Luxury Purchasing Process Drivers

The Knowledge of Luxury, The Luxury of Knowledge

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Luxury Institute, LLC. Copyright © 2008 The Luxury Institute, LLC. www.luxuryinstitute.com

Luxury Institute WealthSurvey

Luxury Purchasing Process Drivers

http://www.luxuryinstitute.com/





2

Table of Contents

Topic Slide #

Research Notes and Methodology 3

Key Findings 7

Summary Charts:

• Information Searching 11

• Use and Trust of Luxury Ratings Sites 24

• Purchasing Decisions 30

Appendix: Demographics of Information Searching 40

Appendix: Respondent Profile 49

Contact Information 56






3

Research Notes

The Luxury Institute has conducted research pertaining to the purchasing

process used by wealthy consumers with a minimum annual income of

$150,000.

These results are intended to provide important insights that can guide

decision making in and best practices implementation for companies and

brands that cater to wealthy consumers.

Please be advised that your use of a Luxury Institute or Luxury Board

document constitutes your agreement to (i) use the content under a limited

license only for your own internal individual purposes, and (ii) not disclose,

publish or otherwise make public or provide the content, in whole or in part,

to any third person or entity without the prior written consent of The Luxury

Institute, LLC. The content is and remains at all times the

exclusive intellectual property of The Luxury Institute, LLC.

Copyright © 2008 The Luxury Institute, LLC.






4

Research Methodology: Sampling

A national sample of 800 wealthy consumers were recently surveyed in-

depth online about their opinions. This survey was conducted in the first half

of 2008.

Respondents were recruited and screened to only include those age 21 or

older with a minimum gross annual income of $150,000. No minimum was

set for net worth, but the data was captured.

According to the latest Federal

Reserve Board Survey of

Consumer Finances (SCF), this

criteria represents the top 8.5

million (7.6%) of U.S. households.

The survey data have been

weighted with respect to age and

income to match the SCF profile

of these households.

All respondents agree to a

statement of confidentiality and

non-disclosure of information

presented in the survey.

Sample ProfileSCF

Benchmark

Survey Data

(unweighted)

Survey Data

(weighted)

Gender ratio (M:F) n/a 60%:40% 62%:38%

Age 21 to 44

Age 45 to 54

Age 55 to 64

Age 65 or older

Median age

27%

34%

26%

13%

51 years

30%

34%

28%

8%

51 years

27%

34%

26%

13%

51 years

$150k-$199k

$200k-$299k

$300k-$499k

$500k or more

Mean income

Median income

46%

27%

15%

12%

$352k

$205k

52%

30%

10%

8%

$287k

$197k

46%

27%

15%

12%

$331k

$215k

Mean net worth

Median net worth

$3.1 mil.

$1.2 mil.

$2.9 mil.

$1.3 mil.

$3.5 mil.

$1.6 mil.






5

Research Methodology: Questionnaire

Wealthy consumers are asked the following series of questions:

1. How do you go about learning, purchasing and researching various luxury goods and/or services?

2. Which one do you rely most heavily on for the best luxury advice and expertise?

3. When learning about, purchasing or researching luxury fashion apparel brands, which one source do you rely most heavily on for the best advice and expertise?

4. When learning about, purchasing or researching luxury handbags, which one source do you rely most heavily on for the best advice and expertise?

5. When learning about, purchasing or researching luxury jewelry or watch brands, which one source do you rely most heavily on for the best advice and expertise?

6. When learning about, sourcing or researching wealth advisors, which one source do you rely most heavily on for the best advice and expertise?

7. When learning about, purchasing or researching luxury automobiles, which one source do you rely most heavily on for the best advice and expertise?

8. When learning about, purchasing or researching luxury vacations or travel (hotels, resorts, airlines, etc.), which one source do you rely most heavily on for the best advice and expertise?

9. When learning about, purchasing or researching luxury real estate, which one source do you rely most heavily on for the best advice and expertise?

10. What are the favorite websites you go to first when learning about, purchasing or researching luxury goods or services?






6

Research Methodology: Questionnaire

11. Do you go on ratings sites and read luxury product reviews, referrals and

recommendations?

12. If yes:

Do you write ratings, reviews and referrals on web sites?

13. What are the top three rating, reviews and referrals sites where you either read or write

luxury ratings, reviews and referrals?

14. How much do you trust the information you find on these ratings, reviews and referrals

sites on a scale of 0-10?

15. Of the following sources of luxury information and advice, which one do you trust the most

for making your purchasing decisions?

16. Which luxury products or services do you feel comfortable purchasing only in person at a

store, office, retail location or showroom?

17. What is the maximum dollar amount you would feel comfortable spending on a luxury

good or service online versus in person at a store or office?

18. Which products or services have limits to buying them without seeing them in person, or

trying them on or going to a store?

19. Before purchasing a luxury good or service from a luxury website, do you read the terms

of service, privacy policy and return policy?








Key Research Findings






8

Key Findings: Information Searching

Almost two-thirds of wealthy consumers go directly to known providers’

websites to learn, purchase, and research luxury products.

For purchasing of luxury products in general, wealthy consumers rely on

information from company websites as much as referrals from family and

friends for the best luxury advice and expertise.

Information on luxury fashion and handbags is frequently attained from referrals

from family and friends and from company websites.

Advice and expertise from professionals in the field is sought by wealthy

consumers for purchases of jewelry and watches, real estate, and vacations, as

well as for sourcing a wealth advisor.

To find information about luxury automobiles, wealthy consumers are most

likely to visit a ratings and review site.

Women are more likely than men to rely on the advice and expertise of friends

and family. Men are more likely to use a search engine.

The use of professional help increases with increasing income and net worth.

Google is the site mentioned most as a favorite “first stop” when looking for

information on luxury goods and services.






9

Key Findings: Use & Trust of Ratings Sites

One in three wealthy consumers visit luxury ratings sites and read luxury

product reviews, referrals, and recommendations.

Of these, 22% write ratings, reviews or referrals.

Among wealthy visitors to luxury ratings sites those with a net worth of $5

million or greater are more likely than those with a net worth of $1 million to less

than $5 million to read product reviews, referrals, and recommendations.

Among wealthy consumers who visit luxury ratings sites, those earning $300k

or more are twice as likely to be writing product reviews, referrals, and

recommendations than those earning less than $300k.

Google and Consumer Reports are the top two luxury ratings sites visited by

wealthy consumers.

Wealthy consumers earning $300k or more or with a net worth of $5 million or

greater are more likely to trust the information on luxury ratings sites.






10

Key Findings: Purchasing Decisions

One quarter of wealthy consumers trust referrals from their friends and family

the most for their purchasing decisions.

• Wealthy consumers earning $200k or greater or with a net worth of at least $5 million are

more likely to trust professionals’ advice for purchasing decisions.

A majority of wealthy consumers are only comfortable purchasing automobiles,

jewelry and watches, and real estate in person.

• Except for luxury travel, wealthy consumers aged 55 or greater are more likely than

younger consumers to be only comfortable purchasing these luxury products in person.

A majority of wealthy consumers report being comfortable making purchases of

$500 or more online. Median online purchase = $1,035 (Mean = $3,294)

• Comfort with higher spending online increases among men, those aged under 45, and

with increasing income and net worth.

Jewelry and cars are the two luxury product categories most cited as being too

difficult to purchase online because they can’t be seen in person.

Four out of five wealthy consumers do read the terms of service, privacy policy,

and return policy when shopping online at luxury websites.

• Men and younger consumers are less likely to read the fine print when purchasing a

luxury good or service from a luxury website.








Information Searching






12

Purchasing Information Sources

Sources of Information

64%

57%

53%

48%

38%

37%

36%

7%

7%

Go directly to the website of known providers

Referrals from friends and family

Use a search engine

Read publications

Visit a ratings and reviews site

Referrals from colleagues

Consult a professional in that field, (i.e. travel agent, stylist,

wealth advisor)

Blogs

Other

Q: How do you go about learning, purchasing and researching various luxury goods and/or services? (n=800 wealthy consumers.)

Almost two-thirds of wealthy consumers go directly to known providers’

websites to learn about, research and purchase luxury products.






13

Purchasing Information Sources

Shading indicates statistically significant differences between demographic groups at 90% confidence level.

Source

Gender Age Household Income Net Worth

Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+

Go directly to the website of known

providers64% 61% 69% 66% 62% 64% 67% 65% 59% 65% 65% 59%

Referrals from friends and family 57% 50% 69% 60% 59% 53% 58% 55% 57% 60% 55% 54%

Use a search engine 53% 52% 56% 54% 48% 57% 58% 55% 44% 54% 55% 44%

Read publications 48% 47% 50% 43% 46% 53% 49% 53% 41% 46% 50% 45%

Visit a ratings and reviews site 38% 35% 43% 41% 37% 37% 42% 36% 33% 41% 37% 35%

Referrals from colleagues 37% 36% 38% 44% 35% 34% 34% 39% 40% 37% 37% 35%

Consult a professional in that field 36% 35% 39% 38% 35% 37% 30% 35% 48% 31% 37% 48%

Blogs 7% 8% 7% 17% 4% 3% 3% 7% 14% 7% 6% 12%

Other 7% 7% 6% 6% 6% 8% 8% 6% 5% 7% 7% 6%

Q: How do you go about learning, purchasing and researching various luxury goods and/or services? (n=800 wealthy consumers.)

Wealthy women are more likely than men to use company websites and referrals

from friends and family to learn about various luxury products.

Those with net worth of $300k or more are more likely to consult a professional.






14

Best Source of Advice and Expertise

Source Used Most for Advice and Expertise

19%

19%

17%

14%

12%

9%

5%

1%

4%


Go directly to the website of known providers

Use a search engine

Visit a ratings and reviews site


wealth advisor)

Read publications


Blogs

Other

Q: Which one do you rely most heavily on for the best luxury advice and expertise? (n=800 wealthy consumers.)

For purchasing of luxury products in general, wealthy consumers rely on

information from company websites as much as referrals from family and

friends for the best luxury advice and expertise.






15

Best Source of Advice and Expertise: Fashion

Most Used Source for Fashion Advice and Expertise

19%

18%

14%

12%

9%

9%

5%

2%

12%


Going directly to the website of known providers

Reading publications

Using a search engine

Visiting a ratings and reviews site


wealth advisor)


Blogs

Other

Q: When learning about, purchasing or researching luxury fashion apparel brands, which one source do you rely most heavily on for the best advice and expertise?

(n=800 wealthy consumers.)

Information on luxury fashion for an intended purchase is attained from referrals

from family and friends and from company websites.






16

Best Source of Advice and Expertise: Handbags

Most Used Source for Handbag Advice and Expertise

23%

22%

11%

10%

7%

6%

3%

1%

17%







wealth advisor)


Blogs

Other

Q: When learning about, purchasing or researching luxury handbags, which one source do you rely most heavily on for the best advice and expertise?

(n=306 wealthy women consumers.)

Information on luxury handbags for an intended purchase is attained from

referrals from family and friends and from company websites.






17

Best Source of Advice and Expertise: Jewelry

Most Used Source for Jewelry & Watches Advice and Expertise

19%

17%

17%

10%

10%

9%

5%

15%

<1%


wealth advisor)







Blogs

Other

Q: When learning about, purchasing or researching luxury jewelry or watch brands, which one source do you rely most heavily on for the best advice and expertise?


In addition to personal referrals and company websites, wealthy consumers

attain information on luxury jewelry and watches from professionals in the field.






18

Best Source of Advice and Expertise: Wealth Advisors

Most Used Source for Advice and Expertise on Wealth Advisors

24%

21%

15%

7%

7%

6%

5%

15%

<1%


wealth advisor)







Blogs

Other

Q: When learning about, sourcing or researching wealth advisors, which one source do you rely most heavily on for the best advice and expertise?


One quarter of wealthy consumers rely most heavily on professional advice or

referrals for seeking information about or sourcing a wealth advisor.






19

Best Source of Advice and Expertise: Autos

Most Used Source for Automobile Advice and Expertise

23%

21%

16%

10%

9%

7%

4%

1%

10%







wealth advisor)


Blogs

Other

Q: When learning about, purchasing or researching luxury automobiles, which one source do you rely most heavily on for the best advice and expertise?


To find information about luxury automobiles, wealthy consumers are most

likely to visit a ratings and review site and go directly to the company website.






20

Best Source of Advice and Expertise: Vacations

Most Used Source for Vacation Advice and Expertise

20%

18%

15%

14%

12%

9%

4%

7%

<1%

Consult a professional in that field, (i.e. travel agent,

stylist, wealth advisor)







Blogs

Other

Q: When learning about, purchasing or researching luxury vacations or travel (hotels, resorts, airlines, etc.), which one source do you rely most heavily on for the best

advice and expertise? (n=800 wealthy consumers.)

Wealthy consumers consider the most reliable sources for information about

vacations to be professionals in the field and known providers’ websites.






21

Best Source of Advice and Expertise: Real Estate

Most Used Source for Real Estate Advice and Expertise

34%

11%

11%

9%

8%

4%

3%

20%

<1%

Consult a professional in that field, (i.e. travel agent,

stylist, wealth advisor)







Blogs

Other

Q: When learning about, purchasing or researching luxury real estate, which one source do you rely most heavily on for the best advice and expertise?


One third of wealthy consumers rely most heavily on real estate professionals

for information about luxury real estate purchasing.






22

Best Source of Advice and Expertise: Summary

Source Overall Fashion Handbags Jewelry

Wealth

Advisors Autos Vacations

Real

Estate

Go directly to the website of known providers 19% 18% 22% 17% 7% 21% 18% 9%

Referrals from friends and family 19% 19% 23% 17% 21% 9% 12% 11%

Use a search engine 17% 12% 10% 10% 6% 10% 15% 11%

Visit a ratings and reviews site 14% 9% 7% 10% 5% 23% 14% 3%

Consult a professional in that field 12% 9% 6% 19% 24% 7% 20% 34%

Read publications 9% 14% 11% 9% 7% 16% 9% 8%

Referrals from colleagues 5% 5% 3% 5% 15% 4% 4% 4%

Blogs 1% 2% 1% <1% <1% 1% <1% <1%

Other 4% 12% 17% 15% 15% 10% 7% 20%







23

Favorite Websites

Favorite Websites for Information Gathering on Luxury Products

13%

9%

3%

2%

2%

2%

1%

1%

1%

1%

1%

1%

1%

1%

Google

No Favorite/Depends on product

Consumer Reports

Coach

Lexus

Amazon

American Express

eLuxury

Ebay

Rolex

Nordstrom

Neiman Marcus

BMW

Yahoo

Q: What are the websites you go to first when learning about, purchasing or researching luxury goods or services? Open ended responses.

(n=663 wealthy consumers who use a search engine, or go directly to providers’ websites, ratings and reviews sites, or blogs to gather information.)

Google is the site mentioned most as a favorite “first stop” when looking for

information on luxury goods and services.








Use and Trust of Luxury Ratings Sites






25

Top Ratings, Reviews and Referrals Websites

Top Websites for Reading or Writing Luxury Reviews

7%

6%

3%

3%

2%

2%

2%

1%

1%

1%

1%

1%

1%

1%

Google

Consumer Reports

American Express

Tripadvisor

Amazon

Yahoo

Robb Report

epinions

eBay

BMW

Lexus

Edmunds

Conde Nast

Luxury Institute

Q: What are the top three sites where you either read or write luxury ratings, reviews and referrals? Open-ended responses.

(n=259 wealthy consumers who go to luxury ratings sites)

Google and Consumer Reports are the top two luxury ratings sites visited by

wealthy consumers.






26

Mean

6.5

Gender 6.5

6.6

Age 6.7

6.5

6.3

Income 6.2

6.3

7.2

Net Worth 6.4

6.5

6.9

Trust in Information on Ratings, Reviews

and Referrals Sites

How much do you trust the information on these sites?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total

Men

Women

Under 44

45-54

55 & up

$150-$199k

$200-$299k

$300k+

< $1MM

$1MM-$4.9

$5MM+

10=Extremely trustworthy 9 8 7 6 5 4 3 2 1 0=Not at all trustworthy

Q: How much do you trust the information you find on these ratings, review and referral sites on a scale of 0-10? (n=265 wealthy consumers who go to luxury ratings

sites)

Wealthy consumers earning $300k or more or with a net worth of $5 million or

greater are more likely to trust the information on luxury ratings sites.

indicates statistically significant differences between demographic groups at 90% confidence level.








Purchasing Decisions






28

Most Trusted Source for Purchasing Decisions


23%

16%

13%

11%

10%

9%

6%

10%

<1%



wealth advisor)






Blogs

Other

Q: Of the following sources of luxury information and advice, which one do you trust the most for making your purchasing decisions? (n=800 wealthy consumers.)

One quarter of wealthy consumers trust referrals from their friends and family

the most for their purchasing decisions.






29



Most Trusted Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+



Visiting a ratings and reviews site 13% 12% 16% 14% 11% 15% 15% 11% 13% 15% 14% 6%

Reading publications 11% 12% 10% 10% 10% 13% 11% 12% 10% 10% 12% 12%

Going directly to the website of known

providers10% 9% 13% 13% 11% 8% 11% 11% 9% 10% 11% 9%

Using a search engine 9% 11% 7% 8% 13% 7% 9% 8% 12% 11% 8% 12%


Blogs <1% <1% -- -- -- 0% -- 1% -- 1% -- --

Other 10% 11% 9% 9% 11% 10% 10% 10% 10% 11% 9% 14%

Q: Of the following sources of luxury information and advice, which one do you trust the most for making your purchasing decisions? (n=800 wealthy consumers.)

Wealthy consumers earning $200k or greater or with a net worth of at least $5

million are more likely to trust professionals’ advice for purchasing decisions.






30

Luxury Products Purchased In Person

Most Comfortable Purchasing In Person

73%

61%

61%

38%

35%

27%

11%

Automobiles

Jewelry/Watches

Real Estate

Fashion Apparel

Wealth Advisors

Handbags

Travel

Q: Which luxury products or services do you feel comfortable purchasing only in person at a store, office, retail location or showroom? (n=800 wealthy consumers.)

A majority of wealthy consumers are only comfortable purchasing automobiles,

jewelry and watches, and real estate in person.






31

Luxury Products Purchased In Person


Product Type


Total Men Women Under 45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+

Automobiles 73% 73% 74% 70% 71% 77% 74% 73% 71% 74% 71% 79%

Jewelry/Watches 61% 61% 62% 55% 62% 65% 60% 63% 62% 60% 61% 63%

Real Estate 61% 59% 63% 54% 59% 66% 60% 63% 58% 55% 65% 61%

Fashion Apparel 38% 37% 40% 37% 34% 43% 36% 41% 40% 35% 39% 44%

Wealth Advisors 35% 38% 31% 34% 30% 41% 30% 37% 42% 31% 36% 42%

Handbags 27% 22% 35% 29% 21% 29% 25% 26% 31% 22% 25% 43%

Travel 11% 14% 7% 13% 8% 13% 10% 9% 16% 12% 7% 24%

Q: Which luxury products or services do you feel comfortable purchasing only in person at a store, office, retail location or showroom? (n=800 wealthy consumers.)

Except for luxury travel, wealthy consumers aged 55 or greater are more likely

than younger consumers to be only comfortable purchasing these luxury

products in person.






Maximum Amount Would Spend Online

Maximum Amount Comfortable Spending Online

34%

16%18%

11%

8%

14%

Under $500 $500-$999 $1,000-$2,999 $3,000-$4,999 $5,000-$10,000 Over $10,000

Q: What is the maximum dollar amount you would feel comfortable spending on a luxury good or service online versus in person at a store or office?

(n=800 wealthy consumers)

A majority of wealthy consumers report being comfortable

making purchases of $500 or more online.

Median online purchase = $1,035 (Mean = $3,294)






33

Would Spend $3,000 or More Online

Percent Comfortable Spending $3,000 or More Online

32%

37%

24%

46%

29%26%

24%

35%

43%

25%

34%

45%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+


Comfort with higher spending online increases among men, those aged under

45, and with increasing income and net worth.


Q: What is the maximum dollar amount you would feel comfortable spending on a luxury good or service online versus in person at a store or office?

(n=800 wealthy consumers)






34

Luxury Products Too Difficult to Purchase Online

Luxury Products That Have Limits to Buying Them Online

28%

26%

17%

17%

4%

4%

3%

2%

3%

Jewelry

Cars

Clothes

Real Estate

Watches

Shoes

Handbags

Travel

Electronics

Q: Which products or services have limits to buying them without seeing them in person, or trying them on or going to a store? Open-ended responses.


Jewelry and cars are the two luxury product categories most cited as being too

difficult to purchase online because they can’t be seen in person.






35

Percent Reading the Fine Print

Q: Before purchasing a luxury good or service from a luxury website, do you read the terms of service, privacy policy and return policy? (n=800 wealthy consumers)

Do you read the terms of service,

privacy policy, and return policy?

No

22%

Yes

78%

Four out of five wealthy consumers

do read the terms of service,

privacy policy, and return policy

when shopping online at luxury

websites.






36

Percent Reading the Fine Print

Percent Reading the Terms of Service, Privacy Policy, and Return Policy

78%

76%

81%

69%

81%82%

81%

77%

74%

77%

80%

74%

Total Men Women Under 45 45-54 55+ $150k-

$199k

$200k-

$299k

$300k+ <$1MM $1MM-

$4.9MM

$5MM+


Men and younger consumers are less likely to read the fine print when

purchasing a luxury good or service from a luxury website.


Q: Before purchasing a luxury good or service from a luxury website, do you read the terms of service, privacy policy and return policy? (n=800 wealthy consumers)








Appendix: Demographics of Information

Searching






38

Best Source of Advice and Expertise


Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+


Go directly to the website of known

providers19% 19% 19% 16% 23% 16% 21% 16% 18% 20% 19% 15%

Use a search engine 17% 19% 14% 19% 15% 17% 18% 20% 12% 21% 15% 15%

Visit a ratings and reviews site 14% 12% 16% 13% 13% 14% 14% 15% 10% 14% 14% 13%


Read publications 9% 9% 8% 7% 8% 11% 8% 9% 10% 7% 10% 8%


Blogs 1% 1% 1% 4% <1% -- 1% <1% 3% 2% <1% 1%

Other 4% 5% 3% 2% 5% 5% 6% 4% 2% 4% 5% 3%


Women are more likely than men to rely on the advice and expertise of friends

and family. Men are more likely to use a search engine.

The use of professional help increases with increasing income and net worth.






39

Best Source of Advice and Expertise: Fashion


Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+



providers18% 16% 23% 21% 20% 16% 20% 18% 16% 21% 17% 16%




Consulting a professional in that field 9% 9% 9% 12% 6% 9% 6% 9% 12% 7% 8% 16%


Blogs 2% 2% 1% 5% 1% -- 1% 1% 4% 1% 1% 3%

Other 12% 14% 9% 7% 13% 15% 12% 15% 10% 10% 14% 11%

Q: When learning about, purchasing or researching luxury fashion apparel brands, which one source do you rely most heavily on for the best advice and expertise?


Information on luxury fashion for an intended purchase is more likely to be

attained by women from personal referrals and from company websites.






40

Best Source of Advice and Expertise: Handbags


Source

Age Household Income Net Worth

Total Under 45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+

Referrals from friends and family 23% 25% 24% 21% 27% 24% 16% 25% 19% 34%


providers22% 27% 23% 17% 21% 23% 24% 27% 19% 14%

Reading publications 11% 3% 12% 16% 9% 11% 15% 6% 16% 5%

Using a search engine 10% 10% 8% 10% 11% 10% 6% 10% 9% 10%

Visiting a ratings and reviews site 7% 9% 8% 5% 8% 5% 8% 10% 6% 2%

Consulting a professional in that field 6% 5% 4% 8% 4% 4% 10% 4% 4% 19%

Referrals from colleagues 3% 3% 4% 2% 3% 3% 2% 6% 1% --

Blogs 1% 3% 1% -- -- -- 6% -- 1% 9%

Other 17% 15% 14% 21% 17% 19% 12% 11% 23% 7%

Q: When learning about, purchasing or researching luxury handbags, which one source do you rely most heavily on for the best advice and expertise?

(n=306 wealthy women consumers.)

The likelihood of wealthy women relying on referrals from friends and family for

handbag advice and expertise decreases with increasing household income.






41

Best Source of Advice and Expertise: Jewelry


Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+




providers17% 14% 21% 15% 17% 17% 15% 19% 17% 16% 17% 19%





Blogs <1% <1% -- <1% -- -- <1% -- -- <1% -- --

Other 15% 16% 13% 11% 15% 18% 16% 16% 12% 13% 16% 15%

Q: When learning about, purchasing or researching luxury jewelry or watch brands, which one source do you rely most heavily on for the best advice and expertise?


For jewelry and watch purchases, there are no demographic differences among

the wealthy consumers who rely most heavily on professionals in the field.






42

Best Source of Advice and Expertise: Wealth Advisors


Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+





providers7% 7% 7% 10% 7% 5% 7% 9% 5% 8% 6% 6%




Blogs <1% <1% <1% 1% -- -- -- 1% -- <1% -- 1%

Other 15% 16% 14% 9% 17% 18% 17% 13% 14% 13% 15% 19%

Q: When learning about, sourcing or researching wealth advisors, which one source do you rely most heavily on for the best advice and expertise? (n=800 wealthy consumers.)

Wealthy consumers aged 55 or greater are more likely than younger consumers

to rely most heavily on professionals for the best advice and expertise.

Those earning $200k or more are more likely to rely on referrals from colleagues.






43

Best Source of Advice and Expertise: Autos


Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+



providers21% 19% 24% 20% 23% 20% 20% 22% 20% 18% 23% 21%






Blogs 1% 1% 1% 3% <1% 1% <1% 2% 1% 1% 1%

Other 10% 10% 9% 7% 11% 10% 10% 8% 10% 8% 11% 9%

Q: When learning about, purchasing or researching luxury automobiles, which one source do you rely most heavily on for the best advice and expertise?


As income and net worth decreases reliance on ratings and review sites for

automobile information increases.






44

Best Source of Advice and Expertise: Vacations


Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+



providers18% 16% 21% 15% 22% 17% 20% 18% 15% 21% 19% 10%






Blogs <1% 1% <1% 1% 1% <1% <1% <1% 1% <1% 1% --

Other 7% 9% 5% 5% 8% 9% 8% 7% 7% 6% 7% 11%

Q: When learning about, purchasing or researching luxury vacations or travel (hotels, resorts, airlines, etc.), which one source do you rely most heavily on for the best

advice and expertise? (n=800 wealthy consumers.)

Men, those aged 55 or older, earning $300k or more, or with a net worth of $5

million or greater are more likely to consult a professional for vacation advice.






45

Best Source of Advice and Expertise: Real Estate


Source


Total Men Women

Under

45 45-54 55+

$150k-

$199k

$200k-

$299k $300k+ <$1MM

$1MM-

$4.9MM $5MM+





providers9% 8% 12% 12% 10% 8% 10% 9% 9% 11% 8% 9%




Blogs <1% <1% -- 1% -- -- <1% -- 1% 1% -- --

Other 20% 21% 17% 11% 21% 24% 22% 19% 16% 18% 21% 18%

Q: When learning about, purchasing or researching luxury real estate, which one source do you rely most heavily on for the best advice and expertise?


Wealthy women are more likely than men to consult a professional for

information about real estate. Men are more likely than women to search online.








Appendix: Respondent Profile






47

Demographics of Survey Sample

Age Distribution (Median Age: 52)

1%

3%

5%

8%

10%

16%

18%

26%

13%

21-24 25-29 30-34 35-39 40-44 45-49 50-54 55-64 65 or

older

Q: What is your gender.

Q: Please click on the category that includes your age: (n=800 wealthy consumers.)

Gender

Female

38%Male

62%






48


Income Distribution

(Median: $215k) 46%

27%

15%

8%

4%

Under

$200,000

$200,000

and

$299,000

$300,000

and

$499,000

$500,000

and

$999,000

Above

$1,000,000

Q: Which group best describes your gross household income (before taxes) for 2007? (Select one)?.

Q: What is your household’s approximate net worth, (including the full equity in your home)? (n=800 wealthy consumers.)

Net Worth

(Median: $1.6 Mil.)

1%

0%

3%

9%

10%

13%

25%

25%

7%

3%

2%

2%

Under $50,000

$50,000 - $99,999

$100,000 - $249,999

$250,000 - $499,999

$500,000 - $749,999

$750,000 - $999,999

$1 million - $1.9 million

$2 million - $4.9 million

$5 million-$7.4 million

$7.5 million-$9.9 million

$10 million and $29.9 million

Above $30 million






49


Additional Family Members

35%

13%

10%

14%

20%

89%

Children under

age 18 (net)

Children under

age 5

Children age 6-

8

Children age 9-

12

Children age

13-17

Adults age 18+

(besides self)

Q: Which one of the following best describes your marital status?

Q: Including yourself, how many people currently in your household are in each of the following age groups? (n=800 wealthy consumers)

Marital Status

6%

83%

1%

0%

6%

4%

Single, never

married

Married

Widowed

Living with life

partner

Divorced

Separated






50


Employment

62%

5%

13%

1%

2%

13%

1%

4%

Employed full time

Employed part time

Self-employed

Not employed, but looking for

work

Not employed and not looking

for work

Retired

Student

Homemaker

Q: What is your highest level of education?

Q: Which one of the following best describes your employment status? (n=800 wealthy consumers.)

Education

0%

0%

2%

35%

1%

9%

49%

4%

Less than 9th grade

9th to 12th grade, no diploma

High school graduate or

equivalent

Some college, no degree

Associate degree

Bachelor's degree

Graduate or professional

degree

Other, please specify






51


Ethnicity

90%

3%

4%

0%

1%

1%

1%

White/Caucasian

Black/African

American

Asian

Pacific Islander

Native American

Other

Prefer not to

answer

Q: Are you Spanish/Hispanic/Latino?

Q: Which one of the following best describes you? (n=800 wealthy consumers.)

Spanish/Hispanic/Latino?

No

95%

Prefer

not to

answer

1%

Yes

4%






52


Q: In which state do you live? (n=800 wealthy consumers)

State of Residence

1%

1%

13%

2%

2%

1%

5%

3%

1%

1%

6%

1%

1%

1%

1%

3%

4%

1%

AL

AZ

CA

CO

CT

DE

FL

GA

IA

ID

IL

IN

KS

KY

LA

MA

MD

ME

3%

2%

2%

2%

1%

7%

1%

9%

3%

1%

5%

1%

1%

6%

4%

2%

2%

MI

MN

MO

NC

NH

NJ

NV

NY

OH

OR

PA

SC

TN

TX

VA

WA

WI







Luxury Institute, LLC115 East 57th Street, 11th Floor

New York, N.Y. 10022

www.LuxuryInstitute.com

Contact: Martin Swanson, Vice President

914 909 6350 (office)

914 715 3357 (cell)

[email protected]

Contact Information:



mailto:[email protected]

Date post:	28-Nov-2014
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