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A look at residential consumers

August 18, 2016 By    

The Propane Education & Research Council’s Residential Opportunity Insights reports divide consumers into nine demographic categories, which are described below. Entry Level, Simple Life and Transitional ranked highest among people likely to purchase a home with propane or propane retrofits.

Entry Level. This group is a strong target for propane replacement due to its typical distance from pipelines and its desire to own energy-efficient appliances.

Simple Life.
A top target for propane replacement projects due to typical distance from pipelines and elevated income levels, the Simple Life category represents the second-largest group of households in the United States.

Transitional. This group boasts the highest index scores for propane replacement, in terms of desire, but have a lower income index than most other groups.

Active Adult Elite. This demographic is traditionally close to urban areas with easy access to natural gas, so it’s not an ideal target for propane retailers. These are the wealthiest of the active adult households, and many people in this category have had grandchildren born in the last 12 months.

Active Adult Entry Level. This demographic usually has fixed incomes, so it’s not an ideal group to target.

Active Adult Feature and Location. These are well-educated, middle- to upper-class adults approaching (or in) retirement. These are not ideal targets for propane retailers due to their general proximity to urban cores with easy access to natural gas.

Elite. These consumers are affluent families and older couples with high-end tastes, representing 8 percent of the households in the United States. Elite members tend to live in urban or suburban areas with easy access to natural gas.

Family Life. These consumers are traditional middle- to upper-class families who tend to live in areas with access to natural gas. They average two children per household and 88 percent are married.

Feature and Location. These consumers are young professionals concentrated in urban areas. These consumers typically have easy access to natural gas, so they do not serve as an ideal target for propane retailers. They value location and amenities over size and space.

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About the Author:

Megan Smalley was an associate editor at LP Gas magazine.

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