Analysing Consumer Preferences, Characteristics, and Behaviour to Identify Energy-Efficient Consumers

Janez Dolšak,Nevenka Hrovatin,Jelena Zorić

doi:10.3390/su12239870

Abstract

This paper investigates preference heterogeneity among Slovenian energy consumers and attempts to ascertain how different consumer groups value various attributes of energy products and services. More specifically, it aims to establish whether a consumer segment can be identified that shows a preference for additional energy services—in particular services, associated with energy-efficient and green behaviour. A latent class analysis is employed to classify consumers on the basis of their preferences for energy services. Additionally, information about their attitudes and behaviour toward green energy and energy efficiency, energy consumption, and usage of energy services together with socio-economic characteristics is used in the latent class regression to explain differences between latent consumer classes. Three classes are identified: the largest class of regular consumers, energy-efficient consumers, and dissatisfied consumers. In contrast to regular and dissatisfied consumers, energy-efficient consumers show a significantly higher interest in additional services, energy efficiency, and green energy. In line with the found heterogeneity of consumer preferences, suppliers should customise marketing strategies to meet the needs of specific segments. Energy policymakers also need to pay more attention to consumer heterogeneity and behavioural changes to increase the effectiveness of energy efficiency policies.

Highlights

Energy markets are undergoing a major transition, mainly driven by new market strategies aimed at increased consumer engagement and climate change policies [1]
The transition, starting with the deregulation of energy markets, has increased market competition but has enriched the suppliers’ offers with a variety of additional services, including green energy and energy-efficient technologies [2,3]. Energy suppliers expanded their portfolio with additional products and services, such as a combined energy supply, strengthened communication with consumers, sales, and installations of energy-efficient electrical appliances, energy-efficiency consultations, and provision of other energy-related services in order to meet the expectations of most consumer segments
In the first part of the analysis, the energy service preference items presented in Appendix C are utilised in a latent class analysis (LCA) to determine the class membership probability

Summary

Introduction

Energy markets are undergoing a major transition, mainly driven by new market strategies aimed at increased consumer engagement and climate change policies [1]. The transition, starting with the deregulation of energy markets, has increased market competition but has enriched the suppliers’ offers with a variety of additional services, including green energy and energy-efficient technologies [2,3] Energy suppliers expanded their portfolio with additional products and services, such as a combined (multi-fuel) energy supply, strengthened communication with consumers, sales, and installations of energy-efficient electrical appliances, energy-efficiency consultations, and provision of other energy-related services in order to meet the expectations of most consumer segments. Their main goal is to establish effective relationships with consumers with the intention of building long-term relationships. Consumers are free to choose an energy supplier, as well as to choose from various energy products on the basis of the price and several other factors impacting consumer preferences for a supplier offer [6]

Objectives

Methods

Results

Conclusion