Energy Star

The Energy Star Program has Influenced Businesses

The Energy Star program was developed by the U.S Environmental Protection Agency in 1992 due to concerns about the increasing emission of greenhouses gases. The increasing sales and use of Energy Star products have influenced manufacturers, retailers, and other businesses to produce Energy Star products and use them in their buildings. The Energy Star program has included its Energy Star logo on many products and has recently extended to cover new homes and commercial and industrial buildings. Communication of Energy Star has increased, affecting the decisions of consumers and business professionals. These main characteristics of Energy Star will be analyzed:

Ð'* Retailers and Manufacturers Benefit from Energy Star

Ð'* Energy Star Affects Consumer Demand and Business Sales

Ð'* Energy Star Works with Industrial Corporations

Ð'* Energy Star Program is Expanding

Ð'* Communication of Energy Star Changes Perceptions

Ð'* Decision Making is Affected by Energy Star

Retailers and Manufacturers Benefit from Energy Star

By joining Energy Star, manufacturers and retailers receive various benefits. Businesses agree to promote the reduction of energy consumption by communicating with each other and networking. Because both retailers and manufacturers focus on selling Energy Star products, the marketing efforts of one business benefit all the others.

Partners Promote Energy Star by Joining

Several Companies have joined Energy Star to benefit from Energy Star program support and help educate the public on energy efficiency. The number of partners has grown to more than 1500 manufacturers and 800 retailers in 2005(EPA, 2006). By joining, businesses help reduce greenhouse gas emissions, demonstrate environmental awareness, and increase their competitiveness. A partner of Energy Star must agree to educate the public on energy efficiency and increase propaganda of the Energy Star program (Energy Star, 2006). According to a Gallup report on Energy Star partner satisfaction "as a general finding, Energy Star partners were very satisfied with the program and the service they receive from program staff" (Cohen & Beck, 2001).

Partners Help Market Energy Star

Many companies have helped increase the visibility of the Energy Star logo by using several marketing strategies. Home Depot, a retail company, paid for a National Energy Star TV spot to help raise awareness concerning the Energy Star logo. Another Retail company, Sears, promoted the use of Energy Star products by offering customers a 12 month 0-financing deal on any Energy Star product over $399. As a fruit of the campaign, Sears's efforts created more than 35 billion exposures to the Energy Star logo (U.S Department of Energy, 2005). Premier Lightning, a lightning showroom business in California, was able to increase sales due to the increasing interest for Energy Star logo brands like Wilshire and Sea Gull lightning. The quality of the lightning and the publicized Energy Star logo helped Premier lightning attract customers and improve competitiveness. General Electric has informed consumers by including information of Energy Star in their widely visited website ( Schwartz, 2006). GE has also included customer rebates and in store promotions of Energy Star products ( Howley, 2004). These strategies help market the products of manufacturers as well as helping increase the sales for retailers. Appearance of the Energy Star label helps other businesses sell their products as customers become attracted to the logo.

Partners Benefit from Networking

Manufacturer and retail partners benefit from Energy Star networking by sharing ideas and negotiating with each other. Every year Energy Star organizes an award ceremony to recognize advertising strategies and promotion of energy efficient products run by several businesses (U.S Department of Energy, 2005). Selling products and organizing campaigns becomes easier when businesses share a common interest, like being part of the Energy Star program. General Electric was able to bring the "Change a light , Change the world" campaign to millions of Americans thanks to the partnership with major retailers such as ACE Hardware, Sam's' Club, and Wal-Mart (U.S Department of Energy, 2005). This initiative helped increase sales by 43% in 2004 compared to the prior year (U.S Department of Energy, 2005). It has been predicted that sales of Energy Star lights will increase by 80% in 2010 (Kema, 2005). Marketing and networking are great strategies that partners of the Energy Star program can benefit from.

Energy Star Affects Consumer Demand and Sales

Products classified as energy efficient have increased in sales and demand. The satisfaction of customers has helped increase the use of Energy Star products. The increase in demand has helped sales, leading to an increase in Energy Star partners.

Customer Satisfaction Increases Demand

The increased appearance of the Energy Star logo has helped increase sales and demand for Energy Star products. More than 2 billion Energy Star labeled products have been sold since 1992 (EPA, 2006). A LOHAS, Lifestyles of Health and Sustainability, consumer report measured the popularity of Energy Star products in 2003 (National Marketing Institute, 2003). The report found that ENERGY STAR is recognized by 56% of consumers nationwide and 67% in many major markets, including New York, Boston, Seattle and San Francisco (National Marketing Institute, 2003). Helping people save money has increased interest towards the Energy Star program. The savings in utility bills of businesses and homes amounted to 12 billion dollars in 2005 alone (EPA, 2006). Even though the initial costs are higher, Energy Star products can save more money in the future. If Americans replace their commercial solid-door refrigerators and freezers with Energy-Star models savings will amount to almost $250 million per year (Whyte, 2005). In the LOHAS report 93% of consumers believe that saving energy is important for both the environment and their pocketbooks (National Marketing Institute, 2003). Out of those customers that have bought energy star products, 93% said that they will look for ENERGY STAR qualified products