Fabulous Function

The driving influences behind major appliance purchases have changed considerably in the last couple of years, due to economic factors and people re-prioritizing their wants and needs. And value, it seems, is more important than ever.

"Many consumers are in a ‘need' situation rather than a ‘want' situation, since they are being forced to buy a product due to a product failure or a need for an improved product," reports Robert McKechnie, manager of New Product Development/Engineer at Electrolux Major Appliances in Augusta, GA. "Value, with respect to energy efficiency and feature set, is key. So while style is still important, it is not the main driver."

However, McKechnie is quick to point out that value does not necessarily mean lower price, but rather the best set of features at a particular price level.

Scott Davies, marketing manager for Fisher & Paykel Appliances in Huntington Beach, CA, concurs that value has become very important. He notes that, while both the Fisher & Paykel and DCS brands are positioned at the premium end of the market where price is not as much of a driving factor, "given the economic conditions of late, customers still aspire and want premium brands, but are less likely to purchase if the return on investment is not there."
What this means is customers are still prepared to pay for premium brand names, but they expect to see real benefits for the features high-end brands employ.

Indeed, quality plays a vital role in providing value and return on investment. Consumers are now savvy about product features; they know how to collect information and make comparisons between different products.

"Consumers look for both quality and price, and they still want the latest product on the market," says Sonja Dettori, operations manager U.S. Market, Smeg USA in New York, NY. "However, they do not buy products just because of the brand name; they want to verify the quality."

Green Theme

In quality appliances, energy efficiency is now a given. With Americans taking a stronger interest in the environment, appliance shoppers are focusing on energy- and water-efficient appliances, with many demanding efficiency that exceeds just the minimum energy- and water-efficiency standards, reports John Farley, senior brand manager for Bosch Home Appliances in Huntington Beach, CA.

"It's been said over the past few years that, if you're not building sustainably, you're not building," says Terri Connett, senior manager, Marketing & Design Contract Channel, Whirlpool Corp. in Benton Harbor, MI.

The statistics back this up: According to a 2009 Whirlpool survey, conducted with Harris Interactive, more than two-thirds of respondents indicated they do their best to be green to the extent it fits their lifestyle and finances. The survey also reported that 72 percent of consumers look for an Energy Star label when purchasing an appliance.

Bosch has seen a strong demand for efficient home appliances based on two factors, according to Farley – the State Energy Star Rebate Program (SEEARP) and a greater awareness among consumers regarding the environment.

"SEEARP provided incentives to homeowners with rebates to replace outdated appliances with newer, Energy Star-qualified models," says Farley. He adds that everyone is taking a second look at how his or her daily habits are impacting the environment. "Why waste water and energy washing your dishes by hand when an energy-efficient dishwasher such as the Bosch 800 Plus uses less than two gallons per cycle and only 180 kWh/year?" he asks.

The Consortium for Energy Efficiency (CEE) publishes a list of super-efficient home appliances. The list is divided into three tiers – tier one, two and three (with tier three being the most efficient). Farley believes consumers are turning to the CEE ratings to help identify the most efficient products in a class, noting that several of the SEEARP programs require higher tier to qualify for appliance rebates.