Module 2 – The Economic Power of NEOs
2: Elective Consumption – The NEO Signature
Overview
NEOs are defined by elective consumption—spending driven by emotion, quality, and values rather than necessity. This unpacks how elective consumption shapes their choices and why it matters.
Key Points:
What is Elective Consumption?:
Spending that goes beyond basic needs and focused on brand equity, perceived quality, desire, authenticity, and emotional connection.
This includes spending on wellness, eco-tourism, bespoke services, artisanal goods, and brands that align with NEO values.
Examples of Elective Consumption:
Spending $US2,000 per night per person at Canada’s Clayoquot Wilderness Resort during a major recession.
Choosing Fever Tree tonic water and paying four times more than its basic alternative.
Why It Matters:
Elective consumption drives margins and innovation, raises industry standards, and inspires new market trends.
Activity:
Reflect on a recent example of elective consumption in your life. What drove your decision? How did it make you feel?