Biological context and psychology

The ability to make meaningful and positive decisions, not necessarily in an economic context but also in relation to the realities of life in society, is closely linked to biology, specifically the work of the human brain. The decision-making process is closely related to the proper and coordinated work of the various parts of the brain and the neurotransmitters present in the human body, such as dopamine, serotonin, cortisol, oxytocin and prolactin. Serotonin deficiency contributes to reduced self-control abilities. By controlling the flow of electromagnetic impulses between neurons, neurotransmitters mobilize the brain to take action. Researchers to take a meticulous look at the complexity of the decision-making process used the available tools of medical science and discovered through one of the fNMR functional neuroimaging methods why tracking this process can yield surprising research conclusions.

Measurement techniques for identifying which parts of the brain are active in decision-making are:
- EEG - electroencephalogram
- PET positron emission tomography
- functional magnetic resonance imaging (fMRI)

The decision-making process itself can be divided into three main phases, of which in the first phase the decision-maker just defines the problem and gathers the necessary information to solve it, so that in the next phase the decision-maker extracts the best options possible to him and makes a choice. The last phase of the decision-making process closes with the proper evaluation and valuation of the very decision-making process of which the decision-maker was the creator.

Research conducted in 1985 uncovered a phenomenon in the understanding of how humans act that challenged to some extent the belief in human rationality. It turned out that the decision was made faster from the realization of making the choice to perform a certain action. In other words, the changes in the brain which were defined by the term readiness potential took precedence over the mere awareness of performing the action of moving the body. This began the search by researchers associated with neuroscience, neurochemistry, economics and other scientific disciplines for an answer to the question of what the decision-making process is basically based on.

Biology knows well that a prerequisite for decision-making is good communication between different parts of the brain with a concomitant adequate concentration of the level of serotonin produced.

Researcher H.A. Simon came out to the scientific community with the concept of bounded rationality in which each person makes an optimal choice, takes this into account to the conditions of the external environment, equipped with a limited body of knowledge and individual capacity to process information. To top it all off, in situations where there is stress, emotional uncertainty, high risk, these decisions deviate even further from being guided by economic rationale. Therefore, situations of conflict or in high arousal are often not rational, regardless of the decision-maker's knowledge and other conditions. In a study by psychologists and Nobel laureates in economics A. Tversky and D. Kahneman in their conception of the theory of decision-making, noteworthy is the so-called ''framing effect,'' that is, the phenomenon where what words are used to present a problem or in what context, the different cognitive representations of that problem depend on it. The framing effect has a significant impact on the decision-making process and every person is susceptible to it. A person is incapable of rational behavior while being permanently influenced by his own beliefs and perceptual distortions. This also applies to people who use statistic methods in the scientific environment.

The condition of the brain as well as the overall health of the body with exhaustion, dehydration, neurological problems has a major impact on decision-making, especially wrong decisions.

In the business context, the periaqueductal cortex plays a major role in making financial and investment decisions and assigning value to abstract objects. Its efficient connections with the amygdala nuclei and hippocampus ensure that decisions are not difficult to make especially in volatile and risky situations, and are adaptable to the environment. A person is able to efficiently notice, sustain beneficial ventures, while avoiding and abandoning loss-making activities. The dorsolateral part of the prefrontal cortex, on the other hand, is responsible for the intellectual processing of a given piece of information, retaining it in short-term memory, differentiating and categorizing stimuli, or planning and controlling behavior. In the face of an internal or external conflict, the cingulate cortex comes into action, which continuously monitors whether the behavior was within the parameters of the contractually accepted correctness and anticipates the possible consequences of a wrong choice.

Clients in a decision-making process. Why we buy different?

In Marshall's conception, man in the world of the economic system is guided by mercantile motives, pursuing pleasure and profit, and in the relationship of man to the preferred good.

Economic decision-making factors include gender, emotional state, mood, probability, facts or information possessed and expected outcomes.

How this knowledge is used in marketing relates brilliantly to the exposure effect used by most advertising agencies. The exposure effect involves encountering a product-related stimulus as often as possible on the customer's path, such as in the form of an advertising spot between different videos or while watching a video on the Internet. The greater the brand recognition, the more strongly the customer is inclined to like the product encountered again and inclined to buy it. The decision to buy is often not dictated by a detailed comparison of the product with its counterparts available on the market. The mechanism of buying on the spur of the moment is at work here. Using the 7P model in marketing, where the mood of the customer is built by appropriate place settings or merchandising techniques is also one way to adopt an effective marketing strategy. Interestingly, even such details as laying down carpet instead of leaving hard surfaces influences a greater willingness to make a purchase and revisit a place.
Also, offering products for testing i.e. "the possession effect" convinces the customer to make a purchase decision.

Purchasing behavior between genders determined by differences in the brain makes it necessary to build the advertising message based on the target audience. Women's purchasing decisions, while more often dictated by the moment, at the same time focus on the needs of others and are dictated not necessarily by urgent shortages. Men make economic choices thinking about what they need personally, tend to be more attached to brands that have been proven more often, and often analyze product parameters differently than women.

Cultural differences and decisions during economic turmoil.

In business and management sciences, a model can be used to understand the decision-making path, that is, the mental activity of making a choice taking into account also the change resulting from the consequences. Often during the formation of a decision-making path, two systems of thinking are undertaken. The first is intuitive, quick and involves a heuristic approach to the problem based on experience developed beforehand. The second system requiring more intellectual effort, less reactive and based on analytical thinking. In economics and economic decision-making, the second system is used in most situations to make the right choices in order to achieve the most likely and realistic profit. The decision-making process is also influenced by the culture present in the individual's environment and the society-wide values adopted through its prism. These differences are clearly seen in the perception of the individualistic West and the collective culture of the East.

However, a split in consumerism between the two hemispheres has been apparent for some time. Interest in luxury brands and social pressure to mark one's status through purchasing decisions is definitely leaning more towards the East in countries such as China, Japan or Korea. The West, after the big hustler trend, is slowly inclined to give up flashy clothes with big brand logos and the awareness of limited resources, also the consequences of living on stressful credit is noticeable. This behavior also involves the economic crisis, recent inflation and less need to mark one's possessions in public. It is worth bearing in mind that according to research, consumer credit debt, mortgages lead to obsessive-compulsive disorder, increased anxiety, phobias and depression (Taylor, Pevalin, Todd, 2006).

Making a choice does not necessarily involve a dilemma, but also brings positive emotions like joy, satisfaction, relief, or the euphoria of a shot and unexpected entertainment. The marketing strategy takes into account holistically the factors that affect the perception and mental state of customers in order to increase satisfaction and a sense of satisfaction with the transaction. Customers, due to information teeechnologies, are becoming increasingly aware of their needs and available alternatives. This is forcing the market to take actions related to taking more social responsibility and presenting transparency towards the product or beneficial service provided to the customer. At a time of greater labor market turmoil, the "Great Recession," increased inflation, the customer's shopping cart is more deliberate and buying under the influence of emotions is less frequent. At such moments, companies try to entice the customer with discounts, offer price promotions for regular customers or emphasize the fact that they manufacture in their home country. This also applies to digital products. Thus, the customer's decision-making process is based not only on rational thinking but also an emotional aspect, so this is crucial for sale planned strategy using the achievements of neuromarketing.