Preferences for service bundles in the energy sector – a survey of German private households

Abstract

PurposeThe purpose of this study is to examine private households’ preferences for service bundles in the German energy market.Design/methodology/approachThis investigation is based on survey data collected from 3,663 customers of seven mainly municipal energy suppliers in the German energy market. The data set was analyzed via a binary logistic regression model to identify the most prospective customers and their preferences regarding bundles of energy services.FindingsThe results indicate that potential adopters of energy-related service bundles have greater prior knowledge about service bundles; place higher importance on simplified handling, flat rates and long price guarantees; prefer to purchase a service bundle from an energy supplier; live in urban areas and have a gas tariff; are both less likely to have a green electricity tariff and to support the German energy transition; have a greater intention to purchase a smart home product; are less likely to already be prosumers; and prefer customer centers and social media as communication channels with energy providers.Practical implicationsThis paper offers several implications for decision-makers in developing marketing strategies for bundled offerings in a highly competitive energy market.Originality/valueThis paper contributes to the sparse research on service bundles in the energy sector, despite the growing interest of energy suppliers and consumers in this topic. It expands the research focusing on the telecommunications sector.