PRESS RELEASE

CONTACT: Pam Danziger, 717-336-1600

Internet is top media choice for the luxury market
Luxury consumers say Internet is media with most influence in purchase decisions

Stevens, PA March 31, 2003—The Internet holds the key for luxury brand marketers, according to a new survey of affluent consumers by Unity Marketing (www.unitymarketingonline.com), which concludes that the Internet has the most influence on luxury purchasing decision-making.

Based on the survey, the jury is still out on the effectiveness of image ads, as luxury brand and/or company reputation influenced 82 percent in their last luxury purchase. "But there are many tools beyond image ads that consumers use to establish a brand in their mind," said luxury market consultant Pam Danziger, president, Unity Marketing. Running a close second to product brand is store or dealer reputation/brand, named by 79 percent. The recommendation of friends (word-of-mouth) is next (60 percent), then salesman's information (51 percent).

How can luxury companies tap the marketing power of the Internet? "Branding, building a brand, communicating its values, and using the brand as a conduit to connect with customers will continue to grow as the pivotal axis on which effective marketing is based," noted Danziger. "Using the brand to connect with consumers is about creating a dialogue, involving them with the brand and making them active participants with our brands."

Today luxury marketer's websites must become the central hub of two-way communications with customers. "Websites must become the platform for all branding and marketing communications. But marketers waste the power of the Internet and minimize the effectiveness of their websites if they simply transfer traditional marketing communications from print or TV to the web. We should start all marketing and branding communications on the web first, using all the tools, facilities and capabilities of 21st century computer networks, then transfer that to traditional media as needed," added Danziger.

Danzgier recommends the use creative meta-tagging to lead customers from search engines to websites. "Websites must include all the data required to give consumers the tools they need to make an informed purchase decision. Luxury marketers, in particular, need to actively pursue a dialogue with consumers, inviting them to communicate with us, making sure someone with marketing authority responds in real-time to their incredibly valuable consumer input. Companies that are truly connecting with consumers online include eBay, Amazon and the two leading cable home shopping networks, QVC and HSN," reports Danziger.

Every point of contact between the luxury brand and the consumer must be reconfigured for two-way communication. New methods of communications must be established between and among the luxury brand's customers, retailers, distribution partners and the company. "The challenge becomes connecting why the consumer buys with how to reach them and where to reach them, while providing means and opportunity for the consumer to connect back to the brand. The Internet is tailor-made to do this," concluded Danziger.

About Unity Marketing
Founded in 1992, Unity Marketing (www.unitymarketingonline.com) is a marketing research and consulting firm that specializes in consumer insights for luxury marketers. Using its proprietary "why people buy" strategy, Pam Danziger, company founder and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002), uncovers the motivations, desires and emotional needs that drive consumers to buy. Unity also publishes market research studies on the luxury market, art, jewelry, gifts and collectibles, home furnishings, cosmetics and personal care markets, as well as the Luxury Business newsletter (http://www.unitymarketingonline.com/newsletters/). Pam is currently working on her next book, Let Them Eat Cake: Marketing Luxury to the Masses (as well as the Classes), to be published early in 2004.