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CONSUMER SPENDING DYNAMIX:

2013 SUMMER RELEASE

OVERVIEW

Geoscape's Consumer Spending Dynamix (CSDx) is a comprehensive data resource with forecasts of

expenditures made by households across the country. CSDx contains expenditure estimates for products

and services in more than a dozen main categories (covered by over 470 individual variables) for each of

five race and ethnicity groups. These estimates, useful for measuring market potential as well as other

tasks, are projected into standard units of geography (geo-units) ranging from the micro-level to the

macro-level: block group, census tract, ZIP Code, county, metro area, DMA, state, and nation. For every

geo-unit, CSDx provides three types of estimates: aggregate spending by all households, average

spending per household, and a comparison of average household spending with average household

spending on a national level, for all variables by race and ethnicity.

DETAILS

The structure of CSDx allows for a wide variety of perspectives and considerable versatility during

analysis. For any CSDx variable, the selection of a subpopulation (specific race or ethnicity) and a type of

estimate (aggregate, average, or index) will specify one of 15 configurations. Each of these 15

configurations is available in every geo-unit.

The subpopulations are:

All (all races and ethnicities)

Asian (and Pacific Islander)

Black (or African American)

Hispanic

White

And, the three types of estimates are defined as:

Aggregate Annual Spending by Households in Geo-unit

Average Annual Spending per Household in Geo-unit

Index of Average Spending per Household in Geo-unit compared to Average Spending per

Household Nationally (with national averages based upon the selected subpopulation)

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The definitions for the estimators are:

Aggregate household expenditures represent the sum of annual outlays for particular goods or

services by every household within a chosen subpopulation in a specific unit of geography.

Aggregate expenditures are always less than or equal to expenditures by all persons since the

latter includes persons not living in households, e.g. persons living in school or military

dormitories, correctional facilities, nursing homes, etc.

Average household expenditures represent average, annual spending for particular goods or

services per household within a chosen subpopulation in a specific unit of geography. Since the

average includes every household within a subpopulation, these average expenditures are almost

always lower than the average expenditures of just those households who purchased those

goods and services. The more noticeable categories in this regard include common but

infrequently purchased goods and services, such as major appliances, as well as uncommon but

frequently purchased goods and services, such as tobacco.

Indices represent the following ratio multiplied by 100: average household expenditures as

defined above divided by national average household expenditures for those same goods or

services by households within the chosen subpopulation at the national level. An index score of

100 indicates that the local household average is the same as the national household average,

whereas, indices of 50 or 200 indicate that the local average is half or twice the national average,

respectively.

This results in approximately 7000 combinations of variable, subpopulation, and type of estimate being

available for each geo-unit.

The majority of CSDx variables form a strict hierarchy. The total-expenditures variable (Total), which

represents the entirety of a household’s expenditures, serves as the base or first level of the hierarchy.

Connected directly to the base of the hierarchy are 14 main categories: Alcoholic Beverages, Apparel,

Cash Contributions, Education, Entertainment, Food, Health, Housing, Miscellaneous, Personal care,

Personal Insurance and Pensions, Reading, Tobacco, and Transportation. The 14 main categories have

the following characteristics:

1) Any variable within one of the categories is exclusive to that category, i.e. neither the variable

itself nor any of the components used to make the variable are found in another category;

2) For aggregate and average estimates, the sum of the 14 variables representing the categories

themselves is equal to Total; in other words, the aggregate (or average) Total within any

particular geo-unit is equal to the sum of aggregate (or average) values in each of the 14 main

categories.

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These characteristics are shared by categories and variables throughout each level of the variable

hierarchy. For example, the food category (level 2), represented by the variable Food, has two level-3

categories connected to it: food at home and food away from home, represented by Food_Home and

Food_Away, respectively. None of the variables under the food at home category can be found under the

food away from home category, and vice versa. In addition, for the aggregate or average estimates of any

particular subpopulation within a geo-unit: Food = Food_Home + Food_Away.

There are three additional, main categories (trips, gifts, and retail/non-retail), which are considered to be

summary expenditures and not part of the main variable hierarchy. The variables in these categories are

comprised of combinations of variables found within the other categories and, therefore, these three

categories overlap with 14 main categories. Note that within each of these three categories, the

aforementioned characteristics of the variable hierarchy hold.

DATA CHARACTERISTICS

Consumer Spending Dynamix includes household expenditures, which accounts for about 99% of

consumer spending in the United States. The remaining 1% is consumer spending by people living in

group quarters, such as, dormitories, barracks, assisted living facilities, correctional facilities, and the

homeless.

Average household consumer spending is calculated by aggregating all spending for a product category

and dividing by all households within the geo-unit (both households that made the type of purchase and

those household that did not purchase the product). For products and services that are purchased by a

low portion of households, the average expenditure may be much lower than cost for a single unit of the

product. For example, relatively few households purchase a major home appliance, which typically cost

between a few hundred dollars to a few thousand dollars; this produces a national average of $180.10 for

major appliances.

Household consumer spending indices are based on the national average for the total or ethnic

subpopulation. For example, the formula for the state food index is (state level average food $) / (national

average food $)*100; "100" indicated the average annual expenditure is equal to the national average,

"50" indicates half the national average, and "200" is twice the national average. National indices are

computed within the total/race/ethnicity group; that is, the Black food index uses the national average

Black household food expenditure.

Each new release of CSDx includes the latest available trends for employment, wages and income,

housing, product purchasing, and cost of products and services. As well as year-to-year fluctuations in

the economy and updated benchmarking of demographic data, which includes revising past years

estimates.

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DEVELOPMENT

Geoscape developed the CSDx data by applying advanced statistical modeling, novel data preparation

techniques, and consumer price indices to survey research data and combined with the latest geo-

demographics. The consumer price indices and survey research data are sourced from the US

Department of Labor, Bureau of Labor Statistics (BLS).

The Consumer Expenditure Survey (CEX) data are gathered through two types of survey instruments. On

a quarterly basis, interview questionnaires are used to track relatively large expenditures including

durable goods, property, vehicles, and other infrequently purchased items and services; on a weekly

basis, diaries are used to track consumables and other frequently purchased items and services.

Each year, approximately 14,000 consumer units (nearly all are households) complete up to five interview

questionnaires (one per quarter) and approximately 7,200 consumer units complete up to two diaries (one

per week). The CSDx development process uses three years of CEX data with consumer price indices in

order to adjust for inflation, avoid confounding factors due to seasonal variations, and capture major

trends in spending. Geo-demographics are from Geoscape's American Marketscape DataStream and the

US Census Bureau.

A List of Variables and Descriptions is included in the next pages

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VARIABLES AND DESCRIPTIONS

The variables described below are included within CSDx. Many of these variables, especially those in the Food,

Housing, Apparel, and Transportation categories, are partitioned into further levels of smaller and more precise

subcategories.

TOTAL HOUSEHOLD EXPENDITURES

Total: a single variable comprised of household expenditures in all 14 main categories of goods and services (Alcoholic

Beverages, Apparel, Cash Contributions, Education, Entertainment, Food, Health, Housing, Miscellaneous, Personal

Care, Personal Insurance and Pensions, Reading, Tobacco, and Transportation).

ALCOHOLIC BEVERAGES Alcoholic Beverages away from Home

Beer

Wine

Whiskey

Alcoholic beverages consumed during trips

Alcoholic Beverages at Home

Beer

Wine

Whiskey and other liquors

APPAREL

Footwear

Men’s

Boys’

Women’s

Girls’

Children under 2: includes jackets, outerwear, sleepwear, accessories, etc.

Men and boys: includes suits, jackets, underwear, pants, shirts, sportswear, accessories, etc.

Boys, 2 to 15

Men, 16 and over

Women and girls: includes dresses, jackets, underwear, pants, shirts, sportswear, accessories, etc.

Girls, 2 to 15

Women, 16 and over

Other products and services: includes purchases, rental, repair, and storage

Sewing materials

Watches

Jewelry

Apparel services

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CASH CONTRIBUTIONS

Alimony and child support

Charities and other organizations

Support for college students

Educational institutions and political organizations

Churches and religious organizations

Stock, bonds, mutual funds, and other cash gifts

EDUCATION

College

Supplies

Tuition

Elementary and high schools

Supplies

Tuition

Other educational expenses

Miscellaneous expenses

Other school supplies

Tuition for vocational, technical, or other schools

ENTERTAINMENT

Audio-visual equipment and services: includes rentals, repairs, and services

Audio equipment

Televisions

Video-disc players

Online entertainment and games

Video and computer, hardware and software

Prerecorded and recording media

Musical instruments

Cable and satellite services

Fees and Admissions

Movies

Clubs

Sporting events

Participant sports

Lessons

Pets, toys, and playground equipment

Pet expenses such as purchase of pet, food, supplies, veterinarian and other pet services

Toys, games, arts and crafts, and tricycles

Other equipment and hobbies such as playground equipment

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Other entertainment supplies, equipment, and services: includes purchases, repairs, and fees

Recreational vehicles such as boats, campers, and motorhomes

Sports and outdoor equipment

Photography equipment and services

Live entertainment

FOOD

Food away from home

At restaurants (fast, full, other location)

Food at home

Cereals and bakery

Dairy

Fruits and vegetables

Meat and eggs

Other foods such as sweets, snacks, and non-alcoholic beverages

HEALTH

Medications and vitamins

Prescription drugs

Over-the-counter drugs

Vitamins

Health insurance

Commercial insurance by type

BCBS by type

HMOs

Medicare such as payments, prescription premiums, and supplements

Long-term care

Medical services

Medical

Dental

Eye care

Laboratory and x-ray

Hospital

Other medical professionals

Medical supplies

Glasses and contact lenses

Hearing aids

Other medical equipment

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HOUSING

Furnishings and equipment

Textiles such as linens, curtains, and slipcovers

Furniture

Floor coverings such as carpet and rugs

Major appliances

Housewares such as flatware, glassware, small appliances, and cooking utensils

Miscellaneous items such as window coverings, patio and other outdoor equipment, lamps, clocks, hand and power

tools, indoor plants, and computer hardware and software

Housekeeping

Laundry supplies

Postage and stationery

Other cleaning supplies

Operations

Personal services such as babysitting and care of the elderly

Household operations such as housekeeping services, lawn and garden services and supplies, pest control and security

equipment and services

Shelter: includes mortgage interest and fees, property tax, insurance, and maintenance

Owned dwellings

Rented dwellings

Other shelter such as vacation homes, at school, or during trips

Utilities

Natural gas

Electricity

Other fuels for dwellings

Telephone equipment and services

Public services such as water, sewage, and trash collection

MISCELLANEOUS

Accounting costs

Banking and checking fees

Finance cost

Funeral expenses

Legal fees

Lottery losses

Miscellaneous personal services

Occupational expenses

Safe deposit box rental

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PERSONAL CARE

Electrical appliances

Products such as hair care, oral hygiene, shaving, cosmetics, and other products

Services for men and women

PERSONAL INSURANCE AND PENSIONS

Personal insurance such as life and other non-health insurances

Pension deductions such a retirement accounts and Social Security

READING

Books: includes general retail and book clubs

Non-subscription newspapers and magazines

Subscription newspapers and magazines

TOBACCO

Smoking accessories

Cigarettes

Other tobacco products

TRANSPORTATION

Vehicle expenses

Licensing, registration, rentals, tolls, and parking

Repairs, financing, and insurance

Fuel and motor oil such as gasoline, diesel, and motor oil

Public transportation: includes intercity and intra-city

Airline

Bus

Ship

Taxi

Vehicle purchases: includes down payments, interest, principle, cash outlays

New cars and trucks

Used cars and trucks

Motorcycles and aircraft

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TRIPS

Trips category: a hierarchy of variables, which concerns expenditures during travel and contains elements from five of

the main categories: Alcoholic Beverages, Entertainment, Food, Housing, and Transportation.

Alcoholic beverages during travel

Entertainment such as sporting events, movies, concerts, and rental of recreational vehicles

Food such as food purchased during out-of-town trips or food prepared at home for trips

Lodging away from home

Transportation such as fuel and motor oil, rentals, parking fees and tolls, and public transportation

GIFTS

Gifts category: a single variable that includes expenditures in almost any category when given as a gift to someone

outside of the household. Note that expenditures in the Cash Contributions category are not considered to be gifts in this

context.

RETAIL/NON-RETAIL

Retail/Non-retail category: two variables that form a partition of all spending, which are comprised of variables

exclusively in either retail or non-retail and other variables split between the two.

Retail: a single variable that includes alcoholic beverages, apparel products, educational supplies, audio-visual

equipment and media, sports equipment, pet food and supplies, toys and hobbies, food at home, food at restaurants,

glasses and hearing aids, medications and vitamins, household furniture, appliances, and other items and décor,

housekeeping supplies, personal care products and electrical appliances, books, magazines, and newspapers,

tobacco and tobacco accessories, tires, parts, fluids, and audio-visual equipment for vehicles, fuel for vehicles, vehicle

purchases, and parts of expenditures split between retail and non-retail.

Non-retail: a single variable that includes apparel services, cash contributions, college and primary/secondary school

tuition as well as some other educational expenses, cable and satellite TV services, online gaming, audio-visual rentals

and services, satellite radio, club membership fees, lessons, movie and sports admissions, sports participation fees,

photography services, pet services, health insurance, medical services, postal services, household operations,

mortgage interest, taxes, rental for dwellings and lodgings, utilities, miscellaneous expenses, personal care services,

personal insurance and pensions, transportation usage costs (license, registration, insurance, parking, tolls, etc.),

vehicle repairs, vehicle financing costs, public transportation, and parts of expenditures split between retail and non-

retail.

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NEW VARIABLES AND

DESCRIPTIONS

Beer Away from Home beer at fast food or full service, vending machine, employer, or catered affairs

Alcoholic Beverages Purchased on Trips

alcoholic beverages purchased on trips

Wine Away from Home wine at fast food or full service, vending machine, employer, or catered affairs

Liquor Away from Home alcoholic beverages (other than beer and wine) at fast food or full

service, vending machine, employer, or catered affairs

Other Cash Gifts other cash gifts

Entertainment - Audio/Video applications, games, and ring-tones for mobile devices

Cookies cookies

Crackers crackers

Canned Fruits Dried Fruits canned fruits dried fruits

Frozen Fruits and Fruit Juices frozen fruit juice and frozen fruits

Fresh, Canned, and Bottled Fruit Juices

fresh fruit juice and canned and bottled fruit juices

Canned and Processed Vegetables and Juices

canned vegetables and other processed vegetables; canned and frozen vegetable juices

Frozen Vegetables frozen vegetables

Ground Beef beef - ground beef, chuck roast, round steak, and other beef

Roasted Beef chuck roast, round roast, and other roast

Steak round steak, sirloin steak, and other steak

Other Beef other beef excluding canned beef

Bacon bacon

Pork Chops pork chops

Ham and Canned Ham ham and canned ham

Pork Sausage pork sausage

Other Pork other pork

Fresh and Frozen Chicken fresh and frozen chicken or chicken parts

Other Poultry other poultry

Seasonings and Condiments salt, seasonings, and spices; olives, pickles, and relishes; sauces, gravies, and other condiments

Frozen and Prepared Food frozen meals and frozen or prepared food other than meals

Soup soup

Potato Chips and Nuts potato chips and other snacks nuts

Potato Chips and Other Snacks potato chips and other snacks

Nuts nuts

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NEW VARIABLES AND

DESCRIPTIONS CONT’D

Other Prepared Food prepared salads, prepared desserts, baby food, miscellaneous

prepared food, and vitamin supplements

BCBS Commercial Medicare

Supplement BCBS commercial Medicare supplement

BCBS Traditional Fee For Service BCBS traditional fee for service healthcare

BCBS HMO BCBS health maintenance organization (HMO)

BCBS PPO BCBS preferred provider healthcare plan (PPO)

BCBS Other Health Insurance BCBS other health insurance

Traditional Fee For Service

(Non-BCBS) traditional fee for service healthcare (non-BCBS)

PPO (Non-BCBS) preferred provider healthcare plan (non-BCBS)

Commercial Medicare Supplement

(Non-BCBS) commercial medicare supplement (non-BCBS)

Other Commercial Health Insurance

(Non-BCBS) other commercial health insurance (non-BCBS)

Major Kitchen Appliances dishwashers, garbage disposers, refrigerators, freezers, stoves,

stove hoods, ovens, and microwaves

Electric Floor Cleaning Equipment

and Other Appliances electric floor cleaning equipment and other appliances

Clothes Washers and Dryers clothes washers and dryers

Closet and Storage Items,

and Luggage closet and storage items, and luggage

PDAs and Internet away from Home personal digital assistants and internet services away from home

Infants' Equipment infants' equipment

Laundry and Cleaning Equipment laundry and cleaning equipment

Office Furniture and Machines

for Home office furniture and office machines for home use

Power Tools and Hand Tools power tools and other hardware hand tools

Smoke Alarms smoke alarms

Window Coverings window coverings

Other Household Appliances other household appliances

Other Hardware and Miscellaneous

Household Equipment and Parts other hardware and miscellaneous household equipment and parts

Small Electric Kitchen Appliances small electric kitchen appliances

Portable Heating and

Cooling Equipment portable heating and cooling equipment

Homeowner's Insurance homeowner's insurance Home Parking Costs home parking costs

Home Property Management and Other Services

home property management, special services, and security

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NEW VARIABLES AND

DESCRIPTIONS CONT’D

Home Equity Loan Interest interest and charges for home equity loans

Mortgage Interest mortgage interest for owned dwellings

Rental Insurance and Maintenance, Indoor and Outdoor

insurance and labor and materials for indoor and outdoor maintenance and repair of appliances, paint, roof, air, plumbing, etc.

Renter's Insurance renter's insurance

Rental Maintenance, Indoor and Outdoor

labor and materials for indoor and outdoor maintenance and repair of appliances, paint, roof, air, plumbing, etc.

Rent of Dwelling rent of dwelling

Water and Sewage water and sewage costs and maintenance

Trash/Garbage Collection trash/garbage collection

Natural Gas for Bottle or Tank natural gas for bottle or tank

Other Fuels for Dwelling other fuels for dwelling

Fuel Oil for Dwelling fuel oil for dwelling

Cosmetics, Perfume, and Bath Products

cosmetics, perfume, and bath products

Non-Electrical Hair Care Products hair care products and non-electrical articles for the hair

Oral Hygiene Products and Articles oral hygiene products and articles

Shaving, Deodorant, and Feminine Hygiene Products

shaving needs, deodorant, feminine hygiene, and miscellaneous personal care products

Retirement Deductions deductions for government and railroad retirement, private pensions, and non-payroll retirement plans

Deductions for Social Security deductions for social security

Purchasing Boats and Trailers boat and trailer cash outlays, down payments, principal, interest, and finance charges

Purchasing Motorized and Un-motorized Campers

motorized and un-motorized camper cash outlays, down payments, principal, interest, and finance charges

Gasoline and Motor Oil on Out-of-Town Trips

gasoline and motor oil on out-of-town trips

Public Transportation on Out-of-Town Trips

public transportation on out-of-town trips - airline, intercity bus and train, and ship fairs

Vehicle Rental on Out-of-Town Trips vehicle rental on out-of-town trips

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NEW VARIABLES AND

DESCRIPTIONS CONT’D

Food or Board While at School food or board while at school

Food and Beverages for Catered Affairs, on Trips, as Pay

food and bev for catered affairs, food on out of town trips, and meals as pay

Food In Town But Away from Home food in town but away from home

Breakfast breakfast at fast food, full service, vending machine, at employer, etc.

Breakfast at Fast Food breakfast at fast food

Breakfast at Full Service breakfast at full service

Breakfast at Other Location breakfast at vending machine, mobile vender, at employer, or at school

Dinner dinner at fast food, full service, vending machine, at employer, etc.

Dinner at Fast Food dinner at fast food

Dinner at Full Service dinner at full service

Dinner at Other Location dinner at vending machine, mobile vender, at employer, or at school

Lunch lunch at fast food, full service, vending machine, at employer, etc.

Lunch at Fast Food lunch at fast food

Lunch at Full Service lunch at full service

Lunch at Other Location lunch at vending machine, mobile vender, at employer, or at school

Snacks snacks at fast food, full service, vending machine, at employer, etc.

Snacks at Fast Food snacks at fast food

Snacks at Full Service snacks at full service

Snacks at Other Location snacks at vending machine, mobile vender, at employer, or at school

School Meals school meals

Food or Board While at School food or board while at school

Food and Beverages for Catered Affairs, on Trips, as Pay

food and bev for catered affairs, food on out of town trips, and meals as pay

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CONTACT YOUR CLIENT ADVISOR TODAY

Contact your Geoscape client advisor today to begin benefiting from the greater decision confidence that

Consumer Spending Dynamix data brings. Dial 1-888-211-9353 or e-mail Geoscape@Geoscape.com for

pricing and delivery options.