subject: Aarkstore Enterprise - Affluent Market Tracking Study Of Us Households-aarkstore Enterprise Mark [print this page] Affluent Market Tracking Study #17, Spring 2010 Survey of the Wealthiest 10% of US Households
Abstract:
The 17th in a continuing series of research reports based on twice-yearly surveys of the most affluent 10% of U.S. households, this survey was designed to provide information critical for effective marketing to the affluent and luxury consumers.
This report identifies:
Spending plans over the next 12 months of both the luxury and affluent consumers (and they are often different)
Which of 17 product categories show the most sales potential and among which market segments
Which segments are committed to a green lifestyle and which of 7 eco friendly products they now own and which they will buy during the next 5 years (and how much of a premium they are willing to pay)
Which of 3 eco friendly activities they have done and which they will do during the next 5 years
Which of 8 major purchases show the most sales potential and among which segments
Who were the pre recession careful spenders and who were the free spenders
Which segments are worried about the amount of their debt and which are not worried
What special actions to reduce their debt are being taken and by which segments
What the affluent expect of the stock market, business conditions, and their personal income during the next 12 months
Top 5 Ways to Use and Benefit from This Research
1) Develop an understanding of the general mood of the affluent and their expectations for business conditions and personal income over the next 12 months. Gives you a basic perspective on general market conditions that will determine marketing opportunities and challenges
2) Identify changes in the spending plans of the affluent for your specific product category during the next 12 months. Shows you how potential sales of your product category compare to prior years and indicates what competitive pressures may result in your industry
3) Learn which segments of the affluent market represent the best sales potential for you during the next 12 months. Identifies the market segments that are cutting back on spending and those that are continuing to spend for your product category. See which segments are burdened by pre-recession spending and debt and which were living within their means
4) Determine interest in and willingness to spend extra for 10 products with features that support a green or eco-friendly life style. Learn which consumers are serious in pursuing an eco-friendly life style and the premium price they will pay
5) Create your marketing and sales plans with data based on the future intentions of the affluent. Unlike many other surveys of the affluent, this is not an extrapolation of past actions that they have been asked to remember and reconstruct.
Focused on the wealthiest 11.2 million households with an average $3.1 million net worth (as determined by The Federal Reserve Board) these surveys regularly measure and track their 12-month outlook for the economy, the stock market and their personal earnings, savings, investment objectives, and spending plans for 17 product categories and 8 major expenditures.
This survey also contained questions to help identify which segments of the affluent market were careful spenders and which were free spenders during the several years prior to the recession. The survey helps to understand who is burdened by pre-recession debt and spending, for what types of things they over spent, and what special steps they are now taking to reduce their debt.
Also included were questions to identify those who pursue a green lifestyle and those that follow a low green lifestyle. This produced data about current ownership of seven green or eco friendly products and plans to purchase any of the products during the next five years. Involvement in three types of green activities during the past five years and/or plans to do so in the next five years were also identified.
The surveys track plans for major purchases (vacation homes, primary residences, home remodeling, automobiles, boats, and cruises) during the next 12 months. The survey also tracks anticipated changes in spending during the next 12 months for 17 categories of products and services. These include fine jewelry and watches, domestic and international travel, dining in casual and upscale restaurants, furniture, major appliances, entertainment equipment, home computer equipment, entertainment, recreational activities, collectibles, designer and non-designer apparel, and charitable and political contributions.
For much of the preceding, the report shows historical trend data and data by demographic segment within the overall affluent population.
Research Methodology
Unlike other affluent and luxury market research that is based on online surveys of panels of people who are compensated for participating in regular and frequent surveys, our unique direct mail surveys are based on samples drawn at random to be representative of the precisely defined population of affluent households, consistent with the research of the Federal Reserve Board. Confident of their anonymity, the respondents to our surveys are typically more affluent and more open in providing confidential information.
Surveys were mailed to a randomly selected, national sample of 4,000 men and women in households that, based on their income and ownership of certain assets, were expected to meet the minimum net worth requirement of $800,000.
The profile of the sample is as follows: $288,000 average household income, $3.1 million average household net worth, and $1.7 million average household investable assets. The average value of their primary home is $1.1 million. The average age is 57 and 90% are married, 65% are males, and 35% are females. The sample represents 31 states plus the District of Columbia.
The overall survey response rate was 18 percent. These survey results are based upon the 525 men and women who promptly responded to the survey and met the minimum net worth requirement. The maximum margin of error of this survey, at 95% confidence, is five percentage points.
Additional Information
These surveys focus on the 11.2 million households that represent the wealthiest 10% of all U.S. households, based on net worth. The research available from The Federal Reserve Board indicates these households:
Have a minimum net worth of $828,000.
Have an average net worth of $3.1 million.
Have an average income of $256,000.
Earn 36% of the total income of all Americans.
Own 63% of the personal assets of all U.S. households.
Hold 89% of the total value of all publicly traded stock and stock mutual funds in the U.S.
Own a primary residence valued at an average of $651,000.
