Business and Economics

New Home Buyers:Mapping Decisions &

A/Prof Jan Brace-Govan,Lisa MacDonald, Ergon Energy

Professor Harmen Oppewal, Dr. Itir Binay, Dr. Liam SmithCaulfield Campus

4th April 2014

Issue & ObjectivesErgon Energy is interested in managing peak demand and

slowing the growth rate of peak demand by increasing the uptake

of energy smart homes in the Townsville area

Consumers have to make a large number of decisions when building new homes

Abundant information is available but the challenge is to influence consumers’ decisions about the features in their new home

A starting point is a better understanding of consumers’ decision making around the features and products available to them

4th April 2014

Project Aims & Research Process

1) map decision making processes

2) develop a model of decision making processes

3) make recommendations on messages, methods of intervention and channels for communication

1) Discovery Orientated Interviews (n=17)2) Telephone Survey Interviews (n=15)3) Online Panel (n=31)

Townsville Dry Tropics – tropical savannah – but does not catch winter rain – can

be dry for > 6 months – cyclone region

Unofficial capital of North Queensland – 196,219 population

Rain 45.3 in (1,149.9 mm) 20 – 29 C

Army town, University and government services centre

Sub-tropical farming with water and transport issues– Zinc, Copper, Nickel processing

Politically conservative

Average income 10% higher than rest of Queensland

Younger pop than average but also high turnover.

Sport significant – esp Rugby and Women’s Basketball

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4th April 2014

Structure of Consumer Decisions - BASICLocationHouse and Land PackageORBlock of Land House to follow

Structural Design of House Interior Design of House

Factors Affecting Consumers’ Decisions1.Cost2.Townsville’s geographic location and weather3.Sources of Information4.Reason for Building5.Building Process6.Passive Cooling7.Commitment to sustainability8.Long term plans of house owner

Widely understood?

Land PurchaseHouse and Land Package

House Design/Purchase

Architect

Builder

Elevated Block

OrientationRoofPool Landscape Shade

Walls WindowsCeiling Height

Whirly Bird

Room Location

Shed Garage

Solar

Wiring Panels

Materials

Water Tanks

TV IT LightingFloor

TilesAppliances Fans Air con Off

Peak Media Room

KP1

KP3

KP4

KP5

KP6

KP2

Many decisions limited or unavailable

Breezes Block Size

Proximity to city/bush

Orientation

Figure 1 - A Model of the Decision Making Process in Building a New Home

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Figure 2 - Summary Scores for Difficulty and Involvement around Decision Making

4th April 2014

Knowledge Points = complexity Knowledge Points 1 to 4

– Decisions in these areas highly contextualised and personal and less likely to be influenced by external agencies

Knowledge Point 5– 12 decision making areas– decisions often made with builder’s input

Knowledge Point 6– Mostly familiar items (e.g. Appliances)

where the problem is marketplace CHOICE– Experienced as difficult to reverse

• Lighting• Floor tiles• Colour

Some ComplexitiesConsumers consider

defraying initialexpenses through longer

term cost savingBUT some reported not

knowing enoughabout passive cooling

AND

Decisions are often complicated

and inter-connectede.g. WINDOWS

AND

Some builders unhelpfulcouncil approvals

confusingColour is an interesting example

of how lay understandingsbring diverse elements together

‘Colour’ covers both inside and outside the house

and is a (public) expression of taste

4th April 2014

Recommendations for Communication Consumers are searching

for people to talk to and discuss their options

Consumers want to experience the product/feature before they commit

– Display homes, suppliers

Most Selected Source of Information

Used in Decision Making Areas

Online Solar PanelsBuilders House Design, Colour, Lighting, Lighting

Display homes House Design, Floor Tiles, AppliancesMagazines Landscaping

Previous experience Land, Colour, Landscaping, Lighting, Appliances

Work experience  Brochures House Design, AppliancesSuppliers Solar Panels, Pools, Floor Tiles, Appliances

Friends and family Land, Landscaping, Pools

There is a clear need for credible, comprehensive, comparative information that supports consumers in their choices.

Consumers’ interest in comfort and cost suggestthat that this would be the best basis

from which to approach energy conservationand reducing peak demand

4th April 2014

Recommendations for Communication Ergon Energy – 2 Channels of Communication –

SUPPLY CHAIN

Integrated communications amongst suppliers to the building industry – intervene in the supply chain

– Consumers need to know how to optimise their options and what the trade-offs are

– Consumers need a cost-benefit analysis of various configurations

• Currently consumers rely on builders, family, friends (especially if they are in allied trades)

Work with builders to generate energy efficient house plans

The Ergon Energy tick Providing customers comfort in their choices and creating strong relationships with communities.

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I trust Ergon Energy’s advice

on energy efficiency and its

part of our community

I have heard that estates

with the Ergon Energy tick have

more efficient housing

Customers are looking for guidanceBuilding a new home

Ergon Energy’s brand value drives customers to approved estates

• Trusted source of energy related advice• Customers know the estate contains energy efficient housing in a supportive community• Accredited sustainable estate

What type of home do

we want?

We are concerned about rising

energy prices – but we are not

quite sure what to do about it

I need some

guidance on

designing the

right home

Ergon has a life-long relationship with families

Life at an Ergon Estate

Community engagement Understanding and refining

products to suit customer’s individual preferences

Ongoing advice and supportThe building

guidelines really helped me ensure

my house is energy efficient.What can I do

now?

Ergon provides a choice of energy products and services

that help families manage energy bills

Criteria for sub-brand approval

EnviroDeveloper accredited

development

Consumer marketing campaign

• Educate customers to look for the Ergon Energy sub-brand

How does it work?• Tick of approval in return for meeting criteria• Developments use the brand in their promotions• Tick only extended to estates with UDIA

accreditation – UDIA Envirodeveloper

Partnerships are key to success

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Why partner with UDIA EnviroDeveloper? Engagement with the industry ED is an existing solid accreditation system

for residential estates Rigorous assessment with annual reviews Accepted industry standard

4th April 2014

Thank you for your attention.

Questions?