Is energy efficiency important to consumers?

Energy efficiency may not be the most important consideration for all consumers buying a new appliance, but it is certainly a key factor for many consumers. There is also evidence to suggest that many consumers use energy efficiency as a tool to differentiate between the final two or three products that meet their other selection criteria.

It is important for retailers (and manufacturers) to consider the following energy labelling facts:

Around 80% to 90% of recent or prospective appliance purchasers remember the energy label and its key elements (this is considerably higher than the average level of label awareness of around 60%);
40% to 50% of recent and intending appliance buyers said that they used or intended to use the information on the energy label when making their purchase;
While the unprompted priority given to energy efficiency is generally low, when prompted (as would be the case in an appliance store with labels visible), efficiency was ranked as the 4^th most important attribute (some 25% of consumers rated energy efficiency as the most important attribute). This is even more critical when you consider that many other consumers are also concerned with related issues such as energy consumption, operating costs and the environmental impact of appliance use;
Only 14% of consumers considered energy efficiency "not particularly" or "not at all" important when buying a new appliance;
The availability of appliance lists and information on the web increase the number of informed consumers (energyrating receives about 20,000 hits per year);

Many consumers shopping for appliances have a checklist of features that may not include energy efficiency in the first instance. However, once they establish how much they wish to spend and decide upon key features such as type, size and colour, then energy consumption often becomes a valuable selling feature. The energy consumption on the energy label can be used to calculate the cost of operating an appliance. The operating cost is also known as the "second price tag," and can help customers choose between models. By providing objective information and showing understanding and concern about the operating cost of an appliance, retailers can help win the confidence of their customers.

Customer concern about energy efficiency can manifest itself in a number of ways: star rating, "energy efficiency", operating cost, energy consumption, environmental impact. A retailer should be attuned to messages and concern about these aspects and use the star rating to help sell an appliance that will best serve their requirements.

It is important for retailers to understand the energy label. Consumers can ask some tricky questions about energy at times; the better informed you are as a retailer and the more able to answer their questions, the greater respect you will gain - this may be what is needed to close a sale. This web site can help you understand the energy label in more detail so that you are better equipped to assist customers.

This page last modified 27 June 2007