Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
Executive Summary
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- The market
- Weak housing market holds down washer and dryer sales
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- Figure 1: Total U.S. sales of washers and dryers fan chart forecast with best- and worst-case scenarios, 2006-16
- Washers outpace dryers by a small margin
- High-efficiency washers gain amid declining overall category sales
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- Figure 2: Total U.S. sales of washers and dryers, by segment, 2009 and 2011
- Market factors
- Declining homeownership rates
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- Figure 3: Homeownership rate*, 2007-12
- Declines particularly sharp among younger adults
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- Figure 4: Q1 homeownership rate*, by age of head of household, 2006-12
- Housing market shows glimmers of hope in 2012
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- Figure 5: Sales of existing and new single-family homes, 2007-12
- Retail channels
- Home centers only channel to gain share
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- Figure 6: Retail channel share of U.S. sales washers and dryers, 2009 and 2011
- The consumer
- Washer and dryer ownership widespread
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- Figure 7: Washer and dryer ownership, by household income, March 2012
- Single-machine purchases on the rise
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- Figure 8: When washer/dryer acquired, March 2012
- Replacing broken down machine most common reason for purchase
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- Figure 9: Main reason for most recent purchase, by when washer/dryer acquired, March 2012
- Reliability is a nearly universal purchase consideration
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- Figure 10: Importance of product attributes, very important, March 2012
- Interest in energy and water efficiency nearly universal
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- Figure 11: Interest in special features for a new washer/dryer, March 2012
- Recent purchasers consult a wider variety of sources
- Even as online shopping grows, in-store experience as important as ever
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- Figure 12: Information sources used in most recent purchase and found very helpful, most recent purchase in past two years, March 2012
- What we think
Issues in the Market
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- Is the market in line with longer-term shifts in the housing market?
- How important is energy efficiency to washing machine shoppers?
- A secondary motivation in the decision to purchase in the first place
- Important in deciding what to buy, but increasingly becoming an expectation
- Less critical in day-to-day use
- How important is reliability to washer and dryer shoppers?
Insights and Opportunities
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- Taking ownership of reliability
- Branding opportunity
- Could a rebounding renovation market spur washer and dryer sales?
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- Figure 13: BuildFax Remodeling Index, seasonally adjusted rate, 2008-12
- The human element
Inspire Insights
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- Inspire Trend—Make it Mine
- Minimize Me
Market Size and Forecast
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- Key points
- Weak housing market holds down washer and dryer sales
- Replacement sales have become more important to market
- Price increases have modest impact on 2011 sales
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- Figure 14: Total U.S. sales of washers and dryers, at current prices, 2006-16
- Figure 15: Total U.S. sales of washers and dryers, at inflation-adjusted prices, 2006-16
- Figure 16: Manufacturers’ shipments of laundry appliances, by segment, 2007-11
- Fan chart forecast of washer and dryer sales
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- Figure 17: Total U.S. sales of washers and dryers fan chart forecast with best- and worst-case scenarios, 2006-16
Market Drivers
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- Key points
- Washers and dryers and the housing market
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- Figure 18: Ownership and past 12 month purchase of washers and dryers, by homeownership status, October 2010 - November 2011
- Overall homeownership continues to trend down
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- Figure 19: Homeownership rate*, 2007-12
- Decline in homeownership particularly sharp among younger adults
- Millennials moving away from homeownership?
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- Figure 20: First quarter homeownership rate*, by age of head of household, 2006-12
- Housing market weakness extends through 2011
- Glimmers of improvement in early 2012
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- Figure 21: Sales of existing and new single-family homes, 2007-11
- After years of declines, median household income began to stabilize in 2011
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- Figure 22: Median household income in inflation-adjusted dollars, 2000-10
- After wavering, consumer sentiment on the upswing
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- Figure 23: Thompson Reuters/University of Michigan’s index of consumer sentiment (ICS), 2007-12
Competitive Context
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- Key points
- Laundromats attract renters
- Dry cleaners offer service
- Rising Tide?
Segment Performance
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- Key points
- Washers outpace dryers by a small margin
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- Figure 24: Total U.S. sales of washers and dryers, by segment, 2006-16
- Figure 25: Total U.S. sales of washers and dryers, by segment, 2009 and 2011
Segment Performance—Washers
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- Key points
- High-efficiency washers gain amid declining overall category sales
- With new DOE mandate, communicating performance and convenience will be key
- As high efficiency becomes the norm, other factors will be more important as differentiators
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- Figure 26: Total U.S. sales of washers, at current prices, 2006-16
Segment Performance—Dryers
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- Key points
- Dryer sales performance lags that of washing machines
- Energy efficiency harder to come by in dryers, but marketers still look for an edge
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- Figure 27: Total U.S. sales of dryers, at current prices, 2006-16
Retail Channels
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- Key points
- Home centers only channel to gain share
- A variety of other retailers compete
- Walmart tests major appliance program
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- Figure 28: U.S. sales of washers and dryers, by retail channel, 2009 and 2011
- Handful of big retailers dominate major appliance market
- Sears stays on top but loses major appliance share
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- Figure 29: Sales of major appliances* at top 100 retailers, 2009 and 2010
Retail Channels—Appliance Specialty Stores
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- Key points
- Specialty stores face weak demand and price pressure from bigger players
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- Figure 30: Total U.S. sales of washers and dryers in appliance specialty stores, 2006-16
Retail Channels—Home Centers
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- Key points
- Lowe’s leads home centers in major appliances
- Low prices, store traffic, renovation trend position home centers for further gains
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- Figure 31: Total U.S. sales of washers and dryers in home centers, 2006-11
Retail Channels—Department Stores
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- Key points
- Sears marketing addresses threat in major appliances from home centers
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- Figure 32: Total U.S. sales of washers and dryers in department stores, 2006-11
Leading Companies
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- Whirlpool Corporation (Whirlpool, Maytag, Amana)
- General Electric (GE)
- Electrolux (Electrolux and Frigidaire)
- LG Electronics
Innovation and Innovators
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- Key points
- Energy efficiency becoming a common denominator
- New feature showdown continues
- Convenience and time management
- Cleaning performance
- Performance enhancements for high-efficiency operation
- Self-cleaning features address mildew issue
- Connected appliances
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- Figure 33: Samsung WF457 WiFi-enabled washer
Marketing Strategies
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- Overview
- Electrolux builds U.S. brand on convenience and ease
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- Figure 34: Electrolux “Date Night” TV ad, 2011
- Frigidaire emphasizes convenience
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- Figure 35: Frigidaire Affinity “Effortless Laundry” TV ad, 2011
- Maytag highlights cleaning performance, reinforces dependability image
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- Figure 36: Maytag “Dirty Doll” TV ad, 2011
- LG pushes innovation at the brand level
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- Figure 37: LG “Something for everyone” TV ad, 2011
- Heavy ad-spending Sears defends its turf
- Holding off home centers “cold hard facts”
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- Figure 38: Sears “Cold Hard Facts” TV ad, 2011
- Replacing a “money magnet”
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- Figure 39: Sears “Money Magnet” TV ad, 2011
- Washers and dryers online
- Most brands have small social media presence
Washer and Dryer Ownership
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- Key points
- Ownership of washers and dryers widespread
- Younger adults less likely to own, but still an important market
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- Figure 40: Washer and dryer ownership, by age, March 2012
- At higher income levels, ownership is nearly universal
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- Figure 41: Washer and dryer ownership, by household income, March 2012
When Washer/Dryer Acquired and Type Purchased
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- Key points
- One in four owners bought washer and/or dryer in past two years
- Single-machine purchases on the rise
- Better together: complementary benefits could bolster dual purchases
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- Figure 42: When washer/dryer acquired, March 2012
- Younger owners more likely to have purchased recently
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- Figure 43: When washer/dryer acquired – Nets, by age, March 2012
- Recent purchasers report having purchased high-efficiency machines
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- Figure 44: Type of washer/dryer purchased in past two years, March 2012
Main Reason for Most Recent Purchase
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- Key points
- Replacing broken down machines most common reason for replacement
- First-time purchase and conservation more common among younger purchasers
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- Figure 45: Main reason for most recent purchase, by age, March 2012
- Income appears to have little impact on purchase motivation
- Accelerating the purchase cycle means stressing new benefits
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- Figure 46: Main reason for most recent purchase, by household income, March 2012
- Water and energy efficiency rising in importance as purchase motivators
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- Figure 47: Main reason for most recent purchase, by when washer/dryer acquired, March 2012
Importance of Product Attributes
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- Key points
- A wide variety of factors drive choice
- Interest in reliability is a common denominator
- Price and energy efficiency also important attributes
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- Figure 48: Importance of product attributes, March 2012
- Women more likely to rate factors very important
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- Figure 49: Importance of product attributes, by gender, March 2012
- Older consumers rate a wider range of attributes very important
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- Figure 50: Importance of product attributes, by age, March 2012
Interest in Special Features
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- Key points
- Interest in energy and water efficiency nearly universal
- New performance benefits draw interest, could help motivate trade-up
- Some new tech features less likely to command a price premium
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- Figure 51: Interest in special features for a new washer/dryer, March 2012
- Women somewhat less likely than men to be interested in many special features
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- Figure 52: Interest in special features for a new washer/dryer, by gender, March 2012
- Younger adults willing to pay more for special features
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- Figure 53: Interest in special features for a new washer/dryer, by age, March 2012
- Dry cleaning and wrinkle reduction of interest to high-income consumers
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- Figure 54: Interest in special features for a new washer/dryer, by household income, March 2012
- Bigger households interested in broader array of features
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- Figure 55: Interest in special features for a new washer/dryer, by household size, March 2012
Where Purchased
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- Key points
- Sears holds top position but loses share to home centers
- Home appliance stores lose washer and dryer shoppers
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- Figure 56: Where most recent purchase made, by when washer dryer was purchased, March 2012
- Sears still leads in all age groups
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- Figure 57: Where most recent purchase made, by age, March 2012
Purchase Behaviors and Attitudes
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- Key points
- Recent purchasers likely to initiate shopping with online research
- Few recent purchasers report “showrooming” or checking prices via mobile devices
- About one in 10 participated in rebates in past two years
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- Figure 58: Purchase behaviors and attitudes, by washer dryer ownership, March 2012
Information Sources
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- Key points
- Recent purchasers consulted a wider variety of sources
- More sources, more information to research
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- Figure 59: Information sources used in most recent purchase, most recent purchase in past two years, March 2012
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- Figure 60: Information sources used in most recent purchase, most recent purchase two years ago or more, March 2012
- Younger purchasers consult a wider variety of information sources
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- Figure 61: Information sources used in most recent purchase, by age, March 2012
Attitudes Toward Doing Laundry
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- Key points
- Exploring the laundry room mindset
- Laundry products seen as more essential to laundry success than appliances
- Water and energy efficiency are important, but clean, dry clothes are the bottom line
- Personal control more appealing than auto-everything
- Laundry seen as a chore, but ultimately an emotionally satisfying one
- Can this be love?
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- Figure 62: Attitudes toward doing laundry, March 2012
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- Figure 63: Attitudes toward doing laundry, by gender, March 2012
- Bigger households more deeply rooted in most laundry behaviors
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- Figure 64: Attitudes toward doing laundry, by household size, March 2012
Impact of Race/Hispanic Origin
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- Key points
- Blacks more likely to be making first-time purchases
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- Figure 65: Main reason for most recent purchase, by race/Hispanic origin, March 2012
- Blacks rate wide variety of product attributes very important
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- Figure 66: Importance of product attributes, by race/Hispanic origin, March 2012
- On the whole, non-whites interested in a wider variety of features
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- Figure 67: Interest in special features for a new washer/dryer, by race/Hispanic origin, March 2012
- Blacks look to websites, salespeople, Hispanics rely on variety of sources
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- Figure 68: Information sources used in most recent purchase, by race/Hispanic origin, March 2012
- Black, Hispanic appliance owners especially involved in laundry process
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- Figure 69: Attitudes toward doing laundry, by race/Hispanic origin, March 2012
Cluster Analysis
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- Family Fabric Caregivers
- Demographics
- Characteristics
- Opportunity
- Demanding Experts
- Demographics
- Characteristics
- Opportunity
- No-nonsense Cleaners
- Demographics
- Characteristics
- Opportunity
- Disengaged Washers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristic tables
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- Figure 70: Target groups, March 2012
- Figure 71: When washer/dryer acquired – Nets, by target groups, March 2012
- Figure 72: Type of washer/dryer purchased in past two years, by target groups, March 2012
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- Figure 73: Main reason for most recent purchase, by target groups, March 2012
- Figure 74: Importance of product attributes, by target groups, March 2012
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- Figure 75: Interest in special features for a new washer/dryer, by target groups, March 2012
- Figure 76: Purchase behaviors and attitudes, by target groups, March 2012
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- Figure 77: Information sources used in most recent purchase, by target groups, March 2012
- Figure 78: Information sources used in most recent purchase, by target groups, March 2012
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- Figure 79: Attitudes toward doing laundry, by target groups, March 2012
- Cluster demographic tables
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- Figure 80: Target groups, by demographic, March 2012
- Cluster methodology
Custom Consumer Groups
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- Men and women, with and without kids
- Moms focus on laundry load management features
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- Figure 81: Importance of product attributes, by gender and presence of children in household, March 2012
- Dads express willingness to pay more for many special features
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- Figure 82: Interest in special features for a new washer/dryer, by gender and presence of children in household, March 2012
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- Figure 83: Purchase behaviors and attitudes, by gender and presence of children in household, March 2012
Appendix: Other Useful Consumer Tables
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- Washer and dryer ownership
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- Figure 84: Washer and dryer ownership, by household size, March 2012
- When washer/dryer acquired
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- Figure 85: When washer/dryer acquired – Nets, by household income, March 2012
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- Figure 86: When washer/dryer acquired – Nets, by household size, March 2012
- Type bought
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- Figure 87: Type of washer/dryer purchased in past two years, by age, March 2012
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- Figure 88: Type of washer/dryer purchased in past two years, by household income, March 2012
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- Figure 89: Type of washer/dryer purchased in past two years, by household size, March 2012
- Main reason for most recent purchase
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- Figure 90: Main reason for most recent purchase, by household size, March 2012
- Importance of product attributes
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- Figure 91: Interest in product attributes, by household income, March 2012
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- Figure 92: Importance of product attributes, by household size, March 2012
- Where purchased
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- Figure 93: Where most recent purchase made, by household income, March 2012
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- Figure 94: Where most recent purchase made, by household size, March 2012
- Purchase behaviors and attitudes
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- Figure 95: Purchase behaviors and attitudes, by gender, March 2012
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- Figure 96: Purchase behaviors and attitudes, by age, March 2012
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- Figure 97: Purchase behaviors and attitudes, by household income, March 2012
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- Figure 98: Purchase behaviors and attitudes, by household size, March 2012
- Information sources
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- Figure 99: Information sources used in most recent purchase, most recent purchase in past two years, by age, March 2012
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- Figure 100: Information sources used in most recent purchase, most recent purchase in past two years, by household income, March 2012
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- Figure 101: Information sources used in most recent purchase, most recent purchase in past two years, by household size, March 2012
- Laundry attitudes
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- Figure 102: Attitudes toward doing laundry, by age, March 2012
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- Figure 103: Attitudes toward doing laundry, by household income, March 2012
Appendix: Trade Associations
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