# Presentation: 011865

## Consumer Research on Energy Efficiency and Renewable Energy: 

**Steve French**
- Managing Partner
- The Natural Marketing
- Institute (NMI)

**Consumer Research on Energy Efficiency and Renewable Energy: **
- Research Results from the 2004 LOHAS Consumer Trends DatabaseTM

## NMI’s 2004 LOHAS Consumer Trends Research Study...

**     ****LOHAS = Lifestyles Of Health And Sustainability**
**An integrated consumer database which:**
- Identifies LOHAS consumer attitudes
- Measures LOHAS consumer behavior patterns
- Determines consumer usage of LOHAS products and services
**Research project methodology:**
- Annual tracking study, now in its third year
- Sample Size: 2,000+ U.S. households each year (6,000+ total)
- Nationally projectable U.S. adult population
- Online methodology
- Accurate at the 95% confidence level to +/- 2%

## The LOHAS Database Summary Content & Scope

_**Attitudinal Measures:**_
- 50+ LOHAS-related measures
- 16 additional psychographic drivers/consumer behavior predictors

_**Usage Patterns:**_
- Across 10 distinct industries
- 90+ product categories
- 95 specific product attributes
- 110 brand usage patterns

_**Information Sources**__:_
- 100+ sources of influence
- 40 magazines
- 19 TV shows, radio programs, other specific media venues** **

_**Behavior/Demo’s:**_
- Membership to 10+ organizations
- Shopping patterns across 30+ specific retailers
- Complete demographics

## New Ways Of Thinking Leads To The Need To Develop Consumer Insight 

## The LOHAS Consumer Hierarchy

- Protecting the environment
- Social issues
- Brand image
- _Personal_ health

_**Mainstream**_

## NMI’s NEW 2004 Consumer Segmentation Model Identifies Four Distinct Segments 

**xxx**

**LOHAS = **
**Almost 60 Million **
**U.S. Adult **
**Consumers**

***(% general population U.S. adults...)***

## Summary Trends Among The LOHAS Consumer:  A Snapshot of 2004 Versus 2003...

- _Increase_ in alignment of **personal values** with company/brand values
- _Higher_ concern for **socially responsible business** practices
- They’re becoming _more_ **influential** about “spreading the word”
- They’re _more_ likely to be **early adopters** of new products/services
- Much **higher usage rates** of many products and services, such as:
- Natural/organic consumable/packaged goods
**Renewable power/energy**
- Green building products/services
**Energy-efficient durable goods** (autos, appliances, electronics, etc.)
- Socially responsible investing

## Many Inherent Challenges Exist in Marketing EE And RP to the U.S. General Population

- 58% care about use of renewable energy sources
- But... fewer than 15% even know they can buy renewable power
- 79% say energy efficiency is important for electronics/ appliances
- But... only 34% say it’s important for products to have ENERGY STAR label

## LOHAS Consumers Can Be Identified Via Their Intense Environmentally-Based Attitudes

***(% consumer segment agreeing “completely” that they care about...)***

**LOHAS Consumers Can Be Identified Via Their Intense Environmentally-Based Attitudes**

**Notes:**
NOMADICS, as mentioned previously, behave most similarly to the GP with respect to their environmental attitudes:
For protecting the environment: 55.4% agree completely
Sustainable ag: 39.5 % agree completely
Renewable energy: 55.6 % agree completely
Recycled materials: 35.0% agree completely
Preservation of biodiversity: 28.7% agree completely

## Concern About Specific Environment and Energy Issues

***(% consumer segment stating that they are concerned about the following)***

## ENERGY STAR Attitudes

|  | GP | LOHAS |
| --- | --- | --- |
| It is important for household appliances, electronics, heating/cooling systems, and lighting products to have the ENERGY STAR label.  | 50% | 75% |
| The importance of the ENERGY STAR label is to save money on my energy bill. | 50% | 53% |
| The importance of the ENERGY STAR label is to be energy-efficient and environmentally friendly. | 55% | 80% |

***(% consumer segment stating agreeing “completely” with the following)***

## Interest In Energy Efficient Products

|  | GP | LOHAS |
| --- | --- | --- |
| “Energy efficient” is important for electronics or appliances | 79% | 88% |
| “Energy efficient” qualified is important for building products | 67% | 80% |
| “ENERGY STAR” qualified is important for electronics or appliances | 50% | 61% |
| “ENERGY STAR” qualified is important for building products | 44% | 54% |

***(% consumer segment stating the following)***

## Specific Renewable Power Attitudes

|  | GP | LOHAS |
| --- | --- | --- |
| I believe that increasing use of renewable power is important for human health. | 45% | 79% |
| I believe that increasing use of renewable power sources is important to the U.S. economy. | 50% | 77% |
| I would like my electric company to decrease reliance on fossil fuels and nuclear power. | 43% | 73% |
| I believe the energy choices I make are important in protecting the environment. | 38% | 72% |
| I would like to be able to purchase renewable power from my energy company. | 39% | 72% |

***(% consumer segment stating agreeing “completely” with the following)***

## Although 40% of The U.S. General Public Shows Interest, Most Don’t Know That RP is “Available”

|  | GP | LOHAS |
| --- | --- | --- |
| I have the option to buy renewable power from my electric/utility company |  |  |
| Yes | 8% | 10% |
| No | 50% | 53% |
| Don’t Know | 42% | 36% |
| I have the option to buy renewable power from someone other than my current electric company |  |  |
| Yes | 6% | 8% |
| No | 46% | 51% |
| Don’t Know | 48% | 42% |

***(% consumer segment stating the following)***

## The LOHAS Market Is Attractive, But Many Challenges Exist

- Multiple sub-targets with different value sets
- Multiple industries create cross-business challenges
- Many LOHAS products/services cost more
- “Values” are important, but price, brand, delivery all play a role
- Consumers aren’t sure whom to trust
- Complex value propositions (specifically renewable power)

- This represents a necessity to position products not as “more expensive alternatives,” but as “_necessary, values-based solutions_”

## Summary Perspective – Energy Efficiency

**Opportunities:**
- A more mainstream proposition driven by both cost savings _and_ environmental benefits
- Product “availability” has higher penetration
- There is still potential for the ENERGY STAR program to expand
- Need to rotate messages
- Need to target consumers interested in energy efficiency
**Challenges:**
- Relying on “ENERGY STAR” without talking about “energy efficiency” leaves many consumers “in the dark”
- DOE/EPA need to further educate consumers (again through targeting those consumers not aware of the term)
- Manufacturers need to use terminology accordingly

## Summary Perspective – Renewable Power

**Opportunities:**
- LOHAS consumers are an attractive target based on their related attitudes _and_ usage of other healthy and green products
- Health, economic, and environmental benefits of renewable power provide multiple value propositions to consumers
**Challenges:**
_*Immense*_ confusion over consumer availability to renewable power
- 	Must target most opportunistic consumers, start small, and grow consumer base from there
- 		In both industries, need to:
- Market uniquely
- Provide simple solutions
- Think differently

## The LOHAS Consumer Trends DatabaseTM (LCTD) Has Three Main Uses

_**Published Reports:**_
-  Sector-Specific Reports
-  100+ Pages Each
-  Hard Copy & Electronic Versions

_**Customized Analysis:**_
-  Target Identification
-  User Profile Analysis
-  Product Driver/Attribute Analysis
-  Communications Strategy
-  1000’s of Others...

_**Sponsorship Opportunities:**_
-  Proprietary Sponsor Content
-  Interaction Across Core Database
-  Customized Analysis & Report
-  2005 Sponsorships Now Available

## 

For additional information on this exciting project or how you can capitalize on the LOHAS market:

 Visit: www.NMIsolutions.com  

Or contact:
Steve French, (215) 513-7300, ext. 214
Steve@NMIsolutions.com 

- For additional information on this exciting project or how you can capitalize on the LOHAS market:
-  Visit: _www.NMIsolutions.com_
- Or contact:
- Steve French, (215) 513-7300, ext. 214
- _Steve@NMIsolutions.com_

## Use Prohibited

All materials herein are © 2004 by The Natural Marketing Institute.
All rights reserved. Reproduction, publication (internal and/or external), transmission, or other use of any of the within materials, including but not limited to graphics, data, and/or text, for any commercial or non-commercial purposes, is strictly prohibited without the prior express written permission.

Copyright Attribution Notice

If written permission for use of any portion of the within materials shall have been granted by The Natural Marketing Institute, and if any portion of the said materials provided by The Natural Marketing Institute shall thereafter be published in any form at any time to any third party, the following notice must be prominently included in any and every such publication:

Source: The LOHAS Consumer Trends DatabaseTM
© The Natural Marketing Institute, 2004

- All materials herein are © 2004 by The Natural Marketing Institute.
- All rights reserved. Reproduction, publication (internal and/or external), transmission, or other use of any of the within materials, including but not limited to graphics, data, and/or text, for any commercial or non-commercial purposes, is strictly prohibited without the prior express written permission.
_**Copyright Attribution Notice**_
- If written permission for use of any portion of the within materials shall have been granted by The Natural Marketing Institute, and if any portion of the said materials provided by The Natural Marketing Institute shall thereafter be published in any form at any time to any third party, the following notice must be prominently included in any and every such publication:
**Source: *****The LOHAS Consumer Trends Database******TM***
**© The Natural Marketing Institute, 2004**