BLOG FOR SPECIAL FINANCE CAR DEALERS
Blue States are Green While Red States are Brown
The latest analysis by Experian Marketing Services finds consumers in states that went for Obama are more likely to think and act Green than those in McCain states.
Location, location, location
The first thing that I learned when I got into retail was the fact that success depended on three things and those three things were location, location, location. After reading the results of the latest analysis by Experian Marketing Services, it seems to us here at Auto Credit Express that it’s not only the road where your dealership is located that will determine how your market, it’s also the state in which you do business that may determine how you sell to customers as well as what you sell to your clientele.
Blue states more eco-conscious
According to the Experian study, consumers that live in states that went blue in the last election are more predisposed to be eco-conscious in their attitudes and buying behaviors than their red state counterparts.
Here is what Experian had to say:
The analysis, which compared the self-reported environmental behaviors of American households against the 2008 electoral map, found that 34.3 percent of consumers in those states whose votes went to Barack Obama were Greener in their day-to-day activities. This presents a significant contrast to the 29.9 percent of Green-minded consumers in the states that went to John McCain. The national average for consumers who think and act Green regularly is nearly 33 percent.
“Not only do we live in an increasingly Green-minded country, but it is important to note how those attitudes align with the other behaviors and preferences we have as consumers and Americans,” said Joe Paulsen, general manager of Consulting and Analytics for Experian Marketing Services. “Our data has shown a clear trend that those in blue states tend to be much more likely to think and act in ways that are more eco-friendly.”
The difference between green and brown
The analysis also broke down specific areas of behavior:
• Blue-state consumers are significantly less likely to be Brown (those who do not act or think Green and may even hold negative attitudes about environmental issues), at 12 percent — nearly 6.5 percent below the national average.
• Consumers in red states are significantly more likely to be Brown in their attitudes, at 14.8 percent. That is 14.9 percent above the national average.
• Nearly 34 percent of consumers in red states were found to be potentially Green in their habits — those conscious of, though not fully decided on, Green issues — coming in at 6 percent above the national average.
• Hawaii has the highest percentage of households that are proactively Green in their behaviors, at 40.2 percent — nearly 22 percent above the national average.
• Utah has the highest percentage of Brown households, at 20.93 percent — a substantial 62 percent above the national average.
Experian also has what they term a GreenAwareSM “segmentation system” that categorizes consumers into these four groups based on their survey responses to “Green-related buying patterns, lifestyle, opinions, attitudes and media use” :
• Behavioral Greens — Representing more than 34 million households, members of this group think and act Green. They have negative attitudes toward products that pollute and incorporate Green practices in their routines regularly.
• Think Greens — Representing more than 24 million households, this group thinks Green but does not necessarily act Green.
• Potential Greens — Representing more than 36 million households, this group neither behaves nor thinks along particularly environmentally conscious lines and remains ambivalent about key environmental issues.
• True Browns — Representing more than 14 million households, this group is not environmentally conscious and may harbor negative attitudes about environmental issues.
The Bottom Line
While high gas prices this past summer forced many customers into smaller and more fuel-efficient vehicles, it’s just as important for dealers to realize what kinds of customers they will be dealing with once fuel prices reach some level of stability. Red state dealers may see the sales of larger vehicles recovering more quickly, while blue state dealers may see a faster pace toward smaller and alternative-fueled models. At least here at Auto Credit Express, we think the results are very interesting and the results certainly justify further study.