Marketing to
Affluent Consumers
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Marketing to Affluent Consumers
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Definition of Affluent Consumer
Income Segments
Total Net Worth Segments
Discretionary Spending Segments
Affluent Households’ Vehicles
Expenditure Plans
Cultural & Leisure Activities
Shopping Attitudes
Psychographic Segments
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Definition of Affluent Market
According to the Mendelsohn Affluent Survey, the
definition is:
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Households with $100,000 or more in total income:
23,900,000 households, or 20% of total households.
Heads of House with $100,000 or more in total
income – 43,100,000, or 19% of total adults.
Source: Mendelsohn Affluent Survey, 2009 Annual Report
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Income Segments in the Affluent Marketplace
Household
Income Segment
Percent of
Total HHs
Percent of
Affluent HHs
Estimated Total
HH Income
$100,000-$149,000
12%
59%
$1.7 trillion
$150,000-$249,000
6%
31%
$1.4 trillion
$250,000 or more
2%
10%
$1.5 trillion
Source: Mendelsohn Affluent Survey, 2009 Annual Report
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Number of Affluent Households by
Total Net Worth*
Under $250,000
4.7 million
$2,000,000 or more
2.8 million
$250,000 - $499,999
5.1 million
$500,000 - $999,99
6.9 million
$1,000,000 - $1,999,999
4.3 million
*Definition of Net Worth = all household assets
owned by all household members, less all debts
the household may owe.
Source: Mendelsohn Affluent Survey, 2009 Annual Report
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Discretionary Spending Segments
Ipsos Mendelsohn estimates that the affluent market spent
$1.2 trillion across all the expenditures measured, which are
aggregated into the following 12 summary categories.
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Home-related
Personal Insurance
Travel
Apparel
Charitable Donations
Entertainment & Dining
Computers, electronics
Personal Care, Wellness
Watches, Jewelry
Alcoholic Beverages
Weddings
Other
Source: Mendelsohn Affluent Survey, 2009 Annual Report
19%
18%
16%
10%
8%
7%
5%
3%
3%
2%
2%
7%
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Affluent Households’ Vehicles
Total Vehicle Units (in millions)
10.0%
Sport utility vehicle
7.2%
Pickup truck
7.1%
Midsize car
Crossover vehicle
(total)
6.1%
5.9%
Luxury car
5.2%
Compact car
3.7%
Van
Sporty Car
Fullsize Car
2.7%
2.2%
Source: Mendelsohn Affluent Survey, 2009 Annual Report
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Plans for the Next 12 Months
Ipsos Mendelsohn has been asking respondents about significant life
event or expenditures they or someone else in their household plan
to experience in the next 12 months.
Respondent plans to do in next 12 months (millions)
Invest in stocks/ mutual funds
Take a trip/ vacation outside the U.S.
Redecorate home
Remodel or renovate other room(s)
Buy or lease a new car, SUV, or truck
Remodel or renovate bathroom
Take a cruise
Remodel or renovate kitchen
Change careers or jobs
Move or relocate
Have a baby
Buy a new home
Start a new business
Retire
Source: Mendelsohn Affluent Survey, 2009 Annual Report
13.9
12.2
7.3
7.0
6.3
6.2
6.0
4.8
3.6
2.3
1.9
1.8
1.7
1.3
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Cultural and Leisure Activities
Visited/Attended in the Past Year (in millions)
34.4
Movie Theatres
26.4
Sports Events
22.1
Music Concerts
Museums
20.9
Live Theatre Performances
20.8
12.1
Art Auctions/Gallery Exhibits
6.7
Auto Shows
Antique Shows
5.4
Dance/Ballet Performances
5.4
Boat Shows
3.8
Source: Mendelsohn Affluent Survey, 2009 Annual Report
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Shopping Attitudes
Ipsos Mendelsohn’s new psychographic section highlighted the
following information about shopping.
Affluent who agree with statement (millions)
When I discover a brand I really like, I keep buying it
When it comes to quality, you get what you pay for
Good value for the money is more important than price
Sometimes I treat myself to something, even though I don’t need it
Owning good quality things brings me enjoyment
I look for superior service when I shop
I prefer to buy American-made products
I buy the brands I grew up with
I don’t tend to seek the advice of others when I am making a purchase
I am willing to spend more money for gourmet food
I am willing to pay more for luxury toiletries and cosmetics
I derive enjoyment from any kind of shopping
Source: Mendelsohn Affluent Survey, 2009 Annual Report
37.5
34.5
32.8
28.4
25.1
24.5
24.4
16.6
16.0
14.1
12.6
11.4
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Affluent Psychographic Segments
Ipsos Mendelsohn determined that the affluent marketplace divides
itself into the following four psychographic segments, based on
answers to 100+ statements.
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Affluent StyleSetters – 11.8 million (27%)
Enjoy keeping up with the latest fashions; get enjoyment from shopping for clothes;
have an excellent sense of style; people often ask my advice on fashion and what
they should wear; prefer to buy designer or luxury brands.
Affluent Traditionalists – 11.6 million (27%)
Buy the brands I grew up with; stock market is too risky for me; tend to buy based
on price, not quality; like to take vacations in the U.S. rather than abroad; not very
interested in current affairs and politics.
Affluent Individualists – 10.0 million (23%)
Tend to take the lead in decision-making; environmental issues are overblown;
try to keep up with technological developments; keep up with financial news; am
a risk taker.
Affluent Globalists – 7.6 million (18%)
Would be willing to pay more for environmentally friendly products; minimizing my
impact on the environment is an important part of my life; traveling internationally
helps me learn about other cultures; enjoy eating foreign cuisines; believe in
protecting the environment.
Source: Mendelsohn Affluent Survey, 2009 Annual Report
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Thank You!
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