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It’s Not Easy Being Green……Or, Is It?
Presented by:Charles L. Colby
Joe BatesJoe Taliuaga
Rockbridge Associates, Inc.
17th Annual Frontiers in Service ConferenceOctober 3, 2008
For more information, contact:Joe Bates, VP703-757-5213 ext. [email protected]
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Rockbridge Overview
Full Service Market Research Consultancy – Founded in 1992, based in Washington, DC area
Our Practice Areas– Product Optimization & Concept Testing– Customer Satisfaction and Retention – Positioning and Communications Research– Market Segmentation– Website Usability
Rockbridge specializes in
services, technologyand media
sectors
Proud Member ofCorporate Partner
Center for Excellence in Service
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Rockbridge’s National Technology Readiness Survey (NTRS) has gathered consumers’ opinions and usage of technology since 1999The study is co-sponsored by the Center for Excellence in Service, R. H. Smith School of Business, University of Maryland
Methodology:– Representative survey of U.S. adults (18+ years)– 1025 consumers surveyed in Fall 2007
• 500 by telephone (random-digit-dialing)• 525 by a representative web panel
– Results weighted by demographics and by type of internet/phone access
Background & Methodology
6Source: National Technology Readiness Study, Rockbridge Associates, December 2007
I want to protect the environment for the benefit of
future generations
I want to protect the environment for the benefit of
future generations
The Earth belongs to humanity to do with as it pleases
The Earth belongs to humanity to do with as it pleases
Americans Believe in Environmental Stewardship
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Chances Are Good
California has been leading the way in enacting green laws:
• Mandated recycling of TVs and monitors
• Requiring retailers to take back plastic bags
• Almost outlawed incandescent light bulbs
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Is There An Environment “Problem”?
% Who Agree With Statement
69%
85%
The evidence of global warmingis real
More needs to be done to curbair and water pollution in our
country
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
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Can Something Be Done?
Consumers believe collective action will work
And regulation will not hurt
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
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Can Technology Help?
There is strong faith in technology
Green tech helps the economy…
The internet gives us a medium to work together
…while more efficient products and services help the wallet
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
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Service Technology EmpowersConsumers to Be Green
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
34%
44%
53%
52%
52%
58%
21%
31%
33%
42%
46%
51%
58%73%
Power company controlled airconditioner
Telecommute
Switch to electricity based onclean/renewable resources
Replace paper utility statement withelectronic
Access online pub instead of printversion
Replace paper financial statementswith electronic
Recycle/refurbish old computer % Who Have Done% Maximum Potential Incidence
Opportunities for financial
services, utilities, IT firms,
publishers
There is an Emerging Market for Green Products
39%
41%
43%
52%
60%
64%
66%
80%
10%
10%
20%
29%
33%
37%
45%
69%
Eco-Friendly Home
Weather station
High MPG vehicle
Home waterpurification system
High efficiencycooling
High efficiencyheating
Programmablethermostat
Energy savinglighting
% Who Have Own% Maximum Potential Incidence
Many include making homes and transportation greener
17%
23%
27%
29%
32%
34%
34%
35%
4%
3%
4%
7%
3%
8%
3%
4%
Green financialinvestments
Remote homesystem control
Bio-poweredvehicle
Trashcompactor
Solar waterheater
Natural gas/electric vehicle
Solar homeheating
Hybrid fuelvehicle
Many Energy-Related Products and Services Have Potential for Long Range Growth
% Who Own% Maximum
A third of consumers are interested (or already own) an alternative fuel vehicle and solar heating systems
Potential is Unrealized
Where is the Services Opportunity?
We estimate $104 Billion annual market for green products
Opportunities:– Green mortgages– Green home equity loan– Green vehicle financing– Partnerships with energy companies– Securities backed by these investments
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Many Are Turning to the Web for Help
4%
5%
8%
16%
17%
17%
18%
21%
23%
24%
27%
Researched car pools
Donated to political campaign
Environment forums
Obtained appliance energy ratings
Visited co website for green views
Got recycling info
Researched candidates' enviro views
Visited site of environmental org
Looked up green tips for home
Researched public transit options
Got gas mileage info
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
% Who Have Done It In Past 12 Months
Opportunities for online content to help consumers
find green solutions and network with other green-
minded consumers
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Key Questions
Who is driving the green movement?
What is the role of innovativeness (if any) in driving the movement?
?
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A “Green Segmentation” of the Market
1 out of 10 adults – “Green Tech Leaders” – are influencers– They also embrace technology and believe in its ability to solve problems
Another 2 out of 10 – “Green Tech Followers” – are deeply committed to green issues and view technology as playing a role
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
10%
31%
12%
22%
7%
18%
Green Tech Leaders
Green Tech Followers
Tech Savvy Green Sympathizers
Enviro-Friendly Skeptics
Naïve Consumers
Anti-Greens
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Commitment
to GreenInfluence
Absence of Skepticism
Love of Tech
Green Tech Leaders High High High High
Green Tech Followers High Low High Medium
Tech-Savvy Sympathizers Medium Low Medium High
Enviro-Friendly Skeptics High Low Skeptical Low
Naïve Consumers Medium Low Medium Low
Anti-Greens Low Low Skeptical Medium
Psychographic Profile of 6 Segments
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Commitment: “I Encourage Friends / Family to Be Environmentally Friendly”
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
% Who Agree With Statement
6%
41%
88%
50%
89%
98%
Anti-Greens
Naïve Consumers
Enviro-Friendly Skeptics
Tech Savvy GreenSympathizers
Green Tech Followers
Green Tech Leaders
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Influence: “Others Come to Me For Adviceon Being Green”
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
% Who Agree With Statement
0%
2%
22%
9%
26%
50%
Anti-Greens
Naïve Consumers
Enviro-Friendly Skeptics
Tech Savvy GreenSympathizers
Green Tech Followers
Green Tech Leaders
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Green Tech Leaders influence others through social media
Green Tech Leaders influence others through social media
Anti-Greens also use social media, and may influence others on their views
Anti-Greens also use social media, and may influence others on their views
Influence: The Use of Social Media
% Who Agree With Statement
53%
20%
21%
35%
17%
50%
Anti-Greens
Naïve Consumers
Enviro-Friendly Skeptics
Tech Savvy GreenSympathizers
Green Tech Followers
Green Tech Leaders
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Skepticism: “There Is Nothing Anyone Can DoTo Prevent Global Warming”
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
% Who Agree With Statement
63%
17%
46%
25%
2%
7%
Anti-Greens
Naïve Consumers
Enviro-Friendly Skeptics
Tech Savvy GreenSympathizers
Green Tech Followers
Green Tech Leaders
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Love of Tech: “Other People Come to Me for Advice on New Technology”
% Who Agree With Statement
28%
1%
31%
58%
21%
96%
Anti-Greens
Naïve Consumers
Enviro-Friendly Skeptics
Tech Savvy GreenSympathizers
Green Tech Followers
Green Tech Leaders
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Green Tech Leaders – 10% of Market
How They Think Who They Are
Important to be green Early Adopters Technology can save us Green gadgets are cool Like trying new green tech Do research and influence
others on green products Like doing business with
green companies Green is good for the wallet
Younger More likely to have kids Tech professions Higher incidence of
• work PC use• home networks• high-speed home Internet• access Internet on the go
Higher web “presence” and subscriptions to online music and video
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Green Tech Followers – 18% of Market
How They Think Who They Are
Adamant about protecting the environment
People must reduce their impact on the environment
Green gadgets are fun Like trying new green
technologies Research green products Like dealing with green cos. Green is good for the wallet
Older Female Higher home
ownership rates Lower incidence of
cell-only households Spend fewer hours
online Lower web
“presence”
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Other Relevant Green Segments
Tech-Savvy Green Sympathizers (31%)
Care about the environment Early adopters of
technology NOT green activists or
boosters, but sympathetic Like doing business with
green companies Green is good for the wallet Skew younger, male, heavy
users of technology
Enviro-Friendly
Skeptics (12%) Adamant about being green Technophobic Technology may worsen our
problems, not sure what to do Want proven technologies to
help the environment Research green products Like dealing with green cos. Green is good for the wallet Skew older, less techy
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Segments Where Green is Less Relevant
Naïve Consumers (22%) Hold “socially acceptable”
opinions, but no urge to act More concerned with
getting by on a day to day basis than being green
Many are technophobic Low interest/awareness of
green tech or products Will avoid using green
technologies until they are proven
Skew female, less techy
Anti-Greens (7%) Not committed to
environmental issues Don’t care about green
technologies or products More concerned with getting
by on a day to day basis Environmental activists are
irresponsible; the Earth belongs to humanity
Oppose regulation Skew younger
Will Green Marketing Help a Company?
Yes! …but they have to be sincere!
Source: National Technology Readiness Study, Rockbridge Associates, December 2007
% Who Agree With Statement
68%72%
I like to do business withcompanies that are
environmentally responsible
I resent companies that say theycare about the environment but
don't mean it
78%
60%63%
31%35%
56%
85%
70%65%
40%45%
56%
Green TechLeaders
Green TechFollowers
Tech-SavvyGreen
Sympathizers
Enviro-FriendlySkeptics
NaïveConsumers
Anti-Greens
Use NowPotential
Example: Online Financial Statements
Example: Green Investments
13%
6%
2%0%
2%3%
32%33%
12%
5%
15%
9%
Green TechLeaders
Green TechFollowers
Tech-SavvyGreen
Sympathizers
Enviro-FriendlySkeptics
NaïveConsumers
Anti-Greens
Own NowPotential
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To Sum It Up…
Consumers care about the environment, even if some are only joining the bandwagon to be PC
Embracing technology and being green are not mutually exclusive ideologies
When marketing green products and services, focus on the following messages:– Your company cares about the environment (and you have to back this up with
actions that show it)– If we all work together, we can have an impact– Your product is environmentally conscious– Buying your product will not only help the environment, it is good for the
consumers’ wallets
Target Green Tech Leaders with your message– They will evangelize on your behalf– Social media is key