Buyer Classification
This article covers meaning & overview of Buyer Classification from marketing perspective.
What is Buyer Classification?
Buyers are classified into various categories depending on where they are present in the distribution chain. Different buyers are given different prices and discounts based on this fact.
There are five types of buying behaviour. Each group’s reason for buying are different hence the strategy must be accordingly modified to suit their needs. The five types are as under:
• Innovators: The smallest group of buyers. They love experimenting and buying anything new in the marketplace. They are very much exposed to new ideas and technology and are guided by a high level of self confidence. If the product manages to entice the innovators , they are sold. They inspire others to buy if they like the product. They represent only 2% in the market.
• Adopters: Adopters are the trend-setters and they set trends and examples by their decision of product. They are not risk-taking like the innovators and try the new products only if it brings a significant change in their life or improves their business. Hence they try out the products only after proper consultation and understanding the benefits related to it.
• Early majority: Representing 39% of the market, the early majority are a group of people who are slower to try new things than the innovators and adopters and are inspired by them. They are not very technology driven and are more practical in their approach to buying new things. They are very careful of the longevity and reputation of the company which manufactures the product.
• Late Majority: This group makes its purchase very late in the buying cycle. By then, mostly the early adopters and the innovators already move to other products. The late majority people wait for the product to be universally accepted. They are mostly price sensitive people who wait for the prices to fall. They rely on mass media for purchasing.
• Laggards or Excessive Traditionalists: Laggards wait for the products to become an absolute need. They purchase the products when the other groups consider the similar product obsolete. They are the zero risk takers. The laggards do not need a marketing campaign.
Hence, this concludes the definition of Buyer Classification along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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