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These are a couple of the questions that The American Affluence Research Center (AARC) sought to answer with its recent survey which asked affluent Americans to define a brand preference and expected price point for 37 different goods and services.
The answer? "It depends!"
As Ron Kurtz of AARC puts it,"The results of this new research demonstrate that surveys that attempt to measure spending on "luxury" items are useless, at best, and dangerously misleading, at worst, if "luxury" is not precisely defined by specific price points. The same appears to be true for surveys that attempt to identify "luxury" brands without specifying price points to define "luxury".
And here's why: "The affluent market, as defined by the wealthiest 10% of US households, is composed primarily of people with middle class backgrounds who continue to pursue a somewhat middle class lifestyle with middle class values. They are not conspicuous or ostentatious consumers. They spend conservatively and save carefully...with the exception of a small niche segment, this market does not appear to be very knowledgeable about the pricing and brands of products that are generally recognized by marketers as being in the higher price points associated with the luxury category."
In even simpler terms--many of the affluent in America truly are the "Millionaires Next Door"
The AARC website has more information on the Luxury Defined: What the Affluent Will Spend for Luxury study.
(In the interest of full disclosure, we do have a relationship with the AARC, which offers our Members discounts and custom packages on custom mailing lists of affluent Americans for agent and property marketing).
