Do eco-communication strategies Do eco-communication strategies provide a road to sustainability? provide a road to sustainability?

Evidence from the passenger Evidence from the passenger vehicle marketvehicle market

Mario F. Teisl, Jonathan Rubin Mario F. Teisl, Jonathan Rubin andand

Caroline L. NobletCaroline L. Noblet

Project funded by U.S. EPA Science to Achieve Results Project funded by U.S. EPA Science to Achieve Results (STAR) program; Grant number 83098801 (STAR) program; Grant number 83098801

Presentation outlinePresentation outline

Motivate & describe projectMotivate & describe projectMotivate & describe paper objectivesMotivate & describe paper objectivesResultsResultsFuture directionsFuture directions

Why worry about vehicle exhaust?Why worry about vehicle exhaust?

Air pollution is common and vehicle Air pollution is common and vehicle exhaust is a major culpritexhaust is a major culprit

Health effects of exhaust Health effects of exhaust

Irritates the eyesReduces lung functionDamages lungsAggravates respiratory problems – (e.g., asthma, emphysema bronchitis) Potentially causes cancerReduces flow of O2 in bloodstreamDecreased lifespan

Eco-effects of exhaust Eco-effects of exhaust

Acid rain

Visibility: 320 kmVisibility: 320 km 48 48 kmkm

Haze

Why use information approaches?Why use information approaches?

Current C&C policies relatively Current C&C policies relatively ineffectiveineffective– e.g., shift from cars to light duty truckse.g., shift from cars to light duty trucks

Research can design more effective Research can design more effective programsprograms– Several states planning or Several states planning or

implementing eco-labelingimplementing eco-labeling

Project objectiveProject objective

Design and test an eco-marketing & Design and test an eco-marketing & labeling strategy for vehicleslabeling strategy for vehicles

Project descriptionProject description

Baseline (test) data Baseline (test) data collectedcollected– Survey and market-Survey and market-

basedbasedEco-marketing & Eco-marketing & labeling designed/usedlabeling designed/used– Split ‘sample’ design Split ‘sample’ design

(treatment-control)(treatment-control)Retest data collectedRetest data collected

Marketing componentsMarketing components

LabelsLabelsBrochuresBrochuresWebsiteWebsiteNewspaper Newspaper Radio adsRadio ads

How we measure effectsHow we measure effects

Study of vehicle dealersStudy of vehicle dealersCampaign website activity Campaign website activity Consumer mail surveyConsumer mail survey

Study of vehicle dealersStudy of vehicle dealers

Visit 134 car/truck dealers from 24.6 to Visit 134 car/truck dealers from 24.6 to 22.7, 2005. 22.7, 2005. – 89 visited for a 66 % visitation rate. 89 visited for a 66 % visitation rate. Recorded whether dealer displayed:Recorded whether dealer displayed:– eco-labels on qualifying vehicleseco-labels on qualifying vehicles– eco-brochureeco-brochureRecorded salesperson awareness:Recorded salesperson awareness:– about relevant websitesabout relevant websites– about the Campaign in generalabout the Campaign in general

AnalysisAnalysis

Document level of dealer participation Document level of dealer participation – descriptive statistics: help determine the descriptive statistics: help determine the

relative importance of dealer-based eco-relative importance of dealer-based eco-labeling versus eco-marketinglabeling versus eco-marketing

Analyze factors influencing dealer Analyze factors influencing dealer participation and staff knowledgeparticipation and staff knowledge

KNOW = α + LBL + BROC + TRT KNOW = α + LBL + BROC + TRT

Campaign website activity Campaign website activity The website (The website (www.levforme.comwww.levforme.com) ) consisted of a several content areas consisted of a several content areas

Distribution of newspaper Distribution of newspaper eco-messageseco-messages

%%Eco-vehicles cheaper to buy or driveEco-vehicles cheaper to buy or drive 2121Driving contributes to air pollutionDriving contributes to air pollution 2020Vehicle emissions harm human healthVehicle emissions harm human health 1818Air quality worse than you thinkAir quality worse than you think 1212Eco-vehicles have good performanceEco-vehicles have good performance 88SUVs & trucks generate more pollutionSUVs & trucks generate more pollution 77Selection of eco-vehicles availableSelection of eco-vehicles available 44

AnalysisAnalysis

Use descriptive statistics to analyze Use descriptive statistics to analyze the following:the following:– number of unique visitorsnumber of unique visitors– number of hitsnumber of hits– length of visit length of visit – pages visitedpages visited

Consumer mail surveyConsumer mail survey

Sample Sample – 1.4 million vehicle registrations in Maine1.4 million vehicle registrations in Maine– Samples of Samples of 1,148 (2004) and 1,163 1,148 (2004) and 1,163

(2005)(2005)Survey Administration Survey Administration – Three-round Dillman Three-round Dillman – 60 and 64% response rates 60 and 64% response rates – SECs representativeSECs representative

Consumer mail surveyConsumer mail survey

Instrument designInstrument design– Sections I and II: perception variablesSections I and II: perception variables– Section III: current vehicle type and useSection III: current vehicle type and use– Section IV: search/use of eco-informationSection IV: search/use of eco-information– Sections V: label test experimentSections V: label test experiment– Sections VI: vehicle choice experimentSections VI: vehicle choice experiment– Section VII: SECs. Section VII: SECs.

AnalysisAnalysis

DEP = α + YEAR + MKT + ΣSEC + ΣRECDEP = α + YEAR + MKT + ΣSEC + ΣREC

Exposure to the Campaign (SEE)Exposure to the Campaign (SEE)Behavioral measure (SEARCH) Behavioral measure (SEARCH) Perceptual measures Perceptual measures – LIKE, DLR, IMPLIKE, DLR, IMP – CONC, AQUALCONC, AQUAL– LSTYLE, 2HARD, LAWS, MOST, WTP, TRST LSTYLE, 2HARD, LAWS, MOST, WTP, TRST – ALLS, LPERF, and COST ALLS, LPERF, and COST

ResultsResults

Participation by vehicle dealers Participation by vehicle dealers

11 % displayed eco-stickers 11 % displayed eco-stickers 11 % had eco-brochure available11 % had eco-brochure available4 % had both4 % had both

Sales personnel knowledgeSales personnel knowledge

2% and 4% of salespeople knew 2% and 4% of salespeople knew about campaign or DEP websitesabout campaign or DEP websites25 % had some Campaign 25 % had some Campaign awareness awareness 15 % knew about CA emission 15 % knew about CA emission standardsstandards

What explains sales person What explains sales person awareness?awareness?

VariableVariable ParameterParameterInterceptIntercept - 1.72***- 1.72***LBLLBL 2.42***2.42***BROC BROC 1.65*1.65*TRTTRT 0.260.26

Campaign website activity Campaign website activity

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Jan.

05 Feb.

March

April

MayJu

ne July

Aug.

Sept.

Oct. Nov.

Dec.

Jan.

06 Feb.

Hits

0

50

100

150

200

250

300

350

Visitors Hits

Unique Visitors

Length of website visit Length of website visit

%%

Less than half a minuteLess than half a minute 7474Thirty seconds to two minutesThirty seconds to two minutes 66Two to five minutesTwo to five minutes 66Five to fifteen minutesFive to fifteen minutes 88Fifteen to thirty minutesFifteen to thirty minutes 22Thirty minutes to an hourThirty minutes to an hour 33Greater than an hourGreater than an hour 22

Website areas visitedWebsite areas visited

%%

the environmental problemthe environmental problem 4747the media campaignthe media campaign 1616the project cooperatorsthe project cooperators 1313suggested eco-behaviorssuggested eco-behaviors 1010additional information availableadditional information available 99the eco-labelthe eco-label 55

Perceptions and experience with Perceptions and experience with eco-information eco-information

VariableVariable Desired signDesired sign Sign met?Sign met? PPSEESEE ++ YesYes 0.0050.005SEARCHSEARCH ++ YesYes 0.2950.295LIKELIKE ++ YesYes 0.4790.479DLRDLR ++ YesYes 0.2650.265IMPIMP ++ YesYes 0.7620.762

General eco-perceptionsGeneral eco-perceptions

VariableVariable Desired signDesired sign Sign met?Sign met? PPCONCCONC ++ YesYes 0.3950.395AQUALAQUAL -- YesYes 0.0000.000LSTYLELSTYLE ++ NoNo 0.2960.2962HARD2HARD -- YesYes 0.9200.920LAWSLAWS -- YesYes 0.0420.042MOSTMOST ++ YesYes 0.3700.370WTPWTP ++ YesYes 0.0900.090TRSTTRST ++ YesYes 0.0380.038

Perceptions of vehicles Perceptions of vehicles

VariableVariable Desired signDesired sign Sign met?Sign met? PPALLSALLS -- YesYes 0.7200.720LPERFLPERF -- YesYes 0.3790.379COSTCOST -- YesYes 0.5380.538

Did it work? SomewhatDid it work? Somewhat

Increase in recognitionIncrease in recognitionChanges in psychological precursorsChanges in psychological precursors– FIO and PCE increase FIO and PCE increase – TRST in government increasesTRST in government increases– No change in CONC; decline in No change in CONC; decline in

perceived air quality perceived air quality – No change in ALLS perceptionNo change in ALLS perception

Next steps: projectNext steps: project

Survey (consumer segmentation)Survey (consumer segmentation)Measure change in Market behaviorMeasure change in Market behavior– Market changes >> emission changes Market changes >> emission changes

>> health impacts>> health impacts– Explain dealer behaviorExplain dealer behavior– Spatial analysis of information Spatial analysis of information

disseminationdisseminationDealersDealersSpread of hybrids (word of mouth)Spread of hybrids (word of mouth)

Questions?Questions?