The Affluent Consumer: Marketing and Selling the Luxury Lifestyle

209 Pages·2006·0.93 MB·English

by  Ronald D. Michman

The Affl uent Consumer

The Affl uent Consumer
Marketing and Selling the
Luxury Lifestyle
Ronald D. Michman and Edward M. Mazze
Library of Congress Cataloging-in-Publication Data
Michman, Ronald D.
The affl uent consumer : marketing and selling the luxury lifestyle / Ronald D. Michman and
Edward M. Mazze.
p. cm.
Includes bibliographical references and index.
ISBN 0–275–99282–9
1. Affl uent consumers—United States. 2. Luxuries—United States—Marketing. 3. Target
marketing—United States. I. Mazze, Edward M. II. Title.
HF5415.33.U6M53 2006
658.8'343—dc22 2006021766
British Library Cataloguing in Publication Data is available.
Copyright © 2006 by Ronald D. Michman and Edward M. Mazze
All rights reserved. No portion of this book may be
reproduced, by any process or technique, without the
express written consent of the publisher.
Library of Congress Catalog Card Number: 2006021766
ISBN: 0–275–99282–9
First published in 2006
Praeger Publishers, 88 Post Road West, Westport, CT 06881
An imprint of Greenwood Publishing Group, Inc.
www.praeger.com
Printed in the United States of America
∞
TM
The paper used in this book complies with the
Permanent Paper Standard issued by the National
Information Standards Organization (Z39.48–1984).
10 9 8 7 6 5 4 3 2 1
With love for Laura, Carol, Marc Ross, Andy, and Maxine and
remembrance for Ruth, Rose and Morris.
Ronald D. Michman
To Sharon, my wife, partner, and friend, and to my
daughter Candace and my son Thomas.
Edward M. Mazze

Contents
Preface ix
Acknowledgments xi
Chapter 1. Wealth in America 1
Chapter 2. Bridging the Gap 19
Chapter 3. When Good Is Not Good Enough 35
Chapter 4. Changing Economic Dimensions 51
Chapter 5. The Affl uent All-American Consumer 69
Chapter 6. Affl uent Groups and Aspirations 85
Chapter 7. Segmenting the Affl uent Market 103
Chapter 8. Upscale Strategies Are Not a Panacea 121
Chapter 9. Redefi ning Affl uent Consumer Lifestyles 137
Chapter 10. Myths, Realities and Predictions 157
Notes 171
Selected Bibliography 175
Index 187

Preface
The greatest challenge for business executives is to update themselves with
changes in the marketplace. There are new groups of consumers emerging
with unique needs and wants. This book deals with the affl uent consumer
and is about building long-term relationships with this market segment and
developing marketing programs to reach them.
Affl uent market dynamics have developed an expanded role for marketing
strategy. There are few books depicting the affl uent market, and those that
exist report on research studies of millionaires or advise salespeople on how to
sell to the affl uent market. A number of articles have focused on broad strate-
gies for marketers to reach this growing market.
Although there have always been affl uent consumers, a greater number of
households have been attaining this fi nancial status each year. The cause of the
greatest increase in the affl uent population has been the growth of the female
labor force and the dual-income family. The new rich can be segmented by
many factors, including lifestyle, age, gender, and ethnic background, in contrast
to previous affl uent households that consisted primarily of families headed by
white Anglo-Saxon men. The new rich represent new challenges and opportu-
nities for retailers, manufacturers of consumer products, and service providers.
This market is valued at billions of dollars each year.
This book represents one effort to close some of the gaps in the literature on
marketing to the affl uent. The book emphasizes a comprehensive perspective on
this special market, with a focus on strategic decision making. Past books do not
consider cultural forces affecting this market or the psychological and sociological
base for purchasing behavior. The economic development of the United States
in the past decade has had a profound impact on the nature and structure of the
affl uent market.