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Primen: Consumers Say Energy Efficiency Now Top Issue in Home Appliance Purchases
Survey Shows California Consumers Leading Nationwide Trend on "White Goods" Efficiency, Price Rated Less Important
MADISON, WISCONSIN—December 11, 2001—U.S. consumers now rank energy efficiency as their most important consideration in shopping for new home appliances, according to a new study by Madison-based Primen, an energy market-intelligence company. The heightened consumer interest in energy efficiency marks a significant departure from findings in earlier surveys, when consumers said that price had the greatest impact on their purchasing decision, and ranked energy efficiency as having only moderate importance.
In its study, "Attitudes and Behaviors of Residential Customers About Energy Efficiency," Primen asked 500 households about factors affecting their purchases of home appliances and their knowledge of energy issues. Specifically, consumers in four U.S. geographic regions and California were asked to rank the impact on their purchasing decisions of six factors: fuel choice (natural gas/electricity), price, energy efficiency, brand name, product features, availability, and appearance.
The key finding indicates energy efficiency has replaced price as the top appliance-purchasing consideration in all regions of the United States. A majority of U.S. households now assert that they will make an extra effort to buy energy-efficient appliances in the future. Three-fourths of consumers said energy efficiency was a very important factor in their purchase of appliances during the past year. More important, 84 percent said they anticipate that energy efficiency will be a "very important consideration" in making future purchasing decisions. Pro-efficiency sentiment ran strongest among California consumers, with an overwhelming number of households claiming efficiency will outrank all other factors in future appliance-purchasing decisions.
A key question raised by the survey is whether this change in customer attitudes will be a lasting one. David Lineweber, Primen's Senior Vice President, noted "If energy prices are once again perceived as relatively stable, it remains to be seen whether consumers will continue to place such a high priority on energy efficiency. It will be increasingly important for companies involved in marketing energy-efficiency products and services to closely monitor these trends in the months to come."
For the near-term, however, it appears that residential customers have become increasingly focused on efficiency as they look to reduce their utility bills in light of previous hikes in gas prices and electric rates. "We fully expected to identify changes in attitudes about energy efficiency, but we were surprised to find such a seismic shift in consumer thinking," said Gretchen Parker, a principal in Primen's Knowledge Development Group. "
This heightened awareness of energy efficiency may reflect the aftermath of recent energy shortages and today's flagging U.S. economy. Extensive coverage in the national media has made energy a hot topic, particularly the confluence of events in 2001 that produced an electricity supply crisis in several areas of the country. The problem was especially acute in California, where consumers suffered rolling blackouts and electric rate increases of more than 25 percent. Attitudes elsewhere, particularly in other western states, have been reshaped by predictions of potentially dramatic price increases for energy.
Among other survey highlights were:
- Consumer attitudes have been shaped by campaigns aimed at raising awareness about energy efficiency, such as the EPA's ENERGY STAR labeling program. Nearly 56 percent of consumers report they had seen efficiency-related advertising.
- Roughly one-quarter of the respondents said they would be willing to pay more (15 to 25 percent above the standard price) for higher-efficiency appliances.
- Consumers most familiar with energy-efficiency issues have a more pessimistic long-term view about electricity prices, and are more likely to think they will experience a blackout in the future. Conversely, those least interested in energy efficiency are also less likely to believe they will experience such a blackout.
- Despite growing interest in using the Internet to research the energy efficiency of appliances and other home products, about 70 percent of consumers still prefer to go to friends and family, print media (such as Consumer Reports), home builders and contractors, sales personnel, and point-of-purchase displays for such information.
Primen is an independent energy market intelligence company that develops, analyzes, and delivers comprehensive, timely information on electric and natural gas markets, competitors, pricing, and new products and services. Primen is an affiliate of the nation's leading energy research and development organizations-EPRI, Palo Alto, Calif., and Chicago-based GTI.
©2001, 2002 GWSSI, OKC, OK. All rights reserved.
Last updated on 02/15/02.