What are Alpha Consumers?
The term “alpha consumer” is a marketing designation that has to do with identifying the purchasing habits of the most desirable sectors of the population, usually population sectors that are known to use a large share of their disposable income to purchase desired goods and services. Alpha consumers are interested in all sorts of products, and often identified with luxury items, such as trendy clothing, fashionable restaurants, and the latest in electronic technology.
The concept of the alpha consumer is often attributed to professional marketer Irma Zandl. Zandl developed the basis for what is known today as trend marketing during the mid-1980’s. Essentially, trend marketing works on the premise that a relatively small number of people can adopt a current good or service and create a huge amount of notoriety for the product. In turn, other people begin to perceive the trend as being desirable and cutting edge. The end result of this trendsetting process is that the mainstream body of consumers begins to accept and purchase the product, resulting in huge sales volume for a period of time. The groups of persons who spearhead trends and bring them to the attention of the wider buying public are referred to as alpha consumers.
Alpha consumers are often identified with two age groups in particular. First, there is the teenage market. Alpha consumers in this age group are especially important to manufacturers, as the potential for providing clothing, music, and electronic devices to teenagers has long been a staple of marketing products. Teenagers tend to be very open to new ideas and products, and often are the trendsetters who set the pace for not only their own peer group, but also for persons in their early twenties.
At the opposite end of the spectrum, many marketers look for alpha consumers who are part of the Baby Boom generation. One of the most affluent generations in recent history, baby boomers often have disposable income to spend on high-ticket items. Involving this generation in trend setting for the purchase of vacation spots, cruises, and second homes follows the same pattern as with teenage alpha consumers. The pattern involves convincing a core group of individuals of the desirability of the good or service, then spotlighting them in advertising that is aimed at that age group. In a short time, this effort in trendsetting will yield big profits.
Alpha consumers exert their influence by exposing friends, relatives, and acquaintances to the latest trends, and by using the products in such a way that other people tend to see the goods and services as worth the time and price. As a valuable marketing tool, alpha consumers can make a big difference in whether a product builds a loyal consumer base or disappears from the marketplace in a short time.
Written by Malcolm Tatum
