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.
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
4.2.23 Post purchase evaluation.
4.2.24 Consumer Satisfaction with Suppliers
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
Chapter 5: Conclusions and Recommendations
5.1 Introduction.
5.2 Typical Consumers and Awareness Levels.
5.3 Factors that Influence a consumers decision making process.
5.4 Consumer concerns.
5.5 Research Reflections and Limitations.
5.6 Suggestions for Further Research.
Research Objectives and Themes
This study aims to investigate the factors influencing consumer behaviour regarding the decision to either remain with or switch electricity suppliers in Ireland. The research addresses the primary question of what drives consumers in their supplier choice, exploring the intersection of cost sensitivity, brand loyalty, and market understanding.
- Analysis of consumer decision-making models (EKB and Aaker model)
- Evaluation of the Irish domestic electricity market structure
- Investigation into drivers for switching versus factors for loyalty
- The impact of marketing strategies and direct consumer contact on switching behaviour
- Assessment of consumer awareness regarding market roles and responsibilities
Excerpt from the Book
2.7 Switching
As this paper is an investigation into the factors affecting a consumer’s behaviour when selecting an electricity supplier, we must also be aware that unlike most other regularly purchased items such as food, clothing, electrical appliances etc, electricity is simply a commodity which is utilised by many people in our modern society. It is not a good that can be bought off a shelf and packaged to be opened later for use by a consumer, it has no mass, no weight, no smell or taste and so cannot be treated like other products. This is however not the case in other countries such as The United States where according to (Steinkamp, 2016) “legal proceedings have been required to determine the classification of electricity as either a “good” or a “service””.
It is however, a commodity that we do not purchase on a daily basis like other tangible items such as milk or a newspaper for example. But regardless of its classification, electricity is something we utilise in every facet of our daily lives. Consumers will purchase electricity from a supplier of their choice and will usually enter into fixed term contracts for the provision of that electricity to their homes. Initially, the electricity supply connection will be provided to the consumer’s home by the ESB Networks’. It is at this point that the consumer is free to choose an electricity supplier. With the opening of the electricity market in Ireland consumers are able to switch from one supplier to another and so we must also investigate and understand the “switching” behaviour of these consumers.
Summary of Chapters
Chapter 1: Introduction: Provides an overview of the Irish retail electricity market and establishes the research question regarding factors affecting consumer switching behaviour.
Chapter 2: Literature Review: Examines consumer behaviour theories, including Maslow’s hierarchy of needs and the EKB decision-making model, to provide a theoretical foundation.
Chapter 3: Methodology: Details the mixed-method research approach, consisting of a quantitative online survey and qualitative face-to-face interviews.
Chapter 4: Findings and Analysis: Presents the primary data collected from 100 survey participants and 15 interviewees regarding their supplier preferences and switching habits.
Chapter 5: Conclusions and Recommendations: Synthesizes the findings, highlighting cost as the primary motivator for switching and suggesting areas for future research and industry marketing improvements.
Keywords
Consumer behaviour, electricity supplier, switching, brand loyalty, Irish energy market, price sensitivity, decision making process, customer satisfaction, market awareness, EKB model, Aaker model, consumer preferences, utility services, commodity, market competition.
Frequently Asked Questions
What is the primary focus of this investigation?
The research investigates the factors influencing the consumer behaviour of Irish domestic households regarding the choice to stay with or switch their electricity supplier.
What are the central themes covered in this study?
The work explores decision-making processes, factors like pricing and brand reputation, the role of social influence, and the impact of the Irish electricity market structure on consumer choices.
What is the core research question?
The study seeks to answer: "What are the factors that effect consumer behaviour with regard to switching electricity supplier?"
Which scientific methodology was employed?
The researcher used a mixed-method approach, combining quantitative data from 100 online surveys and qualitative insights from 15 face-to-face interviews.
What topics are discussed in the main body of the work?
The main sections cover literature review of consumer theories, market structure analysis, and a comprehensive analysis of survey and interview findings related to demographics, spending habits, and supplier interaction.
What are the most significant keywords for this dissertation?
Key terms include consumer behaviour, electricity supplier, switching, brand loyalty, and the Irish energy market.
How does the "Aaker model" apply to this research?
The Aaker model is used to categorize consumers based on their loyalty levels—from "Switchers" who are highly price-sensitive, to "Committed Buyers" who are deeply invested in a brand.
What is the significance of the "black box" in the stimulus-response model?
The "black box" represents the processing stage of a purchase, where individual consumer characteristics, perceptions, and internal factors determine how external stimuli translate into specific buying behaviour.
- Citation du texte
- Robert McGuffin (Auteur), 2016, Consumer loyalty to electricity suppliers. Factors affecting consumer behaviour, Munich, GRIN Verlag, https://www.grin.com/document/335490
