Q:

What are the different types of consumers?

A:

Quick Answer

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

Full Answer

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
Sources:

Related Questions

  • Q:

    What is brand equity?

    A:

    Brand equity refers to the intangible value of a company or product name that causes consumers to pay more money than they would for a similar, competing product. High brand equity improves a company's ability to generate revenue and profit and offers customers peace of mind in purchase decisions.

    Full Answer >
    Filed Under:
  • Q:

    What is holistic marketing?

    A:

    Holistic marketing refers to a marketing strategy in which one considers the big picture of a business, its role in the economy and community and its impact on the lives of its consumers. The four key points of holistic marketing are internal marketing, integrated marketing, relationship marketing and socially responsive marketing.

    Full Answer >
    Filed Under:
  • Q:

    What are the functions of distribution channel marketing?

    A:

    According to TheManageMentor, the main functions of distribution channel marketing include information gathering, matching, promotion, developing contacts and negotiation for the sole purpose of providing a link between consumers and products. Information gathering involves assimilation and dissemination of market research, promotion involves development of persuasive communication, and matching involves meeting customer requirements by provision of the right product fit. Negotiation creates a win-win environment for buyers and sellers.

    Full Answer >
    Filed Under:
  • Q:

    How is e-commerce different from traditional retail?

    A:

    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 >
    Filed Under:

Explore