./configure --prefix=*** make install --prefix=*** make install DESTDIR=***
A
Number 2 is simply an error as far as I know.
Number 1 determines where the package will go when it is installed, and where it will look for its associated files when it is run. It’s what you should use if you’re just compiling something for use on a single host.
Number 3 is for installing to a temporary directory which is not where the package will be run from. For example this is used when building deb packages. The person building the package doesn’t actually install everything into its final place on his own system. He may have a different version installed already and not want to disturb it, or he may not even be root. So he uses configure –prefix=/usr so the program will expect to be installed in /usr when it runs, then make install DESTDIR=debian/tmp to actually create the directory structure.