Mapping Decision Making Processes by New Home Buyers

1. Mapping Decision Making Processes by New Home Buyers Dr. Jan Brace-Govan, Professor Harmen Oppewal, Dr. Itir Binay, Dr. Liam Smith Caulfield Campus

2. Agenda • Brief overview of aims and process • Key results from discovery orientated interviews • Results from telephone interviews and online panel • Recommendations for Communication

3. Issue & Objectives • Ergon Energy is interested in managing peak demand and slowing the growth rate of peak demand by increasing the uptake of energy smart homes in the Townsville area • Consumers have to make a large number of decisions when building new homes • Abundant information is available but the challenge is to influence how consumers make decisions about the features included building new homes • A starting point in this is a better understanding of consumers’ decision making around the features and products Mapping decision making processes by new home buyers

4. Project Aims & Research Process • 1) map decision making processes • 2) develop a model of decision making processes • 3) make recommendations on messages, methods of intervention and channels for communication. 1) Discovery Orientated Interviews (n=17) 2) Telephone Survey Interviews (n=15) 3) Online Panel (n=31) Mapping decision making processes by new home buyers

5. Basic Structure of Consumer Decisions and Factors Affecting Decisions • Basic Structure of Consumer Decisions • Location • House and Land Package • OR • Block of Land and House to follow • House Design • Structural Design of House • Interior Design of House • Factors Affecting Consumers’ Decisions • Cost • Townsville’s geographic location and weather • Commitment to sustainability • Long term plans of house owner • Sources of Information • Reason for Building • Building Process • Problems with Passive Cooling Mapping decision making processes by new home buyers

6. Considerations • Land and house as separate purchases • Cost was a key driver • only 3 participants gave a state commitment to sustainability/energy conservation • Land choices • Proximity to city/bush/family/friends • Breezes • Block size • Neighbourhood • Builders (architects) • House Design • Builders plans Difficult to segment consumers Decisions in these areas highly contextualised and personal and unlikely to be influenced by external agencies Mapping decision making processes by new home buyers

7. Decisions • 12 decision making areas • decisions made at the time of building the house: orientation of the building, location of types of rooms, ceiling height, window style, colour of the roof, and whether or not to insulate walls. • decisions are often made with builder’s input • landscaping (for shade), garages, sheds, pools and water tanks incorporated at a later date • some decisions less expensive (ie whirly birds) Consumers consider defraying initialexpenses through longer term cost savingBUT some reported not knowing enoughabout passive cooling AND Decisions are often complicatedand inter-connectedeg. WINDOWS AND Some builders unhelpfulcouncil approvals confusing Mapping decision making processes by new home buyers

8. Choices • Mostly familiar items (eg. Appliances) where the problem is CHOICE • Also experienced as difficult to reverse • Lighting • Floor tiles • Colour Colour is an interesting example of how lay understandingsbring diverse elements together‘Colour’ covers both inside and outside the houseand is a (public) expression of taste Mapping decision making processes by new home buyers

9. Telephone Interviews & Online Panel • Were decisions – easy moderate difficult • Was involvement – low moderate high • Time taken to decide • Sources of Information • Online • The builder • Display homes • Magazines • Previous experience • Work experience • Brochures • Suppliers • Friends and family • Other (with text space) Mapping decision making processes by new home buyers

10. Decisions of Difficulty and Involvement • Solar Panels • Only 13 had installed solar panels • 1 day to 6 months: median 2 weeks • Only decision where Online was a significant source of information along with suppliers • Confused, worried about making the wrong decision • Builders can be helpful • Variation in consumer views • Cause increase in peak demand • Other alternatives Mapping decision making processes by new home buyers

11. Decisions of Difficulty and Involvement • Landscaping • Builders less often involved, if at all • Need for credible source of information • Most only one source • Only decision that remained “ongoing” • Difficulty lies in connections to other decisions • We’re not gardeners Mapping decision making processes by new home buyers

12. Decisions of Difficulty and Involvement • Swimming Pools • 15 participants had pools • 3 explained the cooling effect • 1 day to 4 months: median of 2 weeks • Materials, maintenance, supplier were the difficulties Mapping decision making processes by new home buyers

13. Recommendations for Communication • Ergon Energy – 2 Channels of Communication – SUPPLY CHAIN • Integrated communications amongst suppliers to the building industry – intervene in the supply chain • Consumers need to know how to optimise their options and what the trade-offs are • Consumers need a cost-benefit analysis of various configurations • Currently they rely on Builders • Or family/friends that are in allied trades • Work with builders to generate energy efficient house plans Mapping decision making processes by new home buyers

14. Recommendations for Communication • Ergon Energy – 2 Channels of Communication – CONSUMER INFORMATION – “one-stop shop” • Consumers interested in comfort and savings • Consumers searching for knowledge …. But not online • Need easy to follow guidelines that prioritise lower energy use • Solar Panels • Swimming Pools • Landscaping • A comprehensive information service including cleaning, maintenance, durability, inter-changeable options • Broadening relationships with suppliers and lifting profile in community Mapping decision making processes by new home buyers

15. Thank you for you attention.Questions? Dr. Jan Brace-Govan Professor Harmen Oppewal Dr. Itir Binay Dr. Liam Smith Mapping decision making processes by new home buyers