Posted in Marketing and Strategy Terms, Total Reads: 3382
ACORN stands for A Classification of Residential Neighborhoods and is a geo-demographic tool assisting businesses in understanding their target market.
Buying behavior varies from person to person depending on a number of factors such as age, gender, location, financial status etc. For instance, individuals in rural locations have different purchasing behavior than those residing in bustling downtown neighborhoods. ACORN mainly focuses on factors such as population location and other lifestyle variables.
The information gathered by ACORN allows business to concentrate on geographical location specific marketing strategies. By analyzing demographic data, social factors, population and consumer behavior, it provides valuable consumer insight helping organizations to target, acquire and develop profitable customer relationships and improve service delivery.This, in turn, impacts marketing campaigns and other sales & distribution decisions such as where to open the next franchise, which store location to close and more.
For the analysis of various market segments, census data, lifestyle surveys and other demographic statistics are used by the Consolidated Analysis Centers Incorporated (CACI) to categorize the entire population into 56 types of household under 14 groups in 5 categories