| | | | | segments of the affluent market are reducing or |
| | | | deferring expenditures (and which are not) due to |
| | | | | current economic conditions, why they are reducing |
| Abstract | | | | their expenditures, and for what types of products and |
| The 16th in a continuing series of research reports | | | | services spending is being cut back. Related to this are |
| based on twice-yearly surveys of the most affluent | | | | questions regarding the existence of and affect on |
| 10% of U.S. households, this survey was designed to | | | | spending of feeling self-conscious about their financial |
| answer 7 important questions about marketing to the | | | | situation being stronger or better than that of their |
| affluent and luxury consumers: | | | | friends and family (i.e. the concepts of "stealth wealth" |
| Should you be concerned about the prevalence of the | | | | and "luxury shame" that have been advanced by |
| concepts of "stealth wealth" and "luxury shame"? | | | | some retail and luxury consultants). |
| What is the "new normal" and will the affluent return to | | | | Also included were questions about spending plans for |
| pre-recession levels of spending? | | | | Christmas and Hanukah gifts, the factors that will |
| Which segments of the affluent have been reducing | | | | influence their return to pre-recession levels of |
| deferring expenditures, which segments will do so over | | | | spending (related to the concept of the "new normal"), |
| the next 12 months, and which segments are not | | | | expected percentage change in 2009 income, |
| cutting back? | | | | percentage of income to be contributed to savings, |
| What are the spending plans for December holiday | | | | and estimated time to achieve the end of the |
| gifts? | | | | recession, an 8% rate of unemployment, the Dow |
| Which of 8 major expenditures do the affluent expect | | | | Jones Index at 11,500, and a 20% increase in the value |
| to make during the next 12 months? | | | | of their savings and their home. |
| How do the affluent expect to change their spending | | | | The surveys track plans for major purchases |
| for 17 products and services during the next 12 | | | | (vacation homes, primary residences, home remodeling, |
| months? | | | | automobiles, boats, and cruises) during the next 12 |
| What do the affluent expect of the stock market, | | | | months. The survey also tracks anticipated changes in |
| business conditions, and their personal income during | | | | spending during the next 12 months for 17 categories |
| the next 12 months? | | | | of products and services. These include fine jewelry |
| Focused on the wealthiest 11.2 million households with | | | | and watches, domestic and international travel, dining in |
| an average $3.1 million net worth (as determined by | | | | casual and upscale restaurants, furniture, major |
| The Federal Reserve Board) these surveys regularly | | | | appliances, entertainment equipment, home computer |
| measure and track their 12-month outlook for the | | | | equipment, entertainment, recreational activities, |
| economy, the stock market and their personal | | | | collectibles, designer and non-designer apparel, and |
| earnings, savings, investment objectives, and spending | | | | charitable and political contributions. |
| plans for 17 product categories and 8 major | | | | For much of the preceding, the report shows historical |
| expenditures. | | | | trend data and data by demographic segment within |
| This survey contained questions to help identify which | | | | the overall affluent population. |