The Affluent Market in the U.S.

Table of Contents

CHAPTER 1 Executive Summary

• Background
• Introduction
• Overview of the Report

• Scope and Methodology
  • Scope of the Market
  • Methodology
• Overview of the Market
  • Nearly 21 Million Households Are Affluent
  • Affluent Consumers Control Nearly Half of U.S. Aggregate Household Income
  • Aggregate Income of Affluent Households Will Reach $4.6 Trillion in 2011
  • Affluent Are Highly Educated and Work for Their Money
  • Homeownership Badge of Affluence
  • Affluent Households Are Overwhelmingly Family Households
  • Affluent Concentrated in Northeast and Pacific Regions and in Big Cities
• Core Values and Aspirations of Affluent Consumers
  • Affluent Consumers Are Content with Their Lives
  • Image Matters
  • Comfortable with Taking Risks
  • Affluent Consumers Are Influencers
  • Workaholics More Common among the Affluent
• How the Affluent Manage Their Money
  • Sense of Financial Security Increases with Income
  • Affluent More Confident about Managing Personal Finances
  • Price of Financial Services Matters
  • Affluent Less Comfortable with Taking on Debt, Yet Borrow More
  • Affluent Are More Likely to Pay with Plastic and Pay Off Entire Credit Card Balance
  • Scope of Insurance Coverage Reflects Affluent Lifestyle
  • Affluent Households Account for 60% of All Investment Income in United States
  • Affluent Have Wide Range of Investments
• How the Affluent Spend Their Money
  • Affluent Consumers Spend Nearly One out of Every Three Dollars in U.S.
  • Charitable Contributions Differentiate Affluent Consumers
  • Affluent Households Spend More than Twice the Average for Apparel
  • Affluent Consumers Claim to Dress Conservatively
  • Designer Clothes More Important to Self-Image of Highly Affluent Consumers
  • Affluent Shop More Often and Enjoy It Less
  • Affluent Reject “Sales” and “Bargains” but Respond to “Deals” and Incentive Offers
  • Affluent Shoppers Much More Likely to Turn to the Internet
• Affluent Consumers and Their Homes and Cars
  • Home Equity Major Share of Investment Portfolio of Affluent
  • Home Improvement Projects More Common
  • Affluent Spend More than Twice the Average on Home Furnishings and Appliances
  • Affluent More Likely to Share Family Meal at Home
  • Food Expenditures of Affluent Consumers Reveal Differences in Diet
  • Affluent Households Have More than 50 Million Vehicles
  • Nearly Half of Affluent Live in Households with Three or More Vehicles
  • New Cars More Common in Garages of Affluent
  • Affluent View Cars as Means of Self-Expression
• How the Affluent Spend Their Leisure Time
  • Affluent Are More Physically Active
  • More Affluent Households Have Giant TV Screens
  • Affluent More Drawn to Downloading Music
  • Affluent PC Owners Continuously Upgrade
  • Internet Integral Part of Affluent Lifestyle
  • Affluent Consumers Spend More than Twice the Average Eating Out
  • Family Restaurants and Fast Food Popular among Affluent
  • Entertainment Events Get High Priority
  • Travel Routine for the Affluent
• Segmenting Affluent Consumers
  • Affluent Men More Concerned about Self-Image
  • Cars a Key Component of Affluent Male Identity
  • Affluent Men Tied to Technology
  • Affluent Women Juggle Demands of Career and Family
  • Affluent Women Are Shoppers
  • Fast Food Part of Affluent Family Profile
  • Affluent Parents Teach Kids to Be Careful with Money
  • Affluent Kids Are Savers Rather than Spenders
  • Many Affluent Kids Earn Their Spending Money
  • Affluent Kids Reflect Parent’s Drive to Succeed
  • Many Affluent Consumer Values Transcend Age
  • Affluent Share Feelings of Financial Security Regardless of Where They Live, but Differences Also Significant
• The Super-Affluent Consumer
  • Super-Affluent Generate 12% of Total U.S. Household Income
  • Money Matters to the Super-Affluent
  • The Super-Affluent Work for Their Money
  • Super-Affluent Willing to Pay Full Price to Buy What They Want When They Want It
  • Online and Catalog Shopping More Popular
  • Super-Affluent Own Multiple Vehicles
  • Super-Affluent Inveterate Travelers
  • Super-Affluent Tied to the Internet
  • Print Media Still Important but Internet Is Changing Media Habits
• Marketing and Advertising Trends
  • Magazines Important to the Affluent
  • Affluent Less Involved with TV
  • Affluent Pose Major Threat to Traditional Media Models
  • Most Ads a Turn-Off to the Affluent
  • Segmentation Vital When Marketing to Affluent
  • Marketing Affected by When Wealth Was Acquired
  • Luxury Retailers Lure Younger Demographic
  • Super-Affluent Consumers in a Class by Themselves
• Strategic Trends and Opportunities
  • The Rich Keep Getting Richer
  • Affluent Account for Larger and Larger Share of U.S. Consumer Economy
  • Super-Affluent Fastest-Growing Segment
  • Exceptional Opportunities for Marketers Tapping into Affluent Consumers’ Connection with their Homes
  • Leisure Habits of Affluent Generate Significant Marketing Opportunities
  • Fashion-Forward Affluent Consumers Generate Sales
  • Affluent Drive New-Car Market
  • Surveys Show Affluent Still Offer Opportunities for Financial Services Firms

Section 1 Overview

CHAPTER 2 Overview of the Market

• Size and Growth of the Affluent Market
  • Defining the Affluent Market
  • Nearly 21 Million Households Are Affluent
  • Table 2-1: Number of Affluent Households by Amount of Household Income, 2006
  • Number of Affluent Adults Tops 52 Million
  • Table 2-2: Number of Affluent U.S. Adults, 2006
  • Affluent Consumers Control Nearly Half of U.S. Aggregate Household Income
  • Table 2-3: Aggregate Income of Affluent Households by Amount of Household Income, 2005
  • Wealth Follows Income
  • Table 2-4: Family Net Worth by Income Percentile, 2004
  • Aggregate Income of Affluent Households Will Reach $4.6 Trillion in 2011
  • Table 2-5: Aggregate Income of Affluent Households, 2000-2005
  • Table 2-6: Projected Size and Growth of Affluent Market, 2006-2011
• Demographic Profile of Affluent Consumers
  • Affluent Consumers Cluster in Gen X and Younger Boomer Generations
  • Table 2-7: Affluent Consumers by Age Group
  • Affluent Consumers More Likely to Be Non-Hispanic Whites but Asian Households Are Most Affluent
  • Table 2-8: Households with Income of $100,000 or More by Race and Hispanic Origin
  • Table 2-9: Percent of Households with Income of $100,000 or More by Race and Hispanic Origin
  • Table 2-10: Affluent Consumers by Race and Hispanic Origin
  • Affluent Are Highly Educated
  • Table 2-11: Affluent Consumers by Educational Achievement
  • Affluent Consumers Work for Their Money
  • Table 2-12: Employment Profile of Affluent Consumers
  • Table 2-13: Number of Employed Adults in Household, Affluent vs. Other Consumers
  • Homeownership Badge of Affluence
  • Table 2-14: Affluent Consumers by Homeownership Status
  • Table 2-15: Percent of Consumer Units Owning Homes by Income Category
  • Affluent Households Are Overwhelmingly Family Households
  • Table 2-16: Affluent Consumers by Marital Status
  • Table 2-17: Number and Mean Income of Households with Annual Income of $100,000 or More by Type of Household, 2005
  • More than 40% of Affluent Consumers Have Children at Home
  • Table 2-18: Affluent Households by Size of Household and Presence of Children
  • Table 2-19: Affluent Households with Children by Marital and Employment Status of Parents
• Where Affluent Consumers Live
  • Affluent Concentrated in Northeast and Pacific Regions
  • Table 2-20: Affluent Consumers by Region of Residence
  • Affluence Is Big-City Phenomenon
  • Table 2-21: Percent of Affluent Consumers Living in Top 100 Metro Markets by Size of Market
  • New York, Los Angeles, and Chicago Have Largest Number of Affluent Households
  • Table 2-22: 40 Largest Metropolitan Areas Ranked by Number of Affluent Households, 2005
  • Table 2-23: Number of Affluent Consumers Living in Top 14 DMAs
  • San Francisco, Silicon Valley, and Washington, D.C. Have Highest Proportion of Affluent Households
  • Table 2-24: 40 Largest Metropolitan Areas Ranked by Affluent Households as Percent of All Households in Area, 2005

CHAPTER 3 Core Values and Aspirations of Affluent Consumers

• Affluent Consumers Are Content with Their Lives
• Table 3-1: Affluent Consumers: Content with Their Lives
• The Affluent Have Practical Outlook
• Table 3-2: Affluent Consumers: Practical People
• Relationships Important
• Table 3-3: Affluent Consumers: Value Relationships
• Image Matters
• Table 3-4: Affluent Consumers: Concerned about Their Image
• Comfortable with Taking Risks
• Table 3-5: Affluent Consumers: Like Taking Risks
• The Affluent Are Self-Confident and In Control
• Table 3-6: Affluent Consumers: Self-confident and in Control
• Affluent Consumers Are Influencers
• Table 3-7: Affluent Consumers: Influencers
• Workaholics More Common among the Affluent
• Table 3-8: Affluent Consumers: Workaholics
• The Affluent Aspire to Own Quality Things
• Table 3-9: Affluent Consumers: Aspire to Own Quality Things
• Affluent Consumers Want to Stay Physically Fit
• Table 3-10: Affluent Consumers: Physically Fit
• Social Values of Affluent Reflect Urban Orientation
• Table 3-11: Affluent Consumers: Cosmopolitan
• Table 3-12: Affluent Consumers: More Secular and Liberal

Section 2 Affluent Consumer Behavior

CHAPTER 4 How the Affluent Manage Their Money

• Attitudes toward Personal Financial Management
  • Sense of Financial Security Increases with Income
  • Figure 4-1: Percent Feeling Secure Financially, Affluent vs. Other Consumers
  • Affluent More Confident about Managing Personal Finances
  • Table 4-1: Financial Self-confidence, Affluent vs. Other Consumers
  • Affluent More Likely to Prepare Own Tax Returns
  • Table 4-2: Dependence on Financial Service Providers, Affluent vs. Other Consumers
  • Price of Financial Services Matters
  • Table 4-3: Shopping for Financial Services, Affluent vs. Other Consumers
  • Affluent Want Information before Buying Financial Services
  • Table 4-4: Sources of Information about Finance and Financial Services, Affluent vs. Other Consumers
• Financial Management Practices
  • Affluent Less Comfortable with Taking on Debt, Yet Borrow More
  • Figure 4-2: Percent Not Liking the Idea of Being in Debt, Affluent vs. Other Consumers
  • Table 4-5: Percent with Loans, Affluent vs. Other Consumers by Type of Loan
  • Affluent Are More Likely to Pay with Plastic
  • Table 4-6: Ownership and Frequency of Use of ATM Cards, Affluent vs. Other Consumers
  • Figure 4-3: Percent Who Have Debit Cards, Affluent vs. Other Consumers
  • Figure 4-4: Percent Who Like to Pay Cash for Things They Buy, Affluent vs. Other Consumers
  • Table 4-7: Ownership of Credit Cards, Affluent vs. Other Consumers by Brand of Credit Card
  • Affluent More Likely to Pay Off Entire Credit Card Balance
  • Table 4-8: Percent Paying Entire Credit Card Balance, Affluent vs. Other Consumers by Brand of Credit Card
  • Insurance Another Marker of Affluent Consumer Identity
  • Table 4-9: Importance of Insurance, Affluent vs. Other Consumers
  • Table 4-10: Percent with Life and Health Insurance, Affluent vs. Other Consumers by Type of Insurance
  • Scope of Insurance Coverage Reflects Affluent Lifestyle
  • Table 4-11: Percent with Other Types of Insurance, Affluent vs. Other Consumers by Type of Insurance
  • Affluent Households Account for 60% of All Investment Income in United States
  • Table 4-12: Interest, Dividends, Rental Income, and Other Property Income Received by Consumer Units by Income Level, 2005 Affluent Focus on Interest-Bearing Bank Accounts but Avoid Long-Term CDs
  • Table 4-13: Ownership of Bank Accounts, Affluent vs. Other Consumers Affluent Have Wide Range of Investments
  • Table 4-14: Percent Owning Investments, Affluent vs. Other Consumers by Type of Investment
  • More than One-Third of Affluent Consumers Have Brokerage Accounts
  • Table 4-15: Percent with Mutual Funds/Brokerage Accounts, Affluent vs. Other Consumers

CHAPTER 5 How the Affluent Spend Their Money

• Overview of Spending Patterns
  • Consumer Units Defined
  • Affluent Consumers Spend Nearly One out of Every Three Dollars in U.S.
  • Table 5-1: Expenditures of Affluent Consumer Units as Percent of Aggregate Consumer Expenditures in the United States
  • The Affluent Spend a Lot but Have A Lot Left Over Figure 5-1: Expenditures as Percent of After-Tax Income by Amount of Income, 2005
  • Differences in Consumer Expenditure Patterns Analyzed
  • Table 5-2: Consumer Expenditures Categories for Which Affluent
  • Consumers Spend a Higher Percentage of Their Total Budget than All Consumer Units
  • Charitable Contributions Differentiate Affluent Consumers
  • Table 5-3: Charitable Contributions in Last 12 Months, Affluent vs. Other Consumers by Type of Contribution
• Connecting with Brands
  • Affluent Consumers More Aware of Brands
  • Table 5-4: Brand Awareness, Affluent vs. Other Consumers
  • Brand Loyalty Most Important to the Affluent When Buying Clothes
  • Table 5-5: Brand Loyalty, Affluent vs. Other Consumers
  • Value of Brands Questioned in Other Areas
  • Table 5-6: Perceived Value of Brands, Affluent vs. Other Consumers
• Following Fashion
  • Affluent Households Spend More than Twice the Average for Apparel
  • Table 5-7: Average Annual Expenditures for Apparel and Services by
  • Amount and Percent of Total Expenditures, Affluent vs. All Consumer Units
  • Table 5-8: Attitudes toward Buying Clothes, Affluent vs. Other Consumers
  • Affluent Consumers Claim to Dress Conservatively
  • Table 5-9: Attitudes toward Clothes, Affluent vs. Other Consumers
  • Affluent More Driven by Fashion
  • Table 5-10: Keeping Up with the Latest Fashions, Affluent vs. Other Consumers Quality Matters
  • Table 5-11: Importance of Buying Quality Clothes, Affluent vs. Other Consumers Designer Clothes More Important to Self-Image of Highly Affluent Consumers
  • Table 5-12: Attitudes toward Designer Clothes, Affluent vs. Other Consumers
• When Affluent Consumers Go Shopping in Stores
  • Affluent Shop More Often and Enjoy It Less
  • Figure 5-2: Percent Visiting a Mall in Last 4 Weeks, Affluent vs. Other Consumers
  • Table 5-13: Frequency of Visits to Malls in Last 4 Weeks, Affluent vs. Other Consumers
  • Table 5-14: Attitudes toward Shopping, Affluent vs. Other Consumers
  • Shopping Not a Social Event for Affluent Consumers
  • Table 5-15: Attitudes toward Shopping with Others, Affluent vs. Other Consumers
  • Affluent Claim to Be Careful with Their Money
  • Figure 5-3: Percent Saying They Are Careful with Their Money
  • Affluent Reject “Sales” and “Bargains” but Respond to “Deals” and Incentive Offers
  • Table 5-16: Attitudes toward “Sales” or “Bargains,” Affluent vs. Other Consumers
  • Table 5-17: Attitudes toward “Shopping for the Best Deal,” Affluent vs. Other Consumers
  • Table 5-18: Percent Responding to Incentive Offers, Affluent vs. Other Consumers by Type of Offer
  • Affluent Consumers Shop Carefully When Buying Luxury Items
  • Table 5-19: Shopping for Luxury Items, Affluent vs. Other Consumers
  • Convenient Location Not a Factor When Affluent Decide Where to Shop
  • Table 5-20: Reasons for Selecting Stores, Affluent vs. Other Consumers
  • Super-Affluent Look to Specialty Stores
  • Table 5-21: Attitudes toward Specialty Stores, Affluent vs. Other Consumers
  • Target Gets Nod from Affluent Shoppers
  • Table 5-22: Department/Discount Stores Shopped in Last 3 Months, Affluent vs. Other Consumers
• Online and Catalog Shopping
  • Affluent Consumers Like Catalog Shopping
  • Figure 5-4: Percent Choosing Not to Have Names on Mailing Lists, Affluent vs. Other Consumers
  • Figure 5-5: Percent Buying Merchandise from a Catalog in the Last 12 Months, Affluent vs. Other Consumers.
  • Table 5-23 Catalogs Bought Merchandise From, Affluent vs. Other Consumers
  • Table 5-24: Merchandise Purchased From Catalog in Last 12 Months, Affluent vs. Other Consumers
  • Affluent Shoppers Much More Likely to Turn to the Internet
  • Table 5-25: Attitudes toward Online Shopping, Affluent vs. Other Consumers
  • Amount of Online Shopping by Affluent Tied to Income
  • Figure 5-6: Percent Placing an Internet Order in Last 12 Months, Affluent vs. Other Consumers
  • Affluent Are Big Spenders Online
  • Table 5-26: Total Amount Spent on Internet Orders in Last 12 Months, Affluent vs. Other Consumers
  • Table 5-27: Items Ordered from the Internet in the Last 12 Months, Affluent vs. Other Consumers

CHAPTER 6 Affluent Consumers and Their Homes and Cars

• Affluent Consumers and Their Homes
  • Home Equity Major Share of Investment Portfolio of Affluent
  • Figure 6-1: Market Value of Homes by Income of Consumer Unit, 2005
  • Mortgages More Common among Affluent than Lower-Income Homeowners
  • Figure 6-2: Percent of Homeowners with Mortgage by Income of Consumer Unit
  • Costs of Carrying Home Single Largest Expense for Affluent
  • Table 6-1: Average Annual Expenditures for Housing and Related Expenses by Homeowners with Mortgages
• Home Decorating and Home Improvements
  • Mass Affluent Looking for Home Improvement Ideas; Super-Affluent More Satisfied with Look of Their Home
  • Table 6-2: Attitudes toward Home Improvement, Affluent vs. Other Consumers
  • Home Improvement Projects More Common
  • Figure 6-3: Percent Making Major Home Improvement in Last 12 Months, Affluent vs. Other Consumers
  • Bathrooms and Kitchens Top Remodeling Projects
  • Table 6-3: Remodeling Projects Carried Out in Last 12 Months and Planned for Next 12 Months, Affluent vs. Other Consumers
  • Super-Affluent Much Less Likely to Take On Do-It-Yourself Projects
  • Table 6-4: Do-It-Your-Self vs. Hiring Professionals, Affluent vs. Other Consumers
  • Home Depot Top Choice among Home Improvement Retailers
  • Table 6-5: Amount Spent on Home Improvements in Last 12 Months, Affluent vs. Other Consumers
  • Table 6-6: Home Improvement Stores Shopped in Last 3 Months, Affluent vs. Other Consumers
  • Affluent Spend More than Twice the Average on Home Furnishings and Appliances Table 6-7: Average Annual Expenditures for Housekeeping Supplies and Household Furnishings and Equipment, Affluent vs. All Consumer Units
  • Table 6-8: Amount Spent in Last 12 Months on Bedding, Bath, and Linens, Affluent vs. Other Consumers
  • Table 6-9: Amount Spent in Last 12 Months on Household Furnishings, Affluent vs. Other Consumers
  • Table 6-10: Major Appliances Purchased in Last 12 Months, Affluent vs. Other Consumers
  • More than One out of Five Affluent Consumers Shopped at Bed, Bath & Beyond in Previous Three Months
  • Table 6-11: Home Furnishing/Houseware Stores Shopped in Last 3 Months, Affluent vs. Other Consumers
• Eating at Home
  • Affluent More Likely to Share Family Meal at Home
  • Table 6-12: Eating at Home, Affluent vs. Other Consumers
  • Affluent Spend 60% More than Average on Food at Home
  • Figure 6-4: Expenditures on Food at Home, Total Amount and Percent of Total Expenditures by Income of Consumer Unit, 2005
  • Food Expenditures of Affluent Consumers Reveal Differences in Diet
  • Table 6-13: Average Annual Expenditures for Food at Home, Affluent vs. All Consumer Units
• The Affluent Auto Owner
  • Affluent Households Have More than 50 Million Vehicles
  • Table 6-14: Ownership of Automotive Vehicles, Affluent vs. All Consumer Units, 2005
  • Nearly Half of Affluent Live in Households with Three or More Vehicles
  • Table 6-15: Number of Vehicles Owned, Affluent vs. Other Consumers
  • New Cars More Common in Garages of Affluent
  • Table 6-16: Attitudes toward Buying New Cars, Affluent vs. Other Consumers
  • Table 6-17: Average Annual Expenditures for Vehicle Purchases and Related Expenses, Affluent vs. All Consumer Units
  • Affluent View Cars as Means of Self-Expression
  • Table 6-18: Self-image and Cars, Affluent vs. Other Consumers
  • Affluent Attracted by Looks and Luxury
  • Table 6-19: Criteria for Buying a Car, Affluent vs. Other Consumers
  • Table 6-20: Ownership of Satellite Radio Systems, Affluent vs. Other Consumers
  • High Performance Also Key
  • Table 6-21: Attitudes toward Vehicle Performance, Affluent vs. Other Consumers
  • Safety Remains a Concern
  • Table 6-22: Attitudes toward Vehicle Safety and Functionality, Affluent vs. Other Consumers
  • Foreign Cars Favored
  • Table 6-23: Attitudes toward Foreign Cars, Affluent vs. Other Consumers
  • Affluent More Likely to Use Cars for Work and Vacations
  • Table 6-24: Vehicle Use, Affluent vs. Other Consumers
  • SUVs Most Popular among Affluent
  • Table 6-24: Type of Vehicles Most Recently Acquired, Affluent vs. Other Consumers

CHAPTER 7 How the Affluent Spend Their Leisure Time

• Overview of Leisure Activities
  • Affluent Are More Physically Active
  • Table 7-1: Percent Participating in Leisure Activity/Hobby in Last 12 Months, Affluent vs. Other Consumers by Type of Activity/Hobby
  • Figure 7-1: Ownership of Camcorders and Video Cameras
  • Figure 7-2: Ownership of Still Cameras
  • Table 7-2: Number of Pictures Taken on Digital Cameras in Last 12 Months, Affluent vs. Other Consumers
  • Affluent More Socially Engaged
  • Figure 7-3: Percent with Memberships, Affluent vs. Other Consumers
  • Table 7-3: Memberships, Affluent vs. Other Consumers
  • Affluent Look More to Physical Fitness Activities
  • Table 7-4: Profile of Physical Fitness Program Participants, Affluent vs. Other Consumers
  • Table 7-5: Most Popular Sports Activities, Affluent vs. Other Consumers
  • Affluent Are Book Lovers
  • Table 7-6: Book Purchasing, Affluent vs. Other Consumers
  • Table 7-7: Type of Hardcover/Paperback Books Bought in the Last 12 Months, Affluent vs. Other Consumers.
• The Home as an Entertainment Center for the Affluent
  • Entertaining at Home Has High Priority
  • Table 7-8: Attitudes toward Spending Time at Home, Affluent vs. Other Consumers
  • More Affluent Households Have Giant TV Screens
  • Table 7-9: Ownership of TV Sets Most Recently Purchased by Type and Size, Affluent vs. Other Consumers.
  • Table 7-10: Amount Spent on Most Recently Purchased TV Set, Affluent vs. Other Consumers
  • Affluent Pick Sony TVs
  • Table 7-11: Brand of TV Set Most Recently Purchased, Affluent vs. Other Consumers
  • Affluent Viewers More Likely to Have DVRs
  • Table 7-12: Ownership of DVD Players and Digital Video Recorders (DVRs), Affluent vs. Other Consumers
  • Best Buy Attracts Affluent Shoppers
  • Table 7-13: Home Electronics Stores Shopped in Last 3 Months, Affluent vs. Other Consumers
  • Affluent More Drawn to Downloading Music
  • Table 7-14: Purchase of CDs and Music Downloads in Last 12 Months, Affluent vs. Other Consumers
  • Table 7-15: Videocassette Tapes/DVDs Bought in Last 3 Months, Affluent vs. Other Consumers
• Technology and the Affluent Household
  • Nearly All Affluent Households Have PC
  • Table 7-16: Ownership of Home Computers, Affluent vs. Other Consumers
  • Affluent PC Owners Continuously Upgrade
  • Table 7-17: Purchase of Home Computers, Affluent vs. Other Consumers
  • Internet Integral Part of Affluent Lifestyle
  • Table 7-18: Profile of Home Internet Users, Affluent vs. Other Consumers by Method of Access
  • Affluent Use Internet for Wide Variety of Purposes
  • Table 7-19: Internet Activity, Affluent vs. Other Consumers
  • Popular Websites Listed
  • Table 7-20: 40 Websites Most Popular with Affluent Consumers
  • Table 7-21: Differences in Web Sites Popular with Affluent and Other Consumers
  • Cellphones of the Affluent Loaded with Unused Features
  • Table 7-22: Ownership of Cellphones, Affluent vs. Other Consumers
  • Table 7-23: Additional Cellphone Services, Affluent vs. Other Consumers
  • PDAs Also Part of Affluent Lifestyle
  • Table 7-24: Ownership of Personal Digital Assistant (PDA) by Major Brands, Affluent vs. Other Consumers
• When Affluent Consumers Go Out
  • Affluent Consumers Spend More than Twice the Average Eating Out
  • Table 7-25: Average Annual Expenditures for Food away from Home and Alcoholic Beverages, Affluent vs. All Consumer Units
  • Alcoholic Beverages Part of Affluent Way of Life
  • Table 7-26: Percent Drinking Beer and Spirits by Category, Affluent vs. Other Consumers
  • Family Restaurants and Fast Food Popular among Affluent
  • Table 7-27: Family Restaurants Visited Most Often, Affluent vs. Other Consumers
  • Table 7-28: Fast Food and Drive-In Restaurants Visited Most Often, Affluent vs. Other Consumers
  • Entertainment Events Get High Priority
  • Table 7-29: Average Annual Expenditures for Entertainment by Amount and Percent of Total Expenditures, Affluent vs. All Consumer Units
  • Live Performances Attract the Affluent
  • Table 7-30: Live Performances Attended in the Last 12 Months, Affluent vs. Other Consumers by Type of Performance
  • Affluent Are Frequent Moviegoers
  • Figure 7-4: Percent Regular Moviegoers, Affluent vs. Other Consumers
  • Table 7-31: Profile of Movie Attendance, Affluent vs. Other Consumers
• The Affluent Traveler
  • Travel Routine for the Affluent
  • Table 7-32: Domestic Overnight Round Trips Taken in Last 12 months,
  • Affluent vs. Other Consumers
  • Figure 7-5: Percent Staying at Motel or Hotel in Last 12 Months
  • Table 7-33: Amount Spent on Domestic Travel in Last 12 months, Affluent vs. Other Consumers
  • The Affluent Are Frequent Fliers
  • Table 7-34: Trips by Plane Taken in Last 12 months, Affluent vs. Other Consumers
  • Foreign Travel Common
  • Figure 7-6: Percent with Passport, Affluent vs. Other Consumers
  • Table 7-35: Foreign Travel by Plane in Last 3 Years, Affluent vs. Other Consumers
  • Table 7-36: Reasons for Foreign Travel in Last 3 Years, Affluent vs. Other Consumers
  • Table 7-37: Amount Spent on Foreign Travel in Last 12 months, Affluent vs. Other Consumers
  • Cruises Attract the Affluent
  • Figure 7-7: Percent Taking Cruise Ship Vacation in Last 3 Years, Affluent vs. Other Consumers
  • Table 7-38: Cruise Ship Vacation Destinations, Affluent vs. Other Consumers

CHAPTER 8 Affluent Consumer Segments

• Affluent Men
  • Affluent Men More Concerned about Self-Image
  • Cars a Key Component of Affluent Male Identity
  • Affluent Men Driven by Careers and Confident about Financial Management Skills
  • Affluent Men Tied to Technology
  • Table 8-1: Profile of Affluent Men
• Affluent Women
  • Youthful Appearance More Important to Affluent Women
  • Affluent Women Juggle Demands of Career and Family
  • Affluent Women Concerned about the Environment
  • Affluent Women Are Shoppers
  • Table 8-2: Profile of Affluent Women
• Affluent Families and Their Children
  • Affluent Parents Enjoy Time at Home
  • Table 8-3: Attitudes toward Spending Time with Their Family, Affluent vs. Other Parents
  • Fast Food Part of Affluent Family Profile
  • Table 8-4: Attitudes toward Eating at Home, Affluent vs. Other Parents
  • Shopping Not an Affluent Family Affair
  • Table 8-5: Attitudes toward Shopping, Affluent vs. Other Parents
  • Affluent Parents Teach Kids to Be Careful with Money
  • Table 8-6: Attitudes toward Materialism, Affluent vs. Other Parents
  • Affluent Kids Are Savers Rather than Spenders
  • Table 8-7: Attitudes toward Money, Affluent vs. Other 6- to 11-Year-Olds
  • Table 8-8: Attitudes toward Money and Materialism, Affluent vs. Other 12- to 17-Year-Olds
  • Many Affluent Kids Earn Their Spending Money
  • Table 8-9: Sources and Amount of Income, Affluent vs. Other 6- to 11-Year-Olds
  • Table 8-10: Sources and Amount of Income, Affluent vs. Other 12- to 17-Year-Olds
  • Affluent Kids Reflect Parent’s Drive to Succeed
  • Table 8-11: Attitudes toward Success and Hard Work, Affluent vs. Other 6- to 11-Year-Olds
  • Table 8-12: Attitudes toward Success and Hard Work, Affluent vs. Other 12- to 17-Year- Olds
• A Generational View of the Affluent Market
  • Many Affluent Consumer Values Transcend Age
  • Some Differences Appear with Age
  • Table 8-13: Generational Profile, Affluent vs. Other Consumers
• Affluent Consumers in Big Cities and Small Towns
  • Affluent Share Feelings of Financial Security Regardless of Where They Live
  • Differences Also Significant Table 8-14: Affluent Consumer Profile by Size of Metropolitan Area

CHAPTER 9 The Super-Affluent Consumer

• Overview
  • Super-Affluent Generate 12% of Total U.S. Household Income
  • Table 9-1: Economic Profile, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluent Have Distinct Demographic Profile
  • Table 9-2: Demographic Profile, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluence Primarily a Coastal Phenomenon
  • Table 9-3: Region of Residence, Super-Affluent vs. Other Affluent Consumers
  • The Super-Affluent Congregate in the Very Largest Cities
  • Table 9-4: Residence in Metro Markets by Size of Market, Super-Affluent vs. Other Affluent Consumers
  • Handful of Metro Areas Dominate Super-Affluent Market
  • Table 9-5: 25 Metropolitan Areas Ranked by Number of Super-Affluent Households, 2005
  • Super-Affluent Are Politically Involved and Socially Engaged
  • Table 9-6: Selected Values, Super-Affluent vs. Other Affluent Consumers
  • Table 9-7: Memberships and Selected Philanthropic Contributions, Super-Affluent vs. Other Affluent Consumers
• How the Super-Affluent Manage Their Wealth
  • Money Matters to the Super-Affluent
  • Table 9-8: Attitudes toward Money, Super-Affluent vs. Other Affluent Consumers
  • Feelings of Financial Security a Hallmark of Super-Affluence
  • Figure 9-1: Percent Feeling Financially Secure, Super-Affluent vs. Other Affluent Consumers
  • The Super-Affluent Work for Their Money
  • Table 9-9: Employment Profile, Super-Affluent vs. Other Affluent Consumers
  • Table 9-10: Sources of Aggregate Pre-Tax Income of Consumer Units by Income Level, 2005
  • Income of Ultra-Rich Far Surpasses that of the “Merely Rich”
  • North America Remains Center of Global Super-Affluent Population
  • Financial Profile of Super-Affluent Reveals Differences
  • Table 9-11: Key Differences in Financial Profile, Super-Affluent vs. Other Affluent Consumers
• Highlights of Consumer Behavior
  • Super-Affluent Focus on Staying Young and Keeping Fit
  • Table 9-12: Health and Self-Image, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluent Willing to Pay Full Price to Buy What They Want When They Want It
  • Table 9-13: Attitudes toward Spending, Super-Affluent vs. Other Affluent Consumers
  • Specialty Stores Draw the Super-Affluent
  • Table 9-14: Reasons for Choosing Stores, Super-Affluent vs. Other Affluent Consumers
  • Fashion Key Driver in Super-Affluent Market
  • Table 9-15: Attitudes toward Fashion, Super-Affluent vs. Other Affluent Consumers
  • Watches Major Component of Fashion Profile
  • Table 9-16: Purchase of Watches, Super-Affluent vs. Other Affluent Consumers
  • Online and Catalog Shopping More Popular
  • Table 9-17: Online and Catalog Shopping, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluent Own Multiple Vehicles
  • Table 9-18: Profile of Vehicle Owners, Super-Affluent vs. Other Affluent Consumers
  • Home Improvement Projects Routine
  • Table 9-19: Home Improvement Projects, Super-Affluent vs. Other Affluent Consumers
  • Organic Foods Entice Super-Affluent Shoppers
  • Table 9-20: Attitudes toward Food, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluent Go Out More Often
  • Table 9-21: Highlights of Leisure Activities, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluent Inveterate Travelers
  • Table 9-22: Highlights of Domestic and Foreign Travel, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluent Tied to the Internet
  • Table 9-23: Highlights of Internet Usage, Super-Affluent vs. Other Affluent Consumers
  • Print Media Still Important but Internet Changing Media Habits of Super-Affluent
  • Table 9-24: Highlights of Media Usage, Super-Affluent vs. Other Affluent Consumers
  • Super-Affluent More Amenable to Advertising
  • Table 9-25: Receptivity to Advertising, Super-Affluent vs. Other Affluent Consumers
  • Section 4 Emerging Trends in the Affluent Consumer Market

CHAPTER 10 Advertising and Marketing Trends

• Reaching Affluent Consumers through the Media
  • The Affluent Read Newspapers
  • Table 10-1: Attitudes toward Newspapers, Affluent vs. Other Consumers
  • Magazines Important to the Affluent
  • Table 10-2: Attitudes toward Magazines, Affluent vs. Other Consumers
  • Airline Magazines Have Highest Proportion of Affluent Readers
  • Table 10-3: Magazines with High Percentage of Affluent Readers
  • Affluent Less Involved with TV
  • Table 10-4: Attitudes toward Television, Affluent vs. Other Consumers
  • Premium Channels More Common in Affluent Households
  • Table 10-5: Profile of Subscribers to Premium Cable Channels, Affluent vs. All Consumers
  • HBO, ESPN, and HGTV Have Highest Proportion of Affluent Viewers
  • Table 10-6: Cable TV Outlets with High Percentage of Affluent Viewers
  • Affluent Are Avid Radio Listeners
  • Table 10-7: Attitudes toward Radio, Affluent vs. Other Consumers
  • Affluent Pose Major Threat to Traditional Media Models
  • Table 10-8: Impact of Internet on Media Consumption Habits, Affluent vs. Other Consumers
  • Table 10-9: Consumption of Internet-based Media, Affluent vs. Other Consumers
• Receptivity to Advertising
  • Most Ads a Turn-Off to the Affluent
  • Table 10-10: Attitudes toward Advertising in General, Affluent vs. Other Consumers
  • Table 10-11: Attitudes toward Advertising by Media Type, Affluent vs. Other Consumers
  • Affluent Highly Likely to Find Internet Advertising “Not Useful”
  • Table 10-12: Percent Saying Internet Advertising Not Useful, Affluent vs. Other Consumers by Type of Internet Advertising
  • Super-Affluent Pay Attention to Ads on Public Transit
  • Table 10-13: Receptivity to Out-of-Home Advertising, Affluent vs. Other Consumers
• Marketing Trends
  • Segmentation Vital When Marketing to Affluent
  • Marketing Affected by When Wealth Was Acquired
  • Age and Life Stages Matter
  • Luxury Retailers Lure Younger Demographic
  • Super-Affluent Consumers in a Class by Themselves
  • Marketers Seek to Move beyond Mass Affluent Segment
  • Luxury Brands Move Online
  • Celebrity Endorsements Fail with Affluent but Product-Focused Ads Work
  • Magazines Targeting the Rich See Growth
  • Events and Sponsorships Help Lexus Connect With Affluent Consumers
  • Luxury Retailers Compete for Customers with Special Services
  • Visa Offers “New Affluent” Access to Rewarding Experiences

CHAPTER 11 Strategic Trends and Opportunities

• Strategic Trends
  • The Rich Keep Getting Richer
  • Table 11-1: Percent of Aggregate Household Income by Quintile and Top
  • 5% of Households, 1975 vs. 2005
  • Table 11-2: Percent Increase in Mean Household Income by Quintile and Top 5% of Households, 1975 vs. 2005
  • Affluent Account for Larger and Larger Share of U.S. Consumer Economy
  • Table 11-3: Aggregate Expenditures of Highest Income Quintile as Percent of All Consumer Expenditures, 1984 vs. 2005
  • Super-Affluent Fastest-Growing Segment
  • Table 11-4: Growth in Number of Affluent Households by Income Level, 2001 vs. 2006
  • One-Person Affluent Households Show Exceptionally Rapid Growth
  • Table 11-5: Growth in Number of Affluent One-Person Households by Income Level, 2001 vs. 2006
  • More Multicultural Households Enter Affluent Market
  • Table 11-6: Growth in Number of Households with Income of $100,000 or More by Race and Hispanic Origin, 1999 vs. 2006
  • Table 11-7: Multicultural Households as Percent of Increase in Number of Households with Income of $100,000 or More, 1999 vs. 2006
• Opportunities in the Affluent Market
  • Exceptional Opportunities for Marketers Tapping into Affluent Consumers’ Connection with their Homes
  • Table 11-8: Aggregate Annual Expenditures by Affluent Consumer Units for Household Furnishings and Equipment and Home Entertainment Products and Services
  • Table 11-9: Affluent Market Opportunity Indicators, Home-Centered Purchasing Decisions
  • Table 11-10: Aggregate Annual Expenditures by Affluent Consumer Units for Food at Home
  • Table 11-11: Affluent Market Opportunity Indicators, Purchasing Supermarket Items
  • Leisure Habits of Affluent Generate Significant Marketing Opportunities
  • Table 11-12: Affluent Market Opportunity Indicators, Physical Fitness Activities
  • Table 11-13: Aggregate Annual Expenditures by Affluent Consumer Units for Restaurants, Entertainment Events, and Alcoholic Beverages
  • Table 11-14: Affluent Market Opportunity Indicators, Travel and Entertainment
  • Fashion-Forward Affluent Consumers Generate Sales
  • Table 11-15: Affluent Market Opportunity Indicators, Fashion and Personal-Care Purchasing Decisions
  • Table 11-16: Aggregate Annual Expenditures by Affluent Consumer Units for Apparel and Personal-Care Products and Services
  • Affluent Drive New-Car Market
  • Table 11-17: Aggregate Annual Expenditures by Affluent Consumer Units for Vehicle Purchases and Related Expenses Surveys Show Affluent Still Offer Opportunities for Financial Services Firms

Appendix Addresses of Selected Affluent Market Resources