Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising videos
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Market in contraction from 2005-2010
- Housing market and consumer confidence key drivers
- Green living and incentives boost demand for energy efficiency
- Large used market competes with new products
- Freezers outperform
- Sears keeps post as leading retailer
- Three dominant suppliers with extensive offerings, tiered product lines
- Brand qualities of major brands
- Energy conservation, smart appliances head up innovation
- Brands expand role of websites, social media, in-store promotion
- Brands targeting same buyers reduces brand differentiation
- Sixes—one in six buy used, most appliances purchased in last six years
- Some willing to spend more, others do spend more
- Brands on-the-money in showcasing most desirable features in ads
- Two in three sales related to a move, broken appliance, first-time purchase
- Multiple child households lead in intention to purchase
Insights and Opportunities
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- New ways to play on energy savings
- The landlord’s darling
- Model homes for everyone
- Let’s all get together to get these kids started
- Certified pre-owned
- The about-to-move market
- Entry-level energy efficiency
- Boomers ready to downsize
Inspire Insights
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- Trend—Brand Tribe
Market Size and Forecast
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- Key points
- Recession and collapse in housing market drive down demand
- 2010 offers some bright spots
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- Figure 1: Total U.S. sales and forecast of refrigerators, freezers and dishwashers at current prices, 2005-15
- Figure 2: Total U.S. sales and forecast of refrigerators, freezers and dishwashers at inflation adjusted prices, 2005-15
- Fan-chart forecast
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- Figure 3: Fan-chart forecast at 50-95% confidence levels, 2005-15
Market Drivers
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- Key points
- Cash for Appliances program
- Cooking more at home
- Homeowners show much higher appliance ownership rates
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- Figure 4: Ownership of refrigerator, freezer or dishwasher, by home ownership, July 2009-March 2010
- Renters spend less on appliances
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- Figure 5: Average amount spent on recently purchased appliance, by home ownership, April 2010
- Moving a central driver for buying an appliance
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- Figure 6: Reason for purchase of appliance, August 2010
- Housing market remains cold
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- Figure 7: Sales of existing and new single-family homes, 2001-10
- Trend towards smaller homes could reshape appliance demand
- Impact of the downturn
- Consumer confidence makes only limited recovery in 2010
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- Figure 8: Index of Consumer Sentiment (ICS) from Thomson Reuters/University of Michigan Survey of Consumers, 2001-10
- Remodeling in decline
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- Figure 9: National Association of Home Builders (NAHB) Remodeling Market Index (RMI) 2001-10
- Green living, economizing and rebates fuel demand for Energy Star
- Green living trends fuel interest in eco-friendly products
- With appliances, being green means saving money too
- Energy Star program designates resource-saving appliances
- Cash for Appliances program fuels purchasing and awareness of Energy Star products
- New energy standards to take effect in 2014, with more being lobbied for…
- Smart appliances likely to be next trend reshaping market
Competitive Context
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- Key points
- One in six buy used
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- Figure 10: Purchase of appliance new or used, by household income, August 2010
- Doing dishes by hand
Segment Performance
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- Key points
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- Figure 11: U.S. sales and forecast of refrigerators, freezers, and dishwashers at current prices, by segment, 2005-15
- Figure 12: U.S. sales of refrigerators, freezers, and dishwashers, by segment, 2008 and 2010
Segment Performance—Refrigerators
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- Key points
- Declines in both sales and shipments from 2006 onwards
- Energy Star, French doors and stainless steel buoy higher price points
- Sales and forecast of refrigerators
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- Figure 13: U.S. sales and forecast of refrigerators at current prices, 2005-15
- Figure 14: U.S. sales and forecast of refrigerators at inflation-adjusted prices, 2005-15
- Significant drops in unit shipments in 2008 and 2009
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- Figure 15: Factory unit shipments of refrigerators*, 2004-09
Segment Performance—Dishwashers
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- Key points
- Sales and forecast of dishwashers
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- Figure 16: U.S. sales and forecast of dishwashers at current prices, 2005-15
- Figure 17: U.S. sales and forecast of dishwashers at inflation-adjusted prices, 2005-15
- Unit shipments fall in 2008, less so in 2009
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- Figure 18: Factory unit shipments of dishwashers*, 2004-2009
Segment Performance—Freezers
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- Key points
- Sales and forecast of freezers
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- Figure 19: U.S. sales and forecast of freezers at current prices, 2005-15
- Figure 20: U.S. sales and forecast of freezers at inflation-adjusted prices, 2005-15
- Unit shipments grow in 2008, but fall again in 2009
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- Figure 21: Factory unit shipments of freezers*, 2004-09
Retail Channels
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- Key points
- Appliance/electronics stores and mass merchandisers grow share
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- Figure 22: U.S. sales of dishwashers, freezers and refrigerators, by retail channel, 2008-10
- Best Buy
- Walmart
- Lowe’s
- Home Depot
- Sears
Leading Companies
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- Key points
- The top three suppliers
- Whirlpool Corporation
- General Electric
- Electrolux
- Smaller significant suppliers in the appliance market
- LG Electronics
- Haier
- Samsung (Korea)
- BSH (Bosch und Siemens—Germany)
- High-end suppliers with prestige brands
Innovations and Innovators
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- Key points
- Resource conservation is at the forefront of innovations
- Innovation in refrigerators
- Separate cooling systems for freezer and refrigerators
- Whirlpool’s new side-by-side improves temperature management and offers spill-control
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- Figure 23: Whirlpool’s side-by-side with 6th Sense technology
- LCD displays in premium lines
- “Measured fill” dispenses measured amount of water
- French door freezers with extra pantry drawers
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- Figure 24: Samsung’s French door refrigerator with pullout snack drawer
- Innovations in dishwashers
- Improved sprays and steam technology for more powerful, versatile cleaning
- Control panels with elegant looks and additional features
- Improved sensors and leak detection
- GE’s SmartDispense saves time loading detergent
- Miele’s high-temperature kills bacteria
- Shhh! Quiet machines at work
- Use of new technologies to monitor, control and repair appliances
- Whirlpool and GE develop smart appliances for smart meters
- LG and Kenmore launch self-diagnosis technology
Marketing Strategies
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- Key points
- Brand positioning
- Whirlpool brands lead, followed by GE, Kenmore and Electrolux
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- Figure 25: Brand of appliances owned, August 2010
- Whirlpool
- Whirlpool: stylish, Energy Stars with added features
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- Figure 26: Whirlpool Gold side-by-side refrigerator
- Maytag touts more masculine brand image and highlights durability
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- Figure 27: Maytag’s French door refrigerator with bottom freezer and Jetclean Plus dishwasher
- Amana offers stylish, affordable contemporary design
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- Figure 28: Amana Green Tea refrigerator
- KitchenAid benefits from strong association with small kitchen appliances
- Kenmore—revamped, upgraded brand image
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- Figure 29: Kenmore’s new brand logo and French door Bottom Freezer
- GE—High-tech innovation and conservation
- Electrolux (Frigidaire, Electrolux)
- Electrolux—stylish, high-functioning products for “amazing” women
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- Figure 30: Electrolux dishwasher
- Frigidaire—focusing on modern moms with an updated image
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- Figure 31: Frigidaire new logo
- Television advertising
- GE profile targets remodelers and highlights rebates
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- Figure 32: GE Profile appliances, “$1,000 rebate” TV ad, 2010
- Kenmore shows redesigned products in futuristic landscape
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- Figure 33: Kenmore elite refrigerator, “radically designed “ TV ad, 2010
- Samsung showcases four-drawers for families
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- Figure 34: Samsung, “Dedicated to wonder” TV ad, 2010
- LG dramatizes capacity of new refrigerators
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- Figure 35: LG French door refrigerator, “Is it…?” TV ad, 2010
- Websites offer demos, design tools, blogs
- Other marketing
- Whirlpool undertakes 70-city training tour to focus on in-store marketing
- Sears promotes layaway, Blue Appliance Crew, “The Big Switch,” discounts
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- Figure 36: Sears Blue Appliance Crew, 2010
Appliance Ownership
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- Key points
- Refrigerators found in almost all HHs, dishwashers in about 80%
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- Figure 37: Ownership of refrigerators, freezers and dishwashers, August 2010
- Renters twice as likely to report that someone else owns their appliance
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- Figure 38: Appliance in home but owned by someone else, for renters, August 2010
- Income drives ownership
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- Figure 39: Ownership of refrigerators, freezers and dishwashers, by household income, August 2010
- First-time buys start among 18-24s
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- Figure 40: Ownership of refrigerators, freezers and dishwashers, by age, August 2010
- Appliance ownership increases for those with children in household
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- Figure 41: Ownership of refrigerators, freezers and dishwashers, by children in household, August 2010
The Purchase Cycle
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- Key points
- New vs. used decision determined largely by household income
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- Figure 42: Purchase of appliance new or used, by household income, August 2010
- Two thirds purchased in past six years
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- Figure 43: When kitchen appliance was purchased, August 2010
- Younger buyers in online sample actively acquiring new appliances
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- Figure 44: Purchased kitchen appliance in past three years, by age, August 2010
- Households with children purchased more recently
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- Figure 45: Purchased kitchen appliance in past three years, by children in household, August 2010
Spend on Appliances
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- Key points
- Average spend near $1K for combo refrigerators
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- Figure 46: Average amount spent on recently purchased appliance, August 2010
- Income drives average spend
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- Figure 47: Average spend on combination refrigerator/freezer or built-in dishwasher, by household income, August 2010
- Age and lifestage also shape spend
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- Figure 48: Average spend on refrigerator/freezers and built-in dishwashers, by age, August 2010
Reason for Purchase
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- Key points
- Replacement primary reason for most purchases
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- Figure 49: Reason for buying appliance, August 2010
- Younger consumers more likely to be first-time buyers
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- Figure 50: Reason for buying last combination refrigerator/freezer, by age, August 2010
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- Figure 51: Reason for buying last built-in dishwasher, by age, August 2010
Intent to Purchase
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- Key points
- Income shapes intent to purchase
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- Figure 52: Intent to purchase new appliance in the next six months, by household income, August 2010
- Those with two or more children show strong intent to purchase
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- Figure 53: Intent to purchase new appliance in the next six months, by children in household, August 2010
Combined Refrigerator/Freezer—Preferences and Attitudes
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- Key points
- Energy efficiency and design at front of consumer attention
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- Figure 54: Preferences for combination refrigerators/freezers, August 2010
- Upper income buyers value appearance, add-on features
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- Figure 55: Preferences for combination refrigerators/freezers, by household income, August 2010
- Younger buyers seek energy-efficient, stainless steel and black appliances
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- Figure 56: Preferences for combination refrigerators/freezers, by age, August 2010
- Households with children seek energy-efficient, stylish appliances
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- Figure 57: Preferences for combination refrigerators/freezers, by children in household, August 2010
- Side-by-sides most widely preferred style
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- Figure 58: Type of door style owned and preferred in combination refrigerator/freezer, August 2010
- Side-by-sides most widely owned by upper-income households
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- Figure 59: Type of door style owned in combination refrigerator/freezer, by household income, August 2010
- Strong interest in French doors in upper-income households
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- Figure 60: Type of door style preferred in combination refrigerator/freezer, by household income, August 2010
- Majority willing to pay more for water and ice dispensers in refrigerator door
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- Figure 61: Willingness to pay more for water and ice dispensers or counter depth, by household income, August 2010
- Under-45s ready to invest in water and ice
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- Figure 62: Willingness to pay more for water and ice filter/dispenser or counter depth, by age, August 2010
- Households with children ready to pay more for added features
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- Figure 63: Willingness to pay more for water and ice dispensers or counter depth, by children in the HH, August 2010
Place of Purchase
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- Key points
- Sears most widely used retailer for appliances
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- Figure 64: Source of refrigerator, freezer or dishwasher, August 2010
- Upper-income households favor “other” retailers
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- Figure 65: Source of combination refrigerator/freezer, by household income, August 2010
Cluster Analysis
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- Ice and Waters
- Demographics
- Characteristics
- Opportunity
- Planners
- Demographics
- Characteristics
- Opportunity
- Basics
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 66: Combination fridge/freezer clusters, August 2010
- Figure 67: Role in household purchase of appliances, by clusters, August 2010
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- Figure 68: Intent to purchase major kitchen appliances, by clusters, August 2010
- Figure 69: Homeownership, by clusters, August 2010
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- Figure 70: Purchase of appliance new or used, by refrigerator and freezer clusters, August 2010
- Figure 71: Willingness to pay more for water and ice dispensers or counter depth, by refrigerator and freezer clusters, August 2010
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- Figure 72: Preferences for combination refrigerators/freezers, by refrigerator and freezer clusters, August 2010
- Cluster demographics
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- Figure 73: Combination fridge/freezer clusters, by gender, August 2010
- Figure 74: Combination fridge/freezer clusters, by age group, August 2010
- Figure 75: Combination fridge/freezer clusters, by household income, August 2010
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- Figure 76: Combination fridge/freezer clusters, by race, August 2010
- Figure 77: Combination fridge/freezer clusters, by Hispanic origin, August 2010
- Cluster methodology
Trends in Cooking at Home
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- Key points
- Enthusiasts participate in cooking behaviors designed to improve health
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- Figure 78: Growth of health-related cooking behaviors, by cooking enthusiast segment, July 2010
- Enthusiasts show more “foodie” behaviors
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- Figure 79: Increase of non-health-related cooking behaviors, by cooking enthusiast segment, July 2010
- About one in three cooks making fewer meals with meal kits
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- Figure 80: Decrease in non-health-related cooking behaviors, by cooking enthusiast segment, July 2010
Appendix—Other Useful Tables
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- Major appliance sales of leading retailers
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- Figure 81: Sales of major home appliances, by top appliance retailers, 2008
- 25s-54s more likely to be planning a purchase
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- Figure 82: Intent to purchase new appliance in the next six months, by age, August 2010
- Replacement less significant reason for purchase in higher-income households
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- Figure 83: Reason for purchase of last combination refrigerator/freezer, by household income, august 2010
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- Figure 84: Reason for purchase of built-in dishwasher, by household income, august 2010
- Households with kids less likely to cite replacement as reason for purchase
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- Figure 85: Reason for purchase of last combination refrigerator/freezer, by children in household, august 2010
- Figure 86: Reason for purchase of built-in dishwasher, by children in household, august 2010
- Younger buyers show lower ownership of side-by-side refrigerator/freezers
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- Figure 87: Type of door style owned in combination refrigerator/freezer, by age, august 2010
- Younger buyers show highest interest in French door products
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- Figure 88: Type of door style preferred in combination refrigerator/freezer, by age, august 2010
- High-income households turn to specialty stores
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- Figure 89: Source of built-in dishwasher, by household income, august 2010
- Older buyers turn to specialty stores
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- Figure 90: Source of built-in dishwasher, by age, august 2010
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- Figure 91: Appliance in home owned by someone else, renters vs. homeowners, August 2010
Appendix—Trade Associations
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