Michela O¶Connor Abrams

President, Dwell Media

Dwell Community

Brand Experience

The New Face of Affluence Panel
An ongoing effort to track, chronicle, and contextualize the habits of New Affluents and make that intelligence available to trend watchers.

2,250 affluent panel members Household incomes of $100,000+

And
Agreement with 5 of 6 psychographic
Owning good-quality things brings me enjoyment. I like to stand out from others. I am usually one of the first to try new products/services. I think of myself as a creative person. I try to keep up with technological developments. I believe in protecting the environment.

The New Face of Affluence Studies
A range of cohesive topics explored Panelists are asked about:
Overall life values, current concerns, and factors in general decision making Attitudes and motivations around consumerism and brands Brand engagement and advocacy A specific recent important personal purchase. They identified the purchase type, brands under consideration, pricing as well as personal motivators, product attributes, and factors related to brand selection.

Age Breakdown

54%

18%

28%

Influential and independent
95% 91%

94% I rely on my own personal taste rather than trends 74% I like to offer advice to others 71% People often ask my advice when making
important purchase decisions
79%

90%

85%

66% I consider myself and opinion leader 23%

Busy Modern Lives
85% spend their free time either
working out or developing new skills and knowledge

78%

of them travel and enjoy socializing with friends and family. devote time to helping take care of others, whether that means their parents or people in their community

58%

16% say ³It¶s easy for me to
prioritize and find balance in my life.´

These core concerns are ³top of mind´ when New Affluents make decisions for themselves or their families.

New Affluents¶ purchase decisions are

inspired by a strong sense of self.

New Affluents Identify Important Aspects of Life

93% Enjoying Good Physical Health 93% Maintaining Emotional Stability 72% Protecting The Environment 69% Achieving Financial Success 65% Earning Career Success 63% Raising a Family
35% Being Active in the Community 12% Achieving Status in Society

Important Aspects of Life: Parents¶ Generation at Same Stage of Life

45% / 93% Enjoying Good Physical Health 45% / 93% Maintaining Emotional Stability 7% / 72% Protecting The Environment 61% / 69% Achieving Financial Success 45% / 65% Earning Career Success 87% / 63% Raising a Family 25% / 35% Being Active in the Community 24% / 12% Achieving Status in Society

60% agreed completely with the statement ³Technology is indispensable to the way I communicate.´

Smartphones: from nicety to necessity
Do you use any of the following smartphones as your primary communication device?

Mobile technologies are driving brand interaction

iPad: a breakthrough communications (and marketing) device

Source: Dwell Affluence Panel June 2010 Base: 762

Meaningful Materialism
95%

95% I feel good when I make a
smart purchase decision

85% I would91% prefer to have

fewer, higher-quality items in my life 90%
85% 77% I care how and where

91% Over-consumption is
problematic in our society

products I buy are made 79%

90% I consider myself a
discerning consumer

79% I seek out products that
29% 23%

are authentic and meaningful

29% The products I buy
reflect my social status

23% My decisions are influenced
by the opinion of others

Brand Value Does Sustainability Matter? Is Luxury Dead?

Brand Value
Rather than thinking of their purchases as products to consume, the New Affluents are looking for a different relationship with what they buy. The days of rolling out top-down, controlled brand introductions and messaging are going the way of trans fats. Quickly being replaced by a new way of interacting with consumers²a dialogue.

New Affluents reveal a remarkable willingness to consider all brands on an equal footing.

692 brands were identified when asked to name
brands they admire.

86% will pay more for a brand they like. 68% feel a personal connection with brands they admire. 53% want brands to engage with them in more meaningful
ways.

53% say great brands create experiences not products.

Success brands deliver an emotional connection
When a brand that you admire or that you recommend to others succeeds, which of the following describe how you feel?

Source: Dwell Affluence Panel June 2010 Base: 762

Admired brands earn loyalty and personal connection
How much you agree with the following statements about this brand:

96% I am completely
satisfied with my purchase decision

71% If I had to, I¶d go
to extra lengths to acquire this brand

94% I readily recommend
this brand to others

69% I¶m passionate
about this brand

85% If this brand were to
disappear, I¶d miss it

Creating Brand Advocates

97% Discuss a brand with
friends relatives and colleagues

97% Recommend a brand to
others

57% Post an online review
about a brand

55% Attend live events
hosted by a brand

54% Post a comment about a
brand on a website or blog

23% Blog about a brand

³If I find a brand I like and learn to trust for quality, design, and value, I look there first and try new products they offer.´
In describing a preferred brand« ³I like their design, their lack of complication and am proud to associate my 'brand' with theirs.´

³Authenticity comes with an µahhhh.¶ It takes me by surprise and has functionality and innovation. Then I say, µOf course!¶´

³I look for brands that do not depend on trends, celebrity endorsements or "deals" to convince me to purchase. I look for design and style that is timeless and well made.´

Does Sustainability Matter?

Top of mind issues contributing to personal decisionmaking

Q: Which of the following are top of mind in your everyday thoughts as you make decisions for YOURSELF/YOUR FAMILY? Question Type: Multi-select Base (Total Respondents): 1075

When making an important purchase«overall quality, good design and functionality outweighed sustainability

Q: Thinking about this purchase, how influential were these product attributes in your decision-making process? Question Type: Single-select, 3-point scale (Highly Influential, Somewhat Influential, Not a Factor) Base (Total Respondents): 1075

Sustainability is a more influential product attribute in categories with substantial product offerings

Q: Thinking about this purchase, how influential were these product attributes in your decision-making process? Question Type: Single-select, 3-point scale (Highly Influential, Somewhat Influential, Not a Factor) Base (Total Respondents): 1075

How much do you agree with each of these statements about purchasing everyday items for your household?
Health, Sustainability & Environment
Consumer Statements: Top 2 Box Agreement (4, 5)

Total 89% 89% 76%

I care about sustainable production of food and grocery items Responsible and recyclable packaging is important to me I prefer to buy organic products when I can

³5´ means ³Agree Completely´ and ³1´ means ³Disagree Completely.´

How much do you agree with each of these statements about purchasing everyday items for your household?

Health, Sustainability & Environment
Consumer Statements: Top 2 Box Agreement (4, 5)

18-34 92% 96% 71%

35-49 87% 88% 77%

50+ 85% 88% 75%

I care about sustainable production of household items Responsible and recyclable packaging is important to me I prefer to buy organic products when I can

³5´ means ³Agree Completely´ and ³1´ means ³Disagree Completely.´

How influential were these aspects in your decisionmaking process?
18-34 Influential Personal taste Organic Brand Price Environmental responsibility Value for the money Past experience Overall quality Healthfulness 71% 77% 74% 74% 81% 95% 97% 100% 100% 54% 72% 82% 80% 77% 93% 95% 99% 99% 35-49 50+ 49% 56% 86% 72% 79% 94% 95% 100% 100%

How influential were these aspects in your decision-making process? Question Type: Single-select, 3-point scale (Highly Influential, Somewhat Influential, Not a Factor)

Is Luxury Dead?

When evaluating brands for purchase, Luxury ranks extremely low.

Q: How influential were these aspects of the product¶s brand in your decision-making process? Question Type: Single-select, 3-point scale (Highly Influential, Somewhat Influential, Not a Factor) Base (Selected BRAND as "Highly Important" or "Important"): 833

New Affluents value qualities associated with Prestige Brands

Aesthetics Innovation Integrity Originality Authenticity

lux·u·ry \l k-sh( -)r , : something adding to pleasure or comfort but not absolutely necessary pres·tige \pre-st zh : standing or estimation in the eyes of people : weight or credit in general opinion
Source: Merriam-Webster Online 2010

How much do you agree with each of these statements about purchasing everyday items for your household?

Design
Consumer Statements: Top 2 Box Agreement (4, 5)

Total 71% 69%

I look for well-designed packaging and labeling Design is relevant to me, even for everyday items

³5´ means ³Agree Completely´ and ³1´ means ³Disagree Completely.´

How much do you agree with each of these statements about purchasing everyday items for your household?

Quality, Authenticity & Reputation
Consumer Statements: Top 2 Box Agreement (4, 5)

Total 97% 87% 78%

I expect the products I buy to deliver on their promises I need to trust the companies that provide me with goods + services Buying the highest-quality household goods is worth it

³5´ means ³Agree Completely´ and ³1´ means ³Disagree Completely.´

The Brand Value Scorecard
Detailed category- and brand-specific research conducted among New Affluents
2010 Category Studies:
‡Automotive (October) ‡Kitchen & Bath (November) ‡Home Furnishings (November) ‡Sustainability ± How green is your brand? (December)

These reports answers questions about your brand and competitors: 
How is your brand perceived by New Affluents and why? 

What kind of relationship do New Affluents expect to have with brands in your category and why?  How to create a powerful brand experience with New Affluents?  How to create brand loyalty and brand advocacy among New Affluents?  How do New Affluents engage with your brand and your competitors online and build connections using social media and mobile apps?

For more info: Contact strategy@dwell.com

Does your brand measure up?

Takeaway:

The Whole Brand Experience
Define the complete brand experience that reflects your brand¶s
values. Imbue your products with these values, and reiterate them every time you touch the customer²product, packaging,messaging, delivery, support.

Understand the ways to connect effectively with this consumer²
mobile communications, social networking, affiliating with brands that the New Affluents admire.

Design an ongoing positive relationship² great quality, reliability,
and innovation. If every aspect of the brand is imbued with these values, you¶ll attract the New Affluents and maintain a long relationship with them.

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