Neuropsychological Mechanisms in K-Pop Consumer Engagement: A

Tripartite Analysis of Scarcity Tactics, Random Reward and Cultural

Mixture

Yixian Li

New Channel, Shenzhen, 518000, China

Keywords: Neuropsychological Mechanisms, K-Pop, Consumer Engagement, Cultural Mixture.

Abstract: Head K-pop groups like BTS and BLACKPINK have successfully reconstructed consumers' psychological

decision-making chain through phased album releases, random photocard strategy, and cultural hybrid

marketing, but their long-term sustainability and ethical controversies urgently need systematic research. Since

its rise in the 1990s, the K-pop industry has become one of the pillars of the South Korean economy. Yet, the

market is currently facing issues like growing homogenized competition and an excessive reliance on the fan

economy. The rebuilding mechanisms of K-pop's three main marketing techniques are the main topic of this

study. Staged scarcity design, like the three-phase release of BLACKPINK's albums, creates an anxiety

premium through dynamic supply control, which triggers the prefrontal cortex's (DLPFC) anticipated deficit

effect. The Girls' Generation randomised photocard is an example of a random award mechanism that uses

uncertainty cues to create recurrent interest in the album by triggering dopamine release in the nucleus

accumbens (NAc) commissure. K-pop marketing reconstructs consumer psychology through the ‘anxiety-

reward-empathy’ neural link, but its sustainability relies on the use of AI.

1 INTRODUCTION

Trot music, or "K-pop," as it is referred to outside of

Korea, is a type of music that has its roots in pop

music. After music Soman Lee established his

company SM Entertainment, the music presently

known as K-pop gained popularity in the 2000s

(Bland, 2019). Thanks to its industrialized star-

making system and globalization plan, K-pop has

quickly transformed from a local music genre to a

worldwide cultural phenomenon since Korea's

economic boom in the 1990s. However, the K-pop

industry faces a number of difficulties as market

competition heats up and consumers' psychological

tolerance rises. One of these is homogenized

competition, where a lot of idol groups copy the

headline strategy, which results in market saturation

and erodes the advantages of differentiation.

Concerns about the cultural discounting effect may

also exist. Linguistic grafting and symbolic fusion are

necessary to lessen cognitive conflicts because non-

English content is less accepted in the European and

https://orcid.org/0009-0007-4806-5654

American markets. High-intensity hungry marketing

and stochastic reward systems have been

characterized as "exploitative tactics," which has

resulted in fan fatigue and a crisis of confidence.

Ethical controversy is another significant element.

In light of this, how does K-pop use the technique of

consumer psychological reconstruction to sustain its

competitiveness on a worldwide scale? There are

theoretical and practical implications to this study.

At the theoretical level, this means dismantling the

conventional marketing framework, combining the

theories of consumer science, behavioral psychology,

and neuroeconomics, and exposing the mutually

beneficial mechanism of "phased scarcity," "random

reward," and "cultural mixture" tactics. Practically

speaking, by examining the successful HYBE and

SM cases—like BTS's US entry strategy—a

foundation for ethical transformation decision-

making can be established, including transparent

explosion rate and consumer cooling-off period, and

the industry's sustainable growth can be encouraged.

The following central questions are the subject of this

310

Li, Y.

Neuropsychological Mechanisms in K-Pop Consumer Engagement: A Tripartite Analysis of Scarcity Tactics, Random Reward and Cultural Mixture.

DOI: 10.5220/0013843200004719

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 310-314

ISBN: 978-989-758-775-7

investigation. Initially, the connection between

phased shortage design and the activation of the

prefrontal cortex (DLPFC) to generate an anxiety

premium. How the nucleus accumbens (NAc)

dopamine cycle is used in a random incentives

technique to increase repurchase rates. Second,

language grafting, such as how symbolic fusion and a

67% English lyrics share in the BTS lessen cultural

discounting and trigger Temporal Parietal Junction

(TPJ) empathic reactions. Finally, balancing

neurostimulation intensity with ethical risk. How

technology enablement extends the consumption

lifecycle.

2 THE CASE OF K-POP'S

MARKETING STRATEGY IN

KOREA

2.1 Albums Released in Batches

Recently, BLACKPINK has implemented a phased

album release strategy. For instance, their most recent

album, BORN PINK, was released in three stages:

digital, physical, and vinyl. The digital single was

released first, followed by the physical album two

weeks later, and then a limited edition vinyl with a

VR concert code. This dynamic scarcity causes

anxiety in the consumer. This tactic exploits fans'

desire for "limited edition" exclusivity, leaves a void

in social discourse between phases, builds fans'

excitement for the next content phase, and activates

the brain's loss aversion response and anticipation

violation effect in the DLPFC, all of which increase

customers' willingness to pay. The prefrontal area has

expanded in size in comparison to the remainder of

the cortex over evolution. Its greatest extent is

found in the human brain, where it makes up 30% of

the entire cortical area. Phylogenetic differentiation

of cortical regions coincided with this expansion

(Carlén, 2017). Sales of BLACKPINLK's physical

albums increased significantly as a result of this

technique, with the vinyl version selling for 37 times

more on the secondary market than the digital version.

2.2 Random Photocard Revolution

In 2007, Soan Lee, the founder of SM Entertainment,

introduced the random photocard technique, which

was initially featured in Girls' Generation's album

"Into the New World." By embedding the photocards

of various members, Lee stimulated consumers'

desire to collect, so creating a new model of K-pop

fan economy. This tactic reorganized the

psychological chain of customer decision-making in

addition to altering the logic of music sales. The

method creates a full loop of "consumption -

socialization - investment" by using secondary

market prices, like as the 37-fold premium for NCT's

rare cards, together with customers' deep

psychological requirements for scarcity and the urge

to collect. In order to create emotional connections

and transform consuming behavior into emotional

involvement, random photocards, such as autographs

and portraits, are created just for members. The

introduction of fan-made and other self-printed

photocards simultaneously satisfies the desire for

personalization and transforms the photocard into a

medium for expressing emotions. Album sales for

SM Entertainment increased significantly as a result

of this tactic. Soman Lee's random photocard

technique effectively uses the triple process of brain

reward, social fission, and emotional projection to

convert consumer behavior into psychological

reliance.

2.3 BTS's Market Strategy

By increasing the percentage of English lyrics and

fusing American and European pop components, such

disco and hip-hop, BTS's approach for breaking into

the U.S. is based on cultural grafting, which

strengthens the cultural identities of the American and

European markets. By entering the European and

American markets, BTS dismantles the "cultural

discount" of conventional K-pop, as evidenced by the

usage of only English lyrics in "Dynamite." With

songs like "Dynamite" that have full English lyrics,

BTS breaks through the "cultural discount" of

traditional K-pop by penetrating the European and

American markets. The tactic appeals to Generation

Z's desire for multicultural fusion, incorporates

American pop music, causes the TPJ of European and

American consumers to react sympathetically, and

increases the cultural identities of both groups.

According to neuroimaging research, the TPJ is

implicated in a variety of behaviors and processes,

ranging from bottom-up perception to cognitive

capacities that are specific to humans (Igelström &

Graziano, 2017). Through social media engagements

on Weverse, Twitter, and other platforms, BTS

creates a global fan community that strengthens the

feeling of fan belonging. The psychological chain

of customers from impulsive purchase to identity

identification through cultural empathy is

Neuropsychological Mechanisms in K-Pop Consumer Engagement: A Tripartite Analysis of Scarcity Tactics, Random Reward and Cultural

Mixture

311

reconstructed by BTS's technique of showcasing their

beauty.

3 ANALYSIS OF K-POP'S

MARKETING STRATEGY

3.1 Anxiety Manufacturing System

A huge fan base and strong brand awareness are

BLACKPINK's main advantages as a top-tier female

group in the world. It can successfully capitalize on

fans' loyalty and desire to collect by using a phased

release plan, such as "BORN PINK," which goes

from digital to tangible and ultimately to vinyl.

Customers are more willing to pay more for "instant

gratification" when limited editions and exclusive

content create a sense of scarcity because this triggers

the anticipatory deficit effect in the DLPFC.

Emotional, social, motivational, perceptual, and other

functions are complicated in this area of the brain.

The frontal area of the brain is crucial for cognition,

according to research on both humans and animals

(Carlén et al., 2017). The high intensity of the

marketing may wear fans out and increase dopamine

tolerance, which would lower their motivation to

consume later and weaken the strategy's effectiveness

even though the phased strategy greatly increased

sales—for example, Kill This Love's first-day sales

exceeded one million. One kind of catecholamine

neurotransmitter is dopamine, which is produced by a

group of dopamine cells that extend from the

midbrain's head to a number of forebrain regions

(Wise & Rompre, 1989). As a result, BLACKPINK

can employ a phased approach to adjust to the cultural

sensitivities of various regional markets. For example,

Asia tends to feel a feeling of community, but Europe

and the US demand scarcity like limited-edition vinyl.

However, some fans have started "anti-hunger

marketing" campaigns to advocate for sensible

consumption, while Generation Z has grown more

conscious of "anxiety marketing." The group may

experience a crisis of trust if the strategy's intensity

spirals out of control.

3.2 The Dopamine Trap of

Randomized Photocards

Randomized photocards boost repurchase rates by

triggering dopamine release in the NAc through VR

Schedule. Along with other reward-related brain

areas, the nucleus accumbens also contributes to

emotional processing, mainly in relation to the

neurotransmitter dopamine (Shaw & Bagozzi, 2018).

According to neuroeconomics research, when rare

card pops are less than 5%, dopamine levels increase

by 2.4 times, greatly intensifying the need to buy.

Through social media card exchange and display,

fans create an ecosystem of user-generated content

(UGC) that enhances social currency and a sense of

community. On the other hand, worried tiredness may

result from frequent purchasing. According to

studies, after 4.2 purchases annually, fans'

willingness to buy drastically declines, which could

result in consumer fatigue. Depolarization and

inactivation are the results of overstimulating the

dopamine system (Grace & Bunney, 1986).

Unreported inventory information and opaque burst

rates, which are criticized as "addictive marketing,"

may cause customers to doubt the strategy's

impartiality. Therefore, in order to draw in Gen Z

customers, Korean entertainment firms can transform

the physical photocard into an NFT digital asset and

improve immersion through virtual unboxing and

augmented reality interaction. Or they can create AR

photocards that scan and trigger holographic

performances by the members to enhance the

freshness of interaction. However, the younger

generation is now more alert to "addictive

marketing", and some fans have launched an "anti-

random photocard" campaign, calling for

transparency in the disclosure of popping rates.

3.3 Culture Grafting Strategy

By increasing the percentage of English lyrics from

18% in 2015 to 67% in 2020 and incorporating

elements of American and European music, like disco

and hip-hop, BTS has reduced cultural discounts and

triggered sympathetic reactions from both European

and American consumers. This has increased their

market recognition in both countries. Even prior to

their debut, BTS used Twitter as a means of

communication with their followers and as a platform

for supporters to follow them directly and feel more

connected (Seppälä, 2022). Due of its worldwide

availability and usage, it is one of their primary

channels for fan communication, particularly with

their global fan base (Seppälä et al., 2022). However,

too much Europeanization may cause core followers

to become disenfranchised, which could cause them

to feel culturally alienated and cause sales in the

Asian market to drop. Intense content production is

necessary to strike a balance between localization and

globalization, and members have publicly

acknowledged psychological pressure as a result.

SUGA, a member, acknowledged in an interview that

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"the pressure to balance multiculturalism is much

higher than expected." By using the social proof

effect, BTS may draw in multicultural audiences by

utilizing social media influence. For example, they

could publish a cover dance challenge on Tiktok. The

abuse of cultural symbols in the music video like the

Indian headdress incident, is the biggest threat to BTS

since it could influence public opinion negatively and

lead to a cultural appropriation problem.

4 SUGGESTIONS FOR K-POP'S

MARKETING STRATEGY

4.1 Optimization of the Fan Economy

Model

Blockchain technology allows for dynamic

adjustments to the random award mechanism, such as

automatically reducing the rare card burst rate when

sales volume surpasses 80%. This preserves the

dopamine system's sensitivity and prevents customer

resistance brought on by repeated stimulation. For

instance, NFT technology is introduced by SM

Entertainment's "Kwangya Market" platform in order

to prolong the consumer life cycle. The items are

separated into three categories, basic edition (70%)

autographed edition (25%), and NFT co-branded

edition (5%). These categories, respectively, appeal

to the speculative mindset of investors, the collector's

desire of regular consumers, and the core fan's

demand for exclusivity. It also links the fan economy

to principles, like BLACKPINK's environmental-

themed album, which has increased sales, and

integrates social issues, such mental health and

environmental conservation. To lessen the

unfavorable impression of "cutting leeks,"

transparency measures can also be put in place, such

as the public burst rate and production costs. JYP's

habit of revealing the cost transparency of its albums

in order to enhance its reputation can be mentioned.

AI and big data analytics, like Social Listening tools,

can also be used to dynamically modify product

design and record user preferences in real-time social

media conversations. To accommodate fans' musical

preferences and lessen cultural discounts, HYBE's

"Culture AI" system, for instance, evaluates Spotify's

regional data to optimize the ratio of musical

elements.

4.2 Strengthening Emotional

Connection

Converting consuming behaviors into identity

symbols involves arousing customers' emotional

connection with information like documentaries and

members' growth diaries. Fans' sympathetic reactions

to BTS's "Burn the Stage" documentary, which

featured members' stage fright and training injuries,

showed that emotional storytelling can boost

repurchase rates. Fans are willing to pay for the

emotional worth of the documentary since its

narrative components provide an emotional

experience (Kleres, 2010). As an alternative, they can

subvert consumer behavior into a statement of

principles by linking album purchases to public

service projects, such supporting environmental

organizations with $1 for each album sold. Many new

environmentally conscious fans have been drawn to

BLACKPINK's albums through their partnership

with the UN on the Sustainable Development Goals

(SDGs) series. In order to improve the emotional

bond between fans and their heroes, plan offline fan

events like roadshows and flash mobs. Additionally,

SM Entertainment's "EXO-L Tree" tree planting

project turns consumption into social capital through

fan action, which increases participant brand loyalty.

To evoke a sense of cultural pride, highly emotive

cultural symbols can also be included into visual and

aural components, as in the case of the hanok and

traditional drums in the music video for BTS's

"IDOL." According to neuroimaging, these symbols

triggered sympathetic reactions in the TPJ, which

raised fans' interest in Korean culture abroad.

4.3 Cultural Mixing Strategy

Pop music draws heavily from Latin, hip-hop, and

European and American pop styles, although its

foundation is traditional Korean melodies. Korean

entertainment firms can create regionalized divisions

for various markets. For example, NCT's Southeast

Asian division uses global pop and Indonesian

gamelan music elements, two local cultural symbols,

to activate consumers' sense of cultural identity and

belonging and lessen cognitive conflicts caused by

cultural grafting. Western graffiti contrasts with K-

pop music videos, which frequently incorporate both

Eastern and Western cultural icons. For example,

BTS's "IDOL" features traditional drums and hanok.

Cultural exchanges and linkages have been facilitated

by multiculturalism (Gomarasca, 2013). Due to the

increased variety of the market, several businesses are

Neuropsychological Mechanisms in K-Pop Consumer Engagement: A Tripartite Analysis of Scarcity Tactics, Random Reward and Cultural

Mixture

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using tailored marketing to reach ethnic customer

groups (Cui & Choudhury, 2002). The number of

people watching music videos has significantly

increased as a result of these designs. According to

research, cultural grafting triggers sympathetic

reactions in the TPJ. Social cognition is influenced by

both TPJ activation and network engagement

(Igelström et al., 2017).

5 CONCLUSION

This study uses neuroeconomics experiments, big

data analysis, and case comparison to methodically

examine the process of K-pop's reconstruction of

consumer psychology based on scarcity tactics,

random reward, and culture hybridization strategies.

By engaging the prefrontal cortex (DLPFC), a phased

scarcity approach, like BLACKPINK's three-phase

release, for instance, produces an anxiety premium

and raises the repurchase rate. The repurchase rate is

similarly increased by random small-card strategies

like Girls' Generation, which use the dopamine cycle

in the nucleus accumbens (NAc). Additionally, the

increased percentage of English lyrics in BTS causes

an empathic response in the temporo-parietal junction

(TPJ) of the European and American markets, which

increases their cultural identity. In order to uncover

the neurological coding principles governing

consumer behavior in the entertainment sector, this

study combines neuroeconomics with cultural studies.

While small and medium-sized businesses must

concentrate on vertical industries, like Southeast

Asian dialect music, headline groups might lessen

cultural tensions by using regional teaming methods,

like NCT. In order to strike a balance between social

responsibility and commercial efficiency,

transparency measures like the release of pop rates

should be put in place. NFT technology and the meta-

universe can prolong the consumer life cycle.

However, the findings of this study are limited in their

generalizability because it mostly focuses on the

cases of well-known groups like BTS and

BLACKPINK, and it does not yet sufficiently

incorporate the localization tactics of small and

medium-sized agencies like STAYC and ATEEZ.

Non-Latin-speaking areas, such as the Arab world,

are not included in this study, and more research is

required to confirm regional variations in cultural

reactions. The chaebol capital structure and other

government policies that promote the Korean

entertainment sector, such the cultural national plan,

may also increase the strategy's efficacy, which is

hard to duplicate in other areas. In the future, this

study can compare the mixing techniques of J-Pop

and C-Pop and further analyze cultural mixing

mechanisms in rising areas like the Middle East and

Africa. This will help to improve the common

patterns of the pan-Asian entertainment sector.

Additionally, evaluating how cultural blending

affects local cultural identity over the long run, for

example, how Korean teens' interest in traditional

music has changed, is a worthwhile line of inquiry.

In essence, K-pop uses a complex fusion of "neural

programming" and "cultural computation" to

reconstruct the consumer's psychology. Although the

combinatorial benefits of dopamine stimulation,

anxiety production, and empathic response are

necessary for its success, over-commercialization

may result in psychological exhaustion and societal

hollowing out. To provide an example for the

sustainable export of cultural goods from around the

world, it will be vital to strike a balance in the future

between ethical responsibility and technological

innovation.

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