The American Express/RoperASW Global Affluent Study is a new series of reports on the habits and values of affluent consumers in eleven countries where more than 11,000 consumers were surveyed. The countries included Australia, Brazil, Canada, France, Germany, Hong Kong, Italy, Japan, Mexico, the UK and the US. American Express and RoperASW expect to release about a dozen Study reports within the next six months.

Global Themes: The Importance of Time and Quality
When asked if they could choose to have either more time or more money, as a whole the total number of affluent respondents was virtually split — forty-six percent chose “time” while 49 percent chose “money.”

The full affluent base was similarly split when asked to identify which two or three factors (out of a list of seven) were most important when buying or making purchase decisions for consumer goods. Seventy-two percent of affluent consumers indicated “quality” while 73 percent chose “price.”

“These findings confirm our experience with consumers around the world,” said Vijay Parekh, president of American Express' international consumer business. “Apparently, money isn't everything. While the affluent want enough money to live well, they place high value on the life experiences that financial security makes possible. These include time and high quality goods and services.”

“People with more money are more focused than average income earners on quality, prestige and value,” said Xiaoyan Zhao, director of the Roper study.

Strong Local Differences
At the individual country level, however, results varied considerably.

On the “more time vs. more money” question:

• Mexico led the countries favoring time over money by a wide margin. Seventy-seven percent of Mexican affluents wanted more time vs. 23 percent more money, a spread of 54 percent. Other countries favoring time — Australia, France, and the UK — showed a maximum spread of 8 percent.

“Mexicans love life and consider time with friends and family to be critically important to their well-being,” says Mario SanMiguel, head of American Express Mexico.

• Hong Kong weighed in in the opposite direction but with a less dramatic spread of 20 percent: 57 percent favored money vs. 37 percent time. Other countries favoring money included Brazil, Germany, Japan and the US.

“While the economic difficulties of recent years in Hong Kong have undoubtedly contributed to these results, the value of high quality work — and money as an indicator and reward for that work — is important in Hong Kong culture,” notes Anthony Lee, head of American Express in Hong Kong.

The fact that consumer confidence has dropped recently in Brazil, Germany, and Japan, Zhao said, “may help explain why the affluent in those three countries also place a priority on money.”

While affluent respondents in all countries said ‘price' and ‘quality' were the two most important considerations when buying products (such as cars, cell phones and clothing), they are nevertheless thoughtful about their money. The interest in ‘getting a good deal' was evident:

• Australia, Hong Kong, Italy, the UK and the US favored price
• Brazil, France, Germany and Japan favored quality
• Canada and Mexico were equally split

Roper's Zhao noted that countries where affluents rank price higher than quality have well developed economies, where “shoppers are used to a great deal of choice or where bargaining is common in the marketplace.”

Some Other Observations
Brazilians Like a Personal Touch — Affluent shoppers in Brazil care more than those in other countries about people-related purchase factors, namely customer service and personal recommendations. “The personal touch is clearly an important part of the upscale shopping experience here,” said Helio Magalhaes, head of American Express in Brazil.

In contrast, Italian affluent shoppers care more about product features than do affluents of other countries, while Italians say customer service and personal recommendations are less important than do affluents in other countries.

US Affluent Are Price-Conscious — After Hong Kong, it is the affluent in the US who most prefer price over quality, with a 10 percent spread (compared with 18 percent in Hong Kong).

Canadians Are Especially Brand-Sensitive, although brand reputation ranks after price and quality as a deciding factor for Canadian affluent shoppers.

“Canadians are likely to agree that certain brands are better and worth paying more for,” said American Express Canada Regional President Beth Horowitz. “This suggests that they are more sensitive to what brands deliver and that this plays into their purchase decisions.”

Affluents Less Sensitive to Price Than Non-Affluents — Despite the importance of price, many affluent shoppers place less emphasis on it than do non-affluent shoppers. In the eleven countries as a whole, price is a top-ranked factor for 73 percent of the affluent compared with 83 percent of the non-affluent. Affluent people are more likely than others to list product features (36 percent versus 31 percent of non-affluent).

“The survey results show just how differently global trends play out in different countries,” noted Parekh. “It is a complex mix. The key to running a successful global business is in understanding how to interpret and adapt global trends on a local basis in order to meet customers' needs.”
American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.

The information in this release is based on the Roper Reports Worldwide 2003 global survey of 1,000 people age 13 to 65 in each of eleven countries, conducted by RoperASW, an NOP World company. Respondents represent the top earning 10-20 percent of households surveyed in each country, with incomes varying somewhat from country to country. The margin of error for affluent consumers across the eleven markets is +/-3 percent.

RoperASW, a NOP World company, is a leading global market research and consulting firm. With headquarters in New York and offices in London, Manila and throughout the U.S., NOP World is the seventh largest market research company in the U.S. and among the top ten globally.