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Researchers have determined that consumers make use of three kinds of decision making processes (Mothersbaugh & Hawkins, 2016, pp. 500-501). The three types reflect the level of consumers' involvement in the purchase decision. Nominal decisions occur when people buy everyday items. Consumers have low levels of involvement in making such routine purchases. Extended decision making takes place when consumers are shopping for costly items and are worried about the negative consequences of a wrong choice. Limited decision making is more complicated than nominal decision making but less complicated than extended decision making. It is used when consumers must make a choice from a small number of alternatives.
I recently made a nominal decision when I needed to replace a battery in the TV remote control. I did not become involved in comparing battery brands because I wanted to fix the problem as quickly as possible. I went to a nearby convenience store and bought a Duracell product because it is a brand that worked for me in the past. Last week, I made a limited decision when my wife and I visited a restaurant that we had not tried before. I had to choose a meal from a menu that I was not familiar with. However, the decision was not too complex because the restaurant offered meals that were basically similar to meals that I had previously. I quickly narrowed down my options and was able to make a selection by the time the waiter returned to our table.
An example of extended decision occurred when I recently shopped for a new computer. I was highly involved in the purchase because of the expense and also because of the importance of technology in the medical profession. Although I am loyal to the Apple brand, I wanted to choose the best possible model. In addition, I wanted to compare other brands so I could be sure I was making the right decision. I went online and carried out the steps of an information search, as described by Mothersbaugh & Hawkins (2016). The activity included reading numerous consumer reviews. As claimed by Lee, Shi, Cheung, Lim, & Sia (2011), consumer reviews play a vital role in supporting purchase decisions (p. 190). Like many other consumers, I tend to trust customer reviews more than the statements made by sellers (Weisstein, Song, Anderson, & Zhu, 2017). I noticed that I became especially alert whenever I read negative reviews from other consumers. This relates to the observation made by researchers that consumers pay more attention to negative reviews than positive ones because negative information is "more diagnostic and informative for decision making" (Weisstein et al., 2017, p. 202).
Under certain conditions, I may have used different forms of decision making when purchasing batteries, restaurant meals, and a new computer. For example, buying a battery would not be a nominal decision if I had become dissatisfied with the Duracell brand for some reason. I would have used a limited decision making approach so I could compare a few different products and pick a new brand. Choosing a meal would be a nominal decision instead of a limited one if I was in a restaurant that I often visit and was in the mood to simply order what I usually get. Buying a computer would not be an extended decision if I needed a new one in a hurry and did not have time to do any comparison shopping. In such a case, I would probably just buy a mid-priced Apple product without considering other options.