Gauging Consumer Appetite for Super Efficient (Heat Pump) Dryers

14 September 2017

Ingo Bensch,Evergreen Economics

Co-authors

2

Evergreen Economics• Ted Helvoigt

Northwest Energy Efficiency Alliance• Amy Webb-Cabrera• Stephanie Q. Baker

Overview

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Context• Reasons to care about clothes dryers• The new kid on (this continent’s) block• NEEA’s super efficient dryer initiative

Characterization Study• Big picture• Research questions and methods

Results & Implications• Focus group insights• Web panel survey & stated choice results• Implications

Clothes dryers … (nearly) same as it ever was.

4

Pic

1973First hand-held

cell phone 1989Flip-phone introduced

2002First

smart phone

1930sRoss Moore invented electric dryer (1930).

Hamilton Beach manufactured first

commercial units (1938).

1940s / 50sMoist air venting and time-based controls

added (1946)Dryness sensors added

(1959)

201780% of US hhlds have a clothes dryer. Nearly all

use the same basic technology.2007

Apple iPhone is released

The new kid on the block

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Meet the heat pump-based

dryer!

The super efficient dryer initiative

6

Increases adoption of heat pump technology through marketing, consumer awareness activities, and retailer partnerships

Supports manufacturer development of heat pump dryers for the U.S. market

Influences improved federal test protocols and more stringent federal efficiency standards for clothes dryers.

A characterization study

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Market CharacterizationYear 4 - 5

Market Transformation Lifecycle is About 20 Years

Consumer-oriented research questions and methods

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Research questions about… 6 focusgroups (50

parts)

Web panel survey (n=620)

Laundry practices X XDryer replacement cause & process X XDesired characteristics X XAwareness of HP tech and dryers XDisposition toward new tech, hp XFit of hp dryers in theoretical shopping basket X XRole of EE, ENERGY STAR, operating costs XWillingness to pay and trade-offs X

Dryers are secondary for focus group participants

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“I’d purchase a dryer if my old one breaks, or as part of a paired

purchase with a washer.”

“I don’t think much about my dryer”“I’d be willing to pay

more for an ENERGY STAR® branded dryer,

and I don’t even need to know how much energy

it would save.”“I’ve heard of

heat pumps, but I don’t really get how they work.”

Other focus group take-aways

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Practices No single person / multiple stakeholders Varied timing (sched vs. as needed) Varied separation & alt drying

Shopping Many ideas of an informed process But still emergency replacement

Key features size/capacity EE reliability drying time value and price

Few NEBs distilled

Positive initial reaction to HP dryers

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Web panel survey stated choice

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Price

Energy savings

ENERGY STAR®

Drying time & temp

Respondents saw two sets of choices

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Choice A

Choice B

Choice C

Choice D

Cost

$600

$1,200

$1,000

$700

Energy Savings (reduced energy consumption compared to basic dryer

0%

50%

25%

10%

Drying temperature and time

Normal temp (with standard drying times of 45-60 minutes)

Lower temp (with drying times that are 50% longer, but safe for a fuller range of clothes)

Normal and lower temp (setting that lets you choose)

Normal temp (with standard drying times of 45-60 minutes)

ENERGY STAR

No

Yes

Yes

Yes

Your Preferred Choice

Figure 1: Example of the First Panel of the Stated Preference Questionnaire

HP-based dryers make the cut(in the abstract)

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Interest in heat pump dryers less price sensitive

15

0

10

20

30

40

50

60

70

80

90

100

$600 $1,600

Perc

enta

ge o

f Res

pond

ents

Product Cost

heat pump

hybrid

The market characterization provided actionable insights for the dryer initiative

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In developing the consumer value proposition…

In offering incentives for pure heat pump dryers…

Insights regarding:• Interest in energy savings• Appeal of ENERGY STAR®• NEBs not compelling• Dryer purchase behavior and

laundry habits

Elevated retail presence as a key strategy to level the playing field

In working with retailers to floor heat pump dryers

Revelation of inelastic demand for pure heat pump dryers did not change the initiative’s incentives strategy

Thank you

17

Ingo BenschEvergreen Economics

bensch@evergreenecon.com608-628-6701

www.evergreenecon.com

Gauging Consumer Appetite for Super Efficient (Heat Pump) DryersCo-authorsOverviewClothes dryers … (nearly) same as it ever was.The new kid on the blockThe super efficient dryer initiativeA characterization studyConsumer-oriented research questions and methodsDryers are secondary for focus group participantsOther focus group take-awaysPositive initial reaction to HP dryersWeb panel survey stated choiceRespondents saw two sets of choicesHP-based dryers make the cut�(in the abstract)Interest in heat pump dryers less price sensitiveThe market characterization provided actionable insights for the dryer initiativeThank you