Analysis of home furnishings expenditures in the USA during the 1990s

Abstract

The purpose of this study is to provide an updated view of the effects of selected socioeconomic and demographic factors on household expenditures for home furnishings among US households. Using consumer demand theory as the underlying theoretical framework, Tobit analysis was used to estimate expenditure equations for household textiles, floor coverings, and furniture using the 1995 Consumer Expenditure Survey. Although the home furnishings industry grew significantly during the 1980s and 1990s, the results of this study indicate that the socioeconomic and demographic factors underlying home furnishing expenditures have remained fairly stable. However, long‐run trends in the age distribution and ethnic composition of the US population suggest that the young adult market and Hispanic consumers are market segments that could provide greater opportunities for companies in the home furnishings industry. In addition, building on the fashion orientation that has developed in home fashions during the past 20 years may provide further opportunities. Finally, future research could benefit from the inclusion of more dwelling‐specific variables, such as the number of rooms in the household, and whether or not remodeling occurred.

Citation

Norum, P.S., Lee, K. and Sharpe, D.L. (2002), "Analysis of home furnishings expenditures in the USA during the 1990s", Journal of Fashion Marketing and Management, Vol. 6 No. 3, pp. 223-239. https://doi.org/10.1108/13612020210441337