Michela O’Connor AbramsPresident, Dwell Media

Brand Experience

Dwell Community

2,250 affluent panel members

Household incomes of $100,000+

AndAgreement 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.

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

The New Face of Affluence Panel

A range of cohesive topics explored

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.

The New Face of Affluence Studies

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

Age Breakdown

18%

28%

54%

I rely on my own personal taste rather than trendsI like to offer advice to others People often ask my advice when making important purchase decisions

I consider myself and opinion leader

95%

91%

90%

85%

79%

23%

Influential and independent

94%

74%

71%

66%

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.

58% devote time to helping take care of others, whether that means their parents or people in their community

16% say “It’s easy for me to prioritize and find balance in my life.”

These core concerns are “top 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

“Technology 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

23% My decisions are influencedby the opinion of others

95%

91%

90%

85%

79%

77% I care how and where products I buy are made

29%

23%

Meaningful Materialism

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

91% Over-consumption isproblematic in our society

90% I consider myself adiscerning consumer

85% I would prefer to have fewer, higher-quality items in my life

79% I seek out products that are authentic and meaningful

29% The products I buyreflect my social status

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 consumers—a 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 connectionWhen 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

94% I readily recommend this brand to others

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

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

69% I’m passionate about this brand

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

“I 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.”

“If 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.”

“Authenticity comes with an ‘ahhhh.’ It takes me by surprise and has functionality and innovation. Then I say, ‘Of course!’”

“I like their design, their lack of complication and am proud to associate my 'brand' with theirs.”

In describing a preferred brand…

Does Sustainability

Matter?

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

Top of mind issues contributing to personal decision-making

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

Health, Sustainability & Environment Total

I care about sustainable production of food and grocery items 89%

Responsible and recyclable packaging is important to me 89%

I prefer to buy organic products when I can 76%

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

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

“5” means “Agree Completely” and “1” means “Disagree Completely.”

Health, Sustainability & Environment

18-34 35-49 50+

I care about sustainable production of household items

92% 87% 85%

Responsible and recyclable packaging is important to me

96% 88% 88%

I prefer to buy organic products when I can

71% 77% 75%

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

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

“5” means “Agree Completely” and “1” means “Disagree Completely.”

Influential 18-34 35-49 50+

Personal taste 71% 54% 49%Organic 77% 72% 56%Brand 74% 82% 86%Price 74% 80% 72%Environmental responsibility 81% 77% 79%Value for the money 95% 93% 94%Past experience 97% 95% 95%Overall quality 100% 99% 100%Healthfulness 100% 99% 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)

How influential were these aspects in your decision-making process?

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 \lək-sh(ə-)rē, : something adding to pleasure or comfort but not absolutely necessary

pres·tige \pre-stēzh: standing or estimation in the eyes of people : weight or credit in general opinion

Source: Merriam-Webster Online 2010

DesignTotal

I look for well-designed packaging and labeling

71%

Design is relevant to me, even for everyday items

69%

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

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

“5” means “Agree Completely” and “1” means “Disagree Completely.”

Quality, Authenticity & Reputation

Total

I expect the products I buy to deliver on their promises

97%

I need to trust the companies that provide me with goods + services

87%

Buying the highest-quality household goods is worth it

78%

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

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

“5” means “Agree Completely” and “1” means “Disagree 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?

Does your brand measure up?

For more info: Contact strategy@dwell.com

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 customer—product, packaging,messaging, delivery, support.

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

Design an ongoing positive relationship— 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.