2011 Iowa Biobased Consumer Survey

Transcription

1 2011 Iowa Biobased Consumer Survey M. House, Graduate Program Assistant, BioPreferred, Iowa State University Extension and Outreach B. Butcher, Undergraduate Assistant, BioPreferred, Iowa State University Extension and Outreach S. Devlin, Program Manager, BioPreferred, Iowa State University Extension and Outreach R. Pruszko, Project Manager, BioPreferred, Iowa State University Extension and Outreach Iowa State University Extension and Outreach conducted a consumer response survey about biobased products in the summer of The purpose of the survey was to better understand the perception and acceptance of biobased goods among Iowa consumers. The BioPreferred Program was created through the Farm Security and Rural Investment Act and it requires all federal agencies and contractors to give preference to biobased products. In February 2011, BioPreferred launched a voluntary certified biobased product program. Iowa State University Extension and Outreach provides support and input for the BioPreferred Program. Iowa has a large agricultural sector, and ascertaining public perceptions of the new biobased market is important to Iowa State Extension and Outreach. Survey Methodology Prior to the summer survey, an attempt was made to gauge consumer acceptance of biobased products. Utilizing voter registration data, 2,500 randomly selected recipients were sent a postcard with a URL address. The postcard asked that they go to the website and complete an online survey. Only 7 of the 2,500 recipients responded. In order to receive a more effective response rate, the survey was reinvented with better language and more precise data choices. This time a paper survey was mailed and the recipients had the option to reply in two ways: online or traditional mail. The same 2,500 recipients (minus one who requested to be removed from the sampling) were used. Because the survey was substantially revamped due to a lack of response, utilizing an existing list was the most appropriate method available. The labor required to randomly reselect recipients could not feasibly be repeated. Following approval of the survey by the Institutional Review Board, the survey packets were mailed on June 15, These packets each contained a letter, a copy of the survey with instructions, a business reply envelope, and a pen made from corn-based plastic. The recipients had the option of filling out the paper survey and mailing it back or accessing the survey via The following definition was provided on the survey: Biobased products are commercial or industrial products (other than food or feed) that are made of renewable agricultural materials. After receiving approximately 600 responses roughly three weeks after the initial mailing, a reminder postcard was sent to the remaining respondents. As of October 4, 2011, 755 responses had been received. Responses to the mailed surveys were logged by CIRAS personnel on in order to obtain an electronic dataset of the responses. All recipients were assigned a study number so that their responses could remain anonymous to everyone except the directors and managers of the survey. Demographics The proportion of male and female respondents was nearly equal, with 46% of respondents being men and 51% being women (3% chose not to answer this question). There were slightly more elderly respondents than younger respondents. About 40% of respondents were aged 18 55, whereas about 57% were 56 years or older. Again, roughly 3% of respondents chose not to answer this question. These results are not surprising since all those aged 17 and younger were not included in the survey. The majority of respondents were employed either full or part time (58%), with the next largest group being retired citizens (34%). Occupational areas were nearly equal across the board, ranging from agriculture to education to the service industry and manufacturing. The majority of respondents got their news from either the television or a daily

2 newspaper, with radio and the Internet being secondary sources. A complete graphical breakdown of the survey demographics can be found in Appendix A. Survey Results Iowa State Extension and Outreach received 755 responses from the 2,499 survey requests, a 30.2% response rate. A total of 737 responses were received by mail, accounting for 97.6% of the response rate. The survey has a maximum margin of error of ±3.6% at a 95% confidence level. Theoretically, with a sample of 755 people, one can say with 95% certainty that the results reported have a statistical precision of ±3.6 percentage points of what they would be if all Iowans aged 18 or older had taken this survey. However, several possible sources of error exist in all surveys. The major sources of possible error include sample design, refusal or inability to respond to the survey, and question wording and order. It is practically impossible to quantify the impact of these errors on survey results. Questionnaire Design The survey was designed in such a way that questions with common themes were grouped together. For example, Questions #1 6 were used to gauge the level of Iowans familiarity with biobased products. Several questions in the survey (#1 3, #7 12, and #15 20) used a Likert-item scale to measure respondents levels of agreement to specific statements. All Likert-item questions used a scale with values ranging from 1 to 5 or 1 to 6. Lower values corresponded to unfamiliarity or disagreement, and higher values corresponded to familiarity or agreement. Familiarity with Biobased Products The first six questions of the survey were used to gauge the level of Iowans familiarity with biobased products. When asked about their familiarity with the term biobased products, the majority of respondents were either neutral or somewhat familiar with the term (see Figure 1). However, a large majority of respondents had heard a lot about the use of biobased fuels (biofuels) in vehicles (see Figure 2). This difference between the overall familiarity with biobased products and the use of biofuels among Iowans is not surprising. Ethanol has been the topic of much discussion in Iowa for many years. The approximate 6% of respondents that reported not having heard anything at all about the use of biobased fuels in vehicles most likely failed to recognize that ethanol is in fact formulated from biomaterials. Figure 1. How familiar are you with the term biobased products? Figure 2. How much have you heard about the use of biobased fuels (biofuels) in vehicles? Respondents were generally unfamiliar with biobased products as opposed to biofuels. As illustrated in Figure 3, more than 44% of Iowans had heard nothing at all or only a little about biobased cleaning supplies, building materials, or office supplies. However, more than 50% of respondents reported using some type of biobased product in their home, auto, or workplace (see Figure 4). Additionally, nearly one-third of respondents were unsure if they were using a biobased product in their home, auto, or workplace. While respondents were fairly unfamiliar with biobased products other than biofuels, they did seem pretty open to using them, with more than 50% already doing so. A potential future study could assess Iowans familiarity with biobased products, excluding ethanol and other biofuels.

3 Figure 3. How much have you heard about biobased products such as cleaning supplies, building materials, office supplies, etc.? Figure 4. Do you currently use any biobased products in your home, auto, or workplace such as cleaning supplies, fuel, building materials, office supplies, or other products made from corn or soy? With the results of Question #3 in mind, it is not surprising that approximately 73% of respondents had no idea or were unsure of where to purchase biobased products (see Figure 5). Respondents, however, were quite clear on where they would like to purchase biobased products for their household (see Figure 6). Nearly three-fourths of respondents would prefer to purchase biobased products at a national chain store, such as Walmart or Home Depot, or a locally owned store; approximately one-fourth of respondents had no preference. Figure 5. If you decided to use more biobased products in your household, do you know where you would go to purchase those products? Figure 6. If you wanted to purchase biobased products for your household, where would you prefer to buy them? Biobased vs. Traditional Petroleum Based Questions #7 and #8 were designed to assess Iowans opinions of the price and quality of biobased products versus traditional petroleum-based products. A majority of respondents, approximately 61%, were very likely to purchase a biobased product over a traditional petroleum-based product if the price and quality were the same (see Figure 7). The support for biobased products decreases dramatically if the quality stays the same, but the price for biobased products increases (see Figure 8). Only 14% of respondents reported that they were very likely to pay more for a biobased product if the quality were the same as a traditional petroleum-based product. These results illustrate what researchers have long posited, that cost is the primary factor for consumers when choosing between environmentally friendly products and traditional petroleum-based products. As costs of biobased products decrease with time, this factor could potentially become obsolete. Figure 7. How likely would you be to purchase a biobased product for your household rather than a traditional petroleum-based product if the price and quality were the same?

4 Figure 8. How likely would you be to spend more for a biobased product for your household rather than a traditional petroleumbased product if the quality was the same? Biobased Products and the Economy The theme of Questions #9 through #11 was to gauge Iowans opinions of the potential economic impact of biobased products. As illustrated in Figure 9, approximately 70% of respondents would be influenced to buy a biobased product if it was produced by an Iowa-based business. Similarly, more than three-fourths of respondents would be influenced to buy a biobased product if would help Iowa s economy (see Figure 10). Figure 9. How much would it influence your decision to buy a biobased product if you knew the product was produced by an Iowabased business? Figure 10. How much would it influence your decision to buy a biobased product if you knew it would help Iowa s economy, since many biobased products are made from corn and other plants grown in Iowa?

5 Questions #7 and #8 showed that respondents favored purchasing biobased products over traditional petroleum-based products when the quality and price are the same. However, if using agricultural feedstock to produce biobased products drives up the cost of food, this support changed drastically (see Figure 11). Approximately one-third of respondents were unsure how such claims would influence their decision to buy biobased products. The proportion of respondents who reported that this claim was not influential was still larger than those who reported that it was influential. Figure 11.Claims have been made that using agricultural feedstock, such as corn, to produce biobased products may drive up the price of food. How much does this claim influence your decisions whether or not to buy biobased products? Biobased Products and the Government. Questions #12 through #17 were designed to gauge Iowans attitudes about the use of biobased products within various government agencies. The aim of the first question in this section was to determine if Iowans were in favor of local government agencies using biobased products and biofuels. As illustrated in Figure 12, more than two-thirds of respondents thought it was important that local governments use biobased products and biofuels. As shown previously, cost is the primary factor for consumers when choosing between biobased products and traditional petroleum-based products. Figure 13 shows that the trend from Question #8 applies to governments purchasing biobased products as well. Nearly half of respondents thought the government should pay the same price for biobased products as they would for traditional petroleum-based products. Surprisingly, more than one-fourth of respondents thought the government should pay up to 10% more for biobased products. Respondents were in favor of their local governments purchasing biobased products that cost as much as, or even slightly more than, traditional petroleum-based products. Figure 12. Some local government agencies are using biobased products (such as paper goods and cleaning supplies) in government offices and using biofuels in their vehicles. How important is it to you that your local government agencies do this? Figure 13. How much should your local government agencies pay for biobased products for offices and vehicles, compared to the prices of traditional petroleum-based products? As mentioned, ethanol and biofuels have been the topic of much discussion in Iowa. To get an idea of how Iowans feel about the use of biofuels by their state and local governments, we asked Iowans if they thought government vehicles should use more or less biofuels. An overwhelming majority of respondents, approximately 71%, were in favor of government agencies using more biofuels in their vehicles (see Figure 14). This question was followed up by asking

6 how likely they would be to support the use of biofuels in state and local government vehicles if the cost was 20 to 30 cents more per gallon and if the fuel quality was the same as traditional petroleum-based fuels. Approximately half of respondents did not support governments paying 20 to 30 cents more per gallon for biofuel that is of the same quality as traditional petroleum-based fuel, and just more than one-fourth of respondents were neutral on this issue. The results from Figure 15 seem contradictory to the results from Figure 13. More than 25% of respondents thought their local government should pay up to 10% more for biobased products as opposed to petroleum-based products, but that answer flies in the face of the responses in Figure 15, which indicate that Iowans do not want government to pay more for biofuels than for standard gasoline or diesel fuel. This contradiction could be another area for future study. Figure 14. Currently some state and local government vehicles use biobased fuels (biofuels), such as ethanol and biodiesel. Do you think more government vehicles or fewer government vehicles should use biofuels? Figure 15. How likely would you be to support using biofuels in state and local government vehicles if the fuel quality was the same but the cost was cents more per gallon than for petroleum-based fuels? As shown in Figure 14, more than 71% of respondents felt that government agencies should be using more biofuels in their vehicles. This level of support approximately stays the same, with more than 70% of respondents (see Figure 16) supporting greater use of biofuels in government agencies if, over time, this use would reduce our dependency on foreign oil. The results illustrated in Figures 14 and 16 suggest that Iowans are highly in favor of their government using biofuels whether it reduces our dependency on foreign oil or not. Interestingly, these results do not exactly carry over to support for a political candidate who promotes the use of biobased products by government agencies (see Figure 17). Just more than one-half of respondents would support a candidate who promoted government use of biobased products, whereas approximately 30% of respondents were indifferent to this issue. While a majority of respondents like the idea of a political candidate that supports biobased products, the proportion of respondents was not as high as in Figures 14 and 16 because there are typically several other issues important to voters that shape their support of a politician. Figure 16. How likely would you be to support greater use of biofuels in government vehicles if you knew that, over time, it would reduce our dependency on foreign oil? Figure 17. How likely would you be to support a candidate for political office if you knew he or she would promote the use of biobased products by government agencies?

7 Up to this point, all the survey questions have assessed Iowans opinions of the use of biobased products within their own state. Question #18 was used to determine how Iowans felt about the use of biobased products across the country. Much like previous results, Figure 18 shows that more than 82% of respondents thought it was important for Americans to use environmentally friendly products. Figure 18. How important do you think it is for Americans to use environmentally friendly products? Iowa s Economic Conditions The purpose of Questions #19 and #20 was to assess Iowans attitudes on economic conditions in the state. Figure 19 shows that approximately 41% of respondents thought the economic conditions in Iowa have stayed about the same over the past year and approximately one-third of respondents thought conditions have worsened. However, respondents were more optimistic about the conditions in Iowa for farmers. Figure 20 shows that nearly one-third of respondents felt that the conditions for Iowa farmers had improved over the past year. Figure 19. In general, how would you say the economy in Iowa compares to a year ago? Figure 10. How would you say conditions for Iowa s farmers today compare to a year ago?

8 Statistical Analysis The purpose of recording demographic information is to determine if certain groups of people respond to questions differently. For example, are women more familiar with the term biobased products than men are? To answer such questions, various statistical procedures were conducted on the 16 Likert-item questions (#1 3, #7 12, and #15 20). An in-depth discussion of these statistical procedures can be found in Appendix B. Demographic differences in gender, age, and employment status were explored. However, gender and age differences were found to be the most relevant for the purposes of this survey. As such, only gender and age differences are discussed. Gender Differences Several statistically significant differences were found between the responses of men and women. Men were significantly more familiar with the term biobased products than were women. Men had also heard significantly more information about the use of biobased fuels (biofuels) in vehicles than women had. Men had heard significantly more information than women had about the use of biobased products such as cleaning supplies, building materials, and office supplies. In short, there is statistical evidence that men are more acquainted with biobased products than are women. Claims have been made that using agricultural feedstock, such as corn, to produce biobased products may drive up the price of food. These claims were significantly more influential on women and their choices to buy biobased products than they were on men. Similarly, women reported that it was significantly more important to them than to men that local government agencies use biobased products in their offices and biofuels in their vehicles. Women also reported that it was more important to them than to men that Americans use environmentally friendly products. Age Differences Three statistically significant age differences were found between various age groups. Respondents aged 71 or older were significantly less familiar with the term biobased products than respondents 56 to 70 years old were. Not surprisingly, respondents aged 71 or older have heard significantly less about the use of biobased fuels (biofuels) in vehicles than respondents 26 to 70 years old. An encouraging age difference was that more respondents 18 to 25 years old reported that they thought Iowa s economy was significantly better today than it was a year ago than respondents of any other age group. In summation, there appear to be some clear differences between men and women in their attitudes, beliefs, and knowledge about biobased products. On average, men reported that they had more knowledge about biobased products than women did; however, women were more in favor of the use of biobased products (in the situations discussed above) than were men. It also appears that elderly Iowans are less familiar with biobased products and biofuels than younger and middle-aged Iowans. These demographic differences can be used in several ways. One useful strategy for a biobased company might be to leverage these differences into an effective marketing campaign. For example, Iowa women appear to be less familiar with biobased products than are men, but they are in favor of their use by Americans. A biobased company might develop a marketing strategy that targets women consumers while highlighting the fact that their products are American made and environmentally safe. Biobased companies might also try to leverage the economic optimism of young Iowans into employment opportunities with their companies. Conclusions The survey results show a favorable attitude from Iowa consumers toward environmentally friendly products and willingness to purchase biobased products and fuel depending on price. In February 2011, the program goals of BioPreferred expanded with the release of the Voluntary Certification Label initiative for the mass-market consumer. It appears that Iowa consumers are willing to accept those products being available on the market. The purpose of the program is to increase the use and purchase of biobased products and, with regard to Iowans, there is a market available. However, as stated before, the main qualifier is price. Iowans will purchase biobased products only if they are similarly priced and have the same versatility as their petroleum counterparts. As biobased products become more

9 common within the market and consumer awareness increases, another study should be conducted to gauge whether or not opinions concerning biobased products have changed. Also, once the economy has stabilized and consumers have more discretionary income, differences in opinions could potentially happen. Acknowledgements We would like to thank Allison Anderson and Jan Larson of the Survey and Behavioral Research Services for their assistance in formatting the questionnaire and providing the appropriate method to reach participants. We would also like to thank the Ohio Soybean Council for providing a copy of a similar survey in order to have a frame of reference to model the report after. Additionally, thank you to Christine Hobbs of Hobbs Designs, LLC for her diligent editing throughout the entire process. Lastly, a large thank you is in order for the entire CIRAS staff that helped in the data collection and review of the materials for the entirety of the project. Appendix A: Demographics Figure A1. Are you male or female? Figure A2. What is your age? Figure A3. What is your employment status? Figure A4. If you work full or part time, please indicate which of the following industries you work in.

10 Figure A5. What is your primary source for news/information about Iowa? Appendix B: Statistical Analysis Tests for statistically significant mean differences were conducted on the 16 Likert-item questions (#1 3, #7 12, and #15 20) in the survey to determine if certain demographic groups responded differently. Sex To determine if males and females responded differently to any of the survey questions, responses to each Likert-type question were grouped into two factors, male responses and female responses. Means and standard deviations were then computed for males and females. A t-test was conducted on each Likert-item question to test the null hypothesis that the mean response for males and females was equal. As illustrated in Table A1, male and female responses were significantly different at the α = 0.05 level for Questions #1, #2, #3, #11, #12, and #18. Table A1. Significant mean differences by sex on Likert-type questions Sex mean sd mean sd t-ratio p-value α = 0.05 Q < *** Q < *** Q *** Q Q Q Values Range Q from 1 to 5 Q < *** Q *** Q Q Q Q *** Values Range Q from 1 to 6 Q Furthermore, on Question #1, males were significantly more familiar with the term biobased products than females were. Similarly, on Question #2, males had heard significantly more information about the use of biobased fuels

11 (biofuels) in vehicles than females had. On Question #3, males had heard significantly more information than females had about the use of biobased products such as cleaning supplies, building materials, and office supplies. Interestingly, on Question #11, more females reported that claims that the use of agriculture feedstock to produce biobased products may drive up food prices were significantly more influential on their decision to purchase biobased products than did males. On Question #12, more females reported that the use of biobased products in government offices and biofuels in government vehicles was significantly more important to them than did males. Finally, on Question #18, more females reported that it was significantly more important to them than did males that Americans use environmentally friendly products. Age To determine if certain age groups responded differently to any of the survey questions, responses to each Likert-type question were grouped into five factors: age groups 18 25, 26 40, 41 55, 56 70, and 71 or older. Means and standard deviations were computed for each of the five age groups. A one-way Analysis of Variance (ANOVA) was conducted on the means for each Likert-item question to test the null hypothesis that all five means are equal. As illustrated in Table A2, at least two group means are significantly different than each other for Questions #1, #7, and #19. Table A2. Significant mean differences by age on Likert-type questions Age ANOVA mean sd mean sd mean sd mean sd mean sd F- p- value value α < 0.05 Q *** Q Q Q *** Values Q Range Q from Q to 5 Q Q Q Q Q Q Range Q *** 1 to 6 Q

12 To determine which age group means were significantly different, a Tukey HSD post-hoc analysis was performed for all pairwise comparisons on Questions #1, #7, and #19. On Question #1, the only significant pairwise comparison was between age groups and 71+. That is, respondents years old were significantly more familiar with the term biobased products than were respondents 71 or older. On Question #7, there were three significant pairwise comparisons respondents 71 or older had heard significantly less about the use of biobased fuels (biofuels) in vehicles than had respondents years old, years old, and years old. On Question #19 there were four significant pairwise comparisons. More respondents years old reported that Iowa s economy was significantly better today than a year ago than respondents years old, years old, years old, and 71 or older. Employment Status Tukey HSD Q1 Q12 Q19 Category p-value p-value p-value E To determine if respondents of differing employment statuses responded differently to any of the survey questions, responses to each Likert-type question were grouped into five factors: Full-Time, Part-Time, Unemployed Looking for Work, Unemployed Not Looking for Work, and Retired. Means and standard deviations were computed for each of the five employment status groups. A one-way ANOVA was conducted on the means for each Likert-type question to test the null hypothesis that all five means are equal. As illustrated in Table A3, at least two group means were significantly different than each other for Questions #1, #7, and #12. Table A3. Significant mean differences by employment status on Likert-type questions Full-Time Part-Time Employment Status Unemployed Looking for Work Unemployed Not Looking Retired ANOVA mean sd mean sd mean sd mean sd mean sd F-value p-value α < 0.05 Q *** Q Q Q *** Values Q Range Q from Q to 5 Q

13 Q *** Q Q Q Q Range Q to 6 Q To determine which employment status groups were significantly different, a Tukey HSD post-hoc analysis was performed for all pairwise comparisons on Questions #1, #7, and #12. On Question #1 there were three significant pairwise comparisons. Respondents that are Unemployed and Looking for Work reported they were significantly more familiar with the term biobased products than Part-Time and Retired respondents were. Additionally, Full-Time respondents reported they were significantly more familiar with the term biobased products than Retired respondents were. On Question #7, Full-Time respondents were significantly more likely than were Retired respondents to purchase biobased products rather than traditional petroleum-based products if the price and quality were the same. On Question #12, Part-Time respondents reported that the use of biobased products in government agencies and biofuels in government vehicles was significantly more important to them than to Full-Time respondents. Tukey HSD Q1 Q7 Q12 Category p-value p-value p-value