Consumer Researchers Find Trends in Home Remodeling Purchase
Decisions Using PersonicX Segmentation Analysis of U.S. Consumers
LITTLE ROCK, Ark.–(EMWPresswire)–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
“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,”
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
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
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
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.
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
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