Thursday, February 12, 2009

Interesting learning regarding consumers in this economy

Our company conducted focus groups for a luxury manufacturer recently. We wanted to understand the effect that the economy has played in their customers' buying habits.

These were consumers that were used to spending hundreds of thousands of dollars on a product. We wondered, would they now buy a smaller product, a more cost efficient product?

The answer surprised me.
They all told us that the next time they bought that product, they wanted a bigger one, a more powerful one. No compromises.
A lesson for all of us. Yes the new economy stinks. Yes, there are people out of work. BUT, that has no bearing on the buying habits or expectations of the people we talked to. They want a great product. They expect tremendous service. And of course, they now expect a real good price.

This is not the time to compromise. The people that are buying (even though there are less of them) still expect a great product. Don't underestimate them.


  1. Great thought.

    Related thought... it seems in vogue to be "green" and "responsible", but there are still lots of luxury items out there... they just may not be as flaunted in some circles. In fact, on executive restricted usage of the corporate jet, even where it was economical, b/c of the fear of backlash from negative press...

  2. Thanks Craig. Regarding the whole corporate jet issue, I think it's a shame what's gone on.

    The corporate jet has a place in the business world and serves a needed purpose.

    The Big Three did a huge disservice to the aviation industry. The congressmen should have asked the Big Three CEOs if they owned Rolexes or custom tailored Italian suits or yachts.

    The aviation industry has enough of a hole to dig out of without having to deal with an undeserved negative stigma to corporate jets.