The second annual American Express Platinum Luxury Survey investigated differing attitudes and motivations among Gen Xers, born between 1965 and 1976, and their Baby Boomer counterparts, born between 1946 and 1964, as well as the affluent ($125,000 to $199,999 income) and the rich ($200,000 income and above).

Overall, wealthy Gen Xers have an average annual income of $213,000 and spend $26,751 on luxury goods annually. By comparison, wealthy Baby Boomers have an average annual income of $222,900 and spend $22,631 on luxury goods each year.

“Marketers tend to think of the Gen Xers as a cohort too small to even worry about, but this research shows that Gen X may be small in size but they are mighty in luxury buying power,” said Pam Danziger, founder of Unity Marketing (Stevens, Pa.), the marketing consulting firm that conducted the survey. “Their influence is destined to grow even more in the luxury market in the future now that the leading edge of this generation reaches 40 years of age this year.”

According to the survey, the rich spend $12,831 annually on luxury pet products. By comparison, the affluent spent $1,316 a year on luxury pet products. Interestingly, the rich spend about as much on luxury products for their pets as they do on luxuries for their children.

That isn’t to say that luxury consumers aren’t value-conscious:

• 83 percent said a sale or discount was very important or somewhat important to their purchase decision.
• 63 percent said they rarely pay full price for a luxury brand.

“Despite their propensity to watch their wallets, they are willing to pay more for superior service and greater convenience,” said Peggy Maher, a senior vice president for American Express. “Most of the wealthy consumers surveyed come from middle-class backgrounds and are thus more value-conscious. As we know from our platinum card members, they are willing to pay for goods and services as long as they see the value.” [August 2005 PET AGE]