1. Decision Analyst Prepared for: Strategic Research Analytics Modeling Optimization Inside The Mind Of the Residential Homeowner Consumer

2. Decision Analyst Prepared for: Better understand homeowners –Attitudes –Knowledge –Motivations –Energy efficiency activities Most effective customer relationship plans Identify ways to overcome barriers Ask the right questions, get the right answers

3. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 3  Conducted via the Internet American Consumer Opinion Panel Aug/Sept 2010 Sept 2012 + Jan 2013. National probability sample of homeowners  Respondent counts 2010 35,676 homeowners 6.6%/2,363 HVAC replacement market buyers 2.4%/854 New home purchasers 1.2%/436 Add-on HVAC customers Respondent counts 2013  2013 Replacement 2460 Home Owner Decision Maker Consumer Homeowners represent 75 million out of 111 million occupied living units in the U.S.

4. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 4 The Homeowner Decision Maker Faced a recent major recession which was brutal Homeowner decision makers are different now Retirement Ahead There are significantly fewer young homeowners Soon to retire homeowners comprise a significantly larger group The soon to retire are more apt to improve home comfort and home energy use.

5. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 5 The average age of U.S. homeowners is 47.2 years in 2010, compared to 45.7 years in 2008 and 45.4 years in 2006. The average age of homeowner replacement buyers in 2013 = 50.2 The average age of U.S. homeowners is 47.2 years in 2010, compared to 45.7 years in 2008 and 45.4 years in 2006. The average age of homeowner replacement buyers in 2013 = 50.2 12% 22% 23% 18%2% 14%16%22%23%20%5% 13%16%22%25%19%5% Age Homeownership Demographics Recession’s Greatest Economic Breakage Recession’s Strongest Survivors Recession’s Strongest Survivors

6. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 6 More than Half of homeowners are mature – Many want more comfort for less cost in their home and can pay for the upgrade Who Are They?

7. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 7 Primary Residence - Total Homeowners 2010 What Do They Believe They Need? Energy Efficiency Indoor Air Quality 14.5 million homes 14.5 million homes 16.5 million homes 16.5 million homes

8. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 8  The Energy Star is a leading and well understood symbol  Only homeowners living under a rock don’t know the Energy Star Symbol EPA Communication With Homeowners

9. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 9 Energy Star Symbol The Energy Star symbol is not only well known, but also well known for the right reasons The symbol has become highly influential to the homeowner in making major purchases for their home. Awareness 96 %

10. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 10 Influences Purchase Decisions Nine in ten know: The Energy Star symbol on a product means it meets the specifications established by the U.S. government Seven in ten say: Any major appliance or equipment that I buy must have the Energy Star symbol Communication

11. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 11  Many are trying to use less energy  A significant number do uninformed things  Few have contacted the EPA/Energy Star, local energy companies, or the DOE, or conducted an in-home energy audit.  How do each of these effective resources gain more communication with homeowner decision makers? Are Homeowners Actively Perusing Energy Savings?

12. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 12 Home Energy Saving Activities Take On Distinctively Different Results There are those who don’t improve their home when saving energy and There are those who are investing in their home’s future as they find new ways to save energy!

13. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 13 2010 Energy Efficiency Activities Performed Past 24 Months That do not improve the home Approx. 36 mil ran ceiling fans and adjusted temps (48%) Approx. 28.5 mil lowered heating temps (38%) Approx. 25.5 mil took cooling temps up (34%) Approx. 23.25 mil used portable fans more (31%) Approx. 9.75 mil began spot heating and cooling (13%) Approx. 11.25 mil complied with city energy use requests (15%)

14. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 14 2010 Energy Efficiency Upgrade Activities Performed Past 24 Months Approx. 3.75 mil sealed ducts properly (5%) Approx. 19.5 mil began programming their thermostat (26%) Approx. 11.25 mil bought a new programmable thermostat (15%) Approx. 14.25 mil cleaned coils (19%) Approx. 3.75 mil began heating and cooling by zone (5%) Approx. 4.5 mil purchased high efficiency central equipment (6%) Approx. 20.25 mil added caulking/weather stripping (27%) Approx. 9 mil installed energy efficient windows (12%)

15. Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 15 2010 Energy Efficiency Activities Performed Past 24 Months 4.5 mil Consulted with Energy Star web site (6%) 3.75 mil Got an energy audit on their home (5%) 3 mil Consulted with the DOE web site (4%) 4.5 mil Consulted with local energy utility (6%)

16. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 16  It is imperative that we find a better way to discuss both energy usage and home comfort with the homeowner decision maker. Homeowner Activities Past 24 Months