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

Janez Dolšak, Nevenka Hrovatin and Jelena Zorić
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Janez Dolšak: School of Economics and Business, University of Ljubljana, 1000 Ljubljana, Slovenia
Nevenka Hrovatin: School of Economics and Business, University of Ljubljana, 1000 Ljubljana, Slovenia
Jelena Zorić: School of Economics and Business, University of Ljubljana, 1000 Ljubljana, Slovenia

Sustainability, 2020, vol. 12, issue 23, 1-19

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.

Keywords: energy efficiency; residential energy market; consumer preference heterogeneity (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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