1. Most Desired Improvements Who consults with the “Very much satisfied”? Who consults with the “Somewhat Satisfied”? 2010 Home Comfort System Satisfaction 50% 43% 7%

2. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 34  More and more homeowners are turning to the Internet  The Internet now replaces other input.  It is important for energy consultants to know what is being said on the Internet, to know how to best serve Internet using clients. Homeowners And The Internet

3. Sources Used to Gather Information About Purchase Key Sources of Information Contractor 65% 63% 66% 62% 55% Internet 28% 32% 24% 21% Friends, neighbors, co-workers 25% 28% 29% 35% 46% Yellow Pages advertising 5% 4% 3% 7% 24% 2008 2010 2006 2004 2002 WOW! 2013 10%35%43%

4. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 36  Homeowners’ that use the Internet to research HVAC products are information seekers.  The Internet should simply help them better understand and confirm what they are hearing from other sources.  The Internet should be used to allow them to better talk with others about their heating and cooling needs and experience. Information and the HVAC Homeowner

5. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 37  Communication is key when a new central system or part of a new system is added to the home.  Unfortunately, communication between the homeowner and the “experts” remains horribly limited.  The next series of slides illustrate the need for more training on the part of contractors and homeowners. Communication

6. What Contractors See As The Reasons Is Very Different What Contractors See As The Reasons Is Very Different System Upgrade Buyers Planned Purchasers Breakdown Buyers Reason For Purchase Contractors see that eight in ten replacements are because of breakage that is too costly to repair. Many contractors feed that replacement scenario by often believing they are helping the homeowner by repairing an old system until it cannot be affordably repaired anymore. The homeowner complies and waits to buy what they want once the system can’t be affordable fixed. Only one in ten homeowners told the contractor they bought the new equipment to achieve better energy usage. This Is What Homeowners Tell Their Friends What Caused Your Central HVAC Purchase?

7. Homeowners Replacing HVAC Equipment Are More Plugged Into Efficiency And Energy Savings Than Contractors Know Homeowners Replacing HVAC Equipment Are More Plugged Into Efficiency And Energy Savings Than Contractors Know Efficiency And Energy Savings Homeowners replacing existing equipment in the home often make their decisions on more than one reason. Looking at each reason separately you can see the real reasons for their purchase decisions. Almost half of all homeowners make a decision based on energy savings when buying new central equipment. One fourth buy to improve comfort. One in ten purchase something to improve IAQ. Unfortunately, because contractors believe the homeowner simply wants to fix what broken, energy upgrades that could take place based on better information do not.

8. Total Reasons To Replace An Old Air Conditioner With A New One Wanted to improve air quality Wanted to improve comfort Wanted more efficient product to reduce utility bills

9. Prepared For: Copyright © 2013 Decision Analyst American Home Comfort Study 2002 - 2013 41  Many contractor consultants conduct themselves in a way that the homeowner can feel good about.  Too many technicians, however, are not trained properly or do not conduct themselves in a manner conducive to being a strong consultant. Who Are These HVAC Consultants

10. Many install technicians lose the customer’s service future work Contractor/Installer Profile Courteous & Professional Correct Truck Signage Calmed My Fears Letting A Stranger In My House Had right uniform signs Had A Business Card Stood Back From Door Until I Felt Comfortable 50 % 60 % 70 % 30 %

11. Homeowner Assessment Of Their Contractor The economy has been brutal-with recent signs of limited recovery Communications problems Few consultative technicians Products did not fix the problem We need to find ways to better train and influence these potential and important in- the-home energy-use consultants.

12. 201357%46%42%49%58%56% 201047%48% 52%59%62% 200850%49%51%56%61%62% 200652%54%62%64% 4 4 5 5 6 6 5 5 4 4 4 4 Bad And Getting Worse Installation and Purchase Experience (Replacement Buyers)

13.  Many homeowners are doing something to save energy in their home. Unfortunately many are uninformed and doing it poorly (Home Performance Consumers?)  More out of season outreach is needed. One fifth of U.S. homeowners believe their homes are in need of energy upgrades (Potential Home Performance Consumers?)  Much more out of season outreach is needed. One fifth believe their homes need better IAQ (Potential Home Performance Consumers?) Energy utility and/or contractors need to do more.  Homeowners are older, with more income, more desire and reason to improve their home’s comfort and energy use. Why are contractors not making more suggestions? (Home Performance Consumers?)  In-home contractors (specifically Consultive ones) are positioned as emissaries for improved livability and home comfort at reduced prices. (Are they actively growing Home Performance Consumers?)  Communications between many contractors and the homeowner decision makers need work (Even the Consultants? ---Yes)  While there are exceptional HVAC contractors, there are also many who’s business models do not improve home comfort, or energy usage. Energy utilities sometimes work with good contractors, sometimes don’t.  Sometimes energy utilities get in the way, and at other times, they do little or nothing. How will “smart meters” help?  For the established Consultive contractor, the best way to find and keep (Home Performance Consumers) may include the use of Service Agreements to build relationships with customers, and help form and build their expectations!!! Reflections - Relationships

14.  At least half of all homeowners are doing something – much of it uninformed  Millions know they need improved energy in their home  Homeowners are older, with more income, and more desire to upgrade their home  In-home contractors (specifically CONSULTATIVE ones) are positioned well  Communications between many energy utilities and contractors and the homeowner decision makers need work  While there are exceptional HVAC contractors, there are also many who’s business models do not improve home comfort, or energy usage  For the established Consultive contractor, the best way to find and keep (Home Performance Consumers) is to build relationships  Lack of TRUST is essentially the most critical issue that keeps the homeowner from making the right moves  Uninformed homeowners are hard to reach. Reaching them before they have a need is difficult  Is it easier to begin building TRUST based on a $250 sale annually (Svc agreements), or a $4,500 replacement sale once every seven to 17 years? Reflections - Relationships

15.  The Internet is a way to better inform.  Energy Utilities have a relationship and Smart Meters that can better inform  New energy audit companies have a platform to better inform  Consultive contractors have the ability to build relationships that can better inform  Federal agencies have great information, but are not often accessed  How do all of us work to better build the message and the change? Reflections - Relationships

16. Proprietary Internet Panel Summary ACOP.COM American Consumer Opinion ® 8+ million consumers worldwide Executive Advisory Board ® C-level executives, directors and managers worldwide Technology Advisory Board ® IT professionals, scientists, technologists in major industrial countries Contractor Advisory Board ® All segments of building and construction industry Imaginators™ Exceptionally creative consumers used to generate new product ideas Garry Upton – gupton@decisionanalyst.comgupton@decisionanalyst.com (817) 640-6167 Questions? - Contact To join one of Decision Analyst’s proprietary research panels, include your experiences, and thoughts within relevant studies, register at ACOP.COM