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by Pam Danziger Articles & Columns |
Desire, not Necessity, Drives $3 Trillion in Consumer Spending 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" Stevens, PA June 4, 2002 - 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 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. "Consumers today spend proportionately 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," says Pam Danziger, president of Unity Marketing and author of new book Why People Buy Things They Don't Need. In this book Danziger delves into the psyche of consumers based upon two years of in-depth research into consumer behavior and motivation in buying discretionary and luxury items. Danziger advises, "If you are a retailer, marketer or manufacturer of things that people buy that they don't NEED, then you need this book. For today's consumers, satisfying their emotional needs and desires is just as compelling as satisfying their physical needs. This is the first book that examines the emotional side of the consuming equation based upon a foundation of solid research." 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, 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:
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