Luxury Consumers' Attitudes & Motivations Report: How The Mindset Of The Affluent Consumers Has Changed In The Current Recession And What It Means For The Retailers And Brands That Market To Them
Unity Marketing Inc.
October 1, 2009 160 Pages - SKU: UM2467541
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Unity Marketing introduces its first in-depth attitudes and motivations study of the luxury consumer market. In this new study, Luxury Consumers' Attitudes and Motivations Report, Pam Danziger, Unity Marketing's lead investigator, probes the mindset of today's luxury consumer to uncover the keys to marketing effectively in the current economy. This report is filled with facts and figures, but it doesn't stop with the data -- It pushes further to help marketers and retailers put the information and insights to use. The goal is to translate research-based findings into information that marketing executives can use to make critical strategic and branding decisions.
The underlying premise of this study of luxury consumer attitudes is simple: Changes in consumer behavior -- what they buy and how much they spend -- follows changes in their attitudes -- why they buy. This report focuses on affluent consumers' underlying attitudes and motivations in their luxury purchases and luxury lifestyles. It examines how affluents are responding to the current recession, as well as their overall feelings, attitudes and motivations that drive them to pursue a luxury lifestyle in general. The goal is to understand how the affluent consumers' mindset and psychology is making over the luxury market and creating a 'new normal' for luxury marketers in the future.
Specifically, the research goals of this study are to:
- Understand what luxury means to affluent shoppers today and whether their concept of luxury has changed since the recession began;
- Explore consumers' perception of their favorite luxury brands and whether they are trading down to less expensive brands;
- Define what 'value' means in the consumers' shopping psychology and how affluents interpret 'value' when considering a particular purchase;
- Understand how sale prices and discounts influence luxury consumers in purchases of both luxury goods and services;
- Learn how the recession is changing these luxury consumers' lifestyles;
- Compare luxury consumers' overall attitudes about their luxury lifestyles today with how they felt in 2007, prior to the recession and economic crisis;
- Identify the personalities that make up the current luxury market; and
- What the changes in luxury consumers' attitudes and motivations mean for the future of the luxury market.
Being forewarned is forearmed -- This study gives marketers data and insights they can use to plan for the future
The past two years have been a period of dramatic change in the consumer economy overall. High unemployment, decline in the housing market, and the global recession have hit consumers at all income levels, but uniquely in this current market it has caused dislocation and distress among the affluent consumers, defined as those with incomes corresponding to the top 20 percent of U.S. households with average income of about $200,000.
In times of dramatic changes like these, many analysts look to the past and what happened in other recessions to help predict the future. But the fact is no previous recession has been anything like this one, so past behavior can't predict the future.
What Unity Marketing relies upon as its crystal ball to see the future is to study the mindset and psychology of the consumer. Every three months, Unity Marketing conducts an in-depth survey among affluent consumers to measure what they are buying and how they feel about their current economic situation. With the results of this survey the affluent consumer confidence is measured and reported as the Luxury Consumption Index (LCI). The LCI has proven to be statistically correlated to affluent consumers' reported spending. These regular, routine tracking studies enable Unity Marketing to keep its fingers on the pulse of the American luxury market.
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- Chapter 1: The Luxury Drought
- Study's Objectives: How Luxury Consumers Have Changed in the Current Economy
- Qualitative and quantitative research methodologies
- Chapter 2: What the Data Tells about the Present − And Future - of the Luxury Market
- This Is the Luxury Drought
- Causes of the Luxury Drought
- The recession has had wide spread negative impacts on affluent consumers' incomes and lifestyles
- Figure 1: How current recession impacted one's financial situation
- Figure 2: Changes to personal financial situation
- Impact of economic crisis on affluents' wealth
- Figure 3: Changes in wealth past 12 months
- Affluent Consumer Confidence on the Rise and Luxury Consumer Spending Was Up Over Same Period Last Year 16
- Figure 4: Luxury Consumption Index
- LCI and its statistical correlation to luxury consumer spending
- Figure 5: LCI & Average Luxury Consumer Spending plus Correlation
- Luxury Consumers’ Feelings of Financial Well-Being
- Figure 6: Feelings of Financial Well-Being
- Spending Trends on Luxury In Past Twelve Months
- Figure 7: Trends on Spending on Luxury in the Past Twelve Months
- Luxury Consumers' Future Spending Expectation
- Figure 8: Trends in Spending on Luxury in the Coming Twelve Months
- >>Luxury Marketers: Take Action
- Confidence in Financial Health of Country
- Figure 9: Financial Health of the Country
- Financial Prospects in Next Twelve Months
- Figure 10: Financial Prospects Next Twelve Months
- Investments and Savings in the Current Quarter
- Figure 11: Trends in Saving and Investing Now Compared with Twelve Months Ago
- Investments and Savings in the Coming Year
- Figure 12: Trends in Saving and Investing in Coming Twelve Months
- >> Luxury Marketers: Take Action
- Figure 13: Personal Consumption as Percentage of Overall Economy
- Total Luxury Purchase Incidence
- Figure 14: Overall Luxury Purchase Incidence (All Affluent Consumers)
- >> Luxury Marketers: Take Action
- Luxury Consumers’ Average Spending on Luxuries
- Figure 15: Average Spending on Luxuries
- >>Luxury Marketers: Take Action
- Trends in Spending by Key Demographic Segments
- Figure 16: Trends in Spending on Luxury by Demographic Segment (Age, Gender, Income)
- Trends in Spending by Demographic Segments in Major Luxury Categories
- Home spending by demographic segment
- Figure 17: Home Luxury Spending Trends by Demographic Segment
- Personal spending by demographic segment
- Figure 18: Personal Luxury Spending Trends by Demographic Segment
- Experiential spending by demographic segments
- Figure 19: Experiential Luxury Spending Trends by Demographic Segment
- Prospects for the Luxury Market in Future
- Chapter 3: Luxury Consumers and their Attitudes about the Recession
- What the word "Luxury" means to affluents
- Luxury costs more
- Luxury's exclusivity motivates some, but not all
- >>Luxury Marketers: Take Action
- Luxury is both material and experiential
- >>Luxury Marketers: Take Action
- Role of luxury in the affluent's lifestyle
- >>Luxury Marketers: Take Action
- Affluents are being more careful about their spending
- >>Luxury Marketers: Take Action
- Status is out, anti-status is in
- >>Luxury Marketers: Take Action
- Luxury brands have to deliver exceptional quality -- They can't rest solely upon brand name or reputation
- >>Luxury Marketers: Take Action
- The Good-The Bad- The Ugly in the current recession
- Figure 20: Changes made in shopping due to recession
- >>Luxury Marketers: Take Action
- >>Luxury Marketers: Take Action
- >>Luxury Marketers: Take Action
- >>Luxury Marketers: Take Action
- >>Luxury Marketers: Take Action
- >>Luxury Marketers: Take Action
- Overview Attitude Statements
- Figure 21: Attitudes Statements Agreement
- Chapter 4: Luxury Consumers and their Changing Attitudes toward their Luxury Lifestyles
- How affluents get their biggest luxury kicks - From luxuries for their homes, their person or those they experience . 75
- Figure 22: Source of Greatest Luxury Satisfactions (2009 & 2006)
- Demographic distinctive
- Figure 23: Source of Greatest Luxury Satisfactions by Age (2009)
- Figure 24: Experience as Source of Greatest Personal Satisfaction by Generation (2009)
- >>Luxury Marketers: Take Action
- Attributes that Most Influence Affluents in their Luxury Purchases
- Figure 25: Attributes of High-End Purchases that Most Influence Purchasers to Buy
- >>Luxury Marketers: Take Action
- Demographic distinctive in what influences consumer in their luxury purchases
- Figure 26: Attributes of High-End Purchases that Most Influence Purchasers to Buy by Gender
- >>Luxury Marketers: Take Action
- Attitudes about Affluent's Luxury Lifestyles
- Figure 27: Attitudes about Luxury Lifestyles -- Level of Agreement
- >>Luxury Marketers: Take Action
- Experiential value of the luxury lifestyle increases with age
- Materialistic pursuit of luxury linked to income
- Figure 28: Attitudes about Luxury Lifestyles -- Strongly Agree by Income
- >>Luxury Marketers: Take Action
- Figure 29: Number of Affluent Households 2008 Census
- Figure 30: Coach Purchase Incidence 1Q07-2Q09
- Chapter 5: Personalities of Luxury
- Luxury Marketers: Meet Your Customers
- Figure 31: Five Personalities of Luxury
- X-Fluents Grow in Share of the Luxury Consumer Market
- Figure 32: Personalities of Luxury, 2009, 2007 & 2003
- >>Luxury Marketers: Take Action
- New Luxury Consumer Personality Emerged in 2007 and Remains a Force in the Current Market
- Personalities' Attitudes toward Luxury
- Figure 33: Attitudes about Luxury by Personality Segment
- Luxury Personalities and Trends in Spending on Luxuries
- Figure 34: Index of Average Spending on Luxury by Personality Types
- Personalities' feelings about their current financial status and future status
- Demographics that define the personalities
- Figure 35: Average Income by Personality
- Field Guide to the Five Luxury Personalities
- Figure 36: Field Guide to the Luxury Personalities
- >>Luxury Marketers: Take Action
- How to Sell to the Different Luxury Personalities
- Selling to X-Fluents
- Selling to Aspirers
- Selling to Butterflies
- Selling to Cocooners
- Selling to Temperate Pragmatists
- Chapter 6: Maximizing Opportunities in the Luxury Drought
- Trend #1— Change in Consumers' Mindset Dramatic, Lasting
- Figure 37: Makeup of Luxury Market by Generation
- Far reaching impact of affluents on the American economy
- >>Luxury Marketers: Take Action
- Trend #2—Luxury Purchase Behavior In Transition
- >> Luxury Marketers: Take Action
- Trend #3 - Luxury Consumers Are Putting Themselves into a Holding Pattern
- >> Luxury Marketers: Take Action
- >> Luxury Marketers: Take Action
- Trend #4 - Status and Image Don't Count for Much Anymore
- >> Luxury Marketers: Take Action
- Trend #5 - Value Is the New Currency in the Luxury Market
- >> Luxury Marketers: Take Action
- Trend #6 - Align Brands with New Psychology and New Issues that Drive Luxury Consumers
- >> Luxury Marketers: Take Action
- Doing Good Is Good Business
- >> Luxury Marketers: Take Action
- Trend #7 - Reward Affluent Customers with Loyalty Programs
- >> Luxury Marketers: Take Action
- Trend #8 - The Internet is a Shopping Solution for the Time-Poor Affluent Shopper
- >> Luxury Marketers: Take Action
- Conclusion - We All are Looking for a Crystal Ball that Helps Us See the Future of our Business and our Market
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