US Gas Prices Force Attitude Changes

Two new surveys from US MR firms examine the effects of soaring US gas prices. Synovate finds that consumers are looking at cars powered by alternative fuels, while ACNielsen finds the price rises are changing shopping habits, with many people combining errands, eating out less, and doing more at home.

Synovate's survey finds that it is gas prices, not concern about emissions, that will drive US consumers to embrace alternative fuel technologies. When considering alternative technologies, 42% state that their number one consideration is fuel economy, followed by just 24% who are concerned about how environmentally friendly the vehicle is.

When respondents were asked why they were hesitant to accept new technologies, lack of familiarity with the technology (42%) and general 'dislike' of the technology (41%) were the main issues.

The survey found that 56% of consumers are more likely to consider a hybrid vehicle than they were a year ago, while only 5% are less likely to do so. However, there is much less awareness of the potential fuel economy of diesel engines: only 20% of car and truck buyers say they are more likely to consider a diesel engine than they were a year ago, while 13% are less likely.

Scott Miller, CEO of Synovate Motorresearch, says this is 'a great time for the alternatively powered vehicle industry'. He says the survey shows 'hesitancy on the consumer side mainly resulting from lack of knowledge of the benefits of each technology. With gas prices climbing, consumers are going to be forced to become educated on their options.'

Meanwhile, ACNielsen has found that the high price of fuel is impacting not just on vehicle options, but on everyday life - and more so for some than others. The survey - conducted among 37,000 members of the company's Homescan panel - found that 61% are trying harder to combine errands and trips, 31% are eating out less often, and 30% are doing more things at home rather than going out.

The impact is felt most among poorer households. More poor households than affluent households say they are now buying less expensive grocery brands (20% vs 10%), lower grade gasoline (19% vs 12%), and spending less in other areas 'to a great degree' (15% vs 5%). Even among the affluent segment, just 26% claim that higher fuel prices have had no impact on their driving and spending habits.

Todd Hale, ACNielsen Senior VP, Consumer Insights, says gas prices have risen even further since the survey was conducted in June and July. He points to the implications for the CPG industry, saying there are 'opportunities for one-stop-shop retailers like supercenters and warehouse club stores to win the ongoing business of new customers, and for supermarket operators to play up the convenience of store locations and the value of their take-home meals. Lastly, the fact that many consumers are doing more at home should spell opportunity for manufacturers of products that enhance at-home entertainment.'

The two companies' web sites are at www.synovate.com and www.acnielsen.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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