Capturing the Imagination of the Home-Improvement Shopper: How to Target Key Homeowner Segments

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1 Co-Funders


This study will uncover consumer segments within the home-improvement market, focused on frequent shoppers of the big-box stores – Home Depot and Lowes. The results will be valuable in immediate branding and marketing efforts for suppliers to the burgeoning DIY market, whose customers shop these stores.

The creation of a typing tool (a question battery and algorithm that can assign respondents to a segment) will allow this research to serve as the foundation of your future targeting and research efforts.

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Project Details



A two-step segmentation combines complex surveys that have two or more attitudinal, behavioral, importance arrays. These cannot be easily combined employing one cluster method. Therefore, two steps, employing two cluster techniques, are used.

Step One
First, factor analyses are performed on each question array using a regression technique. Each respondent receives a factor loading (similar to a correlation coefficient) for each factor. A respondent is placed into the factor where he has the highest loading. From these segments, variables are created. A given respondent has membership in five of the new variables, one for each segment of which he is a member.

Step Two
The next step in the cluster analysis is to link the five-segment solutions. In some cases, this is done using a 'business rule'—that is, a variable that common groups can be linked to.

Another way to link the segments together is to use a K-means cluster analysis. Specifically, Ward’s Procedure, where clusters are generated that minimize the squared Euclidean distance to the center mean. The K-means is performed on segments solution variables from the five segmentations.

In other words, if a given respondent is a member of the same give groups as another respondent, his/her distance is 0. If he is a member of 5 different groups, these groups’ distance is maximized. The analysis creates distances for each respondent based on their step-one memberships and then groups those respondents who are most closely associated.

This technique develops segments that are as different from each other as possible while maintaining the most commonality within the segments.

This approach allows us to use multiple types of questions – psychographics, lifestyle, attitudinal, etc. The questionnaire will be designed to paint a detailed picture of the segments. After the segments are established, the reporting will include profiles of each group highlighting what separates the groups from each other. We will also provide recommendations on reaching each group – effective messaging techniques, specific triggers to push, and future needs for R&D purposes.

We will be providing each co-funder with a typing tool at the end of the study. The tool will include 6-10 questions that can be asked of future respondents to determine their segment membership. These questions, together with the associated algorithm, will allow you to weave the segmentation into all of your future studies (qual and quant).

Pulled from a trusted partner's national sample database.

- Pass industry screening question
- Not a home-improvement, renovation, or construction professional
- Have undertaken a home-improvement project in the past 6 months
-Have visited Lowes and/or Home Depot at least 3 times in the last month

- Own their own home
- Ages 25 to 65
- Household income: $50k+
- Mix of education, race/ethnicity and gender
- Geographically diverse

- The report will be delivered in PPT and will include an Executive Summary, Detailed Findings, Segment Profiles, and Recommendations.
- Co-sponsors receive a typing tool, so that they identify and target their key segment(s) in future research

- The report will be delivered in PPT and will include an Executive Summary, Detailed Findings, Segment Profiles, and Recommendations.
- Co-sponsors receive a typing tool, so that they identify and target their key segment(s) in future research

Name: Alisa Hamilton

Company: Harvest Insights

Previous Projects: 1

Rating: Supplier has not been rated

Alisa has been in the marketing-research industry for 15 years; she most recently managed the research department at CMI. She has supervised many national and International accounts, including Lowes, Pfizer, Kid II, and Pulte Homes, and has worked on numerous CPG projects.

With her extensive qualitative and quantitative experience, Alisa brings a unique perspective to clients, ensuring that both the big picture and the underlying consumer motivations are captured. Alisa enjoys problem solving and thrives on the insight-building process. She is passionate about producing high-quality, client-ready deliverables and loves utilizing her infographic, moderating, and reporting skills to delight her clients.

Alisa’s work has been featured in Quirks and Marketing News. She received her Moderator Training at the Burke Industry and has been a speaker at numerous industry conferences.

Michael D. Lieberman is the Founder of Multivariate Solutions. He has more than 25 years of experience as a researcher and statistician in the marketing and advertising research fields. He has worked extensively with clients in financial services, information technology, food service, telecommunications, financial services, political polling, public relations, and advertising testing fields.

Michael works with an international clientele including advertising agencies, political-strategy groups, and full-service market research companies.

Michael is the author of dozens of professional articles as well as two marketing-research E-books. He has taught at the University of Georgia as an adjunct professor of statistics and market research and currently teaches at the City University of New York.

Each co-sponsor will receive a sub-analysis based on their specific category (e.g., landscaping, tools, décor, etc.).

The first four co-sponsors may include one brand-awareness and one brand-perception question to a subsample of the overall respondents (n=500 each).

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The Pitch

In 2015, the home-renovation and remodeling market was estimated at $326 billion, with home-improvement stores generating revenue of $144 billion the prior year. For years, the home-improvement giants – Home Depot and Lowes – have made renovation projects more accessible to consumers.

This study will uncover the underlying groups of consumers who frequent home-improvement stores. We seek to understand both their rationale for visiting such stores (e.g., ideation, ongoing home maintenance, one-time projects) and their needs, motivations, and attitudes toward home improvement/maintenance.

The segments will be statistically determined, built off a rich battery of questions ranging from psychographics to home-improvement motivations to shopping behaviors. The resulting groups will help suppliers target consumers while they are in-store, resulting in branding, packaging, and messaging that speaks directly to their needs. Special attention will be paid to co-sponsors’ specific categories and any category crossover opportunities.

We believe that the key to a useful segmentation is the resulting group profiles, and we will strive to make these clear and accessible to multiple internal departments – Marketing, R&D, Branding, Communications, etc. We expect roughly 4-7 segments, but the final number will be based on the natural grouping in the results.

To view a video about this study, click:

Ultimately, the results of this study will inform current marketing efforts as well as create a sustainable narrative for future R&D, messaging, and branding projects.

Co-funding price: $13,500.00 Co-fund this project