Limited problem-solving approach

Full Answer Section

Personal Example:

Recently, I purchased a new wireless router for my home. In this instance, I primarily used a limited problem-solving approach. Here's why:

• Prior Experience: I've purchased wireless routers before, so I had a general understanding of their features and functions.
• Limited Research: I did some online research, primarily focusing on comparing a few specific models based on factors like Wi-Fi speed, range, and user reviews. However, this research was not extremely in depth.
• Familiar Category: I was familiar with the general product category, so I didn't need to learn about the fundamentals of wireless networking.
• Moderate Risk: While a wireless router is an important purchase, it's not a major financial investment, and the risk of making a "wrong" choice was relatively low.

In contrast, if I were buying a new laptop, I would likely engage in extended problem-solving, as that purchase involves higher cost and complexity.

In summary, the purchase of the wireless router was a limited problem solving situation, because I already had previous knowledge of the product type, and the purchase did not contain a high risk.

Sample Answer

When considering consumer behavior, it's helpful to differentiate between limited and extended problem-solving. Here's a breakdown of those concepts, followed by a personal example:

Limited Problem-Solving:

• This occurs when consumers have some prior experience with a product or service.
• They may need to gather a bit more information, but the decision isn't overly complex.
• It's often used for moderately priced items or when choosing between familiar brands.

Extended Problem-Solving:

• This is used for significant purchases that involve high risk or complexity.
• Consumers engage in extensive research, compare alternatives, and carefully evaluate options.
• Examples include buying a car, a house, or complex electronics.