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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