Affluent Consumers

The financial goals — and worries — of affluent consumers: It turns out they’re more similar than different from the broader population.

Phillip Nones Economics, Security, Social Commentary , , , , , , ,

But gender differences do exist …

acIn this year’s U.S. presidential election campaign, there’s been a good deal of attention paid to so-called “working class” voters. No doubt, this is a segment of the electorate that’s especially unhappy with the current state of affairs in the country.

But what about other population groups?

As it turns out, affluent Americans are worried about many of the same things as well. A recent survey of affluent Americans conducted by the Shullman Research firm reveals that their worries are fundamentally similar to other Americans.

Here’s what survey respondents revealed as their to worries:

  • Your own health: ~36% of respondents cited as a top worry
  • Your family’s health: ~31% cited
  • Having enough money saved to retire comfortably: ~30%
  • The economy going into recession: ~28%
  • Terrorism: ~27%
  • Inflation: ~23%
  • The price of gasoline: ~22%
  • Being out of work and finding a good job: ~20%
  • Political issues / warfare around the world: ~15%
  • Taking care of elderly parents: ~15%

[One mild surprise for me was seeing how many respondents cited “the price of gasoline” as a source of worry, considering not only the recent easing of those prices as well as the affluence level of the survey sample.]

Generally speaking, the research found few gender differences in these responses, but with a few exceptions.

Men were more likely to cite “inflation” as a concern (28% for men vs. 18% for women), whereas women were more likely to consider “the economy going into recession” as a concern (30% for women vs. 26% for men).

Where there’s more divergence between genders is in how people’s identify their top financial goals. Here’s how the various goals tested by the Shullman research ranked overall:

  • Having enough money for daily living expenses: ~57% citied as a top financial goal
  • Having enough money for unexpected emergency expenses: ~56%
  • Having enough income for retirement: ~46%
  • Reducing my debt: ~41%
  • Improving my standard of living: ~40%
  • Remaining financially independent: ~39%
  • Becoming financially independent: ~33%
  • Keeping up with inflation: ~30%
  • Providing protection for family members if I die: ~29%
  • Purchasing a home: ~19%
  • Providing for my children’s college expenses: ~19%
  • Providing an estate for my spouse and/or children: ~16%

Obviously, some of the goals that rank further down the list are more applicable to certain people at certain stages in their lives — whether they’re just getting started in their career, raising young children and so forth.

But I was struck at how many of these supposed “affluent” respondents cited “having enough money for daily living expenses” as a top financial goal. Wouldn’t more people have already achieved that milestone?

Another interesting finding: With many of the goals, women place more importance on them than do men:

  • 63% of women versus just 50% of men consider “having enough money for daily living expenses” to be a top financial goal.
  • 63% of women versus just 47% of men consider “having enough money for unexpected emergency expenses” a top financial goal.
  • 48% of women versus just 33% of men consider “reducing debt” a top financial goal.
  • 45% of women versus just 34% of men consider “improving their standard of living” a top financial goal.
  • 36% of women versus 30% of men consider “becoming financially independent” a top financial goal.

caOne explanation for the differences observed between men and women may be the “baseline” from which each group is weighing their financial goals. But since the survey was limited to affluent consumers, one might have expected that the usual demographic characteristics wouldn’t apply.  Perhaps the differences are rooted in other, more fundamental characteristics.

What are your thoughts? Please share them with other readers.

More information and insights from this study can be accessed here (fee-based).

Affluent consumers around the world: More similar than different.

Phillip Nones Advertising, Demographics, Marketing Communications, Social Commentary, Uncategorized , , , , , , ,

Moods and mindsets converge.

worldwide affluent consumers

As the world becomes more interconnected, it’s having an impact on the mindsets of marketplaces. A confluence of perspectives appears to be happening.

A good case in point is affluent consumers. The idea that rich or affluent people are something of a homogeneous segment was put forth about 10 years ago in Robert Frank’s book Richistan.

The author contended that affluent consumers are united by shared characteristics and shared experiences that are becoming progressively more distinct from middle-class consumers.

In fact, he posited that Affluents had implicitly become their own country (“Richistan”).

Since then, we’ve had a global recession or two … along with social unrest on nearly every continent. Have the sociological trend lines changed?

A recent analysis of results from an Ipsos MediaCT survey of affluent consumers in ~50 countries suggests not.

Commenting on the research findings, author  and journalist Stephen Kraus writes, “Affluents continue to form a globally coherent segment marked by cross-border similarities in attitudes, lifestyles and marketplace preferences … this analysis also finds a remarkably consistent demographic, psychographic and media profile among Affluents around the world.”

Regarding the consumption of media, Ipsos found that affluent consumers are using mobile devices and digital media far more than before – not at all surprising since this segment is also noted for being early adopters of new technologies and products.

But even with the big growth of mobile and digital, Affluents’ use of traditional media has declined only modestly. Overall, the segment is more engaged in media than ever before, with the newer forms of media usage “layered” on top of older ones.

For companies that market “high-end” products and services to the affluent segment, it’s actually becoming easier to apply the same messaging and marketing across multiple countries and cultures – with allowances for language differences being made, of course.

Despite all the convergence that’s happened, some attitudinal qualities of affluent consumes continue to distinguish themselves between different cultures, however. For example, the Ipsos survey found these differing characteristics:

  • Growth in luxury purchases is strongest among affluent consumers in the Asia-Pacific region.
  • Latin American affluent consumers are particularly enthusiastic users of social media – and international media in general.
  • American affluent consumers are strong in spending on recreational activities such as golf, tennis and skiing.

And European Affluents?  Well, they’re more subdued in their economic optimism – and their spending – at the moment.