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New York, NY--In a new survey of affluent consumers conducted by the Luxury Institute, certain attitude shifts observed during the recession have remained as permanent behavioral changes. Namely, survey respondents said superior craftsmanship, materials, and customer service define the luxury market and drive premium pricing, while status is relatively unimportant in driving luxury purchases.

86% of affluent Americans surveyed say that superior craftsmanship is the deciding quality in a luxury product. Nearly as many (84%) say they also expect the use of superior materials, while the third most important consideration, cited by 76% of wealthy respondents, is a "superior customer experience both during and after the sale." 



Recent years have seen a significant drop in the value of status, formerly a key driver of luxury prior to the recession. A majority of wealthy consumers in the Luxury Institute’s survey report enjoying their luxury purchases discreetly, versus proudly showing their purchases to others. In addition, more than 90% indicate that acquiring a long-lasting, high quality product is more important than enhancing their status. 


"High standards for the tangible quality of goods are to be expected from such refined buyers," said Luxury Institute CEO Milton Pedraza.

The survey, conducted in cooperation with the newly re-launched Lincoln Motor Company, asked more than 1,200 wealthy consumers to share any opinions that may have altered since the recession about buying considerations and luxury spending across a variety of product categories, not just automotive. The survey was balanced between male and female, all respondents earn a minimum of $150,000 annually, and all own at least one luxury automobile.

“During the recession, the U.S. luxury market changed and people changed,” said Jim Farley, executive vice president of Ford Motor Company Global Marketing, Sales and Service, and Lincoln. “They want what appeals most to their desires and not what they believe will impress others. This is a trend we believe will continue to grow ever stronger.” Farley also noted that in the automotive sector, the expectation of great service is still being underserved, something he says the new Lincoln brand plans to address.

Other survey results highlighted the fact that half of high-income shoppers rely on user reviews and the recommendations of family and close friends, enabling quick sharing of opinions and influence. These top-two influencers of luxury consumers’ purchase decisions demonstrate how relative newcomers can quickly establish brands that compete with established stalwarts, and how traditional brands can reinvigorate themselves via digital media. 


Added Pedraza, “What we hear consistently and loudly from wealthy consumers is that the manner in which the goods are sold, as well as the service provided after the sale, are nearly as important as the products themselves.”