Consumer loyalty to electricity suppliers. Factors affecting consumer behaviour

Bachelor Thesis , 2016 , 91 Pages

Business economics - Offline Marketing and Online Marketing

This study was conducted to investigate consumer behaviour and attitudes in relation to remaining with or switching electricity supplier. Secondary research in the form of a literature review examines the history, development and understanding of the factors which affect consumer behaviour in general. Primary research explores consumer behaviour, attitudes and understanding in relation to electricity suppliers.

Primary research was conducted in two phases. Phase one involved 100 consumer surveys using an online distribution method. Phase two involved conducting fifteen interviews with local household electricity consumers. This investigation found that the main decision to remain with or switch electricity supplier came down to cost. Trust in electrical supplier’s claims was shown to have an effect on choice. Recommendations by family, friends and colleagues also had an impact. The main influences found included switching, combination supply deals, environmental considerations and payment methods etc. Furthermore the research has shown that there is high potential for the electricity supply industry to improve marketing associated with switching and should include information on regulations and responsibilities.

The research included in this paper may be of interest to consumer behaviour analysts, marketing professionals, electricity suppliers, marketers of the electrical supply industry and researchers in this topic area.

This dissertation has investigated the factors effecting consumer behaviour particularly in the area of electricity supplier choice.

Inhaltsverzeichnis (Table of Contents)

• Chapter 1: Introduction
  • 1.1 Introduction.
  • 1.2 Rationale.
  • 1.3 Research Question.
• Chapter 2: Literature Review
  • 2.1 Introduction.
  • 2.2 What is Consumer Behaviour?
  • 2.3 Basic Needs
  • 2.4 Decision Making Process
  • 2.5 Factors that influence consumer behaviour.
    • 2.5.1 Culture.
    • 2.5.2 Social Factors.
    • 2.5.3 Personal Factors
    • 2.5.4 Psychological Factors
    • 2.5.5 Motivation
    • 2.5.6 Perception
    • 2.5.7 Stages of Perception
    • 2.5.8 Beliefs and Attitudes
  • 2.6 Loyalty as a Factor.
    • 2.6.1 The Aaker model
    • 2.6.2 The Aaker model Categories
  • 2.7 Switching
    • 2.7.1 Reasons for switching supplier.
    • 2.7.2 Reasons for not switching supplier.
    • 2.7.3 Domestic electricity structure in Ireland
    • 2.7.4 Electricity Transmission and Generation Map
• Chapter 3: Methodology_
  • 3.1 Introduction.
  • 3.2 Qualitative Research
    • 3.2.1 Face to face interviews
    • 3.2.2 Focus Groups
    • 3.2.3 Online Questionnaires or surveys
  • 3.3 Quantitative Research
    • 3.3.1 Casual-comparative Research
    • 3.3.2 Correlational Research
  • 3.4 Research Approach
  • 3.5 Research Phases.
    • 3.5.1 Quantitative Method.
    • 3.5.2 Qualitative Method.
  • 3.6 Sampling.
  • 3.7 Data Analysis.
    • 3.7.1 Response Rate.
  • 3.8 Ethics.
• Chapter 4: Findings and Analysis
  • 4.1 Introduction.
    • 4.1.1 Results.
  • 4.2 Phase One
    • 4.2.1 Demographic Details
    • 4.2.2 Age and Gender_
    • 4.2.3 Marital Status and Dependents
    • 4.2.4 Employment Status
    • 4.2.5 Household Income Status
    • 4.2.6 Residential Status
    • 4.2.7 Responsibility for payment of electricity bill
    • 4.2.8 Switching behaviour
    • 4.2.9 Current Electricity Supplier
    • 4.2.10 Knowledge of Switching
    • 4.2.11 Ease of Switching
    • 4.2.12 Switching Choice.
    • 4.2.13 Contact by Suppliers
    • 4.2.14 Switching Comparisons
    • 4.2.15 Consumers understanding of the electricity market.
    • 4.2.16 Awareness of Existing Suppliers
    • 4.2.17 Understanding Roles
    • 4.2.18 Decision making process.
    • 4.2.19 Choosing a Supplier_
    • 4.2.20 Choosing a Supplier based on Payment Methods
    • 4.2.21 Factors that influence consumer behaviour.
    • 4.2.22 Type of Spender
    • 4.2.24 Consumer Satisfaction with Suppliers
    • 4.2.23 Post purchase evaluation.
  • 4.3 Phase Two
    • 4.3.1 Demographic Details
    • 4.3.2 Switching behaviour
    • 4.3.3 Current Supplier
    • 4.3.4 Satisfaction with current supplier.
    • 4.3.5 Switching
    • 4.3.6 Contact by suppliers. (Effects on switching choice).
    • 4.3.7 Decision making process.
    • 4.3.8 Factors to consider when choosing a supplier.
    • 4.3.9 Choosing a supplier.
    • 4.3.10 Choosing a Supplier based on Payment Methods
    • 4.3.11 Comparing Suppliers
    • 4.3.12 Consumers understanding of the electricity market.
    • 4.3.13 Understanding Roles
    • 4.3.14 Factors that influence consumer behaviour.
    • 4.3.15 Type of Spender

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This research aims to investigate consumer behaviour and attitudes towards remaining with or switching electricity suppliers in Ireland. It delves into the factors that influence consumer decisions in this sector.

• Understanding the decision-making process of consumers when choosing an electricity supplier.
• Identifying the key factors that influence consumer behaviour in the Irish domestic electricity market.
• Examining the role of trust, price, and recommendations in consumer choices.
• Analyzing the impact of switching behavior, combination supply deals, and environmental considerations on consumer preferences.
• Exploring the potential for improvement in marketing strategies related to switching and consumer awareness of regulations and responsibilities within the electricity supply industry.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 introduces the research topic, outlining its rationale and the research question. Chapter 2 provides a comprehensive literature review, defining consumer behaviour and exploring the factors that influence it, including culture, social, personal, and psychological factors. It also examines loyalty and switching behavior in the context of electricity suppliers.

Chapter 3 details the methodology employed in the research, including both qualitative and quantitative approaches. It discusses the research phases, sampling methods, and data analysis techniques. Chapter 4 presents the findings and analysis of the research, examining the demographic details of participants, their switching behavior, and the factors influencing their decision-making process.

Schlüsselwörter (Keywords)

This research focuses on consumer behaviour, electricity suppliers, switching behaviour, decision-making process, trust, price, recommendations, marketing strategies, regulations, and responsibilities within the Irish domestic electricity market.

• Course: Bachelor of Business in Management Applications
• Author: Robert McGuffin (Author)
• Publication Year: 2016
• Pages: 91
• Catalog Number: V335490
• ISBN (eBook): 9783668290358
• ISBN (Book): 9783668290365
• Language: English
• Tags: consumer, factors