And indeed, if I use the Other… option at the bottom of the above menu, I can change the default application for that file. (Although in practice I use an easier way.)

However, that’s only the default application for that one file changed — all other files of the same type will continue to open with the original default application.

To set the default application for all files of that kind (in this example, .txt files), you need to open the Get Info dialogue by right-clicking on the file (or typing alt+cmd I):

Now set the application in the file’s info window and click on the Change All… button, confirm by clicking Continue and you’re done. From now on, all files of this kind will be opened with your chosen application.

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