Pacific Ethnol

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Copyright Group 4 Consulting Firm 2009

This document is strictly copyrighted. Reproduction in any form whatsoever is

prohibited and libraries should not permit photocopying without prior arrangement.

ISBN: 123457 6087

Disclaimer

This edition of the Pacific Ethanol has been prepared with painstaking care but the

editors cannot accept responsibility for any errors, which may have occurred during its

compilation. We would welcome comments and feedback about the contents to assist in

the compilation of subsequent editions.

Printed in United States

2 Group 4 Consulting Firm 2009


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Table of Contents EXECUTIVE BRIEF ........................................................................................................................................... 5

INTRODUCTION ............................................................................................................................................. 6

SAMPLING .....................................................................................................................................................

6

BACKGROUND ............................................................................................................................................... 6

Industry Analysis ........................................................................................................................................... 7

Company Analysis ......................................................................................................................................... 7

OVERALL SAMPLING PLAN ............................................................................................................................ 9

Definition of Population Surveyed ............................................................................................................ 9

Sampling Frame

........................................................................................................................................

9

Sampling Size ............................................................................................................................................ 9

Sampling Error........................................................................................................................................... 9

QUESTIONS & DATA ANALYSIS.................................................................................................................... 10

Question 1: .............................................................................................................................................. 10

Question 2: .............................................................................................................................................. 11

Question 3a:

............................................................................................................................................

12

Question 3b: ............................................................................................................................................ 13

Question 3c: ............................................................................................................................................ 14

Question 3d: ............................................................................................................................................ 15

Question 3e: ............................................................................................................................................ 16

Question 3f: ............................................................................................................................................ 17

Question 3g:

............................................................................................................................................

18

Question 4: .............................................................................................................................................. 19

Question 5: .............................................................................................................................................. 20

Question 6: .............................................................................................................................................. 21

Question 7: .............................................................................................................................................. 22

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Question 8: .............................................................................................................................................. 23

Question 9: .............................................................................................................................................. 24

Question 10: ............................................................................................................................................ 25

Question 11: ............................................................................................................................................ 26

Question 12: ............................................................................................................................................ 27

Question 13: ............................................................................................................................................ 28

Question 14: ............................................................................................................................................ 29

Question 15: ............................................................................................................................................ 30

Question 15: ............................................................................................................................................ 30

Question 16: ............................................................................................................................................ 31

Question 17: ............................................................................................................................................ 32

Question 18: ............................................................................................................................................ 33

Question 19: ............................................................................................................................................ 34

Question 20: ............................................................................................................................................ 35

CROSS TABULATION .................................................................................................................................... 36

SURVEY PERSONA ....................................................................................................................................... 38

CONCLUSION ............................................................................................................................................... 38

WORKS CITED .............................................................................................................................................. 39

E 85 Draft Survey ......................................................................................................................................... 41

Planning Questions ..................................................................................................................................... 48

Final Survey ................................................................................................................................................. 49

Raw Data ..................................................................................................................................................... 52



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EXECUTIVE BRIEF

Pacific Ethanol has been on the Stock market for over ten years. In that time the company hasgone from trading at forty-four dollars a share to it's lowest of forty-three cents a share as of May

8th 2009. Over the last few years the government has began to enforce Renewable FuelsStandard which has help Pacific Ethanol stock price in the past. However now we see that thefuture for this company lays in the price of corn compared to the price of regular gas.The Goal for Group 4 was to find out if the lack of knowledge about E85 is affecting sales, knowhow much people were willing to pay for converting their cars, how affective the flex fueladvertising campaign has been and finally find out if peoples view of sustainability really affectethanol sales.To do this Group 4 facilitated an online survey to people ages 18-55 in the greater metro area.

The teams goal was to have 60 participants complete the online survey. The survey went live onMay 12th and concluded on May 31st. In total Group 4 hit its target number for the survey.What Group 4 found from the survey was that the typical person surveyed was female between

the ages of 30-34. They graduated from a four year university. She drives a non flex fuel vehiclearound town all week long. On average she drives 175 miles a week and spends $100 on gas.Overall she thinks she is over spending on gas. The average surveyor believes that the currentenvironmental efforts and policies in the U.S. are important. They believe that they could bebetter informed about the environment and other green initiatives that are going on. They preferto purchase products that are environmentally friendly, and they make it a priority to beenvironmental conscious in their everyday life. They are also willing to pay 5% more for greenproducts. The main reason that they buy fuel from their favorite gas station is convenience,within five minutes of their home. On average they would buy E-85 at these gas stations if it wasavailable, priced lower than gas, and if their car could be converted to run E-85. They would bewilling to spend up to $100 to upgrade their vehicles to run Flex Fuel. They have not seen ads for

E-85. Thus with no exposure to ads or vehicle ability, they have not purchased E-85.

Group 4 suggests that Pacific Ethanol invests money into buy land to grow its own corn. Signmulti-year contracts to keep prices stable. Look into government funding to offset some of thecorn prices. Co-market an advertising campaign with the government to raise the awareness of running E-85. And lastly find ways to get States to help with E-85 stations in forms of a rebate ortax incentive to open a new station or convert an already existing station. Lastly Group 4 believes that Pacific Ethanol need to partner with other manufactures of E-85 tostart a grassroots campaign to get ethanol out there. With 82% of people surveyed not buying theproduct and 56% not seeing an advertisement for E-85 there is a lot of work need to bring thiscompany back to life



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INTRODUCTION

We did a study to see how well ethanol gas is being marketed to the general public. Thefocus of the study was on the company Pacific Ethanol Inc. They are a leader in producingand marketing lowcarbon ethanol. We used a webbased survey administered to peoplearound the Portland area. The type of ethanol that is mostly used in the Northwest is cornbased, specifically E85. The company currently uses the marketing strategy of marketingto distributers, not the general public. We think that in order for sustainable gas to becomepart of the sustainable movement they will need to change their strategy and administer to

the general public.SAMPLING

The population we looked to survey were people between the ages of 1855, fromeither gender. They all lived in the northwest. They needed to provide informationregardi inng how they felt about how much they paid for products, why they purchase certaproducts, and how they feel about sustainability.

We used an online survey that was administered through both the internet and inpaper form. It took the recipient approximately 5 minutes or less to complete. All Threegroup members administered the survey. The survey was launched on May 12 th andconcluded on May 31 st , 2009. As a group we required each individual of the group to gather

at least 20 completed questionnaires. As a group we hit our target number and exceeded it by five percent. In total we received 63 completed questionnaires. These surveys were thenanalyzed with the SPSS, Excell, and the VOVICI EFN Continuum software. The data was thenused to help answer the three objectives of this study.

BACKGROUND

Originally formed to broker auto repair, Pacific Ethanol Inc. is now a leader in producingand marketing lowcarbon ethanol. Ethanol is an alternative source of fuel that is producedby converting starch through fermentation of grain crops, mainly corn. It is then added togasoline and sold to the everyday consumer. It can be blended in two different ways: withup to 10% ethanol with the remainder 90% gasoline; or at 85% ethanol with the remainder

15% gasoline. The latter is referred to as E85 or Flex fuel and will be the focus of ourstudy.

Pacific Ethanol Inc. owns four production facilities located in Oregon, Idaho, and twoin California. They also own a 42% interest in Front Range Energy LLC, who runs a facilityin Colorado. Combined, all five plants can produce a total of 248 million gallons of ethanola year. Their growth strategy revolves around the destination business model, where eachrespective ethanol plant achieves lower process and transportation costs by servicing localmarkets for both fuel and feed (pacificethanol.net). Their biggest customers are Chevron



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and Valero, who then mix and sell the product to consumers (Pacific Ethanol Inc). Thecompany also markets and sells a product called wet distillers grain or WDG. This is thebyproduct after the starch has been fermented out of the grain. It contains proteins, fats,fiber, minerals and vitamins which is concentrated and fed to dairy and beef cattle, poultryand swine (pacificethanol.net).

Industry Analysis

The biofuels industry in the U.S. includes about 200 companies with combinedannual revenue of about 3 billion. It is a young industry that has grown at a rate between25 and 50% each year. New companies enter the industry constantly and breakthroughs innew technology are frequent. Barriers to entry are fairly low due to federal and statesubsidies and loan guarantees (Biofuels Production).

Demand for biofuels is driven by federal legislation and regulations that establish agovernmentmandated market. The Energy Independence and Security Act of 2007significantly increased the mandated use of renewable fuels to 9 billion gallons in 2008,with an incremental rise to 36 billion gallons by 2022 (Gas Stations). Congress has also

been talking about a bill that will require 75% of new vehicles to be able of using analternative fuel, such as E85, by 2015 and 100% by 2020 (Stoffer, 4).

Ethanol makes up over 90% of the current U.S. biofuels production of about 4 billiongallons per year. The profitability of production facilities depends on the price of gas anddiesel, which fluctuate based on world petroleum demand and domestic refineryutilization. Economies of scale are limited due to the transportation costs associated withgathering feedstock and transporting the ethanol to blending sights. Most large companiesrun multiple production facilities for this reason. Ethanol cannot be transported throughpipe lin henes because it is highly corrosive and readily absorbs water. This causes issues wtransporting it from production facility to the blending facility (Biofuels Production).

The major customers of biofuel companies are motor vehicle users who buy thealternative fuels blended with their regular petroleum products. Roughly 6 million GM,Ford and Chrysler late model vehicles are equipped to run on E85. There are alsocompanies that produce conversion kits for fuel injected cars to run on the alternative fuel.Right now the price of ethanol is pegged to the wholesale price of gas, but the federalgovernment estimates that the longrun wholesale price of ethanol will be around $1 agallon (Biofuels Production). Between government legislation and the demand for moreecofriendly, sustainable products, the biofuels industry has a very promising future.

Company Analysis

The financial performance of Pacific Ethanol Inc. has been declining in recent years. On itsstart date of March 24 th, 2005, the stock opened at a price of $9.30. From that point, it reached ahigh in May 2006 of $44.50 only to hit a low of $.20 in March 2009. The current price per sharewas $.38 on April 29, 2009. Looking at their financial statements and computing financial ratioshas shown this decline in performance. Their current ratio, which is a measure of liquidity onhow many times their current assets cover their current liabilities, has declined dramatically. In2006 the ratio was 4.15, but as of 2008 it was .20. For profitability measures, return on assets(ROA) and return on equity (ROE) were looked at. The ROA ratio illustrates how well



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management is employing the company's total assets to make a profit. The ROE measureshow much the shareholders earned for their investment in the company. Both ratios havedeclined since 2006 and are now negative as of 2008. When looking at their debt, wecomputed a debt ratio, which compares a companys total debt to its total assets, and adebtequity ratio, which compares the companys total debt to shareholders equity. The

lower the ratios are the stronger equity position is for the company. Unfortunately, both of these ratios have been increasing since 2006 to unhealthy numbers (Pacific Ethanol Inc.).Even though their sales have increased to over 700 million, their costs of goods sold,increasing debt and increased selling and administrative expenses have had a dramaticimpact on the financial performance of Pacific Ethanol Inc.Even though the financial performance of the company has not been very successful in recentyears, the company does have the infrastructure in place to prosper in a very young, fast growingindustry. Looking at the companys strengths and weaknesses from an internal standpoint, andtheir opportunities and threats from an external standpoint, will give us a better understanding of where they are positioned and how to utilize it. One of the major strengths for Pacific EthanolInc. is their infrastructure, which was mentioned earlier. They have the capacity to produce over

240 million gallons of ethanol annually. Their ability to sell WDG, which is the waste productof producing the ethanol, is also strength for the company. Being able to market and sell almostevery fa cet of production, including the waist, is an advantage for any company. Selling theseproducts in their local markets is also a plus, cutting down on transportation costs.

The company is not without its weaknesses though. Their financial performancehas obviously been struggling. They continue to increase their sales, but at the same timetheir net income continues to fall. The amount of debt that they have compiled frombuilding their infrastructure is also a weak point.

The opportunities for the company can shed some light on the subject. They are inan industry that is still very young. With all the forms of government legislation that arebeing imposed, there is going to be a higher demand for ethanol that ever before. The

increased awareness of the effect products have on the environment will also help thecompany. According to a report by the Congressional Budget Office (CBO), in the short run,the production, distribution, and consumption of ethanol will create about 20 percent fewer greenhouse gas emissions than the equivalent processes for gasoline. For 2008, sucha finding translates into a reduction of about 14 million metric tons of carbon dioxide andequivalent gases, which is a standard measure of greenhousegas emissions (10). Eventhough not all cars are able to currently run on an E85 blend, some companies now have adevice that will allow most fuel injected cars to run on the product. This will also increasethe demand for ethanol.

There are two major external threats for Pacific Ethanol Inc. The demand for cornfor ethanol production, along with other factors, exerted upward pressure on corn prices,

which rose by more than 50 percent between April 2007 and April 2008. Rising demand forcorn also increased the demand for cropland and the price of animal feed. Those effects inturn raised the price of many farm commodities and the retail price of food. From April2007 to April 2008, the rise in the price of corn resulting from expanded production of ethanol contributed between 0.5 and 0.8 percentage points of the 5.1 percent increase infood prices measured by the consumer price index (CBO, 9). Another threat to ethanol isthat cars do not get as good of gas mileage when running on it compared to regulargasoline; estimates range around a decrease of 15%. Also, the alcohol used in making the



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alternative fuel is said to have corrosive properties on rubber and plastic, so your vehiclemust be set up to run on it (Gritzinger, 18). The increase in food prices andunderperforming in automobiles have been the two major critiques of the production of ethanol as an alternative source of fuel.

OVERALL SAMPLING

PLAN

Definition of Population Surveyed

The people surveyed were individuals living in and around the Portland area that driveand care about the environment. The people that were surveyed provided informationbased on their perceptions of sustainable energy.

Sampling Frame

eScreening questions will be asked to identify qualified respondents. Respondents werasked (1) Do they drive and (2) Do they care about sustainability.

If they answer Yes to both questions, they qualify to take the survey. If they do not, thecan purchase gas in other waysrespondent was still allowed to complete the survey as theysuch as mass transit. So it was still important to us to gather their information.The survey was administered May 12 th to May 31 st of 2009.We administered it to people in our reach, specifically to students and employees of: PSU,Umpqua Bank, US Bank, Torani, Le Gourmet Chef, Intel, several law firms and Jack Morton.We also used Myspace.com to distribute some of the surveys. We asked the people that wecontacted if they could pass along the survey to others to complete as well, so we couldgather the most surveys as possible. We ended up with a total of 103 responses to thesurvey but only 63 surveys were completed. The difference in completed surveys andresponses is due to computer error or interruption.

Sampling Size

This survey was administered by 3 students who had to collect at least 20 completed

surveys each. The total number collected actually turned out to be 63.

A requirement of this survey was that we should be able to rely on the results to at least a

95% confidence level. We are uncertain of factors such as standard deviation, so when

calculating sampling error, we will use a 5050 percentage method for the values of P and

Q. Therefore, using the formula below, our estimated sampling error was 12.3%.

Sampling Error

%3.12663

)50)(50()96.1( 2==e



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QUESTIONS & DATA ANALYSIS

Question 1:

D

o you drive a motorized vehicle?

Our first question was to know if the respondent drives a motorized vehicle, and if theiranswer was No, the survey will be disabled, and thats because we are looking for thepeople who use fuel often.



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Question 2:

I s your vehicle a Flex Fuel Vehicle?

This graph shows that a very small percentage of people actually have cars running on flexfuel, and approximately 2 thirds have cars that run on gasoline. the interesting one was that

0 % of the people didnt know if their cars was running on either flex fuel or gasoline.2



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Question 3a:

urrent environmental efforts/policies in the U.S. are important to me. C

Almost 90% of people who took the survey agreed that the environmental efforts/policiesin the U.S. are important to them, which shows that advertising and informing people about green products is a good way to increase sales.



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Question 3b:

I am well informed about environmental problems.

A big portion of people are informed about the environmental issues (problems). That being known, we could promote our products by showing how will it be friendly to the

nvironment, and how could our product help solving the problems.e



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Question 3c:

I feel I could be more informed about green initiatives.

As the previous 2 questions showed, informing people about the environment and thesolutions to the problems could be a big factor in our case.



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Question 3d:

I

prefer to purchase products that are environmentally friendly

The big majority of people prefer to buy environmentally friendly products, so if we could

ake our products affordable, people are willing to buy it.m



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Question 3e:

B

eing environmentally conscious is part of my daily life.

Having in mind that people care about the environment and that it is in their daily routines,shows that we could easily market our products in this type of markets.



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Question 3f:

I

prefer to buy products from businesses that are environmentally friendly.

Relates to the previous question, if someone cares about the environment and its in theirdaily life, they are going to prefer to work and buy products from environmental friendly

usinesses.b



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Question 3g:

T

he environment is important to me.

A summary for all 6 previous in that one, more than 95% of people actually care about theenvironment, and for more than half of those people, the environment is very important.

hat is a very promising for a green business.T



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Question 4:

A

re you willing to pay a premium for green products?

This question is actually one of the most important questions if not the most. Knowing howmuch people are willing to pay for green products is the first thing to take in mind when

ntering a market or trying to establish yourself in an existing market.e



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Question 5:

How much would you be willing to spend to convert your car to E-85 (E85 is an lcohol fuel mixture that typically contains a mixture of up to 85% denatured fuel thanol and gasoline or other hydrocarbon (HC) by volume.)

ae

27 % of people arent willing to convert their cars if its going to cost them money. on theother hand, everyone else is willing to pay at least 100 dollars to convert their cars. That shows that there is a big portion of people who are willing to pay a reasonable amount of dollars to convert their cars, which could be promising.



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Question 6:

H

ow often do you see advertisements for Flex Fuel vehicles?

This question shows that a big issue that affects the sales of flex fuel is advertising. Onlyone person said that she/he sees advertising about flex fuel more than once daily. More

an half the people said that they havent seen advertisements for flex fuel.th



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Question 7:

I n a one week period, how frequently do you drive?

More than 2 thirds of people drive almost every day. Taking in mind what we got in thequestions about the importance of the environment, we know who our target market is,

at way we know how and where to promote our product.th



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Question 8:

H

ow many miles a week would you say you drive?

On average, people drive 175 miles per week. The average U.S. vehicle mpg is 19.8, and theaverage tank size is 16 gallons. That being said we know that people who drive, visit gastations approximately every week and 4 days.s



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Question 9:

I n general, do you feel that gasoline prices are:

More than 80 % of people think that gas prices are high. Promoting our product could be byinforming our customers that they could save money on fuel by using it.



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Question 10:

T

hinking back on the last several months, how often do you buy E-85 grade gasoline?

This simply says that the majority of people never buy E85 because they arent wellinformed about it. This survey showed that the majority of people have the ability to buy it

they knew more about it.if



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Question 11:

hat is the most important reason for NOT purchasing E-85 grade gasoline? W

Again, most people are not wellinformed about it, thats why they arent buying it.



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Question 12:

About how many minutes does it take to drive to the gas station you frequent most often?

90 % of the people drive less than 10 minutes to drive to gas stations. If we want topromote E85, we are going to have it available around the city so people dont have to go

r long drives to get fuel.fo



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Question 13:

Again, think about the gas station you frequent most. What are some of the reasons his gas station is your favorite? (Check all that apply) t

Other Responses:

My car runs off of diesel, cant use E85

club member

don't like the other gas stations



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Question 14:

Do you live or work close to any of these locations



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Question 15:

H

ave you ever bought E-85 from any of these locations



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Question 16:

I n an average month, how much do you spend on gas

As we got in our background research, E85 costs less than regular gasoline. Having carsrunning on E85 is going to make people save money on fuel which is a good way to

romote it.p



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Question 17:

H

ow important is price in your decision to purchase E-85?

In this question you will see that people have really different thoughts about E85, whichbrings up the lack of knowledge about it. Also, if people knew more about it, and that it isgoing to cost them less to buy E85 than gasoline.



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Questi n 18: oender G



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Question 19:

hat is your age? W



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Question 20:

W

hat is the highest level of education you have attained to date?



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Cross-tab against: 19) What isyour age?Base Question Under 18 18 - 20 21 - 24 25 - 29 30 - 34 35 - 39 40 - 44 45 - 49 50 or

older

much too high 0.0% (0) 100.0% (1) 33.3%(3)

25.0%(3)

22.2%(4)

0.0% (0) 0.0% (0) 33.3%(2)

71.4%(5)

somewhat high 0.0% (0) 0.0% (0) 55.6%(5)

58.3%(7)

66.7%(12)

75.0%(3)

83.3%(5)

33.3%(2)

0.0%

about right 0.0% (0) 0.0% (0) 11.1%(1)

16.7%(2)

11.1%(2)

0.0% (0) 16.7%(1)

33.3%(2)

28.6%(2)

somewhat low 0.0% (0) 0.0% (0) 0.0%(0)

0.0% (0) 0.0% (0) 25.0%(1)

0.0% (0) 0.0% (0) 0.0% (0

much too low 0.0% (0) 0.0% (0) 0.0%(0)

0.0% (0) 0.0% (0) 0.0% (0) 0.0% (0) 0.0% (0) 0.0% (0)

Total Counts 0 1 9 12 18 4 6 6

Cross-tab against: 11) What is the most important reason for NOTpurchas...Base Question feel there is

a loss ofpower

my car isolder andruns betteronpremium

it makemyenginedirty

myenginerequirespremiumgrade

can nottow/pullwith E-85

it's justnotgood formy car

I use E-85

I don'tknow

Under 18 0.0% (0) 0.0% (0) 0.0%(0)

0.0% (0) 0.0%(0)

0.0%(0)

0.0%(0)

0.0%(0)

18 - 20 0.0% (0) 0.0% (0) 0.0%(0)

0.0% (0) 0.0%(0)

0.0%(0)

0.0%(0)

2.6%(1)

21 - 24 33.3% (1) 25.0% (1) 0.0%(0)

16.7%(1)

0.0%(0)

16.7%(1)

0.0%(0)

13.2%(5)

25 - 29 0.0% (0) 0.0% (0) 50.0%(1)

0.0% (0) 0.0%(0)

16.7%(1)

50.0%(1)

23.7%(9)

30 - 34 0.0% (0) 25.0% (1) 0.0%(0)

16.7%(1)

0.0%(0)

50.0%(3)

50.0%(1)

31.6%(12)

35 - 39 0.0% (0) 25.0% (1) 0.0%(0)

16.7%(1)

0.0%(0)

0.0%(0)

0.0%(0)

5.3%(2)

40 - 44 0.0% (0) 25.0% (1) 0.0%(0)

16.7%(1)

0.0%(0)

16.7%(1)

0.0%(0)

7.9%(3)

45 - 49 33.3% (1) 0.0% (0) 50.0%(1)

0.0% (0) 0.0%(0)

0.0%(0)

0.0%(0)

7.9%(3)

50 or older 33.3% (1) 0.0% (0) 0.0%(0)

33.3%(2)

0.0%(0)

0.0%(0)

0.0%(0)

7.9%(3)

Total Counts 3 4 2 6 0 6 2 38



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SURVEY PERSONA We took all of our results and put them into one persona. The typical person surveyed

was female between the ages of 3034. They graduated from a four year university. Shedrives a non flex fuel vehicle around town all week long. On average she drives 175 miles aweek and spends $100 on gas. Overall she thinks she is over spending on gas. The averagesurveyor believes that the current environmental efforts and policies in the U.S. areimportant. They believe that they could be better informed about the environment andother green initiatives that are going on. They prefer to purchase products that areenvironmentally friendly, and they make it a priority to be environmental conscious intheir everyday life. They are also willing to pay 5% more for green products. The main

reason that they buy fuel from their favorite gas station is convenience, within 5 minutes of their home. On average theywould buy E85 at these gasstations if it was available,priced lower than gas, andif their car could beconverted to run E85.They would be willing tospend up to $100 toupgrade their vehicles torun Flex Fuel. They have

not seen ads for E85.Thus with no exposure toads or vehicle ability, theyhave not purchased E85.

CONCLUSION

Our results show that the consumers want to be environmentally friendly, and arewilling to pay more for those products, but not much more. They are not aware of thesustainable gas for their cars, but would be willing to convert for a small price. Ourrecommendation for Pacific Ethanol Inc. to grow is to start a market campaign geared tothe everyday consumer, rather than just to the distributers. They need to come up with acampaign to gain awareness, and try to team with the government and States to get fundingand to create more E85 stations. They company also needs to try and lower corn prices bybuying more land to grow corn and sign multiyear contracts with the farmers to make theprices more stable.

Ultimately with a strong market campaign, competitive prices, and convenient stations,Americans would be willing to buy E85.


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WORKS CITED

Biofuels Production. Hoovers. Portland State University. 27 April 2009.

http://premium.hoovers.com.proxy.lib.pdx.edu/subscribe/ind/fr/profile/basic.xhtml?ID=2

57.

Gas Stations-US. September 2008. Mintel. Portland State University. 26 April 2009.

http://academic.mintel.com.proxy.lib.pdx.edu/sinatra/oxygen_academic/search_results/sh

ow&&type=RCItem&sort=relevant&mode=accessible&list=search_results/display/id=29

7928.

Gritzinger, B. (2006, April 24). Flex Fuel For The Future. Autoweek, 56 (17), 18.

Pacific Ethanol Inc. Hoovers. Portland State University. 27 April 2009.

http://premium.hoovers.com.proxy.lib.pdx.edu/subscribe/co/factsheet.xhtml?ID=ffffhkyr

hryfxxcjsh

Pacificethanol.net. Accessed on April 20, 2009.

http://www.pacificethanol.net/site/indes.php/site/

Stoffer, H. (2008, Sept. 8). Proposed Flex Fuel Mandate Roils Industry. Automotive News,

83 (6324), 4.

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Appendix



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E 85 Draft Survey

This survey is about gasoline purchasing and gasoline prices.

In general, do you feel that gasoline prices are:

much too high

somewhat high

about right

If you believe gasoline prices are too high in your area, what are some reasons for high prices?

greedy oil companies

too many taxes on gasoline

oil producing companies set high prices

laws of supply and demand

Americans use too much gasoline

prices always go up in the summer

Other

Thinking about the last several years, how often do you buy premium grade gasoline?

always

frequently

sometimes

seldom

never



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What is the most important reason for purchasing premium grade gasoline?

like the extra power

use to clean my engine

engine requires premium grade

towing/pulling

it's just better for my car

my car is older and runs better on premium

When you need to purchase gasoline, do you most often purchase it:

on your way to work

on your way home from work

on your way to go shopping

on your way home from shopping

while you are out doing errands

when making a special trip to the gas station

Think about the gasoline station you go to most often. Is it closer to

your home

your place of work

your favorite shopping area



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About how many minutes does it take to get to the gas station you go to most often?under 5 minutes

5-10 minutes

10-15 minutes

15-20 minutes

more than 20 minutes

Again think about the gas station you go to most often. What are some reasons this gas stationis your favorite? (Check all that apply)

convenient location

convenient hours of operation

close to work

close to home

close to favorite shopping area

lowest prices

fast payment

fast in and out

happy with brands

never had trouble with their gas

have credit card for that brand of gas

like the food mart

friendly service

force of habit

other



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In an average month, about how much does your total household spend on gasoline?

less than $25

$25 - $50

$50 - $75

$75 - $100

over $100

Do you have a gasoline card?

Yes

No

About what part of the amount you pay for gasoline isspent usinggasoline cards

VISA/Mastercard

Other credit card

Cash

Check

Other payment



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What are the three best features you would expect to getwith a gasoline card?

generous grace period

bonus gas to reward frequent purchases

low interest rate

use for several different gasoline companies

easy to get one

end of year rebate

free car washes

Which of the following age groups do you fall into?18-24

25-34

35-44

45-49

50-54

55-64

65 or older

What is your marital status?single

married

separated

divorced

widowed



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How many of your children do you have living at home?

one

two

three

four

five

six or more

How many of these children have a driver's license?one

two

three

four

five

Just approximately, which income category best describesyour total annual household income?

under $25,000

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $119,999

over $120,000



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GenderMale

Female

Thank you for participating in this survey.



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Planning Questions

What is the consumers need, and are they being met?

What are the demographics of the customer?

If the product has already been purchased please rate experience, satisfaction, and product.



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ra pay a pre x

Below is a l Below is a l Below is a l Below is a lAre you wi How much How often In a one w How many Disagree Agree Disagree Agree I am not wiNone Several Ti Six to Seve 100Agree Neutral Agree Strongly A pay a prem$100 $20 Several Ti Six to Seve 20Agree Agree Neutral Strongly A pay a prem$200 $30 I have NOT Six to Seve 35Strongly A Strongly A Strongly A Strongly A pay a premLess than $ I have NOT Four to Fiv 100Neutral Disagree Neutral Strongly A pay a prem$300 $40 I have NOT Six to Seve 300

Neutral Neutral Neutral Neutral pay a premmore

than

I have

NOT

Six

to

Seve 400Strongly A Neutral Agree Strongly A pay a premLess than $ I have NOT Six to Seve 55

Agree Agree Neutral Strongly A pay a prem$200 $30 Several Ti Six to Seve 100Strongly A Strongly A Strongly A Strongly A pay a prem$100 $20 I have NOT Six to Seve 80Agree Agree Agree Agree pay a prem$200 $30 Several Ti Six to Seve 200Neutral Agree Agree Strongly A pay a premmore than I have NOT Four to Fiv 100Agree Neutral Agree Strongly A pay a prem$300 $40 Several Ti Six to Seve 70

Neutral Neutral Agree pay a premLess than $ I have NOT Six to Seve 210Neutral Neutral Neutral Neutral I am not wi None I have NOT Six to Seve 300

Agree Agree Agree pay a prem$100 $20 Several Ti Six to Seve 300Strongly A Agree Agree Agree pay a prem$100 $20 I have NOT Two to Thr 25Neutral Neutral Neutral Agree I am not wi None I have NOT Six to Seve 70Agree Neutral Strongly A Neutral I am not wi$200 $30 Several Ti Two to Thr 100Neutral Strongly Di Agree Agree I am not wi None I have NOT Six to Seve 200Strongly A Strongly A Agree Strongly A pay a prem$200 $30 Several Ti Six to Seve 375Strongly A Agree Agree pay a prem$100 $20 Several Ti Six to Seve 300Neutral Agree Neutral Agree I am not wi$200 $30 Several Ti Six to Seve 250Strongly A Agree Strongly A Strongly A pay a prem$100 $20 I have NOT Six to Seve 100Agree Agree Agree Strongly A pay a prem$100 $20 I have NOT Four to Fiv 125

gree gree eu gree m ave o eveStrongly A Agree Strongly A Strongly A pay a prem$200 $30 I have NOT seen adver 140

Strongly A Strongly

A Strongly

A Strongly

A pay

a prem$100

$20 Several

Ti Two

to

Thr 100Agree Agree Agree Agree I am not wiLess than $ I have NOT Six to Seve 100

Agree Agree Agree Agree pay a premmore than I have NOT Six to Seve 100Strongly A Agree Agree Strongly A pay a prem$300 $40 I have NOT Six to Seve 40Neutral Neutral Neutral Agree I am not wiLess than $ Several Ti Two to Thr 80Neutral Agree Agree Strongly A pay a prem None I have NOT Six to Seve 200Agree Neutral Neutral Strongly A pay a premLess than $ I have NOT Four to Fiv 267Neutral Neutral Neutral Agree I am not wiLess than $ Several Ti Six to Seve 250Strongly A Strongly A Strongly A Strongly A pay a premNone Several Ti Four to Fiv 150Agree Agree Agree Strongly A pay a prem$300 $40 Several Ti Six to Seve 60Agree Agree Neutral Strongly A I am not wi None I have NOT Four to Fiv 125Agree Neutral Agree Strongly A pay a prem None I have NOT Six to Seve 20Agree Agree Agree Strongly A pay a prem$200 $30 I have NOT Two to Thr 35Agree Agree Agree Strongly A pay a premLess than $ I have NOT Six to Seve 200Neutral Neutral Neutral Strongly A pay a prem$300 $40 I have NOT Six to Seve 400Agree Agree Agree Agree pay a prem$100 $20 I have NOT Six to Seve 100Agree Neutral Neutral Strongly A pay a premLess than $ I have NOT Six to Seve 100Neutral Agree Neutral Agree pay a premLess than $ I have NOT Four to Fiv 200Neutral Neutral Neutral Agree pay a premNone Several Ti Six to Seve 200Neutral Neutral Agree Agree I am not wiLess than $ Several Ti Four to Fiv 60


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Neutral Agree Agree Strongly A I am not wiNone Several Ti Six to Seve 500Agree Neutral Neutral Agree pay a premNone Several Ti Six to Seve 300Strongly A Strongly A Strongly A Strongly A pay a prem None I have NOT Six to Seve 200Agree Agree Disagree Agree pay a premLess than $ Several Ti Six to Seve 150Neutral Disagree Neutral Strongly A pay a prem$300 $40 Several Ti Six to Seve 100Agree Neutral Agree Strongly A pay a prem$200 $30 Several Ti Two to Thr 50

Agree Agree Agree Agree pay a prem$100

$20 I

have

NOT

Six

to

Seve 300Agree Agree Strongly A pay a premNone Several Ti Six to Seve 300

Agree Neutral Agree Strongly A pay a prem$100 $20 I have NOT Two to Thr 300Neutral Agree Neutral Agree I am not wiNone Several Ti Four to Fiv 50Strongly A Strongly A Strongly A Strongly A I am not wi None I have NOT Once a we 0Agree Agree Agree Agree pay a premLess than $ Several Ti Six to Seve 270Agree Neutral Agree Strongly A pay a prem$100 $20 Several Ti Six to Seve 150Agree Neutral Agree Strongly A pay a premmore than Several Ti Six to Seve 75Neutral Disagree Disagree I am not wiLess than $ I have NOT Six to Seve 50Agree Agree Agree Agree I am not wiNone Several Ti Six to Seve 500Agree Strongly A Neutral Agree I am not wi None I have NOT Six to Seve 400


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55/63

l

h

h

h

h

l

somewhat never my car is o more than No No No No Nosomewhat never I don't kno under 5 mi Yes No No No Nosomewhat never I don't kno under 5 mi Yes Yes No Yes Nosomewhat never I don't kno under 5 mi Yes No No Yes Nomuch too never I don't kno under 5 mi No No No No Nosomewhat sometimes I don't kno under 5 mi Yes No No No No

somewhat never it's

just

not5

10

minut Yes Yes No Yes Noabout rightnever it's just notunder 5 mi Yes No No No No

somewhat never I don't kno under 5 mi Yes No No No Nomuch too never I don't kno under 5 mi Yes Yes No Yes Noabout right never I don't kno under 5 mi No No No No Noabout right never 5 10 minut Yes No No Yes Nomuch too never I don't kno under 5 mi Yes No No Yes Nosomewhat never my engine under 5 mi No No No No Nomuch too never my engine under 5 mi Yes Yes No Yes Noabout right never I don't kno under 5 mi Yes No No Yes Nosomewhat never my car is o under 5 mi Yes Yes No Yes Yes


56/63

Again&co Again&co Again&co Again&co Again&co Again&co Again&co Again&co Again&coYes Yes No Yes Yes No No No NoYes Yes Yes No Yes No No Yes NoNo No Yes No Yes No No Yes YesYes No No No No No No No NoNo No No No No No No No No

Yes No Yes Yes No No No No NoYes No No Yes No No No No NoNo No No No No Yes No No NoNo No Yes No Yes No No No NoYes No No No Yes Yes No Yes NoYes No No No No No No No NoYes No No No Yes No No No NoYes No No No No No No No NoYes Yes Yes No Yes No No Yes NoYes No No No No No No No NoYes No No No No No No No NoNo No No No No No No No YesNo No No No No No No No NoNo No No Yes No No No No YesNo No Yes No Yes No No No YesNo Yes Yes Yes Yes Yes No No NoYes No No No No No No No YesYes No No No No No No No NoYes No Yes No No No No No No

es o es es es es o es oNo No No No No No No No No

No No No No Yes No No No NoNo No No No No No No No NoYes No No No No No No No NoNo No No No No No No Yes YesYes No No No Yes No No Yes NoNo No No No No No No No NoNo No No No No No No No NoYes No No No Yes No No No NoYes No No No No No No No NoYes No No No No No No No YesYes No No No No No No No No

Yes No No Yes Yes No No Yes NoYes No No No No No No No NoNo No No No No No No No NoYes Yes Yes No No No No No NoNo No Yes No No No No No NoYes Yes Yes No No No No No NoNo No Yes No No No No No NoYes No No No No No No No NoYes No Yes No No No No No No


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Yes No No No No No No No NoNo No No No No No No No NoYes No No Yes Yes No No No NoYes No No No No No No No NoYes No No No No No No No NoNo No No No No No No No No

Yes No No No No No No No NoNo No No No No No No No NoNo No No No No No No No NoNo No Yes No Yes No No No YesNo No No No No No Yes No NoYes No Yes No No No No No NoYes No Yes No No No No Yes YesYes No No No No No No No NoYes Yes Yes No Yes No No No NoYes Yes Yes No No No No No NoYes No No No Yes No No No No


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Again&co Again&co Do you live Do you live Do you live Do you live Do you live Do you live Do you liveNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No No

No No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No Yes No No No No NoNo No No No No No No NoNo No No No No No No NoNo No Yes No No No No NoNo No No No No No No NoNo Yes No No Yes No No NoNo No No No No No No NoNo Yes No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoYes My car run No No No No No No NoNo No No No No No No No

o o o es o o o oNo No No No No No No No

No No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No Yes No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No Yes No No No NoNo No No Yes No No No NoNo No No No No No No No

No No No No No No No NoNo No No No Yes No No NoNo No No No No No Yes NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No No


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No No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No No

Yes club memb No No No No No No NoNo No No No No No No No

No No No No No No No NoYes don't like t No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No NoNo No No No No No No No


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No Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No No

No Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No NoYes No No No No No No No NoNo Yes No No No No No No NoNo Yes No No No No No No No


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over co ege y

Have you& Have you& In an avera How impor Gender What is yo What is the highest level of educaNo Yes over $100 Somewhat Male 30 34 Attending/attended college 1 3 yNo Yes $50 $75 Very ImporFemale 25 29 Graduated from 4 year collegeNo Yes $75 $100 Not Import Female 40 44 Graduated from 4 year collegeNo Yes $75 $100 Possibly ImFemale 25 29 Graduated from 4 year collegeNo Yes over $100 Possibly ImFemale 30 34 Graduated from 4 year college

No No over $100 Possibly

ImFemale 30

34 Graduated

from

4 year

collegeNo Yes $50 $75 Not Import Male 21 24 High school graduate or less

No Yes $25 $50 Somewhat Male 30 34 Graduated from 4 year collegeNo Yes $50 $75 Very ImporFemale 35 39 Graduated from 4 year collegeNo Yes $50 $75 Somewhat Female 30 34 Graduated from 4 year collegeNo Yes over $100 Very ImporFemale 30 34 Postgraduate study or degreeNo Yes $50 $75 Somewhat Female 30 34 Attending/attended college 1 3 yNo Yes $50 $75 Not ImportFemale 30 34 Graduated from 4 year collegeNo Yes over $100 Not Import Female 50 or older High school graduate or lessNo Yes over $100 Very Impor Male 21 24 Attending/attended college 1 3 yNo Yes $50 $75 Somewhat Male 30 34 Postgraduate study or degreeNo Yes over $100 Not Import Male 21 24 Attending/attended college 1 3 yNo No $75 $100 Possibly Im Male 21 24 Attending/attended college 1 3 yNo Yes over $100 Possibly Im Male 18 20 Attending/attended college 1 3 yNo Yes over $100 Very ImporFemale 25 29 Graduated from 4 year collegeNo Yes $75 $100 Very Impor Male 21 24 Graduated from 4 year collegeNo Yes over $100 Not Import Male 25 29 Graduated from 4 year collegeNo Yes $75 $100 Possibly ImFemale 21 24 Attending/attended college 1 3 yNo Yes $50 $75 Very ImporFemale 25 29 Graduated from 4 year college

o es omew a ema e en ng a en e No Yes $75 $100 Male 21 24 Attending/attended college 1 3 y

No Yes $50

$75 Somewhat Female 50

or

older Attending/attended

college

1

3 yNo Yes $75 $100 Very ImporFemale 45 49 Graduated from 4 year college

No No $75 $100 Very ImporFemale 45 49 Attending/attended college 1 3 yNo Yes $25 $50 Very ImporFemale 25 29 Attending/attended college 1 3 yNo Yes $75 $100 Somewhat Female 50 or older Graduated from 4 year collegeNo No $25 $50 Possibly Important 30 34 Graduated from 4 year collegeNo Yes $75 $100 Very ImporFemale 45 49 Attending/attended college 1 3 yNo Yes over $100 Very ImporFemale 45 49 Postgraduate study or degreeNo No $75 $100 Somewhat Male 30 34 Graduated from 4 year collegeNo Yes $50 $75 Possibly Im Male 40 44 Graduated from 4 year collegeNo Yes $75 $100 Not Import Male 50 or older Graduated from 4 year collegeNo Yes over $100 Somewhat Female 35 39 Graduated from 4 year collegeNo Yes $25 $50 Not Import Male 35 39 Attending/attended college 1 3 yNo Yes $75 $100 Somewhat Female 25 29 Graduated from 4 year collegeNo Yes Somewhat Female 21 24 Attending/attended college 1 3 yNo Yes $75 $100 Possibly ImFemale 25 29 Attending/attended college 1 3 yNo Yes over $100 Very ImporFemale 25 29 Postgraduate study or degreeNo Yes $75 $100 Very Impor Male 45 49 Attending/attended college 1 3 yNo Yes $75 $100 Somewhat Female 25 29 Attending/attended college 1 3 yNo Yes $50 $75 Very ImporFemale 50 or older High school graduate or less


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No Yes over $100 Possibly Im Male 40 44 Graduated from 4 year collegeNo Yes $50 $75 Not Import Male 35 39 Graduated from 4 year collegeNo Yes over $100 Not Import Female 25 29 Attending/attended college 1 3 yNo Yes $50 $75 Very Impor Male 40 44 Postgraduate study or degreeNo Yes $50 $75 Possibly Im Male 30 34 Attending/attended college 1 3 yNo Yes $25 $50 Possibly ImFemale 30 34 Attending/attended college 1 3 y

No Yes over $100 Possibly

Im Male 30

34 High

school

graduate

or

lessNo Yes over $100 Male 40 44 Postgraduate study or degree

No Yes $50 $75 Somewhat Female 30 34 High school graduate or lessNo Yes $75 $100 Possibly ImFemale 30 34 High school graduate or lessNo Yes less than $ Not Import Female 21 24 Attending/attended college 1 3 yNo Yes over $100 Female 50 or older Attending/attended college 1 3 yNo Yes $50 $75 Very Impor Male 25 29 Graduated from 4 year collegeNo Yes $75 $100 Very Impor Male 40 44 Attending/attended college 1 3 yNo Yes $50 $75 Very ImporFemale 50 or older High school graduate or lessNo Yes over $100 Not Import Male 30 34 Graduated from 4 year collegeNo Yes over $100 Very Impor Male 30 34 Attending/attended college 1 3 y

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