PGE Water Heater ET Final Report - FINAL.pdf - Emerging ...

PG&E’s Emerging Technologies Program ET12PGE3191
process, defined by Kotler more than two decades ago, defines five decision making stages:
Problem Recognition, Information Search, Evaluation of Alternatives, The Purchase Decision,
and Post-purchase Behavior. 17 For water heaters, as with most products, the potential
customer moves through all stages of the process.
Problem Recognition
A home owner or someone in the household typically notices one of five issues with their
water heater.
A Lack of or Inadequate Hot Water Noise
Discolored Water Leaks
Odor
The sources of these problems generally are in three areas: corrosion, sediment buildup, or
part failure. The decision phase for water heaters is complicated by the severity of the
problem, many of which can be remedied by maintenance if detected early enough and
others that require water heater replacement. 18
Energy efficiency is, by itself, not a problem, but can be an after-the-fact justification for
replacement. For consumers with a working water heater, the primary reasons include 19 :
It was getting old and it was time to replace it before it broke (43 percent)
We wanted a more efficient unit (25 percent)
We were doing a remodel, which included a new water heater (9 percent)
We wanted a different type of water heater (6 percent).
A challenge in marketing energy efficient water heaters is making the prospective customer
aware of the connection between the recognized problem and energy efficiency.
Information search
After the home owner identifies the problem, the next stage is to more actively search for
information to help diagnose the problem and look for a solution. Water heater problems
usually need to be addressed in a hurry. Water heaters often break down at the most
inconvenient time and there is little time to research solutions, to identify all product
options, or to comparison shop.
The first question to be asked is, “Do I need to replace my water heater or can it be
repaired?” If the water heater needs replacement, then the next question is, “Where can I
get one?” Other important questions relate to water heater selection such as fuel source,
capacity, and size or installation constraints. The internet is a growing source of data to
answer these types of questions. Participants in water heater rebate programs rely on the
internet most often for information gathering according to one survey, Figure 11 Methods of
Gathering Water Heater Information. Type “water heater” into a search engine and the top
17 P. Kotler, Marketing Management: Analysis, Planning, Implementation, and Control,
Prentice Hall, 6 th Edition, 1988, pp. 194-203.
18 “Hot Water Heater Problems: A Broad Survey,”
http://www.elocalplumbers.com/blog/water-heater-problems-3220.
19 KEMA Inc., “ASSESSMENT OF THE RESIDENTIAL WATER HEATER MARKET IN THE
NORTHWEST,” Northwest Energy Efficiency Alliance, July 13, 2006, p. 8-4.
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