The Behavioral Economics of Decision Making: Explaining Consumer Choice in Terms of Neural Events.

• Author: MIRICA, CATALINA-OANA "DUMITRESCU"
• Position: Report

1. Introduction

   Neuroscientific methods have an advantage over the established ones of marketing analyses to grasp and delve into the conduct of consumers. Such improved insight inspires managers to update and improve their products and mechanisms, thus raising the consumer satisfaction that brings about enhanced consumer loyalty. The inclination to a certain brand brought about via neuroresearch has a significant level of association with the buying conduct of the consumers. Thoroughness in the management operations inferred from neuroscientific approaches may enable the marketer to comprehend the neural level mechanisms in decision making and choices of the brain (Bratu, 2018; Meila, 2018; Sion, 2018), thus being decisive in producing commodities considerably supporting the demands of the consumers, cutting down the product deficiencies and refusal expenses, and providing the resources for firms to innovate and work for communities in a remarkable way (Agarwal and Xavier, 2015).

2. Literature Review

   Neural methods, especially from functional magnetic resonance imaging (fMRI) scans, may pursue subtleties of an individual's feedback to diverse characteristics of a choice, or decision target, while the preference process advances, even before an informed decision is made. Beyond choices, neural data may provide insight into the strength of consumer-oriented interactions in shaping behavior. By assessing a well-defined series of signals from individuals, neural methods supply new-fashioned facets of insights into their choices and behavior, and the capacity to possibly surpass established behavioral measures. (Karmarkar and Plassmann, 2017) Brain imaging enables the assessment of neural activity throughout concrete marketing-significant conducts (Hoffman and Friedman, 2018; Popescu Ljungholm, 2017; Sponte (Pi[section]talu), 2018) and in the phases directly anticipating and following them. In such phases, relevant data processes are occurring that are essential to better comprehend consumer conduct. Neuroimaging tools may assist in substantiating, enhancing, or advancing current marketing approaches by supplying insights into the intrinsic process. Neuroimaging can establish disconnections between psychological mechanisms. fMRI and associated tools may differentiate whether two distinct types of choices employ comparable or distinct neural processes and consequently whether they may entail analogous or dissimilar psychological processes. Integrating neural measures into...