affluent consumers

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CONSUMER BEHAVIOR 2012

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AFFLUENT CONSUMERS

50.1 Profile

According to Spectrem Group (www.spectrem.com), the number of affluentAmerican households, based on net worth excluding the value of their primaryresidence, has been as follows:

>$100,000 >$100,000 >$1 million >$5 million >$25 million

2005: n/a 14.0 million 8.3 million 930,000 n/a 2006: n/a 15.3 million 9.0 million 1.14 million 12,200 2007: 33.4 million 15.7 million 9.2 million 1.16 million 12,500

2008: 31.2 million 11.3 million 6.7 million 840,000 8,400 2009: 34.6 million 12.7 million 7.8 million 980,000 9,700 2010: 36.2 million 13.5 million 8.4 million 1.06 million 105,000

According to the 15 Annual World Wealth Report, published in 2011 byth

Capgemini (www.capgemini.com), the North American population of high net-worthindividuals (HNWIs) has been as follows: 2007: 3.3 million 2008: 2.7 million 2009: 3.1 million 2010: 3.4 million

50.2 Population Centers of U.S. Affluence

According to Capgemini, the following metropolitan areas had the greatestnumber of individuals with assets of $1 million and more in 2010 (change from 2009 inparenthesis): New York: 720,000 (7.9%) Los Angeles: 256,500 (8.8%) Chicago: 212,300 (7.1%) Washington, D.C.: 164,400 (7.9%) San Francisco: 147,400 (6.6%)

Boston: 109,800 (7.3%) Philadelphia: 110,400 (6.0%) Detroit: 92,100 (3.4%) San Jose: 88,800 (2.7%) Houston: 96,700 (9.6%)
http://www.spectrem.com/http://www.capgemini.com/http://www.capgemini.com/http://www.spectrem.com/


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According to Phoenix Marketing International (www.phoenixmi.com), the numberof millionaire households in each state in 2010 and ratio of millionaire to totalhouseholds was as follows:

Total HH $1MM+ Ratio Alabama: 1,881,966 71,224 3.78%

Alaska: 248,009 14,805 5.97% Arizona: 2,458,106 117,094 4.76% Arkansas: 1,138,318 36,854 3.24% California: 12,653,856 716,316 5.66% Colorado: 1,949,583 98,085 5.03% Connecticut: 1,347,693 89,647 6.65% Delaware: 343,322 18,412 5.36% District of Columbia: 262,976 14,533 5.53% Florida: 7,455,767 362,285 4.86% Georgia: 3,639,796 156,943 4.31% Hawaii: 444,202 30,793 6.93%

Idaho: 575,621 22,917 3.98% Illinois: 4,800,176 242,536 5.05% Indiana: 2,501,280 99,440 3.98% Iowa: 1,204,906 49,451 4.10% Kansas: 1,096,736 47,226 4.31% Kentucky: 1,743,587 61,315 3.52% Louisiana: 1,701,745 65,382 3.84% Maine: 553,493 22,191 4.01% Maryland: 2,129,773 144,686 6.79% Massachusetts: 2,521,928 150,844 5.98% Michigan: 3,846,728 166,611 4.33% Minnesota: 2,057,554 103,641 5.04% Mississippi: 1,113,217 35,847 3.22% Missouri: 2,364,933 95,312 4.03% Montana: 394,196 15,491 3.93% Nebraska: 704,049 29,272 4.16% Nevada: 990,855 48,220 4.87% New Hampshire: 514,667 29,790 5.79% New Jersey: 3,175,894 212,396 6.69% New Mexico: 766,050 31,145 4.07% New York: 7,263,927 381,197 5.25% North Carolina: 3,725,318 144,029 3.87% North Dakota: 265,786 9,907 3.73% Ohio: 4,566,369 188,908 4.14% Oklahoma: 1,442,985 53,910 3.74% Oregon: 1,513,336 66,839 4.42% Pennsylvania: 4,934,144 227,680 4.61% Rhode Island: 409,575 20,873 5.10%
http://www.phoenixmi.com/http://www.phoenixmi.com/


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South Carolina: 1,802,904 71,114 3.94% South Dakota: 317,030 11,865 3.74% Tennessee: 2,519,914 94,560 3.75% Texas: 8,796,031 381,165 4.33% Utah: 891,901 42,238 4.74%

Vermont: 252,584 11,806 4.67% Virginia: 3,043,091 180,638 5.94% Washington: 2,577,274 133,582 5.18% West Virginia: 761,493 26,090 3.43% Wisconsin: 2,252,664 97,266 4.32% Wyoming: 219,309 10,631 4.85%

50.3 Away-From-Home Activities

The following is an index comparing those with an income of $100,000 or morewith the general U.S. population for likelihood of a monthly visit to various venues

(index of 100 = likelihood of venue visits same as general population; source: Arbitron): Health club: 205 Airport: 191 Stadium or arena: 176 Office building lobby: 163 Gas station: 155 Transportation, interior (bus, taxicab, train): 146 Coffeehouse or sandwich shop: 145 Shopping mall: 130 Fast food or casual dining restaurant: 129 Medical office (doctor, dentist, veterinarian): 119

Hospital or medical test facility: 118 Large retail or department store: 118 Movie theater: 110 Bar: 107 Grocery store: 102 Drug store: 97 Convenience store: 82

50.4 Use Of Media

In its Media Comparisons Study, The Nielsen Company provided the following

comparison of daily media use in 2010 by all adults to those with annual householdincomes of $100,000 or more:

$100,000+ All Adults

Television: 232.8 minutes 319.2 minutes Internet: 190.8 minutes 156.6 minutes Radio: 67.8 minutes 91.2 minutes


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Newspapers: 27.6 minutes 26.4 minutes Magazines: 13.2 minutes 15.6 minutes

While they may spend less total time listening to radio than average, high-income earners listen in heavier concentration during morning and afternoon drive

times. In a 2010 study, International Demographics (www.themediaaudit.com) foundthat 59.4% of those earning $150,000 or more in household income were listening toradio between 5:00 a.m. and 10:00 a.m., compared to 46.4% for all U.S. adults; 55.6%of adults who earn $150,000 or more in household income were listening to radioduring 3:00 p.m. and 7: 00 p.m. on a typical day, compared to 42.9% for all adults.

50.5 Internet Usage Among Affluent Consumers

Use Of The Internet In Higher-Income Households, a November 2010 study bythe Pew Internet & American Life Project (www.pewinternet.org), found that 95% of

Americans who live in households earning $75,000 or more a year use the Internet at

least occasionally, compared with 70% of those living in households earning less than$75,000. And, 95% of higher-income households own some type of cellphonecompared with 83% in households with less income.

Affluent consumers use smartphones to access the Internet as follows (source:The Affluence Collaborative, April 2011):

$200k-$500k >$500k General Population

Every day: 37.5% 42.6% 20.3% Weekly: 19.2% 18.5% 11.4% Rarely: 18.3% 1.9% 10.1% Never: 23.0% 37.0% 58.2%

_________________________________________________________________

Affluent consumers are tapping into mobileand online tools to support purchase decisionsmore frequently than the general population,research indicates. According to a surveyconducted by the Affluence Collaborative, themajority of affluent Internet users who earnmore than $200,000 a year conduct productresearch on a weekly basis.

eMarketer, 6/29/11 _________________________________________________________________
http://www.themediaaudit.com/http://www.pewinternet.org/http://www.pewinternet.org/http://www.themediaaudit.com/


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According to an April 2011 survey by The Affluence Collaborative, affluentconsumers use the following social networks (percent of respondents):

$200k-$500k >$500k G eneral Population

Facebook: 68.0% 72.0% 71.0% MySpace: 17.8% 31.5% 24.5% LinkedIn: 42.3% 40.5% 21.5% Twitter: 22.8% 36.0% 14.0% Meetup: 6.0% 13.5% 3.0% ASmallWorld: 0.8% 5.0% 0.5% None of above: 22.5% 19.0% 22.0%

Affluent consumers follow brands on social networks for the following reasons(source: The Affluence Collaborative, April 2011):

$200k-$500k >$500k General Population

To get deals and discounts: 39.4% 29.0% 44.3% Love the brand and wanted

to follow it: 39.7% 52.3% 36.9%

To keep up with news aboutthe brand: 31.3% 34.8% 27.5%

Noticed someone elsefollowing the brand: 22.2% 31.0% 18.8%

The social networkrecommended it: 21.2% 33.5% 16.1%

An ad led me to it: 25.9% 31.0% 14.8% Mentioned in an article: 22.6% 23.9% 12.8% Professional interest: 18.9% 15.5% 10.7% The tweets/posts are

entertaining: 3.4% 7.7% 9.4%

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Luxury marketers take note, according toAffluence Collaborative, wealthy Internet usersconnect with brands on social networks forsignificantly different reasons than the generalpopulation. The social networks they use to doso are different, too.

eMarketer, 5/10/11

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50.6 Market Resources

15 Annual World Wealth Report, Capgemini, 2011.th

(www.us.capgemini.com/services-and-solutions/by-industry/financial-services/solutions/wealth/worldwealthreport/)

Luxury Institute, 115 East 57 Street, 11 Floor, New York, NY 10022. (646) 792-2669.th th

(www.luxuryinstitute.com)

Prince & Associates, 9 Sidecut Road, Redding, CT 06896. (203) 938-5557.(www.russalanprince.com)

Spectrem Group, 641 West Lake Street, Suite 402, Chicago, IL 60661.(312) 382-8284. (www.spectrem.com)

The Affluent Market Tracking Study #19, The American Affluence Research Center,Spring 2011.

The American Affluence Research Center, P.O. Box 978, Alpharetta, GA 30009.(770) 740-2200. (www.affluenceresearch.com)

Unity Marketing, 188 Cocalico Creek Road, Stevens, PA 17578. (717) 336-1600.(www.unitymarketingonline.com)

Use Of The Internet In Higher-Income Households, Pew Internet & American LifeProject, November 2010.

Wealth Report, The Luxury Institute, September 2011.
http://www.luxuryinstitute.com/http://www.russalanprince.com/http://www.spectrem.com/http://www.affluenceresearch.com/http://www.unitymarketingonline.com/http://www.unitymarketingonline.com/http://www.affluenceresearch.com/http://www.spectrem.com/http://www.russalanprince.com/http://www.luxuryinstitute.com/


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