FEATURE/Desire, not Necessity, Drives $3 Trillion in Consumer Spending.
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FEATURE/Desire, not Necessity, Drives $3 Trillion in Consumer Spending.
Business Editors
FEATURE...
Pam Danziger, consultant to industry on consumer drives and
motivations and how they influence consumer behavior, reveals "Why
People Buy Things They Don't Need"
Ever since the government began tracking economic statistics, the U.S. economy has been a consumer economy.
Every year since 1929 until the present, with a few exceptions, consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. has accounted for between 60-to-70% of the total economy. Today out of our $10 trillion economy, some two-thirds or $6.6 trillion is consumer spending. About 40% of that, or $3 trillion, is spending on discretionary products and services.
In an interview today on CNN CNN
or Cable News Network
Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. Financial News Network's Money Morning show, Pam Danziger, president of Unity Marketing and author of the new book Why People Buy Things They Don't Need, says "Consumers today spend proportionately pro·por·tion·ate
adj.
Being in due proportion; proportional.
tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates
To make proportionate. less on basic necessities, such as food, clothing and shelter, than they did twenty-five, thirty-five or even fifty years ago. But they spend more and more money on discretionary purchases that are motivated by emotion and desire."
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In her book Danziger advocates marketers and retailers move beyond the rationally-oriented features and benefits of products and services and instead focus on the emotional satisfactions that drive consumer spending.
"Brands with life and vibrancy that really speak to the consumer, do so on an emotional plane," says the author. "By uncovering the interior emotional life of the consumer you can devise marketing strategies, competitively position products and craft persuasive advertising messages. In essence, the `why people buy' defines the brand."
This comprehensive study of consumers has resulted in identification of 14 different justifiers that explain the underlying motivations driving consumer purchases. "These justifiers, such as pleasure, stress relief, education, to beautify the home or self, entertainment, and so on, are used as rational excuses to give consumers permission to buy. The overriding justifier behind all discretionary spending is to improve the quality of life. Every American wants a better, more satisfying, fulfilling life and they buy things to experience a better quality-of-life," Danziger says.
In addition, spending in 30 categories of discretionary products is analyzed an·a·lyze
tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es
1. To examine methodically by separating into parts and studying their interrelations.
2. Chemistry To make a chemical analysis of.
3. , providing further insight on specific demographic groups who are most likely to be involved in these purchases. The Top 10 Product Categories that people buy that they don't need, ranked by percentage of households that made purchases in each category in 2001:
Top 10 Percent of Buying Households
---------------------------------------- ----------------------------
1. Videotapes, music tapes,
CD's, DVDs, etc. 80%
2. Books, magazines, newsletters 78%
3. Greeting cards and personal
stationery 72%
4. Personal care products (beyond
everyday brands) 71%
5. Candles 65%
6. Home textiles (including rugs,
throws, pillows, table linens,
curtains) 60%
7. Flowers, seeds, shrubs, trees for
outdoor landscaping 59%
8. Kitchenware and accessories 58%
9. Christmas and seasonal decorations 55%
10. Toys, dolls and games 54%
The book is further enhanced with examples of marketing successes from national and international marketers who have tapped into the emotional psyche Psyche (sī`kē), in Greek mythology, personification of the human soul. She was so lovely that Eros (Cupid), the god of love, fell in love with her. of today's consumers, such as Bulgari, Lenox, Yankee Candle, ABC ABC
in full American Broadcasting Co.
Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. Carpet, Jenn-Air, Intimate Brands, Gateway Computer, Hallmark, to name a few.
Actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action.
An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it. suggestions for using the "whys" to increase discretionary spending complete this comprehensive book on consumer spending habits. Danziger takes the marketing buzzword A term that refers to the latest technology or a term that sounds catchy. If not a flash in the pan, new technologies become mainstream. For example, Java was a hot buzzword in the 1990s, but should remain a major topic for decades. of today, `emotional branding,' gives it definition through research, and shows how to apply it to long-term strategies.
"Marketing executives informed by `why people buy' insights are able to anticipate the shifts and turns in their market. They are able to move ahead of their consumers, anticipating their consumers' next move," Danziger says. "Future marketing success is based on marrying the qualitative and quantitative; the intuitive and the rational; the `why' of purchasing with the traditional four P's of marketing."
Why People Buy Things They Don't Need is published by Paramount Market Publishing Inc., specializing in practical books for smart marketers. Available in May 2002 (hardcover, 250 pages, $34.95). To order, call toll free 888-787-8100 or fax 607-275-8101. This book can also be purchased on the firm's website: http://www.paramountbooks.com or through your favorite bookseller.
For more information please contact Pam Danziger, Unity Marketing, 188 Cocalico Creek Cocalico Creek is a 26.6 miles (42.8 km) long tributary of the Conestoga River located in Lebanon and Lancaster Counties in Pennsylvania in the United States. The source is at an elevation of 1320 feet (402 m) near Stricklerstown in Millcreek Township, Lebanon Road, Stevens, PA 17578; telephone (717) 336-1600; fax (717) 336-1601; mail@unitymarketingonline.com, or visit http://www.unitymarketingonline.com or http://www.whypeoplebuy.com
Product Markets Profiled: Aromatherapy aromatherapy
Therapy using essential oils and water-based colloids extracted from plant materials to promote physical, emotional, and spiritual health and balance. Single or combined extracts may be diffused into inhaled air, used in massage oil, or added to bathwater. and Household Scents; Art & Prints; Audio Equipment; Books and Magazines; Candles; Christmas Decorations; Collectibles; Home Computers; Crafts and Supplies; Figurines and Sculpture; Indoor Florals; Flowers, Seeds, Shrubs, etc. for Outdoor Landscaping; Furniture; Garden Equipment and Decorations; Greeting Cards See e-card. and Stationery The term for boilerplate in the Eudora mail client, starting with Version 3.0. Stationery files are stored on disk and brought into new messages or added to replies. See boilerplate. ; Home Textiles, including Bath Towels, Table and Bed Linens, Rugs, Throws, Pillows, Mattress Pads, etc.; Jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion.
The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. and Watches; Kitchenware and Housewares house·wares
pl.n.
Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. , including Cooking, Baking, Plastic Housewares; Lamps and Lighting; Personal Care, more Special than Everyday Brands; Pet Accessories; Photographic Equipment; Picture Frames; Sporting Equipment, including Exercise Equipment; Tabletop Dinnerware, including China, Stemware stem·ware
n.
Glassware mounted on a stem with a broad base. and Glasses, Flatware, etc.; Toys, Dolls and Games; Television, Radios, VCRS and DVDs; Vases, Urns, Pots; Videos and Music, including CDs, DVDs, VCRs, etc.; Wall Decor.
(Note to editors: Review copy of book available upon request. Danziger available for interviews
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Get Low Payments & Save More Apply for Credit Debt Relief
FreedomFinancialNetwork.com
East Bay Coupons
1 ridiculously huge coupon a day. It's like doing Oakland at 90% off!
www.Groupon.com/East-Bay
Online Debt Settlement
Review Your Debt Settlement Options Online. Calculate Your Savings!
FreedomPlus.com
Debt Relief Program
National Debt Relief Program. BBB+ Rating A. Call 888-703-4948
www.NationalRelief.com
Problem with Debt?
Be Debt Free in 24 - 48 Months. Debt Relief is Just a Quote Away.
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Credit Card Debt Help
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Link to this page
FEATURE/Desire, not Necessity, Drives $3 Trillion in Consumer Spending.
Business Editors
FEATURE...
Pam Danziger, consultant to industry on consumer drives and
motivations and how they influence consumer behavior, reveals "Why
People Buy Things They Don't Need"
Ever since the government began tracking economic statistics, the U.S. economy has been a consumer economy.
Every year since 1929 until the present, with a few exceptions, consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. has accounted for between 60-to-70% of the total economy. Today out of our $10 trillion economy, some two-thirds or $6.6 trillion is consumer spending. About 40% of that, or $3 trillion, is spending on discretionary products and services.
In an interview today on CNN CNN
or Cable News Network
Subsidiary company of Turner Broadcasting Systems. It was created by Ted Turner in 1980 to present 24-hour live news broadcasts, using satellites to transmit reports from news bureaus around the world. Financial News Network's Money Morning show, Pam Danziger, president of Unity Marketing and author of the new book Why People Buy Things They Don't Need, says "Consumers today spend proportionately pro·por·tion·ate
adj.
Being in due proportion; proportional.
tr.v. pro·por·tion·at·ed, pro·por·tion·at·ing, pro·por·tion·ates
To make proportionate. less on basic necessities, such as food, clothing and shelter, than they did twenty-five, thirty-five or even fifty years ago. But they spend more and more money on discretionary purchases that are motivated by emotion and desire."
Ads by GoogleU.S. National Debt
Will the national debt push us over the falls? Find out.
www.ourfiscalfuture.org
Debt Management
Compare Debt Management Solutions. Find the One That's Right For You.
www.DebtReliefUSA.org
In her book Danziger advocates marketers and retailers move beyond the rationally-oriented features and benefits of products and services and instead focus on the emotional satisfactions that drive consumer spending.
"Brands with life and vibrancy that really speak to the consumer, do so on an emotional plane," says the author. "By uncovering the interior emotional life of the consumer you can devise marketing strategies, competitively position products and craft persuasive advertising messages. In essence, the `why people buy' defines the brand."
This comprehensive study of consumers has resulted in identification of 14 different justifiers that explain the underlying motivations driving consumer purchases. "These justifiers, such as pleasure, stress relief, education, to beautify the home or self, entertainment, and so on, are used as rational excuses to give consumers permission to buy. The overriding justifier behind all discretionary spending is to improve the quality of life. Every American wants a better, more satisfying, fulfilling life and they buy things to experience a better quality-of-life," Danziger says.
In addition, spending in 30 categories of discretionary products is analyzed an·a·lyze
tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es
1. To examine methodically by separating into parts and studying their interrelations.
2. Chemistry To make a chemical analysis of.
3. , providing further insight on specific demographic groups who are most likely to be involved in these purchases. The Top 10 Product Categories that people buy that they don't need, ranked by percentage of households that made purchases in each category in 2001:
Top 10 Percent of Buying Households
---------------------------------------- ----------------------------
1. Videotapes, music tapes,
CD's, DVDs, etc. 80%
2. Books, magazines, newsletters 78%
3. Greeting cards and personal
stationery 72%
4. Personal care products (beyond
everyday brands) 71%
5. Candles 65%
6. Home textiles (including rugs,
throws, pillows, table linens,
curtains) 60%
7. Flowers, seeds, shrubs, trees for
outdoor landscaping 59%
8. Kitchenware and accessories 58%
9. Christmas and seasonal decorations 55%
10. Toys, dolls and games 54%
The book is further enhanced with examples of marketing successes from national and international marketers who have tapped into the emotional psyche Psyche (sī`kē), in Greek mythology, personification of the human soul. She was so lovely that Eros (Cupid), the god of love, fell in love with her. of today's consumers, such as Bulgari, Lenox, Yankee Candle, ABC ABC
in full American Broadcasting Co.
Major U.S. television network. It began when the expanding national radio network NBC split into the separate Red and Blue networks in 1928. Carpet, Jenn-Air, Intimate Brands, Gateway Computer, Hallmark, to name a few.
Actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action.
An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it. suggestions for using the "whys" to increase discretionary spending complete this comprehensive book on consumer spending habits. Danziger takes the marketing buzzword A term that refers to the latest technology or a term that sounds catchy. If not a flash in the pan, new technologies become mainstream. For example, Java was a hot buzzword in the 1990s, but should remain a major topic for decades. of today, `emotional branding,' gives it definition through research, and shows how to apply it to long-term strategies.
"Marketing executives informed by `why people buy' insights are able to anticipate the shifts and turns in their market. They are able to move ahead of their consumers, anticipating their consumers' next move," Danziger says. "Future marketing success is based on marrying the qualitative and quantitative; the intuitive and the rational; the `why' of purchasing with the traditional four P's of marketing."
Why People Buy Things They Don't Need is published by Paramount Market Publishing Inc., specializing in practical books for smart marketers. Available in May 2002 (hardcover, 250 pages, $34.95). To order, call toll free 888-787-8100 or fax 607-275-8101. This book can also be purchased on the firm's website: http://www.paramountbooks.com or through your favorite bookseller.
For more information please contact Pam Danziger, Unity Marketing, 188 Cocalico Creek Cocalico Creek is a 26.6 miles (42.8 km) long tributary of the Conestoga River located in Lebanon and Lancaster Counties in Pennsylvania in the United States. The source is at an elevation of 1320 feet (402 m) near Stricklerstown in Millcreek Township, Lebanon Road, Stevens, PA 17578; telephone (717) 336-1600; fax (717) 336-1601; mail@unitymarketingonline.com, or visit http://www.unitymarketingonline.com or http://www.whypeoplebuy.com
Product Markets Profiled: Aromatherapy aromatherapy
Therapy using essential oils and water-based colloids extracted from plant materials to promote physical, emotional, and spiritual health and balance. Single or combined extracts may be diffused into inhaled air, used in massage oil, or added to bathwater. and Household Scents; Art & Prints; Audio Equipment; Books and Magazines; Candles; Christmas Decorations; Collectibles; Home Computers; Crafts and Supplies; Figurines and Sculpture; Indoor Florals; Flowers, Seeds, Shrubs, etc. for Outdoor Landscaping; Furniture; Garden Equipment and Decorations; Greeting Cards See e-card. and Stationery The term for boilerplate in the Eudora mail client, starting with Version 3.0. Stationery files are stored on disk and brought into new messages or added to replies. See boilerplate. ; Home Textiles, including Bath Towels, Table and Bed Linens, Rugs, Throws, Pillows, Mattress Pads, etc.; Jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion.
The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring. and Watches; Kitchenware and Housewares house·wares
pl.n.
Cooking utensils, dishes, and other small articles used in a household, especially in the kitchen. , including Cooking, Baking, Plastic Housewares; Lamps and Lighting; Personal Care, more Special than Everyday Brands; Pet Accessories; Photographic Equipment; Picture Frames; Sporting Equipment, including Exercise Equipment; Tabletop Dinnerware, including China, Stemware stem·ware
n.
Glassware mounted on a stem with a broad base. and Glasses, Flatware, etc.; Toys, Dolls and Games; Television, Radios, VCRS and DVDs; Vases, Urns, Pots; Videos and Music, including CDs, DVDs, VCRs, etc.; Wall Decor.
(Note to editors: Review copy of book available upon request. Danziger available for interviews
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