Nonconsumers

Nonconsumers are individuals or groups who do not currently purchase or use a product or service in a given market. They may be excluded because of price, lack of access, insufficient awareness, misalignment with needs, or regulatory and cultural barriers. The concept is used in strategic planning to identify new demand and to think beyond existing customers.

In the strategic framework often associated with blue ocean strategy, noncustomers are categorized into three tiers. The first tier consists of soon-to-be noncustomers who are on the edge of the market and could become customers if offerings were simpler, cheaper, or more accessible. The second tier comprises refusing noncustomers who consciously reject the market’s current offerings due to perceived limitations, risk, or distrust. The third tier includes unexplored noncustomers who are not even aware of the market or are outside current distribution and marketing channels. Understanding these tiers helps firms rethink value propositions, pricing, and delivery.

Addressing noncustomers typically involves identifying the barriers that prevent adoption and designing innovations that lower those barriers. Approaches may include reducing complexity, lowering costs, expanding access, providing education, or creating new business models and channels. The aim is not only to attract new users but to redefine the product or service to appeal to a broader or different set of needs.

Limitations exist: not all nonconsumers can or should be converted, and changes must consider feasibility, regulatory constraints, and potential tradeoffs with existing markets. The concept remains a tool for exploring untapped demand and expanding market boundaries.