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Green Grid Analytics and Strategy Group, LLC.

Exploring American’s Commitment to Home Efficiency and Sustainable Behaviors
Learn More About Green Grid Analytics and Strategy Group http://www.greengridgroup.com Steven.silverman@greengridgroup.com 425.296.1971

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© 2010 Green Grid Analytics and Strategy Group, LLC. All Rights Reserved – Confidential – Do not distribute

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Our approach to this project

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Where to Play
Identify a meaningful, actionable and sizable market  Focus on those people who are ready to purchase  Segment based on their values, beliefs, behaviors, and preferences

How to win
Create a differentiated and sustainable Value Proposition  Position the product for the market  Communicate at the right places, in the right ways

This document focuses on the first objective

We present one approach to finding the target market
© 2010 Green Grid Analytics and Strategy Group, LLC. All Rights Reserved – Confidential – Do not distribute

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Contact Green Grid Analytics and Strategy Group LLC for permission regarding any republication or reuse of the information contained in this document.

Our POV: Focus where the market is ready
Adoption is not uniform across the market
 

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Only some people are ready at any given time
 

Change flows through the market Home Efficiency and Sustainability purchases are “a change “ Focus on those who are ready for change
Disinterested Skeptical

In-Market consumers are mentally ready to adopt Encourage their desire to change

Interested

Almost Ready

In-Market

Target Market Is Here
Market moves over time

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© 2010 Green Grid Analytics and Strategy Group, LLC. All Rights Reserved – Confidential – Do not distribute

Contact Green Grid Analytics and Strategy Group LLC for permission regarding any republication or reuse of the information contained in this document.

Method and Sample

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Method
 Online survey conducted during February 2010  Survey designed by Green Grid Analytics and Strategy Group LLC  Survey Fielded by PeopleMetrics, Inc.

People Characteristics

  

Home Characteristics

 


412 home owners in the USA 65% have income of $80k or less 58% college or more 48% female 75% married Median age 48 years old


Median Home Value $200k 66% 2000 ft2 or less 38% have lived in their home < 5 years, 44% > 10 years 47% expect to be in their home >10 more years 6% Live in Green Certified home

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All group differences in this project are tested with 95% confidence limits (i.e., p<.05). Margins of Error for percentage estimates are approximately ±5%.
© 2010 Green Grid Analytics and Strategy Group, LLC. All Rights Reserved – Confidential – Do not distribute

People Who Are Ready to Invest in Home Efficiency Improvement

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7-point scale N=412,

Not Investing or Neutral

Investing

58% select the top three boxes on the scale Only 17% select the bottom 3 boxes and 25% are “on the fence” Look for the differences between the groups Target those who are more likely to invest in the next year Appeal to Investors in ways that are meaningful to them

17%
Chart Percentages Rounded

25%

58%

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© 2010 Green Grid Analytics and Strategy Group, LLC. All Rights Reserved – Confidential – Do not distribute

Contact Green Grid Analytics and Strategy Group LLC for permission regarding any republication or reuse of the information contained in this document.

Proportion of those Investing varies by region
 

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Those Investing outweigh Not Investing in all regions Between group difference is largest in the Northeast, followed by the West, South and Midwest

70%
65% 65% 59% 56% 52%

58% US Average

60% 55% 50%

48%
44%

45%
40% 35% 30% 25% 35%

41%

20%

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Not Investing

Investing

Not Investing

Investing

Not Investing

Investing

Not Investing

Investing

Northeast

Midwest

South

West

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Demographics do not differentiate these groups

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NO DIFFERENCES between those Investing and Not Investing:
Gender  Age  Education  Marital status

Home size  Home value  Time in home  Expected time in home

This is not surprising since there is no a priori reason to expect that any of these dimensions alone is the reason why people do or do not invest in improving their home’s efficiency
Also, no differences on these dimensions within each region Our research shows that there are, however, other meaningful differences between these groups

 

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Values, beliefs and behaviors related to home efficiency and sustainability are differentiators Details on these results are not contained in this document – contact us if you would like to learn more – steven.silverman@greengridgroup.com
© 2010 Green Grid Analytics and Strategy Group, LLC. All Rights Reserved – Confidential – Do not distribute

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Investors will increase spending over time and spend more than Non-Investors (National Averages)
Q: Please describe your SPENDING TO IMPROVE YOUR HOME'S ENERGY EFFICIENCY:

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Percentage of each group expects to invest that amount of money in that period
Average Average Average Average

Not Investing

33%

34%

Investing 26%

34%

All differences are significant

26%
19% 14% 16% 11% 14% 12% 9% 5% 3% over $10,000

20%

19% 12%

21% 16%

9%

11% 8% 3%

8%

7%
4% 0%

8%

$0

Under $100 100-499

500-999 1000-4999 5000-9999

over $10,000

$0

Under $100

100-499

500-999 1000-4999 5000-9999

In the NEXT 6 MONTHS I expect to spend

BETWEEN 6 MONTHS AND 1 YEAR from now I expect to spend

  

Investing indicate they will invest larger amounts in the next 6 months and in the next year Not Investing indicate they will only invest small amounts More investment will be made in the future relative to the near term for both groups
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Regional spending projections follow the national pattern
(Regional Averages)
Q: Please describe your SPENDING TO IMPROVE YOUR HOME'S ENERGY EFFICIENCY:
All differences are significant

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Average amount of each group expects to invest

$500 - 999

$100 - 499

Under $100
Not Investing Not Investing Not Investing Not Investing Investing Investing Investing Investing
Northeast Midwest South West

Next 6 Months

6 – 12 Months

 

Regional differences are relatively minor and follow the same pattern as the national results Investors will increase spending over time and spend more than those Not Investing

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Summary
In our analysis, 58% of people are planning to invest in home efficiency improvement this year  There are regional differences  Demographics do not distinguish Investors from NonInvestors  Most Investors indicate they will spend $100-$499 this year  Non-Investors indicate they will spend under $100  To learn more contact steven.silverman@greengridgroup.com

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