The importance of proper targeting is a well known fact, however the deep understanding of the different consumer types and adoption patterns is crucial when it comes to designing the marketing strategy of a brand. Here I summarised the main factors to consider.
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2. Why it's important
We all know about the importance of defining an accurate targeting in our marketing
and business strategy, however there is way more than just the demographic
characteristics and general behaviour patterns when it comes to define our Buyer
Persona and to understand that depending on the operating sector and the wideness of
the product range offered, different factors, hence marketing strategies have to be
applied.
Consumer behaviour incorporates ideas from several sciences including psychology,
biology, chemistry, and economics with the aim to understand the buying decision and
this way being able to influence it
Understanding consumer behaviour also helps marketers decide how to present their
products in a way that generates a maximum impact on consumers. It’s crucial in
reaching and engaging clients, converting them to purchase.
Veronika Fazekas
3. Types of consumer behavior
1. Complex buying behavior
This type of behavior is common when buying an expensive, infrequently bought product.
They are highly involved in the purchase process and consumers’ research before
committing to a high-value investment. - not frequent in TT
2. Dissonance-reducing buying behavior
The consumer is highly involved in the purchase process but has difficulties determining the
differences between brands. ‘Dissonance’ can occur when the consumer worries that they
will regret their choice.
This usually happens in the case of high involvement purchases where there are few
differences between brands.
In this case the consumer does not have enough information based on which to make a
decision.
It is very important for the marketer to differentiate here even if it is on the basis of
positioning, brand image, trust or pricing.
Veronika Fazekas
4. Types of consumer behavior
3. Habitual buying behavior
Habitual purchases are characterized by the fact that the consumer has very little
involvement in the product or brand category. It means exhibiting a habitual
pattern, not strong brand loyalty.
4. Variety seeking behavior
In this situation, a consumer purchases a different product not because they
weren’t satisfied with the previous one, but because they seek variety.
Veronika Fazekas
5. Consumer types
Loyal Customers
Impulse Shoppers
Bargain Hunters
Wandering Consumers
Need-Based Customers
There are 5 types of consumers and they all require slightly
different attraction and retention techniques.
Veronika Fazekas
6. Consumer types
Loyal customers make up the bedrock, those who have made a
commitment to a product or service. They generate the majority of the
income. More likely to recommend brands to others.
It's essential to keep this customer base involved, engaged .Adding
reward programs and interactive social media to keep them.
Impulse shoppers are those simply browsing products and services with
no specific purchasing goal in place. This consumer segment generates
significant revenue for most retailers. This type of consumer is usually
receptive to upselling and has the potential to become a loyal customer
if products and services meet or exceed their expectations and desires.
Loyal customers
Impulse shoppers
Veronika Fazekas
7. Bargain hunters are seeking the best deal and most likely won't be
swayed by upselling techniques This type of customer has very little
potential to become a loyal customer. This customer also rarely, if ever,
makes purchases on impulse. Advertising sales is the best way to
appeal to those in this customer group.
Wandering customers are somewhat related to impulse shoppers, but
they're much less likely to make purchases.
They are driven by the need for a specific product or service. They
make purchases decisively and quickly once they find what they're
seeking. They're frequently converted into loyal customers and often
have practical questions or concerns that can be addressed with a
proactive social media presence.
Consumer types
Bargain hunters
Wandering customers
Need-Based Customers
Veronika Fazekas
8. Customer Adoption Patterns
Innovators
Early Adopters
Early Majority
Late Majority
Laggards
Customer adoption patterns are important to understand in order to understand how to market
new products. This classification of consumers relates to their willingness to take risks and to
switch purchase behaviors relative to particular product categories.
These categories are relevant to particular products, not necessarily the consumer themselves – but
obviously some people are more risk takers whereas others are more conservative, so there would
be some correlation of behaviors across related product categories. For example, a consumer may
be an innovator or early adopter of technology products, but perhaps be in the late majority for
household furniture.
Veronika Fazekas
9. Innovators are the first customers to try a new product. They are, by
nature, risk takers and are excited by the possibilities of new ideas and
new ways of doing things.
Early adopters are the second phase of product purchasers .These tend
to be the most influential people within any market space . They may be
very active in social media and often create reviews and other materials
around new products that they strongly like or dislike.
Early adopters will normally have a reasonably high social status ,
reasonable access to finances, high levels of education and a
reasonable approach to risk.They will try to obtain more information
than an innovator in this decision making process
Customer Adoption
Patterns
Innovators
Early adopters
Veronika Fazekas
10. As a product begins to have mass market appeal, the next class of adopter to
arrive is the early majority. This class of adopter is reasonably risk averse and
wants to be sure that their resources are spent wisely on products. They are
however, generally, people with better than average social status.
The late majority is rather more skeptical about product adoption . They tend
to put their resources towards tried and tested solutions only The late
majority rarely offer any form of thought leadership in a field.
Laggards are last to arrive at the adoption party and their arrival is typically a
sign that a product is entering decline. Laggards value traditional methods of
doing things and highly averse to change and risk. rarely seek opinions
outside of their own limited social set. In many cases laggards are older
people who are less familiar with technology than younger generations and in
these cases they may still have a mid-level of socio-economic status.
Customer Adoption
Patterns
Early majority
Late majority
Laggards
Veronika Fazekas
11. Based on the consumer type and on the adoption
pattern related to the market, the product types,
the different varieties, a full Buyer Persona matrix
can be established and the different marketing
strategies designed.
Depending on the variety of assortment, a brand
might have to design different strategies targeting
the different consumer types
Veronika Fazekas