Jumpstart Automotive Group

The Green conversation in the automotive world has resulted in new policies and standards for fuel efficiency and emissions as well as recent incentives for manufacturers and consumers to become more environmentally friendly. What isn’t clearly evident, however, is whether these issues are actually top of mind for consumers who are in-market to purchase a vehicle. This month we take a look at how consumers are shopping for alternative fuels and technologies over the past seven months, and whether they’re ready to trade in their larger fuel sippers or guzzlers for a vehicle with improved emissions and greater fuel economy.

The amount of exposure consumers have had to these rising concerns, new policies, standards and incentives to become more environmentally friendly has grown substantially. What isn’t clearly evident, however, is whether these issues are actually top of mind for consumers who are in-market to purchase a vehicle.

In 2008 eMarketer released a study titled “Green Online: Growing Awareness” in which a Doubleclick survey showed that 60% of US Adult Online Buyers felt that a company being environmentally conscious was either extremely or very important (see Table 1.1). Additionally, Nielsen BuzzMetrics reported during the same time that conversations about the need for more alternative fuels was the #1 topic of gas and driving conversations across US social networking sites (Table 1.2). Interesting to note was that this data was from April-May, 2008, just one month prior to the surging gas prices in the summer of 2008.

Table 1.1 The Importance of Companies Being Environmentally Conscious, eMarketer “Green Online: Growing Awareness,” June, 2008

Table 1.2 Top Five Topics of Gas and Driving Conversations on US Social Networking Sites, Nielsen Online, “BuzzMetrics” as cited in press release, June 25, 2008

How is this Translating with In-market Shoppers?

Over the past seven months we’ve been watching how consumers are shopping for alternative fuels and technologies and whether they’re ready to trade in their larger fuel sippers or guzzlers for a vehicle with improved emissions and greater fuel economy. In Table 2.1 below, we look at consumer interest in all alternative fuels compared to general automotive shopping. We also break it down further and analyze the hybrid and diesel categories alone.

What we found was that diesels were heavily searched in January and February when German manufacturers such as Audi, Volkswagen and Mercedes were promoting their clean diesel TDI or BlueTec models at the national auto shows. Since those early months of heavy press, the category has dropped off compared to the general alternative fuel or hybrid categories.

In looking at the graph below, it also appears that the alternative fuel/technology category trends have fallen closer in line with the national average gas prices. When gas prices fell below the $2.00 mark, all vehicles within the category dropped off, however shopping picked back up with the slow and steady increase in gas prices. The alternative fuels category has indexed higher than general automotive shopping and specific alternative fuel/technology categories since May, 2009. It seems this traffic is still largely being driven by consumers’ wallets rather than environmental concerns, similar to what we saw during the gas crisis in the summer of 2008.

Table 2.1 Shopping Demand Index compared to National Average Gas Prices

In a recent poll that ran across all Jumpstart sites during the first three weeks of August, we asked consumers which alternative fuel or technology they would consider for their next vehicle purchase. Because green vehicles comprise largely of hybrids or clean diesels, results were limited to these two categories or ‘other alternative fuels/technologies’ that could comprise of electric/plug-in, E-85, and others. Forty-one percent of respondents said that a hybrid was in consideration for their next vehicle purchase, while diesel was close behind at 34%. The interest and consideration is in the mind of the consumers, but the actual shopping behaviors for these specific categories have leveled off as we saw in Table 2.1.

Table 2.2 Jumpstart Automotive Group Audience Poll Responses, August 2009

Bridging the Gap between Consideration and Action

There exists a great opportunity for manufacturers to both shape and respond to consumer interest for more fuel efficient and environmentally responsible vehicles. Whether the prospective buyer is motivated by gas savings, reduced emissions or other factors, there is an increasing awareness of the benefits of alternative fuels and technologies.

Realizing that other factors are impacting the significance of this topic in the automotive world will only allow marketers to respond through messaging that informs, educates and resonates with a broader audience. The more comfortable consumers become with the various alternatives, the faster these greener technologies will move from consideration to an actual purchase. This won’t be achieved without a deeper level of education starting with corporate messaging and working its way to the retail experience.

The threat of higher gas prices is no longer a possibility but a reality in the future. The more consumers understand the benefits of green vehicles through OEM education, the better suited they will be to take advantage of all of the innovations that are happening today for the future.