How the Brain Responds to Prices: Scientists Discover Neural Marker for Price Perception
Russian scientists have discovered how the brain makes purchasing decisions. Using electroencephalography (EEG) and magnetoencephalography (MEG), researchers found that the brain responds almost instantly when a product's price deviates from expectations. This response engages brain regions involved in evaluating rewards and learning from past decisions. Thus, perceiving a product's value is not merely a conscious choice but also a function of automatic cognitive mechanisms. The results have been published in Frontiers in Human Neuroscience.
Every day, people are faced with prices of food, technology, and services. Sometimes, a product seems overpriced, while other times, it appears suspiciously cheap. Do consumers consciously judge prices, or does the brain do it automatically? Researchers from HSE University and Neurotrend, a Russian neuromarketing company, set out to investigate how the brain responds to unexpected prices.
Participants in the experiment were shown images of mobile phones (iPhone, Nokia, Xiaomi), followed by their hypothetical prices. The prices could be above, below, or matching the actual market value of the products. Afterward, the target word 'expensive' or 'cheap' appeared on the screen, and participants had to determine whether the word matched the given price. Throughout the experiment, the researchers recorded participants' brain activity using EEG and MEG, methods that track changes in brain neuron activity. A total of 65 individuals participated in the study.
The findings reveal that perceiving prices significantly different from the actual market value triggered a strong N400 signal, an electrical impulse in the brain typically generated when confronted with unexpected information. Notably, prices perceived as excessively high triggered a stronger response than those seen as too low. The scientists explain this by suggesting that implausibly high discounts may be perceived with scepticism. Additionally, it appears that the brain's response can vary depending on the product's brand. For the Xiaomi mobile phone, the price range that triggered a strong N400 response was found to be broader. This may suggest that people did not have a clear enough understanding of the real market value of this product.
Andrew Kislov
'Back when I was in my bachelor's programme at HSE University, I wondered whether it was possible to determine from brain activity what price a person considers acceptable. Our experiments have confirmed that it is indeed possible,’ comments Andrew Kislov, doctoral student at the HSE Faculty of Social Sciences and co-author of the study. 'Globally, we are working to develop an objective method for assessing customer preferences. To what extent, in doing so, do we have the right to invade a person's inner world? This is a good question, but in this project, we simply aimed to determine the maximum price that would be comfortable for people, and this method does not pose any real threat to customers.'
To identify which regions of the brain respond to prices, the researchers analysed MEG data. They found that when perceiving 'non-optimal' prices, the frontal cortex and anterior cingulate gyrus—regions responsible for decision-making and assessing rewards—were activated.
Vasily Klucharev
'The results demonstrate that when the price does not meet expectations, the brain responds almost instantly. Moreover, the response is linked to brain regions involved in assessing rewards and learning from past decisions. This means that the perception of a product's value is part of automatic cognitive mechanisms that are activated long before an individual consciously makes a decision,' explains the chief researcher Vasily Klucharev, Head of the International Laboratory of Social Neurobiology.
The study also provides marketers with new tools: instead of relying solely on surveys, they can gain insight into consumers' perception of prices at the neurocognitive level.
Anna Shestakova
'Marketers are increasingly saying that conventional consumer surveys don't provide a complete picture, as people cannot always explain why a certain price seems too high or too low to them. People often say what they think is expected of them. Therefore, we conducted this study in collaboration with a leading neuromarketing company, Neurotrend, and discovered that it is possible to examine an individual's brain and determine whether a specific product price meets their expectations. This approach can help predict how people will perceive the price of a new product even before it is released to the market,' explains the chief researcher Anna Shestakova, Director of the HSE Institute for Cognitive Neuroscience.
See also:
Similar Comprehension, Different Reading: How Native Language Affects Reading in English as a Second Language
Researchers from the MECO international project, including experts from the HSE Centre for Language and Brain, have developed a tool for analysing data on English text reading by native speakers of more than 19 languages. In a large-scale experiment involving over 1,200 people, researchers recorded participants’ eye movements as they silently read the same English texts and then assessed their level of comprehension. The results showed that even when comprehension levels were the same, the reading process—such as gaze fixations, rereading, and word skipping—varied depending on the reader's native language and their English proficiency. The study has been published in Studies in Second Language Acquisition.
Mortgage and Demography: HSE Scientists Reveal How Mortgage Debt Shapes Family Priorities
Having a mortgage increases the likelihood that a Russian family will plan to have a child within the next three years by 39 percentage points. This is the conclusion of a study by Prof. Elena Vakulenko and doctoral student Rufina Evgrafova from the HSE Faculty of Economic Sciences. The authors emphasise that this effect is most pronounced among women, people under 36, and those without children. The study findings have been published in Voprosy Ekonomiki.
Scientists Discover How Correlated Disorder Boosts Superconductivity
Superconductivity is a unique state of matter in which electric current flows without any energy loss. In materials with defects, it typically emerges at very low temperatures and develops in several stages. An international team of scientists, including physicists from HSE MIEM, has demonstrated that when defects within a material are arranged in a specific pattern rather than randomly, superconductivity can occur at a higher temperature and extend throughout the entire material. This discovery could help develop superconductors that operate without the need for extreme cooling. The study has been published in Physical Review B.
Scientists Develop New Method to Detect Motor Disorders Using 3D Objects
Researchers at HSE University have developed a new methodological approach to studying motor planning and execution. By using 3D-printed objects and an infrared tracking system, they demonstrated that the brain initiates the planning process even before movement begins. This approach may eventually aid in the assessment and treatment of patients with neurodegenerative diseases such as Parkinson’s. The paper has been published in Frontiers in Human Neuroscience.
Civic Identity Helps Russians Maintain Mental Health During Sanctions
Researchers at HSE University have found that identifying with one’s country can support psychological coping during difficult times, particularly when individuals reframe the situation or draw on spiritual and cultural values. Reframing in particular can help alleviate symptoms of depression. The study has been published in Journal of Community Psychology.
Scientists Clarify How the Brain Memorises and Recalls Information
An international team, including scientists from HSE University, has demonstrated for the first time that the anterior and posterior portions of the human hippocampus have distinct roles in associative memory. Using stereo-EEG recordings, the researchers found that the rostral (anterior) portion of the human hippocampus is activated during encoding and object recognition, while the caudal (posterior) portion is involved in associative recall, restoring connections between the object and its context. These findings contribute to our understanding of the structure of human memory and may inform clinical practice. A paper with the study findings has been published in Frontiers in Human Neuroscience.
Researchers Examine Student Care Culture in Small Russian Universities
Researchers from the HSE Institute of Education conducted a sociological study at four small, non-selective universities and revealed, based on 135 interviews, the dual nature of student care at such institutions: a combination of genuine support with continuous supervision, reminiscent of parental care. This study offers the first in-depth look at how formal and informal student care practices are intertwined in the post-Soviet educational context. The study has been published in the British Journal of Sociology of Education.
AI Can Predict Student Academic Performance Based on Social Media Subscriptions
A team of Russian researchers, including scientists from HSE University, used AI to analyse 4,500 students’ subscriptions to VK social media communities. The study found that algorithms can accurately identify both high-performing students and those struggling with their studies. The paper has been published in IEEE Access.
HSE Scientists: Social Cues in News Interfaces Build Online Trust
Researchers from the HSE Laboratory for Cognitive Psychology of Digital Interface Users have discovered how social cues in the design of news websites—such as reader comments, the number of reposts, or the author’s name—can help build user trust. An experiment with 137 volunteers showed that such interface elements make a website appear more trustworthy and persuasive to users, with the strongest cue being links to the media’s social networks. The study's findings have been published in Human-Computer Interaction.
Immune System Error: How Antibodies in Multiple Sclerosis Mistake Their Targets
Researchers at HSE University and the Institute of Bioorganic Chemistry of the Russian Academy of Sciences (IBCh RAS) have studied how the immune system functions in multiple sclerosis (MS), a disease in which the body's own antibodies attack its nerve fibres. By comparing blood samples from MS patients and healthy individuals, scientists have discovered that the immune system in MS patients can mistake viral proteins for those of nerve cells. Several key proteins have also been identified that could serve as new biomarkers for the disease and aid in its diagnosis. The study has been published in Frontiers in Immunology. The research was conducted with support from the Russian Science Foundation.