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SDM/Interlogix 2000 Consumer Home Security Survey

By mid-2000, about 17.8 percent of residential households said they had a home security system, according to a massive study by SDM Magazine and Interlogix. Penetration grew by more than four percentage points since a similar study two years previously.

The SDM study, conducted in partnership with Interlogix Inc., Portland, Ore., was in two parts and executed by National Family Opinion (NFO) Research Inc., Toledo, Ohio. In June 2000, a two-client multicard was mailed to 10,000 households - both homeowners and renters -- previously selected to conform to the latest available U.S. Census data by geography, market size, age of head of household, annual household income and household size. Initial useable response was 68 percent. A second, more detailed mailing to a subset of the initial surveyed group was mailed in mid-August 2000.

In addition to alarm penetration rates, the survey examined consumer characteristics such as age, location, income and market value of the respondent's home.

The SDM/Interlogix research also gathered opinions of non-owners of home alarms.

Interestingly, 7.9 percent of these non-owners said they definitely would consider purchasing a home security system while 55.7 percent said they might consider the purchase. About 36.3 percent said they would not buy a home security system; but that is down slightly from 38.2 percent in a similar 1998 survey conducted by SDM in partnership with Protection One and considerably down from 54 percent in 1994.

One key finding of the 2000 SDM/Interlogix centers on what types of consumers are most likely to own or purchase an alarm system. Most notable among groups, which have higher penetration than the national rate, are households with higher market values and/or higher household incomes. Alarm penetration, for example, is more than double (40.1 percent) the national rate among owners of homes valued at $300,000 or more. Not far behind, homes valued at $200,000 to $299,000 show an alarm penetration of 27.8 percent.

Higher penetration rates also come from higher income households. Among those earning $100,000 or more, there is a 38.8 percent penetration rate. In households making $75,000 to $99,000, the rate is 26.1 percent.

Still, from 1998 to 2000, the most growth in penetration - at least from the standpoint of household income - occurred among those earning $50,000 to $74,000, where penetration rose three and one-half points.

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HOW ALARM PENETRATION
HAS GROWN
Year Percent Penetration of Households
1988 7%
1994 11%
1998 13.7%
2000 17.8%
Source: The SDM/Interlogix 2000 Consumer Home Security Survey

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ALARM PENETRATION BY
MARKET VALUE OF HOME
With National Penetration at 13.7% in 1998, 17.8% in 2000
Year Home Value Percent Penetration of These Households
1998 Less Than $100,000 8.7%
2000 Less Than $100,000 11%
 
1998 $100K-$199K 18.1%
2000 $100K-$199K 21.2%
 
1998 $200K-$299K 28.7%
2000 $200K-$299K 27.8%
 
1998 $300K+ 39.1%
2000 $300K+ 40.1%
Source: The SDM/Interlogix 2000 Consumer Home Security Survey

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ALARM PENETRATION BY
REGION OF U.S.
With Nation-wide Penetration at 13.7% in 1998, 17.8% in 2000
Year Region Percent Penetration of These Households
1998 Northeast 13.8%
2000 Northeast 17.7%
 
1998 North Central 9.4%
2000 North Central 12.6%
 
1998 South 16.4%
2000 South 21.8%
 
1998 West 14.0%
2000 West 16.9%
Source: The SDM/Interlogix 2000 Consumer Home Security Survey

WHO IS LIKELY
TO OWN AN ALARM
With National Penetration at 17.8% in 2000
Demographic Element Percent Penetration of These Households
$300K+ Home Value 40.1%
$100K+ Household Income 38.8%
Manager/Professional/Executive 24.6%
Head of Household, aged 50-59 22.8%
Lives in South Region 21.8%
Owns Home 20.9%
Source: The SDM/Interlogix 2000 Consumer Home Security Survey

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