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									       The Mendelsohn Affluent Survey:
     The Affluent and Luxury Marketplaces


                                           February, 2008




Monroe Mendelsohn Research, Inc. • 841 Broadway • New York, NY • 10003-4704 • 212-677-8100 • FAX 212-677-8833
                    Agenda


• Monroe Mendelsohn Research

• Selected Results from The 2007 Affluent Survey

• The 2008 Affluent Survey




                          -2-
Monroe Mendelsohn Research




             -3-
    Monroe Mendelsohn Research


•    Founded in 1958 by Monroe Mendelsohn.

•    Business grew based on high-quality research and integrity.

•    MMR conducted only custom marketing research until 1978,
     when The Mendelsohn Affluent Survey was launched.

•    Recently launched The Affluent Omnibus Survey.

•    Continues to conduct custom marketing and media research
     studies.




                                 -4-
    Mendelsohn's Affluent Survey

•   An annual syndicated survey now going into its 32nd year.

•   Measures "affluent" households across America — the top quartile
    ($85K+ in 2007).

•   Collected data in 2007 by mail using a 16-page questionnaire that
    covered many topics.

•   Produces an annual database of approximately 13,000 affluent
    respondents.

•   Used for strategy, marketing, selling, and media selection purposes by
    many advertisers, ad agencies, publications, and cable networks that
    market to the many segments of affluent America.




                                   -5-
    Mendelsohn's Affluent Omnibus
               Survey

•   A new, recontact survey that complements the Affluent Survey.

•   Allows subscribers to insert their own custom questions into the
    2008 Mendelsohn Affluent Survey.

•   Will be used for marketing and media purposes by participating
    advertisers, ad agencies, publications, cable networks, digital
    networks and other organizations that market to the many
    segments of affluent America.




                                   -6-
 Selected Results from
The 2007 Affluent Survey




            -7-
                             The Affluent
Using MMR's definition of Affluent, there are slightly more than 29
million Affluent households according to the U.S. Census's latest
                             survey.
                                               # of
                                        Households                     % of
        Household Income Segments            (000)               Households

        Total                            116,011                      100

        Under $85,000                      86,915                       75
        $85,000 to $149,999                20,329       29,096          18    25
        $150,000 to $199,999                4,751                        4
        $200,000 to $249,999                1,776                        1
        $250,000 or more                    2,240                        2
        Source: U.S. Census, Current Population Survey, 2007




                                             -8-
                            The Affluent (continued)
These 29 million Affluent households comprise 25% of the U.S.
  population, but they earn more than half the total income.

                                                                                      Share of
                             # of                       % of           Total $         House-
                            House-                     House-         Household         hold
Household Income Segments holds (000)                   holds          Income         Income

Total                        116,011                    100           7.7 trillion     100

Under $85,000                 86,915                     75            3.3 trillion      43
$85,000 to $149,999           20,329          29,096     18      25    2.2 trillion      29      57
$150,000 to $199,999            4,751                        4         805 billion       10
$200,000 to $249,999            1,776                        1         390 billion        5
$250,000 or more                2,240                        2         1.0 trillion      13

Source: U.S. Census, Current Population Survey, 2007




                                                       -9-
           The Affluent (continued)


•   The 2007 Mendelsohn Affluent Survey projects that
    there are about 2.6 million "High Net Worth"
    households (with $1 million+ in liquid/investable
    assets) living in the U.S. They are labeled as
    "HNW" in this presentation.

•   Households with $250K+ household income, the
    other Affluent segment profiled in this presentation,
    are labeled as "$250K+".




                               - 10 -
                    The Affluent (continued)
HNW households tend to be older than $250K+ households

                              Total
                             Affluent          $250K+   HNW
                                %                %       %
       A ge
         18 to 29 years         6                4       2
         30 to 34 years         9                7       1
         35 to 39 years         13               10      3
         40 to 44 years         15               14      8
         45 to 49 years         16               16     12
         50 to 54 years         15               15     12
         55 to 64 years         19               24     32
         65 years or older      8                12     29

         Mean age              47.8             50.3    57.4




                                      - 11 -
                  The Affluent (continued)
About a third of HNW households report HHI of $250K+

                                   Tot al
                                  Af f luent   $250K+   HNW
                                      %          %       %
   2006 Household Inc ome
     $85,000 to $99,999              25           0      11
     $100,000 to $124,999            30           0      13
     $125,000 to $149,999            16           0      12
     $150,000 to $199,999            16           0      18
     $200,000 to $249,999              6          0      12
     $250,000 to $499,999              6         74      20
     $500,000 or more                  2         26      14


   Mean Household Income ($000)     157.7       483.3   300.4




                                      - 12 -
                            The Affluent (continued)
More than one third of the $250K+ segment report liquid assets of $1
                              million+
                                         Tot al
                                       A f f luent            $250K +   HNW
          Liquid asset s                   %                    %        %
            Under $10,000                   8                    3       0
            $10,000 to $19,999              5                    1       0
            $20,000 to $49,999             10                    3       0
            $50,000 to $99,999             12                    4       0
            $100,000 to $199,999           15                    9       0
            $200,000 to $249,999            5                    3       0
            $250,000 to $499,999           13                   14       0
            $500,000 to $749,999            6                   13       0
            $750,000 to $999,999            3                    8       0
            $1,000,000 to $1,499,999        4                    9      40
            $1,500,000 to $1,999,999        2                    7      20
            $2,000,000 to $4,999,999        3                   19      34
            $5,000,000 to $9,999,999        *                    4       5
            $10,000,000 or more             *                    1       1

            Mean among owners ($000)      427                  1374     2246
          * = less than 0.5%

                                                     - 13 -
                    The Affluent (continued)
The 867,000 households that have both $250K+ household income and
         liquid assets of $1 million+ constitute a prime target


$250K+: 2,245,000



                           Both: 867,000


                                                    HNW: 2,600,000




                                     - 14 -
               The Affluent (continued)
        The Affluent are overwhelmingly white


                                 Tot al
                                Af f luent   $250K+   HNW
                                    %          %       %
Rac e

  Asian only                        6          7       5
  Black/African American only       6          5       4
  White only                       87          86     90
  Other/multiple answers            2          2       1


Hispanic desc ent
  Yes                               6          5       4
  No                               94          95     96




                                    - 15 -
                The Affluent (continued)
The majority of the Affluent have attended college


                                   Tot al
                                  Af f luent   $250K+   HNW
                                      %          %       %
 Highest lev el of educ at ion
   High school graduate or less      22          14     13
   Some college                      22          15     19
   College degree                    35          37     35
   Postgraduate study                  6          8      9
   Postgraduate degree               16          26     24




                                    - 16 -
                     The Affluent (continued)
The Affluent are overwhelmingly married/partnered

                                  Tot al
                                 Af f luent   $250K+   HNW
                                     %          %       %
 Marit al st at us

  Single                             4          3       3

  Married/partnered                 91          92     90

  Divorced, separated, widowed       5          5       7




                                    - 17 -
                     The Affluent (continued)
Compared with all U.S. households, the affluent are currently more
           likely to live in the Northeast or the West

                         Tot al    Tot al
                          U.S     Af f luent   $250K+   HNW
                           %          %          %       %
     Census Region

       Northeast          18          22         24     22

       Midwest            23          22         17     19

       South              37          33         31     34

       West               22          24         29     26




                                   - 18 -
             The Affluent (continued)
A good number of the HNW segment is retired



                              Tot al
                            A f f luent    $250K +   HNW
                                %            %        %
 Employ ment St at us


   Total employed               82           77      59

   Not currently employed        9           12       9

   Retired                       9           11      32




                                  - 19 -
                          The Affluent (continued)
Professional/managerial adults in the $250K+ and HNW segments
                 are likely to be C-suite types

                                            Tot al
                                          A f f luent    $250K +   HNW
                                              %            %        %
        J ob Tit le

           A ny c hief of f ic er             22           44      43
              Chief executive officer         11           30      29
              Chief operating officer          9           17      15
              Chief financial officer          8           15      14
              Chief investment officer         4            9       8
              Chief information officer        6            9       8
              Chief purchasing officer         7            9       9
              Chief marketing officer          7           14      12
              Chief planning officer           7           12      10


                                                - 20 -
                         The Affluent (continued)
The $250K+ and HNW segments tend to have substantial total assets

                                                Tot al
                                              A f f luent    $250K +   HNW
                                                  %            %        %
           Tot al A sset Value of Household
             Under $250,000                        2            0       0
             $250,000 to $499,999                 11            *       0
             $500,000 to $749,999                 17            1       0
             $750,000 to $999,999                 16            2       0
             $1,000,000 to $1,499,999             21            7       1
             $1,500,000 to $1,999,999             11           10       9
             $2,000,000 to $2,499,999              8            9      13
             $2,500,000 to $2,999,999              5           13      15
             $3,000,000 to $3,999,999              5           17      20
             $4,000,000 or more                    6           40      41

           * = less than 0.5%



                                                    - 21 -
                 The Affluent (continued)
The majority of the Affluent use financial advisors


                                 Tot al
                                Af f luent   $250K+   HNW
                                   %           %      %
 Used any of t he f ollow ing      65          84     87

    Tax consultant                 29          42     38

    Financial planner              25          37     40

    Full-service broker            18          35     41

    On-line trading                14          22     19

    Discount broker                  5         10     12

    Other broker service             5          7      7




                                    - 22 -
              The Affluent (continued)
   The Affluent own their principal residence


                                    Tot al
                                  A f f luent     $250K +   HNW
                                      %             %        %
Desc ript ion of Princ ipal Residenc e

  Own principal residence             97            97      98

     Private house                    92            91      91

     Apartment/condo/co-op               3           4       6




                                         - 23 -
                    The Affluent (continued)
The $250K+ and HNW segments are more likely to own multiple
                      residences

                                   Tot al
                                 A f f luent            $250K +   HNW
                                     %                    %        %

         Number of residenc es

           One                       71                   49      54

           Two                       19                   32      32

           Three                      5                   11       9

           Four or more               5                    8       5




                                               - 24 -
                       The Affluent (continued)
The $250K+ and HNW segments also own other real estate

                                             Tot al
                                           A f f luent   $250K +   HNW
                                                 %         %        %
   Ow nership of Real Est at e Ot her
   Than Princ ipal Residenc e

   Hav e ot her real est at e                  34          59      54
      Private house                            15          29      26
      Apartment/condo/co-op                      6         16      14
      Time-share condo/resort                    6          7       8
      Weekend/vacation home or apartment         4          8       7
      Farm or ranch                              3          6       5
      Residential rental property                7         12      10
      Commercial property                        2          7       6
      Undeveloped land                           4          9       8

                                            - 25 -
                              The Affluent (continued)
The $250K+ and HNW segments are active in investing, traveling, etc.
                                                Tot al
                                               Af f luent   $250K+   HNW
                                                   %          %       %
     Lif est y le Plans of Household Members
     f or Nex t 12 Mont hs
       Invest in stocks, mutual funds, etc.        39         55     55
       Remodel or renovate                         39         37     33
       Take a trip/vacation outside the U.S.       37         57     52
       Redecorate home                             26         26     22
       Buy or lease a new car, SUV, or truck       25         34     28
       Take a cruise                               16         20     21
       Buy a new home                                   9     13      9
       Have a baby                                      7      7      3
       Get married                                      5      5      4
       Get engaged                                      3      4      3

                                               - 26 -
                  The Affluent (continued)
The $250K+ segment tends to travel frequently

                                 Tot al
                                Af f luent        $250K+      HNW
                                     %              %          %
 Tot al domest ic /f oreign round t rips in past 12 mont hs
    One                            15                7        10
    Two                            15               11        13
    Three or four                  14               13        17
    Five or six                      8              13        13
    Seven to ten                     8              16        13
    Eleven to fourteen               3               9         7
    Fifteen to nineteen              2               6         4
    Twenty or more                   4              13         8




                                         - 27 -
                  The Affluent (continued)
 The $250K+ segment is more likely to fly "private"


                                         Tot al
                                        Af f luent   $250K+   HNW
                                            %          %       %
Hav e been a passenger on a priv at e
airc raf t as an alt ernat iv e t o a
c ommerc ial f light in past y ear           5         15     10




                                           - 28 -
                   The Affluent (continued)
Europe is the most visited foreign travel destination
     among the $250K+ and HNW segments

                                                Tot al
                                              Af f luent   $250K+   HNW
                                                     %       %       %

Selec t ed Foreign Trav el Dest inat ions

  Bermuda/Bahamas/Caribbean                          11      19     16

  Mexico                                             9       15     11

  Europe                                             9       23     22

  Canada                                             7       13     12

  Central or South America                           2        5      5




                                            - 29 -
                            The Affluent (continued)
                           The Affluent are civic-minded

                                                                Tot al
                                                              A f f luent   $250K +   HNW
                                                                  %           %        %

Public ac t iv it ies engaged in

  Wrote/e-mailed public official                                  21          27      30

  Gave a speech/addressed a public meeting                        17          27      24

  Worked 10+ hours a month for non-political charity org.         17          24      25

  Took an active role in a civic or social issue                  14          21      21

  Wrote/e-mailed a newspaper or magazine editor                   10          12      14

  Served on own/another company's board of directors               9          24      20

  Actively worked for political party or candidate                 4           8       7

  Wrote an article or book for publication                         4           7       7


                                                     - 30 -
                            The Affluent (continued)
The Affluent, especially the $250K+ and HNW groups, are spenders

                                                 A f f luent   $250K +   HNW
                                                        %        %        %

       Selec t ed Cat egory Purc hases in Past 12 mont hs

         Home furnishings                               80       84      79

         Women's evening apparel                        43       56      45

         Fine jewelry                                   37       50      44

         Women's designer/couturier clothing            29       39      30

         Luggage                                        28       40      33

         HDTV                                           25       39      30

         Artwork or collectibles                        22       34      31

         Original paintings/drawings                    10       20      16

         Antique furniture/furnishings                  8        13      11




                                               - 31 -
                  The Affluent (continued)
          The Affluent are involved culturally

                                   Tot al
                                  Af f luent   $250K+   HNW
Ev ent s during past y ear            %          %       %
  Sports events                       63         69     63
  Live theatre performances           48         64     62
  Museums                             48         62     58
  Other music concerts                47         57     50
  Art auctions/gallery exhibits       31         48     45
  Auto shows                          20         23     19
  Antiques shows                      17         22     23
  Dance/ballet performances           15         20     19
  Classical music concerts            14         22     25
  Boat shows                          12         15     14
  Live opera performances              5         12     12


                                     - 32 -
                   The Affluent (continued)
                   The Affluent join private clubs


                                 Tot al
                                Af f luent   $250K+   HNW
                                    %          %       %
Belong t o priv at e c lub         40          60     55
   Athletic club                   22          33     24
   Country club or golf club       10          25     27
   Other private club                6          5      7
   Beach or pool club                4          7      5
   Tennis or racquet club            3          8      8
   University club                   3          5      4
   Boat or yacht club                3          6      6
   Metropolitan or city club         2          5      4




                                   - 33 -
          The Affluent (continued)
     Some of the Affluent enjoy boating


                     Tot al
                   A f f luent            $250K +   HNW
                       %                    %        %

Ow n any boat          15                   19      18

  Own power boat       14                   17      16

    Two or more         2                    4       3

  Own sail boat         1                    2       3




                                 - 34 -
                 The Affluent (continued)
   The $250K+ and HNW segments are more
likely to have wine cellars and to purchase by
                   the case

                                         Tot al
                                       Af f luent   $250K+   HNW
                                            %         %       %
Have a wine cellar/wine refrigerator        11        29     23


Purchased wine by the case                  18        41     35


Purchased liquor by the case                    5      9      9




                                       - 35 -
                      The Affluent (continued)
    Wine is the Affluent's favorite alcoholic beverage
                                           Tot al
                                         A f f luent   $250K +   HNW
A lc oholic B ev erages c onsumed              %         %        %
  Table wine -- American                     60          73      70
  Table wine -- imported                     42          60      51
  Vodka                                      39          52      48
  Rum                                        30          34      31
  Tequila                                    28          37      31
  Sparkling wine -- American                 28          38      33
  Champagne/sparkling wine -- Imported       21          35      28
  Gin                                        19          29      31
  Wine coolers                               18          15      14
  Scotch                                     17          31      32
  Bourbon                                    16          23      26
  Brandy or cognac                           15          22      23
  Before or after dinner wine                14          23      22
  Blended or rye whiskey                     13          17      18
  Canadian whisky                            12          17      19
  Irish whiskey                                9         13      15
                                           - 36 -
                    The Affluent (continued)
                    The Affluent use the Internet

                                Tot al
                               Af f luent        $250K+   HNW
                                   %               %       %

Use Int ernet (t ot al)           97               98     95

   At home                        91               92     89

   At work                        63               66     49

   Both at home and at work       58               62     45

   Other location                   5              10      8




                                        - 37 -
                             The Affluent (continued)
The Affluent use the Internet to communicate and get information

                                                       Tot al
                                                   A f f luent   $250K +   HNW
                                                         %         %        %

      E-mail/c ommunic at ing                           88         92      89

      Obt aining inf ormat ion                          92         94      90

        Travel                                          76         81      76

        News                                            68         70      63

        Medical                                         52         52      50

        Sports/entertainment                            51         51      44

        Financial products                              42         48      49

        Other products/services plan to buy             69         70      63

        Other information                               40         41      39

                                              - 38 -
                     The Affluent (continued)
The Affluent also use the Internet to conduct business

                                                A f f luent   $250K +   HNW
                                                     %          %        %

Mak ing t ransac t ions                              83         86      80
   Bought miscellaneous products/services            65         69      62
   Travel arrangements                               65         74      67
   Banking transactions                              57         59      48
   Bought apparel/clothing/footwear                  50         57      45
   Downloading music/videos                          34         38      23
   Securities transactions                           17         24      23
   Bought home furnishings                           17         23      18
   Selling products/services                         15         15      11
Ot her uses of t he Int ernet                        23         23      18



                                            - 39 -
                 The Affluent (continued)
There are many cable networks that reach the Affluent

                                           Tot al
                                         Af f luent   $250K+   HNW
  Selec t ed Cable Net w ork s View ed
  in Past Sev en Day s                        %         %       %
    CNN                                       41        48     50
    ESPN                                      39        41     43
    The Discovery Channel                     39        39     38
    Arts & Entertainment                      37        37     40
    The Weather Channel                       36        35     42
    The History Channel                       34        35     39
    Food Network                              33        31     32
    Fox News Channel                          29        34     35
    Comedy Central                            28        24     21
    HGTV (Home and Garden TV)                 27        23     24
    CNBC                                      25        31     34
    ESPN2                                     24        26     28



                                         - 40 -
               The Affluent (continued)
The cable networks with the highest concentrations
      of $250K+ and HNW are the following


Rank                $250K+                           HNW
 1     Bloomberg Television            Bloomberg Television
 2     GOLF (The Golf Channel)         GOLF (The Golf Channel)
 3     CSTV (College Sports TV)        MSNBC
 4     BBC America                     CNBC
 5     CNBC                            BBC America
 6     HLN (Headline News)             CSTV (College Sports TV)
 7     MSNBC                           FOXNC (Fox News Channel)
 8     Science Channel                 CNN
 9     Style Network                   HLN (Headline News)
 10    Biography Channel               The Weather Channel




                                  - 41 -
                             The Affluent (continued)
The Affluent still read publications and can be reached by them
                                        Tot al
                                      A f f luent   $250K +   HNW
      A v erage-Issue A udienc e of
      Selec t ed Public at ions           %           %        %
        People                            17          20      17
        House & Garden                    12          13      14
        National Geographic               12          15      16
        Sports Illustrated                11          13      11
        Newsweek                          10          16      15
        Time                              10          16      16
        Southern Living                   10          11      12
        USA TODAY                          9          15      15
        Cooking Light                      8          10      10
        Money                              7          11      13
        Travel + Leisure                   7          13      12
        Martha Stewart Living              6           7       8
        House Beautiful                    6           8       8
        The Wall Street Journal            6          19      18




                                        - 42 -
              The Affluent (continued)
The publications with the highest concentrations
of $250K+ and HNW in rank order are the following


Rank                  $250K+                                  HNW
 1     Departures                             Departures
 2     Private Clubs                          Barron's
 3     Robb Report                            Private Clubs
 4     Harvard Business Review                The New Yorker
 5     Barron's                               The Wall Street Journal
 6     ABA Journal                            Golf For Women
 7     The Economist                          New York Magazine
 8     New York Magazine                      The New York Times (Sunday)
 9     Financial Times                        The New York Times (weekdays)
 10    W                                      The Economist
 11    Architectural Digest                   Links Magazine
 12    Veranda                                Robb Report
 13    Condé Nast Traveler                    W
 14    The Wall Street Journal                Condé Nast Traveler
 15    The New York Times (Sunday)            BusinessWeek




                                     - 43 -
                     The Affluent (continued)
           As has been demonstrated, there are two ways of
     segmenting and targeting the luxury market—income and wealth.

$250K+: 2,245,000



                             Both: 867,000


                                                        HNW: 2,600,000




                                       - 44 -
Questions about the 2007 Survey




               - 45 -
The 2008 Affluent Survey




            - 46 -
          The 2008 Affluent Survey

•   Will again measure "affluent" households across America — the top
    quintile in 2008 ($100K+ in 2008 compared to $85K+in 2007).

•   Will collect data by mail using a 20-page questionnaire in 2008 that will
    cover a number of new topics (compared to the 16-page questionnaire
    in 2007).

•   Will add digital media brand audience metrics in 2008 (those URLs
    accessed by mobile phones and/or PCs) using a single source survey
    methodology.

•   Will obtain details on usage of web-enabled mobile phones and PC’s in
    2008.




                                     - 47 -
          The 2008 Affluent Survey
                                (Continued)




•   Will use “enhanced” category expenditure, investment and savings,
    real estate, and personal/household income scales in 2008.

•   Will add a substantial number of category topics and expenditures in
    2008.

•   Will add use of video games (web and console-based) in 2008.

•   Will add writing and reading blogs in 2008.

•   Will add viewing of broadcast networks in 2008.

•   Will add listening to satellite radio in 2008.

•   Will add upscale stores shopped in 2008.


                                      - 48 -
              The 2008 Affluent Survey
                                    (Continued)




•   “Enhanced” category expenditure scales will increase from a high of $7,500+ to
    $15,000+.

•   “Enhanced” investment and savings scales will increase from a high of $2
    Million+ to $3 Million+.

•   “Enhanced” real estate scales will increase from a high of $1 Million+ to $3
    Million+.

•   “Enhanced” personal income scale will increase from a high of $200K+ to
    $500K+.

•   “Enhanced” household income scale will increase from a high of $1 Million+ to
    $4 Million+.



                                          - 49 -
Questions about the 2008 Survey




               - 50 -

								
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