Portfolio

To define the target audience for Amazon Echo (Alexa), it is important to focus on the data from the Statista Global Consumer Survey, written in July 2020, which focuses on Alexa as a smart speaker brand.

Based on the data from Statista, there are a couple of big independent variables found while accessing the target audience for Alexa. To determine the target audience of Alexa, I will be accessing the median analytics and the analytics of the largest share of the data, specifically, in each data set. Combining both of these elements will give a more in-depth and specific nature of the target audience of Alexa.

Before analyzing data, it is important to note that the Amazon Echo held 74% of the market share of smart speakers in the U.S. (Loose et al., 2020)

​

Beginning demographics with age, the data provided by Statista attests that sex division is almost equal. The percentage of male Alexa sales is 51 percent, while female Alexa sales is 49 percent. The age range data points of 18 to 24-year-olds were 16 percent, 25 to 34-year-olds were 28 percent, 35 to 44-year-olds were 20 percent, and 55 to 64-year-olds were 13 percent. The median age range of the consumer of Amazon Echo is the range 35 to 44 years old. This data point is not surprising, as consumers in this age range are the most valuable asset for the economy and are arguably the most productive workers. This range is also more likely to have higher income jobs and a higher disposable income compared to the age ranges before and after 35 to 44-year-olds. (Loose et al., 2020) & (Dolliver, 2020)

​

The data spread for household income of Alexa owners was 22 percent with $40k and less a year, 31 percent with $40k to $79k a year, and 45 percent with $80k or more a year.

​

Next in demographics is household size. The household size data, who purchased an Alexa, was split 13 percent were one-person households, 28 percent were two-person households, 25 percent were three-person households, 21 percent were four-person households, and 12 percent were five or more people households. The median of this data is three-person households. (Loose et al., 2020)

​

In reference to community types, the data deduced that 59 percent of people who bought Amazon Echo lived in town and rural settings, while 41 percent lived in urban settings. This information is also predictable since people who live in “suburban” areas are more likely to be homeowners. Homeowners are more likely to have higher disposable incomes. (Killewald & Bryan, 2016) & (Loose et al., 2020)

​

It can be argued that the most important factor in determining the target audience of Alexa would be to access the income levels from the given data. The share of the consumers who commit to the purchase of Alexa are people with a high third of monthly household gross income. This trend is not only apparent in the product itself, but also in the category of smart speakers. (Loose et al., 2020)

​

To continue determining the target audience of Alexa, it is important to also access psychographics, such as the lifestyles of Alexa’s consumer base. According to Statista, in both the brand users and general category of users, 67 percent of brand users and 66 percent of category users agreed to the statement that “they could not live without their smartphones”, 62 percent of brand users and 61 percent of category users agreed to the statement that “they would love to control their homes via their smartphones or voice”, 47 percent of brand users and 46 of category users agreed to the statement that “they buy new electronics even when their old model still works.” The last percent of brand and category users is considerable, as it shows that households are willing to keep purchasing the product even with new releases. (Loose et al., 2020)

​

The interests of consumers are also important to be recognized in psychographics. The top ten hobbies for both the brand users and category users were food, music, travel, pets, reading/writing, health and fitness, watching sports, video games, and tech and socializing (in that order). (Loose et al., 2020)

As a technological-based product, Alexa must have a strong relationship between its consumers and tech. It is memorable that both brand and category users always own the latest technology. Consumers love to try out new tech and stay up-to-date with innovative products, especially ones that make life easier. (Loose et al., 2020)

​

After connecting all the data points provided, I can confidently say that the target audience of Amazon Echo (Alexa) is adults, between the ages of 25 and 44, with a household size of 3 people, living in either a large city or a medium-sized town (most likely being households that live in suburban areas due to the high amount of home ownership and disposable income), and with a household income being in the high thirds of monthly household gross income (high-income households). Small families and people who have multifaceted lives, and diverse hobbies, are eager to try new innovative ideas and be pioneers in terms of buying new products. Those with a good relationship with technology and who depend on technology in their daily lives are also a part of the target audience. (Loose et al., 2020)

I can deduce this as 35 to 44-year-olds were the median of the data point and also earned the most income as discussed above. It is also mentioned that people between the ages of 25 and 35 commit to the largest market share, which is probably due to their close connection with technology (growing up with it). (Killewald & Bryan, 2016) & (Loose et al., 2020)

​

References:

Dolliver, M. (2020, August 18). Boomers Are Slower to  Adopt New Technologies,  but They’re Likely to Stick  with the Ones They Value. eMarketer. https://www.emarketer.com/content/boomers-slower-adopt-new-technologies-they-re-likely-stick-with-ones-they-value 

Killewald, A., & Bryan, B. (2016, October). Does Your Home Make You Wealthy?. RSF. https://www.rsfjournal.org/content/2/6/110#:~:text=High%20rental%20prices%20and%20tax,be%20set%20aside%20for%20savings. 

Loose, N., Spearman, J., & Gewiese, J. (2020, July). Smart speakers: Amazon Echo (Alexa) brand report in the United States 2020. Statista. 

Ownership of Smart Speakers Among US Adults, by Income, Feb 2020. (2020, April 14). eMarketer. https://www.emarketer.com/chart/235779/ownership-of-smart-home-devices-among-us-adults-2019-2020-of-respondents

US Adults Who Own a Smart Speaker, by Demographic, April 2020. eMarketer. (2020, April 2).