It isnt easy being green, or is it?

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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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A Little About Us…

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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

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Why Does Green Matter?

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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Will The Green Trend Last?

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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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Green Sentiment Runs High

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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


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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


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What is the Potential for Green Products and Services?

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Service Technology EmpowersConsumers to Be Green


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


% 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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Segmenting the Green Market

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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


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 Green

Influence 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”



6%

41%

88%

50%

89%

98%

Anti-Greens

Naïve Consumers


Tech Savvy GreenSympathizers


Green Tech Leaders

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Influence: “Others Come to Me For Adviceon Being Green”



0%

2%

22%

9%

26%

50%

Anti-Greens

Naïve Consumers




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


53%

20%

21%

35%

17%

50%

Anti-Greens

Naïve Consumers




Green Tech Leaders

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Skepticism: “There Is Nothing Anyone Can DoTo Prevent Global Warming”



63%

17%

46%

25%

2%

7%

Anti-Greens

Naïve Consumers




Green Tech Leaders

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Love of Tech: “Other People Come to Me for Advice on New Technology”


28%

1%

31%

58%

21%

96%

Anti-Greens

Naïve Consumers




Green Tech Leaders

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Profile of Green Segments

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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

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Deploying a GreenServices Marketing Strategy

Will Green Marketing Help a Company?

Yes! …but they have to be sincere!



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…

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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

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Questions?