The great mass market, which helped define American life over the past century and changed us from “citizens” to “consumers,” may be at an end.

The culprit? Rising income inequality, which has left well-off Americans as the only group that’s willing to open its wallets these days. According to the Nielsen Co., which tracks consumer sentiment monthly, the overall willingness of consumers to spend has fallen about 7 percent over the last year.

But among Americans making more than $100,000 a year, the willingness to spend has jumped by 11 percent in just the last six months. Six-figure earners were the only slice of the American demographic more willing to spend money today than a year ago, according to Nielsen’s ConsumerEdge research.

Need more evidence? Same-store sales, an important measure of retail strength, have dropped for eight straight quarters at Wal-Mart. Analysts speculate that its customers are shopping even farther down the retail chain, at dollar stores and cut-rate grocery markets like Aldi.

When even Wal-Mart is too pricey for American shoppers, you know something’s up.

For marketers, the question is whether to devote scarce resources to chasing penny-pinching shoppers, or focus attention on the high-income groups, which have more money but fewer members. The choice to compete on price is a tough one, because someone else can almost always decide to go lower. On the other hand, you might be able to make it up on volume. Henry Ford got rich a century ago by constantly cutting prices on his Model T and selling more of them every year.

Of course, Ford also recognized the other side of the buyer-seller relationship: The buyer has to have money. In 1914, Ford took the revolutionary step of offering his workers $5 a day, more than doubling their pay. With their new affluence, workers could afford to buy the cars they built, and other employers had to match Ford’s wages. (The Five-Dollar Day was also designed to reduce employee turnover, as the grinding monotony of Ford’s new assembly lines was driving away skilled workers.)

I don’t foresee any American employers offering to double their workers’ pay. So it’s likely that the companies poised for the greatest success will be those catering to affluent Americans. Not only will their products sell, they’ll have more leeway to raise prices without driving away bargain-conscious consumers.

It’s a change from America’s 20^th Century perception of itself, nurtured by decades of advertising touting the good life available to all: new home, new car, shiny appliances, the latest gadgets.

When the economy recovers, perhaps the mass market will return in all its glory. But it may be that the Great Recession will spawn a generation of Americans that, like its 1930s forebears, has learned to squeeze a dollar until it hurts.

This is John Reinan’s weekly marketing column for MinnPost.com.

1. Small Steps, Big Changes
   Consumers are beginning to make long-term changes to their lifestyles in a trend that represents realistic and tangible steps, rather than sporadic and short-lived initiatives. From walking to work or getting another hour of sleep for better health to recycling or turning down the thermostat for the environment — sustainable, moderate, consistent and practical are the daily mantras of the Small Steps, Big Changes movement.
2. From Isolation to Affiliation
   After a protracted  housing boom that resulted in suburban sprawl, staggering commutes and isolated neighborhoods, consumers are seeking once again to reconnect with one another. From a resurgence in shared community living models, “the new communes”, to a renewed interest in volunteerism, community gardens, YMCAs and other community centers, neighbors are looking for new (and old) ways to connect with other people.
3. Being Here. Now.
   From multi-tasking and the never-ending pace of work to the technological “tools” that constantly catapult us to another place and time, there is a growing recognition that we are being robbed of the present moment. To escape this preoccupation with either the past or the future, consumers are embracing metaphysics, such as Eckhart Tolle’s “A New Earth” or “The Power of Now”, and are expressing a growing interest in eco-tourism, slow cooking and experiential consumption in an effort to be in the moment.
4. LOHAS 360
   The tipping point of the fusion between personal health and planetary sustainability has arrived. Now more than ever, the distinction between the two paradigms is blurred as consumers include their own personal health as a microcosm and reflection of the health of the planet. Increasingly, consumers’ values are resonating with companies that are able to fuse both a personal and planetary perspective into their brand/company offerings.
5. Clean Sweep
   Consumers are expressing a desire to eliminate anything toxic from their lives and seeking to control things that are within their sphere of influence — their relationships, their lifestyles and their bodies. With increased concern about environmental factors, the phenomenon of detoxification as a way to improve personal health is also growing and manifesting in everything from non-toxic consumer electronics and household cleaning products to spa detox and air filtration systems.
6. Not So Alternative
   From alternative fuels to alternative apparel, choices and options challenging the status quo across industries are being embraced.  With the increased usage of alternative healthcare practices, physicians, insurers, employers, and consumers are embracing a more preventative approach to health.  And as consumers continue to search for solutions to global warming, business and government will accelerate the navigation of environmental sustainability. Will the status quo ever be the same?
7. Root Causes
   Rather than simply evaluating consequences or treating symptoms, consumers are beginning to ask not only “what”  but ”why?” From increased interest in a company’s supply chain — where materials come from and how they’re made — to a recognition that lifestyle, environmental factors, and issues related to vascular inflammation are the fundamental components of aging and disease, consumers are taking a closer and more informed look at the underlying causes of health and sustainability.
8. Beauty Shop
   A new definition of beauty is emerging, reflecting the growing awareness that beauty comes from the inside.  This new appreciation for all things authentic is translating across categories including vintage clothing, classic cars and historic renovations.  For personal beauty, it is reflected in the new status symbol of naturally looking good at any age, without the aid of invasive procedures or plastic surgery.
9. Energy 2.0
   Energy 2.0 reflects our emerging desire to conserve energy on both a personal and planetary level.  Rather than squandering our energy, we realize that our bodies, like the planet, are not an inexhaustible resource.  This planetary health is manifesting itself on topics ranging from climate change to land conservation to renewables.  On a personal level, consumers are demanding consistent and sustained energy for themselves. They are dissatisfied with the high/low spikes, but interested instead in healthier alternatives to caffeine and sugar.
10. Heirlooms
    In all areas of consumption, consumers are choosing to buy less to buy better.  This trend reflects a desire for products with greater meaning, and given the economic downturn, is expected to continue to grow across categories.  Now more than ever, products that reflect a rich or unique brand story are perceived to be more valuable – from an evolving desire for heirloom, artisanal and varietal foods to treasures found on eBay, it reflects our desire for history, for legends, and for legacies. 

The next likemind is 8 a.m. next Friday, July 18, at Espresso Royale, 1229 Hennepin Ave. Anyone reading this blog would probably enjoy the gathering. Things usually start cooking by 8:30 and it breaks up before 10. You can come and go as you please — no need to stay for the full two hours.

It’s probably not that strange since I work in consumer marketing and I am, after all, a consumer.  Furthermore, since we monitor a lot of lifestyle blogs and Web sites, it’s only natural I’d find some things of interest.  However, I was starting to wonder whether I should feel a bit guilty for discovering these things while “on the clock.”

According to a recent Research Brief from the Center for Media Research, I’m not alone.  The new study reveals that “Americans are spending 60 percent of their waking hours at work, more than ever before.  And, marketing chiefs are rethinking their ad budgets and advertisers are preparing to meet a new, highly coveted, yet entirely untapped demographic on their own beige-carpeted turf.”

The survey looks at the unique shopping behavior of consumers during the workday, including the role of online search as a catalyst to retail purchase, grocery shopping, casual and fast food dining preferences, and new media consumption.

At-Work Consumer Media & Shopping Behavior Survey Highlights:

• Word-of-mouth is highly influential on purchases made by at-work consumers, with 95.6% indicating they regularly or occasionally give advice to their peers about products and services, and 92.9% indicating they also seek advice from peers before making purchases.
• Workplace presents the perfect environment to create buzz for product introductions and new store openings. While taking a break from work, 67.8% at-work consumers socialize with co-workers and 42.2% also indicate they communicate with friends and family during the workday.

More on this new study can be found here.