Desire, Drives $3 Trillion in Consumer Spending

Ever since the government began tracking economic statistics, the U.S. economy has been a consumer economy.
Every year since 1929 until the present, with a few exceptions, consumer spending has accounted for between 60-to-70% of the total economy. Today out of our $10 trillion economy, some two-thirds or $6.6 trillion is consumer
spending. About 40% of that, or $3 trillion, is spending on discretionary products and services.

In an interview today on CNN Financial News Network's Money Morning show, Pam Danziger, president of Unity Marketing and author of the new book "Why People Buy Things They Don't Need," says "Consumers today spend proportionately less on basic necessities, such as food, clothing and shelter, than they did twenty-five, thirty-five or even fifty years ago. But they spend more and more money on discretionary purchases that are motivated by emotion and
desire."

In her book Danziger advocates marketers and retailers move beyond the rationally-oriented features and benefits of products and services and instead focus on the emotional satisfactions that drive consumer spending.

"Brands with life and vibrancy that really speak to the consumer, do so on an emotional plane," says the author. "By uncovering the interior emotional life
of the consumer you can devise marketing strategies, competitively position products and craft persuasive advertising messages. In essence, the 'why people buy' defines the brand."

This comprehensive study of consumers has resulted in identification of 14 different justifiers that explain the underlying motivations driving consumer purchases. "These justifiers, such as pleasure, stress relief, education, to
beautify the home or self, entertainment, and so on, are used as rational excuses to give consumers permission to buy. The overriding justifier behind all discretionary spending is to improve the quality of life. Every American
wants a better, more satisfying, fulfilling life and they buy things to experience a better quality-of-life," Danziger says.