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The Rich Prefer To Be Understated, But They're Spending Again

Barry Silverstein reports on two studies that suggest that the rich prefer discreet brand identifiers rather than garish logos. "Subtle Signals of Inconspicuous Consumption" published in the Journal of Consumer Research, suggests that high-end shoppers prefer "distinctive design or detailing."

"Signaling Status with Luxury Goods: The Role of Brand Prominence," which is in the July issue of Journal of Marketing, finds that "luxury brands charge more for 'quieter' items with subtle logo placement and discreet appeal." Joseph Nunes, associate professor of marketing USC's Marshall School of Business and one of the study's authors, says, "A significant segment of the population does not want to be branded, preferring to be understated."

Jason Garcia, writing in the Los Angeles Times, says that there are signs that the "ultra-affluent" are opening up their wallets, particularly at theme parks. And the Disneys and Sea Worlds are ready to embrace them with specially targeted offerings and attractions.

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Walt Disney World Resort began presales of homes inside its exclusive Golden Oak residential development last month. Multi-story mansions will be priced as high as $8 million each. SeaWorld Parks & Entertainment, meanwhile, is expanding Discovery Cove, its limited-admission boutique park where swim-with-dolphin packages start at $199 a person, Garcia writes.

"I think these people didn't spend a lot before not because they couldn't afford to, but because it was not socially acceptable," says Abe Pizam, dean of the University of Central Florida's Rosen College of Hospitality Management. "Now it is not so shameful as it was."

Read the whole story at BrandChannel, Los Angeles Times »

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