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Table of Contents BackCover Why People Buy Things They Don't Need--Understanding and Predicting Consumer Behavior Introduction WHY PEOPLE BUY: A KEY THAT UNLOCKS MARKETING SUCCESS " WHY PEOPLE BUY " EVEN MORE IMPORTANT NOW THAN EVER BEFORE Chapter 1: Why do People Buy Things They Don't Need? WHAT DO CONTEMPORARY AMERICANS NEED? ONCE A CONSUMER NATION, ALWAYS A CONSUMER NATION CONSUMERS SHIFT AWAY FROM NECESSITY-DRIVEN SPENDING TODAY, OVER 40 PERCENT OF CONSUMER SPENDING IS DISCRETIONARY UNDERSTANDING THE DISCRETIONARY SPENDING EQUATION OR WHAT YOU WILL LEARN FROM READING THIS BOOK Chapter 2: What We Need: More Than You Ever Imagined WHAT AMERICANS NEED TO LIVE MAJOR APPLIANCES ARE NECESSITIES OF CONTEMPORARY AMERICAN LIFE FASHION--TAKE THE ORDINARY AND MAKE IT EXTRAORDINARY AVOID MEDIOCRITY IN NEW PRODUCTS--IGNORE THE COMPETITION, GET CLOSE TO THE CUSTOMER IF YOU SELL TO WOMEN, THEN SELL TO WOMEN Chapter 3: If Consumer Spending is the Engine of the Economy, Then Discretionary Spending is the " GAS " CONSUMERS UNDER STRESS DISCRETIONARY PRODUCT MATRIX DESCRIBES WHAT PEOPLE BUY THAT THEY DON'T NEED VALUES GOVERN CONSUMER SPENDING UTILITARIAN PURCHASES ARE DISTINGUISHED BY USEFULNESS INDULGENCES ARE LIFE'S LITTLE LUXURIES BOUGHT WITHOUT GUILT CONSUMER MOTIVATION STUDY WITH INDULGENCES, MORE IS BETTER! LIFESTYLE AND ASPIRATIONAL LUXURIES LET YOU LIVE THE LIFE OF THE RICH AND FAMOUS Chapter 4: The 14 Justifiers that Give Consumers Permission to Buy UNDERLYING MOTIVATORS JUSTIFIER #1: QUALITY OF LIFE JUSTIFIER #2: PLEASURE JUSTIFIER #3: BEAUTIFY THE HOME JUSTIFIER #4: EDUCATION JUSTIFIER #5: RELAXATION JUSTIFIER #6: ENTERTAINMENT JUSTIFIER #7: PLANNED PURCHASE JUSTIFIER #8: EMOTIONAL SATISFACTION JUSTIFIER #9: REPLACING AN EXISTING ITEM JUSTIFIER #10: STRESS RELIEF JUSTIFIER #11: HOBBIES JUSTIFIER #12: GIFT FOR SELF JUSTIFIER #13: IMPULSE PURCHASE JUSTIFIER #14: STATUS ACTION PLAN: PUTTING JUSTIFIERS TO WORK Chapter 5: What Things People Buy that They Don't Need AFTER RISING IN 2001, CONSUMER PURCHASES RETREATED A NOTCH IN 2003 SHOPPING: SO MANY STORES, SO LITTLE TIME END OF COCOONING: NEW AGE OF CONNECTING WHAT IS TO COME Chapter 6: What People Buy: Personal Luxuries REALITY TV RESCUES FASHION FLUBS WITH TLC'S WHAT NOT TO WEAR OVERVIEW: PERSONAL LUXURIES PURCHASE INCIDENCE WHAT PEOPLE BUY: FASHION ACCESSORIES, SUCH AS HANDBAGS, WALLETS, BELTS, SHOES, ETC. WHAT PEOPLE BUY: INFANT AND CHILDREN'S CLOTHING AND APPAREL WHAT PEOPLE BUY: JEWELRY AND WATCHES WHAT PEOPLE BUY: MEN'S CLOTHING AND APPAREL WHAT PEOPLE BUY: PERSONAL-CARE PRODUCTS THAT ARE MORE " SPECIAL " OR " EXCLUSIVE " THAN EVERYDAY BRANDS WHAT PEOPLE BUY: TEEN AND TWEEN CLOTHING AND APPAREL WHAT PEOPLE BUY: WOMEN'S CLOTHING AND APPAREL Chapter 7: What People Buy: Entertainment, Recreation, and Hobbies NEW LEISURE ERA PREDICTED ENTERTAINMENT SPENDING REFLECTS DRIVE FOR SELF- ACTUALIZATION OVERVIEW: ENTERTAINMENT, RECREATION, AND HOBBIES PRODUCT PURCHASE INCIDENCE WHAT PEOPLE BUY: AUDIO EQUIPMENT AND STEREO SYSTEMS WHAT PEOPLE BUY: BOOKS, MAGAZINES, AND NEWSLETTERS WHAT PEOPLE BUY: COMPUTERS AND SOFTWARE FOR HOME USE WHAT PEOPLE BUY: CRAFTS, SEWING, KNITTING, OR NEEDLEWORK SUPPLIES WHAT PEOPLE BUY: MUSICAL INSTRUMENTS WHAT PEOPLE BUY: PET ACCESSORIES WHAT PEOPLE BUY: PHOTOGRAPHY EQUIPMENT AND SUPPLIES WHAT PEOPLE BUY: PRERECORDED VIDEOS, MUSIC, DVDS, ETC. WHAT PEOPLE BUY: SPORTING GOODS AND EXERCISE EQUIPMENT WHAT PEOPLE BUY: TOYS, DOLLS, AND GAMES WHAT PEOPLE BUY: TELEVISIONS, RADIOS, VCRS, DVD PLAYERS, ETC. Chapter 8: What People Buy: Home Furnishings and Home Decor END OF COCOONING DOESN'T MEAN END OF SPENDING ON THE HOME OVERVIEW: HOME FURNISHING AND HOME DÉCOR PURCHASE INCIDENCE WHAT PEOPLE BUY: AROMATHERAPY AND SCENTED HOUSEHOLD PRODUCTS WHAT PEOPLE BUY: ART, PRINTS, LITHOGRAPHS WHAT PEOPLE BUY: BASKETS, BOXES, VASES, POTS, AND DECORATIVE HOLDERS WHAT PEOPLE BUY: CANDLES AND CANDLE ACCESSORIES WHAT PEOPLE BUY: CHRISTMAS AND OTHER SEASONAL DECORATIONS WHAT PEOPLE BUY: COLLECTIBLES WHAT PEOPLE BUY: FIGURINES AND SCULPTURES WHAT PEOPLE BUY: FLORALS AND GREENERY FOR INDOOR USE WHAT PEOPLE BUY: FLOWERS, SEEDS, SHRUBS, AND TREES FOR OUTDOOR LANDSCAPING WHAT PEOPLE BUY: FURNITURE AND OCCASIONAL FURNITURE WHAT PEOPLE BUY: GARDEN EQUIPMENT AND DECORATIVE ITEMS FOR THE GARDEN AND PATIO WHAT PEOPLE BUY: GREETING CARDS AND PERSONAL STATIONERY WHAT PEOPLE BUY: HOME TEXTILES WHAT PEOPLE BUY: KITCHENWARE AND ACCESSORIES WHAT PEOPLE BUY: LAMPS AND LIGHTING ACCESSORIES WHAT PEOPLE BUY: PICTURE FRAMES WHAT PEOPLE BUY: TABLETOP CHINA, CRYSTAL, SILVER, STERLING FLATWARE, AND OTHER DINNERWARE WHAT PEOPLE BUY: WALL DÉCOR WHAT PEOPLE BUY: WINDOW COVERINGS Chapter 9: Trends that Impact Why People Buy Things They Don't Need FUTURE TRENDS CONSUMER TRENDS WHAT CAN RETAILERS DO TO SURVIVE THE COMING SHAKEOUT? Chapter 10: Pulling it all Together:How to Sell More TOUCH THE EMOTIONS OF YOUR CUSTOMERS GIVE CUSTOMERS RATIONAL JUSTIFIERS SO THEY WILL HAVE PERMISSION TO BUY APPEAL TO CUSTOMERS WHO ARE IN MOTION MAKE CUSTOMERS FEEL LIKE WINNERS EVERY TIME HELP YOUR CUSTOMERS FULFILL THEIR FANTASIES ENTERTAIN, ENTERTAIN, ENTERTAIN TRANSLATE THE BRAND INTO THE " WHY " GAIN BIG VISION BY FOCUSING ON WHY PEOPLE BUY Bibliography Index Index_B Index_C Index_D Index_E Index_F Index_G Index_H Index_I Index_J Index_K Index_L Index_M Index_N Index_O Index_P Index_Q Index_R Index_S Index_T Index_U Index_V Index_W Index_Y-Z List of Figures List of Getting It Right Why People Buy Things They Don't Need: Understanding and Predicting Consumer Behavior by Pamela N. Danziger ISBN:0793186021 Dearborn Financial Publishing © 2004 (291 pages) Understanding why people buy what they do is the key to successful marketing today. Marketing expert Pam Danziger provides you with a vision of the future, giving you the foresight to anticipate the needs and desires of customers. Table of Contents Why People Buy Things They Don't Need—Understanding and Predicting Consumer Behavior Introduction Chapter 1 - Why do People Buy Things They Don't Need? Chapter 2 - What We Need: More Than You Ever Imagined Chapter 3 - If Consumer Spending is the Engine of the Economy, Then Discretionary Spending is the "GAS" Chapter 4 - The 14 Justifiers that Give Consumers Permission to Buy Chapter 5 - What Things People Buy that They Don't Need Chapter 6 - What People Buy: Personal Luxuries Chapter 7 - What People Buy: Entertainment, Recreation, and Hobbies Chapter 8 - What People Buy: Home Furnishings and Home Décor Chapter 9 - Trends that Impact Why People Buy Things They Don't Need Chapter 10 - Pulling it all Together: How to Sell More Bibliography Index List of Figures List of Getting It Right Back Cover Within the past decade, the way consumers shop has undergone dramatic change; more options are now available, including the ease of shopping from home via the Internet. Beyond that, a dramatic shift has occurred—thanks in part to the drop in cost in buying essentials, discretionary purchases have taken the lead. Today, emotional spending is an integral part of any purchase consumers make. Spending is now based on wants, not needs. Another critical change? Consumers are in the driver’s seat and control the marketplace. According to author and marketing expert Pamela N. Danziger, understanding why people buy what they don’t need is the eky to successful marketing today. Once marketers learn how the “why” drives and directs consumer behavior, they can learn how to get people to buy more things they don’t need. In Danziger’s book, Why People Buy Things They Don’t Need, she covers critical points, including: Insight and understanding into why consumers behave the way they do Real examples of companies “Getting It Right: that have managed to successfully target and sell consumers “what they don’t need” How to use the emotional aspect of buying often overlooked by marketers 14 different justifiers that give consumers permission to buy Examples of 30 different categories of things people buy, from product highlights to consumer characteristics, as well as how those purchases are made About the Author A nationally recognized expert in consumer marketing, psychology, and research, Pamela N. Danziger is president of Unity Marketing, a marketing consulting firm that serves consumer-product businesses. Understanding the “whys” that underline consumer behavior, she has been quoted and interviewed by numerous top business publications, as well as network news shows, and her client list includes many Fortune 500 companies. Her consulting work is designed to help companies capture more market share and build brad equity by deepening their understanding of their customers. Prior to founding Unity Marketing, Pam worked for Franklin Mint, where she was director of competitive analysis, and also worked for Bell Communications Research and a major Washington trade association. Why People Buy Things They Don't Need—Understanding and Predicting Consumer Behavior PAMELA N. DANZIGER This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Vice President and Publisher: Cynthia A. Zigmund Acquisitions Editor: Michael Cunningham Senior Project Editor: Trey Thoelcke Interior Design: Lucy Jenkins Cover Design: Design Solutions Typesetting: the dotted i Copyright © 2004 by Pamela Danziger Published by Dearborn Trade Publishing A Kaplan Professional Company All rights reserved. The text of this publication, or any part thereof, may not be reproduced in any manner whatsoever without written permission from the publisher. Printed in the United States of America 04 05 06 10 9 8 7 6 5 4 3 2 1 Library of Congress Cataloging-in-Publication Data Danziger, Pamela N. Why people buy things they don't need : understanding and predicting consumer behavior / Pamela N. Danziger. p. cm. Includes bibliographical references and index. . intelligence" slide, while relying too heavily upon factual point-of-purchase, real-time, computer-generated and supplied data. They want to see the future, yet. OF CONTEMPORARY AMERICAN LIFE FASHION--TAKE THE ORDINARY AND MAKE IT EXTRAORDINARY AVOID MEDIOCRITY IN NEW PRODUCTS--IGNORE THE COMPETITION, GET CLOSE TO