Americans Demand the Luxury of Leisure Self-Actualization Drives Spending on Entertainment and Recreation

Furniture World News

American's insatiable appetite for entertainment resulted in spending of $627.2 billion in 2002, an increase of 5.6 percent over 2001, according to a new Unity Marketing study Why People Buy Entertainment and Recreation Products, 2003, on consumers' entertainment and recreational product purchases. "That's almost 50 percent more than we spend on apparel and accessories and more than the entire GNP of Canada," said Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need. "Powered by a feeling of entitlement, Americans bring a unique achievement orientation to how we 'recreate.' We want to accomplish something meaningful and measurable through our leisure pursuits." "For more Americans, and particularly affluent consumers, the goal of leisure and entertainment is to achieve greater self-actualization." Psychologist Abraham Maslow placed 'self-actualization' at the pinnacle of the hierarchy of human needs, to be satisfied only after the basic needs for food, clothing and shelter are met. According to Maslow, self-actualization refers to "man's desire for fulfillment, namely to the tendency for him to become in actuality what he is potentially to become everything that one is capable of becoming." Marketers and retailers of entertainment and recreation products primarily serve consumers' self-actualization needs, as their products have no practical purpose other than to provide emotional satisfaction. Typical American spends almost $2,000 on entertainment goods. In the latest survey of 1,000 U.S. consumers, books, magazines and newsletters (purchased by 74 percent of shoppers in the past year), prerecorded media (62 percent), and toys, dolls and games (50 percent), were the most widely purchased among a total of 11 entertainment and recreational product categories. Total consumer spending on these purchases was $1,834 on average. "For certain categories of goods, notably audio and stereo equipment, books and magazines, home computers and software, musical instruments, sporting goods and exercise equipment, shoppers favor the extra service they receive at specialty stores. But for everything else, from prerecorded media, toys, dolls and games, photography equipment and supplies, pet accessories, TV, radios, DVD and VCR players and craft supplies, consumers shop mass merchants first and discount department stores," Danziger revealed. "Fantasy Fred" and "Frugal Francine" are most affluent. Unity's research found five market segments distinguished by an emotional need for entertainment. 'Bored Betty' needs more meaning in her life and seeks it through entertainment. Reducing boredom and stress is the prime motivator for Betty, who is more likely to be a low-income woman living alone. 'Fantasy Fred,' on the other hand, finds meaning by connecting with other places and times. This consumer, a highly educated, married baby-boomer with a $75k plus income, uses entertainment to expand his mind through new ideas and to express different aspects of his personality. 'Entertainment Aficionado Alex' is the most active buyer of entertainment media. But Alex's lower income and younger age means he spends a significant amount of his disposable income in the category. 'Frugal Francine' finds entertainment in shopping for bargains, and is more involved in buying entertainment media than in using it. An active consumer, Francine is more likely an upper-income married woman aged 25-to-54 years-old with children. "Finally, 'Coach-Potato Carol' is the least active entertainment consumer. Equally divided between males and females, this consumer is older, often retired, and is not particularly motivated by fantasy fulfillment, self-expression, boredom or stress relief or media as an enhancement to quality of life," Danziger concludes. This new report, Why People Buy Entertainment and Recreation Products, 2003, provides market size and growth statistics and an overview of the retail market for 11 categories of entertainment products, including audio equipment and stereo systems; books, magazines and newsletters; computers and software for home use; craft, sewing, knitting and needlework supplies; musical instruments; pet accessories; photography equipment and supplies; pre-recorded video, music, DVDs; sporting goods, exercise equipment and supplies; toys, games and dolls; TV's, radios, VCRs and DVD players. For each product category, the report includes consumer purchase incidence, where consumers shop, how much they spend, key demographics and purchase drivers for the category. Also included are profiles of five different segments of entertainment consumers and the eight key trends that are shaping the market for these products in the future. The report can be ordered directly from this link. About Unity Marketing: Unity Marketing is a market consulting firm that specializes in consumer insights for luxury marketers. Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Paramount Market Publishing) uncovers the motivations, desires and emotional needs that drive consumers to buy.Unity publishes market research studies on the luxury market, jewelry, garden, home furnishings, gifts and collectibles, greeting card and stationery, personal care and cosmetics markets, as well as the Luxury Business newsletter. Pam is currently working on her new book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published in early 2004.