Contents:

1 WHAT’S ON CONSUMERS’ MINDS: 2005 Eight Dominant Retail- and Consumer-Related Issues Lifestyle-Related Issues Maintaining a Desired Lifestyle Leisure Activities 2 CONSUMER BEHAVIORAL TRENDS: 2005 Ten Consumer Behavioral Trends Driving Business in 2005 The 2004 List 3 MACRO TRENDS The Next Big Shift in Shopping Habits is Underway Macro Trends Defining the Shift in Shopping Patterns in America 4 CONSUMER BUYING PATTERNS Busy Lifestyles Multitasking Buying Luxury Conspicuous Consumption Shopping for Bargains Changing Patterns of Shopping Channels Impulse Buying Unconscious Decision Making The Emotional High of Shopping Advertising Saturation 5 THE NATIONAL CONSUMER POLL Overview Consumable Spending Major Purchasing Income Prices Job Security Financial Situation Outlook 6 CONSUMER SATISFACTION Economic Indicators of Satisfaction with the Quality of Products and Services Available to U.S. Household Consumers 10 Economic Sectors; 41 Industries; More Than 200 Individual Companies 7 THE SCIENCE OF SHOPPING Why We Buy: The Science of Shopping The Social Aspect of Shopping 8 MARKET DRIVERS FOR DISCRETIONARY SPENDING Fourteen "Justifiers" That People Use to Rationalize When They Buy Things They Could Do Without 9 GENDER-RELATED SHOPPING TRAITS The Shopping Habits of Men and Women are Dramatically Different Apparel Housewares Toys and Video Games Targeting the Female Consumer Targeting the Male Consumer 10 GENERATIONAL CHARACTERISTICS Seniors Baby Boomers Generation X Generation Y 11 THE NEW LUXURY MARKET The New Luxury Phenomenon A $525 Billion Market Market Characteristics Capitalizing On and Locking Into the Trading Up and Trading Down Phenomenon Supply Side Market Drivers Demand Side Market Drivers 12 LUXURY CONSUMER CONFIDENCE Consumer Survey Results 13 TREND INFLUENCERS Major Trends with Significant Influence on Consumer Spending and Buying Behavior 14 RECENT FINDINGS: SEGMENT-BY-SEGMENT Beauty Products Crafts Home Decor and Furnishings Restaurants Travel & Tourism 15 CUSTOMER LOYALTY Results of Recent Consumer Surveys Loyalty Programs 16 DIFFERENTIATION AMONG RETAILERS Findings of Recent Consumer Survey The reasons shoppers chose specific retailers Technology to Improve the Retail Experience Case Study 17 THE INFLUENCE OF STORE ATMOSPHERICS Results of Recent Consumer Survey The Decompression Zone Shopping Paths Well-Designed Retail Stores 18 CONSUMER BEHAVIOR ONLINE Abandoned Online Shopping Carts Search Behavior 19 KNOWING YOUR CUSTOMER Target Wal-Mart 20 HISTORIC FUTURISM American’s Penchant for Nostalgia High Tech - High Touch Historic Futurism The Rebirth of the Old Main Street The Nostalgia Theme in Retail 21 COMPULSIVE SHOPPING Percentage of Population Classified as Clinically Compulsive Buyers Characteristics of the Disorder Treatment 22 OPINION POLLS, FOCUS GROUPS, AND MARKET TRACKING Consumer Surveys and Opinion Polls Purchase Behavior Research Media Consumption Research Tracking Consumers Online Video Mining RFID Tracking 23 NEUROECONOMICS Research at the New York University Research at the Baylor College of Medicine Research at Emory University Research at the London Business School Research at Stanford University Applications at BrightHouse Neurostrategies Group Applications at Lieberman Research Worldwide Research at California Institute of Technology Applications at FKF Applied Research FOR FURTHER READING MARKET RESOURCES REFERENCES