Acxiom(R) PersonicX(R) Consumer Dynamics Study Finds Even During Housing Slump, Some Homeowners Still Investing in Remodeling Pr
18 July 2008 - 1:30AM
Business Wire
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, Acxiom�s 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.
�They�re 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 family�s 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 Acxiom�s
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 Acxiom�s
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.
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