Environmental Protection Agency
Fuel Economy Label
Expert Panel Report
&EPA
United States
Environmental Protection
Agency
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Environmental Protection Agency
Fuel Economy Label
Expert Panel Report
Office of Transportation and Air Quality
U.S. Environmental Protection Agency
and
National Highway Traffic Safety Administration
United States Department of Transportation
Prepared for EPA by
PRR, Inc.
EPA Contract No. GS-23F-0364P
Task Order 0001
&EPA
United States
Environmental Protection
Agency
€1
%\ft7
EPA-420-R-10-908
August 2010
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Topics
Introduction 3
Background 3
Methodology 5
Key Findings 9
Strategic Insights 9
Messaging 12
Outreach Strategies 13
Label Design and Content 15
Appendices 19
Appendix A: Participants & Attendees 19
Appendix B: Agenda 21
Appendix C: Label Design Concepts Shared with Panel 23
Appendix D: Examples of Technology Impacts on Label Design 24
Appendix £.- PowerPoint Information Used During the Meeting. 25
Appendix F-. Advance Materials Sent to Participants 41
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ntroduction
Background
In 2006, The Environmental Protection Agency (EPA) updated
how the city and highway fuel economy values are calculated to
better reflect typical real-world driving patterns and provide more
realistic fuel economy estimates. In addition, EPA redesigned the
fuel economy label to make it more informative for consumers.
The redesigned label more prominently featured annual fuel cost
information, provided contemporary and easy-to-use graphics for
comparing the fuel economy of different vehicles, used clearer text,
and included a website reference to www.fueleconomy.gov, which
provided additional information.
EPA and the National Highway Traffic Safety Administration
(NHTSA) are now initiating a new rulemaking to ensure that
American consumers continue to have the most accurate,
meaningful and useful information, as well as an understanding of
how the labeled vehicle's emissions impacts the environment. With
the introduction of advanced technology vehicles on the market,
the agencies must provide metrics that are relevant and useful for
vehicles such as Electric Vehicles, Extended Range Electric Vehicles
and Plug-in Hybrid Electric Vehicles.
To help inform the creation of the new label, EPA engaged PRR,
Inc. to work with them in the design and implementation of several
information gathering protocols including:
Literature review
Focus groups (in three phases, including pre-group online
surveys)
Expert panel
Online survey of new vehicle buyers and prospective buyers
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Each of the above methodologies has its strengths and weaknesses.
It is for this reason that a combination of information gathering
tools was used. This report provides an overview of the Expert
Panel discussion which built on the information gathered from the
literature review and the focus groups. The panel was composed of
hand-picked, third party thought leaders. The leaders were selected
because of their unique history of creating dramatic shifts in social
change and influencing consumers' product preferences over short
periods of time.
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Methodology
Experts panels are groups of exceptional individuals brought
together to explore a given question. They are intentionally
independent from special interest influence and have no direct
authority. Their expertise is used to provide recommendations to
those with the authority to act. The intent behind selecting and
convening an expert panel is to assemble the "best and brightest"
individuals who can provide the objective viewpoint of those
outside the usual process.
Many federal agencies have a history of using expert panels to
support a variety of initiatives. Some examples include:
EPA: To monitor the situation for workers and residents
impacted by the collapse of the World Trade Center
NHTSA: To study the issue of trunk entrapments
Federal Highway Administration (FHWA):
To review previous research results for inclusion in the
Interactive Highway Safety Design Model (IHSDM)
U.S. Government Accountability Office (GAO):
To discuss how to conceptualize, measure, improve, and
use information about the benefits and costs of highway
and transit investments
Department of Health and Human Services (HHS):
To evaluate H1N1 PSA submissions
Centers for Disease Control and Prevention (CDC):
To address concerns about barriers for older adults to
understand and use health information
Federal Emergency Management Agency (FEMA):
To establish a methodology, consistent with industry
practices, for estimating the cost of large projects
Department of Energy (DOE):
To forecast future demand for medical isotopes
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PRR recommended the strategy of using an expert panel following
the success of an expert panel they convened on behalf of the
Centers for Disease Control and Prevention (CDC). CDC wanted
to identify best practices for delivering health messages to
adolescents. Following one of the most extensive literature searches
on the subject, the expert panel was assembled to help validate the
findings while also bringing a non-academic and, in some cases, a
commercial approach to changing behavior.
In order to recruit individuals who could provide a diverse
perspective to EPA and NHTSA as they redesigned the fuel
economy label, desirable sectors including products, campaigns,
organizations, and services were identified. A prospect list of
organizations within each sector was generated using the criteria
that the product/service or educational campaign needed to:
Impact a significant percentage of the population
Demonstrate staying power
Bring about change quickly
Individuals who were key to the success of these initiatives were
then identified. The decision was made to omit individuals with
direct experience with the auto industry. The intent was to explore
best practices from other industries and understand how they
might apply to this challenge. This list was then prioritized for
recruitment.
Rather than recruit individuals based on their current employment
position, it was critical to recruit those individuals who were in roles
that were critical to the success of these respective efforts at the
time they were being planned and implemented. PRR did extensive
research to identify and then corroborate these individuals. Once the
individuals were identified, they were located without regard to any
current association with the activity that had been used to identify
them. Individuals were contacted by using several methods including
third party advocates, phone calls, e-mail and social media.
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The panel was limited to no more than 10 participants in order to
ensure full participation. Nine expert panelists were recruited to
participate in the six hour discussion. The group was convened on
Wednesday, June 9, 2010, at EPA headquarters in Washington, DC.
In advance of the discussion, participants were provided a draft
agenda, a brief overview of the project, and initial research and
focus group findings. Panelists were asked to come prepared to
discuss how they would recommend that the EPA increase the
value of, and preference for, more efficient vehicles.
Following opening comments from Margo Oge, Director of EPA's
Office of Transportation and Air Quality, the group was reminded
of the two primary goals for the day:
1. Identify opportunities to increase the priority of energy
efficiency in the vehicle purchase process
2. Provide feedback on working fuel economy label designs
Participants received a very brief project background that included
statistics related to petroleum consumption, transportation's impact
on air quality, and top-level findings from the previous research
activities.
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Key Findings
Strategic Insights
The group was asked to provide general observations and thoughts
that could help inform and guide the development of a national
outreach strategy and the next steps in the label design process.
Paraphrased comments offered by panel members are also provided.
The group offered the following eleven key observations and suggestions:
1. Keep it simple.
• We all have complicated stuff going on in our heads
and we yearn for simplicity.
• We need someone to make it easy for us. No matter
how smart we are.
• We think of simple in this way: Fewer, bigger, better.
Do fewer things better.
2. Consumers don't act on details.
• Consumers don't act on details. No matter what our
background, we act on simple impulsive things vs. long
term analysis.
3. Purchasing a car is an emotional decision-appeal to emotions.
• Purchasing a car is an emotional decision.
• People want a relationship with their car.
• Young people want to change the world and feel
empowered to do so.
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4. Focus on the low-hanging fruit first.
• It's tempting to develop something for the 'hardest
converts.' I think you should hit up the low hanging
fruit - the already engaged.
• Focus on the low-hanging fruit, those who are mostly
there. Build on that to make them your ambassadors.
People are influenced by peer pressure.
5. It's about owning the change - be a change leader.
• When MTV moved away from speaking directly to
terror and spoke more about action and the benefits of
what change can actually do - we saw a shift.
• People want to change. It's about owning the change -
be a change leader.
6. You can have a great product that will fail if it's not sexy.
• Apple can motivate people to spend more money on a
product.
• You could have a product that is very strong and
amazing, but if it is not sexy it will fail.
7. Target younger individuals.
• Focus on younger people and build on that base.
• Young people are purchasers and will influence older
family members.
8. Campaigns must have a human face.
• You need a real human as the face of the campaign.
• Apple uses Steve jobs, Craigslist has Craig. It needs to
be people we can relate to, don't use people like Ed
Eegley, Jr.
9. If your product is not good enough to inspire people to
work for you then it will never work.
• With the Dove campaign...we let people come to their
own conclusion.
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• People are more influenced by peer pressure.
• You can dramatize their (car buyers) impacts. They can
be the champions.
10. Be sensitive to your audience.
• People will not invest a lot of time reading.
• Remember the label is seen through a potential tinted
window while standing several feet from the window.
• Many individuals do not speak English or have literacy
challenges.
11. Use the opportunities of relevant news events to demonstrate
how personal choices can contribute to larger impacts (i.e.,
gulf oil disaster).
• When I was at MTV, we were trying to do an
environmental campaign. Hurricane Katrina occurred
and young people took this as the result from climate
change. When MTV moved from speaking to terror/
climate/horrific change and showed benefits of what
individual actions can actual do - we saw a shift.
• At MTV the motto was 'Never waste a good crisis!
Oil is a direct link to cars and driving. There is a great
opportunity to use this to shift thinking.
Throughout the discussion, the Expert Panel encouraged the agencies
to find ways to "make it personal," "make it emotional," "create
opportunities for ongoing dialogue and engagement." Panelists
indicated that images and words must be compelling to the intended
audience and that the way to achieve this is through personal,
emotional, and sustained engagement. A specific suggestion was to
encourage the auto industry to further advance vehicle technology by
providing the driver real-time/interactive information measuring their
consumption, vehicle range, and efficiency. It was suggested that this
information be expanded (into a game-like interaction) to encourage
drivers to benchmark or track their own performance(s) and compare
against their past driving, set personal goals, and even compete against
other drivers. This approach would provide ongoing opportunities to
engage drivers, remain relevant, and motivate them to incorporate
better driving habits.
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Messaging
Participants were asked to respond to the question: "What messages
will overcome current barriers/shift priorities and increase perceived
value and preference for fuel efficiency?"
The responses remained very consistent with the strategic guidance
provided earlier and the Expert Panel reached a general consensus.
1. Address how the consumer will benefit from making this
decision, or in other words "what's in it for me?" The
message should speak directly to how making this decision
could improve their lives.
2. Talk about savings (over five years). Be explicit. We talk
about the cost of buying and operating vehicles. Help
individuals understand what they will save by buying a
more efficient vehicle.
3. Do not use technical jargon. Using words that reflect
consumer-friendly vernacular can be less intimidating.
4. Use relevant events (i.e., gulf oil disaster), include strong
images to help individuals recognize the potential impacts
of their decisions. Use the events to leverage the message.
5. Explain how they can make things better. If the difference
is intangible, it's too hard for the consumer to sway from
routine. Provide fewer clear messages/images to empower
individuals to feel that their choices will in fact make a
difference.
6. Make it relevant to them. Some people see hybrids as elite
status symbols of a "group" they are not interested in
belonging to. They think "Ed Begley Jr." when they think
of a hybrid.
Panelists offered suggestions of specific types of messages that
could be used including:
Go Green. Get Green.
Do it for your kids.
It's Simple - We simply have to do this (why we need to do
this). It's simple to do.
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A portion of the panelists also recommended engaging audiences
through the use of shame. This segment of the panelists believed
shame to be a strong motivator in evoking a behavior shift. Such
methods would include showing emotional images (i.e., BP oil spill
results in birds covered in oil). Messages that reflected a shame
approach included:
Don't fail.
Don't be a jerk, save the environment and save money at
the same time.
Outreach Strategies
After receiving the above guidance regarding overall strategic
approaches and recommended types of messaging, the group was
asked to provide thoughts on what types of outreach strategies
would best deliver these messages.
Without exception, the panelists endorsed the following suggested
tactical approaches:
1. Utilize "crowdsourcing." Crowdsourcing is the act of
outsourcing to a large group of people or community
through an open call. Tapping into the collective intelligence
of the public will innately provide a deeper insight into
what consumers really want.
• Each participant shared their experience(s) with the
success of this approach. From Dove launching the
most successful viral campaign on "real beauty" and
Zappos having demonstrated sales in excess of $1
billion with no marketing department, to the Verb
campaign that had young people inspiring each
other to exercise. Pandora has 50 million users while
spending approximately $350,000 on marketing when
the site was launched. As one panelist commented,
"There are tens of thousands of people who will do
communication for you. Your job is to harness them."
• Many of the panelists volunteered to crowdsource
initial drafts and ideas within their channels.
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2. Launch an "apps" competition. Apps is an abbreviation
for applications used by smartphones and can directly link
users to specific programs or websites.
• Without knowledge that the agencies have
already planned to introduce QR codes
on the Fuel Economy label, the group
suggested that these codes be added.
• They further suggested that the power of
entrepreneurship and social marketing be unleashed
by introducing an "apps" competition to encourage
the development of a usable consumer tool, while also
generating increased awareness.
3. Use EPA's limited budget to buy an easy to remember URL.
This is crucial.
• Participants suggested that the EPA acquire a URL
such as "simple.com" or "itsimple.com." They
suggested that not only would such a URL be easy to
remember, it would also provide a consistent message
platform for messages such as; "Getting information
is simple," "Doing the right thing is simple," "Picking
the most efficient vehicle is simple." They felt that the
combination of the "simple" URL, the utilization of the
QR code, and crowdsourcing (definition noted above)
outreach would effectively drive people to the website.
4. Bring together the top 10 foundations and ask them to do
it/fund it for you.
• Recognizing that the agencies have an exceptionally
small budget for this effort (made even more dramatic
when compared to the budgets that the private sector
has to promote their products) provoked the panel
to suggest contacting foundations with compatible
missions and asking them to join together to help fund
an outreach effort.
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5. Have a checklist, not a brochure, for dealers (10 musts you
need to communicate).
• When panelists received a copy of the current Fuel
Economy Guide they expressed concerns that the
public probably didn't know it was available, didn't
access it if they did know it was available, and would
not respond well to it in the current format. Instead,
they recommended that dealers distribute a one-page
checklist, which would allow the agencies to deliver
the top 10 points that could not (and should not) be
included on the label. It also would ensure that even
if individuals did not utilize the website, they would
receive this information. It was also suggested that, if
possible, distribution of this document be mandatory.
6. Utilize us (panelists) to put it on our blogs and get public
input, then leverage that for the release.
• Panelists repeatedly offered to utilize their networks
to help the agencies either receive public comment or
to help launch any of the initiatives discussed by them.
They also felt that providing the public an opportunity
to share their comments would have significant value.
It would provide insight into the acceptability of these
concepts, engage consumers in a meaningful dialogue,
and allow for ongoing dialogue and social networking.
Label Design and Content
A significant amount of time was allocated to discussing the fuel
economy label design. At the time of the Expert Panel meeting, label
designs were going through daily revisions as dictated by market
research results and internal agency reviews. The most current EPA/
NHTSA drafts as seen in Appendix C were presented to the group. To
help understand the current design options and the challenges faced
by new and emerging technologies, the group reviewed several fuel
economy label design options that were guided by the focus group
process. The first demonstrated the three design approaches being
considered for gasoline vehicles. The second graphic contained two
design approaches for Plug-in Hybrid Electric Vehicles (PHEV). This
was done to help illustrate the complexity of information that might
be required and had been requested by focus group participants.
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Comments from the group fell into the following five categories. In
each of these categories the panelists reached a consensus.
1. Create a single metric and give it significant prominence
on the label.
This was the highest priority recommendation provided by the
group. Consensus was strong regarding the recommendation
of using a single, bold alphabet-based "grade" that would
dominate the label with any other legally required information
being provided at the bottom of the label and in such a way as
not to compete with the grade.
The group discussed whether a metric should be developed
to compare all vehicles or vehicles in a particular class.
There was some concern that if one metric is used to cover
all vehicles, a specific class of vehicle might always get a
low grade. When the group was informed that there are
currently four SUVs that made the top 10 fuel economy
list, they felt this concern might not be true. They also said
that many individuals have specific needs that more fuel-
efficient vehicles might not meet (e.g., the need to haul large
quantities of people or goods) and that these individuals
(as demonstrated in the focus groups) would still purchase
the vehicle that matched their needs. The group did feel
that the grading system could still be a motivator, as a
person may look presently or in the future for the vehicle
in their desired class with the best grade.
Another suggestion was to use a single metric like New
York City and Los Angeles restaurant labels. They require
all restaurants to place a label in the window that has an
A, B, or C rating that reflects how they were graded for
kitchen cleanliness. This letter/grade approach will be
intuitive for most consumers.
2. Reactions to current label designs were not favorable.
Comments included:
• These were not 'designed' they were 'negotiated.'
• We reject the presentation of the design. Be clear, we
are not rejecting the information.
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• I would be afraid of this label because it is just not
friendly looking.
• No idea what the two environmental areas on the draft
labels mean and don't care.
It needs to be simple.
• Remember the reality that people will view the labels
in a very short time.
• There is a point where people cannot process that
amount of information.
The group also pointed out that change of this significance
is usually met with criticism - as was true with every Apple
product released, that eventually was held up as the gold
standard for usefulness and innovation.
• If the label does not elicit controversy you have missed
the mark and won't foster social change. Embrace the
controversy this will cause.
4. Demonstrate benefits that are relevant and motivating.
• The current label designs demonstrate costs. It would
be better if they could demonstrate savings which is a
very strong motivator.
5. Provide other information in other ways.
• The consensus was to keep the label as clean and simple
as possible and make other more detailed information
available to individuals through resources such as the
website and dealership materials.
• The group also suggested placing specific, required
information in a less prominent position on the label,
perhaps in the lower half or on the back, using smaller
fonts.
• Secure a URL such as "simple.com" or "Itssimple.com."
Include a QR code (smartphone code).
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• Create a 10-point checklist for dealer distribution.
• Have an "App" contest to create additional opportunities
for individuals to seek and obtain information.
• Create opportunities for individuals to engage with
each other to share experiences.
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Appendices
Appendix A: Participants & Attendees
Advisor, MyArtspace.com
Previously iPod Product Marketing Manager
Senior Communications Marketing Manager, Unilever
Responsible for the Dove Campaign for Real Beauty
Director of Online Marketing, Zappos
Major role in growing company from six employees to one
with 1,300 employees and annual sales over $1.2 billion
Leads the Pandora product organization
Responsible for product management, user
interface design and software development and
network operations
Dr. Cheryl Healton President and Chief Executive Officer, Legacy
Guides the national youth tobacco prevention
counter-marketing campaign, truth®
Erikka Arone
Stacie Bright
Matt Burchard
Tom Conrad
Craig Newmark
Ian Rowe
Fred Seibert
Founder, craigslist.org
Also works with a wide range of groups including
Wikipedia, and the Sunlight Foundation
Bill and Melinda Gates Foundation,
Former Deputy Director and former Senior Vice President
of Strategic Partnerships and Public Affairs for MTV
President & Executive Producer, Frederator Studios
Helped create MTV, Nickelodeon and VH-1. Branded
MTV with the iconic logo and "I Want My MTV" theme
Faye L. Wong, MPH Chief of the Program Services Branch in the
CDC's Division of Cancer Prevention and Control
Manages the National Breast and Cervical Cancer
Early Detection Program.
Former Director of the VERB campaign
Mike Rosen
Managing Principal, PRR
(Facilitator)
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Subject Matter Experts, Observers and Consultants
Lucie Audette Environmental Protection Agency (EPA), Office
of Transportation & Air Quality (OTAQ)
Susan Burke American Association for the Advancement of
Science (AAAS) Science & Technology Policy
Fellow, EPA, OTAQ
David Cohen EPA, Office of Public Affairs
Justin Cohen EPA, OTAQ
Kil-Jae Hong Department of Transportation (DOT), National
Highway Traffic Safety Administration
(NHTSA)
Janet Hopson Oak Ridge National Laboratory, National
Transportation Research Center
Kristin Kenausis EPA, OTAQ
Susan McMeen DOT, NHTSA
Rachel Nathan PRR, Inc.
Denise Walz PRR, Inc.
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Appendix B: Agenda
Agenda
Objectives:
I. Identify opportunities to increase the priority of energy
efficiency in the vehicle purchase process
II. Obtain feedback on working label designs
Schedule
8:45 - 9:00 Coffee and refreshments available
9:00-9:15 Introductions
9:15-9:30 Welcome
9:30 - 9:45 Background and meeting goals
9:45 - 10:15 Research review and feedback
Purpose: Identify any potential concerns raised by
the research. Identify insights and lessons learned
from research and implementation experiences of
participants.
10:15-10:30 Break
10:30-11:15 Messages
Purpose: Identify messages that will help increase
perceived value and preference for fuel efficiency.
11:15-12:00 Outreach strategies
Purpose: Identify outreach strategies to deliver key
messages to vehicle purchasers and influencers.
12:00 - 1:00 Working lunch: Open discussion between
observers (staff from US Environmental
Protection Agency, National Highway Traffic
Safety Administration, Department of Energy)
and panelists
Purpose: Probe specific issues and comments that
were raised during morning facilitated discussion.
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1:00-1:45 Label design feedback
Purpose: Provide specific feedback on working
label designs- including design, wording,
prominence, and positioning.
1:45-2:00 Break
2:00 - 2:55 Open discussion between observers (staff
from US Environmental Protection Agency,
National Highway Traffic Safety Administration,
Department of Energy) and panelists
Purpose: Probe specific issues and comments
that were raised during the afternoon facilitated
discussion.
2:55 - 3:00 Final comments and adjourn
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Appendix C: Label Design Concepts
Shared with Panel
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Appendix D: Examples of Technology
Impacts on Label Design
A4b - PHEV - gallon gas equivalent/100 miles
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Appendix E: PowerPoint Information Used
During The Meeting
Expert Panel Meeting
Welcome:
E i
Ian Rowe
Fred Seibert
Faye
Matt Burchard
Tom Conrad
Introductions
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Welcome
Margo Oge
Director, U.S. Environmental Protection Agency Office
of Transportation and Air Quality
Agenda
Introductions
Welcome
Background and meeting goals
Research review and feedback
Messages
Outreach strategies
Working lunch: Discussion between observers and panelists
Label design feedback
Break
Discussion between observers and panelists
Final comments and adjourn
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Meeting Goals
1. Identify opportunities to increase the
priority of energy efficiency in the
vehicle purchase process
2. Provide feedback on working fuel
economy label designs
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Background
Each year, the United States:
• Produces 10% of the world's petroleum
1 Consumes 26% of the world's production
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Background
Every gallon of gasoline your vehicle
burns puts about 20 pounds of carbon
dioxide into the atmosphere.
Background
Going from 20 MPG to 25 MPG can
prevent 10 tons of carbon dioxide over a
vehicle's lifetime.
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Background
Increasing energy efficiency helps :
• Reduce greenhouse gasses
1 Reduce dependence on imported oil
• Enhance the nation's energy security
• Conserve our fossil resources for future
generations
35"
Background
The mission of EPA is to protect human
health and to safeguard the natural
environment -- air, water and land --
upon which life depends.
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Background
EPA is initiating a new rulemaking and
education campaign to:
• Help consumers understand how each
vehicle impacts the environment.
• Ensure consumers have accurate,
meaningful and useful information.
Background
Information gathering
3 Phases of Focus Groups: COMPLETE
Buying process / Use of current label / Metrics
Building labels for conventional and advanced technology vehicles
Evaluation of full label designs
Literature Review ONGOING
Buying process and influencing factors
Expert Panel: June 9th, 2010
Shifting culture
Improving effectiveness of designs
Internet Survey: June 28th, 2010
• Evaluating labels for understanding and influence
• Messaging
'PRR
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Awareness
Familiarity
Opinion/Imagery
Consideration
1
Research review
Key findings
Most important considerations:
1. Vehicle Type
2. Vehicle Cost
3. Fuel Economy (City and Hwy MPG used
to compare)
4. Then: Safety, Reliability, Size,
Appearance, Comfort, Brand Name,
Performance
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Research review
Key findings
Even if very specific buying criteria is met,
consumers will not purchase a vehicle if it does
not meet their aesthetic standards.
Research review
Key findings
By the time the consumer enters the
dealership to test drive a vehicle s/he is closer
to a final purchasing decision than was true in
the past.
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Research review
Key findings
Information is gathered from multiple sources:
•Manufacturers and dealers
•Automotive magazines
•Websites
•Word of mouth
•Family and friends
Research review
Key findings
The Internet is an important source of
information and used to acquire information
from those with first-hand experience with
specific vehicles through reviews and blogs.
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Research review
Key findings
Online sales increased at an annual growth rate
of 14.6% over the past five years and represent
4% of total car sales in the United States.
Research review
Key findings
Environment is not a deciding factor. However,
many buyers consider hybrids ultimately
rejecting them due to cost or perception that
they are a young technology.
,
Expert Panel Report
35
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2009 U.S. advertising spending
Comoanv
General Motors
Ford
Toyota
Honda
Nissan
Chrysler
Hyundai
Volkswagen
Daimler
Soend
$2,901.1 million
$1,856.0 million
$1,690.4 million
$1,254.6 million
$1,199.3 million
$1,129.6 million
$512.8 million
$407.2 million
$401.3 million
Rank
35"
Research review
Questions
How does this purchasing process compare to
other products?
How should these realities impact a strategy?
36
EPA Fuel Economy Label Redesign
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Messages
What messages will overcome current
barriers/shift priorities and increase
perceived value and preference for fuel
efficiency?
Outreach Strategies
What outreach strategies would best
deliver those messages to vehicle
purchasers and those who influence
them?
,
Expert Panel Report
37
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Background
2006: EPA updated how city and highway
fuel economy values are calculated and
designed a new fuel economy label.
EPA Fuel Economy Estimates
23
HIGHWAY MPG
30
18
25
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Background
City and Hwy MPG most used and
used to compare vehicles within same
class
Annual figures (mileage and cost)
criticized as being inaccurate
38
EPA Fuel Economy Label Redesign
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FMI Economy A GmnhowM Gal
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>tal Comparisons
Dual Fuel Vehicle:
Expert Panel Report
39
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B4 -PHEV
Fuel Economy and
Environmental Comparisons
Dual Fuel Vehicle
Electric + Gas
MPG
• 651.5
$737
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ggg
MPG
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. ' i» " " >" ' ' Blended tleetiu
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How This Vehicle Compares
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Fuel Economy and
Environmental Comparisons
How This Uthicl* Compare* Environment
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40
EPA Fuel Economy Label Redesign
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Appendix F: Advance Materials Sent to
Participants
Dear Colleague,
Thank you for agreeing to participate in the expert panel discussion
for the U.S. Environmental Protection Agency (EPA) Fuel Economy
Label Project. This letter contains important information about the
meeting, travel arrangements, and reimbursement procedures. This
email also contains the following attachments:
• Draft agenda
Research briefing
Homework
1. Please review the attached materials.
2. After reviewing the materials, it would be helpful if you
could come prepared to discuss how you would recommend
that the EPA increase the value of, and preference for, more
efficient vehicles.
Panel Participants include:
Erikka Arone MyArtspace.com, Advisor
Stacie Bright
Matt Burchard
Tom Conrad
Unilever, Senior communications marketing
manager
Zappos, Director of Online Marketing
Pandora, CTO
Dr. Cheryl Healton Legacy, President & Chief Executive Officer
Craig Newmark Craigslist, Founder, Chairman and customer
service rep
Ian Rowe Bill and Melinda Gates Foundation, Former
Deputy Director
Fred Seibert Frederator Studios, President & Executive
Producer
Faye L. Wong, MPH CDC, Chief, Program Services Branch Division
of Cancer Prevention and Control
UNITED STATES
ENVIRONMENTAL
PROTECTION AGENCY
Expert Panel Report
41
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The meeting will be facilitated by Mike Rosen of PRR. There will
also be a small group of observers from the EPA, the National
Highway Traffic Safety Administration and the U.S. Department
of Energy.
Meeting Logistics
The expert panel will take place on Wednesday, June 9, 2010, from
9 am - 3 pm.
Location: EPA Headquarters
Ariel Rios North Building, Rooml332A
1200 Pennsylvania Ave, NW
Washington, DC 20004
* Meeting access - Entrance off of 12th Street, NW, near Federal
Triangle metro stop. Standing at entrance to metro station, Ariel
Rios North will be on your left.
All guests must go through security clearance, so please bring a
valid driver's license or passport for identification purposes. You
will be asked to go through the metal detector. We will have a
project representative in the lobby to assist with the security
process. However, if you encounter any problems accessing the
building, please contact Kristin Kenausis at (202) 306-3061 or
Lucie Audette at (734) 717-8062.
Coffee and refreshments will be available starting at 8:45 am, the
meeting will start at 9 am and end 3 pm. Lunch will be provided.
Travel Arrangements
We are happy to arrange travel for you, or if you prefer, you
may make your own arrangements and then submit receipts for
reimbursement. We do not have a preferred hotel and instead are
working with each person individually to make reservations. There
are a number of hotels near the EPA offices; a list of nearby hotels
is attached.
Reimbursement for Travel Expenses
We will reimburse participants for coach airfare, hotel,
transportation, mileage for use of personally owned vehicles,
and meals and incidental expenses (M&IE) after the workshop.
42 EPA Fuel Economy Label Redesign
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Because we are working with the EPA, we are subject to Federal
reimbursement procedures.
In keeping with Federal reimbursement procedures, we will
reimburse participants for meals and incidental expenses at an
established per diem rate of $71.00 for travel to Washington DC.
Please note that the Federal government uses a travel day system
for M&IE reimbursement, where the maximum rate for M&IE
reimbursement is $35.50 on days that you are traveling to and
from Washington, DC.
Please note that under Federal reimbursement procedures,
it is necessary for participants to keep original receipts for
airfare, hotel/tax, and ground transportation expenses,
regardless of cost. Receipts for meals are not necessary, as
participants will be reimbursed per the Federal reimbursement
procedures discussed above. Please submit receipts to Kimbra
Wellock. A fax or scan or the original receipt is acceptable.
Please do not hesitate to contact me at (206) 462-6351 or
kwellock@prrbiz.com if you have any questions or concerns.
Sincerely,
Kimbra Wellock,
PRR, Inc
Expert Panel Report 43
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EPA - Fuel Economy Label Project
Expert Panel Advance Information
Expert Panel Purpose
1. Identify opportunities to increase the priority of energy efficiency
in the vehicle purchase process
°. Provide feedback on working fuel economy label designs
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EPA Fuel Economy Label Redesign
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Our Reality
14,000,000 new light duty vehicles are purchased in the
U.S. annually.
Light-duty vehicles account for 60 percent of all mobile source
Green House Gasses.
Expert Panel Report
45
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Information Gathering
Activities
3 Phases of Focus Groups: COMPLETED
Literature Review
Expert Panel:
Internet Survey:
ONGOING
June 9th, 2010
June 28th, 2010
Key Findings:
Information is gathered from a variety of sources such as
manufacturers and dealers, automotive magazines and websites,
word of mouth and from family and friends
The vehicle buying cycle is contracting due to the amount of
information that consumers are accessing on the Internet
The Internet provides consumers the opportunity to purchase
vehicles online (annual growth rate of 14.6% over the past five
years)
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EPA Fuel Economy Label Redesign
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Key Findings:
Purchasing a vehicle tends to be related to other major life
changes
US consumers will NOT purchase a vehicle that does not meet
their aesthetic standards
Currently environmental Impact is not a factor in vehicle choice
By the time the consumer enters the dealership s/he is closer to a
final purchasing decision than was true in the past
Key Findings:
Factors influencing choice
Specific vehicle or vehicle class in mind using these
considerations:
1. Vehicle Type
2. Vehicle Cost
3. Fuel Economy
4. Then: Safety, Reliability, Size, Appearance, Comfort,
Brand Name, Performance
Expert Panel Report
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Key Findings
Factors influencing choice
Price is currently even more critical for consumers because of
the global economic crisis
Fuel economy has also become even more critical for
consumers because of fluctuating gas prices and is the top
reason why people are opting for fuel-efficient or alternate-fuel
vehicles
Key Findings
Factors influencing choice
Barriers to purchasing vehicles that utilize electricity include:
concerns about insufficient driving range, the need for
specialized infrastructure (such as charging stations), battery
performance, and doubts concerning the ecological value of
vehicles that use electricity.
(Electric Vehicles / Extended Range Electric Vehicles / Plug-in
Hybrid Electric Vehicles)
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EPA Fuel Economy Label Redesign
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Key Findings:
The role of the current fuel economy label
The fuel economy label is a highly recognized tool
Used after a specific vehicle type has been selected
Used towards the end of the buying process
Primary use is to compare city and highway mileage
EPA Fuel Economy Estimates
Expert Panel Report
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