What are the types of decision-making processes? Explain with an example

Decision-making processes can be categorized into three main types:

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  1. Routine Decision Making:
  • Description: This type of decision-making involves everyday, habitual choices that require minimal effort and consideration. Consumers often rely on established routines and preferences.
  • Example: Purchasing a specific brand of toothpaste that a person has been using for years without actively thinking about alternative options.
  1. Limited Decision Making:
  • Description: In this type, consumers engage in a moderate level of information gathering and evaluation before making a decision. It is used when the product or service is somewhat important, but not a significant investment of time or money.
  • Example: Choosing a new smartphone. Consumers might research a few options, compare features, read reviews, but the decision doesn’t involve exhaustive research or extensive evaluation.
  1. Extensive Decision Making:
  • Description: This is a more complex decision-making process, usually associated with high-involvement purchases. Consumers invest significant time and effort in researching, comparing, and evaluating alternatives.
  • Example: Buying a car. This decision involves extensive research, test drives, consideration of various models and brands, and a substantial investment. Consumers want to ensure they make a well-informed and satisfactory choice.

These decision-making processes are part of the broader Consumer Decision-Making Model, which includes stages like problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation. The level of involvement and effort invested in each decision-making process depends on factors such as the importance of the decision, personal involvement, and the perceived risk associated with the choice.