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Wednesday, December 10, 2008

ACRON model of segmentation in America

ACORN, acronym for A Classification Of Residential Neighborhoods, is the first lifestyle segmentation system using multivariate analysis to accurately predict customer lifestyle and behaviors. Understanding the demographic characteristics, lifestyle, behaviors and buying patterns of your prospects is an invaluable tool to maximize your profits.

ACORN is a neighborhood segmentation analysis which allows you to understand markets and enables profit from them. It consists of a Site Location Analysis, Sales Planning, Database Analysis, Media Planning, Direct Mail, and New Product Lines. An ACORN classification accurately predicts buying trends, media types and content preferences, promotional partnerships, and other essential marketing strategies. It is probably the most respected lifestyle clustering system in English-speaking countries.

The following are the individual classification titles and descriptions:

Group 1: Affluent Families

Consumer Type 1A: Top One Percent

Demographic: “Top One Percent” households are usually older married couples in their peak earning years. Almost half are between the ages of 35 and 64 years; their median age is 43.0 years. Most are empty nesters, although many have older children attending college. This predominantly white segment also has an above-average percentage of Asians and Pacific Islanders.

Consumer Type 1B: Wealthy Seaboard Suburbs

Demographic: These older, married couples have no younger children, but a disproportionate share of their adult children still live at home: they’re empty-nester wannabes. Their median age is 40.6 years. The proportion of householders between 45 and 64 is over 30 percent higher than the national average. This population is predominantly white but has an above-average percentage of Asians and Pacific Islanders.

Consumer Type 1C: Upper Income Empty Nesters

Demographic: They are usually empty nesters: married couples with no children living at home. They also are predominantly white and middle-aged. Almost 50 percent of the householders are between the ages of 45 and 64; their median age is 42.4 years.

Consumer Type 1D: Successful Suburbanites

Demographic: This family market has an average household size of 3.1 persons, 19 percent above the national average. They are between the ages of 35 and 54 years, with school-aged children. Their median age is 37.1 years, slightly higher than the U.S. value of 35.5 years. The population is predominantly white, but Asians and Pacific Islanders comprise a disproportionate share of almost 8 percent.

Consumer Type 1E: Prosperous Baby Boomers

Demographic: The age profile of this market is singular: baby boomers who were born between 1949 and 1964 with young, primarily preschool and grade school age children; over 40 percent greater than the national average. Nearly 20 percent of the population is under 10 years of age as compared with less than 15 percent of the U.S. population. Typical of their generation, these families are very mobile. Over 35 percent of the population have moved in the past 5 years, double the national mobility rates.

Consumer Type 1F: Semirural Lifestyles

Demographic: Married couples aged 35 to 54 years with and without children living at home dominate this market. The median age is 36.8 years as compared to 35.5 years for the U.S. About 35 percent of the households are empty nesters; 40 percent have school-age children living at home. Over 92 percent of this population are white.

Group 2: Upscale Households

Consumer Type 2A: Urban Professional Couples

Demographic: With a median age of 37.8 years, “Urban Professional Couples” are older than the U.S. overall (35.5 years). They have above-average indexes for each adult age group from 25-29 years and older and below-average indexes for the age group 20-24 years and younger. They are predominantly married-couple families, with few or no children, but the mix also includes single-person and shared households, the results of high divorce rates through the 1980's.

Consumer Type 2B: Baby Boomers with Children

Demographic: Approximately two-thirds of the households are married couples, most with children; over 50 percent more than the national average. Their median age is 31.2 years; more than 35 percent of the population is under the age of 20; 34 percent of the householders are between the ages of 25 and 44 years. Typical of the cohort, many are mobile, still moving to find the best jobs or location.

Consumer Type 2C: Thriving Immigrants

Demographic: Although fewer than 30 percent of the population are foreign-born, 40 percent speak a language other than English at home. “Thriving Immigrants” are immigrants and their children. Most households are families, typically married couples with either very young or adult children. The population is diverse, including Asian and Pacific Islander at 4.5 times higher than the national average and Hispanic origin at three times the national average. The age distribution is slightly younger; the median age is 32.9 years.

Consumer Type 2D: Pacific Heights

Demographic: “Pacific Heights” are predominantly Asians and Pacific Islanders but with nearly 14 percent, there is a significant Hispanic minority. Almost 35 percent are foreign-born and half speak a language other than English at home. The segment’s age profile is almost identical to that of the U.S. overall; indexes for all age categories are within 10 percent of their U.S. counterparts. The household distribution parallels the United States - with a slightly higher proportion of adult children living with their parents - 35 percent above the national average.

Consumer Type 2E: Older, Settled Married Couples

Demographic: “Older, Settled Married Couples” are middle-aged married couples who have settled into their neighborhoods and surroundings. Although many households include school age or adult children, their age profile is slightly older, with a median of 37.2 years. The population is predominately white.

Group 3: Up & Coming Singles

Consumer Type 3A: High Rise Renters

Demographic: They are single with a median age of 37.9 years that belies the concentration of younger households. Half are between 20 and 44 years of age, compared with only 37 percent of the U.S. population. Fifty percent of these households are single-person or shared -14 percent. The population includes foreign-born residents, non-Mexican Hispanic, Asian and Pacific Islander.

Consumer Type 3B: Enterprising Young Singles

Demographic: With a median age of 30.1 years, this population is young and mobile. More than three of every five persons are under the age of 35. Approximately half of the households are single-person or single roommates or shared households compared with less than 30 percent of U.S. households.

Group 4: Retirement Styles

Consumer Type 4A: Retirement Communities

Demographic: They are older, but not exclusively elderly. With a median age of 40 years, they are actually the youngest of Retirement Communities. Householders aged 75 years and older represent over 15 percent of the household distribution, but so do householders aged 35-44 years. Single-person households are 35 percent of the total, followed by 27 percent of married couples without children.

Consumer Type 4B: Active Senior Singles

Demographic: This mature market has a median age of 43 years. Nearly 25 percent are aged 65 or older; many are widowed. Single-person households make up over 40 percent of these households. Although younger families live in these neighborhoods, there are few children. With over 85 percent of the population white, this market ranks below average in diversity.

Consumer Type 4C: Prosperous Older Couples

Demographic: Their median age is 43.2 years, but nearly half are 55 years of age or older. Most are married; few have younger children, although some families still have adult children living at home. With its population that is more than 90 percent white, this market lacks diversity.

Consumer Type 4D: Wealthiest Seniors

Demographic: Their median age of 53.5 summarizes the demographic profile of “Wealthiest Seniors”: over half of them are over 50. Over 30 percent are 65 or older, more than twice the national average for this age group. Half are married couples with no children at home, and approximately one fourth are single-person.

Consumer Type 4E: Rural Resort Dwellers

Demographic: “Rural Resort Dwellers” are usually older. Their median age is 41.7 years but they are concentrated in the 45-plus age groups. More than four of ten are aged 45 years and older. Families are predominantly married couples, many recently retired to the area. Over 95 percent of local residents are almost exclusively white.

Consumer Type 4F: Senior Sun Seekers

Demographic: The oldest in the Retirement Styles summary group, more than half of the “Senior Sun Seekers” are 55 years or older. Their median age of 59.2 years is nearly 24 years older than the U.S. median. Over 45 percent are married couples without children, but there is 32 percent of single-person households in this segment.

Group 5: Young Mobile Adults

Consumer Type 5A: Twenty-somethings

Demographic: The median age of “Twentysomethings” is 30 years, 5.5 years younger than the U.S. median. Over 27 percent of residents are in their 20s that is double that of the U.S. percentage. They are mobile and in transition, completing college or starting their careers. Nearly 60 percent live in single-person or shared households compared to 30 percent for the U.S. overall.

Consumer Type 5B: College Campuses

Demographic: Not surprisingly, almost three-fourths of “College Campuses” are college students. Their median age is 21.7 years compared to the U.S. median of 35.5 years. Over 45 percent live in dormitories; the rest, in nearby neighborhoods that are primarily student housing. Forty percent are under the age of 25; 70 percent are living in single-person or shared households.

Consumer Type 5C: Military Proximity

Demographic: This young, mobile population has a median age of 23.6 years. Over 40 percent have recently moved. Half of these households are young couples, many with preschool children, although there are some single-parent families. These racially-mixed neighborhoods are predominantly black and white with an above- average percentage of Asians or Pacific Islanders.

Group 6: City Dwellers

Consumer Type 6A: East Coast Immigrants

Demographic: “East Coast Immigrants” are the new Americans. Almost 40 percent are foreign-born and most speak a language other than English at home. Their demographic profile is a rich mix of ethnic and racial groups and household types such as Hispanic, Asian, and black. Sixty percent are married-couple or single-parent families; forty percent are single-person or shared households. Their median age is 33.8 years, with above-average percentages of younger householders aged 20-34 years.

Consumer Type 6B: Working Class Families

Demographic: “Working Class Families” are approximately 90 percent black and 75 percent family. Although slightly older than people in the U.S. overall, many households have grade-school age children or teenagers. Single-parent households comprise slightly less than one of five households at 18.5 percent compared to one of eleven U.S. households at 9.3 percent. Most are 35 to 74 years old. Their median age is 36.8 years.

Consumer Type 6C: Newly Formed Households

Demographic: These young, newly formed households are characteristic of this market. While their median age is 33.9 years, many of them are between the ages of 20 and 34 years. The mix of household types includes single parents, single-person and shared households, in addition to below national level, but still sizable percentage of married couple households with and without children. Eighty-five percent of this market is white.

Consumer Type 6D: Southwestern Families

Demographic: These families portray the Hispanic culture characteristic of the Southwest. While about 20 percent is foreign-born, most of these families have lived in the U.S. for generations. Most speak Spanish at home. Demographically, “Southwestern Families” are large; the average family size of 3.7 persons is 20 percent higher than the U.S. average. Their median age of 28.4 years reflects their emphasis on children and family.

Consumer Type 6E: West Coast Immigrants

Demographic: “West Coast Immigrants” are young and family-oriented. Almost six of ten households are families with children, either married couples or single parents. Their median age is 24 years compared to the U.S. median of 35.5 years. The average family size is 3.9 persons versus with 3.1 persons per family for the U.S. Eighty percent of the population is Hispanic and speak Spanish at home. Half of the population is immigrants.

Consumer Type 6F: Low Income, Young & Old

Demographic: The “Low Income, Young & Old” are the very young and the elderly, who are supported by a relatively young working-age population. Almost half of the households are single-parent or single-person. Their median age of 31.8 years represents the gap between those under 35 and over 64 years. These racially diverse neighborhoods are also include whites, blacks, Hispanics, and American Indians.

Group 7: Factory & Farm Communities

Consumer Type 7A: Middle America

Demographic: The demographic profile of these communities is similar to that of the U.S. population; they’re just a little older, more family-oriented, and white. Their median age of 36.8 years is slightly older with more householders aged 45-64 and fewer under 35 years. Seventy percent are married couples, compared to 55 percent for the U.S. The distribution of children is similar; the average size is at the U.S. level, 3.1 persons per family.

Consumer Type 7B: Young Frequent Movers

Demographic: Young families dominate in this market. Children are 30 percent of the population, lowering the median age to 33 years. The population is 85 percent Anglo (non-Hispanic white), but also includes blacks, American Indians, and Hispanics. Characteristic of their youth, this group tends to move frequently.

Consumer Type 7C: Rural Industrial Workers

Demographic: Primarily composed of older families with older children, the “Rural Industrial Workers” population is fairly stable. Born and raised in the same state, they are not even inclined to migrate to a different county. Most are married couples with school-aged or adult children living at home. Their median age is 36.6 years. This neighborhood type is mostly white, but also has a disproportionate share of blacks and American Indians.

Consumer Type 7D: Prairie Farmers

Demographic: “Prairie Farmers” are aging and stable as their children mature and move away. Most households are families, married couples with or without children. Few householders are under the age of 35; almost 40 percent are 45 or older. The younger householders have school-age children, which lowers the median age of the population somewhat to 37.7 years. The population is over 95 percent white.

Consumer Type 7E: Small Town Working Families

Demographic: The age and household distributions for “Small Town Working Families” almost parallel the U.S. profile. More grandparents, aged 75 or older, and more families, especially couples with school-age children live in these neighborhoods. Their median age is 36.1 years compared with the U.S. median of 35.5 years. They are predominantly white and born in the U.S.

Consumer Type 7F: Rustbelt Neighborhoods

Demographic: The population of “Rustbelt Neighborhoods” is stable, but aging. Younger people are leaving these areas while the older residents remain. Their median age of 39.6 years belies the large concentration of senior householders. Nearly 20 percent are 65 years or older compared with approximately 14 percent for the overall U.S. These households are also typical of an older population: married couples, some with adult children still living at home, and single-person households.

Consumer Type 7G: Heartland Communities

Demographic: “Heartland Communities” are older, with the median population age of 41 years versus 35.5 years for the overall U.S. Few younger householders or children are in this market. As the population ages, the dependency ratio of those under 15 years and old at ³65 years, to the working age population of 15-64 years is increasing. Households are still predominantly families, but married couples with no children at home and singles are becoming increasingly common in the “Heartland Communities.”

Group 8: Downtown Residents

Consumer Type 8A: Young Immigrant Families

Demographic: These communities of “Young Immigrant Families” are family-oriented and nearly 78 percent are Hispanic. The population is young with a median age of 30.8. Their families are large, with an average family size of 3.4. Over 45 percent of these households are either single-parent or married-couples with children. Those are the similarities; the differences are ethnic, including Puerto Ricans in New York, Cubans in Florida, and other Hispanics in the Southwest. Most of the population was born in the U.S. and most speak Spanish at home.

Consumer Type 8B: Social Security Dependents

Demographic: The profile of the “Social Security Dependents” market is straightforward: elderly, living alone. Their median age is 52.6 years. Nearly half of the householders are 65 years or older; almost 65 percent live alone. Higher proportions of adult children live in these households, possibly caring for their parents. These neighborhoods also incorporate group quarters, institutional and other quarters.

Consumer Type 8C: Distressed Neighborhoods

Demographic: In “Distressed Neighborhoods,” single-parent households outnumber any other household type. Single-person households are second. The population is very young, with a median age of 23.2 years. Over 50 percent are children under 18 years of age. The average family size of 3.5 persons is relatively large. Most residents are black.

Consumer Type 8D: Hard Times

Demographic: “Hard Times” is a population of extremes; the very young and the elderly. The dependency ratio of young (<15>

Consumer Type 8E: Urban Working Families

Demographic: Almost 40 percent of the “Urban Working Families” population is under the age of 20; their median age is 29.4 years. This is a family market with a high percentage of single-parent households. Also, economic necessity forces a significant number of adult children to live at home. Over 80 percent of the population in these neighborhoods are black.

Group 9: Nonresidential Neighborhoods

Consumer Type 9A: Business Districts

Business districts with a residential population of fewer than 100 and a significant daytime business population are included in this segment.

Consumer Type 9B: Institutional Populations

These neighborhoods are home to institutional group quarters, including prisons, juvenile detention homes, and mental hospitals. The residential population is small, except for the institution's staff and employees.

Consumer Type 9C: Unpopulated Areas

These areas are unpopulated and include parks, cemeteries, golf courses, or undeveloped land.

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