Acxiom Study Reveals Insights for Squeezing Extra Mileage from “Cash for Clunkers” Program
August 03 2009 - 3:25PM
Business Wire
The success of the government-funded CARS program points to a
tremendous opportunity for auto dealers with insights on the
estimated 4 million-plus1 households eligible for the Car Allowance
Rebate System – insights made available today in the latest
Automotive Consumer Dynamics study from Acxiom® Corporation
(Nasdaq: ACXM).
The quick reaction to CARS, commonly referred to as “Cash for
Clunkers,” surprised Congress when in its first week buyers grabbed
nearly all of the $1 billion that Congress originally appropriated
for the program, causing it to consider adding another $2 billion
infusion. The program allows consumers to trade in late-model
vehicles that get less than 18 miles per gallon for new, more
fuel-efficient cars or trucks and get $3,500 or $4,500 in
incentives toward their purchase.
“CARS is proving to be a tremendous shot in the arm for the
automotive industry,” said Tim Longnecker, automotive industry
executive for Acxiom. “Even when the program’s funding is
exhausted, there will still be a tremendous benefit for automotive
marketers to identify and capture eligible buyers for follow-up
with marketing and incentive programs.”
Acxiom’s Automotive Consumer Dynamics study gives manufacturers
and dealers insight into which consumers are eligible and which of
those are most likely to respond to the program – or similar
incentives should government funding run out.
Key findings from Acxiom’s study include:
- Consumers with the highest index
of clunkers prefer minivans and pickups.
- Two consumer groups that have
the next highest index score for clunkers show no particular new
vehicle propensities, leaving a wide-open field for marketing.
- One large group of consumers
with potential trade-ins has a strong preference for Korean-made
vehicles.
- Thousands of consumers who “come
late to the party” can still be good prospects for new car sales
after the federal money is depleted.
- Least inclined to act are the
wealthiest, because most of their vehicles don’t qualify, and the
poorest, who can’t afford a new vehicle.
Additional details define geodemographic segments, lifestyle
attitudes and current vehicle ownership for potential CARS
participants.
The “Cash for Clunkers” program promises to stimulate a market
long overdue for increased sales. Although CARS is expected to
result in the sale of 250,000 new vehicles, a much larger impact on
sales could result as marketers gain insight into the audiences to
which CARS appeals.
“The key is to know where these consumers can be found and what
will motivate them to act,” said Longnecker. “Those dealers and
manufacturers who take advantage of the insights in this study will
be much better positioned to win in the longer-term battle for
market share.”
Acxiom’s Automotive Consumer Dynamics is the industry’s first
comprehensive, consumer-centric view of the U.S. automotive market.
Developed from the world’s largest repository of up-to-date
consumer intelligence, InfoBase-X®, and Acxiom’s industry-leading
PersonicX® life-stage segmentation system, the study applies
sophisticated modeling and analysis to deliver a powerful
combination of hindsight, insight and foresight that spans more
than 200 million U.S. consumers representing more than 128 million
households and more than 40 million vehicle purchase/trade-in
transactions.
For a copy of Acxiom’s latest study, please go to
www.acxiom.com/automotiveconsumerdynamics. For more information on
Acxiom products and services, call 1-888-3ACXIOM or visit
www.acxiom.com.
About Acxiom
A global leader in interactive marketing services and
infrastructure management, Acxiom connects clients with their
customers through deep customer 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. Our secure, high-performance technology services deliver
consistent value and reliability. Founded in 1969, Acxiom is
headquartered in Little Rock, Arkansas, and serves clients around
the world from locations in the United States, Europe and
Asia-Pacific. For more information about Acxiom, visit
www.acxiom.com.
Acxiom, PersonicX and InfoBase-X are registered trademarks of
Acxiom Corporation.
1 HH counts based on vehicle MMY data made available via
cars.gov as of July 23, 2009
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