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The Affluent Consumer Market in the U.S.

November 1, 2009


In early 2007, when the last edition of Packaged Facts The Affluent Consumer Market in
the U.S. was published, affluent consumers in America as well as wealthy individuals
around the globe were going about their business of making, borrowing and spending
money in blissful ignorance of the perfect financial storm that lay ahead. At the time, it
was unimaginable that the housing bubble would deflate and leave behind a wreckage
of foreclosures and worthless subprime mortgage securities. It was unthinkable that the
stock market would collapse, financial markets would come close to imploding and a
storied institution such as Lehman Brothers would simply disappear from the Wall Street
landscape. Practically no one could foresee the onset of the most severe recession in
more than 70 years.

The 2009 edition of Packaged Facts The Affluent Consumer Market in the U.S. provides
a timely, in-depth analysis of how affluent consumers are responding to the most
profound economic crisis since the Great Depression. The report uses multi-year data
from Experian Simmons National Consumer Studies to track affluent consumer attitudes
and behavior from the years preceding the onset of the Great Recession into 2009. This
trend analysis gives marketers an insightful, up-to-date view of what’s changed and
what’s stayed the same in the psyche and behavior of affluent consumers, who account
for 22% of the nation’s households but still generate more than half of the household
income of the country and remain responsible for more than one-third of all consumer
spending.

This Packaged Facts report begins with an assessment of the strategic trends shaping
the affluent consumer market today, including a data-driven analysis of how affluent
consumers are coping—or not—with the Great Recession. The next chapter describes
how marketers are adapting to change in the affluent consumer market and highlights
key opportunities in what remains the single most attractive market segment in the
American consumer economy. Following a chapter that includes an in-depth
demographic profile of affluent consumers, the report assesses the size of the affluent
market today and projects its growth through 2014.
The second section of the report examines how affluent consumers manage and spend
money. It includes a chapter offering insights into changes in the attitudes of financial
consumers toward risk and includes an analysis of credit card use and ownership of
insurance policies and investments. The next chapter explores affluent consumer
spending and shopping patterns. It includes a trend analysis of affluent consumer
expenditures from 2005 through 2008 that demonstrates where affluent consumers are
cutting back and in some cases adding to their household budgets. It also provides an
overview of the behavior of affluent shoppers—in stores, online and from catalogs.

The third section of the report includes separate chapters highlighting key aspects of
affluent consumer behavior. These include chapters on health and well-being, affluent
consumers and their homes and cars, how affluent consumers spend leisure time and
affluent consumers and the media.



Table of Contents

Chapter 1 Executive Summary
Background
      Introduction
      Overview of the Report
Scope and Methodology
      Scope of the Market
      Methodology
Strategic Trends in the Affluent Consumer Market
      Research Suggests Affluent May Feel the Recession More
      Average Income of Super-Affluent Subject to More Ups and Downs
      Pessimism Reigns among Super-Affluent Consumers
      Affluent More Afflicted by Feelings of Financial Insecurity
      Even the Super-Affluent Lose Their Mojo
      Spending Plans Reined In
      Dividend Income Down, Unemployment Compensation Up
      Increase in Household Net Worth for First Time in Two Years Fosters Optimism
      Wall Street Bonuses Expected to Rebound in 2009
      Optimism Starts to Return among Affluent Consumers
      More Affluent Shoppers in High-End Stores
Taking Advantage of Affluent Consumer Market Opportunities
      The New Normal Challenges Marketers
      Affluent Buyers Search for Value
      Marketers Combat “Luxury Shame”
      “Stealth Sales” On the Increase
      Some Marketers Focus on Protecting the Brand
      Discount High Fashion Websites Thrive
      Affluent Consumers Continue to Offer Most Attractive Opportunities
The Demographics of Affluence
Population of Affluent Consumers Tops 61 Million
      Affluent Consumers Disproportionately Non-Hispanic White
      Education Differentiates Affluent Consumers
      Few Retirees among Affluent Consumer Population
      Multiple Earners Common in Affluent Households
      Marriage More Common
      Affluent Households Are Larger
      Northeast Has the Most Super-Affluent
      Affluent More Likely to Congregate in Urban Centers
Looking Ahead: The Affluent Consumer Market in 2010 and Beyond
      Number of Affluent Households Tops 25 Million
      Affluent Generate More than Half of U.S. Household Income
      Affluent Consumer Market Will Grow 23% by 2014
How Affluent Consumers Manage Their Money
      Affluent Lose Appetite for Risk
      Super-Affluent Show Increasing Interest in Getting Financial Information
      Choice of Banking Institutions Differs across Income Lines
      Frequent Credit Card Use a Hallmark of Affluence
      Even Affluent Carry Balances on Credit Cards
      Debit Cards Used Frequently
      Paying Bills Online Popular among Affluent
      Affluent Taxpayers Look to CPAs
How Affluent Consumers Spend Their Money
      Affluent Consumers Wield Ever-Increasing Influence
      Huge Spending Gap between Affluent and Non-Affluent Consumers
      Expenditure Patterns Reflect Differences in Available Choices
      Highly Affluent Consumers Cut Expenditures in Great Recession
      Affluent Shoppers Attuned to Brand Names
      Affluent Consumers Are Careful Shoppers
      Incentive Offers Appeal to Affluent Consumers
      Super-Affluent Are Big Online Spenders
      Affluent Consumers Turn to Catalogs More Often
      Keeping up with Fashion More Important to Affluent Consumers
Taking Care of Themselves: Health and Well-Being in the Affluent Consumer
Market
      Exercise Has High Priority
      Fewer Wimps among the Affluent
      Affluent Healthier than Other Americans
      Visits to Doctors More Common
      Trust in Physicians Lower
      Super-Affluent Will Pay More for Medications
      Healthy Eating Important to Affluent Consumers
      Losing Weight a High Priority for Affluent Consumers
Affluent Consumers and Their Homes and Cars
      Home Décor of Interest to the Affluent
      Affluent Lead Way in Home Improvement Market
Affluent Big Spenders in Household Furnishings Stores
     Organic Food a Must for Many Super-Affluent Chefs
     New Cars More Likely to Be Found in Affluent Owners’ Garages
     Foreign Cars Highly Rated
     Multiple Vehicles More Common
     One in Four Affluent Consumers Plans to Buy New Vehicle in Next Year
How Affluent Consumers Spend Their Leisure Time
     Affluent Consumers More Active in Their Spare Time
     Audio Books Favored by Super-Affluent Readers
     Affluent Households Filled with Electronics Gear
     Affluent Prove Tough Customers for Wireless Service Providers
     Affluent Heavy Users of Internet
     Live Entertainment Events Attract More Affluent Consumers
     Affluent Consumer Segment Includes More Frequent Moviegoers
     Super-Affluent Consumers Are Frequent Travelers
     Interest in Cruise Ship Vacations Rebounds among Top Tiers of Affluent
     Consumers
     Affluent Consumers and the Media
     Newspapers Maintain Hold on Super-Affluent
     Affluent Viewers less Likely to Turn to TV for Information
     Premium Cable a Fixture in Affluent Homes
     TV More Popular among Affluent Men than Women
     Radio Important Information Source for Affluent Men
     Internet Changes Media Habits of Affluent
     Cellphone Important Media Platform for Affluent
     Affluent Consumers Pay Attention to Out-of-Home Ads
     Product Placement Effective Way to Reach Super-Affluent Consumers

Section I Overview of the Market

Chapter 2 Strategic Trends in the Affluent Consumer Market
Affluent Consumers in the Great Recession
      Affluent Consumer Population Peaked in 2007
      Table 2-1: Growth in the Population of Affluent Consumers by Selected Time
      Periods, 2005-2009
      Table 2-2: Number of Affluent Households Identified by Experian Simmons
      National Consumer Study, Selected Time Periods 2005-2009
      Survey Details Global Decline in Population of the Very Rich
      Wealthy in the U.S. Share the Pain of Their Counterparts around the World
      Research Suggests Affluent May Feel the Recession More
      Average Income of Super-Affluent Subject to More Ups and Downs
      Figure 2-1: Average Household Income of Super-Affluent Consumers, 2000-2008
      Table 2-3: Mean Household Income 2000-2008, Super-Affluent vs. All Other
      Consumers
      Affluent More Likely to Claim to Be Worse Off Financially
      Table 2-4: Financial Status of Affluent and Non-Affluent Consumers, Fall 2008
      vs. Spring 2009
Pessimism Reigns among Super-Affluent Consumers
      Table 2-5: Economic Outlook of Affluent and Non-Affluent Consumers, Fall 2008
      vs. Spring 2009
      Affluent More Afflicted by Feelings of Financial Insecurity
      Table 2-6: Percent of Affluent and Non-Affluent Consumers Who Feel Financially
      Secure by Selected Time Periods, 2005-2009
      Even the Super-Affluent Lose Their Mojo
      Table 2-7: Percent of Affluent and Non-Affluent Consumers Expressing Low
      Level of Consumer Confidence by Selected Time Periods, 2005-2009
      Table 2-8: Percent of Affluent and Non-Affluent Consumers Expressing High
      Level of Consumer Confidence by Selected Time Periods, 2005-2009
      Figure 2-2: Percent Expressing Low Consumer Confidence, Super-Affluent vs.
      Non-Affluent Consumers
      Figure 2-3: Percent Expressing High Consumer Confidence, Super-Affluent vs.
      Non-Affluent Consumers
      Spending Plans Reined In
      Table 2-9: Spending Plans of Affluent vs. Other Consumers, Fall 2008 vs. Spring
      2009
      Affluent More Concerned about Their Financial Future in the Event of Job Loss
      Affluent Consumers Surprisingly Hard Hit by Job Losses and Business Failures
      Table 2-10: Percent of Affluent and Non-Affluent Consumers Reporting They
      Lost Job, Were Laid Off or Went Out of Business by Selected Time Periods,
      2005-2009
      Dividend Income Down, Unemployment Compensation Up
      Figure 2-4: Average Income from Interest, Dividends, Rental Income and Other
      Property Income, Highly and Super-Affluent Consumer Units, 2005-2008
      Figure 2-5: Aggregate Income from Unemployment Compensation and Veterans
      Benefits, Highly and Super-Affluent Consumer Units, 2005-2008
      Affluent Living in Trophy Houses Feel Pinch
      Figure 2-6: Average Market Value of Homes Owned by Highly and Super-
      Affluent Consumers by Selected Periods, 2004-2008
      Figure 2-7: Number of Affluent Consumers Living in Houses Worth $1 Million or
      More by Selected Periods, 2005-2009
A Glimmer of Hope in the Affluent Consumer Market
      Affluent Consumer Market Starts to Stabilize
      Increase in Household Net Worth for First Time in Two Years Fosters Optimism
      Wall Street Bonuses Expected to Rebound in 2009
      Optimism Starts to Return among Affluent Consumers
      More Affluent Shoppers in High-End Stores
      Table 2-11: Number of Highly and Super-Affluent Consumers Shopping in
      Selected High-End Retail Stores in Last Three Months, 2007-2009

Chapter 3 Taking Advantage of Affluent Consumer Market Opportunities
How Marketers Are Adapting to Change in the Affluent Consumer Market
     The New Normal Challenges Marketers in Affluent Consumer Market
     Affluent Buyers Search for Value
Table 3-1: Changes in Shopping Behavior of Super-Affluent Consumers by
      Selected Time Periods, 2005-2009
      Table 3-2: Number of Highly and Super-Affluent Consumers Shopping at
      Nordstrom and Nordstrom Rack, April 2008-December 2008 vs. November 2008-
      June 2009
      Figure 3-1: Percent of Super-Affluent Consumers Shopping at Costco in Last
      Three Months by Selected Time Periods, 2008-2009
      Marketers Combat “Luxury Shame”
      “Stealth Sales” On the Increase
      Some Marketers Focus on Protecting the Brand
      Luxury Marketers Move Online
      Discount High Fashion Websites Thrive
      Customization Used as Strategy to Lure Affluent Buyers
Selected Opportunities in the Affluent Consumer Market
      Affluent Consumers Continue to Offer Most Attractive Opportunities
      Table 3-3: Average Household Income, Affluent vs. Other Households
      Table 3-4: Average Annual Expenditures, Affluent vs. Other Consumer Units
      Affluent Provide Bulk of Shoppers for Many Retailers
      Table 3-5: Selected Affluent Consumer Market Opportunities Related to
      Shopping in Stores in Last Three Months
      Table 3-6: Selected Affluent Consumer Market Opportunities Related to Catalog
      Shopping
      Affluent Consumers Biggest Spenders Online
      Table 3-7: Selected Affluent Consumer Market Opportunities Related to Online
      Shopping
      Affluent Consumers Prime Targets for Consumer Electronics Marketers
      Table 3-8: Selected Affluent Consumer Market Opportunities Related to
      Ownership of Cellphones
      Table 3-9: Selected Affluent Consumer Market Opportunities Related to
      Consumer Electronics
      Leisure Pursuits of Affluent Provide Multiple Opportunities
      Table 3-10: Selected Affluent Consumer Market Opportunities Related to Leisure
      Activities
      Affluent Consumers Vital to Travel Industry
      Table 3-11: Selected Affluent Consumer Market Opportunities Related to Travel
      Affluent Critical Element in Home Improvement Market
      Table 3-12: Selected Affluent Consumer Market Opportunities Related to Home
      Improvements and Furnishings
      Affluent Hold Key to Automotive Market
      Table 3-13: Selected Affluent Consumer Market Opportunities Related to
      Automotive Vehicles
      Affluent Main Driver of Financial Services
      Table 3-14: Selected Affluent Consumer Market Opportunities Related to
      Financial Services
      Table 3-15: Selected Affluent Consumer Market Opportunities Related to
      Investments Owned
Chapter 4: The Demographics of Affluence
Demographic Profile of Affluent Consumers
     Population of Affluent Consumers Tops 61 Million
     Table 4-1: Number of Affluent U.S. Adults, 2009
     Gen-Xers and Younger Boomers Predominate
     Table 4-2: Affluent Consumers by Gender and Age Group
     Affluent Consumers Disproportionately Non-Hispanic White
     Table 4-3: Households with Income of $100,000 or More by Race and Hispanic
     Origin, 2008
     Education Differentiates Affluent Consumers
     Table 4-4: Affluent Consumers by Educational Achievement
     Few Retirees among Affluent Consumer Population
     Table 4-5: Employment Profile of Affluent Consumers
     Multiple Earners Common in Affluent Households
     Table 4-6: Number of Employed Adults in Household, Affluent vs. Other
     Consumers
     Vast Majority of Affluent Consumers Own Homes
     Table 4-7: Affluent Consumers by Homeownership Status
     Vacation Homes Part of Super-Affluent Lifestyle
     Table 4-8: Ownership of Vacation Homes, Affluent vs. Other Consumers
     Marriage More Common
     Table 4-9: Affluent Consumers by Marital Status
     Affluent Households Are Larger
     Table 4-10: Affluent Households by Size of Household and Presence of Children
Where Affluent Consumers Live
     Northeast Has the Most Super-Affluent
     Table 4-11: Affluent Consumers by Region of Residence
     Affluent More Likely to Congregate in Urban Centers
     Table 4-12: Percent of Affluent Consumers Living in Selected Metro Markets
     New York Metro Area Tops List of Affluent Metro Areas
     Table 4-13: 40 Largest Metropolitan Areas Ranked by Number of Affluent
     Households
     Silicon Valley and Suburban Connecticut Have Highest Concentration of Affluent
     Households
     Table 4-14: 40 Largest Metropolitan Areas Ranked by Affluent Households as
     Percent of All Households in Area

Chapter 5 Looking Ahead: The Affluent Consumer Market in 2010 and Beyond
Size of the Affluent Market
      Defining the Affluent Market
      Number of Affluent Households Tops 25 Million
      Table 5-1: Number of Affluent Households by Amount of Household Income,
      2008
      Table 5-2: Affluent Consumer Segments as Percentage of Affluent Consumer
      Households
      Affluent Generate More than Half of U.S. Household Income
Table 5-3: Aggregate Household Income, Affluent vs. Non-Affluent by Category
      of Affluent Household, 2008
      Super-Affluent Have Super Impact on Affluent Consumer Market
      Table 5-4: Aggregate Income of Affluent Households by Category of Affluent
      Household
Factors Affecting the Growth of the Affluent Market
      Optimism Gradually Returning amidst Uncertainty about the Future
      Slow Economic Growth Expected in Near Term
      Forecasters See Gradual Uptick in Global Luxury Market
      American Affluent Consumers Expected to Lose Ground in Global Shift
Projected Growth of the Affluent Consumer Market
      Forecasting Assumptions Analyzed
      Affluent Consumer Market Will Grow 23% by 2014
      Table 5-5: Projected Size and Growth of Affluent Market, 2009-2014

Section II How Affluent Consumers Manage and Spend Money

Chapter 6 How Affluent Consumers Manage Their Money
Key Trends in Attitudes toward Personal Finances
      Affluent Lose Appetite for Risk
      Table 6-1: Attitudes toward Risk, Affluent vs. Non-Affluent Consumers by
      Selected Time Periods 2005-2009
      Super-Affluent Show Increasing Interest in Getting Financial Information
      Table 6-2: Interest in Obtaining Financial Information, Affluent vs. Non-Affluent
      Consumers by Selected Time Periods 2005-2009
Financial Management Practices
      Choice of Banking Institutions Differs across Income Lines
      Table 6-3: Percent Owning Bank Accounts by Type of Account and Institution,
      Affluent vs. Other Consumers
      Frequent Credit Card Use a Hallmark of Affluence
      Table 6-4: Use of Credit Cards, Affluent vs. Other Consumers
      Even Affluent Carry Balances on Credit Cards
      Table 6-5: Percent of Credit-Card Holders Paying Off Entire Credit-Card Balance
      Each Month, Affluent vs. Other Consumers
      Debit Cards Used Frequently
      Table 6-6: Ownership and Use of ATM/Debit Cards, Affluent vs. Other
      Consumers
      Paying Bills Online Popular among Affluent
      Table 6-7: Methods Used to Pay Bills, Affluent vs. Other Consumers
      Affluent Taxpayers Look to CPAs
      Table 6-8: Methods of Preparing Tax Returns in Last 12 Months, Affluent vs.
      Other Consumers
Ownership of Investments and Insurance
      Investment Ownership Analyzed
      Table 6-9: Ownership of Investments, Affluent vs. Other Consumers
      Insurance Vital Part of Affluent Lifestyle
Table 6-10: Ownership of Property and Vehicle Insurance, Affluent vs. Other
      Consumers
      Table 6-11: Value of Life Insurance Owned, Affluent vs. Other Consumers
      Table 6-12: Percent with Health Insurance by Type Owned, Affluent vs. Other
      Consumers

Chapter 7 How Affluent Consumers Spend Their Money
Overview
      Consumer Units Defined
      Affluent Consumers Have Disproportionate Impact on American Economy
      Table 7-1: Expenditures of Consumer Units as Percent of Aggregate Consumer
      Expenditures in the United States in 2008, Affluent vs. Non-Affluent
      Affluent Consumers Wield Ever-Increasing Influence
      Table 7-2: Expenditures of Consumer Units as Percent of Aggregate Consumer
      Expenditures in the United States 2003-2008, Affluent vs. Non-Affluent
      Huge Spending Gap between Affluent and Non-Affluent Consumers
      Figure 7-1: Average Annual Expenditures in 2008, Affluent vs. Other Consumers
      Many Differences between Affluent and Other Consumer Units
      Table 7-3: Profile of Affluent and Other Consumer Units
      Expenditure Patterns Reflect Differences in Available Choices
      Table 7-4: Percent of Aggregate Consumer Expenditures, Affluent vs. Other
      Consumer Units
How the Great Recession Has Affected the Way the Most Affluent Consumers
Spend Money
      Latest Government Data Show Profound Shifts in Spending by Top Ranks of
      Affluent Consumer Units
      Highly Affluent Consumers Cut Expenditures
      Restaurant Meals More Popular but Alcohol Consumption Down
      Less Spent on Travel and Vacations
      More of the Most Affluent Consumers Living in Rented Homes
      Figure 7-2: Aggregate Expenditures on Rented Dwellings by Highly and Super-
      Affluent Consumer Units, 2005-2008
      Spending on Phone Service Stays Constant
      Child Care Expenditures Drop Dramatically but Spending on Housekeeping and
      Lawn-Care Services Stays the Same
      Spending on Household Furnishings Declines Precipitously
      Affluent Women Spend Less for Clothing, Men Spend about the Same
      Affluent Spending on New Cars Drops off Cliff
      Figure 7-3: Aggregate Expenditures on New Vehicles by Highly and Super-
      Affluent Consumer Units, 2005-2008
      Affluent Spend More on Car Repairs
      Affluent Consumers Cut Back on Medical Spending
      Spending on Pets Goes Up
      Spending on Personal Care Shows Steady Increase
      Table 7-5: Trends in Spending by Highly and Super-Affluent Consumer Units,
      2005-2008
When Affluent Consumers Go Shopping in Stores
Super-Affluent Shoppers Have Different Profile
      Table 7-6: Shopping Profile, Affluent vs. Other Consumers
      Affluent Shoppers Attuned to Brand Names
      Table 7-7: Attitudes toward Brands, Affluent vs. Other Consumers
      Affluent Consumers Are Careful Shoppers
      Table 7-8: Attitudes toward Prices and Sales, Affluent vs. Other Consumers
      Incentive Offers Appeal to Affluent Consumers
      Figure 7-3: Percent Using Cents-Off Coupons, Affluent vs. Other Consumers
      Table 7-9: Percent Responding to Incentive Offers, Affluent vs. Other Consumers
      Affluent Consumers Frequent Mall Visitors
      Table 7-10: Percent Visiting Malls in Last 4 Weeks , Affluent vs. Other
      Consumers
      Target the Top Choice of Super-Affluent and Highly Affluent Women
      Table 7-11: Department/Discount Stores Shopped in Last 3 Months, Affluent vs.
      Other Women
      Table 7-12: Department/Discount Stores Shopped in Last 3 Months, Affluent vs.
      Other Men
Online and Catalog Shopping
      Affluent Shoppers Depend on Internet
      Table 7-13: Impact of the Internet on Shopping Behavior, Affluent vs. Other
      Consumers
      Super-Affluent Are Big Online Spenders
      Table 7-14: Total Amount Spent on Internet Orders in Last 12 Months, Affluent
      vs. Other Consumers
      Table 7-15: Items Ordered from the Internet in Last 12 Months, Affluent vs. Other
      Consumers
      Affluent Consumers Turn to Catalogs More Often
      Table 7-16: Profile of Catalog Shoppers, Affluent vs. Other Consumers
Following Fashion
      Keeping up with Fashion More Important to Affluent Consumers
      Table 7-17: Attitudes toward Fashion, Affluent vs. Other Consumers
      Affluent Women More Likely to Buy Clothes
      Table 7-18: Clothing Items and Accessories Bought in Last 12 Months, Affluent
      vs. Other Women
      Table 7-19: Clothing Items and Accessories Bought in Last 12 Months, Affluent
      vs. Other Men
      Watches Important to Super-Affluent
      Table 7-20: Percent Buying Watches in Last 12 Months, Affluent vs. Other
      Consumers
      Affluent Women Use More Personal-Care Products
      Table 7-21: Use of Personal-Care Products, Affluent vs. Other Women
      Table 7-22: Use of Personal-Care Products, Affluent vs. Other Men

Section III Highlights of Affluent Consumer Behavior

Chapter 8 Taking Care of Themselves: Health and Well-Being in the Affluent
Consumer Market
Keeping Fit
      Exercise Has High Priority
      Table 8-1: Attitudes toward Exercise, Affluent vs. Other Consumers
      Frequent Workouts Common
      Table 8-2: Participation in Physical Fitness Programs, Affluent vs. Other Men
      Table 8-3: Participation in Physical Fitness Programs, Affluent vs. Other Women
      Top Sports Linked to Fitness
      Table 8-4: Sports Played in Last 12 Months, Affluent vs. Other Men
      Table 8-5: Sports Played in Last 12 Months, Affluent vs. Other Women
Staying Healthy
      Fewer Wimps among the Affluent
      Table 8-6: Attitudes toward Personal Health, Affluent vs. Other Consumers
      Affluent Healthier than Other Americans
      Table 8-7: Ailments in Last 12 Months, Affluent vs. Other Consumers
      Visits to Doctors More Common
      Table 8-8: Healthcare Professionals Consulted in Last 12 Months, Affluent vs.
      Other Consumers
      Trust in Physicians Lower
      Table 8-9: Trust in Physicians, Affluent vs. Other Consumers
      Super-Affluent Will Pay More for Medications
      Table 8-10: Attitudes toward Brand-Name Medications, Affluent vs. Other
      Consumers
      Fewer Cigarette Smokers among the Affluent but Cigars More Popular
      Table 8-11: Use of Tobacco Products, Affluent vs. Other Consumers
      Healthy Eating Important to Affluent Consumers
      Table 8-12: Attitudes toward Healthy Eating, Affluent vs. Other Consumers
      Losing Weight a High Priority for Affluent Consumers
      Table 8-13: Reasons for Watching Diet, Affluent vs. Other Consumers
      Table 8-14: Attitudes toward Dieting, Affluent vs. Other Consumers

Chapter 9 Affluent Consumers and Their Homes and Cars
Affluent Consumers and Their Homes
      Affluent Consumers Like to Entertain at Home
      Table 9-1: Attitudes toward the Home, Affluent vs. Other Consumers
      Home Décor of Interest to the Affluent
      Table 9-2: Attitudes toward Home Improvement, Affluent vs. Other Consumers
      Affluent Lead Way in Home Improvement Market
      Table 9-3: Profile of Home Improvers, Affluent vs. Other Consumers
      Affluent Big Spenders in Household Furnishings Stores
      Table 9-4: Percent Purchasing Household Furnishings, Bed, Bath, Linens and
      Appliances in Last 12 Months, Affluent vs. Other Consumers
Eating at Home
      Cooking Attracts Super-Affluent Consumers
      Table 9-5: Attitudes toward Cooking, Affluent vs. Other Consumers
      Organic Food a Must for Many Super-Affluent Chefs
      Table 9-6: Importance of Natural and Organic Foods, Affluent vs. Other
      Consumers
Gourmet Foods Appeal
      Table 9-7: Attitudes toward Food Styles, Affluent vs. Other Consumers
      Affluent Like to Experiment with New Foods
      Table 9-8: Attitudes toward Experimenting with New Foods, Affluent vs. Other
      Consumers
The Affluent Auto Owner
      Affluent Drivers Like to Drive Fast
      Table 9-9: Driving Habits and Vehicle Use, Affluent vs. Other Consumers
      Cars Tied to Self-Image
      Table 9-10: Self-Image and Cars, Affluent vs. Other Consumers
      Affluent Want Cars to be Fun to Drive
      Table 9-11: Criteria for Buying a Car, Affluent vs. Other Consumers
      Auto Safety Important
      Table 9-12: Importance of Auto Safety, Affluent vs. Other Consumers
      New Cars More Likely to Be Found in Affluent Owners’ Garages
      Table 9-13: Attitudes toward New and Used Cars, Affluent vs. Other Consumers
      Foreign Cars Highly Rated
      Table 9-14: Attitudes toward Foreign Cars, Affluent vs. Other Consumers
      Multiple Vehicles More Common
      Table 9-15: Number of Vehicles in Household, Affluent vs. Other Consumers
      Table 9-16: Vehicle Model Type Owned, Affluent vs. Other Consumers
      One in Four Affluent Consumers Plans to Buy New Vehicle in Next Year
      Table 9-17: Next Vehicle Purchase, Affluent vs. Other Consumers
      Dealer Finance Works for Super-Affluent Buyers
      Table 9-18: Method of Purchasing Most Recently Acquired Vehicle, Affluent vs.
      Other Consumers

Chapter 10 How Affluent Consumers Spend Their Leisure Time
Overview
      Affluent Consumers More Active in Their Spare Time
      Table 10-1: Hobbies and Leisure Activities in Last 12 Months, Affluent vs. Other
      Men
      Table 10-2: Hobbies and Leisure Activities in Last 12 Months, Affluent vs. Other
      Women
      Audio Books Favored by Super-Affluent Readers
      Table 10-3: Books Purchased in Last 12 Months, Affluent vs. Other Consumers
Home Entertainment
      Home Electronics Appeal to Affluent
      Table 10-4: Attitudes toward Consumer Electronics, Affluent vs. Other
      Consumers
      Affluent Households Filled with Electronics Gear
      Table 10-5: Ownership of Selected Consumer Electronics Items, Affluent vs.
      Other Consumers
      Digital Photography Enters Affluent Lifestyle
      Table 10-6: Ownership of Cameras, Affluent vs. Other Consumers
      Affluent Prime Customers for Home Electronics Retailers
Table 10-7: Home Electronic Stores Shopped in Last 3 Months, Affluent vs.
      Other Consumers
      Table 10-8: Percent Shopping in Office Supply/Computer Stores in Last 3
      Months, Affluent vs. Other Consumers
      Table 10-9: Amount Spent on Software in Last 12 Months, Affluent vs. Other
      Consumers
Keeping in Touch
      Affluent Depend on Cellphones to Stay Connected
      Figure 10-1: Percent Owning Cellphones, Affluent vs. Other Consumers
      Table 10-10: Use of Cellphone as a Social Tool, Affluent vs. Other Consumers
      Landlines Still Important
      Table 10-11: Use of Cellphones, Affluent vs. Other Consumers
      Affluent Prove Tough Customers for Wireless Service Providers
      Table 10-12: Attitudes toward Wireless Service Providers, Affluent vs. Other
      Consumers
      Affluent Buy Additional Cellphone Services
      Table 10-13: Use of Cellphones, Affluent vs. Other Consumers
The Online Affluent Consumer
      Internet Has Major Impact on the Way Affluent Work and Play
      Figure 10-2: Percent Using the Internet at Home, Affluent vs. Other Consumers
      Table 10-14: Impact of the Internet on Lifestyle , Affluent vs. Other Consumers
      Affluent Heavy Users of Internet
      Table 10-15: Use of the Internet at Home, Affluent vs. Other Consumers
      Online Activities Analyzed
      Table 10-16: Online Activities in Last 30 Days, Affluent vs. Other Men
      Table 10-17: Online Activities in Last 30 Days, Affluent vs. Other Women
      Travel Sites Attract Affluent Consumers
      Table 10-18: Websites Visited in Last 30 Days, Affluent vs. Other Consumers
Going Out
      Hard Times Do Not Keep Affluent Consumers from Going Out
      Table 10-19: Participation in Selected Entertainment Activities by Selected Time
      Periods, 2005-2007
      Live Entertainment Events Attract More Affluent Consumers
      Table 10-20: Attendance at Live Entertainment Events in Last 12 Months,
      Affluent vs. Other Consumers
      Affluent Consumer Segment Includes More Frequent Moviegoers
      Table 10-21: Movie Attendance, Affluent vs. Other Consumers
      Super-Affluent Avoid Fast Food Restaurants
      Table 10-22: Use of Family and Fast Food Restaurants, Affluent vs. Other
      Consumers
The Affluent Traveler
      Affluent Consumers More Likely to Use Travel Agents
      Figure 10-3: Percent Using Travel Agents, Affluent vs. Other Consumers
      Super-Affluent Consumers Are Frequent Travelers
      Table 10-23: Domestic Travel Profile in Last 12 Months, Affluent vs. Other
      Consumers
Most Affluent Consumers Travel Abroad
      Table 10-24: Foreign Travel Profile in Last 3 Years, Affluent vs. Other
      Consumers
      Interest in Cruise Ship Vacations Rebounds among Top Tiers of Affluent
      Consumers
      Table 10-25: Cruise Ship Vacations, Affluent vs. Non-Affluent Consumers by
      Selected Time Periods, 2007-2009

Chapter 11 Affluent Consumers and the Media
Print Media
       Print Media Maintain Hold on Super-Affluent
       Table 11-1: Attitudes toward Print Media, Affluent vs. Other Consumers
       Table 11-2: Readership of Newspapers, Affluent vs. Other Consumers
       Many Magazine Choices Similar
       Table 11-3: Most Popular Magazines, Affluent vs. Other Women
       Table 11-4: Most Popular Magazines, Affluent vs. Other Men
Television and Radio
       Affluent Viewers less Likely to Turn to TV for Information
       Table 11-5: Attitudes toward Television, Affluent vs. Non-Affluent Consumers
       Premium Cable a Fixture in Affluent Homes
       Table 11-6: Access to Cable Television, Affluent vs. Non-Affluent Consumers
       Fox Gets Nod from Affluent
       Table 11-7: Primetime Network Viewing Habits, Affluent vs. Non-Affluent
       Consumers
       TV More Popular among Affluent Men than Women
       Table 11-8: Most Popular Cable Television Channels, Affluent vs. Other Women
       Table 11-9: Most Popular Cable Television Channels, Affluent vs. Other Men
       Table 11-10: Sports Events Watched Frequently on TV, Affluent vs. Other Men
       Radio Important Information Source for Affluent Men
       Table 11-11: Attitudes toward Radio, Affluent vs. Other Consumers
       Table 11-12: Most Popular Radio Formats, Affluent vs. Other Men
       Table 11-13: Most Popular Radio Formats, Affluent vs. Other Women
New Media
       Internet Changes Media Habits of Affluent
       Table 11-14: Impact of the Internet on Traditional Media Usage, Affluent vs. Non-
       Affluent Consumers
       Cellphone Important Media Platform for Affluent
       Table 11-15: Use of Cellphones as Media Platform, Affluent vs. Other
       Consumers
Receptivity to Advertising
       Super-Affluent Consumers Depend on Ads
       Table 11-16: Attitudes toward Advertising, Affluent vs. Non-Affluent Consumers
       Affluent Consumers Pay Attention to Out-of-Home Ads
       Table 11-17: Impact of Out-of-Home Advertising, Affluent vs. Non-Affluent
       Consumers
       Product Placement Effective Way to Reach Super-Affluent Consumers
       Table 11-18: Impact of Product Placement, Affluent vs. Non-Affluent Consumers
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Affluent Consumer Market in the U.S., The

  • 1.     Get more info on this report! The Affluent Consumer Market in the U.S. November 1, 2009 In early 2007, when the last edition of Packaged Facts The Affluent Consumer Market in the U.S. was published, affluent consumers in America as well as wealthy individuals around the globe were going about their business of making, borrowing and spending money in blissful ignorance of the perfect financial storm that lay ahead. At the time, it was unimaginable that the housing bubble would deflate and leave behind a wreckage of foreclosures and worthless subprime mortgage securities. It was unthinkable that the stock market would collapse, financial markets would come close to imploding and a storied institution such as Lehman Brothers would simply disappear from the Wall Street landscape. Practically no one could foresee the onset of the most severe recession in more than 70 years. The 2009 edition of Packaged Facts The Affluent Consumer Market in the U.S. provides a timely, in-depth analysis of how affluent consumers are responding to the most profound economic crisis since the Great Depression. The report uses multi-year data from Experian Simmons National Consumer Studies to track affluent consumer attitudes and behavior from the years preceding the onset of the Great Recession into 2009. This trend analysis gives marketers an insightful, up-to-date view of what’s changed and what’s stayed the same in the psyche and behavior of affluent consumers, who account for 22% of the nation’s households but still generate more than half of the household income of the country and remain responsible for more than one-third of all consumer spending. This Packaged Facts report begins with an assessment of the strategic trends shaping the affluent consumer market today, including a data-driven analysis of how affluent consumers are coping—or not—with the Great Recession. The next chapter describes how marketers are adapting to change in the affluent consumer market and highlights key opportunities in what remains the single most attractive market segment in the American consumer economy. Following a chapter that includes an in-depth demographic profile of affluent consumers, the report assesses the size of the affluent market today and projects its growth through 2014.
  • 2. The second section of the report examines how affluent consumers manage and spend money. It includes a chapter offering insights into changes in the attitudes of financial consumers toward risk and includes an analysis of credit card use and ownership of insurance policies and investments. The next chapter explores affluent consumer spending and shopping patterns. It includes a trend analysis of affluent consumer expenditures from 2005 through 2008 that demonstrates where affluent consumers are cutting back and in some cases adding to their household budgets. It also provides an overview of the behavior of affluent shoppers—in stores, online and from catalogs. The third section of the report includes separate chapters highlighting key aspects of affluent consumer behavior. These include chapters on health and well-being, affluent consumers and their homes and cars, how affluent consumers spend leisure time and affluent consumers and the media. Table of Contents Chapter 1 Executive Summary Background Introduction Overview of the Report Scope and Methodology Scope of the Market Methodology Strategic Trends in the Affluent Consumer Market Research Suggests Affluent May Feel the Recession More Average Income of Super-Affluent Subject to More Ups and Downs Pessimism Reigns among Super-Affluent Consumers Affluent More Afflicted by Feelings of Financial Insecurity Even the Super-Affluent Lose Their Mojo Spending Plans Reined In Dividend Income Down, Unemployment Compensation Up Increase in Household Net Worth for First Time in Two Years Fosters Optimism Wall Street Bonuses Expected to Rebound in 2009 Optimism Starts to Return among Affluent Consumers More Affluent Shoppers in High-End Stores Taking Advantage of Affluent Consumer Market Opportunities The New Normal Challenges Marketers Affluent Buyers Search for Value Marketers Combat “Luxury Shame” “Stealth Sales” On the Increase Some Marketers Focus on Protecting the Brand Discount High Fashion Websites Thrive Affluent Consumers Continue to Offer Most Attractive Opportunities The Demographics of Affluence
  • 3. Population of Affluent Consumers Tops 61 Million Affluent Consumers Disproportionately Non-Hispanic White Education Differentiates Affluent Consumers Few Retirees among Affluent Consumer Population Multiple Earners Common in Affluent Households Marriage More Common Affluent Households Are Larger Northeast Has the Most Super-Affluent Affluent More Likely to Congregate in Urban Centers Looking Ahead: The Affluent Consumer Market in 2010 and Beyond Number of Affluent Households Tops 25 Million Affluent Generate More than Half of U.S. Household Income Affluent Consumer Market Will Grow 23% by 2014 How Affluent Consumers Manage Their Money Affluent Lose Appetite for Risk Super-Affluent Show Increasing Interest in Getting Financial Information Choice of Banking Institutions Differs across Income Lines Frequent Credit Card Use a Hallmark of Affluence Even Affluent Carry Balances on Credit Cards Debit Cards Used Frequently Paying Bills Online Popular among Affluent Affluent Taxpayers Look to CPAs How Affluent Consumers Spend Their Money Affluent Consumers Wield Ever-Increasing Influence Huge Spending Gap between Affluent and Non-Affluent Consumers Expenditure Patterns Reflect Differences in Available Choices Highly Affluent Consumers Cut Expenditures in Great Recession Affluent Shoppers Attuned to Brand Names Affluent Consumers Are Careful Shoppers Incentive Offers Appeal to Affluent Consumers Super-Affluent Are Big Online Spenders Affluent Consumers Turn to Catalogs More Often Keeping up with Fashion More Important to Affluent Consumers Taking Care of Themselves: Health and Well-Being in the Affluent Consumer Market Exercise Has High Priority Fewer Wimps among the Affluent Affluent Healthier than Other Americans Visits to Doctors More Common Trust in Physicians Lower Super-Affluent Will Pay More for Medications Healthy Eating Important to Affluent Consumers Losing Weight a High Priority for Affluent Consumers Affluent Consumers and Their Homes and Cars Home Décor of Interest to the Affluent Affluent Lead Way in Home Improvement Market
  • 4. Affluent Big Spenders in Household Furnishings Stores Organic Food a Must for Many Super-Affluent Chefs New Cars More Likely to Be Found in Affluent Owners’ Garages Foreign Cars Highly Rated Multiple Vehicles More Common One in Four Affluent Consumers Plans to Buy New Vehicle in Next Year How Affluent Consumers Spend Their Leisure Time Affluent Consumers More Active in Their Spare Time Audio Books Favored by Super-Affluent Readers Affluent Households Filled with Electronics Gear Affluent Prove Tough Customers for Wireless Service Providers Affluent Heavy Users of Internet Live Entertainment Events Attract More Affluent Consumers Affluent Consumer Segment Includes More Frequent Moviegoers Super-Affluent Consumers Are Frequent Travelers Interest in Cruise Ship Vacations Rebounds among Top Tiers of Affluent Consumers Affluent Consumers and the Media Newspapers Maintain Hold on Super-Affluent Affluent Viewers less Likely to Turn to TV for Information Premium Cable a Fixture in Affluent Homes TV More Popular among Affluent Men than Women Radio Important Information Source for Affluent Men Internet Changes Media Habits of Affluent Cellphone Important Media Platform for Affluent Affluent Consumers Pay Attention to Out-of-Home Ads Product Placement Effective Way to Reach Super-Affluent Consumers Section I Overview of the Market Chapter 2 Strategic Trends in the Affluent Consumer Market Affluent Consumers in the Great Recession Affluent Consumer Population Peaked in 2007 Table 2-1: Growth in the Population of Affluent Consumers by Selected Time Periods, 2005-2009 Table 2-2: Number of Affluent Households Identified by Experian Simmons National Consumer Study, Selected Time Periods 2005-2009 Survey Details Global Decline in Population of the Very Rich Wealthy in the U.S. Share the Pain of Their Counterparts around the World Research Suggests Affluent May Feel the Recession More Average Income of Super-Affluent Subject to More Ups and Downs Figure 2-1: Average Household Income of Super-Affluent Consumers, 2000-2008 Table 2-3: Mean Household Income 2000-2008, Super-Affluent vs. All Other Consumers Affluent More Likely to Claim to Be Worse Off Financially Table 2-4: Financial Status of Affluent and Non-Affluent Consumers, Fall 2008 vs. Spring 2009
  • 5. Pessimism Reigns among Super-Affluent Consumers Table 2-5: Economic Outlook of Affluent and Non-Affluent Consumers, Fall 2008 vs. Spring 2009 Affluent More Afflicted by Feelings of Financial Insecurity Table 2-6: Percent of Affluent and Non-Affluent Consumers Who Feel Financially Secure by Selected Time Periods, 2005-2009 Even the Super-Affluent Lose Their Mojo Table 2-7: Percent of Affluent and Non-Affluent Consumers Expressing Low Level of Consumer Confidence by Selected Time Periods, 2005-2009 Table 2-8: Percent of Affluent and Non-Affluent Consumers Expressing High Level of Consumer Confidence by Selected Time Periods, 2005-2009 Figure 2-2: Percent Expressing Low Consumer Confidence, Super-Affluent vs. Non-Affluent Consumers Figure 2-3: Percent Expressing High Consumer Confidence, Super-Affluent vs. Non-Affluent Consumers Spending Plans Reined In Table 2-9: Spending Plans of Affluent vs. Other Consumers, Fall 2008 vs. Spring 2009 Affluent More Concerned about Their Financial Future in the Event of Job Loss Affluent Consumers Surprisingly Hard Hit by Job Losses and Business Failures Table 2-10: Percent of Affluent and Non-Affluent Consumers Reporting They Lost Job, Were Laid Off or Went Out of Business by Selected Time Periods, 2005-2009 Dividend Income Down, Unemployment Compensation Up Figure 2-4: Average Income from Interest, Dividends, Rental Income and Other Property Income, Highly and Super-Affluent Consumer Units, 2005-2008 Figure 2-5: Aggregate Income from Unemployment Compensation and Veterans Benefits, Highly and Super-Affluent Consumer Units, 2005-2008 Affluent Living in Trophy Houses Feel Pinch Figure 2-6: Average Market Value of Homes Owned by Highly and Super- Affluent Consumers by Selected Periods, 2004-2008 Figure 2-7: Number of Affluent Consumers Living in Houses Worth $1 Million or More by Selected Periods, 2005-2009 A Glimmer of Hope in the Affluent Consumer Market Affluent Consumer Market Starts to Stabilize Increase in Household Net Worth for First Time in Two Years Fosters Optimism Wall Street Bonuses Expected to Rebound in 2009 Optimism Starts to Return among Affluent Consumers More Affluent Shoppers in High-End Stores Table 2-11: Number of Highly and Super-Affluent Consumers Shopping in Selected High-End Retail Stores in Last Three Months, 2007-2009 Chapter 3 Taking Advantage of Affluent Consumer Market Opportunities How Marketers Are Adapting to Change in the Affluent Consumer Market The New Normal Challenges Marketers in Affluent Consumer Market Affluent Buyers Search for Value
  • 6. Table 3-1: Changes in Shopping Behavior of Super-Affluent Consumers by Selected Time Periods, 2005-2009 Table 3-2: Number of Highly and Super-Affluent Consumers Shopping at Nordstrom and Nordstrom Rack, April 2008-December 2008 vs. November 2008- June 2009 Figure 3-1: Percent of Super-Affluent Consumers Shopping at Costco in Last Three Months by Selected Time Periods, 2008-2009 Marketers Combat “Luxury Shame” “Stealth Sales” On the Increase Some Marketers Focus on Protecting the Brand Luxury Marketers Move Online Discount High Fashion Websites Thrive Customization Used as Strategy to Lure Affluent Buyers Selected Opportunities in the Affluent Consumer Market Affluent Consumers Continue to Offer Most Attractive Opportunities Table 3-3: Average Household Income, Affluent vs. Other Households Table 3-4: Average Annual Expenditures, Affluent vs. Other Consumer Units Affluent Provide Bulk of Shoppers for Many Retailers Table 3-5: Selected Affluent Consumer Market Opportunities Related to Shopping in Stores in Last Three Months Table 3-6: Selected Affluent Consumer Market Opportunities Related to Catalog Shopping Affluent Consumers Biggest Spenders Online Table 3-7: Selected Affluent Consumer Market Opportunities Related to Online Shopping Affluent Consumers Prime Targets for Consumer Electronics Marketers Table 3-8: Selected Affluent Consumer Market Opportunities Related to Ownership of Cellphones Table 3-9: Selected Affluent Consumer Market Opportunities Related to Consumer Electronics Leisure Pursuits of Affluent Provide Multiple Opportunities Table 3-10: Selected Affluent Consumer Market Opportunities Related to Leisure Activities Affluent Consumers Vital to Travel Industry Table 3-11: Selected Affluent Consumer Market Opportunities Related to Travel Affluent Critical Element in Home Improvement Market Table 3-12: Selected Affluent Consumer Market Opportunities Related to Home Improvements and Furnishings Affluent Hold Key to Automotive Market Table 3-13: Selected Affluent Consumer Market Opportunities Related to Automotive Vehicles Affluent Main Driver of Financial Services Table 3-14: Selected Affluent Consumer Market Opportunities Related to Financial Services Table 3-15: Selected Affluent Consumer Market Opportunities Related to Investments Owned
  • 7. Chapter 4: The Demographics of Affluence Demographic Profile of Affluent Consumers Population of Affluent Consumers Tops 61 Million Table 4-1: Number of Affluent U.S. Adults, 2009 Gen-Xers and Younger Boomers Predominate Table 4-2: Affluent Consumers by Gender and Age Group Affluent Consumers Disproportionately Non-Hispanic White Table 4-3: Households with Income of $100,000 or More by Race and Hispanic Origin, 2008 Education Differentiates Affluent Consumers Table 4-4: Affluent Consumers by Educational Achievement Few Retirees among Affluent Consumer Population Table 4-5: Employment Profile of Affluent Consumers Multiple Earners Common in Affluent Households Table 4-6: Number of Employed Adults in Household, Affluent vs. Other Consumers Vast Majority of Affluent Consumers Own Homes Table 4-7: Affluent Consumers by Homeownership Status Vacation Homes Part of Super-Affluent Lifestyle Table 4-8: Ownership of Vacation Homes, Affluent vs. Other Consumers Marriage More Common Table 4-9: Affluent Consumers by Marital Status Affluent Households Are Larger Table 4-10: Affluent Households by Size of Household and Presence of Children Where Affluent Consumers Live Northeast Has the Most Super-Affluent Table 4-11: Affluent Consumers by Region of Residence Affluent More Likely to Congregate in Urban Centers Table 4-12: Percent of Affluent Consumers Living in Selected Metro Markets New York Metro Area Tops List of Affluent Metro Areas Table 4-13: 40 Largest Metropolitan Areas Ranked by Number of Affluent Households Silicon Valley and Suburban Connecticut Have Highest Concentration of Affluent Households Table 4-14: 40 Largest Metropolitan Areas Ranked by Affluent Households as Percent of All Households in Area Chapter 5 Looking Ahead: The Affluent Consumer Market in 2010 and Beyond Size of the Affluent Market Defining the Affluent Market Number of Affluent Households Tops 25 Million Table 5-1: Number of Affluent Households by Amount of Household Income, 2008 Table 5-2: Affluent Consumer Segments as Percentage of Affluent Consumer Households Affluent Generate More than Half of U.S. Household Income
  • 8. Table 5-3: Aggregate Household Income, Affluent vs. Non-Affluent by Category of Affluent Household, 2008 Super-Affluent Have Super Impact on Affluent Consumer Market Table 5-4: Aggregate Income of Affluent Households by Category of Affluent Household Factors Affecting the Growth of the Affluent Market Optimism Gradually Returning amidst Uncertainty about the Future Slow Economic Growth Expected in Near Term Forecasters See Gradual Uptick in Global Luxury Market American Affluent Consumers Expected to Lose Ground in Global Shift Projected Growth of the Affluent Consumer Market Forecasting Assumptions Analyzed Affluent Consumer Market Will Grow 23% by 2014 Table 5-5: Projected Size and Growth of Affluent Market, 2009-2014 Section II How Affluent Consumers Manage and Spend Money Chapter 6 How Affluent Consumers Manage Their Money Key Trends in Attitudes toward Personal Finances Affluent Lose Appetite for Risk Table 6-1: Attitudes toward Risk, Affluent vs. Non-Affluent Consumers by Selected Time Periods 2005-2009 Super-Affluent Show Increasing Interest in Getting Financial Information Table 6-2: Interest in Obtaining Financial Information, Affluent vs. Non-Affluent Consumers by Selected Time Periods 2005-2009 Financial Management Practices Choice of Banking Institutions Differs across Income Lines Table 6-3: Percent Owning Bank Accounts by Type of Account and Institution, Affluent vs. Other Consumers Frequent Credit Card Use a Hallmark of Affluence Table 6-4: Use of Credit Cards, Affluent vs. Other Consumers Even Affluent Carry Balances on Credit Cards Table 6-5: Percent of Credit-Card Holders Paying Off Entire Credit-Card Balance Each Month, Affluent vs. Other Consumers Debit Cards Used Frequently Table 6-6: Ownership and Use of ATM/Debit Cards, Affluent vs. Other Consumers Paying Bills Online Popular among Affluent Table 6-7: Methods Used to Pay Bills, Affluent vs. Other Consumers Affluent Taxpayers Look to CPAs Table 6-8: Methods of Preparing Tax Returns in Last 12 Months, Affluent vs. Other Consumers Ownership of Investments and Insurance Investment Ownership Analyzed Table 6-9: Ownership of Investments, Affluent vs. Other Consumers Insurance Vital Part of Affluent Lifestyle
  • 9. Table 6-10: Ownership of Property and Vehicle Insurance, Affluent vs. Other Consumers Table 6-11: Value of Life Insurance Owned, Affluent vs. Other Consumers Table 6-12: Percent with Health Insurance by Type Owned, Affluent vs. Other Consumers Chapter 7 How Affluent Consumers Spend Their Money Overview Consumer Units Defined Affluent Consumers Have Disproportionate Impact on American Economy Table 7-1: Expenditures of Consumer Units as Percent of Aggregate Consumer Expenditures in the United States in 2008, Affluent vs. Non-Affluent Affluent Consumers Wield Ever-Increasing Influence Table 7-2: Expenditures of Consumer Units as Percent of Aggregate Consumer Expenditures in the United States 2003-2008, Affluent vs. Non-Affluent Huge Spending Gap between Affluent and Non-Affluent Consumers Figure 7-1: Average Annual Expenditures in 2008, Affluent vs. Other Consumers Many Differences between Affluent and Other Consumer Units Table 7-3: Profile of Affluent and Other Consumer Units Expenditure Patterns Reflect Differences in Available Choices Table 7-4: Percent of Aggregate Consumer Expenditures, Affluent vs. Other Consumer Units How the Great Recession Has Affected the Way the Most Affluent Consumers Spend Money Latest Government Data Show Profound Shifts in Spending by Top Ranks of Affluent Consumer Units Highly Affluent Consumers Cut Expenditures Restaurant Meals More Popular but Alcohol Consumption Down Less Spent on Travel and Vacations More of the Most Affluent Consumers Living in Rented Homes Figure 7-2: Aggregate Expenditures on Rented Dwellings by Highly and Super- Affluent Consumer Units, 2005-2008 Spending on Phone Service Stays Constant Child Care Expenditures Drop Dramatically but Spending on Housekeeping and Lawn-Care Services Stays the Same Spending on Household Furnishings Declines Precipitously Affluent Women Spend Less for Clothing, Men Spend about the Same Affluent Spending on New Cars Drops off Cliff Figure 7-3: Aggregate Expenditures on New Vehicles by Highly and Super- Affluent Consumer Units, 2005-2008 Affluent Spend More on Car Repairs Affluent Consumers Cut Back on Medical Spending Spending on Pets Goes Up Spending on Personal Care Shows Steady Increase Table 7-5: Trends in Spending by Highly and Super-Affluent Consumer Units, 2005-2008 When Affluent Consumers Go Shopping in Stores
  • 10. Super-Affluent Shoppers Have Different Profile Table 7-6: Shopping Profile, Affluent vs. Other Consumers Affluent Shoppers Attuned to Brand Names Table 7-7: Attitudes toward Brands, Affluent vs. Other Consumers Affluent Consumers Are Careful Shoppers Table 7-8: Attitudes toward Prices and Sales, Affluent vs. Other Consumers Incentive Offers Appeal to Affluent Consumers Figure 7-3: Percent Using Cents-Off Coupons, Affluent vs. Other Consumers Table 7-9: Percent Responding to Incentive Offers, Affluent vs. Other Consumers Affluent Consumers Frequent Mall Visitors Table 7-10: Percent Visiting Malls in Last 4 Weeks , Affluent vs. Other Consumers Target the Top Choice of Super-Affluent and Highly Affluent Women Table 7-11: Department/Discount Stores Shopped in Last 3 Months, Affluent vs. Other Women Table 7-12: Department/Discount Stores Shopped in Last 3 Months, Affluent vs. Other Men Online and Catalog Shopping Affluent Shoppers Depend on Internet Table 7-13: Impact of the Internet on Shopping Behavior, Affluent vs. Other Consumers Super-Affluent Are Big Online Spenders Table 7-14: Total Amount Spent on Internet Orders in Last 12 Months, Affluent vs. Other Consumers Table 7-15: Items Ordered from the Internet in Last 12 Months, Affluent vs. Other Consumers Affluent Consumers Turn to Catalogs More Often Table 7-16: Profile of Catalog Shoppers, Affluent vs. Other Consumers Following Fashion Keeping up with Fashion More Important to Affluent Consumers Table 7-17: Attitudes toward Fashion, Affluent vs. Other Consumers Affluent Women More Likely to Buy Clothes Table 7-18: Clothing Items and Accessories Bought in Last 12 Months, Affluent vs. Other Women Table 7-19: Clothing Items and Accessories Bought in Last 12 Months, Affluent vs. Other Men Watches Important to Super-Affluent Table 7-20: Percent Buying Watches in Last 12 Months, Affluent vs. Other Consumers Affluent Women Use More Personal-Care Products Table 7-21: Use of Personal-Care Products, Affluent vs. Other Women Table 7-22: Use of Personal-Care Products, Affluent vs. Other Men Section III Highlights of Affluent Consumer Behavior Chapter 8 Taking Care of Themselves: Health and Well-Being in the Affluent Consumer Market
  • 11. Keeping Fit Exercise Has High Priority Table 8-1: Attitudes toward Exercise, Affluent vs. Other Consumers Frequent Workouts Common Table 8-2: Participation in Physical Fitness Programs, Affluent vs. Other Men Table 8-3: Participation in Physical Fitness Programs, Affluent vs. Other Women Top Sports Linked to Fitness Table 8-4: Sports Played in Last 12 Months, Affluent vs. Other Men Table 8-5: Sports Played in Last 12 Months, Affluent vs. Other Women Staying Healthy Fewer Wimps among the Affluent Table 8-6: Attitudes toward Personal Health, Affluent vs. Other Consumers Affluent Healthier than Other Americans Table 8-7: Ailments in Last 12 Months, Affluent vs. Other Consumers Visits to Doctors More Common Table 8-8: Healthcare Professionals Consulted in Last 12 Months, Affluent vs. Other Consumers Trust in Physicians Lower Table 8-9: Trust in Physicians, Affluent vs. Other Consumers Super-Affluent Will Pay More for Medications Table 8-10: Attitudes toward Brand-Name Medications, Affluent vs. Other Consumers Fewer Cigarette Smokers among the Affluent but Cigars More Popular Table 8-11: Use of Tobacco Products, Affluent vs. Other Consumers Healthy Eating Important to Affluent Consumers Table 8-12: Attitudes toward Healthy Eating, Affluent vs. Other Consumers Losing Weight a High Priority for Affluent Consumers Table 8-13: Reasons for Watching Diet, Affluent vs. Other Consumers Table 8-14: Attitudes toward Dieting, Affluent vs. Other Consumers Chapter 9 Affluent Consumers and Their Homes and Cars Affluent Consumers and Their Homes Affluent Consumers Like to Entertain at Home Table 9-1: Attitudes toward the Home, Affluent vs. Other Consumers Home Décor of Interest to the Affluent Table 9-2: Attitudes toward Home Improvement, Affluent vs. Other Consumers Affluent Lead Way in Home Improvement Market Table 9-3: Profile of Home Improvers, Affluent vs. Other Consumers Affluent Big Spenders in Household Furnishings Stores Table 9-4: Percent Purchasing Household Furnishings, Bed, Bath, Linens and Appliances in Last 12 Months, Affluent vs. Other Consumers Eating at Home Cooking Attracts Super-Affluent Consumers Table 9-5: Attitudes toward Cooking, Affluent vs. Other Consumers Organic Food a Must for Many Super-Affluent Chefs Table 9-6: Importance of Natural and Organic Foods, Affluent vs. Other Consumers
  • 12. Gourmet Foods Appeal Table 9-7: Attitudes toward Food Styles, Affluent vs. Other Consumers Affluent Like to Experiment with New Foods Table 9-8: Attitudes toward Experimenting with New Foods, Affluent vs. Other Consumers The Affluent Auto Owner Affluent Drivers Like to Drive Fast Table 9-9: Driving Habits and Vehicle Use, Affluent vs. Other Consumers Cars Tied to Self-Image Table 9-10: Self-Image and Cars, Affluent vs. Other Consumers Affluent Want Cars to be Fun to Drive Table 9-11: Criteria for Buying a Car, Affluent vs. Other Consumers Auto Safety Important Table 9-12: Importance of Auto Safety, Affluent vs. Other Consumers New Cars More Likely to Be Found in Affluent Owners’ Garages Table 9-13: Attitudes toward New and Used Cars, Affluent vs. Other Consumers Foreign Cars Highly Rated Table 9-14: Attitudes toward Foreign Cars, Affluent vs. Other Consumers Multiple Vehicles More Common Table 9-15: Number of Vehicles in Household, Affluent vs. Other Consumers Table 9-16: Vehicle Model Type Owned, Affluent vs. Other Consumers One in Four Affluent Consumers Plans to Buy New Vehicle in Next Year Table 9-17: Next Vehicle Purchase, Affluent vs. Other Consumers Dealer Finance Works for Super-Affluent Buyers Table 9-18: Method of Purchasing Most Recently Acquired Vehicle, Affluent vs. Other Consumers Chapter 10 How Affluent Consumers Spend Their Leisure Time Overview Affluent Consumers More Active in Their Spare Time Table 10-1: Hobbies and Leisure Activities in Last 12 Months, Affluent vs. Other Men Table 10-2: Hobbies and Leisure Activities in Last 12 Months, Affluent vs. Other Women Audio Books Favored by Super-Affluent Readers Table 10-3: Books Purchased in Last 12 Months, Affluent vs. Other Consumers Home Entertainment Home Electronics Appeal to Affluent Table 10-4: Attitudes toward Consumer Electronics, Affluent vs. Other Consumers Affluent Households Filled with Electronics Gear Table 10-5: Ownership of Selected Consumer Electronics Items, Affluent vs. Other Consumers Digital Photography Enters Affluent Lifestyle Table 10-6: Ownership of Cameras, Affluent vs. Other Consumers Affluent Prime Customers for Home Electronics Retailers
  • 13. Table 10-7: Home Electronic Stores Shopped in Last 3 Months, Affluent vs. Other Consumers Table 10-8: Percent Shopping in Office Supply/Computer Stores in Last 3 Months, Affluent vs. Other Consumers Table 10-9: Amount Spent on Software in Last 12 Months, Affluent vs. Other Consumers Keeping in Touch Affluent Depend on Cellphones to Stay Connected Figure 10-1: Percent Owning Cellphones, Affluent vs. Other Consumers Table 10-10: Use of Cellphone as a Social Tool, Affluent vs. Other Consumers Landlines Still Important Table 10-11: Use of Cellphones, Affluent vs. Other Consumers Affluent Prove Tough Customers for Wireless Service Providers Table 10-12: Attitudes toward Wireless Service Providers, Affluent vs. Other Consumers Affluent Buy Additional Cellphone Services Table 10-13: Use of Cellphones, Affluent vs. Other Consumers The Online Affluent Consumer Internet Has Major Impact on the Way Affluent Work and Play Figure 10-2: Percent Using the Internet at Home, Affluent vs. Other Consumers Table 10-14: Impact of the Internet on Lifestyle , Affluent vs. Other Consumers Affluent Heavy Users of Internet Table 10-15: Use of the Internet at Home, Affluent vs. Other Consumers Online Activities Analyzed Table 10-16: Online Activities in Last 30 Days, Affluent vs. Other Men Table 10-17: Online Activities in Last 30 Days, Affluent vs. Other Women Travel Sites Attract Affluent Consumers Table 10-18: Websites Visited in Last 30 Days, Affluent vs. Other Consumers Going Out Hard Times Do Not Keep Affluent Consumers from Going Out Table 10-19: Participation in Selected Entertainment Activities by Selected Time Periods, 2005-2007 Live Entertainment Events Attract More Affluent Consumers Table 10-20: Attendance at Live Entertainment Events in Last 12 Months, Affluent vs. Other Consumers Affluent Consumer Segment Includes More Frequent Moviegoers Table 10-21: Movie Attendance, Affluent vs. Other Consumers Super-Affluent Avoid Fast Food Restaurants Table 10-22: Use of Family and Fast Food Restaurants, Affluent vs. Other Consumers The Affluent Traveler Affluent Consumers More Likely to Use Travel Agents Figure 10-3: Percent Using Travel Agents, Affluent vs. Other Consumers Super-Affluent Consumers Are Frequent Travelers Table 10-23: Domestic Travel Profile in Last 12 Months, Affluent vs. Other Consumers
  • 14. Most Affluent Consumers Travel Abroad Table 10-24: Foreign Travel Profile in Last 3 Years, Affluent vs. Other Consumers Interest in Cruise Ship Vacations Rebounds among Top Tiers of Affluent Consumers Table 10-25: Cruise Ship Vacations, Affluent vs. Non-Affluent Consumers by Selected Time Periods, 2007-2009 Chapter 11 Affluent Consumers and the Media Print Media Print Media Maintain Hold on Super-Affluent Table 11-1: Attitudes toward Print Media, Affluent vs. Other Consumers Table 11-2: Readership of Newspapers, Affluent vs. Other Consumers Many Magazine Choices Similar Table 11-3: Most Popular Magazines, Affluent vs. Other Women Table 11-4: Most Popular Magazines, Affluent vs. Other Men Television and Radio Affluent Viewers less Likely to Turn to TV for Information Table 11-5: Attitudes toward Television, Affluent vs. Non-Affluent Consumers Premium Cable a Fixture in Affluent Homes Table 11-6: Access to Cable Television, Affluent vs. Non-Affluent Consumers Fox Gets Nod from Affluent Table 11-7: Primetime Network Viewing Habits, Affluent vs. Non-Affluent Consumers TV More Popular among Affluent Men than Women Table 11-8: Most Popular Cable Television Channels, Affluent vs. Other Women Table 11-9: Most Popular Cable Television Channels, Affluent vs. Other Men Table 11-10: Sports Events Watched Frequently on TV, Affluent vs. Other Men Radio Important Information Source for Affluent Men Table 11-11: Attitudes toward Radio, Affluent vs. Other Consumers Table 11-12: Most Popular Radio Formats, Affluent vs. Other Men Table 11-13: Most Popular Radio Formats, Affluent vs. Other Women New Media Internet Changes Media Habits of Affluent Table 11-14: Impact of the Internet on Traditional Media Usage, Affluent vs. Non- Affluent Consumers Cellphone Important Media Platform for Affluent Table 11-15: Use of Cellphones as Media Platform, Affluent vs. Other Consumers Receptivity to Advertising Super-Affluent Consumers Depend on Ads Table 11-16: Attitudes toward Advertising, Affluent vs. Non-Affluent Consumers Affluent Consumers Pay Attention to Out-of-Home Ads Table 11-17: Impact of Out-of-Home Advertising, Affluent vs. Non-Affluent Consumers Product Placement Effective Way to Reach Super-Affluent Consumers Table 11-18: Impact of Product Placement, Affluent vs. Non-Affluent Consumers
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