When do I use Context, useReducer or a custom hook?

Definition:

Context shares a value with descendants without passing it through every intermediate component. useReducer organizes state changes through actions and a reducer, while custom hooks extract reusable stateful logic. These tools address distribution, transition structure and reuse respectively; they are not interchangeable state stores.

Key points:

• Context shares values across a component tree; changed values update consumers.

• useReducer groups related state changes into explicit actions.

• A custom hook reuses logic; separate calls do not automatically share state.

• A new Context provider value can update consumers; separate unrelated contexts when broad updates become expensive.

Interview point:

• Two components calling the same custom hook get separate state unless the hook explicitly connects them to shared storage.