Acxiom(R) PersonicX(R) Consumer Dynamics Study Finds Even During Housing Slump, Some Homeowners Still Investing in Remodeling Projects

2008-07-17 10:30:00

Consumer Researchers Find Trends in Home Remodeling Purchase

Decisions Using PersonicX Segmentation Analysis of U.S. Consumers

LITTLE ROCK, Ark.–(EMWNews)–While the housing market may be slowing, millions of Americans are still

investing in their homes with remodeling projects, and three types of

homeowners show definite patterns in their home improvement spending.

In its second PersonicX®

Consumer Dynamics study, Acxiom®

Corporation (Nasdaq:ACXM) researchers identified three groups of

homeowners who were more likely to undertake remodeling projects in a

slumping economy: Starter Homes, Settled In and In for the Long Haul.

The researchers discerned these segments by identifying PersonicX

clusters and pairing them with length of residence.

The good news here,

said Louis Rolleigh, product leader of PersonicX, Acxioms

consumer segmentation suite, is that all

three target groups consist of married homeowners in upper income

brackets a segment of the population that

has resisted the negative downturn in the economy, at least when it

comes to home improvement.

The Leading Indicator for Remodeling Activity (LIRA) showed falling

consumer confidence and a weak economy as growth inhibitors for home

improvement purchases. Its April 2008 report predicted that homeowner

spending for remodeling will continue to decline, falling by an annual

rate of 4.8 percent through the end of the year.

But all the groups we identified are more

than twice as likely as the rest of the population to spend money

at least $7,500 per year on home

improvements, Rolleigh said. He also noted

that all three groups reside predominantly in suburbs and towns and have

net worth listings that indicate a range of assets not limited to their

homes.

These results are exciting,

Rolleigh said. We have identified 13 percent

of the U.S. population almost 17 million

households who are consumers still willing

and ready to spend money on their homes.

The first group, Starter Homes, comprise those more likely to have been

in their homes for fewer than five years. These consumers are usually

between 30 and 45 years old, and if they have children, they had them

relatively later in life so that their kids are in preschool or younger

though many are still childless. This group of remodelers is well

educated, and they participate in a variety of sports and attend college

and professional sporting events as well as enjoying outings such as to

the local zoo.

Those in the Starter Homes group tend to

focus on quick turn-around projects that provide upsell potential to

their homes, Rolleigh said. He said

PersonicX researchers found that these remodelers tend to spend their

money on cosmetic changes like replacing dated light fixtures, updating

faucets and installing new kitchen cabinets.

Theyre ready to

spend money when the return is evident,

Rolleigh said.

Settled In, the second group identified by consumer researchers, are

those who are more likely to have been in their homes six to 14 years

and are slightly older than Starter Homes, from 36 to 55 years old. They

often have children (teens or preteens) and are involved with their

activities. They too enjoy sports, exercise regularly and are Internet

junkies.

Rolleigh said households in this segment are ready to tackle larger,

more complex projects, making upgrades to their homes for more comfort

and accommodation of their familys

lifestyle. They are more likely to install a hardwood or ceramic floor

or remodel a bedroom, or even take on a bigger kitchen remodeling

project.

And those in the In for the Long Haul segment are more likely to be

rolling up their sleeves to take on the more expensive maintenance

projects required as a home ages, replacing gutters or roofing and

tackling concrete or masonry projects. They also may take on

improvements to the interior of the home.

Those in the Long Haul group are more likely to have been in their homes

for 15 years or more and are 46 to 65 years old. These homeowners are

savvy investors, enjoy boating and gardening, and participate in

business and civic clubs.

For this PersonicX Consumer Dynamics study, Acxiom researchers used

PersonicX consumer segmentation data along with syndicated survey data

from Mediamark Research and Intelligence, LLC, to take a closer look at

remodeling and the consumer. The data for this study dates from 2005 to

2007, during which housing sales were beginning to slow.

The PersonicX Consumer Dynamics studies

demonstrate the power of using sophisticated segmentation models to

provide targeted marketing solutions, said

Rolleigh.

The PersonicX suite includes PersonicX Classic, a household-level

consumer segmentation system with 70 categories or clusters that roll to

21 life-stage groups, which was used for this study to identify consumer

segments looking at their homes with remodeling in mind.

About Acxiom

A global leader in interactive marketing services, Acxiom provides

clients with the deep consumer insight they need for effective and

profitable business decisions and direct-to consumer marketing

initiatives. Our consultative approach spans multiple industries and

incorporates decades of experience in consumer data and analytics,

information technology, data integration, and consulting solutions for

marketing across digital, Internet, email, mobile and direct mail

channels. Founded in 1969, Acxiom (Nasdaq: ACXM) is headquartered in

Little Rock, Ark., and serves clients around the world from locations in

the United States, Europe, and the Asia-Pacific. For more information

about Acxiom, visit www.acxiom.com.

About PersonicX Consumer Dynamics

PersonicX Consumer Dynamics is a periodic study of how Americans live

their lives and demonstrate their values through consumer behavior.

These studies differ from other studies and analysis available in that

they focus on all U.S. consumers versus a sample and the findings are

addressable to specific individuals and households of interest.

PersonicX Consumer Dynamics studies are powered by Acxioms

PersonicX, a household-level segmentation and visualization suite

that uses analytical and mapping tools as well as multiple segmentations

to place U.S. households into distinct segments and groupings based upon

specific consumer behavior and demographic characteristics. The

PersonicX segmentations are driven by Acxioms

InfoBase-X, the largest, most

accurate, comprehensive and multi-sourced data collection of U.S.

consumer information in one source.

Acxiom, PersonicX and InfoBase-X are registered trademarks of Acxiom

Corporation.

Acxiom Public Relations
Stacey M. Jones, APR, 501-252-2249
stacey.jones@acxiom.com
GACXM

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