Wednesday, September 10, 2008

Under the 2 - or 'gauging' consumer behavior

When I am not driving my 80 mpg Malaguti Scooter around town (which can be challenging due to weather and distance), I unfortunately drive a gas guzzling Ford Ranger 4X4. But I have noticed that when I keep the tachometer gauge under the 2, my mileage improves significantly.
I believe this may have been something I heard a while back either from NPR's Click and Clack or someone else.

I would love to trade the truck in for a Prius these days, but can hardly justify the purchase of a new vehicle when the truck has long since been paid for. On the other hand, I can do my part to conserve and save money by driving slower. For my Ford Ranger, specifically this means accelerating much slower than usual from a standing start and driving at 55mph or lower on the highway. (According to the U.S. Environmental Protection Agency and Oak Ridge National Laboratory, a vehicle loses about one percent in fuel economy for every one mile per hour above 55 m.p.h. that it is driven.)
While I have thought about starting an "Under the 2" club, social network, movement, this may be a lost cause given that consumer behavior does not always match with consumer belief.
I learned a long time ago while working on GLAD garbage bags during a landfill crisis in the Toronto area that consumers say they want to do the right thing, but convenience and personal desires almost always overrule.
In the case of gas conservation, aside from the "go green" argument, a lot, if not most people, must know that a properly maintained car (including properly inflated tires (thanks Barack -which even FOX News acknowledged in 2006!) and simply avoiding rabbit starts can save them money at the pump. But although even I find it difficult to drive 'under the 2' when I am in a hurry, it never ceases to amaze me how often I am passed as I approach a red light, or get dirty looks for driving at 55 mph on the highway.
Are we all really in that much of a hurry? At what point does convenience or a little bit more of our time and effort intersect with our wallets? Of course an economist (or marketer) will tell you that the open market will always provide the answer. Many consumers will pay quite a bit for convenience and marketers will find ways to make money by saving you money. But what will be the tipping point for people driving and acting different in order to save gas?
As the price of gas falls to as low as $3.09 this week in some parts of Columbus and the price of oil dropped below $90/barrel today it will be very interesting to see where personal fears related to the economy intersect with personal habits. Sen. John Warner, R-Virginia has already proposed moving back to the 1970's 55 mph laws and that is getting the "one finger salute".
I have a better idea. Another vehicle in my name is a Volvo S40, which has an electronic gauge that, with the turn of a dial, can show you a number of things, including outside temperature, miles left in the gas tank, average miles per gallon you are getting over time - and most importantly - the gas mileage that you get while you are driving the car. It is amazing to see this measurement jump around as you put your foot on the accelerator slowly or quickly, or coast (it will max-out at 99.9 mph while coasting, which is fun to see). I propose we market the heck out of these types of gauges in all new cars and see if consumers develop some insight into their own driving behavior!

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