Consumer types are determined according to the speed in which they develop interest in new products. The Milwaukee Business Journal lists the different types of consumers as innovators, adopters, early majority, late majority and excessive traditionalists. Understanding consumer types and their buying behaviors is critical for business owners because it increases marketing effectiveness and positively impacts sales.Know More
The first group, innovators, account for roughly 2 percent of all consumers. They are not afraid to try something new or risk buying an unfamiliar product. The second type, adopters, also form a relatively small group, comprising 15 percent of the market. They stay more informed than innovators and like to understand product benefits before purchasing.
Combined, the early majority and late majority groups make up almost 80 percent of consumers. Consumers in these groups are slow to change buying habits and only show interest in a product after peers have endorsed it. The late majority differs slightly from the early majority because it waits until prices drop before purchasing new products. The last type of consumer group, excessive traditionalists, accounts for 5 percent of the market. This group resists change until a product becomes an absolute necessity to carry out daily life.Learn more about Marketing & Sales
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There are several key differences why e-commerce stands out from traditional retail. The ability to sell products easily across geographic boundaries is a big advantage for online stores; customers from anywhere in the world can make purchases once accessing the site. Another major difference is the initial cost of opening a store. Traditional stores require thousands of dollars in upfront expenditures to open, while online stores are inexpensive to open.Full Answer >