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Peter Atwater on Consumers’ Decision-Making Process

Masters in Business

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The Impact of Luxury Items and Indicators on the Economy

People often criticize me for obsessively tracking the prices of luxury items like Rolex watches and Porsches. However, I believe that the behavior of the top one percent has a significant influence on the overall economy. For example, when I observe the success of Carnival Cruise Lines, it indicates the well-being of the upper middle class, as travel requires careful planning and financial commitment. Interestingly, despite widespread negativity in sentiment measures, there has been a surge in boat sales. This contradiction perplexes me, but I believe it may stem from different demographic cohorts. Regardless, it is clear that people are willing to invest significant amounts of money in their hobbies, such as boating.

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