Explain in detail habitual decision making, limited problem solving, and extended problem solving.
The correct answer and explanation is :
Habitual Decision Making, Limited Problem Solving, and Extended Problem Solving
Consumers make purchasing decisions in different ways based on the level of involvement and effort required. These can be categorized into habitual decision making, limited problem solving, and extended problem solving.
1. Habitual Decision Making
Habitual decision making occurs when consumers make routine purchases with little thought or effort. This type of decision-making is common for everyday, low-involvement products like groceries, toiletries, or household items. Consumers rely on brand loyalty, past experience, or convenience rather than extensive research. For example, a person who buys the same brand of toothpaste every time without considering alternatives is engaging in habitual decision-making.
2. Limited Problem Solving
Limited problem solving happens when consumers put in some effort to make a purchase decision but do not conduct extensive research. This occurs for moderately priced or less frequently bought products, such as clothing, kitchen appliances, or electronics accessories. The consumer may compare a few brands, check reviews, or ask for recommendations before making a choice. For instance, when buying a new backpack, a consumer might look at two or three brands before deciding, but they do not engage in a highly detailed evaluation.
3. Extended Problem Solving
Extended problem solving is used for high-involvement purchases that are expensive, complex, or have long-term consequences. This process involves thorough research, evaluation of alternatives, and risk assessment. Consumers engage in extended problem solving when buying a house, a car, or a college education. They may read reviews, consult experts, visit multiple stores, and take their time to make an informed decision.
Understanding these decision-making processes helps businesses tailor their marketing strategies based on consumer behavior.
Here is an infographic illustrating the three types of consumer decision-making processes: Habitual Decision Making, Limited Problem Solving, and Extended Problem Solving.