ACXM Acxiom Holdngs (delisted)

As U.S. automakers continue to cut production aggressively amid rising gasoline prices, a weakening economy and a rapid shift in demand away from trucks and SUVs, it�s no surprise that consumers are reconsidering their choices for transportation. However, an Acxiom� Corporation (NASDAQ: ACXM) study today revealed that although the market scrambles to provide a small-car answer to the masses in response to the rising price of fuel, actual vehicle purchase propensities show that not all consumers are ready to trade in their current vehicles for small cars. In fact, Acxiom found that more than 80 percent of consumers who are currently in the market to buy a car are not planning to defer their next purchase. This month�s Acxiom Automotive Consumer Dynamics study focuses on 130 million consumer households that are feeling the lifestyle impact of higher fuel costs and the behaviors that are driving them to down-size (moving into a vehicle segment which requires lifestyle changes), to right-size (moving to a vehicle with better fuel efficiency without sacrificing lifestyle utility), or to wait (deciding not to change vehicles at this time). Top findings include: Americans have reached their �tipping point�: More than 62 percent of consumers with household incomes under $50,000 changed their lifestyle behaviors when fuel hit $3 - $4 per gallon, while fewer than 47 percent of those in the $100,000 household income bracket made changes. Overall, only 13 percent of all consumers stated they would not alter their lifestyles even if fuel reaches between $4 to $5 per gallon. MPG Moved Consumers In June: In June, and for the first time in 2008, �needing better gas mileage� was the number one new-vehicle purchase motivator, jumping over 20% from May and over 41% since March. Lifestyle Changes at All Income Levels: For higher income households, there is a tendency for automotive consumers to �go green� as a status symbol for responsible living. At the low-income levels, consumers� needs are supplanting their wants, as they consider car pooling and various forms of public transportation for their day-to-day commutes, passing over the small car segment entirely. Additionally, deferring auto purchases ranked last of planned lifestyle changes across all income ranges. Short-Term Spending Cuts Equal Long-Term Vehicle Retention: Consumers appear to be making short-term cuts in their discretionary spending; reducing the times they dine out, take vacations or buy clothes to accommodate their transportation and auto purchasing decisions. �It�s undeniable that consumers are making lifestyle adjustments to compensate for the high cost of transportation, but what�s interesting is that far fewer of them are doing anything about their vehicle purchase intentions,� said Acxiom Automotive Executive Tim Longnecker. �This study clearly illustrates that while the perception is that consumers are rushing to buy small cars, the reality is that many consumers are merely right-sizing, not down-sizing, their vehicle choices.� The Right-Sizers Acxiom found right-sizing consumers to be those characterized as Upper Rung City, comprising mostly wealthy people living in major metro areas, or Rich and Retired. They are willing to reconsider their next new vehicle purchase, but they are not yet willing to give up the freedom and versatility they currently enjoy. Their relatively high fuel-price tipping points allow them to do most of what they�ve always done without compromising their lifestyles. For those who are choosing to �go smaller� (e.g., midsize cars, CUVs and high-end small cars), compromising on comfort and features afforded by their current vehicle is not an option. Wide Open Spaces consumers are right-sizing as well, but only out of necessity. Identified as the traditional pickup consumer represented by individuals who live in rural areas and/or use a pickup primarily for its utility function, they are some of those hardest hit by high fuel prices since they travel long distances for both work and play. However, they also are among the largest proportion of consumers who need and buy trucks, which is why some in this group are finding CUVs and large cars as viable options. Additionally, Wide Open Spaces consumers increased their affinity for seven of nine compact cars included in the study. The Down-Sizers Acxiom found that Upper Rung Suburban and Married with Children consumers characterized by upper-middle income families who are busy raising and catering to the varying needs of their growing families, have the money to weather most economic storms. However, their endurance is wearing thin. As keepers of the �family taxi� their tipping point is more of a compound equation of cost multiplied by distance. The higher fuel prices go, the more they become prime luxury mid-size or small-car candidates. Similarly, Working for a Living consumers live for the monthly budget figure. It�s no surprise that their fuel-price tipping point was among the lowest of any consumer group, which is why those at the end of their leases are gravitating to the familiar brands or those they perceive as small-car specialists. Willing to Wait Acxiom also found that a number of Americans are in a wait-and-see mode rather than one of down-sizing or right-sizing. This group includes the Urban Marrieds, characterized by consumers with dual incomes ranging from middle to middle-upper, most of whom are married without children and enjoy spending money on their busy lifestyles. They have shorter distances to drive are more willing to take a wait and see approach to down-sizing. Despite the high percentage of consumers who said they were changing their driving habits, Acxiom found that compact cars still under-indexed or indexed neutral among Upper Rung City, Married with Children and Wide Open Spaces consumers. When specific nameplates enter the picture, no clear winners emerged. Only one vehicle, Mazda3, over-indexed for Upper Rung City, while only two vehicles, Dodge Caliber and Chevrolet Cobalt, over-indexed for Wide Open Spaces consumers. No vehicle over-indexed in either 2007 or 2008 for Married with Children consumers. �While increasing small-car production is in the strategic plans of many automotive manufacturers, it is clear that consumers are making lifestyle choices and purchase decisions far more complex than simply a rush to small,� Longnecker said. �The silver lining for manufacturers and marketers is that they don�t have to wait for retooling efforts to reach their target consumers.� This is the fifth in an ongoing series of monthly consumer-centric studies of the North American automotive industry entitled Automotive Consumer Dynamics. To download a copy of the study, or to subscribe to receive future editions, please visit www.acxiom.com/automotive (no registration required). Automotive Consumer Dynamics is powered by Acxiom�s InfoBase-X�, the largest, most accurate, comprehensive and multi-sourced data collection of U.S. consumer information in one source. PersonicX� is Acxiom�s household-level segmentation suite that places U.S. households into one of 70 distinct segments and 21 life-stage groups based upon specific consumer behavior and demographic characteristics. About Automotive Consumer Dynamics Automotive Consumer Dynamics differs from other studies and analyses available to the industry in that it focuses on all U.S. consumers versus a sample, is prospective (what specific vehicles consumers intend to purchase next) versus historical (what aggregate consumers purchased last), and the findings are immediately actionable by automotive marketers because they pertain to specific individuals and households of interest. Automotive Consumer Dynamics categorizes all U.S. automotive consumers into 10 consumer groups by combining the attitudes, behaviors, intentions, and current vehicle ownership of vehicle buyers across the country. The study offers predictive, timely information that can improve automotive marketing effectiveness and overall business performance dramatically through more timely and targeted communications to key prospects. About Acxiom The global leader in interactive marketing services, Acxiom connects clients with their customers through deep consumer insight, powering effective and profitable marketing initiatives and business decisions. Our consultative approach spans multiple industries and incorporates decades of experience in consumer data and analytics, information technology, data integration, and consulting solutions for effective marketing across digital, Internet, email, mobile and direct mail channels. Founded in 1969, Acxiom 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. Automotive The world�s leading automakers, distributors, retail groups, financial institutions and other companies within the global automotive industry rely on Acxiom to provide an unparalleled combination of consumer insights, digital solutions, multi-channel marketing expertise, analytics and technology, to empower them to become more consumer-centric and faster-to-market. Delivered with an integrated consultative approach, we provide superior business value and ROI for our clients worldwide. Acxiom is a registered trademark of Acxiom Corporation.