Research and Markets (researchandmarkets.com/reports/c15702) has announced the addition of The Frugal Luxury Shopper (Luxury Tracking Report 3Q2004) to their offering. (PRWEB) April 15, 2005 -- Research and Markets http://www.researchandmarkets.com/reports/c15702) has announced the addition of The Frugal Luxury Shopper (Luxury Tracking Report 3Q2004) to their offering. Luxury consumers' confidence in the economy took a hit in the third quarter with the Luxury Consumption Index dropping to 96.0, down 6.7 points from the second quarter, according to a new tracking study of the luxury market Their feelings of uncertainty played out in the stores, in the travel sector and at service businesses that cater to the affluent. The average amount luxury consumers spent on luxuries in the third quarter (July-September) dropped 35 percent, from an average of $4,275 in the second quarter to $2,779 in the third. Luxury consumers turned attention homeward; Foreign travel and fine dining took hit During the third quarter, luxury consumers bought more home luxuries with the greatest increase tracked in home electronics and photography; linens and bedding; kitchenware, cookware and housewares; and furniture, lamps and floor coverings. By contrast, personal luxury spending was off, down 35 percent to $750 in the third quarter, with the purchase of jewelry and watches dropping steeply. Personal luxuries include clothing and apparel, fashion accessories, beauty products and luxury automobiles. Also negatively impacted in the third quarter was spending and participation in experiential luxuries. Particularly hard hit was foreign travel, which dropped from 79 percent purchase incidence in second quarter to 50 percent in the third. Fine dining also experienced a decline, with the average amount spent dropping 50 percent to $375. Consumer confidence predicted to rise in fourth quarter with renewed spending The luxury consumer is expected to return to the stores and service providers in full force during the fourth quarter. The negative feelings from the third quarter will subside as the stock market rebounds and the political uncertainties from the election campaign are resolved. A survey on holiday spending conducted right after the election predicted a spending increase of 6.3 percent among the more affluent gift shoppers, significantly higher than the 4.5 percent expected among the less affluent. It is expected the luxury market to make up any shortfall experienced in the third quarter with strong spending in all luxury categories through the rest of the year. About the Luxury Tracking Study The Luxury Tracking Study is fielded quarterly among a sample of affluent consumers. This report summarizes the third wave Luxury Tracking Survey, field during October 2004, recording luxury purchases from July-September 2004. The overall objective of the survey is to help luxury brand marketers and retailers better understand the shopping and buying habits of their customers and anticipate how they will be spending their luxury budgets in the coming months. A total of 717 affluent consumers with household incomes of $75,000 or more and who purchased at least one luxury in the third quarter of 2004 (July-September) were included in the survey. To enable luxury marketers to understand variations within the affluent market, perspectives of three different segments of the luxury market are gathered, based on household income: $75,000-$99,999 (near-affluents or 27 percent of 3Q sample); $100,000-$150,000 (affluents or 45 percent of 3Q sample); $150,000+ (super-affluents or 27 percent of 3Q sample). This tracking study gives luxury marketers early warning of changes and shifts in their marketplace. It will help them monitor brand awareness and purchase so that they can measure the success of new marketing communications programs. It provides a view 'over the horizon'of what trends are coming and how they will affect the luxury consumer. Through this service, luxury marketers keep their finger on the pulse of their affluent customers. Luxury product categories included in the quarterly survey: -Home Luxuries. -Personal Luxuries -Experiential Luxuries Discount Purchases Researched in More Depth As each wave of tracking studies are fielded, it is planned that special topics of interest to luxury marketers will be researched in more depth. During the third wave luxury tracking study, the role of price and value, bargain shopping and price discounting were explored more fully. Detail questions about purchases on sale or at a discount within each luxury category was included, as was a battery of attitude questions seeking to find out more about the bargain-shopping, value-motivated luxury shopper. The topic for special study in the fourth wave luxury tracking will be the selection of luxury as gifts. For more information visit http://www.researchandmarkets.com/reports/c15702 Laura Wood Senior Manager Research and Markets e-mail protected from spam bots Fax: +353 1 4100 980