Question

Explain the three types of decision making which consumers go through. Give examples to support your answer.

Answer 1

There are three types of consumer decisions to consider:

1. Nominal
2. Limited
3. Extended

NOMINAL DECISION MAKING

Nominal decisions are often made about low-cost products. They include frequent purchases, purchases from a familiar brand or product, buying that requires low involvement, or little search efforts. nominal decision making is generally about choosing in an impulse. the customer does not need to put efforts every time he buys a soap. he just goes and purchases the same brand without giving it much thought. The important thing to remember about nominal decision-making, is that too much marketing effort can have a negative impact on your customers. If someone is already happy to buy an item on impulse, or because of brand loyalty, they don’t need constant interaction with the brand asking them what they like about the substance, or whether they want to change anything. Too much marketing is not only debilitating to your budget, but it can get on your customer’s nerves – which is a dangerous thing for brands in this highly competitive era. they can start loosing their legit customers.

LIMITED DECISION MAKING

Limited decision-making is a little more involved than nominal decision-making, but it’s still not a process that requires in-depth research. Limited decisions are made about mid-cost products, semi-frequent purchases, or purchases from a somewhat familiar brand. They require a little involvement, and perhaps some searching. when you give a thought and tie to the process of purchasing because the product is not so cheap and it affects your lifestyle in a more effective way.

When customers make limited decisions, they take a small amount of time to ponder over their purchase, but they might not go online to look for testimonials and reviews. Instead, they could consider their memory of their product, and make decisions based on logical inferences. for example, you may eat certain bread. but you see an offer on the other brand and when you analyze you find that your regular brand is a little expense for daily use, so you buy this brand in offer and get used to it.

• Product quality
• Product availability
• Price
• Packaging style
• all these 4 things matter a lot in limited decision making of customers.

EXTENDED DECISION MAKING

extended decisions are made about higher-cost products, and infrequent purchases. They require a lot of involvement, often center around unfamiliar brands or products, and need extended thought and search efforts to ensure buyer confidence. this is for expensive products like suppose you buy a washing machine. you cant just buy a machine that you see first on is on 10% sale. you go through a research procedure about type brand range and functions. you even consider your friends and relatives to take advice. you make mature informed decision taking your time and then buy. this is a rigorous and time consuming task and needs customer to be well informed.

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