Adopter Categories

The term adopter categories (AC) classifies what might be more generally described as market segments, buyer or customer groups, and related similar terms. Groups of customers adopt (make purchase decisions) different[Page 8] choices based on differing reasons and criteria. Sorting these prospective clients or customers into groupings is a common practice, and adopter categories is just one of many names given to these groups. Much of this definition is devoted to the nature of adopter categories and the criteria and decisions associated with them.

All markets can be segmented into prospective purchasers based on specific needs and wants. These adopter categories or market segments may be based on geography, age, demographics, social status, economic status, racial or gender segmentation, risk classification, and many other parameters.

Understanding the adopter categories being served is a critical step in the establishment of marketing plans, service definition, pricing, and delivery methods. Market research is a common tool used to define market segments and thus understand adopter categories. The more distinctive the characteristics of adopter categories, the more specifically targeted the marketing attention to it can be. Products and services are frequently developed or adapted to adopter categories with the expectation that tailoring them to specific decision criteria of prospects and customers will enhance the likelihood of competitive success.

Pricing is a major issue for most adopter categories. Although there are many sacrifices a purchaser must make to acquire something he or she wants or needs, price is usually near the top of the decision list. Positioning the price of the goods or services depends heavily on competitive conditions in the market segment (AC) chosen as the target. At times, an error in pricing can completely eliminate a competitor from consideration, which is why pricing is so important in those cases. In other cases, such as health care services or accident insurance where a third party is paying, price may be far down the list in users’ decision criteria, but it will still be high on the payer's priority list.

Location and geography are important criteria for adopter categories, because many other factors usually depend on it. To save time, some adopter categories choose locations that are convenient. Other adopter categories exclude locations that are too remote or inconvenient.

An old saying in retailing is “There are three very important decisions a retailer must make: location, location, and location.” Location is often a key decision criterion for adopter categories. This is why facilities serving like adopter categories cluster. Doctors’ offices often cluster in locations near hospitals, as do specialty pharmacies. Many retail stores seek neighborhoods that benefit from traffic of adopter categories shopping in the same area; large supermarkets attract smaller specialty stores such as dry cleaners, fast food restaurants, and so forth in strip malls. These are all cases of sellers attempting to take advantage of the shopping patterns of adopter categories to make their offering more attractive than those of competitors.

Once the adopter categories and their needs, wants, and preferences are clearly defined and understood, many other decisions can be built on that knowledge. Age and gender are frequent criteria for defining adopter categories. Certain marketing approaches and advertising media choices are much more successful with some age-groups than with others. Certain age-groups are largely unresponsive to appeals that would be hugely successful with other age-groups. For example, skateboards are unlikely to have much appeal to people over age 70, whereas canes and walkers are equally unlikely to be a major purchase interest for those under age 20!

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