PROPANE CAN DO THAT QUALITATIVE CONCEPT TESTING PREPARED FOR THE PROPANE EDUCATION AND RESEARCH COUNCIL DECEMBER 2017

Transcription

1 PROPANE CAN DO THAT QUALITATIVE CONCEPT TESTING PREPARED FOR THE PROPANE EDUCATION AND RESEARCH COUNCIL DECEMBER 2017

2 BACKGROUND Having recently developed some new messaging concepts designed to encourage Propane usage among current and potential Propane users among residential consumers PERC sought to assess the resonance of these concepts via qualitative focus groups. More specifically, the overarching goal of the study was to determine which concepts related to the Propane Can Do That theme connect with Propane Users and Non-Users in terms of relevance and appeal. Assess which specific elements (messages, imagery, etc.) resonate effectively and identify which elements can be improved and which should be abandoned. Explore which visual, emotional and rational cues engender the strongest sense of connection to Propane. The findings from this study, or any qualitative study, are intended to be directional due to the exploratory nature of this method. As such, these findings are not projectable to the population at large nor can they suggest statistical reliability/accuracy. The value of this method is to gain understanding and explore some of the dynamics of attitudes, usage and behaviors that can not always be obtained via quantitative methods. 2

3 SAMPLE AND METHODOLOGY minute focus groups Consumers who do not live on a natural gas line Des Moines, Iowa, November 28 th Sacramento, California, November 30 th, 2017 Propane users are defined as those that use Propane for either: home heat, cooking, water heater or clothes dryer. Sample Profile 9 Men 8 Women Des Moines 8 Propane Users 9 Non-Users 8 Men 8 Women Sacramento 9 Propane Users 7 Non-Users 3

4 KEY FINDINGS 4

5 PROPANE CAN DO THAT SPEAKS TO BOTH USERS AND NON-USERS It effectively brings Propane to top of mind and engenders curiosity about what Propane can do. It's more diverse than we think. Sacramento - Female Might be open to listening to a presentation about Propane, or more information about it. Des Moines - Male It makes me curious on what can it do. Because I don't know a lot about Propane either. Des Moines - Male Curiosity is piqued, with users and non-users alike. Non-users wonder what it can do. Users want to learn what else it can do beyond what they know of Propane now. 5

6 Key Idea RESIDENTIAL APPLICATIONS ALIGN WITH EXPECTATIONS While seeing most of the Propane applications in action is not surprising, the notion of a back-up generator is not something many have considered. When looking at the image of different Propane applications, most feel the applications are aligned with their expectations of Propane. Most (Propane Users and Non-Users) are aware of Propane s household applications, but say they don t think about it consciously. Those without personal experience with Propane do struggle to recognize the tangible benefits of residential use (i.e., warm, comfortable heat). Non-Users have generally not considered switching to Propane because they do not want a tank in their yard. But the tagline Propane Can Do That effectively elevates Propane to top of mind and makes them give it more thought. This tagline, coupled with a reminder of all the household applications, could be effective. 6

7 BACKUP POWER SPEAKS TO A REAL NEED Frequent and prolonged power outages create interest in Propanefueled backup power. Many respondents experience frequent and prolonged power outages in their homes particularly those in rural areas. Other than a few respondents in Sacramento who use solar power, the idea of Propane backup power is enticing. When considering using it in their own home, thoughts follow two distinct paths: Some see it as a slam dunk, and immediately wonder about installation. They start to wonder how much it would cost and how disruptive it would be to install a Propane generator in their own home. Others are interested, but question feasibility. How long it can run between fill-ups? How much power it can generate? How noisy will the generator be? What is the aesthetics of having a tank and generator in my lawn? Actually, there are Propane generators so that's what I want when I build my new house. Where I want to build my house there's not even electric lines right now, so we'd be on the end of the line. I'd want to have back up and Propane, you don't have to worry about it. It doesn't get old like gasoline. You get old gas and it doesn't start the engine. So, Propane you don't have to worry about that. It burns cleaner. Des Moines - Male 7

8 Key Idea TANKLESS WATER HEATERS GENERATE BUZZ Current users rave about the convenience and cost savings. Respondents who currently have a Propane-fueled tankless water heater love the convenience and cost savings it provides. Tankless water heaters have a broad appeal among homeowners whether they currently use Propane or not. I just put in a tankless hot water heater and I love it. Sacramento - Female We switched over to a Propane, tankless, and we got down to like $200 a month. Sacramento - Male Homeowners who currently use an electric water heater speculate that an electric tankless water heater would cost a lot more to operate than a propane model. As a result, they see Propane as a natural fit for this application. 8

9 SAFETY IS A LATENT CONCERN AROUND PROPANE The source of this concern does not appear to be specific to Propane itself, but is generalized to all fuel sources. Overall, respondents share the same concern about Propane safety as with any fuel that burns in or around their homes and families. When comparing the safety concerns they have with Propane versus other fuels such as natural gas, the level and nature of the concern are similar. I'm not a whole lot sure how Propane is made and I would need to do research and find out how it was made and then make sure it was safe. Sacramento - Female Lack of familiarity with Propane creates a certain novelty around it, which in turn brings safety to the forefront. The safety of Propane use is a concern for those who have limited or no experience with it as a fuel source. Current Propane users have few safety concerns about Propane. I'd be concerned about safety. Just because I don't like flame Des Moines - Female 9

10 PERCEPTIONS ABOUT PROPANE SUSTAINABILITY ARE MIXED Cleaner emissions are seen as a positive for Propane, but there is some angst about Propane being a fossil fuel when asked. There is a wide-held belief that Propane emissions are cleaner than other fossil fuels. While there may be some confusion about Propane s status as a fossil fuel, most recognize that Propane is a fossil fuel. Therefore they do not think of Propane as a sustainable or renewable energy source like solar, wind or hydro. While to a lesser degree than other fossil fuels, Propane does carry some of the baggage of being a fossil fuel (i.e., bad for the environment) regardless of its actual emissions relative to other fossil fuels. Notably, respondents in both Des Moines and Sacramento appear sensitive to the idea of emissions in that they understand fewer emissions are better for the environment and their communities. It's not renewable and it's stemming from a source that I think that we have to, from a larger environmentally global [standpoint], we have to steer away from. Sacramento - Male 10

11 Key Idea NON-RESIDENTIAL APPLICATIONS DESIGNED TO START A CONVERSATION ABOUT PROPANE While learning about non-residential applications of Propane is interesting, it is not viewed as compelling enough to change their thinking about Propane or for Non- Users to think about converting. The fact that Propane can be used as a fuel for internal combustion engines is not something most have thought about before. However, they do like the idea as they view Propane as a cleaner energy source than diesel or gasoline. Forklifts are viewed as a common non-residential application for Propane among homeowners. The direct benefits of using Propane in forklifts are not intuitive but some point to cleaner emissions and simplified maintenance. Grain drying and crop irrigation are the applications homeowners are least familiar with. Crop irrigation is the most surprising for many people because when they think of Propane applications heat generation naturally comes to mind. Despite academic interest in non-residential use of Propane, these applications are not viewed as relevant to homeowners and are not likely to generate interest in residential uses of Propane in the home. 11

12 BUSINESS AND COMMUNITY BENEFITS DO NOT CONNECT Seeing business uses of Propane and the resulting benefits to the community may be interesting but does not change their thinking about Propane. Homeowners have an easier time seeing how they can personally benefit when businesses use Propane, but this is still not a driver for them to use Propane in their homes. Homeowners have a very difficult time linking the benefits a business enjoys from using Propane to the motivation to use/expand use of Propane in their home. The assumption is that the business chose Propane as a fuel source because it is the most economical choice for that business. However, this does not necessarily motivate residential users or potential users as residential and business applications are seen as unrelated. 12

13 Key Idea RATIONAL HEADLINES SPEAK TO CONSUMERS MORE EFFECTIVELY THAN EMOTIONAL HEADLINES Consumers connect with rational benefits of Propane but are pushed away by emotional appeals and imagery, which they see as disingenuous. The two most resonant ideas speak to practical Lower energy bills benefits. Works when the power goes out Incredible comfort. Lower energy bills. Bake a cake. Raise a family. Make warmer memories. More precise control than electric ranges? Keeps your family safe and warm. Even when the power goes out. Received well for its rational approach and speaking to lower energy bills. Incredible comfort is seen as somewhat hyperbolic by a few. Most respond negatively to the emotional appeal, seeing it as a saccharin and overly personal approach for something viewed as a utility. Received well by many current users because it speaks to a core rational benefit of Propane. However, many reacted negatively to the headline structured as a question. Many felt this characteristic is true and should be clearly stated. Compelling emphasis on the backup generator idea, would be ideal if it integrated the key message of Lower energy bills. 13

14 COMBINING BENEFITS AND APPLICATIONS STRONGLY CONNECTS Using elements from several concepts creates an effective combination and reinforces all of the things Propane can do. Stimulus that combines images of multiple household applications with each headline spoke directly and rationally to homeowner benefits without an overly emotional appeal. These concepts are very well received. Respondents connect with the straightforward utility of the concepts, and with images of household applications showing clearly what Propane can do. Is very well-received because it speaks directly to homeowner benefit, and addresses the most critical consideration for everyone: cost savings. The idea of an upgrade intrigues people and brings Propane top of mind, but in order to move forward in the decision making, speaking more directly to homeowner benefits is necessary. 14

15 Key Idea CROSS-MARKET HEADLINES AND IMAGES DON T RESONATE Benefits to business owners are not seen as applicable to homeowners. H E A D L I N E S Neither headline More versatile. Harder working. or Fuel your can-do spirit are met with strong positive reactions that change the way homeowners think about Propane. Neither stand out in terms of motivating residential applications for Propane. I M A G E S Reactions to the images are neutral to negative. The business-focused approach has little emotional appeal or practical connection to homeowners. Note: Some also notice and are strongly put off by the Trump logo. The idea of cross-marketing Propane is difficult to convey to homeowners more focused on day-to-day needs/concerns. Consumers simply cannot make the connection between the business and the benefit to them. 15

16 Key Idea SEEING PROPANE IN USE MATTERS Homeowners want to see the tangible benefits Propane can provide them and their families. Respondents identify with the family and connect with the use of a Propane fireplace (Incredible comfort, Lower energy bills, warm heat) in the background. This concept (headline, visual and tagline) is very well-received. When you see a fireplace you think nice and warm. Des Moines Male It makes sense. The fire's in the background, they're heating the home, it's comfortable, warm and fuzzy. Sacramento Male I guess one of the qualities of Propane I really like is it radiates the heat so the floors are warm, the couch near the fireplace is warm, everything's warm. You don't get that with just the electric heat coming in. Sacramento Female Effective ads convey the warmth of Propane visually, while headlines speak to its practicality. Images of Propane in use and its emotional benefit to families. Headlines which outline the practical benefits of Propane use 16

17 COLD BASEMENTS, MODERN LOOKS, AND ICONOGRAPHY STRUGGLE TO RESONATE Respondents find the image confusing and off-putting, with some wondering if the man in the photo was a repairman. The basement setting is cold and uninviting. Cold color schemes, modern designs, and no visual use of Propane generates a negative reaction. While the overall reaction to the infographic approach is mostly negative, it is in the context of the other concepts that display real people. Several comment that this image would be more appropriate as an ancillary use, such as in a sidebar or on the back of a brochure. 17

18 Key Idea RETAILER-COMMUNITY RELATIONSHIPS DON T MOTIVATE CHANGES IN PERCEPTIONS OF PROPANE Knowing who the retailer is as a person and the relationship they have with the community does not serve as a motivation to select Propane for their home. Many current Propane users report a good relationship with their Propane retailer because they see them several times a year. The expectation is that the retailer will provide the service they promised at a competitive price. For most, this is all that is required of the relationship. Unless they are extremely negative, relationships with retailers don t impact purchase behavior. Even when a retailer has a poor relationship with the customer, the customer can find a new retailer (or look to replace them in the future) it won t stop them from using Propane. 18