PB-237  619




A TECHNICAL AND  ECONOMIC STUDY OF WASTE OIL  RECOVERY,

PART II;  AN  INVESTIGATION OF DISPERSED SOURCES  OF

USED CRANKCASE OILS
TEKNEKRON,  INCORPORATED
PREPARED  FOR

ENVIRONMENTAL PROTECTION AGENCY
INSTITUTE OF PUBLIC ADMINISTRATION


OCTOBER 1973
                             DISTRIBUTED BY:
                             National Technical Information Service
                             U.  S. DEPARTMENT OF  COMMERCE

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BIBLIOGRAPHIC DATA
 HEET
1. Report No.
       EPA/530/SW-90C.2
2.
PB   237   619
 . Tide and Subtitle
  A  TECHNICAL AND ECONOMIC STUDY  OF WASTE  Olt RECOVERY
  Part II:  An Investigation of Dispersed  Sources of Used
             Crankcase  Oils
                                                  5. Report Date
                                                    October, 1973
                                                  6.
 . Author(s)
  Peter M. Cukor, Michael John Keaton, Gregory Wllcox
                                                  8. Performing Organization Kept.
                                                    No.
 . Performing Organization Name and Address
   Teknekron,  Inc. and  The Institute of Public Administration
   2118 Milvla Street                                      .    •
   Berkeley, California  94704
                                                  10. Project/Task/Work Unit No.
                                                  11. Contract/Grant No.
                                                    EPA Contract No:
                                                    68^01-1806
 2. Sponsoring Organization Name and Address
                                                  13. Type of Report & Period
                                                     Covered
                                                    Final 1 year
                                                                       14.
 IS. Supplementary Notes
 16. Abstracts
   An investigation of dispersed sources of used crankcase oil.  A study
   of consumer attitudes toward recycling used  auto crankcase oil.
 17. Key Words and Document Analysis.  17a. Descriptors

    Secondary  Oil Recovery,  Economic Analysis
 17b. Identifiers/Open-Ended Terms
                                              «wo
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                    A TECHNICAL  AND  ECONOMIC  STUDY

                        OF  WASTE OIL RECOVERY
Part II:   An Investigation of Dispersed Sources of Used Crankcase 011s
                This report (SW-90c.2) was written by
         PETER CUKOR, MICHAEL JOHN KEATON, and GREGORY WILCOX
     Teknekron, Inc., and The Institute of Public Administration
                    under contract no. 68-01-1806
                 U.S. ENVIRONMENTAL PROTECTION AGENCY

                                 1974

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This report has been reviewed by the U.S. Environmental Protection Agency.
Its publication does not signify that the contents necessarily reflect the
views and policies of the U.S. Environmental Protection Agency, nor does
mention of commercial products constitute endorsement or recommendation
for use by the U.S. Government.

An environmental protection publication  (SW-90c.2) 1n the solid waste
management series.

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                     Notice
The report A Technical and Economic Study of Waste 011
Recovery, prepared by Teknekron, Inc. and The Institute
of Public Administration under EPA Contract 68-01-1806,
has been published 1n three separate volumes under the
following titles:

A Technical and Economic Study of Waste 011 Recovery  -
ly of Waste Oil Recovery -
Waste Oil From Automobiles
Part I;  FederaTResearcnon waste uvl	

A Technical and Economic Study of Waste 011 Recovery  -
Part II;  An  Investigation of Dispersed Sources of Used
Crankcase 011s

A Technical and Economic Study of Waste Oil Recovery  -
Part III:   Economic. Technical and  Institutional
Barriers to Waste Oil  Recovery
                         111      Preceding page blank

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                               TARI F ftp
                               I rtDLt vr.
1.0  INTRODUCTION	.1
2.0  SUMMARY OF FINDINGS AND CONCLUSIONS	...	3
3.0  OIL PURCHASES AND TYPES OF BUYERS..............	9
     3.1  Purchase of Oi 1	........	9
     3.2  Who Are The Buyers?..	11
4.0  WHAT KIND OF OIL IS PURCHASED AND WHY?.:..!..;.	.........	17
     4.1  What Grades of Oil Are Purchased?..........	...17
     4.2  Brand Name and Price..............	,.<,.....	18
     4.3  Is Price Related to Quantity Purchased?	 —......20
     4.4  A Semi-Technical Note..................		,	22
5.0  LOCATIONS AND REASONS FOR CHANGING ONE'S OWN OIL	..23
     5.1  Where Is the Oil Change Performed?	23
     5.2  Why Do They Change Their Own 011?....	24
6.0  DISPOSAL OF THE USED OIL AND PREDISPOSITION TOWARDS
     ECOLOGICALLY SOUND MEANS OF DISPOSAL.	27
     6.1  How is the Used Oil Disposed?	27
     6.2  Predispositions Toward Ecologically Sound Means of Disposal	29
     6.3  Amount of Trouble Experienced in Used 011 Disposition	30
     6.4  Some Speculations	32
7.0  HOW MUCH USED OIL WILL BE RETURNED?.....	35
     7.1  What "Causes" Willingness to Return Used 011?	35
     7.2  Some Implications for  Public Management	40
8.0  ARE THERE OTHER FACTORS AFFECTING WILLINGNESS
     TO RETURN USED OIL?	43
     8.1  What is a "Reasonable" Deposit  for a Resealable Container?	43
     8.2  Does "Ecology-Consciousness" Affect Willingness
          to Return Used Oil?..	44
     8.3  Does "Conservation Awareness" Account  for
          Willingness to  Return  Used  Oil?		45
 9.0  A  PROBE  INTO CONSERVATION OF  RESOURCES...	47
      9.1  Government-Certification	47

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                     TABLE OF CONTENTS  (continued)
     9.2  A Probe Into Semantics	.48
ACKNOWLEDGMENT	^	51
APPENDIX A
     CONSUMER SURVEY QUESTIONNAIRE	53
APPENDIX B
     THE SAMPLE	63
                                     v1

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                               TABLE OF TABLES
Table 1:   Purpose of Purchase	......	9
Table 2:   Frequency Distribution of Annual Consumption
          of 011 for 011 Changes	......,;	....11
Table 3:   Age and Annual 011 Con sump t ton	,	12
Table 4:   Education and Annual 011 Consumption....	13
Table 5:   Income and Annual 011 Consumption	14
Table 6:   0-Types Derived From Demographic Data...*	15
Table 7:   0-Types and Annual 011 Consumption	.16
Table 8:   Grade of 011 Purchased	-.	18
Table 9:   Factors in Oil Purchase Decisions	19
Table 10:  Most Important Factor 1n Purchase Decision	20
Table 11:  Most Important Factor in Purchase Decision
           and Annual Oil Consumption	21
Table 12:  Location of Oil Change for Those Changing Their Own 011	23
Table 13:  Reasons for Changing One's Own Oil	24
Table 14:  Most Important Reason for Changing One's Own Oil	25
Table 15:  Means of Disposing of Used 011	27
Table 16:  Annual Amount of Oil Disposed of By Each Means of Disposal	28
Table 17:  Annual Amount of Oil Disposed of By Methods Requiring
           High vs. Low Degrees of Activity	29
Table 18:  Water and Land Pollution Caused by Oil Disposal	30
Table 19:  Trouble in Disposing of Oil	31
Table 20:  Trouble Experienced  By Various Means of Disposal	32
Table 21:  Effect of Amount of  Disposal Activity  on  Trouble
           Experienced  in Disposing of  Used Oil	,	33
Table 22:  Willingness  to Return Oil in Resealable Containers	35
Table  23:  Trouble in Disposal  and Willingness to Return Used  Oil	36
Table  24:  Disposal Activity  and Willingness  to Return Oil	37
                                      vtl

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                        TABLE OF TABLES  (continued)
Table 25:  Willingness to Return By Trouble 1n Disposal and
           Act1 v1 ty 1 n 01 sposal	: .39

Table 26:  Annual 011 Consumption (In Quarts) By Activity and
           Trouble In Disposal and Willingness to Return Used 011	41

Table 27:  Hypothetical Deposit Which Would Induce Oil
           Return (In Cents)	*	43

Table 28:  Ecological Rating of Respondent's Means of 011 Disposal
           and His Willingness to Return Used 011	45

Table 29:  Buying Recycled 011 and Willingness to Return Used 011	46

Table 30:  Respondent Willingness to Use Government Certified
           Recycled 011	48

Table 31:  Respondent Impression of Highest Quality 011 for
           Different Terms	49

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                              TABLE OF FIGURES
Figure 1:   Passenger-Car Motor-011 Market	2
                                      1x

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      AN INVESTIGATION  OF DISPERSED  SOURCES OF USED CRANKCASE OILS


                            1.0  INTRODUCTION
     Since the early 1960's the sales  distribution  of automotive  engine
oil has shifted drastically from service stations to  retail  stores  which
sell major brands of oil  at discount prices.   As shown 1n  Figure  1, In
1961 service stations accounted for about 70  percent  of all  sales of lube
oil for passenger cars while mass marketers accounted for  just  7  percent
of this market.  By 1971, service stations' share of  the lube oil market
had fallen to 45 percent.  Most of these sales were lost to  mass  marketers
whose market share had climbed to 28 percent.  By the late 1970's some  oil
industry officials expect that mass marketers will  have cornered  40 percent
of all passenger car lube oil sales with sarvlct stations  accounting for
only 35 percent of the market.

     This shift in lube oil sales patterns has also brought  about a marked
change in the disposition of waste crankcase  oils.   Formerly more than  80
percent of all used oils from passenger cars  were handled  by service sta-
tions, car dealers, or garages who, in the main, either paid collectors to
haul the oil away or received a payment from collectors for  the waste oil.
The collectors would sell the used oil to re-refiners and  producers of
asphalt or use the oil for highway maintenance and  dust control.  At present,
less than 60 percent of these wastes are handled 1n this fashion.  Prior
to the present study no information was available  as to the  ultimate disposi-
tion of more than 40 percent of all used crankcase  oils from passenger  cars.

     Indiscriminate disposal of used crankcase oils can lead to serious pol-
lution problems if the oil is discharged to a body of water or if it is
dumped on the ground and seeps through to the water table.  In addition, lubri-
cating oils are a valuable resource and are now in short supply.   Further,
the survival of many companies which re-refine used oils 1s being threatened
due to inadequate supplies of feedstock.
                                           r
      In order to estimate the magnitude of dispersed sources of used oil, the
methods of used oil disposal and consumer attitudes towards oil  purchases
 (especially the purchase of  recycled oil), i  study was made of the purchase
attitudes and disposal practices of persons who buy automobile crankcase oil
 1n discount stores and subsequently change their own oil.   In cooperation
with West Coast Community  Surveys,  Inc. of Berkeley, California, and Prof.
 Francesco Nicosia of  the University of California at Berkeley, a questionnaire
was prepared  and used  in interviews with approximately  600  persons who were
 buying oil at  discount stores  in Oakland,  California.   A copy of the question-
 naire  is  contained  in  Appendix A of this report.  The  results of the survey
 were  analyzed  and  interpreted  by Prof.  Nicosia.  The results of  this analysis
 form  the  basis  of  this report.

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                                    Figure 1
                             Passenger-car motor-oil market
               Estimated size of market-600-milliwi gal.
               Estimated share of market at retail: Q1961 Q1971
                  Service
                  stations


               Car dealers
              drifts, auto
              supply stores

                    Mass
                marketers
                            45%j
I7T]
Source:  National  Petroleum News; McGraw Hill, Inc; New York;  August, 1971, p.54.

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                 2.0  SUMMARY OF FINDINGS AND CONCLUSIONS
     In this survey consumers who change their own engine oil have been
Interviewed.  The main purposes of the Interviews were to Identify the
ways these consumers dispose of the used o1l> to estimate the quantity of
oil disposed of 1n each way, and to probe Into the psychological predis-
positions that underlie the choice of different methods.  The stress was
on problems  concerning pollution, although some attention was given to
problems concerning conservation of resources.

     The research design chosen was as follows.  "Discount" stores in the
Oakland, California,area, and a few 1n near-by areas, were selected on a
judgmental basis.  Permission from the store managers was obtained to
Interview buyers of engine oil 1n the store.  598 personal Interviews
were obtained during the last three weeks of August  1973,  The completed
questionnaires ( Appendix  A ) were coded and varifted:  key punching and
contingency cleaning were followed by data analysis.

     The structure of the analysis and the findings are presented 1n the
report beginning  on page 9  .  The following section summarizes the results
of data analysis according to the areas of Interest explored.

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                    OIL PURCHASES AND TYPES  OF  BUYERS
     During the Interviewing days,  3,027 quarts  of oil  were purchased.   Of
this amount, 774 quarts were purchased for adding only; 1,722 for oil chang-
ing only; and 531 quarts for both adding and changing oil.

     On the basis of respondents'  estimates, the total annual  volume of oil
purchases for oil changes only amounts to 13,300 quarts, for a man of  27.4
quarts per year per respondent.

     Several demographic characteristics are related to purchases of oil-
age, education, Income, race, and typt of residence (e.g. house or apart-
ment).  For example, respondents 1n their forties, with about twelve years of
schooling, and relatively higher Incomes (about 93 respondents) record  a mean
annual purchase of 31.4 quarts; whereas subjects 1n their sixties* with about
10 years of schooling, and relatively lower Incomes, record a mean purchase
of 21.9 quarts per year.

                 WHAT KIND OF OIL IS PURCHASED AND WHY?
     A very large proportion of the respondents buy "high reputation" oils.
For example, over 55% of the respondents bought brands like Pennzoll,
Quaker State and Castrol, and another 20% bought brands such as Standard,
Shell, Chevron and Havollne (Texaco).  Furthermore, about 80% of the Inter-
viewees bought high quality, heavy duty oil (API grades SC, SO, and SE).

     Brand name and lowest price are the most frequently mentioned reasons
for oil purchases.  Note, however, that those who buy larger quantities of
oil tend to be less concerned with price than those who buy smaller quan-
tities of oil. A factor analysis of the "reasons for purchase" strongly sug-
gests that the respondents tend to buy oil directly from "discount" stores
1n order to save money v1s-a-v1s the prices prevailing at gasoline stations
and car dealers.  Yet among the brands available 1n such stores, the respon-
dents tend to buy the more expensive products.


              LOCATION AND REASONS FOR CHANGING ONE'S OWN OIL


     Over 80% of the respondents mentioned "home garage" or "street or drive-
way" as the location where they change engine oil.  The most Important reason
for doing so 1s cost (64%); "auto hobby" and "better for car" are the next
most important reasons  (24%).

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           DISPOSAL OF THE USED OIL AND PREDISPOSITIONS TOMARD

                  ECOLOGICALLY SOUND MEANS OF DISPOSAL
     About 33% of the interviewees dispose of the used oil  by dumping 1t in
the backyard or elsewhere on the property.  The remainder of the respondents
dispose of their used oil in the following manners: service stations  (15%),
public dump (11%), storm sewer (11%), garbage can (10%),  empty lots (3%),
and other means (17%).  The quality of oil disposed of by each of these means,
per year, follows the same order of Importance.  For example, 3,776 quarts
per year are dumped 1n backyards while 394 quarts per year are dumped in empty
lots.

     Some of the methods of disposal mentioned by the respondents require
more effort and activity than others.  About 40% of the oil 1s disposed of
by methods requiring a high level of activity (taking 1t to service stations,
public dumps, or empty lots).  Thus a significant amount of human energy
might be harnessed by a program concerned with returning used oft to central
collection facilities.

     Furthermore, those consumers who dispose of the used oil by high acti-
vity methods tend to experience more trouble 1n getting rld'Of their used
oil than those who use methods requiring a low level of activity such as
dumping the oil in backyards and storm sewers.


                   HOW MUCH USED OIL MILL BE RETURNED?


     The respondents were asked a hypothetical question:   "If all oil were
sold in resealable containers, how  likely would you be to  return your used
oil  to a collection facility?"  The level of willingness is high:  35%  said
they would definitely do so, and  30% said they would probably do so.

     However,  experience suggests that responses to hypothetical questions
are  not reliable.  The data analysis shows  that the level  of expressed
willingness varies a  great deal according to two underlying psychological
factors:  (a) whether  the respondents experience trouble with their present
method of disposal of used oil, and (b) whether their method Implies  a  high
or low level of  activity.

      More  importantly,  the  amount of used oil  that may be  returned varies
not only  by the  level of respondents'  willingness  but also by  the  amount
of trouble  experienced  and  type of disposal  method. There  1s some  evidence
that three  variables  may affect "amount  of returned used oil"  in a
non-linear  fashion.

      This  section concludes  with an Illustration of the wide range of esti-
mates  of  the  total  amount of used oil  that may be returned, and with some

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suggestions of how this range may be narrowed.   There 1s  a need for further
analysis if policy decisions are to be based on the prediction of how much
used oil is likely to be returned 1f oil  1s  sold 1n resealable containers.


    ARE THERE OTHER FACTORS AFFECTING WILLINGNESS TO RETURN USED OIL?
     Factors which may affect the amount of used oil  the respondents would
return to collection facilities have been considered.  Two Variables were
derived — "ecology consciousness" and "conservation awareness" — but data
analyses, although limited, show weak or no relationships between those
scales and willingness to return used oil.

     Another potentially very Important factor does not seem to be re-
lated to the likelihood of returning oil.  We asked the Interviewees to
express what would be the minimum deposit charge that would make them re-
turn a resealable container.  Here 1t was found that those who buy large
volumes of oil are no more likely to mention a low deposit than those who
buy small volumes of oil; similarly, those 1n higher Income groups are no
more likely to mention a high deposit than those in lower Income groups.
Further analysis may clarify this lack of association.


                  A PROBE INTO CONSERVATION OF RESOURCES
     As mentioned above, the stress of the research design was on problems
concerning pollution.  Regarding conservation of resources, it was found
that the willingness to buy recycled oil -- if government certified -- is
high:  57% of the respondents said that they would definitely buy or prob-
ably buy (26% and 31%, respectively).  Further analysis of this willingness
is  advisable for here, too, the respondents were reacting to a "hypothe-
tical" question.

     The  study  indicated  that  labeling of  recycled oil may  be a  signifi-
cant factor  in  the  public's assessment of  Hs  quality.  The survey  showed
that the  term  "re-refined" implies  "high quality oil"  for 51% of the  re-
spondents, while "reprocessed"  Implies high quality  for 20%, and "recycled"
for 13% of the  respondents.

                            CONCLUDING REMARKS
      In this  project,information about two interdependent  aspects  of  the
 problem of dispersed oil  sources was  studied.   First,  1t was  determined
 how much oil  is  bought, what kind of  oil  is bought,  and  how much oil  is
 disposed of by which method.  Second, the reasons  why  people  behave differ-
 ently were explored.  Associations were found  between  some demographic

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attributes of the buyers and their volume of purchases.   Associations were
also found among a few psychological variables, the current methods of oil
disposal, and the Intentions to return used oil to central  collection fa-
cilities.

     At different points in this chapter, possibilities for further anal-
yses of the what and the why of the respondents1 behaviors and feelings
are indicated"!Other useful questions can be answered with the present
data base.

     For example:  Are demographic characteristics associated with differ-
ent methods of disposal?  Are Income and education related with scales of
"ecological consciousness" and "conservation awareness"?  Since the num-
ber of non-white and white respondents 1s nearly equal, and since 1t 1s
generally true that the two ethnic groups vary In Income and education dis-
tribution, do some of the findings for the entire sample vary substan-
tially in each ethnic group?  And, finally, can ways be found to limit to
a more manageable range the estimate of how much used oil 1s likely to be
returned  if resealable containers  are made available?

     A word about generalizing the  results of  the study.  Appendix 36
 (The Sample)  gives an idea of how closely  the  present sample reproduces
 some demographic  characteristics of the Oakland area.  A natural question
 is  to wonder  whether this area represents, say, the standard metropolitan
 areas of  the  entire country.  Simple,  though time consuming, computations
 can be made and a reliable answer obtained.

      It  should  be stressed, however,  that  other more  Important factors
 should be kept  in mind, concerning  both  the ability to generalize the re-
 sults and any future studies  that may be undertaken.  First, evidence
 seems to show that both the what and  why may depend on social-psychologi-
 cal predispositions.  Thus a  sample which  1s "representative" of age,  In-
 come, education and race may  not be representative of other relevant
 psychological variables.  This  1s  a consideration which  1s  all too often
 overlooked  and  may lead to misuses  and misinterpretations  of higher  order
 statistical  analyses.   Second, different climates and other environmental
 conditions  throughout  the nation may  well  affect  the  computation of  the
 annual  purchases  and disposal  of  oil.   Finally, buyers were observed  only
 during  the last three  weeks  of August.  It 1s  probable  that the volume
 of their purchases  and  their uses  of  different methods  of  disposal may
 vary  throughout the year.

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                 3.0  OIL PURCHASES AND TYPES OF BUYERS
3.1  Purchase of 011


     The respondents were buying oil for their cars and motorcycles* for
the following purposes:


                    TABLE 1:  Purpose of Purchase


               TO ADD OIL ONLY             43.5*  .(260)

               TO CHANGE THE OIL ONLY      47.SK  (284)

               TO ADD AND CHANGE OIL        9.0$  ( 54)

                                                   598


Of these respondents, twenty-four were buying oil to add to a second car,
twenty-nine were buying oil to change 1n a second car, and elaht for adding
and changing the oil in their second vehicle.  The "add and change" category
Includes both those people who will first add some oil and later change 1t,
and those who will change their oil first but have anticipated the need for
oil to be added at a later time.

     Among those who bought oil only to add  (260), 73.856 (192) said that
they usually change the oil 1n their vehicle  themselves.  Therefore, for
purposes of  studying issues related to the purchase of oil (e.g., consumer
attitudes with  respect to recycled oil), there is a total of 598 respondents.
For issues dealing with the changing of oil  (e.g., modes of disposing  of
used oil),, there is an upper limit  of 530 respondents  (I.e., 192 plus  284
plus 54).

     The total  quantity of  oil  purchased by  the  respondents on the  days of
the interviewing was 3,027  quarts.  Of this  amount 774 quarts were  used for
adding only,  1,722 were used for  changing only,  and  531 quarts were used
for adding and  changing.

     The amount of oil purchased,  or poured  into engines, does not  equal
 *  There were only 9 respondents  who bought oil  for motorcycles.


                                     9      Preceding page blank

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the amount of oil which 1s drained from engines during oil changes.  Some
oil is burned by the engine and 1s discharged to the atmosphere.  Therefore
the annual amount of oil used by each respondent for oil changes was comput-
ed by dividing a respondent's estimate of how many nnlles per year he and
his family drove a particular veh1cle,by his estimate of the average number
of miles driven between oil changes.  This new quantity was then multiplied
by the respondent's estimate of the amount of oil required to change the
oil in this engine once:


       # of miles driven/year
   '	    amount of oil required  c  annual amount of
                               * to make an oil change   c  oil used for oil
# of miles between oil changes                              changes


This estimate was computed for all of the respondents with the exception of
those who never  change their oil themselves* since their estimates could be
expected  to be less accurate.

     The  frequency distribution of annual amounts of oil used for oil changes
is shown  in Table 2.
                                     10

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                               TABLE 2
              Frequency Distribution of Annual Consumption
                         of  011  for 011 Changes
           Total  011  Consumption*       Number of Respondents

              1-10  quarts                      89
             11  - 20                             157
             21  - 30                             82
             31  - 40                             46
             41  - 50                             22
             51-60                             23
             61  - 70                             11
             71-80                             17
             81-90                               4
             91  - 100                             9
             More than 100                        5
                Number of Respondents   =       465
     The estimates of annual oil usage for oil  changes were then summed
to obtain the total annual amount of oil  Involved  1n oil changes — 13,300
quarts.  The mean is  27.4 quarts per year.
3.2  Mho Are The Buyers?
     Who are the respondents who buy large versus  small amounts of oil
annually (relative to each other)?  Of course,  the size of one's vehicle
makes a difference.  But if vehicle size 1s held constant, how does one's
  Estimates of less than 4 quarts and more than 125 are ex
                                    11

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age, education and Income correlate with the amount of oil  used for oil  chan-
ges annually?  Tables 3, 4, and 5 answer this question.
                                TABLE 3
                     Age and Annual 011 Consumption
Age
18 &
19 -
23 -
27 -
31 -
36 -
46 -
Over
under
22
26
30
35
45
60
60
Number of
Respondents
23
73
101
67
53
55
77
25
                                    Average Quarts
                                       20.985
                                       24.321
                                       28.701
                                       26.400
                                       29.668
                                       32.964
                                       31.409
                                       24.950
Total Quarts
    483
   1775
   2899
   1769
   1572
   1813
   2418
     624
 ^Estimates of less than 4 quarts and more than 125 are excluded.
                                     12

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               TABLE 4
tducation and Annual 011  Consumption
Education
(years)
5
6
7
8
Q
10
11
12
13
14
15
16
17
Number of
Respondents
10
6
6
12
9
21
21
153
46
60
33
42
55
Average Quarts
27.700
39.600
15.417
35.052
34.556
29.400
25.168
27.802
29,648
29.627
30.511
24.272
26.315
Total Quarts
277
238
93
421
311
617
529
4254
1364
1778
1007
1019
1447
                    13

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                                TABLE  5

                   Income and Annual 011  Consumption
Income

Under $3000

3000 - 4999

5000 - 7999

8000 - 9999

 10,000 - 14,999

 15,000 - 19,999

 Over  20,000
Number of
Respondents

    40

    32

    49

    73

   148

    74

    50
Average Quarts

    22.684

    22.243

    26.136

    28.114

    27.780

    30.497

    36.603
Total Quarts

     907

     712

    1281

    2052

    4111

    2257

    1830
     Some Inferences can be made from these tables.  First, the relation-
ship between age and oil consumption 1s, 1n principle, complex.  The results
suggest a nonlinear relationship -- the largest consumers (1n terms of av-
erage number of quarts used annually for oil changes) are those between 31
and 60 years of age, with both those younger and older consuming consider-
ably less.  In essence, large purchases coincide with the high activity per-
iod of a person's life.

     With respect to education, the relationship 1s unclear.  The largest
average users are men who have not completed high school, but Increased
education does not seem to bring lower oil usage, except, perhaps, for those
in  the highest educational categories.  Further data analyses could clarify
this relationship (e.g., by considering the respondent's occupation).

     There  is a strong positive relationship between annual income and oil
consumption.  With the exception of only one category, oil usage for oil
changes increases steadily with income.

     A typology  (in Euclidean space) was computed of the respondents based
on  their aqe, education,  income, residence  (house/apartment),  and  ethnicity.
Four distinct types were  found which differ significantly, particularly with
respect to  age, education, income, and annual oil consumption.  The four
types are defined in Table 6.
                                     14

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                                 TABLE  7

                   0-Types and Annual Oil  Consumption
0-Type      Number of Members

  1                150

  2                 58

  3                 93

  4               283
Total Annual
Consumption

  3724.25
  2921.38

  7202.40
Mean Annual
Consumption

   24.83

   21.90

   31.41

   25.45
     From Table 7 It 1s clear that there is a particularly large difference
In the mean consumption figures for types 2 and 3.   Type 2 appears to be
composed of older men, with relatively low education and Income.  Respon-
dents with these characteristics would tend not to drive a great deal.  In
contrast, the members of type 3 are middle-aged, most likely at the peak of
their earning power.  Although these respondents would tend to rely heavily
on their cars, both for commuting and leisure activities, they are also able,
because of their relatively high Incomes, to take care of their vehicles
and change the oil 1n them frequently.  Types 1 and 4 are marked by moderate
oil consumption.  Type 1 contains people who are over a decade older, have
slightly higher educational attainment, and have somewhat higher Incomes
than those in type 4.

     In sum, 1t 1s evident that relatively simple demographic characteris-
tics are associated with the quantity of 011 bought.  Although further ana-
lyses would be necessary to assess more preelsely the Interactions among
such variables, the data strongly suggest that any program designed to af-
fect buying patterns would have to take these findings  Into account.
                                     16

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               4.0  WHAT KIND OF OIL IS PURCHASED AND WHY?
4.1  What Grades of 011  Are Purchased?
     The present sample was drawn entirely from Individuals purchasing oil
from retail stores as opposed to service stations.  Although no data were
obtained on those customers who buy oil at service stations, 1t appears that
those who purchase their oil from retail stores are primarily Interested
in obtaining high quality oils.

     Over 55% of the respondents bought high reputation oil produced by in-
dependent oil companies (e.g., Pennzbll, Quaker State, Castrol, Valvollne),
and another 2Q% purchased oils bearing the trademark of a major oil producer
(e.g. Standard, Shell, Chevron, Havollne [Texaco]).

     Another indication of the desire for oil of high quality 1s the grade
of oil purchased.  The findings, shown 1n Table 8, Indicate that over 80%
of the respondents purchased the highest grades of oil: API grades SC, SD,
and SE.
                                     17

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                                TABLE 8
                         Grade of Oil Purchased
SC and SE
SO and SE
SC and SD-SE
SE
SA or ML
SC or MS
SB and SC
Others - rated
Others - not rated
Number of
Respondents
    245
     96
     69
     68
     40
     21
     20
     20
      9
    588
41,7
16.3
11.7
11.6
 6.8
 3.6
 3.4
 3.4
 1.5
                                                       100.0
4.2  Brand Name and Price
     The concern for  high quality  in oil purchased was further explored by
 determining  the criteria used  by consumers  1n choosing among oils.  The
 factors are  listed  below in  the order  of the frequency with which  they were
 mentioned  (a respondent was  allowed to name several criteria):
                                     18

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                                TABLE  9
                   Factors 1n 011  Purchase Decisions
                                Number of times
Factor                          mentioned             Relative Frequency
Brand name                            461                   56.3%
Lowest price                          199                   24.3
Viscosity                              69                    8.4
SAE rating                             12                    1.5
Recommendations of mechanic,
dealer, or manufacturer                13                    1.6
Medium price                            6                     .7
Recommendations of friends
or relatives                            5                     .6
High price                              5                     .6
Labeling*    '                           3                     .4
Other reasons                          46                    5.6
                                      819                  100.0
      Respondents were  then  asked  to  rank  these factors  1n their order of
 Importance  1n  deciding which  oil  to  buy.  Whereas brand name was mentioned
 2.3  times as often  as  lowest  price,  brand name Was selected as the most
 Important factor fn the  purchase  decision 3.1 times as  often as lowest price:
 *refers to phrases like "meets or exceeds all  car manufacturers'  warranty
  requirements"
                                     19

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                                 TABLE  10

                Most Important Factor in  Purchase  Decision
                          Number of times
Factor                    mentioned

Brand name                     349

Lowest price                   114

Viscosity                       34

SAE rating                       8

Others                          31
Relative Frequency, %
                               536
     These findings have several Implications for the marketability of re-
cycled oil.  First, since brand name (which we take as an Insurance of high
quality 1n the minds of consumers) 1s generally more Important than lowest
price, recycled oil produced by one of the well-known Independents or by
one of the major oil companies may be able to gain acceptance.  Furthermore,
as is shown in Table 30 below, recycled oil would be most attractive to the
consumer 1f 1t  were also certified by  the government as  equal  1n  quality  to
virgin  oil.
 4.3   Is  Price  Related  to Quantity


      Questions arise as to whether those who buy a great deal of oil annually
 are  particularly  Interested 1n lowest price and whether those who use re-
 latively little oil can afford to concern themselves with maximizing quality.
 In other words, one might anticipate that those who buy relatively more oil
 might mention  lowest price as the most Important factor 1n their purchase
 decision more  often than those who buy relatively less oil.

      Table  11  shows, however, that, if anything, those who buy larger vol-
  umes of oil are  less  concerned with buying oil on the basis of lowest price
 than those  who buy smaller quantities of oil.

      This finding could be interpreted in several ways.  First, large pur-
 chases of oil  may indicate high vehicle usage  (and, therefore, a high degree
                                     20

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                                             TABLE 11
                            Most Important Factor in Purchase Decision
                                                              *
                                    and Annual  Oil Consumption
                            Very Low               Low
Moderate
High
Most Important
Factor
Lowest price
Brand name
Viscosity
SAE rating
Labeling
Performance
Other
Number of
Respondents
25
71
9
0
0
0
4
Number of Number of
% Respondents % Respondents &
22.9
65.1
8.3
0
0
0
3.7
27
84
2
2
0
3
7
21.6
67.2
1.6
7.6
0
2.4
5.6
27
83
7
5
0
5
10
19.7
60.6
5.1
3.6
0
3.6
7.3
Number of
Respondents
10
45
3
0
1
2
4
%
15.4
69.2
4.6
0
1.5
3.1
6.2
 *  The observed relationship 1s statistically significant  at the  0.136 level.
 ow:   less  than or equal  to  12 quarts  per year
 over 12 but less than or equal  to  20  quarts  per year
ite:   over  20 but less than  or equal to  50  quarts per year
  over 50 quarts per year
r of Respondents « 436

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of reliance on the vehicle), which could explain the desire to maximize
quality rather than minimize cost.  Similarly,, frequent oil changes may re-
flect meticulous car care; such an owner would probably want the best oil
possible for his car, regardless of price.  Further, It 1s possible that
those who buy greater volumes of oil own larger ears, and therefore re-
quire more oil per change, than those who buy smaller volumes of oil.  In
any case, the major significance of this finding 1s that low price does not
constitute a powerful means by which to Influence those who buy a large
volume of oil annually.
4.4  A Semi-Technical Note


     The Identification and measurement of the reasons underlying people's
behavior are complex and time consuming operations.  They usually require
a number of "pre-tests" and data analyses before reliability and validity
can be established.  Although these operations were omitted 1n this study,
a factor analysis has been performed for the responses 1n Tables 9 and 10,
separately.  Some Interesting results were obtained.  First, price and
brand name measure with high reliability one "cognitive" dimension (I.e.,
reason) in the minds of the respondents.  Furthermore, price and brand are
negatively associated in this dimension.

     The results Indicate, however, that much more probing will be necess-
ary should one be Interested 1n a more precise Identification of the re-
spondents' motivations and their effects on quality and quantity of oil
purchased by different types of people*
                                     22

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           5.0  LOCATIONS AND REASONS  FOR CHANGING ONE'S OWN OIL
5.1  Where is the Oil  Change Performed?


     One of the goals of this effort was to determine the following  (for
those respondents that change their oil at least some of the time):   (1)
who changes the oil, (2) where 1s 1t changed, and (3) the reasons why the
respondent changes Ms own oil.

     Of the 531 respondents who buy oil for oil  changes, 95% change  the oil
themselves or have a friend do 1t.  Among this group of the 496 people,
there is substantial variation as to where they change their oil:


                                 TABLE 12

                     Location of 011 Change for Those
                          Changing Their Own 011
 Location                    Number of Respondents       Relative Frequency. %

 Home garage                          192                       38.7%

 Street  or driveway                   209                       42.1

 Service Station                       79                       16.0

 Others                                16                        3.2

                                     496                      100.0


 Since only  16% of those who change their oil  themselves do 1t at a service
 station,  the vast majority of respondents  probably experience some difficulty
 in disposing of  their oil.  They may not have suitable containers 1n which
 to put  their waste  oil  and may not know where to dispose of  1t.
                                     23

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5.2  Why Do They Change Their Own Oil?

     The most common reason given for changing and adding one's own oil  was
the savings involved.  As mentioned earlier an Individual's decision to
purchase oil at a discount store 1s motivated primarily by a desire to save
money.  Since nearly all service stations and garages charge persons who
purchase their oil elsewhere a significant fee for changing oil, little or
no savings would be realized by buying oil at a discount store and paying
someone else to change it.  Evidently, spending a little extra at the dis-
count store in order to obtain the best grades of oil 1s rationalized by
the savings which results from servicing one's own vehicle.

     Cost was not the only factor which people mentioned as reasons for chang-
ing their own oil, however.  One hundred and fourteen respondents said that
they changed their own oil because they enjoyed doing the maintenance work
on their car.  Convenience was also a significant reason, as was the belief
that it was better for the car.
                                TABLE 13

                    Reasons for Changing One's Own 011
Reason                  Number of Times Mentioned      Relative Frequency, %

Cost                              378                         56

Auto hobby                        114                         17

Better for car                     87                         13

Convenience                        55                          8

Lower quality of oil
available at service  station       24

Other reasons                      14

                                  672

      (a  respondent  was  permitted  to  give  several  reasons)

      Persons  interviewed  were then asked  which factor was  the most important
 in deciding  to  change their own  oil.
                                     24

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                                TABLE 14
            Most Important Reason for Changing One's Own 011
Reason                       Absolute Frequency        Relative Frequency
Cost                                320                       64.6*
Auto hobby                           63                       12.7
Better for car                       56                       11.3
Convenience                          34                        6.9
Lower quality of oil
available at service stations        12                        2.4
Other reasons                        10                        2.0
                                    495                      100.0
As illustrated in the previous technical note, some further analysis of these
"verbal" responses should give a stronger Insight Into the psychological
meaning(s) and the statistical strength of these observed reasons.
                                     25

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             6.0  DISPOSAL OF THE
               TOWARDS ECOLOGICALLY  SOUND MEANS OF  DISPOSAL
6.1  How 1s the Used 011  Disposed?
     As shown 1n Table 12, over 80% of the respondents  who change their  own
oil change 1t either in their garage ©r 1n front of their residence.   The
following table illustrates the means of disposing of the used oil:
                                TABLE 15
                     Means of Disposing of Used  011
Means                          Absolute Frequency      Relative Frequency
Dump in backyard or else-
where on property                    157                      33.6%
Take to service station               73                      15.6
Take to public dump                   54                      11.6
Dump in storm sewer                   53                      11.4
Dump in garbage can                   50                      10.7
Dump in empty lot                     16                       3.4
Pour down toilet                       4                       0.9
Sell                                   3                       0.6
Pour down sink                         2                       0.4
Use around  the house                   3                       0.6
Other means of disposal              _52_                     11.2
                                     467*                   100.0%
   *  approximately fifty respondents  gave multiple  answers

                                    27

-------
     In addition to the number of respondents who use a particular means
of disposal, the annual amount of used oil which was disposed of by each
method was determined:
                                TABLE 16

                    Annual Amount of 011 Disposed of By
                          Each Means of Disposal
                                               Annual Amount, (quarts)

                                                        3776

                                                        2014

                                                        1663

                                                        1244

                                                         677

                                                         394

                                                         145

                                                           9

                                                        1858

                                                       11,780  (quarts)


      Note that although pouring oil  into the storm sewer was mentioned  only
 one time less than taking it to a  public dump,  the latter  method  of disposal
 accounted for about 33 percent more  oil  than the former method.   Consequent-
 ly (and fortunately),  those who use  the  sewer are relatively  light users  of
 oil compared to those  who take their used oil to a public  dump.   Similarly,
 those consumers who place their used oil in garbage cans also  appear to be
 light users relative to both of the  groups mentioned above.
                                     28

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6.2  Predispositions Toward Ecologically Sound Means of Disposal


     The means of disposal listed in Table 16 require different amounts of
activity from each respondent.  Ne can group these means Into those that
imply "high" or "low" activity as follows:


                                TABLE 17

              Annual Amount of 011 Disposed of By Methods
              Requiring High Vs. Low Degrees of Activity
                              (in quarts)
High Activity Methods                         Low Activity Methods
                                              • ••""^^^•"^^^•"^^•^^••^••"••^^••^•••""^

Service station    2014                       Backyard       3776

Public dump        1663                       Storm sewer    1244

Empty lot           394                       Garbage         677

Sell               	9                       Toilet          145

                   4080                                      5842
     About 40% of the  total amount of oil was disposed  of  by methods which
require a relatively high  level of effort.   It  1s  therefore possible that
there 1s a significant amount of  human  energy which might  be harnessed 1n
a program of returning used oil to a reasonably convenient collection
facility.

     These figures also permit an examination of the  distribution and amount
of pollution generated annually by the  respondents.   (It has been assumed
that used oil which  1s sold or returned to  a service  Station creates no
pollution.)

     Oil dumped  on the ground will seep down and has  some chance of reach-
ing the water table, depending on location  of the  disposal site.  Oil is
biodegradable, however, and dumping  1t  in thousands of backyards and lots
is preferable to concentrating it in one area,  as  1n  public  dumps (which in
the case of Oakland  are located quite  near  San  Francisco Bay.)  011 placed
in garbage cans  ends up 1n the public dump, too.  Oil flushed  down the toi-
let receives the same  processing  as  sewage, which  is  to say,  processing
not designed for oil.   In  some areas,  the storm run-off and  sewage are
combined 1n one  system, but assuming that they  are not, pe1""-5"" nil down
the storm sewer  is the most ecologically dangerous form ol


                                     29

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especially during the rainy season when the amount of run-off may exceed
filtering capacity.  Table 18 summarizes the data for the volume of oil
disposed of in environmentally harmful ways:
                                TABLE 18

              Water and Land Pollution Caused by 011 Disposal
              4,170 quarts are dumped in backyards

              2,340 quarts end up  in the public'dump

              1,244 quarts are dumped 1n the,, stqrm sewer

                 145 quarts are flushed down  the  toilet

              7,899                -^


 6.3   Amount  of Trouble  Experienced In Used Oil Disposition
                                    i

      In addition to  the 73  people  who toolr their used oil  to  a  service
 station after draininq  it at home, tflere were  79 respondents  who changed
 their own oil at a service station.  Whereas these 79  respondents were
 generally omitted from the analysis involving the various means of disr
 posal, the existence of this group should be kept in mind when inter-
 preting particular results.  For  instance, the responses Of these 79 peo-
 ple were not included in the answers to the following question:

                 How much trouble do you have getting rid of the
                 used oil -- is it a lot of trouble,  quite a bit
                 of trouble, a little trouble, or no trouble at all?
                                     30

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                                TABLE  19

                       Trouble in   Disposing  of 011
Amount of Trouble               Absolute Frequency      Relative  Frequency

A lot of trouble                       15                      3.6*

Quite a bit                            16                      3.8

A little trouble                       70                     16.6

No trouble                            320                     76.0

                                      421                    100.0%
     Since, as 1s shown 1n Table 20, those who take their used oil  to a
service station are the group most likely to say that they experience a
lot of trouble, we can assume that adding the 79 respondents who chanqe
their oil at a service station would Increase, although not dramatically,
the estimation of the amount of trouble which consumers experience 1n dis-
posing of their used oil.  The point 1s not so uuch that 1n every case the
addition of this group would make a difference for the analysis, for 1n
this instance the association between means of disposal and trouble ex-
perienced in disposing of used oil is extremely weak, but rather that the
policy maker should be alert to the possible difference the Inclusion of
this group could make.
                                     31

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                                 TABLE  20

              Trouble Experienced By Various Means of Disposal
                                            Trouble
Means of Disposal      A lot      Quite a bit      A Uttle      None
Sell

Service Station

Sewer

Toilet

Garbage
Backyard
Empty Lot

Public Dump

Other





5.1* 3.4*
(3) (2)
2.4*
(1)
M •»

2.3% 4.7
(1) (2)
4.9* 1.4%
(7) (2)
7.1*
(1)
7.5*
(4)
3.6* 8.9*
(2) (5)
3.4* 3.9*
(14) (16)
50*
(1)
15.3*
(9)
11.9*
(5)
33.3*
(1)
25.6*
(11)
11.9*
(17)
14.3*
(2)
24.5*
(13)
14.3*
(8)
16.1*
(67)
50*
(1)
76. 3<
(45)
85.7*
(36)
66.7*
(2)
67.4*
(29)
81.8*
(117)
78.6*
(ID
67.9*
(36)
73.2*
(41)
76.6*
(318)
 ( )  = number of respondents


 6.4   Some Speculations


      It is interesting that while some respondents engage in considerable
 activity in disposing of their oi1! (e.g., taking it to the public  dump),


                                     32

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very few people find it particularly troublesoma to dispose of their oil.
There is some relationship between the amount of activity Involved  In
disposing of the used oil asid the amount ©f trouble experienced,  but the
relationship is not particularly strong.
                                TABLE 21

             Effect of Amount of Disposal  Activity on Trouble
                   Experienced in Disposing of Used Oil*
Activity
A lot
Quite a bit
                              Amount of Trouble
A little
None
Total
High Activity      10


Low Activity       13
     7.J
                     5.6%
  25            93        128
    19.5%         72.7%      100%

  34           184        231
    14.7%         79.7%      100%

       Number of Respondents 359
 High Activity:  Sell, service station, public dump, empty lot
 Low Activity:  Storm sewer, toilet, backyard, garbage

 *  The observed relationship 1s statistically significant at the 0.15 level.
 Whereas  27.3%  (7.8% +  19.5%) of those engaging in high activity means of
 disposal  experience some  trouble, only  20.3%  (5,6% + 14.7%) of those en-
 gaging  in low  activity means of disposal experience some trouble.  The re-
 lationship exists  in the  expected direction,  but it 1s not as strong as one
 might have anticipated.

      Although the respondents do not experience a great deal of  trouble  in
 disposing of their oil, this may be  largely at the expense of the environ-
 ment.   It is probably  not so much a  question  of people not caring about
 what happens to the oil as it  1s a matter  of  their not realizing  where the
 oil  eventually goes.   We  can speculate  that they are unaware of the eco-
 logical  implications of their  actions.

      Compounding the problem is the  absense of a well-publicized  and feasible
 means of ecologically-sound disposition.   Even those who take their used  oil
 to service stations may encounter resistance  since the stations themselves

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in some Instances must pay to have used oil  carted away.   Probably,  a large
portion of the respondents who are able to change their oil  at a service
station or bring their oil there may be able to do this because the  service
station has special facilities for user-performed oil  changes, they  are
friendly with the management or because they do It without the knowledge or
permission of the service station owners.  In sum, the consumer may  be rela-
tively unaware of the implications of his actions, and market forces may
not be structured to direct used oil Into ecologically-sound means of dis-
posal .
                                     34

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                7.0  HOW MUCH USED OIL WILL BE RETURNED?
     In this section, a few key questions for public management will  be
examined by Identifying some of the psychological  processes that may
describe the potential success of different options dealing with pollution
control policies.
7.1   What "Causes" Willingness to Return Used 011?


     How can public willingness to return resealable containers to a col-
lection facility be estimated?  To begin with, the level of willingness
of the interviewees is high, as illustrated in Table 22:


                                TABLE 22

            Willingness to Return Oil in Resealable Containers
                            Absolute Frequency        Relative Frequency

 Definitely would                ...   210                       35.9*

 Probably would                     181                       30.9

 Might                               71                       12.1

 Probably would  not                  73                       12.5

 Definitely would  not               50                        8.5

                                   585                       100.0%
      Experience in conducting surveys has shown that answers to "hypothe-
 tical"  questions have low predictive values.   The results in Table 22 can
 be analyzed by asking:   What factors may account for willingness to return
 used oil?  In Table 23  the amount of trouble that one currently experiences
 in disposing of his oil is positively related to willingness, but the re-
 lationship is not particularly strong:


                                     35

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                               TABLE 23

          Trouble in Disposal  and Willingness to Return Used 011*
                        A lot       !HHfe2£
Willing to Return       Quite a lot           A  little       None


Definitely would           15                     32           118
                             50*                   45.n         37.1%

Probably would              9                     24            96
                             30%                   34.3%         30.2%

Might                       4                      6            44
                             13*                   8.6*         13.8*

Probably not and
definitely not              2                      8            60
                             7*                     11.4*         18.9*

                           30                     70          318
                             100*                   100*         100*

*  The observed relationship 1s statistically significant  at the  0.25 level.


     Since it has already been shown that the amount of  activity  involved in
disposing of one's oil  1s positively, although weakly, related to the amount
of trouble experienced  (Table  21), it would not be surprising to  find that
the  amount of disposition activity 1s positively related to willingness  to
return used oil.  Table 24 shows that this is 1n fact the case:
                                    36

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                                 TABLE 24

              Disposal  Activity and Willingness to Return 011*
                                                Activity
Willingness to Return                      High .         Low
Definitely would                           61            80
                                             47.7%         34.6%

Probably would                             41            70
                                             32.0%         30.4%

Might                                      11            36
                                             8.6%          15.7%

Probably would not
Definitely would not                       15            44
                                             11.7%         19.1%

                                          128           230
                                             100%          100%

Number of respondents = 358

*  The observed relationship 1s statistically significant at the 0.015 level


     Positive relationships among three psychological variables have been
established, but the casual nature, if any, of such relationships has not
yet  been explored.  What  is known at this stage can be represented 1n the
flow chart below:
                                    37

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                 ACTIVITY
                 Involved In
                 disposing of1
                 used oil
                               WILLINGNESS
                               to return used
                               oil to collection
                               facility 1f sold
                               1n resealable con-
                               tainers
TROUBLE
experienced 1n
disposing of
used oil
     Is the relationship between "activity"  and "willingness"  simply due to
the Intervening effect of "trouble"?  Or does "activity"  specify the con-
ditions under which the relationship between "trouble" and "willingness"
holds more or less strongly?

     If the relationship between activity and willingness were spurious
(I.e., due to the Intervening effect of trouble), then the association be-
tween them would be wiped out for each of the two values of the variable
"trouble" (i.e., for "no trouble", and for "some or more trouble").  This
situation is presented in Table 25:
                                     38

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V9
                                                   TABLE 25

                     Willingness tp Return By Trouble in Disposal and Activity in Disposal
       Willingness


       Definitely would


       Probably  would


       Might
       Probably would not
       Definitely would not
                                                                Trouble
          Some or More
       Means of Disposal
High ActivityLow Activity
     24
       63.2%
     13
       34.2%
                                        2.62
18
  36.0%
19
  38.0%
                                                         14.0%
                         12.03
                             None
                       Means of Disposal
                High ActivityLow Activity
39
  41.5%
30
  31.9%
                                            11
                                              11.7%
                                            14
                       14.9%
62
  33.0%
55
  29.3%
                                      30
                                        16.0%
                                      41
                                     38
                      SO
                     94
                188

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     The figures in Table 25 clearly show that the relationship  between
activity and willingness is not spurious; 1n fact, 1t 1s  specified  by  the
variable trouble.  When trouble 1s experienced, the relationship becomes
stronger; when it is absent, the relationship becomes weaker.
7.2  Some Implications for Public Management


     What are the implications for public management of the psychological
process which seems to underlie the respondents' willingness to return used
oil in resealable containers to central collection points?  This question
can be answered by proceeding in two steps.

     First, the number of respondents likely to return used oil must be
determined.  For example, 35% of the Interviewees said they would definite-
ly do so  (Table 22).  However, the relationships established in Table 25
indicate  that this willingness depends on the amount of trouble experienced
and the activity implied by the methods of oil disposal.

     This  suggests that respondents who said they were willing to return
the oil may have a different probability of doing so.  To Illustrate, while
the respondents who experience trouble and dispose of their oil by a high
activity  method may be very likely to  return used oil to a central collection
point  (24 respondents), the respondents at  the  opposite end of the scale
 (no  trouble,  low activity) may be much less likely to do so (a total of 62
respondents).  The same considerations apply to the  Interpretation of the
other  degrees of willingness  1n  Table  25.

     All  in  all, the  number of people  who will  return used oil  to a central
 facility may  differ  substantially from the  verbal "hypothetical" responses
 recorded in  Table  22.  Further data  analysis could yield an estimate  of
 the probability  of  respondents to do 1n  fact what they  think  they would do,
 and thus provide an  estimate  of  the  size of the "good"  market segment.

      Now, step two.   As  in many  other management questions, the size  of  the
 market potential  depends  not  only on number of people but  also,  and more
 importantly, on the volume of their  purchases; that is, in this study,  on
 the volume of used oil  returned  to  the environment.   For Instance,  the 24
 respondents  who may have the highest probability to return their used oil
 may account for only a tiny fraction of the oil consumed annually.  Table
 26 provides  the required information:
                                     40

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                                TABLE 26

       Annual  Oil  Consumption (In Quarts)  By Activity and  Trouble
            In Disposal and Willingness to Return Used 011
                                   Trouble
Willingness

Def. Would

Prob. Would

Might

Prob. Would Not
Def. Would Not
      Some
Disposal Activity
TflghTow
              482

              278

              132
639

332

  0
                   974
                             None
                       Disposal  Activity
                       TTTgF    "*"    Cow
1399

 918

 394
1502

1698

 772
Total Volume
of Oil

  4022

  3226

  1298
                                                 1776
                                              10,322
     Table 26 indicates that those who experience no trouble dispose of
jnore oil than those who experience some trouble.  Similarly, more oil is
disposed of by those who engage 1n little disposal activity than by those
who exert much energy.

     It can now be asked:  How much used oil will be returned to central
collection facilities?  The complexity of the Information in Table 26
calls for a cautious answer.

     First, if the respondent's expressed willingness were to be "trusted",
one would predict that 4,022 quarts,, plus some percentage of 3,226 quarts,
would be  returned.

     Second, if the willingness of only those respondents who experience
some trouble and currently dispose of oil by high activity methods were to
be trusted, then one would predict that 639 quarts, plus some percentage
of 332 quarts, woMld   be  returned.

     It should be clear that other estimates are also legitimate on  the
basis of  the results  in Table 26.  As suggested earlier, one way
to narrow the range of possible estimates is to compute first the prob-
ability of returning used oil for each of the relevant cells in the  table,
and  then  employ regression methods.
      In this  study,  strong evidence has  been found  to  show  that  "returning

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used oil" is a complex domain.  Further analyses are necessary 1f policy
decisions are to be based on the prediction of how much oil 1s likely to
be returned.

     The remaining part of this report adds further evidence supporting
this call for caution in interpreting the data presented so far.

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           8.0  ARE THERE OTHER FACTORS AFFECTING WILLINGNESS

                           TO RETURN USED OIL?
8-1  What is a "Reasonable" Deposit for a Resealable Container?


     The Interviewees were presented with a hypothetical question:  "If
there were a deposit required for these resealable containers, what do
you feel would be the minimum deposit charge that would make you return the
container?"

     Recall that the respondents' willingness to return oil explicitly
referred to oil 1n resealable containers.  Therefore, the Interviewees'
estimate of the "minimum" deposit acceptable to them will be Interpreted
as another indicator of their willingness to return used oil.

     Twenty-one people gave no amount, and the others gave the estimates
recorded in Table 27:
                               TABLE 27

      Hypothetical Deposit Which Would Induce Oil Return (In Cents)
 Deposit                       Abs.  Freq,                    Rel. Freq.,%

 1-5                             138                            27
 6-10                             136                            26
 11-20                            52                            10
 21-30                            82                            16
 31-50                            58                            11
 51-97                             8                             1
 98 or more                       45                           	9_
                                 519                           100

 Mean  =24.5
                                     43

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     The amounts given are high when taken as a percentage of the cost
of one can of oil.  In a more comprehensive survey, however, one could ex-
plore whether consumers can appreciate that one deposit, 1n the long run,
applies to many oil changes.  Note also that 1n this study the respondents
may have answered the question thinking only 1n terms of one can of oil;
if forced to think about the number of quarts used per change (and therefore
the total amount required as a deposit), they might lower their estimates.

     The responses in Table 27 have been examined by relating them with
the interviewees' annual oil purchases and with their Incomes.  No corre-
lations were found.  For instance, those who buy relatively large volumes
of oil are no more likely to mention a low deposit than those who buy re-
latively small volumes of oil.  Similarly, those In higher income groups
are no more likely to mention a high deposit than those 1n lower Income
groups.
8.2   Does  "Ecology-Consciousness" Affect Willingness to Return Used 011?


      The data  collected may give further Insights Into the respondents'
probability  of returning used oil.  Willingness to return used oil  might be
 influenced by one's "ecology-consciousness".   Although no direct measure of
 this was  made 1n the survey,  one  may assume a latent connection  between a
 respondent's predisposition toward ecologically-sound waste  disposal and the
 means by  which he currently disposes of his own oil.


      To test this,  an ordinal scale measuring the extent  to which various
means of  oil disposal  are  ecologically  acceptable was constructed.  The
criterion  for ecological acceptability  was  the probability of  the oil
entering  San Francisco Bay.   Taking one's oil to a  service station receives
the highest score because  it  minimizes  the  probability of the  oil entering
the Bay.   While the scale  1s  specific to the  San Francisco Bay area, simi-
 lar scales could be constructed for any given area.

      The  scale's categories are as follows:

 BEST -- selling or taking  oil  to  service station
GOOD -- dumping in backyard or  empty lot
 FAIR -- dumping in garbage can  and taking  to public dump
 POOR -- flushing down toilet or dumping in  storm sewer

      The  relationship between this scale (an ecological  evaluation of  means
 of disposal) and willingness to return  used oil can now  be  examined.   As
 Table 28  indicates, there is some association.
                                     44

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                                TABLE 28

       Ecological Rating of Respondent's Means of 011 Disposal and
                His Willingness to Return Used 011*
                            Ecological  Rating
Willingness
Def. Would

Prob. Would

Might

Prob. Would Not
Def. Would Not

BEST
31
50*
20
32.3$
5
8.1%

6
9.7*
GOOD
49
31.4*
44
28.2*
25
16.0*

38
24.4*
FAIR.
45
47.4*
31
32.6*
9
9.5*

10
10.5*
POOR
16
36.6*
16
36.6*
8
17.8*

5
11.1*
                  62          156           95            45

*  The observed relationship is statistically significant at the 0.025 level.
8.3  Does "Conservation Awareness" Account for Willingness to Return
     Used Oil?


      Perhaps  willingness  to return used oil  reflects  one's  awareness
 of problems of  conservation more  than one's  awareness of  problems of
 pollution  (e.g..  as  indicated  by  one's means of disposal, and  the eco-
 logical  rating  of it in Table  28).   In other words, "Ecology Consciousness"
 could have both a pollution component and a  conservation  component, with
 only the latter being relevant 1n explaining differences  In willingness
 to return  used  oil.

      The respondents were asked two  questions related to  awareness  of Is-
 sues concerning conservation  of resources.  The  questions focused on  the
 respondents'  awareness of the availability of recycled oil, and whether
 they had ever purchased recycled oil.

      Thirty-two percent of the respondents (191) said that they knew that
 recycled oil  was available on the market.  However,  only 21.6* of these
                                     45

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respondents (41), or about 7% of the entire sample, said that they had ever
bought recycled oil.  Forty-seven respondents, or 7.9/K of the total  sample,
thought that recycled oil was not available on the market.  The majority of
the respondents, 60.1%, did not know whether or not recycled oil was cur-
rently available on the market.  In sum, a minority of respondents knew of
recycled oil availability, and only a minority of these respondents ever pur-
chased it.

     If buying recycled oil Indicates a concern for the recycling of non-
renewable natural resources, 1t might serve as an Indicator of a respon-
dent's willingness to return his waste oil.  Table 29 shows the relation-
ship between these two variables:
                                TABLE 29

         Buying Recycled 011 and Willingness to Return Used 011*
                               Buys Recycled 011
Willingness  to Return
Used  Oil

Def.  Would


Prob. Would


Might
 Prob.  Would Not
 Def.  Would Not
Yes


8
 32%

8
 32*

3
 12%
No


40
  t

33
42.1%
                                 24X
                               25
  34.7%
                                                  9.5X
               13
                 13.7%

               95
 Number of respondents « 120

 *  The observed relationship 1s statistically significant at the 0.30 level.


      The number of respondents is too small to make strong statements but,
 if anything, those who buy recycled oil are less willing to return their
 used oil!  Thus, no evidence was obtained of a positive association between
 conservation-consciousness and willingness to return waste oil to a col
 lection facility.
                                     46

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               9.0  A PROBE INTO CONSERVATION OF RESOURCES
     Although the survey focused on used oil as a potential  pollutant,
a few issues concerning conservation of resources with reference to re-
cycled oil were also explored.
9.1  Government Certification
     The Interviewees were asked a question directly concerning consumer
acceptance of recycled o11°, that 1s:
                If the government certified that the recycled oil
                you were buying was as good as the brand new oil
                you usually buy, how would that affect your wil-
                lingness to use recycled oil?
     The responses reveal a rather high hypothetical public willingness
to try government certified recycled oil:
                                    47

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                                 TABLE 30
     Respondent Willingness to Use Government Certified Recycled  Oil
Willingness                          Abs.  Freq.                 Rel.  Freq.
Definitely Would Buy                    156                     26.3%
Probably Would Buy                      184                     31.0
Might or Might Not Buy                  112                     18.9
Probably Would Not Buy                   62                     10.5
Definitely Would Not Buy                 79                     13.3
                                        593                    100.0%
     Less than a quarter of the sample are negatively predisposed toward
government certified recycled oil.  One can most likely assume that govern-
ment certification is a crucial factor 1n getting consumers to try a re-
cycled oil, especially in light of the high concern for quality manifested
by  the majority of the respondents (see Section 4.1).
9.2 A Probe  Into Semantics
      There  was  a  great  deal of  agreement  among  the  interviewees on which
 "name"  for  recycled  oil  implies the  highest  quality.   Respondents were
 asked which of  the following  terms they would expect  to  imply  oil of  the
 highest quality:
                                     48

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                                TABLE 31
      Respondent Impression of Highest Quality Oil  for Different Terms
Name                            Abs. Freq.              Rel.  Freq.
Re-refined                         294                    51.5%
Reprocessed                        114                    20.0
Recycled                            75                    13.1
Reclaimed                           22                     3.9
Recovered                           21                     3.7
All mean the same                   45                     7.9
                                    571                   100.0%
The label "re-refined" has the greatest appeal probably because it
implies that the entire process of crude oil refining is repeated from the
beginning.
                                    49

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                 ACKNOWLEDGMENT
Teknekron, Inc. and The Institute of Public Adminis-
tration wishes to acknowledge the Resource Recovery
Division, Office of Solid Waste Management Programs,
U.S. Environmental Protection Agency, for support of
this study.  In particular we are grateful to Dr.
John H. Skinner, Acting Deputy Director, Resource
Recovery Division and to the Project Officers, Messrs.
Thomas D. Clark and Laurence B. McEwen for their
guidance and assistance 1n the performance of this
research.
                                Preceding page blank
                         51

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         APPENDIX  A
CONSUMER SURVEY QUESTIONNAIRE
               53       Preceding page blank

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                                                           MCCS 386
                                                           August  1973
                          WEST COAST CONMIITY SURVTfS
                               2268 Fulton Strett
                          Berkeley, California 94704


                                                    S«r1al Hoi.

Store Name:	    	   ...

Street:

City:	
Date of Interview:
Time Began:	*'"'
                                     p.m.


Hello, I'm                         of West Coast Conwnlty Sun*ys and !'• working
on a research study which Involves talking to pen who buy wtor oil and I'd like  to
ask you a few questions.
                                          55        Preceding page  blank

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1. A. What brand of motor oil (are you buying)
(did yog just buy)? CIRCLE ALL THAT
APPLY. USE ONE COLUIH FOR EACH, ASKING
B - H FOR ONE, BEFORE ASKING ABOUT NEXT.


IF 2 OR MORE BRANDS AND/OR
GRAOKS. USE EXTRA COLUMN TO
PERMIT SINGLE CODING
8. What grade 1s that? STAMPED ON LID. IF
MORE THAN ONE RATING IS GIVEN, CIRCLE
EACH. IGNORE STAMPED LETTERS OR
NUMBERS NOT LISTED IN COLUMN.


C. How much of this (BRAND & GRADE) (are you
buy1ng)(d1d you buy)?

D. And what car or other vehicle are you
nntnn *n II*A frh4e 'fnDANH ft COAflT) fnv» __
going 10 use inis IOKWU & biwut/ ror ••
can you give me the make and year? IF NOT
FOB AUTO OP i/iTnurvn r THANK AND TFRMIN.
ATE. IF 2 OR MORE VEHICLES, USE EXTRA
COLUMNS.
E. On the average how many miles per year
would you say you and your family drive
this (VEHICLE)?
F. (Are you buying) (Did you buy) the (BRAND
& GRADE) to add to your (VEHICLE), to
change the oil In your (VEHICLE), or both?
V IF ADD DULY: Do you usually
change the oil 1n your (VEHICLE)
. yourself? :
H. IF EVER CHANGES OIL:
a. On the average how often do you
change the oil In your (VEHICLE)
-- about how many thousand miles?
b. How much oil does that usually
take?
c. Do you ever change your own oil
filter?
*
IF YES: Every how many thousand
•riles?
56
Pennjoll. . . . .1 l
Standard. ... .2
Shell 	 3
Exxon 	 4
Other (SPECIFY:
5


SA or ML 	 1
SB or MM 	 2
SC or MS 	 3
SO or MS 1968 . .4
SE 	 5
No rating ... .6
quarts

Make
19

miles
per year
Add Only . . . . T
Change Only. . . 2
Add ;. 'Change . . 3
Yes (ASK H). . . 1
No (SKIP TO Q 2) 2

Changes every
miles
qts
Y« ...... 1*
He (SKIP TO
02) 	 2
Changes every
miles

Penniol 1 1
Standard. . . 2
Shell .... 3
Exxon 	 4
Other (SPECIFY:
5


SA or ML .1
Mor MM 2
SC or MS 3
SD or MS 1968 .4
SE 	 5
No rating . . .6
quarts

Make
19

wiles
per year
Add Only. . . . 1*
Change Only . . 2
Add & Change. . 3
Yes (ASK H) . . 1
No (SKIP TO Q 2)2

Changes every
miles
qts
Y« 	 T
No (SKIP TO
02} 	 2
Changes every
•lies


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«. A. ASK ALL:
      How do you decide which oil to buy •• do you go by price, brand naaa), or what?
      CODE ALL THAT APPLY  IN FIRST COLUM1 B&OW.

   B. IF MORE THAU ONE FACTOR HENTIOHED:  And now I'd like yw to rank then factors
      in  tit order of importance  to you 1f» deciding which oil to  toy.
      (Which ont 1t the wit Important?)  (Second?)
                                                      JL            JL
                   Lowest  price	1                •
                   Quality
                     Brand name	2           _______
                     Viscosity  (e.g.  10-30)	3           	
                     SAE rating	4           	
                     Labeling	5           	
                   Other (SPECIFY:	  6           	
 3-  IF ADDS ONLY. SKIP TO Q 5
    A. IF EVER  CHANGES OIL IN 0 1:  Do you change the oil yourself, take 1t to a
       service  station and have then do It, or what?
                                           Do 1t myself	1*
                                           Have service station do It	2
                                           Have dealer do  1t	 3
                                           Other (SPECIFY:	4*
       *1F DO IT MYSELF OR DONE BY FRIEND/RELATIVE:	
       B. Mtere do (you)(he/she/they) do It - 1n the garage at (your)(their) house,
          on the street.  In  a drive-way, at a service station,  or where?
                                           Hone garage 	 1
                                           On street or In driveway	2
                                           Service station	3
                                           Car dealer	4
                                           Other (SPECIFY:	S
       C. Nhy do you (change)(change and add) your own oil — Is It because  It costs
          less, because automobiles are your hobby, or what?  CODE ALL  THAT  APPLY.
          IF MORE THAN ONE MENTIONED:  Of the  reasons you mentioned, which Mould you
          say Is the mt ImportanTreesonT  CHECK APPROPRIATE BOX.
                                                                              MOST
                                                                           IMPORTANT
                                            Cost	1        [  ]
                                            Convenience	2        [  ]
                                            Auto hobby	3        [  ]
                                            Equal to or  better than
                                              oil at service station
                                              or car dealer 	 4
                                            Better  for car	8
                                            Other (SPECIFY:	
                                  sy     	.

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4.  IF EVtH CHANGES OIL AVIAY FROM SERVICE STAV10H OR DEAIES:
    A.  How do you eventually dispose of the used oil —  do you sail  1t, takt 1t to
        a service station, dump 1t In a sewer, flush It down  the toilet,-put 1t In
        your garbage can, take It to the dinp, or whatT  (COOf ALL THAT APPLY)
                                          Sell	1
                                          Take to service station	2
                                          Storm sewer	  . 3
                                          Toilet 	 4
                                          Dump 1n garbage can	  . 5
                                          Bum In Incinerator	6
                                          Dump In backyard 	 7
                                          Dump In empty lot	8
                                          Take to public  dump.  ....  	 9
                                          Other (SPECIFY:	_JO
    B.  How much trouble do you have getting rid of the used  oil — 1s  It • lot of
        trouble, quite a bit of trouble, a little trouble, or no trouble  at all?
                                          A lot of trouble 	 1
                                          Quite a bit of trouble	2
                                          A Uttle trouble	 3
                                          No trouble at all	4
 5.  ASK ALL;  It's been  suggested that there 1s technology to take tne used oil and
    reprocess and purify 1t.
    A.  I'd like you to  look at the five terms on this card.   HAND CARD 5A.  Which
        would you expect to be the highest quality oil?
                                          Recycled  	  1
                                          Re-refined	2
                                          Reprocessed	3
                                          Reclaimed	4
                                          Recovered	5
                                          All mean  the same	6
    B.  Do you  happen  to know whether any of these  1s currently available on the
        market  or not?
                                          Yes,  available 	 1
                                          No, not available	2
                                          DK	3
            *1F YES:   Do you buy any of them?
                                          Yes	}
                                           No	
                                           58

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  C. If the government, certified that the  recycled oil you were buying was as good
     as the brand new oil you usually buy, how would  that affect your willingness to
     having recycled oil.  HAND CARD SC I  0.  HMch of these corns clomt to describ-
     ing whether you would or would not buy recycled  oil If 1t were government certi-
     fied?
                                          A.  Definitely would buy	1
                                          B.  Probably would buy	2
                                          C.  Might or might not buy	3
                                          D.  Probably would not buy	4
                                          E.  Definitely would not buy.  ..... 5
  0. If all oil — whether 1t was brand new oil  or reprocessed oil — were sold  1n
     resealable containers, how likely would you be  to  return your used  oil  to a
     collection facility?  Please choose one of the  categories on the card.
                                          A. Definitely would  return  	 1
                                          B. Probably would return	2
                                          C.  Might or might not  return	3
                                          D.  Probably would not  return	4
                                          E.  Definitely would not  return .  .  .  . 5
   E.  If  there were  a  deposit  required  for these resealable containers, what do you
      feel  would be  the minimum mount  for a deposit charge that would make you return
      the container?
6. Now a couple of background questions  about you  and  I'll be all through »
      A. Do you live 1n a house, an apartment, or  what?
                                           House	1
                                           Apartment 	 2
                                           Other (SPECIFY:	3
      B. Do you own or rent?
                                           Own	1
                                           Rent	2
      C. Hay  I have your age on your last birthday?          	years of age
      D. And  what was  the highest grade of school you completed?
          Less  than 6th grade  678
*— W School —*
 9   10   11   12
t— College	)
 13   14   IS  .  16
17*
                                             59

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E.  Please tell  me which of these corns closest to what you do.  I just need the
    letter.  HAND CARD 6E.   (IF  CURRENTLY UNEMPLOYED, CHECK APPROPRIATE BOX Alt)
    ASK:  Mhat 1s your usual occupation?)   (IF RETIRED, CHECK AfPWPRlATE NX
    AND ASK:  What was your occupation before you retired?)
       ( ] UNEMPLOYED                A.  Small businessman 	 02
                                     B.  Clerk/typist/secretary	04
       [ ] RETIRED
                                     C.  Unskilled or Mnual	 06
                                     D.  Student	08
                                     E.  Professional, technical 	 01
                                     F.  Salesman	03
                                     G.  Skilled crafts	 . 05
                                     H.  Farmer	07
                                     I.  Armed Forces member	09
                                     J.  Other (SPECIFY:	
                                         	10
F.  And would you pick the letter on this card that  Indicates which Income group
    you and your family art In.   Please count  all sources of Income for you and
    the other members of your family living with you before taxes.  HMD CAW ff.
                                     A.  Under $3,000.	1
                                      B.    $3.000  -   $4,999  .	2
                                      C.    $5,000  -   $7,999  	  3
                                      D.   $8.000  -   $9,999	4
                                      E.  $10.000  -  $14,999  	  5
                                      F.  $15,000  -  $19,999	6
                                      6.  $20,000  and over	7
 6.   If you're Interested,  we can make the report of our findings available for
    you to look at.   And also my supervisor will  be checking a small  percentage
    of my work  at random.   In case this Interview 1s selected or If you'd like
     to see the  results of  this  project, may I have your name, addresi and phone
     number?
     NAME:      	   PHONE:.
     ADDRESS I CITYs	
 THANK R AND COMPLETE LAST PA8E
                                      60

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Time tnded:
BEST GUESS OF RACE PROM OBSERVATION:      WMtt ................. 1
                                         Black ................. 2
                                         Oriental ................ 3
                                         Ntxlctn .............  ... 4
                                         Othtf (SPECIFY: _ S

INTERVIEWER'S SIGNATURE: __
                                            61

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                                APPENDIX B
                                THE SAMPLE
     The respondents,  interviewed in eleven retail  stores  either  in or adja-
cent to the city of Oakland, were males fifteen years old  and above.   The  age
distribution of respondents Is generally representative of that of Oakland,
although young people are slightly overrepresented  and old people are slightly
underrepresented.


     The sample is not representative of Oakland with respect to  ethnicity.
Forty-five percent of the respondents were blacks,  whereas only 34 percent
of Oakland's population is comprised of blacks.  Similarly, 42% of the sam-
ple were whites, whereas 59% of Oakland is white.  The sample also included
29 orientals and 40 chicanes.  The roughly equivalent number of non-whites
and whites offers the advantage of allowing for statistically significant
comparisons of the two groups.  Although this possibility  was not pursued
in the analysis, it could prove valuable in future studies.


     The sample contains a high number of well-educated respondents when com-
pared to the popualtion of Oakland.  While 29% of Oakland's male  citizens
have attended or graduated from college, approximately half of the respondents
have this distinction.  This is probably related to the fact that the sample
contains a relatively higher number of young people, but it may also reflect
higher average educational attainment of those people who change  their own
oil.

     The sample  is roughly representative of Oakland in terms of  annual income
although lower income categories are slightly underrepresented.  For example,
while 21% of Oakland's population earns less than $5000 annually, only 15.3%
of the sample fell into this category.

     Finally, the sample  is reasonably representative of those whose family
owns their housing unit versus those whose families rent.   The sample  is
slightly biased  toward those whose families own  their dwelling units -- 50.2%
of the sample own their own homes while only 42.4% of Oakland families own
their own homes.
                                     63
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