Question

Identify and describe extended, limited, and habitual decision making. Give an example of when each might be used.

Answer 1

Decision making is the process of reaching to a final conclusion or setting for one final thing after long deliberation. It is both an art as well as science and have been used extensively by companies to understand consumer behaviour.

Habitual decision making - this takes place when we need to decide for low value goods. Such goods are used and bought on high frequency basis and we are familair with them.So it needs less thinking.They are about low cost and regularly used brands.

Example is daily newspaper taking, deciding for the soap to buy or the milk brand for tea making.

Limited decision making - this takes little more thinking than habitual decision making but not so much of in depth deliberation. It is about mid value objects ,or objects which are semi frequently used or brands we encounter periodically.

Example for it is when we go to buy a watch or a dress. We are aware of good brands already and donot need much thinking. Buying gifts for friends, or electronic gadget is another example.

Extended decision making- these are made about higher cost products and those that we buy after long intervals.Since heavy investment is needed and its a one time investment much thinking is needed. We involve in lot of research and consultations. This comes with risk so people need to be fully assured.

Example is when we buy a flat in a city. Which city,which locality,which builder,floor number ,a lot of thinking is there. Similarly when buying high cost fridge or tv we think a lot.