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Topline Results: 4Q2006 Luxury Consumer Tracking Study Fielded January 2007

Published by: Unity Marketing Inc.

Published: Mar. 25, 2007 - 71 Pages


Table of Contents


Chapter 1 - Introduction

Attitudes about Status

Figure 1: Attitudes about Status

Personalities of Status

Figure 2: Personalities of Status

Figure 3: Status Personalities Attitudes

Consensus Connie Goes Along with the Status Quo

Sarah the Status Seeker Places a Priority on Prestige

Quality Magnet Martha Is Driven to Buy the Best

Anti-Status Andy Rejects the Trappings of Status

Lifecycle of Luxury Brands’ Status Tied to Consumers’ Age

Figure 4: Status Attitudes Most Closely Associated with Younger Consumers13

Figure 5: Anti-Status Attitudes Most Closely Associated with Older Luxury

Consumers

Maintaining Luxury Consumers’ Desire for Status Through the Acquisition of Luxury Is Good for

Luxury Marketers14

Counter Trend toward Anti-Status Is Taking Hold

Luxury Lifestyle Changes

Figure 6: Luxury Consumers' LIfestyle Changes 2006 & Proj. 2007

Luxury Consumers’ Plans for Home Changes Reduced from 2005

Figure 7: Luxury Consumers' Home Plans 2005 (2Q2005 Luxury Tracking),2006 and Proj. 2007

Luxury Consumers Remain Value-Oriented

Figure 8: Last Purchase Bought on Sale or at a Discount

Chapter 2 — Luxury Tracking Study Topline Findings

Luxury consumer spending declines in 4Q2006

Figure 9: Luxury Consumption Index thru 4Q2006

Spending on Home Luxuries Dropped, While Personal Luxury Spending Grew

Luxury Consumers’ Feelings of Financial Well-Being Improved Slightly at end of Fourth Quarter

Figure 10: Financial Well Being

Luxury Consumers Report Moderation in Spending on Luxury

Figure 11: Luxury Spending Trends Past Twelve Months

Luxury Consumers Are More Moderate in Their Spending Expectations

Figure 12: Expected Spending on Luxury Next 12 Months

Luxury Consumers’ Confidence in Financial Health of the Country Moderating

Figure 13: Overall Financial Health of Country

Luxury Consumers Confident of Their Personal Ability to Handle Economic Turmoil

Figure 14: Financial Prospects Next Twelve Months

Total Luxury Purchase Incidence

Figure 15: Overall Luuxry Purchase Incidence (All Affluent Consumers)

Luxury Purchase Incidence for 4Q2006

Figure 16: Luxury Purchase Incidence

Luxury Consumer Purchase Incidence by Income Segments

Figure 17: Luxury Consumer Purchase Incidence by Income Segment

Luxury Consumers’ Average Spending Drops in Fourth Quarter

Figure 18: Average Spending on Luxury

Super-Affluents Didn’t Spend to Their Capacity in 4Q2006

Figure 19: Luxury Spending by Income Segment

In 4Q2006, GenXers Out Spent the Baby Boomers

Figure 20: Luxury Spending by Generation - GenXers and Boomers

Men Spent More than Women in the Fourth Quarter

Figure 21: Luxury Spending by Gender

Luxury Market Declined Slightly in 4Q2006, with Sharpest Drop in Automobiles, but with Big

Boost in Personal Luxuries

Figure 22: Luxury Market Potential

Non-Store Retailers Continue Their Vital Role in Luxury Shopping

Figure 23: Where People Shopped for Home and Personal Luxuries

Nordstrom Takes Lead as Luxury Shoppers’ Favorite Luxury Department Store and Target Is

Tops for Mass and Discount Stores

Figure 24: Store Brand Usage for Any Luxury Shopping

Luxury Consumers’ Favorite Magazines

Figure 25: Luxury Consumers Favorite Magazines

Appendix A

Quarterly Tracking of Luxury Consumer Purchasing

Information about Status Was Researched in More Depth

Sample Demographics

Income Demographics

Figure 86: Income Demographics

Gender 45

Age Distribution

Figure 87: Age Distribution

Other Demographic Variables

4Q2006 Luxury Tracking Survey

Abstract

In a new study from Unity Marketing, Luxury Tracking 4Q2006 Executive Summary: Luxury Consumers & Status, luxury consumer-insights expert Pam Danziger explores what the anti-status trend means for luxury marketers. The report explains how luxury marketers can target the growing number of affluent consumers who simply don’t see value in spending more - so much more - for status symbol brands. The report also identifies the types of luxury consumers that respond to status positioning and how marketers can build the status allure of their brands while not antagonizing the anti-status consumers who think of buying status symbols as ‘un-cool.’

The research includes:
• Luxury consumers attitudes about status and luxury;
• A profile of the four status personalities - Status-seeking Sarah, Consensus Connie, Quality Magnet Martha and Anti-Status Andy - and their distinctive attitudes toward status;
• How the luxury consumers’ attitudes toward status translates into different spending patterns in luxury;
• Key demographics that identify consumers’ attitudes toward status;
• How luxury marketers’ can use status and anti-status positioning to promote their branding messages.

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