http://www.pbs.org/newshour/rundown/2011/09/a-broader-view-of-americas-wealth-ineqaulity.html
Recent stories regarding the inequality of wealth (and income) in the U.S. should have profound impact on marketers. Putting aside the issues of social policy, more specific attention must be paid to marketing to the affluent versus marketing in general. The affluent buy for very different reasons than the "mass" population. And they buy in different ways
For some time this blog (and our website www.premiumknowledge.net) has pointed out that the most significant variable in the affluent consumer's decision to purchase is the semiotic (social signaling) content of the good or service. That is, the consumer asks him/herself "Does the article communicate to others (and reinforce for me) the identity that I want in this society?" Notice we use the word "identity" as distinguished from "social status" or "image."
To the person whose identity is heavily rooted in "personal frugality" it is important that the article convey (and reinforce) this image. This person will not buy a Rolls Royce motor car or a Hermes scarf even for an impossibly low sale price. It's not about price, it's about symbolism.
Likewise the individual whose identity is heavily rooted in being (and being seen as) affluent will buy a luxury car or designer purse instead of something more functional and less expensive in either category. Again, it is not about price. it is about symbolism.
Based on our research the top 25% of households (those with at least $100,000 in income) place great emphasis on the social signals that their purchases convey to themselves and others. We have identified 10 different sets of these values and identified the impact each set has on product preferences, pricing, channel selection, service expectations, etc by category (i., automotive, finance, travel, apparel, etc.). Again, these differences are WITHIN the top 25% who are responsible for the vast majority of profitable sales for today's mechant. In today's economy, instead of running sales and offering discounts to everyone, we recommend merchants understand the real value they are already offering to these afluent and price accordiningly.
For more information contact info@prmiumknowledge.net.
