11/1/13
Wealthy people are different from the average American, particularly because they have more money and are willing to spend it, according to the Shullman Research Center. Four in 10 women (40%) and men (41%) living in households earning more than $75,000 a year say they definitely or probably will buy luxury products or services in the next year. One in three women (34%) and men (37%) have purchased at least one luxury item in the past 12 months.
Still, wealthy Americans aren’t one cohesive group. Among the 92 million homes earning more than $75,000 a year, 26% are headed by millennial-aged individuals, 36% are baby boomers, 8% are from the silent generation, and 30% are Gen Xers.
For marketers, generational differences present both challenges and opportunities. Gen Xers in households earning more than $75,000 a year, for instance, are more likely than their millennial-aged or boomer counterparts to like to buy American products and services (73%, 59%, 66%). Similarly, wealthy millennials are more likely than wealthy Gen Xers and boomers to love to shop (58%, 49%, 36%).
Wealthy millennials (57%) are more likely than Gen Xers (32%) and baby boomers (27%) to plan on spending more money in the coming 12 months.
There are sharp differences in purchasing mindset, based on women’s life stages. Millennial married moms in households earning more than $250,000 are four times more likely than their boomer or Gen X counterpart to say they usually buy the brands their parents purchased (24% vs. 6%). Likewise, millennial married moms in households earning more than $75,000 are more likely than their Gen X or boomer counterparts to look for exclusive products and services (51% vs. 21%).
Indeed, millennial wives with children are looser with their purse strings than Gen X or boomer wives with children. As such, 43% of these millennial-aged shoppers have purchased luxury items in the past 12 months, compared to 28% of Gen X and boomer women. Nearly half of millennial women (47%) will definitely or probably purchase a luxury product or service in the next year.
Meanwhile, millennial women show the highest levels of brand affinity for Google Chrome, according to analytic research firm Vision Critical’s survey that measures social media communication, customer service, perceived value, and uniqueness. “Trust and transparency are the cost of entry to get to Millennials,” says Vision Critical’s Ryan Barker. “Millennials prefer brands that they have a meaningful connection with and offer a competitive uniqueness.”
Millennial women, compared with adults, exhibit loyalty to technology and entertainment brands. Millennials, overall, rank Apple’s iPod in the top 10. By contrast, millennial women rank several Apple brands-including the iPod, iPad, iPhone, and iTunes-in their top 25.
TV talk show host Ellen DeGeneres also appears to have a strong connection with millennial women. DeGeneres ranks in their top 25, while she does not make the list at all for the general market. In fact, DeGeneres is the only personality to make any list.
Brands that are swiftly accumulating affinity among millennial women are Tesla and Netflix.
CONTACTS AND CONNECTIONS: Shullman Research Center, Bob Shullman, President, 1117 E. Putnam Ave., Greenwich, CT 06878; 203-990-0541; bob@shullman.net; www.shullman.net.
Vision Critical, Ryan Barker, EVP Marketing & Decision Analytics, 505 Fifth Ave., 18th Fl., New York, NY 10017; 212-402-8203; ryan.barker@visioncritical.com; www.visioncritical.com.
© 2013 Business Valuation Resources, LLC (BVR). May not be reproduced without written consent of publisher.