Switching from LPG to electricity in Indonesia: a study in the Java Bali grid

Hilda Hilmiyati-Mas’adah, Achmad Sudiro, Fatchur Rohman, Agung Yuniarinto, Dzikri Firmansyah Hakam and Herry Nugraha

Cogent Business & Management, 2024, vol. 11, issue 1, 2298221

Abstract: Technology innovations shift toward using cleaner and more convenient prime energy and energy converter appliances. It has driven some lower-middle-income countries to switch from fossil fuels to electricity. However, Indonesians don’t feel the urgency to switch from liquified petroleum gas (LPG)-fueled cookware to electricity. This study aims to: (1) explore usefulness (USE), ease of use (EOU), and time-oriented convenience (TOC) as antecedents of functional value (FUNC), recognition value (RECV), emotional value (EMOV), and epistemic value (EPIV); (2) examine the moderating effect of conditional value (CODV) on the intention to switch cooking energy (INT). A cross-sectional study gathered 290 valid questionnaires from households in Jakarta and other provincial capitals in Java.The PLS-SEM approach was applied to examine hypotheses and analyze gender, age, and region segmentation. The results reveal the impact of both USE and TOC on FUNC, RECV, and EMOV. Moreover, EOU and TOC positively influence EPIV. The linear relationship between USE and EPIV and between RECV and INT is insignificant. However, a quadratic relationship exists. This study shows that conditional value moderates the relationship between emotional value and switching intention. Additionally, gender has an impact on the influence of EOU and TOC on EPIV, indicating the presence of heterogeneity. These findings contribute to conceptual advancement in behavior science by integrating TAM, TCV, and VAM. Furthermore, it illuminates relationships between USE, EOU, TOC, consumption values, and intention. In addition, it gives professionals in the consumer electronics industry greater confidence in developing product appeal, segmenting products, and creating persuasive promotions.In recent decades, electricity has become increasingly important as a driving force for societal economic growth and the advancement of prosperity through the enjoyment of life. Switching to electric kitchen appliances is an enormous challenge for the Indonesian government, as most people rely on LPG for cooking energy. We investigate the attractiveness of induction stoves to people using LPG with a power capacity of 1300 VA or higher in the Java-Bali grid. Specifically, we examine how usefulness, ease of use, and time-oriented convenience influence multidimensional consumption values (functional, recognition, emotional, and epistemic) and switching intentions controlled by conditional value. Practitioners are encouraged to focus more on product appeal characteristics and gender concerns when designing products and advertising strategies to increase market switching intention.

Date: 2024
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DOI: 10.1080/23311975.2023.2298221

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