity indicates the kind of relationship a costumer has with the brand and furthermore how the consumer communicates his/hers own identity.

Interesting in the discussion concerning brand identify, marketing and branding, is the fact that it is often only two of the senses – sight and sound - that branding encapsulates. However, as discussed in previous chapters, odour is significantly more influential on our mood, emotions and memory than any other senses. Everyday we encounter aromas that have a powerful influence on our emotions, mood and behaviour. A brand odour can help reinforce the emotional link with the costumers, the same way the odour of a beloved person can evoke memories. That is why scent marketing is becoming an incredible tool for brands to involve the costumers on an emotional level.

With all the human traits brands are attempting to connect with, one important trait seems to be missing - The odour. Using odour in branding seems like relatively unexplored terrain. Often a personal odour on individuals we now well is one of the strongest traits about them we remember, maybe even after the person is deceased. Even a brief scent of the odour may suddenly remind about the person. Often this odour comes from a perfume, which is perfume often used by the person. This phenomenon exists because memory for odour is markedly resistant to time and easily tends to be characterized by a high degree of emotion and vividness. (Harvest

70 Consulting Group, LLC, 2001).

With the knowledge of odour and how it influences our emotions and memory, using odour in the brand’s personality traits seems appealing. By using all the senses, the brand cycle seems to reach infinity.

Industry insight – Who are the creators In February 2011, GIA (Gobal Industry Analyses) announces the release of the comprehensive global report on the Fragrance and Perfume market. The global market for fragrance and perfumes was forecasted to reach over US$33 billion by the year 2015, driven by the growing trend toward higher spending propensity, heightened importance of personal appearance and grooming (www.prweb.com).16 Fragrances today have evolved into a mainstream business in the cosmetics and personal care industry. Non-essential fragrances have emerged as essentials, owing to the increasing trend of appearance and personal care becoming a part of pride, self- reliance and confidence.

As modern consumers ought to stand out and show personality in form of expressing personality through appearance and self-reliance it has created an industry where brands not only are names of products, but official symbols used to present what kind of person one consumer ought to be. Brands are often used to express the consumer’s personality, through what kind of clothing, food, beverages, books etc. the consumer is using. Visual personality traits have for centuries existed, but personally fragrances for brands and companies etc. are more modern phenomena.

The industry The scent-marketing field is a quickly growing industry. The fragrance industry is leading the latest fragrance business craze with two leading role characters, Jovanovis and Gaurin in front, they are responsible for luxury colognes and perfumes such as Tom Ford Black Violet and Giorgio Armani Onde Extase. Jovanovis and Gaurin help pioneer the trend i.e. ambient scenting by creating a very recognisable ‘woody’

16 http://www.prweb.com/releases/2011/2/prweb8151118.htm

71 odour, combined of orange, fir resin and Brazilian rosewood, also known for Abercrombie & Fitch’s iconic odour. The well-known odour of Abercrombie & Fitch has existed for approximately two years, and has become an integral part of the shopping experience and brand personality. The odour has experienced a great success and its popularity has compelled the company to produce the trademark odour in bottle form. According to Jovanovic (www.businessweek.com, 2010).17 Some costumers have complained when store-bought T-shirts lose the smell after several washes. Abercrombie & Fitch must be said to have been pioneers of the idea of trade marking odour for retailing and its product portfolio.

This business, that for years has gone unnoticed by most consumers, has grown into an industry roughly estimated by industry executives to between $80 million and $100 million industry. Roger Bensinger, executive vice-president for scent marketing company Prolitec, estimates that there are around 20 companies worldwide specializing in ambient scent-marketing and dispersion techniques. (www.businessweek.com, 2010). This number can of cause bee argued, since several companies proclaim expertise in sensory marketing.

As discussed in previous chapters, researchers believe that ambient scenting allows consumers to make a deeper brand connection. Hotels, such as Mandarin Oriental and Sheraton Hotel & Resort, and clothing lines like Abercrombie & Fitch and other companies where scent is related, have already routed the way and shown how sensory marketing can be highly beneficial. These data and results have led other non-scent-related companies to join the craze. Samsung has recently created a fragrance for it stores by help of Gaurin, one of the other fragrance creating frontrunners. According to Gaurin (www.businessweek.com, 2010). Consumers spend on average of 20 to 30 percent more time mingling among the electronics but also identified the ‘Samsung’ fragrance extension of the brand as innovative and excellent.

A representation of the scent marketing seems to appear across industries and businesses that are using scent as multi-sensory marketing strategies to enhance

17 http://www.businessweek.com/magazine/content/10_26/b4184085987358.htm#p2

72 costumers’ experience of location and its products and services. The growing market for sensory marketing also opens new doors for specialised agencies, institutes and consulting companies about right ways of using scent marketing. To get an inside in the Danish ambient scent industry, we contacted Air aroma (http://www.air-aroma.com/), which is an international company calling themselves a pioneering scent solution company, aiming to help other companies implementing scent marketing as overall branding strategy. Through Air Aroma we got in contact with Ambient Idea, a Danish based company specialized in ambient scent solutions, founded by Christine Hærslev Glenting in 2011. We interviewed Ambient Idea, to get an insight in how ambient scenting is used in Denmark and to questioning how scents are paired with brands and how retailers measure success.

Interview with Ambient Idea The reason why we found it interesting to interview Ambient Idea was that we were wondering about the possibilities for scent marketing in Denmark. After investigating the market we found that the market for scent marketing was extremely narrow and there only are a few companies that are specialised in scent marketing.

In the introduction phase of a new ambient scent solution, Ambient Idea defines the overall strategy with the concerned costumer. Ambient Idea and the costumer usually reach a joint agreement on how to employ a suitable scent marketing strategy. If the customer want to have a signature scent Ambient Idea will try to deliver it based on customers needs and wishes.

Ambient Idea cooperates with various fragrance designers, manufactures and experts and is very focused on quality. Sometimes they are propitious and create the perfect scent the first time and other times several trials are to be made before the right scent are found. The founder and director of Ambient Idea, Christine Hærslev Glenting, explain, that the reason she started the company was primarily because of her great passion for fragrance design and interior scenting. She has a marketing and communication education and has worked with scent marketing for some years now.

We were very interested in knowing how they measured ambient scent success in form of return of investment (ROI).

73 It was revealed that Ambient Idea not are measuring ROI at this stage, but are very interested in techniques and methods of measuring ROI, since costumers often are most aware of finically outcome, when installing an ambient scent solution.

Another issue that Christine mentioned was in regards to the overall testing of effect of the scent marketing. As it is today, Ambient Idea is not testing the various scents but they are created to match the overall image of the company. What Christine finds interesting, is if it will be attractive for her clients to test its signature scent to see how the customers from a scientific point of view perceive the scent, and by that create a signature scent that provides the best possible value for the brand.

In the interview Christine also mentions the importance of cultural differences. She claims that depending on where in the world you live, people have different perceptions of scent and different ways in how each scent affects their mood and feelings. This is a very important detail to have in mind when creating a scent for a company in another country or company with a specific cultural background.

Further we were interested in knowing how big an investment it is to introduce a scent marketing strategy from the start to the end of the process.

Christine believes that a client can get very far for a couple of thousands Danish kroner, but she adds that this of course depends on the size and the ambitions of the customer.

We also raised the question about allergy and asthma reactions concerning use of ambient scenting in public spaces, since this ethical question seems to be of high importance for various associations.

Christine acknowledges that there are some difficulties in completely preventing allergic reactions by using scents and as scent marketing becomes more widespread in Denmark. Some associations will oppose these new scent initiatives. Ambient Idea has not had any complications with these issues yet, but they will try to consider this in the future. She explains that the Ambient Idea only uses allergy-tested scents.

One other interesting association we contacted to hear more about the practice of scent marketing was Scent Marketing Institute (SMI). SMI is a global not-for-profit organisation for marketers, fragrance houses and solution providers working in the

74 field of scent and sensory marketing, including the top solution providers, manufacturers, fragrance houses, consumer packaged goods companies, retailers and marketing agencies that supply or use scent or sensory marketing techniques.

SMI is working as a membership-based organisation with the primary goals of providing the members with unique opportunities to grow business and connect the different members to expand knowledge and the use of scent marketing worldwide.

We contacted the SMI to question them about our research question and consolidate the necessity of the idea of odour brand ownership.

In an interview with regional Director of Europe from Scent marketing Institute, SMI, Bas de Han, we quickly recognized a keen interest in the idea of odour brand ownership. Bas de Han presented us with interesting cases of companies that already have succeeded with the idea of brand ownership of an odour or in other terms brand odour recognition.

One example of an odour closely connected to a brand is the case of Rolls-Royce who in the 1990s faced a dilemma where consumers who normally invests between $100,000 and $500,000 per car lost their love for the Rolls-Royce brand. Consumers claimed that the newer models did not meet the high-quality found in legacy models. This surprised the carmakers, since they had not made any significant changes to production methods other that upgrade in safety and technology. This lead the production team to investigate what the differentiating factors were.

The researches lead the team to the conclusion that the only difference was the scent of the car. Therefore Rolls-Royce took one of its elite models, a 1995 Silver Cloud and analyzed the Rolls- Royce smell. The researchers determined that over 800 elements combined to form the scent. They duplicated this branded scent and incorporated it into every new car built from that on, indicating the luxury carmaker's dedication to its brand.

This tells us that the sense of smell is already so ingrained with certain brands that when that scent is unwittingly altered, consumers take notice.

75 Further in the interview it was argued if the term; odour brand ownership was the right term to use. Other terms like odour jingle, branded odour, odour enhancement of brands etc. were discussed.

In the debate concerning the prober labelling, we ended agreeing on odour brand ownership, in the sense of recognisable odours functioning as cues for brand recognition, since the term gave a more describe idea of the concept.

In the discussion on naming the phenomena of enhancing brand recognition through odour, the knowledge of verbal recognition of odours is an important factor in naming the marketing concept. As discussed in previous chapters, studies have showed a lack of language or verbal labelling for odours and fragrances and therefore make it difficult to name the odour when it is experienced; instead people explain the odour through a language of memory.

We find this interesting and valuable for our study. A number of studies have shown that hedonic responses to odours are learned through specific experiences. (Rachel

Hertz 2005) The lack of language and naming of odours is often connected with a previous experience.

Therefore incorporating odour in a branding strategy is valuable. By connecting an odour to a brand name, one may give the odour a verbal label.

In this concept of enhancing the brand through an odour and make the odour recognisable by taking on the association and name of the brand, the ideal outcome would be the following as mentioned in earlier chapters:

I.e. if a consumer is asked: - What does this scent reminds you of or what does this smell of? - Answer: a brand name In theory and according to associative learning practice, this concept can be compound in following equation:

A+ (Brand + Brand Association) + B (unknown odour) = B+ (Unknown odour + brand association)

76 The equation is supported by theory concerning olfactory memory. In olfactory, explicit memory is about making associative meaning to odour (Olsson, Mats 2003) Explicit memory of odour can be used to process information and compare encountered odours. Evidence of explicit olfactory memory is seen through behaviours in tasks that evolved a working memory component.

Further the location of the olfactory bulb with its close access to the amygdala, which is responsible for associative learning and the wiring between odour and memory. As discussed in earlier chapters, is triggered by a conditioned response, which is set off when a scent first is experienced. The conditioned response is in fact interesting in the discussion, concerning the prospect of odour brandownership.

The theory is interesting to develop further and test clinically, if it is possible to transfer the brand association to an odour – or the other way around and by then reinforce the brand recognition.

Here it can be argued, that it is necessary that the brand, which association is transferred is well known.

The relationship between odour naming (thought to reflect semantic memory) and odour recognition memory (thought to reflect episodic memory), we have seen from previously common tests, that explicit odour memory on odour identification and odour recognition have been the most tested.

If a new odour is first experienced in combination with a shopping experience or in connection with a brand, a logo or a branded product, it may be possible to prime the odour and the brand name in the way as we learn new knowledge and in the same manners as how we learn to recognize friends, colleagues and brands.

Or is it more likely that when first a new scent is experienced, we will connect it with a previous memory and not be able to connect the odour with a new name or environment?

According to Rachel Hertz (2005) odour novelty prior to associative learning is important because if an odour is already familiar, it may have been associated to past experiences.

77 It is hypothesized that odour hedonic perception and odour- related behaviour results from a learned association between an odour and the emotional context in, which that odour was first, encountered.

The process is proposed to operate and produce effects as follows: (1) the emotion paired with an odour becomes associated to the odour and imbues it with meaning, thus influencing hedonic perception; and (2) an odour can elicit the emotion associated with its prior exposure and have a general impact on mood and mood- related behaviour. (Rachel Hertz, 2005)

Emotions vs. feelings When discussing emotions, it is important to distinguish the differences between feelings and emotions. An emotion is an organism’s expression of an inner bodily state - a bodily response to an event and which has a mechanical stimulus-response basis, typically without awareness (Bernard J Baars, 2010) where feelings can be seen as an organism’s experience of being in a certain emotional state, typically with awareness.

It is therefore interesting to focus on consumers’ emotions, since the emotion is working unconsciously and therefore is a true statement of consumers’ emotions towards brand preference before the very act of thinking about the response distorts it.

When discussing emotions with regards to communication and advertisings (Rossiter and Percy, 1987), argues it is foolish to expect a single emotion to be operating throughout the processing of advertising. What is needed for most brand attitude effects in advertising is a dynamic sequence of emotions. This is especially true of low involvement advertisings when negative emotions can be involved. As discussed in previous chapters, odours have the ability to bring you back to a distant but vivid memory and emotion, which theoretically makes odour a powerful tool in marketing.

The way information is evaluated in the extent of which we attach positive or

78 negative emotions to something, is to a large extent an unconscious product of learning. Much learning involves positive emotion and can proceed independently of conscious cognition, and this distinction is critical in the relationship between emotion and motivation (Rossiter and Percy 1987).

Since emotions are strong mediators of how consumers process messages, understanding and modelling cognitive responses to advertisings is challenging in marketing. In previously research, researchers have relied on consumers’ ability to report how they feel towards a particularly advertisement either in focus groups, interviews or surveys. Unfortunately these methods have some limitations due to the facts that the brain roughly works on two levels; unconscious – emotions and conscious – feelings (Baars, J. Bernard et al., 2010) The tests persons are able to describe their own cognitive process, which is known to have subconscious components. Other factors that distort the reporting of the test persons are their feelings, their incentives or peer pressure.

Information which, is explicitly remembered includes for example ad slogans, product benefits, and website addresses. Implicit memory however might come into play when other stimuli in the environment remind you of something. So in other words: Explicit memory involves consciously retrievable facts, while implicit memory involves unconscious retention. One examples of the importance of implicit memory is e.g. :(1) a consumer might only recall a brand of a e.g. perfume from a television ad when he or she discovers it while browsing in a store; (2) or the consumer might develop an unconscious affinity for a certain brand despite not knowing specific facts about it.

In this challenging context of asking the consumer directly about how they ‘feel’ about a product can be very blurred and not trustworthy. The use of neuromarketing in this context offers alternatives to probe the consumers’ brains in order to gain a valuable insight on the subconscious processes explaining why advertisements / messages eventually succeed or fail.

Using neuromarketing techniques to test the advertisings and marketing strategies to see what the costumers are taking notions of, eye tracking and

79 electroencephalography (EEG), could be an opportunity to track the costumers’ reaction.

With the eye tacking method, consumers/ volunteers can be exposed to various packages, odourants, ads, images, messages, and so forth. It is then measured what they deem to be the three key parameters: attention, emotional engagement, and memory retention.

Besides eye tracking, EEG, which is a brain scan that enables researchers to monitor electrical impulses within the brain, could be used measure emotions towards the advertisings or odourants.

What is interesting is seeing where emotional engagement overlaps with conscious attention. Once data from eye tracking is gathered, the advertisings’ can be overlaid with two sets of circles. One indicating where our eyes go, two, pupil dilation indicating the part of the ad volunteers’ is thinking about.

The EEG helps measure the volunteers’ electrical impulses, when thinking about something the emotional levels flatline, also known as a “disconnect”, because without emotion, the tests persons are unlikely to remember it, as discussed above. Often this can be a logo or something we can recall, but have no emotional connection to.

The emotional levels flatline towards logos or brands with no emotional connection to it is interesting when discussing the ability of combining the logo with an odourant, which we know may cause strong emotional reactions.

Emotional choice The emotional context when experiencing certain odorants is interesting when combining marketing and consumer behaviour - and choice, because emotions giving rise to unconscious emotions, commonly occurring with semi-complex choices. In the case of the semi-complex choices it is possible that the emotional response give rise to some cognitive activity of which, the individual will never become aware; for instance in the choices that involve some cognitively stored information about preference between different brands. Here odour is an interesting influencer since odour often is combined with vivid memories and emotions.

80 The experimental evidence for hedonic perception, which is a result from a learned association, is the founding pillar in our research and test concerning the possibility of odour brand ownership.

Cultural aspects of olfactory That the sense of smell is an important factor in our everyday lives does not come as a surprise for most people. But what is surprisingly interesting is how much our ability to smell also has a great control over our emotions and how a lack of the ability to smell can damage some valuable pleasures in life. This important fact of the sense of smell is the main reason why the marketers increasingly are focusing on how the sense of smell can be incorporated in a marketing strategy.

This following section focuses on factors and determinants that have significant influence on the performance of the olfactory perception. Furthermore, it presents an overall cultural context to olfactory perceptions. We discuss how culture, age and sex have crucial influence in this matter and how historical scent rituals are important for the understanding of the modern scent perspectives.

Introducing perfume The history of fragrance dates back more than 4000 years when the mesopotamiens used incense as the first form of perfume. (Schilling, Boris 2010).

The word perfume comes from the Latin phrase, "per" meaning "through" and "fumus" meaning smoke." The French later gave the name perfume to the pleasant smells from burning incense. (Schilling, Boris 2010).

The first aromatics was kindled as incense to gods and ancestors, here incenses like cedar of Lebanon, resinous woods of pine, cypress and fir tree were burned in public ceremonies as wells as private devotions. Further the Egyptians developed the art of perfumery not only as a part of religious rituals but also as palms on ointments for personal use. (Schilling, Boris 2010).

Around 1370 perfume began to be used for more than just medicinal benefits. It developed into a product that was favoured due to its pleasant smell, which beneficially masked body odours. Oils of flowers or herbs were mixed with water to

81 produce scent, and this combination was used until the first mixture of alcohol solution with fragrant oils was made in 1370 (www.fragrancex.com)18.

The use of synthetic fragrance ingredients marked the beginning of the modern perfumery at the end of the nineteenth century in Paris. (Schilling, Boris 2010).

One of the first perfume houses was launched in Paris in 1775, which launched ‘Fougère Royal’ created by Paul Parquet in 1882. Later the perfumer Francois Coty created the synthetic fragrance ‘Chypre’ which contained synthetic quiolines, which provided a leathery note to the product. In 1919 Jacques Guerlain used synthesis of vanillin in his creation of ‘Shalimar’.

Today we now the Perfume house Guerlain as one of the oldest in the world. Guerlain has created some of the well-know fragrances including the iconic classics ‘Mitsouko’, ‘Shalimar’ (as mentioned above) and L’Heur Bleue. Today the house of Guerlain still is one of the leading perfume houses with a large customer base. From the research and the synthetic work and investigation of structure-activity and odour- relationship we today have a group of notes in perfumery like ‘fruity’, ‘marine’, ‘green’, ‘floral’, ‘spicy’, ‘woody’, ‘amber’ and ‘musk’ who create the basis in perfume making. (Schilling,Boris 2010)

The meaning of a scent As earlier chapters argue (Chapter 3), odour is very powerful and can affect us on a physical, psychological and social level. Odours and aromas surround us all the time without us being consciously aware of it. It is first when our ability to smell is being weakened that we begin to realize the important role that olfactory plays in our everyday-life and in our well-being. A man who lost his sense of smell because he has had a head injury explained that loosing the sense of smell had changed his life completely. For him it was like he was struck blind, and his life lost a great deal of its savour. “ You smell people, you smell books, you smell the city you smell the spring – maybe not consciously, but as a rich unconscious background to everything else. My whole world was suddenly radically poorer.” (Classen, Constance et al. 1994, p. 1)

One woman who had lost her sense of smell and then briefly regained it explained that while she could not smell, she felt like she missed out on some very essential

18 http://www.fragrancex.com/fragrance-information/chronology-of-perfume-scents.aspx

82 smells in the everyday life such as; people, the air, her house and her skin. Smell might not be crucial for our survival, but it becomes a more dangerous if we loose the olfactory warning system and the ability to smell, e.g. leaking gas, bad food or smoke from a fire. That is why the sense of smell is a more important part of our life than most of us realize. (Goldstein, E. Bruce, 2009 )

The perception of smell consists not only of the impression of the odours themselves but as a connection between the experience and the emotions associated with them. A survey, conducted by Montreals Concordia University, asked 270 students and professors what role they believed that smell had in their lives. When they were asked what their favourite smell were, some said ´the smell of babies´, or ´freshly mown lawn´ and ´homemade bread´ some even said that the smell of Olympic Stadium´, ´dogs` and `gasoline`. When they were asked what they disliked some answered `smelly men on the bus`, `cigarette smoke` and `raw meat`. Some even said that perfumes gave them physical discomfort such as headache and nausea and that perfume obscured the natural odours and ruined senses in general. (Classen, Constance et al. 1994)

Odours are essential cues in social bonding. An experiment proved that infants recognise the odours of their mother right after the birth, and adults can identify their children or spouses only by scent. The experiment revealed that most of the participants would probably never have given much thought to odour and how it is an important factor when identifying family members before they were involved in the test. The experiment proved that odours are recorded even when they are not consciously considered. (Classen, Constance et al. 1994)

Olfactory talent - the nose knows a lot Olfactory sensitivity differs a lot from person to person. One can be extremely sensitive to the bad smell of a garbage can, while others can cruise untroubled by and not be bothered by the smell. Olfactory sensitivity is just one dimension of humans overall smell talent. Other dimensions include awareness of odours and the ability to identify them and discriminate amongst them. What is important in this matter is that people are not accurate judges of their own ability to smell. (Gilbert, Avery 2008)

Surveys have shown that when people are asked to rate their own ability, most people say that they are above average. Smell tests are used to impartially assess someone’s

83 ability to smell. These tests come in two types; one asks you to put a name to the odour and the other asks you to detect lower concentrations of the odour. These tests have been available for commercial use in many years, but have just recently formally been recognised for medical use. The best score in a smell test is “normal”. There are no tests that rate one as an excellent “smeller”. In fact, there are no intelligent terms that would refer to a “smell genius” like having a low or high IQ or having strong or weakened vision. (Gilbert, Avery 2008)

Smell tests are especially made to identify people with dysfunctional noses. People that are unable to smell anything are at the lowest end of the scale. These people suffer from anosmia, a technical term for complete smell loss. One step up of the scale is hyposmia, which can be mild or hard. In both cases, the most frequent cause is infectious deceases, e.g. severe colds, flu and head injuries.

Men and women also have different smell ability. This has been confirmed many times through several methods and in different cultures around the world. In general, women detect odours at a lower concentration level and are therefore better at identifying them by name. Several studies have shown that there is a small gender difference in the nose. The brain structures that are related to odour perception vary in size and cellular architecture between men and women.

That women’s smell is superior is partly because women have a better verbal fluency and that verbal skills boost performance in test of odour memory and odour identification. Another factor is hormones. Women are especially sensitive towards smell under their menstrual cycle. Hormones interact in complex ways with the cognitive figures and produce one of the most dramatic olfactory gender differences ever observed in a lab. The gender differences are already present at birth. Baby girls are in general more interested in novel odours and spend more time smelling them than baby boys. If we look back in history, an explanation for this factor could be detected. In the hunter-gatherers age it were the females who gathered fruit and vegetables and therefore needed a good sense of smell to judge the maturity and wellbeing of the food. (Gilbert, Avery 2008)

Age also has a great influence on the olfactory performance. Already from the early forties the first signs of a smell-decline are detected and accelerate in the sixties and seventies. But it is not for all odours that the olfactory performance decline. Rose and

84 banana are examples of odours that are easily perceived until people are in the seventies. An odour like mercaptans, a natural-gas warning odour, has shown to have a decreasing perception among people in the fifties. (Gilbert, Avery 2008)

When changes are occurring in the senses of smell behavioural implications for the proper ingestion of food, safety and personal hygiene occur. Elderly people with reduced olfactory perception may not be aware of their lack of personal hygiene and the unpleasant body odours. Some even start to use so much perfume that it is directly offensive to those around them. But these older adults are unaware of this behaviour because they have reduced olfactory perception. (Saxon, Sue V. et al. 2010)

Culture influence Culture can have a determining role in the area of sensory marketing. The visual system is though considered dominant because it plays a significant role in many daily activities. We see an increasing importance in the sense of vision in today’s western societies mostly because of the products that are created such as books, television and computers (McLuhan,1961) .

These products require a great input from the visual sense. McLuhan (1961) believed that Europeans and North Americans live in a visual mode, while native Africans and other non-literate societies the auditory sense is the dominant one. (Fenko, Otten et al.) When it comes to olfactory, aromas and spices each preference is dominated by different cultures. In the book “ What the Nose Knows” (Gilbert, Avery 2008) the author explains how smell prejudice can occur in various cultures. This is especially the case when it comes to food aromas. All cultures use different kinds of spices, some smells or taste more badly than others, but each culture has learned to live with it and therefore it becomes a part of their belonging.

The book gives an example of a Norwegian dish that both smells and taste badly, called lutefisk. It is a very popular specialty in Norway and in Norwegian- populated areas of Minnesota and Wisconsin. Lutefisk is an air-dried codfish that has been in water for days and then in a solution of caustic lie for another couple of days till it ends up as swollen jellylike mass of smelly fish flesh. The Norwegians already know that this specialty is smelly and that it may seem disgusting for other cultures. Despite

85 that, lutefisk is highly popular with the Norwegians and they have made it a “badge” of belonging.

The North Americans, in particular, have in recent years started to open their eyes up to new sensory cultures. They have become more open to new foods, flavours and smells than ever before. Kraft Food, an American food and beverage company best known for its traditional “macaroni and cheese”, have recently introduced a Mango Chipotle marinade. A great leap away from the traditional North American flavour to a more exotic Asian style flavour. (Gilbert, Avery 2008)

Back in the 60´s, a study was conducted in Britain where adult respondents should provide hedonic ratings to a battery of common odours. Included in the study was the odour methyl salicylate also called wintergreen. The same study was conducted in the United States ten years later. The odour, wintergreen, was given one of the lowest pleasantness ratings, but in the U.S. study the same odour was given the highest pleasantness rating (Herz, Rachel S., 2011).

The reason for this big difference was because the odour wintergreen had different associations for each of the two countries. In Britain the odour was associated with a special kind of pain medicine that was popular during World War 2, which for the British participants was something they did not want to be reminded of. In the U.S. wintergreen is a sweet candy smell that had only positive associations for the American participants. This study confirmed that the key to olfactory associative learning is the experience that occurs when the odour is first perceived and is especially the case where the experience had an emotional implication. (Herz, Rachel S., 2011)

Odours in rituals Odours are often used in rituals where they act as a power to please and attract those to whom the scent is directed. They create meaning for people and serve to express different domains of existence.

Cultures all over the world have different rituals and different ways in which they use odours in their rituals. In Ethiopia, for instance, the cattle-raising Dassanetch find the odour of cattle very attractive. It is a scent that carries notions of fertility and social status for them. The women rub their hands, shoulders and breasts in butter to become more attractive to the men by this scent of butter. The Dogon of Mali are

86 pleased about the odour of onion. They would fry the onion plant in butter and rub it all over their bodies as a perfume. (Classen, Constance et al. 1993)

The olfactory preference of African Bushmen is the sweet seductive scent of rain in which they have elaborated several folktales around and believe that no other odour can be compared to this. In other cultures perfumes are used as a conjunction with visual decorations. Some decorate their faces and bodies with scented paint made by different flowers, fruits and trees. In many cultures fragrance is not only a matter of using perfumes to be attractive towards the other sex. It is also a mean of expressing the aromas in the food, possessions, surroundings and living space. (Classen, Constance et al. 1993)

In the United Arab Emirates, for example, perfumes are used in the form of oil as they believe that in this way the fragrance smells better and is more aesthetically pleasing than other perfumes forms. The fragrances that are frequently used in the UAE and in the Near and Far East are aloewood, ambergris, saffron, musk, rose, jasmine, sandalwood, henna and civet. But it is only the wealthy that can afford to treat themselves with these fragrances. Aloewood, for example, can easily cost approx. $250 per 28 grams. Such an expensive scent also adds exclusiveness and status to the scent. The men in the UAE are very appreciative of the perfumes used by the women and believe that perfumes are a big part of a woman’s charm. (Classen, Constance et al. 1993)

In the modern Western culture smell is probably the most undervalued of all the senses. But cultural history has proven that this was not always so. The philosophers and scientist of the 18th and 19th centuries made a “revaluation of the senses” that is the reason for the low status of smell in the West culture today. This intellectual elite of this period decided that the sense of sight should be the most important and superior sense while the sense of smell was at a significant lower ranking, compared to a more primitive ability like savagery and madness. Smell was seen as a threat to the whole impersonal rational detachment of the past modern scientific thinking. That is why we today know far less about the sense of smell than of vision or hearing that were of a higher status back then (Fox, Kate )19.

19 http://www.sirc.org/publik/smell.pdf

87 This low status of smell in the Western cultures is also reflected in our language. The everyday terms for “nose” are almost all offensive and some are even disrespectful like schnozzle, conk or hooter. We also believe that large or distinctive noses are considered ugly. The other senses all have positive associations in the colloquial language. When we refer to sight, we might say that one is “keen-eyed” or “visionary” and when referred to hearing one is “a good listener” or “having a good ear” (Fox, Kate,).

When we in the western cultures wish to insult someone we use words that are offensive to ones hearing, sight, touch or taste, e.g. deaf, tasteless, myopic or blind. The sense of smell is unimportant for us and using a word like “anosmatic” would not even be understood by the majority and could therefore not be used as an insult. The word “to smell” when used descriptively and not as commendatory adjective, has a very negative meaning because when we say, “it smells” it is usually a bad thing but when we specify it with “it smells good” it is a positive thing. In this way, we can say that smells are guilty until proven innocent.

Sub conclusion: The ability to smell is important for human beings. The human nose is the main organ for taste as well as smell. The perception of smell, exist not only in the sensation of odours themselves, but also in our emotions and experiences. The sense of smell can evoke strong emotional reactions and many of the scents we like and dislike are based on pure emotional associations. Cultural factors have a great determination on consumer behaviour when it comes to scent marketing. Culture is an essential parameter for how consumers scent association has been founded. This is some of the main reasons why marketers find scents so perfect for marketing purposes and find new ways in which to exploit them. One other matter concerning scent marketing discussed in this section is how to measure ROI. How do brands measure success or failure in terms of using ambient scenting? And how could it be possible to measure the brand equity effect of olfactory brand enhancement.

88 ROI on scent marketing In this section ROI and measurements of olfactory branding are discussed, however, a final solution on how to measure brand equity and ROI on olfactory branding is not presented.

Scent marketing is in its words a way to promote sales by using odours and fragrances. Instead of using event marketing, TV and radios advertisements or other expensive visual and audio marketing media, scent marketing could have the advantage of being relatively low in its marketing cost. If this is the case, the big question is then, why are scent marketing not used more frequently and why is there lack of awareness in this area.

Some of the answers for this may that be ROI on scent marketing is relatively difficult to define. Also, brands that are using scent marketing commonly go quietly about its strategy to avoid being accused of “stinking up the place” or being blamed for not being considered towards people with chemical hypersensitivity or other scent-related implications (Daye, Derrrick 2008)20.

Scent marketing is, as such, not a novel concept since it has been present for some decades now, but the return on investment is still in many ways a difficult parameter to measure. We know now that scent marketing has an impact on brand recognition, but can brand recognition really be translated into sales? (Daye, Derrrick 2008)

In search of an answer to this question one could take a look at the success stories from brands that have had positive outcome in using scent marketing. This could be a way to claim the effectiveness in using scent as a part of the marketing strategy. Nike is one of the brands that have shared their success story with scent marketing. By adding scent to its stores, Nike has managed to increase the intent to purchase by 80 per cent.

Another study (The Marketer, 2011)21 from a patrol station shop showed an increase in the purchase of coffee by 300 per cent by pumping smells of coffee out in the shop.

20 http://www.brandingstrategyinsider.com/2008/04/the-sweet-smell.html#.URI9ZEojjcs 21 http://www.themarketer.co.uk/trends/scent-marketing/

89 The cost of these efforts was only around $156 a month, hence with the high increase in sales the scent marketing investment turned out to be lucrative investment, gaining an economic boost in its sales (The marketer, 2011).

Thus these are examples of successful scent marketing strategies with a low cost but high effectiveness. It is not in all product categories that using a scent technology as a marketing strategy that is a beneficial action.

For products like bread or jam the sales lift has to be extremely high to achieve a successful profit margin. To make it work with scent marketing it is important that the products have an aroma that is crucial to the positioning. It should be very clear what exact product the scent in the air is linked with otherwise it might confuse and not lift sales for that exact product that it was mend for. (Thompson, Stephanie, 2006)22.

Measuring the return of investment in direct sales may be a difficult task for scent marketers, but taking other parameters into considerations the ROI aspect could be determined. The value of the brand i.e. the brand equity is an important parameter when looking at long-term value for a brand. Creating strong brand equity would eventually gain a great value for the brand. Here scent may be an essential part of the brand equity.

Brand Equity In branding creation of strong brand equity is considered to be the main purpose of the brand building (Aaker, 2008; Keller, 2008). Brand equity endows the products with the value that helps consumers to interpret, process and store information about it. Moreover, it enhances preferences and purchase intentions (Cobb-Walgren, Ruble, & Donthu, 1995; Moradi & Zarei, 2011).

According to Aaker (1991, p.15), brand equity is “the set of brand assets and liabilities linked to the brand, its name, and symbol, that adds or subtracts values to a product or service for a firm/or its customers”. Brand loyalty is the behavioural reaction, whereas brand awareness, associations and perceived quality reflect the mental constructs of the brands.

22 http://adage.com/article/news/big-marketers-smell-money-scent-technology/112849/

90 When discussion brand equity, it is important to distinguish between consumer brand equity and financial brand equity.

Consumer brand equity refers to the underlying customer- and marketing-related components of brand equity. In the components of consumer brand equity include, awareness, performance, brand loyalty, imagery/feelings and other assets.

The four factors; awareness, performance, imagery/feelings and other assets do not imply any real behavior on the part of the consumer. Real brand strength will be translated into consumers buying the product and being loyal to it. In fact the real company asset is brand loyalty and not the brand itself.

Financial brand equity refers to the financial value of the brand for the company. Whenever a company is involved in mergers or acquisitions, the financial value of the brand portfolio becomes of great importance. Some may say even the most valuable asset, where consumer brand equity refers to the underlying customer- and marketing-related components of brand equity. Here including awareness, performance, brand loyalty, imagery/feelings and other assets.

One example of a successful scent marketing strategy with measurable results is according to Bass de Han from SMI Europe, the case of a well-known hotel chain. For its anniversary the hotel decided to change all the fragrances in its products e.g. shampoo, body shower, soap, lotion etc. to the same scent, which was used as subliminal ambient infusion in the lobby and car-park. The result was measured within a time horizon of one year. In all rooms questionnaires were provided for the hotel guests to fill out. Questions concerning the quests comfort, state of tranquillity, how relaxed and safe they felt – and if they wished visit the hotel again.

Interestingly, the results from the questionnaire revealed an increase in the guests’ state of comfort and loyalty. Both business and leisure guess felt safer and more relaxed during their stay and sales showed an increase of loyal guests returning to the hotel.

When measuring ROI - and its effect in scent marketing, it must be acknowledge that the measurement takes time and need to be benchmarked to a similar period. Measuring sales from a retail store in two similar periods e.g. to months with similar tendencies in sales. Here one month scent infusion could be conducted and the other

91 with out scent. From the two comparable months, increase or decrease in sales can be measured (taking account of significant variables).

In measuring ROI within the concept of olfactory brand ownership, a similar method of benchmarking two sales periods could be conducted. Interestingly in the discussion concerning measuring olfactory brand ownership, is the concept of brand equity. By adding an odour to the brands product line e.g. makeup, but also adding the odour in the retailer, in the bags and on the staff enhances the brands touch points with its costumers. The costumers may by then remember the brand better since the scent is following them for a longer time and by then develops equity.

Further loyalty and affection of the brand may be measured by asking the consumer to rate and answer questions about the brand online via an online survey. For some brands like make-up brands that have a costumer club, these surveys can be sent in link with a contest.

One other option for enlarging the touch point and make costumers experience the scent out side the retailer, could be by adding a test perfume in the bags. This is though, most suitable for brands with products matching this category.

Review of theoretical findings In previous chapters we have tried to define why olfactory stimuli is interesting concerning branding by combining general marketing theory and sensory marketing with a theoretical neuropsycology perspective. Here, we discussed the importance of brand recognition in correlation to sensory marketing.

We have further identified important aspects of how odour is memorised via a highlighting olfactory parameters and their relationship to current memory theory. (i. e. familiarity, recognition, identification).

Further this study has been established by emphasizing the impact of semantic and episodic memory on odor recognition. The presented literature review has highlighted the role played by semantic memory in episodic odour recognition, via naming and recognsing already known odours. It is important to note that the results discussed in above chapters are restricted to recognition memory for common odours, which likely represents learned information in the individual's network of semantic knowledge.

92 Supplementary a review concerning age-related impairments in various olfactory and cognitive parameters and the potential detrimental effects in episodic odour memory has been discussed in the chapter concerning autobiographical memory.

From these theoretical findings we have discussed the sense of using scent to enhance brand memory by consulting scent marketers and discussing already established cases of companies taking advantage of scent marketing. Here, a special focus was drawn upon how cultural and demographic factors have an important affect on the perception of scent and on consumer preference.

Finally, the issue of whether olfactory memory should be conceptualized as an independent process, or whether it shares characteristics with memory for verbal and visual information, has been addressed.

An important issue to address in future research therefore concerns memory for unfamiliar odours where the influence of semantic and verbal mediation is minimized.

This study is focused on clarifying if odour can be a mediating factor in branding - and if it is possible learning to connect and recognise an odour by a branded logo clue or the possible of learning a new odour through semantic and episodic learning via associative learning strategy.

The next chapter in this study will have a positivistic approach by examining if it may be possible to combine odours with brands by testing associative learning theory in CBS sense lab.

Chapter

Research design Experimental design The experimental design draws upon olfaction, emotion and associative learning theory and its effect on motivated behaviour by Rachel Herz (2004). This approach is adopted as we are studying the prospect of naming and creating specific associations for unknown odours. This is tested via associative learning, the process by which one event or item comes to be linked to another through experience, which is critically involved in human cognition and behaviour (Rachel Hertz 2004). It has also been proposed that associative learning principles explain human perceptual responses to odours (Engen, 1991; Herz, 2001). Specifically, it is proposed that odour hedonic perception e.g., liking/pleasantness is derived from a learned association with the emotional context in which that odorant was first encountered. That is, one would dislike the smell of roses if it were first encountered in an unpleasant setting (e.g., a funeral).

The experiment is designed to study if odours can be cued to brands via associative learning based on theory concerning how odour hedonic perception is derived from a learned association.

This inherent hedonic property of olfactory stimuli, together with the poor accessibility to semantic processing and language, makes odour particularly suitable for studies on classical and evaluative conditioning (Gesualdo M. Zucco 2009)

Prior research has shown that odours that are liked or disliked have a congruent impact on mood and cognition. Pleasant fragrances used in a “real life setting” were shown to improve mood and even alleviated some of the symptoms associated with (Rachel Hertz 2008)

Several studies have also shown that pleasant and unpleasant odours elicit physiological changes (heart-rate, GSR, eye-blink) that are consistent with positive and negative emotional states (Rachel Hertz 2008)

95 Note that in these laboratory studies the physiological and subjective mood changes observed to odours only occurred in individuals who experienced the odours as “pleasant” or “unpleasant,” respectively.

Positive mood has generally been shown to lead to increases in productivity, creativity and the tendency to help others (Gesualdo M. Zucco 2009). Negative mood has also shown to influence cognition and behaviour though less consistently and predictably than positive effects. The discrepancies between positive and negative effect on behaviour are beyond the scope of this study. Notably, in the few studies reported, ambient odours have been found to elicit mood effects on cognition and behaviour. We wish to find the truths about how- and where odours can or could be most effective. Therefore we are studying the neurobiological connection between olfactory and branding and how to conduct sensory branding in form of olfaction.

Hypotheses The hypotheses are formulated, based on our research question: Odour cues enhances brand recognition and on the prior literature findings, assuming that odour have an effect on branding and interfere with consumers’ mood and buying behaviour and further, odour is one of the strongest senses and easiest manipulated.

Important to clarify before testing if odour cues enhances brand recognition, is how and when, we see there is an effect in recognition and how we evaluate it.

Therefore in discussing, when brand recognition is measure to be high, clear established variables must be defined before measuring when odour cued brand recognition is calculated to be significant.

Therefore the following measurable variables are established:

In odour-cued recognition we estimate that a result of 100% chance for recognition via an odour cue is the most positive result, which shows 100% recognition. Hereafter a result of 50% chance for recognition is average. Everything above 50% suggest odour cued brand recognition can be conditioned and therefore can be used to enhance brand recognition. Everything below 50% suggests a low effect and therefore questions if odour cues can be conditioned in enhancing brand recognition.

Hypotheses are divided between four hypotheses H1, H2, H3, H4

H0: Odours create no significant emotional reaction in pupil dilation

H1: Odorants create emotional reaction in pupil dilation.

H0: A stronger emotional reaction has no significant in generating a superior recognition

H2: A stronger emotional reaction generates superior recognition

H0: Specific odorant and brands matches has no significance in cued brand recognition

H3: Specific odorant and brands matches are significant in odour cued brand recognition.

H4: A link between an unknown odour and a brand can be forge via controlled associative learning.

Pilot testing Early in the process of conducing an experiment underling or dismissing our hypotheses, we tested different ways of testing odours.

To test the feasibility, equipment and methods we sat up a pilot study, which was a small-scale rehearsal of our larger research design. In our pilot study, we tested different techniques in a smaller scale version of the experiment we had in mind.

First we bought seven different natural aromatic oil fragrances after our own liking. All fragrances were pure fragrances like lemon, grape, pine oil and Orange Blossom.

97 In the first pilot scent test, with the purpose of testing the liking of the fragrances, we used plastic cups with a drop of oil on a cotton patch.

We asked different participants to smell the fragrance and tell us their associations toward the fragrance.

The test showed a different result than expected. All participants in the test had negative associations and disliked the fragrances - even after being told the label of the fragrance. Thus, most participants got surprised when the names of the fragrance were revealed. The labelling and the scent did not match, according to the participants.

This result made us change the plastic cups with fragrance paper sticks from a perfumery infused with the same oils from the first test.

In the second pilot scent test the answers were now increasingly positive. However, the fragrances still had a different scent when in bottle form compared to the paper stick form. The answers were still centred on negative words though more positive terms of formulation were used.

Furthermore we found great variation in the level of like and dislike when it came to male and female participants.

According to previous literature (p. 77), men and women have different smell ability. This has been confirmed many times through several methods and in different cultures around the world. In general, women detect odours at a lower concentration level and are therefore better at identifying them by name. Several studies have shown that there is a small gender difference in the nose. The brain structures that are related to odour perception vary in size and cellular architecture between men and women. Therefore in the third pilot test, only females were invited to participate in the fragrance test.

Another variable we did not evaluate when first purchasing the oils, was the fact that all fragrances were fragrances that were well know like lemon, pine tree etc. The fact that all the fragrances were commonly used and therefore - in theory - already had a hedonic response connected to it, made us find new fragrances.

98 So we contacted professionals in the aromatic oil and fragrance industry. We contacted Ambient idea (p. 67) to get advice on fragrances and their durability, where after we changed all the aromatic oils with composed fragrances made by a perfumer.

After several fragrancetestings, we decided on 4 new fragrances/oils. Following fragrances were chosen: Fress Grass; a fresh an highly liked scent according to Ambient Idea, Ruby a fashionable scent, Wood a scent highly preferred by Scandinavians and Fig a scent popular for lingerie or female retails.

With the right fragrances we started planning the research design and the set up for the pilot memory test.

The research and test is built on a previous study made by Rachel Herz, since her associative learning model for odours is very suitable for our hypothesis testing.

Pilot odour memory test set up The first test set up was divided in four small sessions. First session is an odour association test, where the participants in own words tell the associations they feel towards the odour. The second test is a rating test in front of an eye-tracker. The third test is an associative learning test where brand, abstract pictures and odours are present in series on the same computer screen with an eye-tracker. The Fourth session is a brand recognition test with help from odours presented with matching pictures from session 3.

In the first pilot test’s session one set up each participant was presented four different odours and afterwards asked to mention which associations came to mind when presented with the scent. Here we experienced that giving the right instructions to the participants was very important. Giving the participants clues in words, like asking for event or person association, made participants answer only to associations linked to the given keyword.

In set up for session two and three, we discussed the different variables we wanted to test concerning odour memory. By testing odour memory via brand logos and paintings we first of all wanted to test if it is possible to connect the odours with brands/ paintings via associative learning, but also if specific odours are better matched with specific brands. The concept of matching odour and brand by personal

99 traits e.g. via a brand mood board Fx. if a male luxury brand may fit better with a more heavy wooden scent than e.g. a light floral scent.

Therefore in session three, we decided to change the brand and odour match every test day in order to test if the right match between brand and odour actually had an influence on memory.

We decided that the fourth session, the brand and odour recognition test, should be held 30 minutes after session one, two and three. In our first test design, we wanted participants to come back some days after the first sessions to test the long-term memory and recognition of odour and brands. We decided not to continue with that specific set up, since we agreed on the possibility of participants not to showing up for the last test would result ending up without any usable results.

So after 30 minutes of waiting, where the participants were served coffee, tea and reading stuff to clear their minds and noses, we conducted the last - and fourth session.

In session four, the brand and odour recognition test, we decided to present all four brands at the same time mixed with four abstract paintings from session three. We decided to use abstract pictures as distracters, like in a real retail environment where brands and surroundings are mixed. By presenting all four brands at the same time, we made it more difficult for the participants to choose a brand, whereas presenting one brand and four abstract paintings for each odour would have made the choice more obvious.

Set up The experiment took place at the facilities of the Decision Neuroscience Research Group at Copenhagen Business School SenseLab.

The experiments were carried out over the time horizon of 45 minutes per person. Starting with 10 to 15 minutes of testing session 1) to 3) where after a 30 minutes rest session 4) was conducted.

In the 30 minutes rest time participants were offered coffee or tea in a waiting area to clear their nostrils. Also reading stuff like fashion magazines and newspapers were made available to remove focus from the experiment.

100 After the 30 minutes of wait participants were called back for the last test session 4) the recognition test. This test lasted only a few minutes per participant.

Sample population 56 women ranging from 19 – 37 years old with normal or corrected to normal vision through glasses or contact lenses were tested. The nationality of participants was not emphasized in this study, even though it could have been an interesting factor. It is estimated that all participants are living in Copenhagen or nearby.

Participants were found through CBS and personal networks. Invitations to the experiment were posted on social medias such as facebook. In practice, most participants were found on the hallways at CBS.

Generally, convenience samples have a high possibility to bias results, since some participants may be more eager to volunteer than others. It can be argued that the sample population is too monogenic and not is related to the general population.

Instructions The level of information provided to the participants was very limited prior to the experiment. The limited information refers to Blind Procedures (Saunders, Lewis, and Thornhill, 2009), which is evident in eliminating biases produced by the expectations of the research participants. Accordingly, the participants were unaware of their obligation in the research prior to the experiment. The instructions for the experiment consisted of an identical introductory script, both verbal and written, which was carefully delivered with the same tone of voice.

Testing procedure Based on a positivistic approach to employ the highly structured methodology, the created procedural guideline was followed (Saunders, Lewis, & Thornhill, 2009).

First of all, the participant was invited to sit down in front of the computer and was introduced to the procedure of the experiment.

Afterwards each participant was presented with four different fragrances each at the time, and afterwards they were requested to judge the pleasantness and familiarity of the four odorants and to try to identify and provide a verbal description of each of them.

101 Thereafter, eye calibration was done and session two started. In session two participants were presented with the same scents in the same arrangement as in session one. Hereafter they were told to range the fragrances from a scale from -5 (dislike very much) to 5 (like very much).

Afterwards eye calibration was done again, and session three was run. Here participants were presented same scents in same arrangement as in session 1) and 2) while presented four abstract paintings and one brand logo arranged in a random order changing from scent to scent. In total 16 abstract paintings were presented and four brand logos.

The last procedure was the recognition test, where the participants were presented nine pictures, which they where asked to connect to the four presented scents.

Groups According to control and test the different effects of the fragrances and to clarify or falsified if some scents are better suited to some brands and if some fragrances are better at enhancing memory. The 56 participants were divided into four different groups consisting of 14 participants in each group. (n = 14)

In assigning the participants randomly in different groups, we try to control the possible effect of an alternative explanation to the planned intervention (manipulation) and eliminate threats to internal validity.

The groups were divided in the way that all groups were presented the same fragrances in the same order but matched with different abstract paintings and brand logos.

102 Figure 5.1 Control groups matched in different fragrances and brands model

Critique of experiment set-up It can be argued whether the four different groups can be categorised as control groups. Instead they could be described as four different groups with four unknown odorants mixed with different brand logos and paintings. Another set up could have been favoured. An alternative set up could have been conducted in the way that, two groups presented unknown fragrances to test the associative learning theory and in two other control groups presented well-known fragrances to clarify if only novice fragrances can be used in associative learning and in branding vice.

Eye-tracker Eye-tracking is a technique employed to measure the physiological responses to the stimuli tracked through the visual system. The method utilizes eye tracking data in a way that makes it possible to measure the immediate unconscious and uncontrollable emotional responses before they are cognitively perceived, interpreted, and biased by our mind. (Joss Fong, 2012)

The eye-tracking device detects arousal immediately and can analyze exactly what participants were looking at by first glance. The gaze tracking unit makes sure that the eye calibration is successful in order to obtain valid and useful data for testing.

103 The purpose of this test was not only to see when the pupil dilates, but also to measure how participants reacted emotionally and cognitively when they were presented with brand logos and abstract paintings while smelling different odorants. It has for more than a century been well known that our pupils respond to more than changes in light. Pupils reveal our mental and emotional commotion within. In fact, pupil dilation correlates with arousal so consistently that researchers use pupil size, or pupillometry to investigate a wide range of psychological phenomena. (Joss Fong, 2102)23 Further cognitive and emotional events can also dictate pupil constriction and expansion, through such events occur on a smaller scale than light reflex, causing changes generally less than half a millimeter. Thus, the smaller scale it is enough for measuring. By recording participants eyes with infrared cameras and controlling for other factors that might affect pupil size, like brightness, colour, odour etc. it is possible using pupil movement as a proxy for other processes, like mental strain.

This is possible because, while the eye is exposed to specific visual stimuli e.g. different odorants, the pupil dilates in response to the autonomic nervous activity. Pupil size may show the instant emotional reaction, which is a great indicator of the emotional hedonic valence (Rupp & Wallen, 2007; Bradley et al., 2008). “Arousal is the basis of emotions, motivation, informational processing and behavioural reactions” (Groeppel-Klein, 2005, p. 428). The larger the pupils are the more emotionally aroused the person looking at the stimuli is, regardless of the stimuli being pleasant or unpleasant. However, pupil dilation may be as well affected by other factors, such as light intensity of the image, cognitive load of the information or tonic state (Bradley et al., 2008).

Importantly, when measuring pupil reaction emotional stimuli tends to draw the attention and detect change faster than neutral ones. This means that the stronger the emotional inducement is, the less time is spent on decoding information.

Odour test with Eye-tracker In the second and third session of the odorant test we conducted an eye-tracker test with the main purpose of measuring emotional stimuli toward the different odorant. The eye-tracking test is used in combination with session four to see if emotional reaction toward some odorants emphasized the ability of recognition.

23 http://www.thescientist.com/?articles.view/articleNo/33563/title/The-Meaning-of-Pupil-Dilation/)

104 The attention towards each product was thus limited to only six seconds per slide. The six seconds were valuated as sufficient time for the eyes to have a good look at the picture while smelling the fragrance and hence create a reaction.

Session set up Session 1): Participants were given the scents one by one, without knowing the label of the scent. Participants were then asked to name associations, or name the scent for each of the scents.

Session 2): After participants had smelled all four scents and valuated the scents in own words. Session two is started. Session two is set up to study the unconscious reaction toward the scent (H1) and further the conscious reaction (H2). By first testing unconscious and then conscious attention, we ensure that conscious thinking does not dilute the odour-perception.

The first slide in the eye-tracking test is an instruction on how to navigate the mouse when rating the scents. After the instruction slide, a slide with a fixating cross is presented. Participants smell the scents while looking at the cross. Here the unconscious emotional reaction is registered. Right after the fixating cross, participants are asked to rate the scent after own liking from a scale from -5 (dislike very much) to 5 (like very much). (Figure 5.2)

Figure 5.2 Session two: Eye-tracking; Fixation cross and odour ration scale

Session 3): In session three, participants are asked to read an instruction slide, where after session three starts. Here participants are presented with four series of pictures, four abstract paintings and one brand logo, all pictures divided with a fixation cross. Participants are given the scent one by one in the order of the group participants are in. Between the four series of pictures and scents, participants are asked to take three deep breaths through their nose to clear nostrils. Figure 5.3 portrays an example on how the series of pictures where presented in the conditioning session.

105

Figure 5.3 Session three: Eye-tracking set up; Odour and brand conditioning

Session four: the last session in the experiment set up is the recognition test. Participants waited around 30 minutes after being tested in session three (the conditioning session). When the 30 minutes break is over, participants are placed in front of nine pictures. These nine pictures consist of four brand logos and five abstract paintings - all from session 2) and 3). Participants are presented one scent at a time in a random order. After each presentation of a scent they are asked to point out maximum two of the pictures, a brand or an abstract painting or both, which they associate with the scent.

Debriefing of participants

After participants finished the tests, a short debrief of the experiments was given. For interested participants, a review of their eye-tracking results was given. E.g. heat maps and fixating points.

Results

Session one This session was carried out in order to test the oral hedonic response and memory based vocabulary concerning odours, which has been discussed in earlier chapters (chapter 3). Session one is carried out only to illustrate the versatile associations towards odours and is not being incorporated in the final results.

There was a large individual variance in the subjects’ responses. In figure 5.4 a sample of associations given for scent B and D is illustrated. The associations appear very versatile. (For a full list of odour associations, see appendix 3)

106

Figure 5.4 Samples from free odour association test – here scent B and D

Session two Figure 5.5 illustrates the different reactions toward the odours in the task of rating an unconscious emotional reaction only by smelling the odours. Basically the model shows that when participants smelled only one odour and thereafter rated the odour, participants’ pupils were reacting differently for each of the odours. It seems that the difference between the scents in pupil dilation are the same for both stages, however, for smelling only a stronger emotional reaction is noted.

Figure 5.5 Pupil dilation divided between unconscious and conscious rating.

107 Out of the four scents, two of the scents differentiate a little with regards to pupil dilation. Scent B and D showed a stronger emotional reaction both in unconscious and in conscious rating.

Figure 5.6. Ratings of scents.

Figure 5.6 shows how the participants rated the various scents in scale from -5 to 5. The figure states clearly that scent C is especially positively rated while scent D is very negatively rated. The scents A and B are almost equally rated and close to neutral. But it is fair to mention that scent A is slightly more positively rated than scent B.

Session three The experiment was compiled of four different scents and four brand logos by which we were testing if specific combinations of brands and odours create a stronger emotional arousal, which hypothetically leads to better recognition. It is interesting to investigate the data’s ability to distinguish between the combinations between the four scents and brands and how each combination potentially has an effect. Accordingly, an Analysis of Variance (ANOVA) was applied to compare the means between the scents, which in return demonstrated a significant effect in variance of emotional arousal.

108 From the results we see a highly significant effect on pupil dilation (emotional arousal varying from different combinations of scent and brand. The explanatory value of this effect is also highly significant with R2=0.803 which, accordingly, means that the figure 5.6 is highly significant and explains 80% of all variation in pupil dilation.

However, by exploring the data, with ANOVA F-test, significant difference (F= 1.104 p<0.0001) in emotional arousal between scents by brand. This suggests that there was a bias while, being presented odour and brand.

As per see (figure 5.6) scent A has a greater emotional response combined with MAC and the lowest combined with Rolex.

Scent B has a greater emotional response combined with Louis Vuitton and Rolex and the lowest combined with Tod’s and MAC.

Scent D has a great emotional reaction combined with Louis Vuitton, while the emotional response is very low combined with MAC and Tod’s.

Scent C combined with MAC has the greatest emotional response compared to Louis Vuitton, Rolex and Tod’s.

109 Figure 5.6 illustrates how pupil dilation is affected by odours dependent on which brand participants where presented.

Interestingly, we see that Louis Vuitton generally in average has a greater emotional response combined with all scents compared to Tod’s, which on average ranges the lowest.

Highest emotional reaction match between brand and scent:

• Scent A and MAC • Scent B and Louis Vuitton • Scent C and MAC • Scent D and Louis Vuittion

Session four In figure 5.7, an overview of total answers is divided between the four test groups. The result shows that out of 224 answers 82 of them were a correct answer matched between scent and brand. In total 36% of the answers were correct, which gives an average of 20,5 correct answers divided between all four groups.

Interestingly, we see that group 3 have 43% correct answers, where group 4 rang with the lowest score of 30% correct answers. Group 1 and 2 are equally close in correct answers matches between scent and brand, with respectively 36% and 38% correctness.

Figure 5.7, Results divided in groups

(Figure 5.8) By dividing the results in groups of scents we can see that the different scents have variable results in concern to combinations of brands. Scent A is ranged with the lowest score of 25% correct answers, where scent C is superior with 51,29%

110 correct answers. Over double of the answer were correct when brands were combined with scent C. Secondly, scent D ranges with 39,29% correctness in answers followed by scent B with 30,36%. The explanation for the variation of correct matches may be found in the significance and intensity of the scents. Both scent C and D were more dominant than scent B and A, which had a lower intensity.

Figure 5.8 results divided in scents

Analysis of results H1, H2, H3 & H3

Analysing H1

H0: Odours create no significant emotional reaction in pupil dilation

H1: Odorants create emotional reaction in pupil dilation.

The result from the eye-tracking experiment, measuring pupil dilation, shows that odorants have a significant difference in emotional reaction, by which we refute H0 and verify H1.

Analysing H2

111 H0: A stronger emotional reaction has no significant in generating a superior recognition

H2: A stronger emotional reaction generates superior recognition

The results from session two showed that when participants smelled an odour and thereafter rated it, the pupils were acting differently for each odour. Scent B and D had a stronger emotional arousal, than scent A and C.

From the rating scale, we see that scent C on average was rated more pleasant than the other scents, and that scent D in average were rated more unpleasant. This could indicate, that the higher the arousal illustrated in (figure 5.5) the more unpleasant the scent is.

Scent A and B which, were rated more scattered between pleasant and unpleasant, though scent A was rated a bit more pleasantly than scent B. Scent A had the highest liking in pleasantness but lowest emotional reaction, where scent B were rated a bit less unpleasant but with stronger emotional reaction.

In sum:

• Scent C and scent A was rated more pleasantly but with a lower emotional arousal. • Scent B and scent D were rated more unpleasantly but with a stronger emotional arousal.

The measurement of arousal between the different scents was the same in symmetry for the unconscious and the conscious stage, which suggests significance in odour arousal between different odours both unconscious and conscious. It was noted though that the level of arousal was stronger in the unconscious test than in the conscious test. It may indicate that when participants were asked to rate the liking of the odour, they were more deliberate as the test demanded a conscious decision.

To verify or refute H2, we need to compare results from session two with session four.

Results from session four, odour cued brand recognition test, shows that:

• Scent A had in average 25 % correct answers

112 • Scent B had in average 30,36% correct answers • Scent C had in average 51,79% correct answers • Scent D had in average 39,29% correct answers

This suggests that a stronger emotional reaction has no significance in generating a superior recognition, since scent B and D had a strong emotional arousal but neither highest nor lowest scores in correct answers in the odour cued recognition test. From the combined data analyses we can therefore refute H2 and verify H0.

Analysing H3

H0: Specific odorant and brands matches has no significance in cued brand recognition

H3: Specific odorant and brands matches are significant in odour cued brand recognition.

In session three we are pairing two stimuli (odour and brand) to create a conditioned response in session four. We are also testing if specific odorants and brand matches have a significant effect in the odour cued brand recognition test. As we can see in figure 5.8 the result in correct answers varies between brand and odour matches.

When matching scent A with all four brands an average recognition score is 25%, which is the lowest score. Where scent C matched with all brands have an average score of 51,79% correct answers in recognition. By highlighting the superior matches we see scent C and Louis Vuitton and scent C and MAC, which have the highest scores both with 64,29% right answers.

Other matches like, scent A and Tod’s have a very low score in recognition ranking with 7,14% correct answers. In general, scent A is ranking low in all brand matches except MAC.

The result indicates that participants are reacting to brand and odour combination hedonically after odour preference and brand awareness. It could be said that the better match the greater reaction. On the other hand it might be the opposite of hedonic synergy between brand and scent. E.g. If scent D was unexpected to be matched with Louis Vuitton.

113 One other factor to considerer is if the subjective emotional arousal is positive or negative towards the scent and brand combination. One might have a negative arousal towards the combination whereas another has a positive reaction. It is therefore difficult to conclude from the test if the correct match between scents and brands are high due to positive or negative emotional reaction.

The different results in odour cued brand recognition are as imbued in previous literature according to hedonic perception.

From previously chapters is has been discussed that emotion and hedonic judgment are primary facts of olfaction and are known for influencing mood and alertness. (P. 43)

Further, according to the literature the most immediate and basis response we have to odour is not analytical, even though an analytical evidence would be prosperously, instead it is hedonic whether we like the odour or not. Three factors most often evaluated when examining odour hedonic perception are; pleasantness, familiarity and intensity. Here pleasantness and familiarity are positively correlated in preference perception where familiar odours tend to be more favoured than unfamiliar odours, and pleasant odours are frequently perceived as familiar. (Herz, Rachel 2011 - Sensory Marketing: Research on the Sensuality of Products) (p.54).

This suggests that the participants have hedonic perceptions which influences the ability to recognise brands via an odour cues after how familiar, pleasant etc. the scent are too individual. Therefore we refute H0 and verify H3.

Analysing H4

H4: A link between an unknown odour and a brand can be forge via controlled associative learning.

In last session we were testing if controlled forged associative learning between odour and brand were possible. The main purpose was to test if associations toward a well-known brand can be transferred to an un-known odour and thereafter the odour works as a memory cue for the brand when again encountered.

114 Participants in all four groups had in average 20,5 (36%) total correct answers out of 56 answers. Which, indicates that brands at some level might be recognised via odour cues. If this is by chance that 20,5 of the average answers were correct is though to be questioned.

If we instead look at the individual match between scent and brand by looking at the results divided in scents and not groups, another result is showing.

The percentages of average correct answers when matching the brand via an odour cue are variable. Scent C match with Louis Vuitton, Rolex and MAC is ranking with accordingly 64,29%, 50% and 64,29% (Tod’s 28%57) in average 51,79%. Which is above 50% chance for recognition, this indicates that a link between an unknown odour and a brand can be forge via controlled associative learning.

Further Scent D matched with Rolex and MAC both ranks with 50% correct answers (Tods, 35,71 and Louis Vuitton 21,43) in average 39,29%. Which, is below 50% chance for recognition and contradict that a link between an unknown odour and a brand can be forge via controlled associative learning.

These results indicate that some scents are better working as memory cues for some brands. Suggestions for this phenomenon might be explained via the subjective preference for odour and brands and how it is matched. For some participants the combination made sense and enhanced the recognition, where for other the match had no effect.

In discussing H4 another result is interesting to examining - though the result are not figuring in the results (p. 103).

(Figure 5.10, p 107). In the last session (session four) we gave the participants the possibility to choose both a brand and an abstract painting, when given the odour. We did this to test if associative learning could be practiced, not only on brands but in general to other stimuli. In this case the abstract paintings, which original purpose was working as distracters in the conditioning set up was used. The result is interesting, since we can see that the proportions of right answers are the same both in brand only and brand + abstract painting. The average correct answers in brand + abstract paintings is 50,89%, which must be suggested to be a positive evidence

115 concerning the possibility of creating an odour cued recognition. i.e. associative learning.

The matching proportions in the results from brand only + abstract paintings indicates that some odours are having a better effect on memory. Scent C in both cases is ranking the highest in recognition. If looking a Scent C and MAC + abstract paintings we see a result of 78, 57% in the recognition test, which is a very positive result and suggest that scent C is working as a memory for cued recognition and associative learning has been successful.

Given that odour hedonic perception influences memory and recognition, it can be argued that hedonic perception of the abstract paintings are the same. If there are no associations towards the brands, but instead the abstract paintings evoke some emotions and associations. The associations from the abstract painting are instead of the brand transferred to the odour and then recognised when again encountered.

Interestingly, we see from this result that there might be a possibility of enhancing brand recognition via odour cues. Unknown odours by which no associations are connected conditioned with well-known brands have a noteworthy effect on brand recognition.

In sum, past studies and current empirical work provide strong experimental evidence to support the hypothesis that odour hedonic perception and odour-related behaviour result from a learned association between an odour and the emotional context in which the odour was first encountered. Through associative learning it might be possible to create a cued odour hedonic response by forging a link to a brand. Further, it can be argued that the conditioned response between odour and brand needs to be experienced more than once to be a conditioned response. I.e. Brand and odour needs to be experience several times together to cue recognition.

Thus these results, the results from the recognition test, session four, showed that in average 36% of all answers were correct. This results are below the established bar (of 50%) chance for odour-cued brand recognition and therefore it indicates that in this experiment it was not possible to create a link between an unknown odour and a brand via forge controlled associative learning. Therefore we partly refute H4 .

116 Figure 5.10 Combined table of answers matched between brands + scents and brands, abstract paintings + scents.

Figure 5.10a Compared values of answers between brands + scents and brands, abstract paintings + scents.

Validity Validity refers to the extent to which the measurement represents the concept

117 accurately (Saunders, Lewis, and Thornhill, 2009). In order to maximize validity throughout testing odour conditioning, while running the eye-tracking experiment, the following factors were taken into consideration.

Environmental control Since the experiment has been conducted in the artificial controlled laboratory environment, it gave the possibility to control the setting of research and extraneous factors such as lighting conditions or other additional noise.

However, even though laboratory experiment has a higher internal validity, it has a limited external validity (Saunders, Lewis, and Thornhill, 2009) where field experiments can create a higher level of realism as they are conducted in the natural setting.

Referring to the ambient and product scenting consumers as well are highly affected by the social situation and significance of other variables in the decision stage (Percy & Elliott, 2009) as well as retail environment such as other scents may interfere in the retail environment.

Furthermore, pupil dilation measurement is very sensitive, which calls for strict extraneous factors control. Nevertheless, retesting of the main effects of brand on preferences in real-life situations is highly encouraged.

Control of demand effect A “demand effect” reflects the fact that during the experiment procedure, participants may be unintentionally affected by the clues about hypothesis and research objectives. If participants understand the purpose of the experiment, they may bias their answers by responding to the question in what they would consider a right way (Zikmund et al., 2010). In the case of the recognition test, session four, some of the participants recognised the purpose of the study and some other participants had heard from peers what the experiment was about. This potentially could have affected the validity of the results.

Limitations in results The choice of setting can be argued in its correctness since, no other variables are compared to benchmark to what a great result consists of. It can be argued when brand recognition is good and at what stage it is bad. Brand recognition can be

118 difficult to measure especially on a rating scale. Therefore the result can be argued to be a double-edged-sword when analysed.

Discussion The aim of this study was to investigate the possibilities of odour brand ownership and if odours have the ability to enhance brand recognition. The research questions were inspired by neurology relating to olfactory - and location of memory within the brain.

In this part, the theoretical standpoints we found through our research questions will be discussed. This discussion will be examined with the focus on how it could be used from an industrial aspect as well as a theoretical aspect.

Discussion of results One question, which has been discussed throughout the study, is the question concerning the possibilities of Odour brand ownership. The question has been studied upon associative learning theory and fundaments of classical conditioning. The study has been examining the possibilities to create a conditioned response by a learned response to an odour, which previously has been a neutral stimulus.

This matter has in this study been tested in four sessions. The findings of these sessions will be discussed in the following.

Initially, the results show that an odour has a significant effect on the participants’ pupil dilation. This suggests that odours create an emotional reaction in the unconscious level. Knowing that an odour in fact does create an emotional reaction is crucial when it comes to branding on an emotional level. In a sensory marketing matter, scents would to a great extent create brand enhancements.

The fact that stronger emotional reaction has no significant importance on generating a superior recognition was a rather surprisingly finding, since we through literature concluded that a strong emotional reaction created a better chance for brand recognition. Despite of that, the literature also argued how a strong emotional arousal might ruin the consumers’ concentration and thereby the recognition effect tends to be lower. A moderate level of emotional arousal would, according to the literature, create the best recognition effect.

119 Further, the result from the experiment revealed that specific odorants and brands matches are significant when creating brand recognition. The term, hedonic perception, was highly applicable here since the participants tend to be influenced by their likings and the familiarity of the brands when they recognised the odour cued brands.

From the results we see a significant value in using odours as memory cues for brand recognition in a marketing strategy of enhancing brands and its equity. However, this is though still to be definitely confirmed, and therefore a further discussion of this matter will be presented in the following.

Favourable result from odour-cued recognition would be if odour only were able to recall a brand name. This, idea of brand recall by odour only may be a difficult task, since odour and brand need to be conditioned and repeated several times. Besides this, odour is normally caused by one or more volatilized chemical compounds, which make it very difficult to control the right intensity and composition outside a controlled environment.

It can be argued when brand recognition is good and at what stage it is bad. Brand recognition can be difficult to measure especially on a rating scale.

The results is to be understood in the way, that odour only not should be standing alone in brand recognition but be connected to other branding clues like logos, jingles, colours and most of all the brand name.

Discussion of theoretical findings

Industrial aspects Creating consumer preference by the use of specific sensory cues has shown to have a positive effect also when it comes to brand recognition. It is essential for consumers to have special sensory elements connected to the brand in order to recognise it and create favourable preferences. These special elements could be a jingle, a special logo design or a scent.

Brand recognition already begins in the early childhood. Achenreiner et al. (2003) established how children are the most brand conscious generation in today’s society

120 and brand managers must therefore create their targeting strategy based upon that fact. Valjkenberg et al. (2005) argue further how the term brand recall in particular is not applicable for that age group and how marketers should target their marketing strategy by brand recognition and not by creating “top of mind” branding (recall).

When a brand should have an affective recognition effect, emotional bonding between the consumer and the brand are important. Seen from a neurobiological view, scenting is among those sensory cues, which have the closest bond to human emotions. The author, A. Ahuvia (2005), explains how brands can evoke a specific “love” feeling in consumers. Consumers create a subjective desirable identity based on the brands that they “love”. This is an interesting observation seen from a scent marketers’ view, since scent is a clear pathway for creating emotional response from the consumers. The overall aim of teaching consumers to recognise a brand through a scent could be easier to pursue when consumers’ emotions are taking under consideration.

The indication of the entering of a new area of marketing is in many ways a proven fact. The increasing materialistic consumes are leading the way to more lifestyle conscious marketing strategies, where experimental branding is in focus. Here, a brand is no longer just a brand but an integrated story telling of the brand-customer relationship. The odour of the brand might here enhance the storytelling and make the story more vivid and human, which can be recognised in association with the brand.

Using scent as a marketing strategy is as such not a new initiative, but new insights within this field could indicate a novel aspect of scent marketing e.g. a marketing strategy where scent is not only present in the retail environment but follows the consumer all the way home via scent samples in the shopping bag. This could be a great example of new initiatives within scent marketing where experimental branding is in focus.

The increasing use of scent marketing has though shown to create some critical implications and concerns among the publics. The accusations that the use of scent marketing is manipulative are a great issue for many critics. Other believes that scent marketing is the cause of the increasing asthmatic- and allergy reactions.

121 It is not a threat as such for the scent marketing industry that critics are raising their hands with concern. It is more to be seen as a fact that new marketing initiatives often comes with concerns for the consumers well being. A great intention of marketing has always been to create attention in some novel way, and criticism is a popular follower in this matter.

The ROI perspective of scent marketing revealed some interesting findings. In the reflection of this area, it was discovered that ROI on scent marketing was a rather difficult parameter to find. A great proportion of brands that have been using scent marketing are deliberately retaining their information on the ROI because they fear a bad publicity. Even so, it was possible to find examples on brands where the ROI has shown that scent marketing has been a great business success. Further reflections on the issue of measuring ROI led to examining the importance of brand equity. By enhancing the costumer touch point it will create a better attention foundation and greater customer loyalty.

The experimental results, suggest as well that extending the odour branding to outside the retailer is favourable, since odour cues are enhancing brand recognition. The odour cue may maintain the consumer longer and enhance the memory of the brand.

Other important aspect of literature findings that needs attention is the distinction between odour identification and odour recognition. One of the most common and direct means used to measure odour memory, is odour recognition.

In odour recognition test participants are asked whether or not they recognise an odour. The participant is subjected to a certain olfactory-related stimulus and after an interruption period asked to decide if a probe, i.e. brand, - could be the same as the initial stimulus, if this one is the same as the participant initially encountered.

Ways of testing the effect of verbal labelling could include comparisons of odour and odour name and the speed and accuracy of which lexical decision that was used for naming the odour.

We started out questioning if one were given a scent and asked to tell what is smelled of, the favourable answer would be a brand.

122 This can be argued to be brand identification and not odour cued brand recognition. Therefore we suggest that odour is a context dependent memory cued for brand recognition.

Theoretical aspects The theory of this study provided findings in the area of sensory branding, the olfactory system, cognitive neuroscience and neuromarketing.

The theory of sensory branding provided findings that led to an overall aspect of how sensory cues could create recognition and consumer preferences. A big focus was drawn on marketing with the use of visual and auditory cues. These cues are the most tangible sensory marketing cues and therefore frequently used by marketers.

A visual brand logo facilitates an identification of the brand and is therefore valuable for consumer preference. Furthermore a sound logo or a jingle create a more unconscious awareness but involves the consumer in such a level that it is easily recognised. Further noticed is that a combination of both will initially create the strongest consumer preference. Even though these sensory cues have been recognised as some of the most important when it comes to neuromarketing, none of our senses have this direct and immediate direction to our emotions and memories than the olfactory system. This is why we se an increasing turn to the area of scent marketing.

The findings from the theory of the olfactory system provided knowledge in field of how olfaction has been studied in relation to memory and learning. The concepts of semantic and episodic memory were discussed. Together these two memory concepts form the autobiographical system.

The autobiographical system consists of the experiences, events and general knowledge that consumers obtain through life. When combined with olfactory, researchers are able to identify the fact the odour-evoked memories may be different from other memories because they are more emotional attached. This is a crucial fact when connected to brand recognition and consumer preferences.

Consumer preferences can be examined from many perspectives but in this study we focused on consumer behaviour in combination with cognitive neuroscience. The overall findings showed that preference was largely depended on how much value it

123 incurred to the consumers. How this value is expected and later experienced is crucial for how consumers make choices.

Scepticism of neuroscience is inevitable in the modern world of today. The greatest issues are concentrated around the findings from experimental studies and how valid these finding in reality are. The critics blame the researchers for being too narrow in their studies and forget to include some valuable variables. This could be environmental, social or cultural variable, that are almost impossible to include in a laboratory research.

Further research Further research exploring the full range of emotional associations, the situations in which they can be expressed and a detailed analysis of the classical conditioning mechanisms involved in odour-associative learning would be interesting to study further.

Real-life experiment in the shopping environment Bearing in mind the limitation of application in the laboratory experiment, results in the retail environment, real-life experiment using portable eye-tracking device could be further conducted. To study emotional arousal in pupil dilation in retails where scenting is applied is interesting to study and test. However, the drawbacks of the natural setting mentioned in the validation part should be also considered.

One other parameter interesting to research further, is the comparison between emotional response between odour + brand and brand only to see if an odour actually is creating a stronger emotional arousal when combined with a brand than without.

It would further be interesting to test the results in session four in context of a longer time horizon. By testing if odour associative learning has an effect in long-term memory, it would be recommendable to conduct the conditioning test more than once.

Further ROI is interesting to study by developing applicable return on investment measures for scent marketing, which is highly needed and is interesting to research for future studies.

Conclusion Through out this study the following research questions were examined:

124 • Odour cues enhance brand recognition? o Is olfactory a superior sense in brand recognition? o Can the term olfactory brand ownership being applied in branding?

From the theory it is was found that creating consumer preference with specific sensory cues have shown to have crucial effects when it comes to brand recognition and brand recall. It was discovered that the sense smell is the only one of all our senses that has a direct connection to our emotions. Knowing that, emotional branding with the use of scent cues, would have effective results when it comes to brand recognition.

The theory further determined that, that congruity between the brand and the scent has to be present in order to create consumer preference and brand recognition. Further, it was stated that the way in which consumers perceive the odours was hedonically determined and this might affect consumer preferences and brand recognition.

From the theory it was found that creating an emotional bond between the consumers and the brand is crucial when enhancing brand recognition. The fact that odours have the highest affection on emotions compared to other sensory cues, is determining information when marketers are to consider a strategy for enhancing brand recognition.

From the theory of sensory branding it was found that a sound logo would initially create most valuable brand recognition if the sound logo had a long-term existence and through continuously repetition provide the listener with instant recognition. This was found also to be applicable with scents if looking at the results of the experiment.

The results from the experiment revealed some interesting findings. Initially, it was found that the participant’s pupil dilation showed a significant emotional reaction when presented with a scent. This is in consistency with the fact from theory that an odour cued brand enhancement creates emotional arousal.

Furthermore, the results showed that a stronger emotional reaction towards a scent in fact did not have a significant importance in generating a superior recognition of the brands.

125 It was also found that the participants hedonic perceptions influence the ability to recognise brands via an odour depending on how familiar or pleasant the odour is to the individual or how great sense the combination of scent and brand made.

Finally, it was found that a possibility of enhancing brand recognition via odours could occur, but not without a further discussion of this matter. The findings showed that it could be argued if the conditioned response between an odour and a brand need to be experienced more continuously through repetition to create a conditioned response with a higher probability for brand recognition.

Therefore we highly recommend, further research on this specific area.

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Other readings WWW.BUSINESSWEEK.COM, http://www.businessweek.com/magazine/content/10_26/b4184085987358.htm#p2. WWW.FRAGRANCEX.COM, , http://www.fragrancex.com/fragrance- information/chronology-of-perfume-scents.aspx. WWW.MYCOZYNOOK.COM, , http://mycozynook.com/102RGCh28OH.htm. WWW.PRWEB.COM, , http://www.prweb.com/releases/2011/2/prweb8151118.htm.

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Appendix Appendix 1Brand logos used in eye-tracking and recognition test

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Appendix 2 Abstract paintings used in eye-tracker and recognition test

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Appendix 3 Free association test from session one

Scent ID Scent associations

Positiv duft, natur, mos, feminin, Lavendel, calm, dejlig, sommer, blomster spring, fresh, Toiletrens, gras, gran Positiv, rengøringsmiddel, Cloren Rengøringsmiddel god, natur, sæbe, badeartikler, clean (parfumen) Tommy Hilfiger. I en forretning Krydderurter, Maskuline/ Gammel dame, Persille, Citron, Gå tur i skoven Parfumerri parfume afdeling, tung skov, vinter Sæbe ældre damer, shampoo, hair freshenersVandmelon, frugtlund Sommer Frisk, sommerlig og varm gras, sommer, sæbe Gras, sommer, forår, ligge på tæppe på græsset citrus frugt, kiwi, sommer, lyse farver Sommer Rugula salat, græs, ikke så god Sommer forår, urter, friske nordiske urter, syren, tang, hav lavendel, tung Grand sprittet, wood, finish A støvet, gammelt, tungt, maskulin frisk, marker, sommer frisk, gul, badeværelse roser, sommer, sol good, plant, environment, flowershop, retal store for furniture, nature surroundings frugt, forår, lyst, hygge skov, regn i skoven, jord Rose, Hypenroser forrest, nature, pure, fall Deodorant frisk, god parfume, egne parfume, sød Mande parfume søde sager, slik flowers, sweet Soap store, good fragrance Interesting, female perfume, evening, nice Skov, bær Æble, æblekage frugt, æbler, gras banan, sødlig, overmoden banan, genkendelig Provence i frankrig ingen ssociation sæbe, duftpinde slik, pebermynte perstiller, orientalsk, indisk, intensiv, tung, beroligende.mande deo Bedstefar parfume dårlig lugt tea tree oil, green tea

Vanilie, citrus, juleduft, unisex, sharp, blend of smels, not pleassant, special strong smell, highligth the grass smell slik, kraftig, lidt for meget Parfume, grasset blomst God duft, sæbe duft i hjemmet med pinde i, herre parfume kraftig Parfumerri den samme som FG, lidt lettere og midre frvirrende harpiks, bark, træer skov ældre dame, har for meget parfume på, ikke så god Bedstemor mormor, blomster, Slik i mange farver, sukker, kunstig duft Søster, familie Skarp, svær at bedømme vaskepulver, renhed Ædre parfume lyserød, dukke. Piget Gras God hår shampoo Ingen association græs, ukrudt, bothanisk have, maskulin, blomster, koncentreret rengøringsmiddel, hård, ikke rar Blomstereng sæbe, shampoo, B tung, rengøring, hospital, syntetisk parfume, god, frisk, sommer, godt vejr medicin, gang, spids gran, moss, skov plant, same as fresh grass, like when rub rass træ, eg birk, maling træbeskyttelse, gran, juletræ, god, dame, sæd, frisk. Butiksduft, sommergul spring, natural, gras flowers græs, ukrudt, stærkt, barsk, hård, ikke behagelig, Græs træ, græs, moss Hotel bathroom Flowers, summer, honey Grand, skov, Farmor Klinisk, medicin, frugt agtig Blomster, pollen, sprittet, sød parfume sæbe, ferie, asien, duftlys og sæbe hos mormor Droning Møllestrand duftepinde, under a fig tree herreparfume blomster, parfume sommer, ferie, god, bekendt, Ingen association Cacharei parfume

Sensuel, Parfumen Opium,aften duft, dufter godt, Kokos sød, frisk, ungdommelig Vanilie, slik, sødt Slik, unge parfumer, gymnasie tid frisk citrus, lyserød, kombi af fresh grass og fig, kølig brise Dufter dejligt Mata butik, parfume butik Ingen association varmt, mild, træ/hø, gammelmand, skov, jæger Sprit, billig, axe, aftershave, mand mand, stærk Dårlig barbersprit, herre sensommer, lidt tung, feminin sød, sommer, blomster sød, matas, lyst blomster, sommer, sol sweet, good, elegant night with wine, nice dress parfume, matas, magasin, illum, Æstetik, Gucci, Burbury godt, C ren, simpel, spa Alure, Mand i bar overkrop, lækker feminin, light, sophisticated Perfume shop, volouspa, ebony Æble, supermarket, rengøring showergel, ajax Rengøringsmiddel, billig dame parfume no associations Sweet, femal parfume Parfume butikker, søde duft Parfume, sommer Hav, salt, bølge, kunstig, sød, slik, blomster,frugt Kokos parfume Baresso parfume, god men forbinder den ikke med noget my little pony, solnedgang,daggry Grand, skov, skarp duft svag, showergel, rengøringsmidel No associations

138 Maskulin duft, skarp, sharp, fresh, common, deodorant, everyday strong, alcohol, strong perfume, fresh negativ, meget kratig, herre parfume Magasin perfume afdeling, Jul Kryderier slik m kemiklier, kraftig i farve og smag, kemisk produkter, skarp En bil, Springlervæske, Tyggegummi Herre omklædningsrum rigtig gammel parfume, en der er blevet for gammel, Chanel red door parfume, blomster sommer, fest Parfume, Britney, sødt, go duft sæbe, gammel, rengøring, intention om at være god, Frisk, skov, viskelædder Farfar Mandig, gammel mand, sød og kvalm Sæbe, herre parfume, Ungdoms Parfume, Håndsæbe på hoteller Herre, lille lukket rum, mørke faver, farmor Dolce Gabbana Dampbad i en svømmehal, god duft, var duft Hotel træ, mørkt træ, nye lækre møbler, frisk luft, kvindeligt dejlig D parfume, fest Salve ung, rar, parfyme, sød, klassisk god, blomster, parfume afd. Bred duft, passer til megetkraftig, maskulin, syntetisk, rengøringsmiddel skarp, mand, rengøring gras, mormor, grøn skov, moss, gran dont like it, too sharp, grandmother, old people dårlig, aftershave, mænd, herreduft, forkølelse, mynthe Tigerbalsam, sport, skade, opvarming, thai temple masculin, dad Earth, natural, wealt living farmors gamle parfume, gran Dårlig duft, toiletrens pebbermynte the, neliker, noassociationsStrong cheap perfumes Male perfume, basic, powerful scent Mande parfume, aftershave Tiger balsam krydderier, stærk, dyftlys, musk, mand, røgelsespinde, mandeparfume Pikant duft fra en pardume prøve Oriantals mand spa, wellness rengøringsmidler græs, frisk, sommerbrise, hov Græs, grøn område, forår badeværelse, bodylotion, citrus, remn syntetisk gras,

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Appendix 4 – Sample from master control sheet – recognition test

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