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  • Publication
    What makes people seal the green power deal? - Customer segmentation based on choice experiment in Germany
    Consumers have the power to contribute to creating a more sustainable future by subscribing to green electricity tariffs. In order to reach consumers 'beyond the eco-niche', identifying the drivers that positively influence the adoption of green electricity is of fundamental importance. This paper examines various factors that help to explain the extent to which green electricity subscribers differ from those that display strong preferences towards green electricity but have not yet 'walked the talk'. By making use of a latent class segmentation analysis based on choice-based conjoint data, this paper identifies three groups of potential green electricity adopters with varying degrees of preference for renewable energy. Findings indicate that socio-demographic factors play a marginal role in explaining the differences between green electricity subscribers and potential adopters, with the exception that actual adopters tend to be better educated. Analysis of psychographic and behavioral features reveals that adopters tend to perceive consumer effectiveness to be higher, place more trust in science, tend to estimate lower prices for green electricity tariffs, are willing to pay significantly more for other eco-friendly products and are more likely to have recently changed their electricity contract than non- adopters. Policy recommendations associated with these findings are provided.
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    Scopus© Citations 104
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  • Publication
    Preferences for green electricity and eco-labels: empirical results from a market segmentation analysis in Germany
    Consumers have the power to contribute to a more sustainable future by subscribing to green electricity tariffs. In order to reach consumers "beyond the eco-niche" and to develop targeted messaging, exploring the drivers that positively influence the adoption of green electricity is of fundamental importance. The research described in this paper examined various factors that help to explain the extent to which subscribers to green electricity tariffs ('Adopters') differ from potential adopters. By making use of a latent class segmentation analysis based on choice-based conjoint data the research identified three segments into which potential green electricity adopters can be classified. Findings indicate a marginal role for socio-demographic factors, although Adopters tend to be more highly educated than non-adopters. Additionally, psychographic features of Adopters tend to include a higher level of climate concern, greater expectations about consumer effectiveness and a tendency to envisage lower prices for future green tariffs. These findings highlight the importance of providing information to the customer about the value and benefits of green electricity. Policy recommendations associated with these findings are provided.