Communication and Household Adoption of Heating Products in Hungary

Noemi Munkacsi,Krushna Mahapatra

doi:10.3390/en12020305

Abstract

Existing studies of heating products have analyzed the adoption of energy-efficient heating technologies from diverse micro and macroeconomic aspects, such as diffusion of innovation, willingness to pay, business models, energy pricing, etc., but the analysis from a marketing management approach based on end customer insight is still lacking. Understanding the decision-making process of end customers, and the influence of social environment at the diverse stages of the purchase process leads to a focused market strategy, thereby contributes toward overcoming the multi-level segmentation challenge faced by the manufacturers of heating products. In this context, a two-step exploratory research was conducted in December 2013 with end customers of the residential heat market in Hungary. The end customers were found to be active decision-makers engaged in deliberate planning in the purchase of heating products. They start searching for information by turning mainly to online information sources and they actively integrate their social network in all stages of the decision-making process, which means that the role of the installer is relatively less influential along the whole purchasing process. Identified influencing communication channels at the diverse stages of the purchase process may support manufacturers to develop a user-centric marketing strategy by optimizing the communication instruments in their marketing mix by, for instance, including direct end customer communication via online channels and by de-emphasizing offline communication channels.

Highlights

The market environment of space heating appliances is complex due to the varying customer segments and their needs
Respondents of the focus group interviews all own a house or flat and made the purchase decision on their own, which means that all respondents were active decision-makers in the purchase process instead of, for example, assigning an installer to purchase and install any kind of heating product that fits the budget
At the information validation and the final decision stages, more than the half of end customers relied on their social environment than the installers

Summary

Introduction

The market environment of space heating appliances (hereafter heat market) is complex due to the varying customer segments and their needs. “The heat market refers to the part of the heating, ventilation, and air conditioning (HVAC) market, where manufacturers produce and sell heating technology to customers to ensure indoor temperature and warm water comfort. This paper refers to the residential heat market, where heating products (heat generator appliances or boilers) are sold to single-family households. The varying purchase behavior of the end customers; the influence of installers and other professionals; the interest of manufacturers and trade partners; and diverse governmental, political, and legal measures regarding energy efficiency lead to a heterogeneous market operation. Due to the technical complexities of the heating products and the compulsory governmental regulations, installers and other professionals (e.g., retailers, planners, architects, energy consultants, etc.) play an intermediary role in the end customers’ purchase process.

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