In the latest of the twice yearly surveys of the most affluent 10% of US households by The American Affluence Research Center, the respondents were asked to specify the most they could imagine spending for 37 different products and services if they were to purchase the item during the next 12 months. They were also asked to name the brand they would most likely purchase. The goal was to identify how the affluent define luxury, in terms of price points and brands, for each of the products.

The minimum and maximum price points reported in this new survey, though realistic for many of the products, should probably be dismissed as being rather “extreme”. The median value, which is the mid point (not the average) of all the values/prices reported, seems to be very realistic for all 37 products and services, if not a bit low, given the affluence of the respondents. It is important to note the relative degree of consistency between women and men in the median values for most of the 15 products where they both gave opinions.

For a European cruise, the median value was $300 per night per person. This was true for the responses of both males and females. The lowest price suggested was $60 (men) and $100 (women). The highest price was $10,000 (men) and $20,000 (women).

Less than a quarter of the respondents named the cruise brand they would most likely purchase. Among those that did, the most frequently mentioned brands were Royal Caribbean (18%) and Princess (17%).

The AARC research has consistently shown over the years that the affluent represent over 3 million cruisers per year and that most of their cruises are with companies that would be considered premium or contemporary brands. The price points and brands reported in this new survey are consistent with prior survey findings.

The Fall 2008 Affluent Market Tracking Study #14 is a national survey representative of the wealthiest 11.2 million households (as defined by net worth in the most recent Federal Reserve Board research). The 552 survey participants have an average income of $304,000 and an average net worth of $3.1 million.

The results of this research demonstrate that surveys that attempt to measure spending on “luxury” items are useless, at best, and dangerously misleading, at worst, if “luxury” is not precisely defined by specific price points. The same appears to be true for surveys that attempt to identify “luxury” brands without specifying price points to define “luxury”.

Survey highlights are posted at www.affluenceresearch.org

AARC provides marketing research, mailing lists, and consulting services to businesses that focus on the affluent. For more information: Ron Kurtz at KurtzGroup@comcast.net or 770-740-2200.

Tags: Affluence Research, affluence surveys, luxury travel
Posted in Affluence Research, Cruises, Luxury Defined, Luxury Market & Goods, Vacations | No Comments »

In the latest survey of the most affluent 10% of US households by The American Affluence Research Center, only 14% of the respondents indicated plans to cruise during the next 12 months. This is the same as the level recorded in the Spring 2008 survey and effectively the historic low for this series of twice yearly surveys, which were started in Spring 2002.

Those most likely to cruise are age 60+ (18% of this group) and those with a net worth of $6 million or more (29% of this group). Given that these surveys are representative of the 11.2 million US households that comprise the wealthiest 10% of all households, this market segment represents the potential of 1.6 million cruise buying households (for 3.2 million cruisers).

The AARC research has consistently shown over the years that the affluent represent over 3 million cruisers per year and that most of their cruises are with companies that would be considered premium or contemporary brands. This survey included a series of questions for which the goal was to identify how the affluent define luxury, in terms of price points and brands, for each of 37 different products and services. The price points and brands reported in this survey for a European cruise are consistent with prior survey findings.

The Affluent Market Tracking Study #14 is a national survey representative of the wealthiest 11.2 million households (as defined by net worth in the most recent Federal Reserve Board research). The 552 survey participants have an average income of $304,000 and an average net worth of $3.1 million.

Survey highlights are posted at www.affluenceresearch.org

AARC provides marketing research, mailing lists, and consulting services to businesses that focus on the affluent. For more information: Ron Kurtz at KurtzGroup@comcast.net or 770-740-2200.

Tags: Affluence Research, affluence surveys, cruise travel
Posted in Affluence Research, Cruises, Vacations | No Comments »

In the latest of the twice yearly surveys of the most affluent 10% of US households by The American Affluence Research Center, the respondents were asked to specify the most they could imagine spending for 37 different products and services if they were to purchase the item during the next 12 months. They were also asked to name the brand they would most likely purchase. The goal was to identify how the affluent define luxury, in terms of price points and brands, for each of the products.

The minimum and maximum price points reported in this new survey, though realistic for many of the products, should probably be dismissed as being rather “extreme”. The median value, which is the mid point (not the average) of all the values/prices reported, seems to be very realistic for all 37 products and services, if not a bit low, given the affluence of the respondents. It is important to note the relative degree of consistency between women and men in the median values for most of the 15 products where they both gave opinions.

For a room in the winter in a Caribbean resort, the median value was $300 for men and $250 for women. The lowest price suggested was $50 (men) and $60 (women). The highest price was $3,000 (men) and $1,500 (women).

Only a third of the respondents named the brand they would most likely purchase. Marriott (20%) and Ritz Carlton (9%) were the two mentioned most frequently.

For a hotel room for a New York City vacation, the median value was $300 for both men and women. The lowest price was $50 for men and $100 for women. The highest price was $1,000 for both men and women.

Only a third of the respondents named the hotel brand they would most likely buy. Marriott (27%) and Hilton (16%) were the two brands mentioned most frequently.

For a European cruise, the median value was $300 per night per person. This was true for the responses of both males and females. The lowest price suggested was $60 (men) and $100 (women). The highest price was $10,000 (men) and $20,000 (women).

Less than a quarter of the respondents named the cruise brand they would most likely purchase. Among those that did, the most frequently mentioned brands were Royal Caribbean (18%) and Princess (17%).

The AARC research has consistently shown over the years that the affluent represent over 3 million cruisers per year and that most of their cruises are with companies that would be considered premium or contemporary brands. The price points and brands reported in this new survey are consistent with prior survey findings.

The Affluent Market Tracking Study #14 is a national survey representative of the wealthiest 11.2 million households (as defined by net worth in the most recent Federal Reserve Board research). The 552 survey participants have an average income of $304,000 and an average net worth of $3.1 million.

The results of this research demonstrate that surveys that attempt to measure spending on “luxury” items are useless, at best, and dangerously misleading, at worst, if “luxury” is not precisely defined by specific price points. The same appears to be true for surveys that attempt to identify “luxury” brands without specifying price points to define “luxury”.

Survey highlights are posted at www.affluenceresearch.org

AARC provides marketing research, mailing lists, and consulting services to businesses that focus on the affluent. For more information: Ron Kurtz at KurtzGroup@comcast.net or 770-740-2200.

Tags: Affluence Research, luxury travel
Posted in Affluence Research, Luxury Defined, Luxury Market & Goods, Travel, Vacations | No Comments »

Obama’s Support Among Women and Independents Offsets McCain’s Strength with Men

Contrary to conventional wisdom that the wealthy are staunch Republican voters, Obama and McCain each received 48% of the votes among likely voters in a new survey of the wealthiest 10% of US households. About 4% of the likely voters indicated they had not made a decision or were supporting another candidate.

With 552 respondents, the national survey is representative of the wealthiest 11.4 million households (as defined by net worth in the most recent Federal Reserve Board research) that will account for almost 25% of all votes to be cast in the presidential election. The survey was completed September 25 by the American Affluence Research Center in Atlanta.

The survey participants have an average income of $304,000 and an average net worth of $3.1 million. The respondents reported party affiliations of 42% as Republicans, 30% as Democrats (due to 39% share among women), and 27% as Independents.

Men favored McCain 59% to 36% for Obama, while women favored Obama 61% to 36% for McCain. Independents favored Obama 55% to 34% for McCain.

The source of McCain’s support was 80% from people who considered themselves Republicans, 19% from Independents, and 1% from Democrats. The source of Obama’s support was 63% from Democrats, 31% from Independents, and 6% from Republicans.

Of 18 possible issues that were listed, the five issues most important to McCain’s supporters are state of the economy (48%), war on terrorism (33%), war in Iraq (29%), long term energy program (29%), and 2001 Bush tax cuts (27%).

The issues most important to Obama’s supporters are the economy (59%), war in Iraq (55%), universal health care (28%), foreign policy (28%), and energy program (26%).

Additional data is available in categories defined by gender, age, income, and net worth and will be included in the report for The Affluent Market Tracking Study #14, a unique survey conducted twice a year to identify the outlook of the wealthy for the economy, the stock market, their personal income, and their spending plans for over 20 different products and services.

AARC provides marketing research, mailing lists, and consulting services to businesses that focus on the affluent. For more information: Ron Kurtz at KurtzGroup@comcast.net or 770-740-2200 .

Tags: Affluence Research, survey of the affluent, survey of the wealthy
Posted in Affluence Research | No Comments »