Desire, not necessity, drives spending - Consumerism - Brief Article - Statistical Data Included

Ever since the government began tracking statistics, the U.S. economy has been a consumer one. Every year since 1929 until the present, with a few exceptions, consumer spending has accounted for between 60 and 70% of the total economy. Out of America's 10 trillion-dollar economy, two-thirds, or 6.6 trillion, is consumer spending. About 40% of that, or three trillion, is spending on discretionary products and services. "Consumers today spend proportionately less on basic necessities, such as food, clothing, and shelter, than they did 25, 35, or even 50 years ago. But they spend more and more money on discretionary purchases that are motivated by emotion and desire," explains Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need.

She advocates that marketers and retailers should 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. 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."

Danziger suggests that there are 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. Virtually every American wants a better, more-satisfying, fulfilling life. and they buy things to experience a better quality of life."

She cites 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: videotapes, music tapes, CDs, DVDs. etc. (80%); books, magazines, newsletters (78%); greeting cards and personal stationery (72%): personal care products, beyond everyday brands (71%); candles (65%); home textiles, including throws, rugs, pillows, table linens, curtains (60%); flowers, seeds, shrubs, trees for outdoor landscaping (59%); kitchenware and accessories (58%); Christmas and seasonal decorations (55%): and toys, dolls, and games (54%).

How Americans label themselves according to their motivations
for purchasing items that are considered other than necessities.

Impulsives           18%

Conflicteds          17%

Bargain              15%
Hunters

Self-Expressives     28%

Careful              23%
Indulgers

Note: Table made from pie chart.

COPYRIGHT 2002 Society for the Advancement of Education
COPYRIGHT 2002 Gale Group