Energy Labels Testing - Qualitative Research Presentation ... · Sweeney Research is accredited under the International Standard, ISO 20202. All aspects of this study have been completed

Energy Labels Testing QUALITATIVE RESEARCH PRESENTATION OF FINDINGS

Sweeney Contacts: Lisa Naphtali and Courtney Leo

Industry Contact: Gemma Godwin

Ref. No. 23203

Date: August 2013

Introduction 3

Background 4

The Research Aims and Objectives 5

Methodology 7

The Detailed Findings 8

Contextual Considerations 9

Overall Response to Energy Labels 16

Evaluation of Label Executions 24

Recommendations 37

Sweeney Research is accredited under the International Standard, ISO 20202.

All aspects of this study have been completed in accordance with the requirements of that scheme.

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INTRODUCTION

Background • The Equipment Energy Efficiency Program (E3) was established in 1992 to

coordinate, among other things, mandatory energy rating labels across

Australia and New Zealand

• Energy rating labels and Minimum Energy Performance Standards

(MEPS) are mandatory for a variety of appliances in Australia and New

Zealand. An extensive number and type of appliances are now labelled

• The use of such labels continues to grow in importance due to product

volume growth and impact on climate and greenhouse emissions. The

Australian and New Zealand Governments are committed to improving

the efficiencies of appliances and equipment

• Water heaters, space heaters and air conditioners are the largest energy

users in the average household. Their energy efficiency can also be greatly impacted by the climate they are installed in. Out of these appliance types,

currently only air conditioners are labelled. E3 are currently investigating the

potential benefits of introducing a new energy rating label that illustrates

individual ratings for three climate zones that cover Australia and New

Zealand

• Such a label could provide valuable climate based energy efficiency

information and also provide additional information on performance

features. Providing consumers with reliable information can help them

select appliances that are energy efficient and cost less to run

• These climate rating labels can aid consumers in making more educated

purchase decisions. Features that may be represented include noise, hot

water delivery load, the ability to operate on off-peak power, etc.

• On behalf of E3, the Department of Industry identified the need to conduct

stakeholder research to understand responses to the new label concepts with

consumers and industry members in Melbourne, Sydney and Auckland

The following presentation details finding from this qualitative study •

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The Research Aim and Objectives

Overall Research Aim

• To provide recommendations on proposed label designs for the

new climate rating labels for air conditioners

and water heaters

The specific objectives were to…

1. Evaluate response to new label options

3. Provide recommendations for future development of the label

options

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2. Gain understanding of context that drives response to the label options

The Specific Objectives in Detail

1. Evaluate response to new label options

• Comprehension of information… How clearly the presentation of information is understood

• Engagement with label… Extent to which people are inclined to pay attention

• Role of label… Extent to which it could assist in purchase decision making

• Limitations of the label… Considerations on what may be missing, what is unclear

• Relevance… Extent to which the target audiences believe the label is aimed at, and relevant to, them

• Credibility… Perceived authority of the label, challenges or concerns identified by the audiences

• Differentiation… Extent to which the label can gain the attention of the target audience (will the audience notice it’s new or does it seem inherently similar / same to existing labels)

2. Gain understanding of context that drives response to the label options

• Understanding of the background of participants

• The current purchase decision path to climate impacted appliances in general and air conditioners / water heaters in particular

• Identification of all decision making criteria for the appliances in focus and a relative hierarchy of variables (within qualitative constraints)

• Current use / perceptions of role of labelling on appliances

• Perceived role of labels; Strengths, benefits and weaknesses, limitations

• Determine differences in perceptions by particular appliance types

3. Provide recommendations for future development of the label options

• Provide clear and actionable feedback regarding response to label options

• Identify similarities and differences between the audiences

• Recommendations to be grounded in contextual learnings and direct response from participants

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Methodology

• All sessions took place between the 9th and 16th of July 2013… – Sessions were moderated by Lisa Naphtali and Courtney Leo

• The sample was structured as follows…

6 Mini Focus Groups and 3 Standard Focus Groups

Target Audience Melbourne Sydney Auckland

Consumers / general public 2 Mini Groups 2 Mini Groups 2 Mini Groups

Industry members 1 Standard Group 1 Standard Group 1 Standard Group

Total 2 Mini Focus Groups

1 Standard Focus Group

2 Mini Focus Groups 1 Standard Focus

Group

2 Mini Focus Groups 1 Standard Focus

Group Consumer Specifications • All were purchase decision makers

• All recently purchased or were actively planning to purchase either an air conditioner, water heater or gas heater

• A mix of demographics was represented

Industry Member Specifications • Mix of plumbers, electricians and retail staff

• All were directly involved with the relevant appliances

Prior to coming to their session, consumer respondents were asked to complete a pre-task exercise which involved completing

a short booklet with a brief overview of their life and home and a detailed description of the process they are going through/went

through when purchasing a relevant appliance

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THE DETAILED FINDINGS

CONTEXTUAL CONSIDERATIONS

A Rational Purchase Process

• Low emotional connection with these types of appliances… – Water heaters, gas heaters and air conditioners are a means to an end;

they play a purely functional role

• These appliances are considered necessities, and therefore purchase

considerations/priorities are different to more luxury items – likened, by some, to

a car repair

• They are only considered when a new purchase needs to be made, very rarely

as the result of interest/keeping up with advances in the industry (for example

as can be the case with TVs)… – Main triggers relate to breakdowns, new builds/extensions or aging

appliances

• Shopping for these appliances tends not to be enjoyable… – Unexciting… Role as a necessity means use of these products are

mostly noticed for negative reasons - when they break down

– Some resentment… Would rather be shopping for luxuries, do not want

to spend the money but know they have to

• Purchases of this kind are infrequent… – Most cannot remember how they came to purchase previous appliances -

when they embark on the process ‘again’ they are almost starting anew

Implication…

• Because of the low frequency at which these climate affected appliances are purchased, there is little scope for consumers

to ‘get used ’ to labels over time

• They rely heavily on ‘experts’… a tradie friend (even among tradies), friends who have made similar purchases, retailer,

• Critical that information on new labels is very simple and clear - as it essentially needs to be re -learned for each purchase

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Purchase Process Differs Based on Appliance Type

• The diagram below shows how the purchase process broadly differs based on the perceived necessity of the appliance

– Considerations can vary at an individual level

– No distinct regional differences

Necessity Luxury

Essential Appliances Useful Appliances

Seen as a pleasure / a treat – More

focussed on brand, look, size and

functionality. Less focussed on cost

(although value important). Some

aware high end TVs aren’t cheap to purchase or run but are willing to

compromise for the viewing and sound

experience

Luxury Appliances

While consumers can get by without

these appliances, they can be

considered a necessity for some.

Because they tend to be on display

(often in the kitchen), aesthetics can be

as important as functionality and

running costs

Seen as a necessity / chore and an

ongoing cost, rather than a luxury,

therefore price and running costs

feature highly in consideration.

Maintenance, repair costs and longevity

are often factored in, so consumers

look for value when purchasing, not just

low cost. NB: some (few in this sample)

are driven solely by cost in line with

available funds

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Functionality and Cost are at the Core of Purchase Decisions

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1.

Price and

Functionality Most important and

considered first

Price is almost universally considered first– Running costs may factor into decision, may b

used to differentiate between options

Product features

Functionality

Size / fit / capacity

Reliability / durability

e

2.Longevity Very important and

considered second

Reviews and recommendations

Brand

Warranty

Water / power usage

Aesthetics (depending on how much it’son display)

How often it’s going to be used

3. Logistics Important and considered

third

Delivery options

Availability of parts

Service from retailer

Service / maintenance

Availability / in stock

Energy Ratings Labels are a Guide to Running Costs

• Energy rating labels are primarily used by consumers as a comparator on ongoing running costs of an appliance…

Running

Costs =

Most assume… • More stars mean cheaper to run in the long term

• The more stars the better the appliance

• The more stars the more efficient the appliance

• The more stars the more expensive the appliance

Less common considerations… Lower kWh means a lower energy bill

Better energy rating does not necessarily mean a higher quality product

•

•

• Lack of knowledge what the stars mean in

isolation –currently only used as a comparison

between two products

• While some talk about a minimum acceptable

star rating (often 2-3), there is little knowledge of

what the stars are measuring

• Almost no notice paid by consumers to other

information on the label

Implication…

• The link between star rating and running costs is a starting point for consumers’ interpretation of any label – if it is difficult to

make this link they are ignored or seen as frustrating

• There are other things in life (bills, family issues) that are more important than energy – they’re not investing time here

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Trades/Installers – Less Involvement in Purchases • A practical, experience based approach…

– Their roles and approach to their work is experience rather than research based – they learn by doing rather than reading

– Naturally less inclined to spend time looking at information on energy rating labels,

and prefer to base their judgement on how appliances have performed in actuality

• More concerned with ensuring appliances are high quality than energy ratings… – Well made does not necessarily correlate to energy efficiency for this group

– More likely to recommend products that will be reliable and perform consistently

over the longest period possible

• Generally less involved in the purchase process… – Rarely consulted by end consumers to help them during the purchase process

to decide which appliances is better for their needs (generally only asked by their

own friends)

– When purchasing on behalf of their customers/businesses, they are rarely given

specific instructions on which appliance to purchase or need to justify their

decisions on any other considerations apart from cost

• Helping consumers interpret energy rating labels to inform purchase decisions is not

considered a critical role for trades/installers… – Their role in relation to energy rating labels is one of explanation after the

purchase– Reluctant to have long conversations with their customers on energy ratings as it

takes time (and ultimately earnings) away

Implication…

• Any label change that adds complication or extra layers of interpretation is generally dismissed by this group, primarily

because trades people and other installers feel more in -depth information will confuse rather than inform and will require

them to provide greater explanation to their customers

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Retailers – Key in Helping Consumers Make Sense of Labels

• Retailers are perceived, by other professionals in particular, to have the mostinfluence over end consumers during the purchase process… – They are often there when the purchase decision is made

– (If trusted and respected) can steer consumers towards or away from a

particular appliance

– Help consumers make sense of the information they have gathered (from

online and other sources) to inform their purchase decision

– Can be a first port of call for some…speak to a retailer before looking online

• Conversations around energy rating labels are primarily related to running costs… – Most frequently asked question from customers (when questions are asked)

– Some offer the information even if not asked (though not common)

– Other information on labels does not raise questions or is not considered

important (perhaps because they are not understood)

• Retailers are cautious in recommending products based on energy ratings… – Their recommendations are an important opportunity to secure repeat

business in the future – there is a concern about getting it wrong

– Retailers are more comfortable making recommendations based on quality,

then using energy ratings labels (running costs) as a comparison

Implication…

• The most important information on an energy rating label for this group is related to running costs – the easiest to understand

and most influential information for consumers

• These experts arguably have the greatest opportunity to use energy rating labels to highlight the benefits of one appliance

over another and are consulted during the purchase process for guidance, particularly on running costs

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OVERALL RESPONSE TO ENERGY LABELS

Information Needs: Consumers

Consumers do not want to be overwhelmed with information on energy rating labels. All they really want to

know is…

“How much will it save me?”

And they need this information to be…

Comparable To other similar products

(energy efficiency can be

the deciding factor once

other criteria have been

satisfied)

Tangible In terms of a potential

dollar saving over a certain

period of time (preferably a

year), or direct correlation

to energy use

Personal / Relevant So that the cost saving can

be calculated based on

one's own usage/

circumstances

Easily accessible Most will not seek out

detailed information on

energy rating labels. The

minority who are more

informed typically learned

what the information on

labels means after it was

explained to them (these

also tend to be more

thorough in their decision

making process)

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Information Needs: Addressing the Motivators and Barriers

Motivators to Considering / Purchasing Energy Efficient

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Environment… • Minor – can induce feelings of virtuosity or present a feel

good factor but never the main reason to purchase on eappliance over another

Long term cost saving… • The main motivator

The Ideal Communications Solution

• Focus primarily on cost implications for maximum im pact

and usefulness

Barriers to Considering / Purchasing Energy Efficient

Lack of awareness, knowledge & understanding… • The main barrier relates to not understanding the information

provided on labels and how they pertain to their own

circumstances

Price… • Presumption that higher star ratings means the purchase

price will be higher, which can be prohibitive

Other product features… • Capacity/size and whether the product is fit for purpose is

more important

• Simple communication and/or

education on what the label issaying is important – mos tconsumers will have a label

explained to them initially

(generally by the retailer)

• Labels cannot be complicated –

easy entry points and maintaining the star rating is critical

• A cost saving should be identified

Labels Tested in the Research

Label Type A Label Type B

Label Type C Label Type D

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How Respondents Grouped the Labels Tested Yellow Background (Mix of Type A and Type B) Grey Background (Mix of Type A and Type B)

Sliding Scale (Type C) Similar to Existing (Type D)

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Response to the Labels Overall - Consumers

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• Generally important for consumers to understand how their appliance will perform (in terms of reliability and

Cautious running costs)

response • However, too much information and depiction of performance in three regions detracts from appeal in terms

of impact and perceived usefulness

Some • Energy efficiency, specifically running costs in the long term, can influence the purchase decision

important • However, detail on most of the labels does not feel necessary and can detract from what is seen to be the

information core information – the number of stars

Confusion on • Most unsure of why multiple regions are included on the same label – many initially compare between

regions and don’t see the relevanceregional

information • Particular issue in New Zealand, where consumers feel that the labels are Australian and New Zealand is

considered an afterthought (especially on those labels with the larger map)

Some new • Some interest in capacity information and room/house size as a check on whether an appliance is

news appropriate for their needs and might be fit for purpose

• Important to understand how efficient an appliance will be and this is predominantly determined by

Mixed support consumers by comparing the number of stars given to that appliance (compared to other similar products) –

any elements that detract from this are negatively perceived

Response to the Labels Overall – Industry Experts

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• Additional information indicates to industry members that they will need to spend more time with their

Will mean customers, explaining what the labels mean and why customers should consider these factors

more work • Trades people and installers are particularly negative about having to have longer conversations with their

customers to help them interpret the labels

Concern of • Inclusion of more information coupled with a move away from current label style means information may

not be considered by customersnegative impact

• Could cloud the energy rating message and distract from the impact of ongoing running costs on the

purchase decision

Useful

information but • As with consumers, Industry members question the need and relevance of multiple region information

can lack impact

• On some labels, the star rating can feel lost amidst the other information shown and industry members are

concerned that consumers will miss or misinterpret what is shown

More detailed than • As experts in appliances, these industry members are easily able to interpret the information but question

whether their customers need this level of detail necessary

• Most feel that when the new labels are introduced, they should be accompanied by a leaflet that customers

can read which explains the label and how to interpret it

• This will also help to cut down the work they anticipate in having to explain the labels to customers

themselves

Some education required

Regional Differences

• Very few differences in response to the information provided on the

labels and which designs are preferred across the three cities covered

in this research

• Consumers and industry members in Sydney, Melbourne and Auckland

all question the reason and relevance of having three regions included

on the new labels…– Adds a layer of interpretation (they don’t understand why)– Causes comparisons initially between regions

– Unsure of how to interpret this information (e.g. “If it is 25º in

Melbourne and 25º in Brisbane, why won’t the appliance work with

the same efficiency?”)

• However, New Zealand consumers and industry experts react more negatively to the regional information shown on the new

label designs…

– Most question the need and relevance of including information on Australian regions

– Gives the impression that the labels are really made for Australia and New Zealand just inherits them

– The .gov.au web address reinforces this

• The large maps included on some label designs appear to exacerbate these perceptions…– The Australian map takes up most of the space on the label

– New Zealand feels like an afterthought to some

Implication…

• The introduction of the labels in New Zealand could potentially aggravate these consumers

• In order to avoid this, a NZ label would be preferred, or alternatively showing small maps rather than larger (where Australia

dominates)

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Criteria For Success

Simple to

compare

• Stars most commonly used to compare two appliances –

must be clear and stand out

• Horizontal arrangement of stars more familiar and easy to

interpret for the majority

• Other information (e.g. size of appliance, property and decibels)

needs to be consistently positioned for ease of comparison– so that consumers know where to look

“You have to be able to get it in a glance, to quickly see which stars I need to be looking at and what it all

means.” (Consumer, Sydney)

“I don’t understand how tropical Australia is relevant to me. It just

makes it harder to find the stars I need to look at.”

(Consumer, Auckland)

“I would just tell my customers to concentrate on the middle row and

maybe even colour in the others black so they don’t get confused.” (Industry Member, Sydney)

“It’s easier when the writing is horizontal and you don’t have to turn your head to understand it.”

(Consumer, Auckland)

Quick to

interpret

• Information needs to be able to be deciphered quickly• Lack of clutter on labels is critical for ease of interpretation –

there is a fine line between interesting, educational information

and information that is dismissed quickly as too hard to interpret

• Needs to be an explanation of why multiple regions are

shown on labels – consumers in particular aren’t reaching thatlevel of interpretation on their own

Easily

identifiable

pertinent

information

• Presentation of information that allows consumers to situatethemselves and find the information that is relevant to them

quickly…

– Maps with enough contrast to highlight regions clearly

– Cities written horizontally rather than vertically

For any new label to be successful in terms of impact and appeal, it is critical that these three

criteria drive their development

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EVALUATION OF LABEL EXECUTIONS

Yellow Background – Mix of Label Type A and Label Type B

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Yellow Background: Overview

Labels do not feel visually appealing enough to be Colours familiar and help make thedisplayed on appliances (particularly air conditioners label easy to understandthat can be on display at home)

Separate heating and cooling scores Stars can be reminiscent of the American flag

make sense (especially when Showing heating and cooling rating separately can

appliances are mainly used for oneconfuse

purpose) Large maps hold less appeal in New Zealand

Star ratings easy to compare Names of cities written vertically less appealing

INSIGHT IMPLICATION

Labels feel familiar… • Similar colours to current rating labels means these are

considered fairly easy to interpret

• While this familiarity means many find this label appealing, there

is a danger that information on the label beyond stars may be

missed

Horizontal stars and text preferred… • Comparable to how current labels are interpreted, logical layout

• Any label feature that may require an additional level of

interpretation is often dismissed – information presented on the

label must be immediately clear to ensure consumers engage

Colours engage… • Bright and colourful attracts attention

• Colours used are reminiscent of current labels – consumers have

some feel for how the labels could be interpreted

• However, bright colours means some concerns about displaying

these labels on appliances (especially those which are on

display)

• Evidence to suggest there is some merit in proceeding with

current look and feel…especially when based in what consumersand industry members say they like

• However, there is a risk in this as a very similar colour scheme

may mean that information shown is disregarded as ‘seen itbefore’

• Further, these labels do not adhere to the requirements of a

successful label as others considered in this study

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Yellow Background: Executions

Most successful

of this group

• Clever way of showing heating and cooling together, without the clutter of

multiple rows of stars

• Easy to interpret

• Stars can be reminiscent of the American flag for some

• Preferred by… consumers in Sydney, industry members (kWh prominence)

• Clear and simple visual (especially compared to others of this type)

Decibels measure difficult to interpret – know what 55 decibels sounds like

(only meaningful as a comparison)

Stars stand out, however, r egions not always differentiated enough

Preferred by… No particular skews

•

•

•

• Confusing for most – looking at two separate columns to understand

efficiency is off putting

QR code is prominent (links to comparison and more product information

most preferred)

Preferred by… Few NZ consumers, who would mainly use an air

conditioner for heating only

•

•

• For some, easier to see how appliances compare across region when stars

shown vertically – however, industry members particularly concerned that

customers might not understand there is little point comparing regional

information

Smaller maps preferred in New Zealand but some find them harder to see

Preferred by… Some male consumers

•

•

Key characteristics…

• Familiar colours

• Generally easy to interpret

number of stars

Considerations…

• Less differentiated from

existing labels can mean

additional information on

these labels could be

missed or misinterpreted

• Heating a nd cooling

scores need to be shown

together (i.e. by region

rather than purpose)

• QR code should have its

own space to ensure if

feels purposeful

• Recommend 1st label

continue into next round

of testing (with

amendment)

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Grey Background – Mix of Label Type A and Label Type B

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Grey Background: Overview

Visually appealing

Red and white of the stars stands

out against the grey background

Explanation of stars is clear

KWh information prominent

Feels boring (low impact colours)

City names written vertically (harder to read)

Large map holds less appeal in NZ

Contrast on the map does not make the regions clear

enough (at first glance)

INSIGHT IMPLICATION

Muted colour scheme can polarise… • Some prefer the look of these labels (and would be more likely to

be happy to display them)

• However, for others, they lack impact

• Need to consider the trade off between visual appeal and impact

– can be high impact but care should be taken to ensure they are

not off putting so that information is absorbed

Showing aggregated heating and cooling information lacks meaning… • Does not offer insight into how the appliance will perform in

actuality

• Particularly when appliances are used predominately for one

purpose

• Show heating and cooling information separately to ensure the

information provided on the label is as useful as possible

Energy consumption figures prominent… • Easy to see KWh information

• Offers new information to consumers

• New/less frequently used information should be prominent to

encourage consumers to engage

• Consider offering further information to increase clarity

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Grey Background: Executions

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• Stars are clear and stand out

• Explanation of stars is prominent and appealing

• Arrows from map to bars help consumers to situate themselves/their

circumstances on the label

• Preferred by… Some female respondents

• Heating and cooling colours have impact (red and blue)

• Aggregate scores lack meaning

• Preferred by… No group more likely to prefer this label

• Contrast of regions preferred on this label (easy to work out which bar to

concentrate on)

• Room size would be better expressed in a more descriptive way (e.g. 4

bedroom house preferred to metres squared)

• Preferred by… Some male respondents, could be appealing for some

appliances (e.g. tall and slim appliances such as refrigerators)

Key characteristics…

• Clear contrast of stars

from the background

• Obviously new and

different from existing

labels

• Muted colour scheme

• Confusing heating/cooling

information

Considerations…

• Consider adjusting colours

for greater impact

• Show heating and cooling

scores separately

• Not recommended

Sliding Scale - Label Type C

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Label Type C: Overview

Highlighting star with score written inside makes

scores clearer

Vertical text for place names easier to read

White background means information stands out

(and the label is visually appealing)

Green and red colours on bar can be

confusing and lack appeal

Large map less appealing in NZ

INSIGHT IMPLICATION

Green and red bars detract from appeal… • Red and green bars are the primary element driving negative

• Not intuitively understood – requires additional layers of responses to these labels and should be reconsideredinterpretation

• A bar with graduated colours can make sense – scope to test• Red already known as an indicator of heating on these types of different colours in next iteration

labels

Other information generally clear… • Label does a good job of imparting the relevant information to

consumers and industry members alike

• Overall layout of these labels hold appeal and should be retained

for future iterations

• These labels most address the critical success areas identified

earlier better than any others tested

Concern over how multi function appliances would be depicted… • Showing heating and cooling information with current bars could

add too much complexity to the labels

• A revision of the red and green on the labels could help when

depicting heating and cooling information on this label

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Label Type C: Executions

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• A clean and spacious feel

• Red and green confuse, however other information is clear

• Some lack of strong differentiation by region is tempered by clarity of place

names

• Size of house description on this label preferred

• Preferred by… Australian consumers and industry members

• Smaller maps have better contrast and are certainly preferred in New

Zealand

• Metres squared lacks meaning for many consumers (unless they are going

through the building process)

• Preferred by… New Zealand consumers and industry members

Key characteristics…

• Most information well

presented and easy to

interpret

• Clean look and feel

• Visually appealing (beyond

the bars)

• Red and green confusing

Considerations…

• Revise red and green bars

• Consider smaller maps

(especially for New

Zealand consumers and

industry members)

• Recommend 1st label

continue into next round

of testing (with

amendment)

Similar to Existing - Label Type D

Not recommended

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Label Type D: In Detail

Similar to current label –

seemingly easy to interpret

Preferred by those who are

less engaged with energy

efficiency generally

(however, on deeper

consideration acknowledge it

is difficult to understand)

Not immediately clear that the label is showing three regions

Maps are lost on the label – making it more difficult to find the

right region

Super efficiency scores are not understood or liked

Information beyond the star ratings does not stand out

Different headers below the stars add confusion

Label too large – could detract from the visual appeal of the

appliance

INSIGHT IMPLICATION

Familiarity initially highlighted as a positive… • Initially looks simple and easy to interpret

• Assumption that it is showing exactly the same information as

current labels

• Familiarity of this label (as with Label Type A) means that new

information could be missed

Interpreting information actually quite difficult… • Not initially clear that three different scores are being shown

• Lack of understanding of what the super efficiency score is

• While initially appealing because of its familiarity, most feel this

label type does not suit the amount and type of information the

label is showing – difficulty in interpreting information will lead

consumers especially to disengage

Would only work for certain appliances… • No feel for how heating and cooling ratings could possibly be

shown in a clean and clear way on this label

• This label design lacks the versatility to be appropriate for all

appliance types

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RECOMMENDATIONS

What the Labels Should Be

Easy to interpret • Consumers need to be able to interpret the information provided on the label quickly as they are

unlikely to want to read and interpret a lot of information – labels must be clear, succinct and

easily digestible

Easy to compare • Labels are only useful as a comparator for the majority – the differences between two products must be easy to identify from the labels

Accessible • As they are unlikely to seek out information on energy ratings, consumers need to have the

labels explained to them in the first instance, e.g. by the sales assistant, flyers or obvious links

to websites (e.g. via QR code)

Clear • The information as well as why it is important to consider when purchasing appliances needs to

be clearly communicated

Honest • Labels must be impartial and honest – to foster trust (e.g. not from manufacturers or retailers but

an independent government body)

Relevant • Where possible materials should be tailored to the individuals situation, circumstances, e.g. size

of home, clarity on region, a guide to how much an appliance is supposed to have used during

the calculation of the ratings

Resonant • Information should ideally be tangible. Consumers want to know in $ figures what they will save

over a period of time. Stars are accepted but an indication of what this means in terms of $

figures could offer greater motivation

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Recommendation

Proceed with Label Type C (with amendment) Meets all of the criteria – easy to compare labels (stars with scores are clear), easy to see scores, and

regions clearly identified

QR code, information on the top bar and format of text all work well

• However, some concerns exist…• Colour of the bars is not easily understood, nor strong enough – red is not necessarily understood in this

context (not necessarily a negative)

• Too much grey for some – makes the label generally visually appealing (and regions stand out), however,

can feel bland

• Large map holds less appeal in New Zealand

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RECOMMENDATION

Recommendation

RECOMMENDATION

Proceed with Label Type A (specifically the execution below with amendment) Well received…familiar format, bold colours, large map

Stars easiest to understand of this series

• However, some concerns exist…• S/M/L not well understood

• QR code feels like ‘an afterthought’

• Some suggestion the stars ‘look like Texas’ in their current form

• Text needs to be horizontal

• Large map holds less appeal in NZ

40 of 4123203 – Energy Label Testing Report

MELBOURNE

L1, 90 York Street

South Melbourne VIC 3205

T 61 3 9699 8466

F 61 3 8199 0172

SYDNEY

L1, 30 -32 Market Street

Sydney NSW 2000

T 61 2 9252 3256

F 61 2 9252 5774