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Polling and Market Research Since 1984
AHEAD OF THE CURVE
May, 2006
Volume 2, Issue 2

We Shop, Therefore We Are - Page One

Is Your Wallet Half-Empty or Half-Full? - Page Three

Thinking Outside the Box (Store) - What Americans really want but don't have - yet - Page Four

We Shop; Therefore We Are

While some shun modern consumerism, others feel a real need for it, a Zogby Interactive study shows

Imagine if you will, making no new purchases for the year 2006. No shoes, no iPod Nano, no new gadgets, no new appliances, CDs, movies, jeans, no non-fat half-caf latte - did I mention the shoes? Can you imagine making such a pledge? In the Bay area of San Francisco lives a group of people who have agreed to do just that. Calling themselves the Compact, after the agreement signed by the Mayflower Pilgrims, these individuals have banded together and agreed to not purchase anything new for the year 2006. Food, safety and health items, and underwear are excluded. They are engineers, bankers, couples and singles who are willing to take part in a simple but radical social experiment.

They are allowed to buy from flea markets, swap meets, used clothing stores, and anywhere else that provides used items. They can trade, recycle, freecycle, borrow or dumpster-dive. Nothing brand new, that's the rule. Perhaps it is close to the way you live now. But in all likelihood, it is not.

Why should this be difficult? It seems simple as long as you have access to good quality used items. But, does the idea of this make you the slightest bit uncomfortable? If so, why? What is consumerism about? Does having something shiny and new provide benefits beyond the usefulness of the item? Does buying something new give you a lift? We are a nation of consumers - the economy depends on it. But more importantly, it seems we depend on it in more ways than meet the eye.

In a series of questions asked of our Zogby Interactive consumer panel, we probed the feelings surrounding ownership of things, asking about what an item does for the consumer's self-esteem, independence, sense of adventure, security love, etc.

We asked, for example, whether owning something was important to a sense of adventure? On a scale of 1 to 5, with 1 being not at all important and 5 being extremely important, 32% said owning something increased their sense of adventure - who knew? Does owning something improve overall self-esteem? Rather surprisingly, 45% say "no," but another 25% acknowledged that it does somehow improve their opinion of themselves.

(cont'd on nxt page)

If the broader modern American era is defined by materialism and an unusual optimism, people tell Zogby they want even more! Asked when they would prefer to live, if given a chance to exchange lives with someone in a different era . . .
24% said "the future"
13% said "the birth of America"
8% said "the WWII era"
8% said "the Hippie, anti-war era"
8% said "the Roaring 1920s"

Volume 2, Issue 2 Page 2

Continued from Page One . . .

Filling closets, filling needs: Americans tell Zogby International that shopping feels so good!

What about your sense of independence? A remarkable 59% said owning something was important to their sense of independence, while 17% said it isn't important. There is a male-female disconnect on this question, with 35% of women saying that owning something is extremely important to their sense of independence, compared to just a quarter of men who said it is extremely important. A big majority (63%) of Americans over the age of 65 said that owning something was significant to their sense of independence, with one-third of them saying it's extremely important. Divorced respondents felt much the same. Sixty-five percent said ownership provided a positive contribution to their sense of independence.

Just 30% overall said it helped fulfill their sense of beauty to own something. Women are far more likely to find a feeling of beauty in ownership of a particular thing, with 38% of women agreeing that ownership is important to a feeling of beauty, and just 18% of men saying it is.

Ownership also conveys a sense of feeling special when an object is given by a loved one, and more than half said they also derive a sense of security and safety from the ownership of a significant possession. In a slight nod to the famously greedy movie figure Jerry Maguire, 7% agree that ownership of a thing "completes them", but 48% do not feel that way. More than half said owning something is important just for the sheer pleasure of it, and 74% said owning something is important for their sense of comfort.

The survey indicates that ownership is not particularly important to generating a feeling of power and authority, to appearing wealthier, to "one-upping" friends, or to help bond with others. It seems, though, that giving up buying new stuff may involve more than simply losing out on the shopping experience, the art of the deal and the thrill of the bargain. It may involve those deeper, complicated feelings that help each of us define who we are and how we relate to those around us. If ownership of a thing makes you feel special because someone you love bought it for you, what happens when they stop buying? Is their love for you compromised? Is yours for them? Can marriages, engagements, courtships survive without a coffee date, a piece of jewelry, or that one little thing to remember them by? Can fresh-picked flowers help around the house, and a thoughtful word or deed, fill the void?

Could we do this to our families for an entire year? Or longer? How are these feelings conveyed to our children? Is it with a sense of embarrassment that they would appear at school with something old, used or handed down? Or is there security to be found in the reduced cost of living provided by such a life? Can the security of money in the bank compete with the inner joy that comes with having the latest and greatest toy, gadget or pair of sneakers?

And what about safety, security, or independence? How are these impacted by your purchases and your ownership? What if you can no longer buy? Will you be able to find security in what you already own? In used items, in things borrowed or handed down?

The Zogby survey results indicate the simple purchase may not be so simple after all.. Giving up shopping might demand not only less examination of the latest batch of catalogues, but also more examination of our own feelings about the stuff in our lives.


Volume 2, Issue 2 Page 3

Is The Wallet Half Full or Half Empty?

Most Americans doing okay; Nearly half say they can afford to enjoy some luxuries in life

When it comes down to it, consumerism is driven by the money workers make, and an exhaustive Zogby International survey has found that most Americans are making enough money to get by. About half said they can afford to enjoy some consumer luxury in their lives.

Just 7% said that they do not make enough money to pay their bills, and, as you might expect, that number gets smaller the older the respondent gets. But the survey shows there is also a connection between political ideology and income - those who consider themselves very liberal or progressive are twice as likely as conservatives to say their income does not meet their basic needs. Still, just 9% of the very liberal say they cannot pay their bills.

About one in four say they are making enough money for the time being, implying that more will be needed in the future. While 54% of those who consider themselves very conservative can afford some luxuries in life, just 40% of progressives said the same thing.

And the survey confirms that, financially speaking, it helps to be married. Among those who are married, 55% said they can afford some luxuries and just 4% said they cannot make ends meet, while 33% of those who are single and 44% of those who are divorced said they make enough to enjoy some extras. And those who own their home are doing markedly better than renters - just 4% of homeowners said they cannot pay basic bills, while 14% of renters are in the same boat.

The survey showed there is a difference between the amount of money people need to get by, and the amount they need to be comfortable. While 89% said they can make ends meet on $100,000 or less, there is clearly a desire to make more - 70% feel they can live comfortably without six figures.

While 54% said they need up to $50,000 to get by, half of those people said they needed more to be comfortable.

Twenty-five percent said they would require at least $100,000 a year in income to be comfortable, and 8% said they need that much to pay bills. Three percent said they need more than $500,000 each year to sleep easy at night.

While nearly half (48%) of those who were divorced, separated, or widowed said they needed less than $50,000 to be comfortable, just 17% of married respondents agreed that was enough income. And though they may think as different as night and day, it appears that liberals and conservatives run their lives on similar budgets - about one in five said they need less than $50,000 to get by, and about a quarter of each group said they require six figures to be comfortable. Almost half of each group - 46% of conservatives and 44% of liberals said they need between $50,000 and $100,000 coming through the door each year.

When it comes to dreaming about money, 31% said they would be happy with less than $1million, while 36% said said between $1 million and $10 million would cover their desires. And then there are those who want to be super rich -17% said they want more than $50 million.

Eight percent said that they would be fine with a sum between merely wealthy and being super-rich - something between $11 million and $49 million.


The Ultimate In Materialism

Gauging the American appetite for excess

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So, what have you always wanted but do not yet have? In many ways, it's the ultimate long-term question facing American consumers, but one-third of those respondents to a Zogby International consumer survey said there is nothing on their wish list. As you might expect, the older the respondent, the less likely it is they would still have unfulfilled desires - 52% of those over age 65 said they no longer have an outstanding dream purchase or experience on their to-do list. Compare that to one in five of those under 30 who said they don't have a big-ticket consumer dream in mind.

Of those who do, more favor experience over ownership of a "thing." Americans of all ages said the biggest thrill would be to take a trip of a lifetime. Among those over age 70, 25% said that special trip is still in their dreams - more than twice as many as said they would love to have a second home.

Second homes are favored by 24% of those who still have school-aged children living at home, which is 5% higher than those with no children still at home. Among those who enjoy a household income of more than $75,000, 25% said they would like a second home, and 26% said they have always wanted a trip of a lifetime. But the less one earns, the more they favor the trip over the house - perhaps because there are no extra gutters to clean, lawns to mow, and no on-going expenses to worry about.

Overall, just 9% said they would most love to have a swimming pool, and 6% said they would most love to own a luxury car. Just 1% said they would love to own an exotic animal, while 3% said the experience of going on a date with a movie star would be the thing they would most want.While 5% of men said the movie star date would be their ultimate experience, just 1% of women felt that way.

Zogby International: Keeping Your Company and Your Clients Ahead of the Curve Since 1984.
For more infomation about polling and market research, contact Chad Bohnert at (315) 624-0200 ext. 237 or chad@zogby.com

Zogby's American Consumer Newsletter
Zogby’s American Consumer Publisher
John Zogby
President & CEO, Zogby International
Editor-in-Chief
Fritz Wenzel
Writer
Karen Scott
Managing Editor
Marc Penz
Copy Editor
Joe Zogby

55% of those under age 30 said "yes"
Asked if they have ever been jealous of a neighbor or friend who has something they wanted but could not have . . .
15% of those over age 65 said "yes"
45% of liberals said "yes"
32% of conservatives said "yes"
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