What are some recent consumer behavior trends that are influencing the industry?
One word: GREEN. Consumers in the energy industry have been looking for ways to “do their part” and “save the planet.” However, this doesn’t mean people are using less energy; they are just looking for CLEANER ENERGY. In fact, because of the increase in technology over the last decade, people are plugging in more than ever: charging iPhones, leaving computers asleep, and watching their TiVos. According to the Department of Energy’s Lawrence Berkeley National Lab, electronics plugged in on “stand-by mode” (asleep or on) account for 5-10% of total home energy consumption.
The consumer’s search for cleaner energy is something energy companies need to focus on. While solar panels are becoming more affordable and accessible, the price of electricity has increased since 2009. Thus people are looking for renewable energy resources. Who wouldn’t want to reduce carbon emissions AND their energy bill at the same time??
Those consumers, who aren’t ready to commit to renewable energy, are still seeking clean energy, most notably, in appliances. Kenmore and other popular appliance brands have started advertising their environmentally friendly washers and dryers. 84% of consumers in the market for a new appliance consider energy efficiency over water and time savings, a 2009 Whirlpool Corporation poll discovered.
In short, energy companies should be advised of these new trends. People need energy but don’t want to destroy the world using it. Thus companies that provide reasonably priced, environmentally friendly energy will attract the most consumers.
(Source: Top 10 Home Energy Trends in 2011. Schneider Electric http://static.schneider-electric.us/assets/pdf/residential/Resi-Top-10-Home-Energy-Trends-in-2011-Brief.pdf)
That statistic about leaving electronics "asleep" accounting for a lot of energy consumption within the home is very interesting and astounding. You would think that with peoples shift toward green energy there would be some compassion towards preservation of energy. A statistic that could be similar to this one might be the amount of oil used when cars idle at fast food restaurants, at red lights, while waiting to pick up their children at school. Certainly these times when people don't actually need their energy consumers on a lot of valuable energy is being wasted as well as pollution to the environment. Do electricity costs from doing things such as leaving electronics plugged in have to do anything with the environmental pollution aspect of green energy? Which type of green energy is the most widely seen (preservation, anti-pollution, renewable energy)?
ReplyDeleteHow companies advertise their ability to use "green" energy should be a key component of the market section of our paper. Whenever you commercials for Exxon or BP, they often talk about what their doing do preserve the environment and use cleaner energy fuel.
ReplyDeleteWe need to look up statistics to see what companies are spending to research cleaner energy sources. Companies most concerned about preserving energy are the most likely to be around for a while.
Great research of the Dept. of Energy - definitely good statistics and quotes that could be useful in the paper.
Developing green energy is absolutely the future trend of the energy industry. If people can protect the environment and save their money at the same time, everyone would like green energy.
ReplyDelete