Physiology is the internal, biological mechanisms (hormones, neurotransmitters, localization of brain function) of living organisms – which is the way the organism functions. In order to explain the response to an emotion Schacter and singer explain the biological mechanism in terms of hormones and the cognitive mechanism in terms of labelling.The two-factor theory by Schacter and Singer outlines how biological and cognitive influences can affect emotion. The arousal caused by the sensation of an emotion can lead to physiological arousal identified as a rush of adrenaline; which needs to labelled and interpreted by the individual. This labelling stage is the cognitive affect of an emotion being present. If a state of unexplained bodily arousal is induced, people will look around the ambiguous situation and try to explain the arousal in terms of their environment. This cognitive appraisal results in labelling of the arousal as an emotional experience.