SYLVANIA Socket Survey 8.0 Research Results

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1 SYLVANIA Socket Survey 8.0 Research Results Research among Americans ages 18+ on lighting topics including bulb use, LED knowledge, and smart lighting Conducted by KRC Research March 2016

2 Table of Contents Background Background and Methodology 3 Research Objectives 4 Key Findings Snapshot of Key Findings 6 Key Themes 8 Detailed Findings Detailed Findings 11 Appendix Respondent Profile 32 2

3 Background and Methodology The Osram Sylvania Socket Survey has been conducted regularly since This document contains results from the 8 th round of research. A new methodology and new questions were used in to explore the post-incandescent landscape. While comparisons to years prior to 2015 may be made in this report, those findings should be considered directional METHOD: Online survey Landline and cell phone telephone survey Landline telephone survey DATA COLLECTION: February 24- March 1, 2016 February 19-24, 2015 November 15-24, 2013 November 8-15, 2012 October 13-17, 2011 November November 6-20-December 10, , 2010 November 14-17, 2008 SAMPLE SIZE: 1,000 interviews 1,000 interviews 300 interviews (65 via cell) 305 interviews (65 via cell) 303 interviews (76 via cell) 309 interviews (77 via cell) 302 interviews 301 interviews SAMPLE: (American adults, ages 18+) Obtained via online panel Obtained through random digit dialing MARGIN OF ERROR: (At 95% Confidence) ±3.1% for the ±3.1% for the ±5.7% for the ±5.6% for the ±5.6% for the ±5.6% for the ±5.7% for the ±5.7% for the entire sample entire sample entire sample entire sample entire sample entire sample entire sample entire sample Note: throughout this report, the term significance refers to statistical validity and does not indicate importance or meaningfulness. 3

4 Research Objectives Osram Sylvania commissioned this survey to uncover insights on the topic of LED and smart lighting specifically consumer adoption, and behaviors and attitudes towards the technology. This research was designed to: 1. Explore the prevalence of LED lighting in homes; 2. Understand the home lighting purchase behaviors of consumers, including pain points, influencers, and future purchases; and 3. Gauge consumer awareness and interest levels of new "smart lighting" and other technologies. 4. Track changes in findings year over year to highlight trends. 4

5 Key Findings

6 Snapshot of Key Findings Buyers and Info Sources Nearly all Americans have some influence over the light bulb purchases for their homes, though men are slightly more likely than women to be sole decision makers. The most common source of light bulb information is at a physical point of sale: employees, displays, and packaging are consulted most often. Since 2015, more consumers are turning to websites (retailer and manufacturer) and consumer reviews. Attribute Influences Longevity, brightness, and price remain the three most commonly important factors in any bulb decision. LED bulb users are more likely to place importance on almost every feature of the bulbs they buy, suggesting that they re taking more into consideration. The exception is price, which non-led users find more important. Bulb Usage In the wake of the announced phase-out of incandescent bulbs, Americans say they most often stock up on LEDs, a noticeable change from 2015 in which CFLs were the most common alternative. LED Bulbs More consumers are aware of LED bulbs than any other non-incandescent variety, a fact that is unchanged from last year. Nearly three quarters have purchased LED bulbs, and nearly half have done so in the past 12 months a significant increase since 2015 and the only bulb with such growth. Like bulbs in general, longevity, brightness, and price are the top LED considerations. 6

7 Snapshot of Key Findings CFLs Consumers show signs of moving away from CFLs and toward LEDs. Compared to 2015, fewer say they ve shifted to CFLs as a response to the phase-out, and fewer are most likely to buy CFLs the next time they need bulbs. As was the case last year, a slightly smaller number of consumers have heard of CFLs compared to LEDs. Smart Technology Most consumers have heard of smart technology, especially thermostats, alarms, lighting, and locks. A smaller but growing number are familiar with smart appliances. Despite awareness, purchases are less common: less than one third of consumers have purchased smart technology of any kind. Still, consumers see advantages of smart technology for many spaces in the home, and only a small minority say homes would not benefit at all. Smart Lighting Most consumers think smart lighting will eventually replace regular light bulbs, and the intensity of that belief ( strongly agree ) has grown noticeably since last year. More than half of consumers also believe smart lighting fits their lifestyle, and similar growth in the intensity of belief is evident. However, few consumers have ever purchased smart lighting, suggesting that Americans see a trend coming but have not personally adopted it. Price and lifespan are the two top influences on smart lighting purchase decisions. In the case of bulbs in general, price was the third-strongest influence, suggesting that cost is a stronger concern for smart lighting in particular. 7

8 Key Themes: LED Bulbs Rising to the Top 1. Strong recent growth has elevated LED light bulbs to the top of the list of bulb types in several categories. More households bought LED light bulbs last year, while other bulbs held constant. Though only 70% of consumers have ever bought LEDs (vs. 88% incandescent and 77% CFL), half (48%) have done so in the past 12 months alone. This is an increase of 17% since last year; no other bulb showed such growth. As a result, roughly the same number of homes bought LEDs as CFLs (50%) and incandescents (46%) in LEDs have become the most preferred alternative to incandescents since the phase-out, bumping CFLs from the top spot. Thirty-eight percent of consumers say they ve switched to LEDs as a result of the phase-out, topping the list of options. This is an increase of 27% since last year. Meanwhile, the number of consumers who switched to CFLs has fallen by 20%, to 33% overall. LEDs have also overtaken CFLs as the most likely next purchase. Thirty-nine percent of consumers are most likely to buy LEDs the next time they need bulbs, up 11% and more than any other option. CFLs fell 15% to 31% overall in the same timespan. LED growth is being driven by younger consumers, smart technology owners, and those using the bulbs in electronics. Those under 35 (48%) and smart technology owners (46%) are more likely than average to have switched. Additionally, LED owners who say they use the bulbs in electronics is up 16% to 37% overall. More are buying in to LED benefits and attributes, but a gap for non-users remains. Most statements about LED attributes gained support in 2016, especially the ideas that the look is pleasing (up 9%) and the color of the light is pleasing (up 7%). The number who say the initial cost is worth it for the value is also up 6% overall, but current users are 23% more likely than non-users to strongly agree with that statement. 8

9 Key Themes: More Expect Smart Lighting To Grow 2. Smart lighting is one of the top smart technologies in ownership and consideration, and positive signs and opinions suggest growth to come. As awareness of smart lighting ticks upward, more consumers own smart lighting than in Two thirds of consumers have heard of smart lighting (65%), placing it in the top tier of smart technologies along with thermostats (68%) and house alarms (66%). Although 70% don t own any smart technology, lighting is most common at 14% and growing (up 40% this year). Lighting is one of few technologies to grow since Price plays a bigger role in consumers smart lighting consideration compared to regular bulbs. When the smart label isn t specified, consumers rate brightness and longevity as the top two influences on purchase. In contrast, price and longevity top the list for smart lighting (60% say very important). Price may still outweigh the return on investment for many: 75% agree they re too expensive, the same as last year. Younger, wealthier, more digital Americans are the most likely candidates for near-term adoption of smart lighting. Overall, 55% of consumers say they re likely to purchase smart lighting when they need new bulbs, but certain groups are more likely. They include those who get lighting information from the Internet (68%), already own LEDs (61%), earn $100,000+ plus (64%), or are under age 35 (63%). Signs indicate a bright future for smart lighting, and consumers expect the technology to grow. Four in five (80%) say there is at least some space in the home that could benefit from smart lighting (86% among those under 35). The number of consumers who strongly agree that smart lighting is a good introduction to home automation is up 18% since last year (33% overall), and the number who strongly agree it fits their lifestyle is up 37% (to 26% overall). In fact, more consumers than last year believe smart bulbs will eventually replace regular ones (76% vs. 72% in 2015), and the number who strongly agree is up 26% to 34% overall. 9

10 Overall Lighting Landscape

11 Most Have Some Say Over Bulb Purchase Decisions Nearly all Americans are at least somewhat involved in the light bulb purchases for their homes, and two thirds identify as the sole decision maker. Light Bulb Purchase Decision Roles Not involved in the decisions 6% Participant and involved in decisions 30% Sole decision maker 64% Most Likely to be Sole Decision Makers: Men (68%), vs. women (61%). Smart lighting owners (78%), vs. those who do not own "smart lighting technology (62%). Q4. When it comes to decisions about light bulb purchases within your household, which of the following best describes you? (n=1000) 11

12 Most Bulb Information is Obtained In-Store Americans rely most on in-store displays and packaging when considering light bulbs. Compared to 2015, consumers are more often learning via websites and consumer reviews, and less often via traditional news media. Italics: statistically significant change from 2015 to 2016 Q13. Where do you get your information about what light bulbs to purchase? (n=1000) 12

13 For Any Bulb, Longevity And Brightness Are Key As was the case in 2015, a bulb s longevity and brightness is more likely than any other attribute to be very important to consumers. The biggest change from last year is the importance of origin: the share of consumers who say it s very important to be made in America jumped from 25% to 32%. Q5. How important are each of the following attributes to you when you choose a light bulb? (n=1000) 13

14 For LED Users, Cost is Less Important Overall Compared to non-users, LED bulb users place similar or greater importance on each possible attribute of LED bulbs. A generational divide is also apparent: Millennials are less likely than Boomers to say brightness and American origin are very important. Generational Notes Overall, Boomers are more likely than Millennials to say brightness (69% vs. 58%) and being made in America (40% vs. 27%) are very important. Millennials are more interested than Boomers in light qualities and options: more say light color (53% vs. 44%) and dimming ability (25% vs 13%) are very important. The importance of price does not differ significantly. Millennials: 18-35, Boomers: 55+. Q5. How important are each of the following attributes to you when you choose a light bulb? (LED users: n=698; non-led users: n=302) 14

15 LED, Compact, Fluorescent Light and Halogen Insights

16 LED, Halogen, And CFL Awareness Remains High The vast majority of Americans have heard of LED bulbs, halogen bulbs, and CFL bulbs. No significant change has occurred since In the case of halogens, providing additional information ( which look like traditional incandescents ) did not have a visible impact on awareness. Generational Notes Americans age 35+ are more likely to have definitely heard of each bulb LED 90% 85% Halogen 84% 66% CFL 79% 64% * Additional information given in 2016: Halogen light bulbs, which look like traditional incandescent Q6. Which of the following types of light bulbs have you heard of? (n=1000) 16

17 In Response To Phase Out, LEDs Are Gaining Quickly Following the announced phase out of incandescent light bulbs, younger, smart tech-owning consumers are leading a shift towards LEDs at the expense of CFLs and other options. Still, many are continuing to use traditional bulbs. Q12. Now that traditional incandescent light bulbs have been phased out, which did you do in your household most often? (n=1000) 17

18 LED Last 12 Months Purchases Now Match CFLs Following the passing of legislation that phased out incandescent bulbs, LED bulbs are becoming more common. The number of Americans who say they ve purchased LED bulbs in the past year jumped 17 percent in Q7. Which of the following types of light bulbs, if any, have you purchased for your home? (n=1000) 18

19 LEDs Overtake CFLs In Future Purchase Intent Driven by higher income households and younger consumers, LEDs are the most common likely next purchase among light bulb choices. However, LED gains come at the expense of CFLs, which have fallen by 16 percent in likelihood since Q8. The next time you need to purchase light bulbs for your home, which type of light bulb are you most likely to buy? (n=1000) 19

20 Much of 2016 s LED Growth Driven By Electronics Seventy percent of consumers have purchased LED bulbs for their homes, an increase from last year. Much of that growth is attributed to use in electronics, which is up 16 percent since 2015 (a statistically significant increase). Q7. Which of the following types of light bulbs, if any, have you purchased for your home? (n=1000) Q11. Are the LED light bulbs in your home being used like traditional light bulbs placed in sockets, are they part of electronics you have in your home, or are they in holiday lights? (LED users: n=653) 20

21 Across The Board, LED Benefits Gaining Acceptance Despite some gaps in perceptions, consumers are more or equally likely to agree with LED statements compared to last year. In particular, the bulbs physical features are gaining favor: consumers are more likely to say the color of light and the shape of the bulbs are pleasing. Q7. Which of the following types of light bulbs, if any, have you purchased for your home? (n=1000) Q11. Are the LED light bulbs in your home being used like traditional light bulbs placed in sockets, are they part of electronics you have in your home, or are they in holiday lights? (LED users: n=653) Q10. To what extent do you agree with the following statements? (n=1000) 21

22 Longevity, Brightness, Price Top LED Considerations Longevity, brightness, and price are the top three influences on LED purchases the same three attributes as light bulbs overall. Since 2015, LED bulbs shape and look have grown noticeably in influence. Q9. When thinking about LED light bulbs, how much would the following features influence your decision to buy one? (n=1000) 22

23 LED Benefits Resonate Especially Well With Users At least nine in ten LED users agree with every statement about the bulbs. And although clear majorities of non-led users agree with each statement as well, they are relatively less likely to agree that LEDs are worth the initial cost. Q10. To what extent do you agree with the following statements? (LED users: n=698; non-led users: n=302) 23

24 A Gap Remains: Non-LED Users Lack Strong Buy-In The perception gaps widen when comparing who strongly agrees with each LED statement, which suggests that non-users are especially likely to agree just somewhat with each idea. Even among LED users themselves, no more than six in ten strongly agrees with any of the positive attributes. Q10. To what extent do you agree with the following statements? (LED users: n=698; non-led users: n=302) 24

25 Smart Lighting and Smart Technology

26 2016 Changes In Smart Tech Ownership Are Minimal Over half of all consumers have heard of smart lighting before, and now 14% say they currently own such smart lighting technology an increase of 40% since last year. Q15. Which of the following smart home technologies, if any, have you heard of? (n=1000) Q16. Which of the following smart home technologies, if any, do you currently own? (n=1000) 26

27 Consumers Still See Potential Throughout The Home Four in five Americans believe at least one room in the home would benefit from smart lighting technology. Living rooms and kitchens are most commonly seen as benefiting from such lighting. Eighty-six percent of those under age 35 say any room would benefit, compared to 72% of those age 55 or older. Q18. Which of the following rooms, if any, do you think would benefit from utilizing smart lighting solutions? (n=1000) 27

28 Price Is Top Factor For Smart Bulbs, Unlike Traditional While longevity and brightness were most important for LEDs and all bulbs in general, price jumps to the top of the list of influences for smart bulb purchases. Q19. When thinking about smart light bulbs, how much influence would the following features have in your decision to buy one? (n=1000) 28

29 Consumers Are Warming Up To Smart Lighting Compared to 2015, Americans are more likely to strongly agree that smart light bulbs are a good introduction to home automation. In the sign of positive trend, they re also more likely to say smart bulbs will eventually replace regular light bulbs and fit my lifestyle. Q20. How strongly do you agree or disagree with the following statements? (n=1000) 29

30 More are Considering Smart Tech For The Future Approximately one quarter of Americans say it s very likely they will buy smart thermostats, light bulbs, house alarms, or door locks the next time they need them. (The likelihood of buying smart appliances is somewhat lower.) Q17. When you next need to replace them, how likely or unlikely are you to buy smart versions of each of the following technologies? (n=1000) 30

31 Appendix: Audience Profile

32 Audience Profile N=1000 N=1000 Gender Female 51% Male 49% White 69% Hispanic 14% % Ethnicity Black 12% Age Region % % South 37% Midwest 23% West 23% Household Income Asian 4% Other 1% Less than $50,000 43% $50,000 < $100,000 32% $100,000 or more 23% Northeast 17% Education College degree 43% No college degree 57% * Some percentages may not sum to 100 due to rounding. 32

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