Consumer Behaviour in Renewable Electricity628424/... · 2013-06-13 · Abstract: A higher...

Examensarbete i Hållbar Utveckling 138

Consumer Behaviour in Renewable Electricity

Can identity signaling increase demand for renewable electricity?


Raphael Hanimann

Raphael Hanimann

Uppsala University, Department of Earth SciencesMaster Thesis E, in Sustainable Development, 30 creditsPrinted at Department of Earth Sciences,Geotryckeriet, Uppsala University, Uppsala, 2013.

Master’s ThesisE, 30 credits


Supervisor: Johan Vinterbäck Evaluator: Cecilia Mark-Herbert

Examensarbete i Hållbar Utveckling 138



Raphael Hanimann

Content 1 Introduction ................................................................................................................................................. 1

2 Goal and objectives ...................................................................................................................................... 4

3 Background .................................................................................................................................................. 5 3.1 Research within renewable electricity marketing .................................................................................. 5 3.2 The Swedish (renewable) electricity market ......................................................................................... 5

3.2.1 Development since the liberalization 1996 ................................................................................... 5 3.2.2 Supply sided characteristics: Green alternatives widely offered .................................................. 6 3.2.3 Demand sided characteristics: Low involvement ......................................................................... 6 3.2.4 Market potential ............................................................................................................................ 7

3.3 The interest-action gap for renewable electricity consumption in Sweden ........................................... 7 3.4 Experience from other green products: The Toyota Prius ..................................................................... 8

4 Theoretical framework................................................................................................................................ 9 4.1 Identity signaling ................................................................................................................................... 9 4.2 The role of self-identity in consumer behaviour theory ......................................................................... 9

4.2.1 The theories of ‘Reasoned Action’ and of ‘Planned Behaviour’ ................................................... 9 4.2.2 TRA and TBA in consumer behaviour research ............................................................................ 9 4.2.3 The role of identity signaling within consumer behaviour research ........................................... 10 4.2.4 Market-based consumer behaviour research on identity signaling ............................................ 10 4.2.5 Overview of theoretical framework............................................................................................. 11

4.3 Enabling the impact of identity signaling ............................................................................................ 11 4.3.1 The moderating role of public versus private consumption (visibility) ....................................... 12 4.3.2 The moderating role of product involvement .............................................................................. 12

4.4 Conceptual framework and research question ..................................................................................... 13 4.5 Relevance of research question ........................................................................................................... 13

5 What Values does renewable electricity consumption signal?............................................................... 15

6 Scope and delimitations............................................................................................................................. 16 6.1 Other influences on consumer choices ................................................................................................ 16

6.1.1 Product characteristics ............................................................................................................... 16 6.1.2 Reference groups ........................................................................................................................ 16

6.2 Market-related delimitations ................................................................................................................ 16 6.2.1 Characteristics of a young market .............................................................................................. 16 6.2.2 Complexity of electricity markets ................................................................................................ 16

6.3 Generalization of identity signaling ..................................................................................................... 17 6.4 Survey related delimitations ................................................................................................................ 17

6.4.1 Unrealistically high price premiums........................................................................................... 17 6.4.2 Implications of an unprobability sample .................................................................................... 17

6.4.3 Involvement in survey implies an above average interest in electricity ...................................... 17

7 Research methodology .............................................................................................................................. 18 7.1 Approach ............................................................................................................................................. 18 7.2 Method ................................................................................................................................................. 18

7.2.1 Unit of analysis ........................................................................................................................... 18 7.2.2 Data gathering ............................................................................................................................ 18 7.2.3 What kind of analysis is possible ................................................................................................ 21

8 Results from the preliminary survey ....................................................................................................... 22 8.1 Survey statistics: Limited relevance of company size ......................................................................... 22 8.2 Little experience with symbols for identity signaling .......................................................................... 23 8.3 Relevance of identity signaling for electricity suppliers in Sweden .................................................... 23

9 Results from the main questionnaire ....................................................................................................... 25 9.1 Survey statistics ................................................................................................................................... 25 9.2 Choice of electricity contract ............................................................................................................... 25 9.3 Limited desire for a visible symbol ..................................................................................................... 28 9.4 Few differences between more involved and average households ...................................................... 29 9.5 Strong influence of trust in renewable electricity schemes.................................................................. 29

10 Discussion ................................................................................................................................................... 31 10.1 Crucial factors for a successful enabling of identity signaling ............................................................ 31 10.2 Insights for policy makers ................................................................................................................... 32 10.3 Insights for marketers of renewable electricity .................................................................................... 32 10.4 Matters for future research .................................................................................................................. 33

11 Conclusions ................................................................................................................................................ 34

Acknowledgements.............................................................................................................................................. 35

References ............................................................................................................................................................ 36

Appendix I – Statistical Evidence ...................................................................................................................... 39

Appendix II – Preliminary Survey .................................................................................................................... 43

Appendix III – Survey: Control Scenario ......................................................................................................... 47

Appendix IV – Survey: Symbol Scenario A ...................................................................................................... 50

Appendix V – Survey: Symbol Scenario B ........................................................................................................ 53


RAPHAEL HANIMANN

Hanimann, R., 2013: Consumer Behaviour in Renewable Electricity. Master thesis in Sustainable Development at Uppsala University, No. 138, 55 pp, 30 ECTS/hp

Abstract: A higher percentage of energy from renewable resources is an important goal on many sustainable development agendas. In liberalized electricity markets, an increase in demand for renewable electricity can stimulate further investments in it, yet demand for renewable electricity has developed much slower than demand for other green products. So far, research has mainly examined the willingness to pay for renewable electricity, but limited research has been conducted to the motivations behind it. The concept of identity signaling has been proved to play a significant role in consumer behaviour for green products. However, (renewable) electricity in the Swedish residential market typically lacks two important drivers for idenity signaling: visibility and product involvement. A survey among Swedish households conducted for this study compares choices for renewable electricity under two scenarios, whereof one simulates a higher visibility of and involvement in electricity contracts. The results show that identity signaling has a positive effect on demand for renewable electricity. The results lead to implications for policy-makers, electricity suppliers and researchers.

Keywords: Renewable Electricity, Identity Signaling, Consumer Behaviour, Sustainable Development, Marketing

Raphael Hanimann, Department of Earth Sciences, Uppsala University, Villavägen 16, SE-752 36 Uppsala, Sweden


RAPHAEL HANIMANN

Hanimann, R., 2013: Consumer Behaviour in Renewable Electricity. Master thesis in Sustainable Development at Uppsala University, No. 138, 55 pp, 30 ECTS/hp

Summary: Energy production is one of the biggest contributor to man-made climate change and has severe environmental impacts. Sustainable development goals most often include plans to reduce the environmental impact of energy production by increasing the use of renewable energy. In Sweden the electricity market is liberalized between 1996, and since that year consumers can choose to purchase renewable electricity. According to market dynamics, a significant increase in demand for renewable electricity would nudge suppliers towards more investments in renewable electricity production capacities.

Green consumerism experiences constant growth in Sweden as in other European countries, however, demand for renewable electricity develops much slower. So far, there has been considerable research about the willingness to pay for renewble electricity. Consistently it was found that people in general are willing to pay a surplus for renewable electricity. Nevertheless, there has been only limited reasearch behind the motivation to pay extra and on consumer behaviour for electricity in particular. The concept of identity signaling has a significant influence on consumer choices. Identity signaling suggests that consumers choose products not solely in accordance of their utility, but a product or brand should also match the purchasers own values and its identity. Identity signaling has particularly been proven to motivate green consumerism. However, visibility of the products or the act of consumption and the involvement of the consumer in a certain product category are important drivers behind identity signaling. Both are lacking in the Swedish renewable electricity market. This study uses a survey to examine if a higher visibility of each households electricity contract and a higher involvement of the Swedish society with the subject electricity could enable identity signaling. A group of respondents received a survey where we simulated a higher visibility and more involvement, another group answered the survey under normal circumstances. The results show that respondents that answered under the scenario with a simulated higher visibility and increased involvement chose more often renewable electricity. Thus, identity signaling has a positive effect on the demand for renewable electricity. This yields implications for policy-makers, electricity suppliers and furture research in this field. Keywords: Renewable Electricity, Identity Signaling, Consumer Behaviour, Sustainable Development, Marketing

Raphael Hanimann, Department of Earth Sciences, Uppsala University, Villavägen 16, SE-752 36 Uppsala, Sweden

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1 Introduction

Energy in the wider context of sustainable development goals

One of the biggest challenges to humanity is to transfer the lifestyle of its vastly growing societies to a sustainable one. Thus, to create societies that successfully enable humanity to comfortably live on earth and from its resources for centuries to come. The number of high-level political conferences that are devoted to finding solutions for more sustainable societies, such as those that recently took place in Copenhagen (2009), Cancun (2010), Durban (2011), Rio de Janeiro (2012) and Doha (2012) showcase the popularity and pressing importance of the issue. The difficulty to achieve effective agreements proves the intricacy involved if short-term interests ought to be tackled in order to achieve conflicting long-term sustainable solutions.

The task to develop today’s societies in a way that they can endure in the long term demands not solely conferences at the global level, but requires action all the way to very local societies. In any case, energy is one of the most pressing, yet one of the most demanding challenges to tackle: On the one hand, energy is indispensable for our societies and economies to function safely and provide nourishment, health and safety. On the other hand, it is the main contributor to man-made climate change and pollution of the earth. Hence, energy is a janus face for those thriving to achieve sustainable development in consideration of the tripple bottom line1.

Increasing importance of electricity in the Swedish energy supply

Therefore, the transformation of our current energy system towards one that is based on renewable energies is a major milestone towards various sustainability goals (Sveriges Energimål 2020, EU 2020, UN 2050), but also an eminent challenge. Electricity in particular plays a key role in that transformation. Firstly, because electricity is at the backbone of a highly IT-dependent society, such as Sweden. An immediate break-down of the electricity supply would lead to nationwide chaos, with consequences reaching internationally. With a yearly per capita consumption of 16’000 kWh Sweden’s energy supply is much more electricity reliant than the energy mixes of most other European or OECD countries (Statens energimyndighet, 2010). The useage of electricity in relation to the total energy consumption can even be expected to further grow, for instance with the increased use of personal IT-appliances or of electric vehicles for transport.

If sourced by renewable electricity, the interconnected electric grid – arguably the worlds biggest machine - can be an important part of a solution for a more sustainable, yet reliable energy system, satisfying the demands of all three pillars of the triple bottom line. To achieve this, the economic and technical structures and user behaviour need to change fundamentally to allow the integration of intermittent electricity production from renewable resources.

Influencing the liberalized electricity market requires understanding of market dynamics and consumer behaviour

A first step has been undertaken in 1996, when the Swedish electricity market was liberalized. Because of the liberalized market the end-consumers on the demand side play an increasingly important role in the development of the future electricity system, for instance if their demand for renewable electricity rises significantly.

Thus, the understanding of consumer behaviour for electricity is essential for predicting and influencing the electricity market, and a critical success factor for the development of a growing renewable electricity market in particular.

1 The tripple bottom line is a concept used by the United Nations and corporate social responsibility initiatives (Elkington, 1999) to describe the necessary inclusiveness of economic, social and environmental goals in order to achieve sustainable development. According to the triple bottom line concept, sustainability can only be achieved if economic, social and environmental goals are obtained simultaneously and at equal value.

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Concretely, the understanding of consumer behaviour within electricity is crucial for

a) policy makers who want to implement effective instruments in order to raise the consumption of electricity from renewable sources, and

b) electricity companies (former monopolies) that want to sustain and grow their customer base in a competitive market.

Identity-signaling as a concept of consumer behaviour can be used to nudge consumers to choose the green option

In order to change consumtion patterns towards more green electricity choices, behavioural changes are advantageous in the way that they are very effective but comparably inexpensive (Loock et al., 2011). Although difficult to control, behavioural changes can lead to results faster than the implementation of policy instruments which have to clear many bureaucratic and political hurdles. Behavioural changes could, thus, also shift consumer patterns towards more renewable electricity contracts.

To understand, predict and influence consumer behaviour, the concept of identity signaling, is a determinant that has to be considered. Which products we choose does not solely depend on how well they satisfy a materialistic need, but also on how we see ourselves and how we want to be seen by others. Behavioural changes have been suggested as an instrument to change consumer behaviour and nudge consumer choices towards healthier foods or towards less risky behaviour in transport (Berger & Rand, 2008). Thus, the choice of a certain product can be used to underline our identity and to signal our values and characteristics to ourselves and our peers.

Thus, consumer choices are partly used as instruments to signal a certain set of values or a desired identity. This is especially the case for products that effectively symbol a certain identity, such as traditional status symbols like fancy cars, but more often applies to green products as well. How we construct our own identity what values how to signal this to our surroundings has been subject to extensive research in the psychological and sociological disciplines and resulted in a number of definitions. To generalize, the kind of person as which we see ourselves and want to be seen by others can be described as our self-concept or self-identity, whereas idenity signaling is the act of communicating the values and characteristics of that person to others.

The self-concept or self-identity is an important driver of consumer behaviour (Paladino & Pandit, 2012) and identity signaling plays an important role for consumer choices. It has effectively been used to reduce risky health behaviours, such as binge drinking or fast food consumption in undergraduate student dormatories (Berger & Rand, 2008). But it also has proven to be an effective force to nudge consumer choices towards more environmental friendly alternatives, for example in the market for hybrid cars (see 3.4). Such examples suggest that a successful strategy to market green products, such as renewable electricity contracts, could be, to make the products visible and effective tools to symbolyze it’s purchasers progressive and green identities.

Market volumes for green products are growing

Although environmental friendly products, such as hybrid cars or the consumption of renewable electricity, are often perceived with either higher costs or less comfort, markets for green products are growing. In the cases in which this perception holds true, the disadvantages of higher costs can be compensated by other benefits, for example status or the signaling of one's identity as a progressive and environmentally friendly person (Loock et al., 2011; Leonidou et al., 2010).

Electricity from renewable resources is also a product that can be categorized as green, therefore, its market share can be expected to grow. However, so far there has only been little growth in the demand for green electricity, eventhough three quarters of Swedish households say they could seriously imagine to purchase electricity from renewable resources (see section 3.2.4).

Limited research in green electricity marketing

Yet, the significant market potential of green electricity, faces an actual low demand. On the one side this can be explained by the young age of the electricity market and the lack of experience from both, marketers of green electricity in selling their products, and consumers to understand the concept of electricity as a range of differentiated products they can actively choose from.

On the other side, only little research has been conducted on consumer behaviour or marketing strategies for electricity and green electricity in particular (Paladino & Pandit, 2012; Rundle-Thiele et al., 2008). However, a preliminary study among Swedish electricity marketers (see section 8) which was conducted as a premeasure for

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this master thesis report, proved that, on the one hand, the topic of consumer behaviour and identity signaling is perceived as relevant to electricity marketers in Sweden. On the other hand, it showed as well that there has been little experience collected since the market opened in 1996.

The strength of the effect identity signaling has on consumer behaviour depends largely on the visibility of the product category and consumer involvement. Compared to, for instance, a car, an electricity contract has a comparingly low visibility and the choice of an electricity contract usually draws comparingly less involvement. Thus, concerning electricity, the effect of identity signaling on consumer choices has always to be considered together with the currently low degree of involvement and visibility. It can be suggested that there is a potential underlying demand for renewable electricity products, but there has been a lack of consumer involvement to develop such a market. Consequently, higher consumer involvement and better visibility would be suggested to enable the effect of identity signaling on consumer choices and increase the market volumes for renewable electricity.

The goal of this report is to contribute to a wider understanding of consumer behaviour for green electricity markets. As identity signaling is understood as a potential influence on consumer choices, it is here suggested to be a potential driver for the demand for renewable energy, concretly renewable electricity. A better understanding of identity signaling in connection with electricity contracts should enable to boost demand for renewable electricity, develop successful marketing strategies and, thus, contribute to a faster development of green electricity markets and renewable energy systems.

For this report, the suggestion of using identity signaling to nudge more consumer choices towards green electricity contracts was tested by a survey among households in Sweden. We tried to examine the effect of identity signaling by an experiment with two surveys. Identical sets of questions were sent out to Swedish households, whereas the setting of the surveys were different: a group of respondents received the questions in a basic survey (control scenario), while two other groups of respondents received the questions in an enhanced setting that simulated possibilities for identity signaling (symbol scenarios).

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2 Goal and objectives

This paper examines the effect of identity signaling on the demand for electricity products, and renewable electricity products in particular. The aim is to identify strategies connected to identity signaling that could successfully change consumer behaviour and raise the degree of involvement for electricity products. The availability for customers to use electricity for identity signaling hypothetically leads to higher demand for renewable electricity products, strengthens long-term customer relationships and enables suppliers to strengthen their brands.

Hypothesis A: We suggest that the percentage of renewable electricity choices will be higher for those survey scenarios that allow identity signaling (symbol scenario A and B), than for the control scenario that does not provide possibilities for identity signaling.

H0: pcontrol ≥ psymbol px = percentage of subtractors to renewable electricity contracts for the control scenario pcontrol Ha: pcontrol < psymbol and the symbol scenarios psymbol

Hypothesis B: We suggest that there is a significant correlation between the environmental friendliness of the electricity choice and the control and symbol scenarios, respectively.

Since this project should deliver first results on the effect of identity signaling for electricity and potentially trigger further research, the significance level is chosen at α=10%.

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3 Background

3.1 Research within renewable electricity marketing

In the recent years there has been significant growth in markets for products and services that are considered as “green” or sustainable, and these markets are expected to grow further in the future (Kotchen, 2005). As a result, the field of Sustainability Marketing as a research discipline has emerged and sustainability has become an important branding topic (Belz & Peattie, 2012). Today, the simple fact of being green can create value for a brand and lead to significant marketing benefits (Porter & Linde, 1995).

However, this growth has not taken place in the renewable electricity sector, with a typical marketshare of renewable electricity2 on the total global electricity sales of about 1% in 2002 (Bird et al., 2002).

Due to – or because of – that, research within renewable electricity marketing has been limited. Most of the so far carried out research on consumer behaviour of electricity is conducted to the willingness to pay for renewable electricity (Kaenzig et al., 2013; Rowlands et al., 2003; Salmela & Varho, 2006). Generally, the price premium3 charged on renewable electricity has not proved to be the most relevant restraint for consumers (Kaenzig et al., 2013; Paladino & Pandit, 2012). Thus, the vast majority of studies conclude a willingness to pay a certain price premium for renewable electricity, while most recent results from Germany show an average willingness to pay a price premium for renewable electricity of about 16% (Kaenzig et al., 2013).

Hence, expanded research has been conducted on the willingness to pay for renewable electricity and green products, whereof a general willingness to pay price premiums for renewable electricity can be concluded.

However, little is known about what motivates people to pay a price premium for renewable electricity. Only few studies investigated the motivational reasons behind that willingness to pay (Rowlands et al., 2003), and behind the fact that despite the rather modest price premiums4, actual demand is still very low.

3.2 The Swedish (renewable) electricity market

3.2.1 Development since the liberalization 1996

For decades electricity has been a regulated utility service. Concretely, electricity was supplied by natural, vertically integrated monopolies at prices regulated by governmental energy agencies. The service was comparable with tap water, thus, a competitive market was inexistent. Followingly, consumers did not have the choice between different suppliers and services.

As of 1996 the electricity market in Sweden is liberalized and suppliers can freely enter and exit markets as consumers can choose whom to buy their electricity from. Since 1999 households could furthermore switch electricity suppliers without transition costs, so that the market reached full competition (Bird et al., 2002).

With the opening of European electricity markets coal and nuclear electricity from Poland, Germany and Denmark also became blended in the standard Swedish electricity mix (Kåberger, 2003).

2 Here, the marketshare of renewable electricity resembles the amount of electricity that is sold under contracts that guarantee an equivalent of the customers consumption to be produced from renewable resources. It does not resemble the amount of renewable electricity delivered to the grid. In Sweden, about 40% of electricity in the grid is produced by renewable resources. Thus, suppliers are only forced to build new renewable production capacities if the demand for guaranteed renewable electricity contracts reaches the already installed production capacity of about 51% (Statens energimyndighet, 2010). 3 The price premium of a product the surcharge or deduction of its selling price as compared to a market average benchmark. E.g. a sweatshirt of a certain brand might sell at a price premium of 20% as compared to the average market price of sweatshirts within the same quality category. Electricity from renewable sources are usually charged with a price premium as compared to electricity from unidentified sources. 4 The price premiums for windenergy among the three biggest Swedish suppliers range between c.a. 2-5% (Sjöström, 2012).

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Renewable electricity products have been made available to Swedish households since the opening of the market in 1996. The percentage of renewable electricity contracts varies among different studies, years and definition in use. For instance, some studies include all electricity that is sold with a RECS5 certificate while others only accont for electricity that has been sold under a more strict label, such as the “Bra miljöval” label issued by the Swedish Society for Nature Conservation6. In general are the borderlines between renewable, new renewable and green electricity not exactly clear and vary especially between declarations of different market actors.

According to Ek and Söderholm (2008), 1% of Swedish housholds purchased electricity from renewable sources in 1999; yet Kåberger (2003) writes that green electricity contracts stood for 7% of the total market in 2000, while it stood for 6% of the market share in 2002 according to Bird et al. (2002), respectively 5% in 2009 according to Flood (2009). Thus, the percentage of contracts with an active choice for renewable electricity can be expected below 10% in 2013. Moreover, most of the electricity labelled as renewable or green was not consumed by households, but by companies and institutions (Bird et al., 2002), such as the government-owned railway operator SJ (Ek & Söderholm, 2008).

3.2.2 Supply sided characteristics: Green alternatives widely offered

With the liberalization of the electricity market for residential customers in 1996 the Swedish government laid the fundamentals for a free and competitive market. On the supply side, the market regulations have been further adjusted over the years, e.g. with the ban of a general switching fee between suppliers. As of now there are no significant supply-sided barriers that would hinder the development of a competitive market dynamics.

The three major electricity suppliers are Vattenfall, E.On and Fortum. These three account for 75% of the market volume (Sjöström, 2012; Konsumentverket, 2002). However, the Swedish household can choose among more than 120 suppliers.

All three of the major suppliers offer contracts for renewable electricity, whereas the vast majority of the smaller suppliers also offers such options (Kåberger, 2003).

Since 1999 the market regulations do not allow a general switching fee between suppliers. Such a fee might only apply if consumers want to abort an ongoing contract that runs over a fixed period of time (Bird et al., 2002).

Swedish Households can compare the contract offers valid for their residence swiftly and free of charge on comparison sites online. Services such as www.elpriskollen.se from the Swedish Energy Markets Inspectorate are easy to use and offer a transparent comparison of suppliers. Another decorated online service based on a private initiative is www.elskling.se. Especially with the help of these comparison services, the actual change of a contract does not imply significant administrative barriers, but can be completed within a time span of several minutes online or by telephone.

Thus, there is no shortage of supply or a lack of competition due to the structure of the supply side. Also, the the transfer costs are low due to readily accessible comparison sites, no general switching costs and low bureaucratic hurdles. The so far slow market dynamics are due to characteristics on the demand side.

3.2.3 Demand sided characteristics: Low involvement

As the market became deregulated, an effectual marketing strategy and the understanding of consumer behaviour could be expected to turn into relevant success factors for marketers in order to successfully sell their electricity. However, so far the switching behaviour of Swedish residential customers has prooved to be rather low (Ek & Söderholm, 2006; Ek & Söderholm, 2008) and due to the inactive demand side no competitive market dynamics could develop so far.

5 In Europe the Renewable Energy Certificate System (RECS) enables electricity producers to get a certificate for every megawatt-hour of electricity which is produced by renewable sources. Such a certificate can be traded and guarantee the purchaser that the eqvivalent of the certificate of one megawatt-hour has been produced from renewable sources and been fed into the grid. 6 The “Bra miljöval” label requires not solely production from renewable sources, but sets more specific standards for environmental friendly production. For instance qualify only hydropower plants that guarantee a certain amount and natural residual water flow or biomass plants that use FSC certified raw material.

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This can partly be explained because the idea of electricity as a product itself was completly new – for marketers to sell it as well as for consumers, who were used to electricity as a utility service.

3.2.4 Market potential

In general, green market segments are growing globally (Emery, 2012). A prominent market segment for green products is the one for LOHAS consumers. LOHAS stands for a lifestyle of health and sustainability. Consumers that identify themselves with that group also desire to buy green or sustainable products in order to signalize their belonging. Today about 20% of American consumers are estimated to belong to that market segment, while this number is still expected to grow (Belz & Peattie, 2012). Although the LOHAS consumer category is originating from America, the demand for green products is growing in Sweden as well. Remarkable examples in Sweden are the market volumes for organic food and biofuels, which both multiplied during the last decades (see 3.2.4; Statens energimyndighet, 2010).

Thus, Swedish consumers show a high sensibility to environmental friendly consumption. At least, this has been proven in terms of food: Consumers from Sweden, along with those from their Scandinavian neigbouring and the Alpine countries spend the most per capita on organic food. In these countries organic food also has the highest market share of total food sales (Willer & Kilcher, 2009).

Obviously, countries differ in the rank-order of which issues have the highest priority on the environmental protection agenda. Furthermore, a high sensitivity for environmentally friendly food consumption, or even a general proenvironmental attitude, does not necessarily imply a high sensitivity for environmental friendly produced electricity (Belz & Peattie, 2012; Salmela & Varho, 2006). However, it can be assumed that there is a general sensitivity for environmental friendly made products among Swedish consumers and, therefore, an underlying market potential for renewable electricity (Sjöström, 2012).

A study by Swedenergy, the umbrella organization for the Swedish energy industry, strengthens that assumption, as it showed that 75% of the responding households could seriously imagine to buy green labelled electricity, while 40% answered that they could even consider being green labelled electricity if they have to pay a price premium for it (Kåberger, 2003).

3.3 The interest-action gap for renewable electricity consumption in Sweden

Although we concluded a significant market potential for green electricity, the numbers of actual purchases are inconsistent with the market potential and especially with the stated interest in the mentioned study by Swedenergy. In that same study, only 1% of the respondents actually bought green electricity, while 40% said they could seriously consider buying green labelled electricity even at a price premium (Kåberger, 2003). Obviously, there is a significant gap between potentital buyers of green labelled electricity and the actual consumption.

This observation can be further underlined by the results of a study conducted by Kåberger (2003) about environmental labelling in Sweden. He stated that demand for electricity that sells under the “Bra miljöval”7 label from the Swedish Society for Nature Conservation [SSNC], is growing much slower than demand for any other “Bra miljöval” labeled products.

Thus, it can be concluded that there is a potential market for green labelled electricity of significant size, but so far suppliers were not able to skim that potential. The reasons for the slow growth of the Swedish green electricity market assumingly are (partly) to be found in a lack of or unsuccessful marketing efforts. In this paper we suggest, that the failure of marketing attempts to include identitiy signaling theory and adress consumers self-concept is partly responsible for the low demand for green labelled electricity.

7 “Bra miljöval” translates to “Good Environmental Choice” in English. “Bra miljöval” is one of the most recognized among eco-labels in Sweden and applies tough standards that get stricter over time. At times 709 products and services are labelled with “Bra miljöval” in Sweden (Naturskyddsföreningen, 2013).

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3.4 Experience from other green products: The Toyota Prius

A benchmark for successful implementation of identity signaling in marketing for green products is the Toyota Prius. The Prius was one of the first hybrid cars available on the market, but by far the most successful one, with demand exceeding supply in many markets (Rundle-Thiele et al., 2008). For this study about identity signaling and renewable electricity it is not the mere success of Toyota’s hybrid car which makes this example a significant reference scenario. The example of hybrid cars is relevant because one model (the Prius) produced record high sales statistics compared to the only moderate success of other hybrids (Maynard, 2007). It is a legitimate question to ask wheter exactly this model is so much more successful than other comparable alternatives, e.g. from Honda or Chevrolet.

The significant difference is that the Prius is solely a hybrid model, thus, the car can be identified on first sight as a hybrid. Other hybrids are based on standard models and can only be identified as a hybrid if one spots the sticker on the back of the car. In a study of CNW Marketing Research among Prius owners, environmental concern ranked low on the reasons for purchase (Griskevicius et al., 2010). However, for more than 50% of the respondents the primary reason for chosing the Prius was because it would make a statement about them (Maynard, 2007). The Prius, therefore, is a highly effective and desired symbol to provide its owner with a reputation of environmental friendliness.

Thus, the benefits of the Prius for identity signaling are an important factor in making it more successful than any other hybrid vehicle and giving Toyota the reputation of an innovative and sustainable brand. Similar effects can be expected for renewable electricity and its supplier brands.

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4 Theoretical framework

4.1 Identity signaling

Within consumer behaviour, identity signaling is since a long time an acknowledged research field. It builds on the observation that people do not only buy products for their direct utility, but also for what those products symbolize. Already in 1959 Levy wrote about "how people behave in consistency with their self-concepts" and that

"choices are made [...] because one object is symbolically more harmonious with our goals, feelings, and self-definitions than another" (p. 120).

Thus, the symbolic meaning of brands and products are used in alignment of one’s self-concept of identity. And products - above all their symbolic meaning - are a medium to communicate one’s values and identitiy to others. For instance, regular coffee might serve our needs for taste and coffeine as well as fair-traded coffee, but one might choose fair-traded coffee because one thinks of itself as a concerned and careing person and also wants to communicate these characteristics to others. The choice of coffee can symbolize the values whith which that person wants to be associated with.

4.2 The role of self-identity in consumer behaviour theory

4.2.1 The theories of ‘Reasoned Action’ and of ‘Planned Behaviour’

Consumer behaviour is an interdisciplinary research field that employs mainly psychological, sociological and economic theories to assess and predict consumer choices. One of the widely used underlying theories in consumer behaviour research is the theory of reasoned action [TRA] by Fishbein and Ajzen (1975). The model was developed in the psychological and sociological disciplines as a tool to predict and influence behaviour.

Fishbein and Ajzen explain behaviour mainly by attitudes and suggest a causal relationship whereas attitudes are the deciding influence on behaviour. Later the model was extended by Ajzen to the theory of planned behaviour [TBA] (Ajzen, 2012).

The model has been tested in a row of research projects and substantial support has been found for it. Nevertheless, a growing number of researchers in behavioural studies claim their model to be valid, though incomplete, partly because it lacks inclusion of the theory of identity and self-concept (e.g. Gray, 1985 cit. in Ölander & Thøgersen, 1995; Biddle et al., 1987).

Because behaviour can also include consumer choices, the model’s approach to predict consumer choices by psychological and sociological factors made it very popular in consumer behaviour research (Ölander & Thøgersen, 1995).

4.2.2 TRA and TBA in consumer behaviour research

As mentioned, TRA, and later TBA, experienced widespread use in consumer behaviour theories in order to underline the influence of norms and attitudes on consumer choices. TBA is frequently used in academic research on consumer behaviour and is a widely acknowledged model to explain consumer behaviour. The model is refered to in major publications about consumer behaviour, from academic articles (e.g. Sparks & Shepherd, 1992; Terry et al., 1999) to mainstream university textbooks (e.g. Evans et al., 2009; East, 1990; Kotler, 1991) and to newer literature about sustainable consumer behaviour (e.g. Emery, 2012).

Hence, TRA and TBA rank probably among the most influencial models for consumer behaviour research, although they can only be applied with major delimitations and are occasionally criticized for their incompleteness. This is, because consumer choices depend on many more factors than identity signaling, for instance, availability, product characteristics or purchase habits.

Because of its rather narrow and specific approach, TBA is mainly used in academic research, but has less relevance in practical market-based research (East, 1990). Yet, its widespread use in academia still makes it an appropriate theoretical framework to embrace research within the field (see an overview in section 4.2.5).

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4.2.3 The role of identity signaling within consumer behaviour research

The aim of this project is to research a potential influence of identity signaling on consumer choices for electricity contracts. However, within both, TRA and the later extended version TBA, self-identity has not a direct causal influence on consumer choices, but only an indirect one. TRA and TBA suggest that identity signaling, along with other impacts, influences our norms and attitues. Our norms and attitudes influence our (consumer) behaviour (Ölander & Thøgersen, 1995). Thus, all behavioural change due to identity signaling happens through adaption of either attitude or norms, whereas identity signaling is not suggested to have a direct effect on consumer choices.

The role of identity signaling, as specifically seen by Ajzen and Fishbein, is neither supported by all research on neither consumer behaviour (East, 1990, p. 108), nor by all research on self-identity within psychological and sociological contexts (Sparks & Shepherd, 1992 ; Biddle et al., 1987).

Still, self-identity (also refered to as self-concept) theory, has its roots in psychological and sociological sciences and is acknowledged to have significant influence within these disciplines, and on behavioural studies in particular (Sparks & Shepherd, 1992). But not all research supports Fishbein and Ajzen’s suggestion of an indirect impact.

Biddle et al. (1987) suggested that “self-referent identity labeling” (or identity signaling) has a direct and independent influence on consumer choices (p. 322), while empirical research supported that hypothesis (p. 329).

4.2.4 Market-based consumer behaviour research on identity signaling

Market based research tends to use more inclusive, but less specific approaches than academic research (East, 1990). Still, psychologic or sociologic approaches are often included in market-based research, especially when theories such as the homo oeconomicus fall short to explain observed consumer behaviour.

The role self-identity or self-concept plays for consumer choices has already been observed by Levy (1959) and has gained further support by empirical research (e.g. Berger & Heath, 2007; Sirgy, 1982).

This has also been the case in relation to environmentally related consumer choices. Sparks and Shepherd (1992) researched motivations for the choice of organically grown food and found self-identity to be a significant factor. A more recent study by Loock et al. (2011) found self-identity as a significant determinant of energy-efficient behaviour in terms of warm water consumption in the shower. The market-study (see section 3.4) among buyers of hybrid cars has shown that the concept of self-identity has been a major contribution to the success of the Toyota Prius. Finally, Paladino & Pandit (2012) suggested a significant positive influence of self-concept on consumer choices for green electricity.

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4.2.5 Overview of theoretical framework

Generally, the effect of identity signaling on behaviour and consumer choices finds support in a wide range of research project within psychological, sociological and consumer behaviour disciplines. Graph 1 shows an overview on conducted studies and results that suggest the effect of idenity signaling.

Graph 1: Theory of Planned Behaviour based on Ajzen (2006), extended by the author. Involvement and visibility strengthen the causal influence.

Thus, the importance of identity signaling (or self-referent identity labelling) for behaviour and consumer choices has been supported by behavioural research within psychology and sociology, as well as by research on consumer behaviour in particular. Based on the research presented in graph 1 we assume that there is a causal relationship between identity signaling and consumer choices.

However, whether the effect identity signaling has on products choices (among other factors) is strong enough to nudge significantly more consumers towards green electricity contracts depends largely on product involvement and the visibility of the consumption process. Not all products are equally effective for identity signaling. Thus, a more precise assumption is: there is a causal relationship between identity signaling and consumer choices, if the product in question enables its purchaser to pursue identity signaling with that product.

4.3 Enabling the impact of identity signaling

Thus, the symbolic meaning of brands and products are used in alignement of our self-concept of identity. And products - above all their symbolic meaning - are a medium to communicate our values and identities to others.

However, not all products are equally useful to signalize one's identity. Research suggests that some categories are more relevant for identity signaling than others. Typical identity relevant categories are clothes, favourite artists or haircuts (e.g. Berger & Heath, 2007).

Less identity-relevant domains are, for example, shovels or dishwasher detergent (Suh & Yi, 2006). Also electricity and other commodities (products that bear no perceived differentating features) are generally seen as

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not identity-relevant goods (Paladino & Pandit, 2012). The two most important determinants of identity relevance are visibility and product involvement8.

4.3.1 The moderating role of public versus private consumption (visibility)

It lies in the nature of identity signaling – or self-referent identity labeling – that certain consumer choices are made in order to signal a set of distinct values that are associated with the product. Thus, the product becomes a symbol to communicate someone’s personal values (Levy, 1959). Followingly, a product needs a certain visibility in order to function as a symbol to signal certain values.

Ratner and Kahn (2002) proved that people adapt their travel plans depending on whether they expect others to hear about their vacation afterwards or not. Concretely, the participants of the study chose a travel plan with much more variety and activity if they knew their vacation would become public to others – in order to appear as an open-minded and interesting personality rather than narrow-minded. This phenomena is, however, significantly weaker when the vacation is expected to be private.

Griskevicius et al. (2010) assume the Toyota Prius to be a very effective way to signal one’s proenvironmental values, because it is highly visible and easily to identity. In other words, the Toyota Prius is suggested to be a very effective product for identity signaling. In their research project where consumer choices for green versus nongreen options were observed, participants switching to the green option chose a green car rather than green soap and they chose green soap rather than a green dishwasher. This implies that choosing green is mostly common for visible product categories, such as cars, while less relevance is put on almost non-visible products such as dishwashers. In a further experiment Griskevicius et al. (2010) observed that participants were more likely to prefer the green option of a product when they were shopping publicly in a shopping mall as compared to online shopping. Accordingly, they conclude that people are “especially sensitive to what their behaviours might signal to others when such behaviour is observable” (p. 396). Hence, the visibility of the consumption process or the product itself increses the likelihood that consumers choose the green option (Belz & Peattie, 2012)

These observations are not suprising, since products can only communicate values and information about one’s identity if they are visible to others. Sirgy (1982) even writes that a product “has to be purchased and/or consumed conspicuously or visibly” in order to have “personality associations” (p. 288). Thus, the effect identity signaling has on product choice can only be expected to be significant if the consumers choice becomes to some degree visible.

Electricity, however, is consumed almost invisibly today, with the only visible act of the consumption process being the bill received by the consumer. As compared to a car, which is driven in public or parked in front of a house, the electricity bill is usually invisible to the customers surroundings. As of today, the lack of visibility does not enable identity signaling for electricity. Part of the research conducted in this project is dedicated to the question wheter incresed visibility enables identity signaling effects. Since electricity as we use it is not visible, other symbols have to be used to signalize brands and types. Paladino and Pandit (2008) suggest “promotional materials such as stickers and fridge magnets which could help a consumer display their use of green power and increase the visibility of their consumption" (p. 380).

4.3.2 The moderating role of product involvement

Wheter a product is publicly or privatly consumed has a significant influence on its benefits for identity signaling. However, the visibility of a product is not the only factor that makes it more beneficial for identity signaling. It has a direct influence on consumer choices, but it is also an important determinant for product involvement. Product involvement is an ultimate determinant of a product’s identity relevance, thus, how beneficial it is to signalize identity values. Thus, the effect of identity signaling on a consumer decision increases with the level of product involvment (Berger & Heath, 2007).

8 Product involvement can be summarized as the general level of interest one has in a product, the relevance someone gives to make the right choice or simply the time spent on a decision (Suh & Yi, 2006).

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Product involvement and identity relevance of a product category vary among people. For instance, the brand of a PC might be much more identity relevant for an IT specialist than for other professionals. Nevertheless, there are product categories that are generally more identity relevant than others.

In general, hedonic products generate higher product involement than purely functional or utalitarian products do (Berger & Heath, 2007). For example, ones favorite music album or clothing habits are better symbols to signalize identity values or the belonging to a certain clique than the use of a certain dishwasher detergent or broom. This is because hedonic products are by nature intended to serve as symbols for identities or certain values, but do not have a functional purpose. A new haircut, for instance, signalizes that one cares about his or her appearance, while a certain style might further symbolize other values or clique-belongings. Yet, a new haircut is usually not a practical necessity. Dishwasher detergent, on the other hand, serves mainly the purely functional purpose to effectively clean dishes, but carries hardly any deeper meaning about the consumers values on a meta-level.

Electricity is a typical low-involvment good, which is perceived more as a utility service with no differentiating features than an actual product (Paladino & Pandit, 2012). The hypothesis of this study is, to make it more identity relevant in simulating different scenarios (see section 2).

It can be concluded that product categories with a higher level of product involvement are more identity relevant (Stokburger-Sauer et al., 2012). Electricity, so far, is a typical utilitarian, privately consumed and, thus, low involvement product with no or weak linkages to consumer identities. The impact of identity signaling on product choice, as shown in graph 1, is assumed to be rather low. According to our hypothesis, a stronger product involvement and higher visibility of electricity consumption will increase the impact of identity signaling, also for electricity choices.

4.4 Conceptual framework and research question

The presented research on self-concept and self-identity within consumer behaviour and practical examples such as the Toyota Prius provide sufficient evidence to assume a significant effect of identity signaling on the success of green electricity on the Swedish market.

Identity signaling theory has been applied in research for energy related consumer behavior firstly by Loock et al. (2011) in concern of energy-efficient behavior. Concerning the choice of green electricity Paladino and Pandit (2012) as well as Ek and Söderholm (2008) suggested the importance of identity signaling, however, without empirically testing it. According to the literature research undertaken for this study, there is no published study this far that would provide empirical evidence for the importance of identity signaling on consumer choices for electricity contracts.

We expect a higher demand for green products, in this case electricity, if we manage to simulate higher visibility and product inolvement. Firstly, because it was observed that people are more likely to choose the green option if product involvement and visibility are higher and, secondly, because people get the possibility to use green electricity to signalize proenvironmentalism or other values connected to green electricity, both are not the case under the current circumstance of anonymous consumption. This project should be a first attempt to provide empirical results of the suggested importance of identity signaling on consumer choices for electricity.

The goal of this study is to examine how visibility and product involvement could be increased and if that could strengthen the effect of identity signaling on the demand for green electricity. If so, green electricity could become a more identity-relevant product. Therefore it would become more beneficial for identity signaling and demand would rise.

4.5 Relevance of research question

The research conducted is relevant for policy makers, business strategists and academic researchers.

Policy makers, especially bodies of the Swedish government, should be interested in increasing involvement and visibility of electricity consumption

a) if this raises demand for green electricity, in order to reach set energy goals, and b) to generate market dynamics in order to reach a functioning market.

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Electricity companies that actively want to increase sales volumes of its green electricity portfolios, develop their residential customer base and secure long-term customer relationships by putting forward a distincitve branding strategy.

Academic research within marketing for electricity is still limited. However, with the rather newly liberalized markets growing up more research in this area has become necessary.

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5 What Values does renewable electricity consumption signal?

Green consumerism has already existed in later decades of the 20th century (Belz & Peattie, 2012) and is associated to different attitudes. Since we research the effect identity signaling has on the demand for green electricity, it is highly relevant to know what values green electricity is associated to. In order to generate a positive effect of identity signaling on demand for renewable electricity, the values it is associated with need to be desirable. Evidently, the effect of identity signaling on the demand for renewable electricity would be negative if the consumers in question associate it with negative connotations.

The values that green consumerism symbolize vary greatly among cultures, sub-cultures, the product category, the marketing efforts and so forth. Thus, it is difficult to define a set values which green consumption yields. In the case of green electricity the definition of values it would symbolize is even more difficult, since the product itself is rather new and the mainstream consumer is not very concious about the meaning and implications of switching to a green electricity contract (Ek & Söderholm, 2006).

An appropriate approach to somewhat generalize the values of green consumerism and green electricity is the LOHAS lifestyle [Lifestyle of Health and Sustainability]. Recent research suggests that about one fifth of Americans can be categorized as LOHAS consumers, whereas the phenomena has spread over the globe (Belz & Peattie, 2012). LOHAS are usually seen as early-adopters and trendsetters living a modern and urban lifestyle. We assume that green electricity would rather be connotated with modern and progressive lifestyles, than with extreme environmentalism and anti-consumerism. Hence, we expect renewable electricity to yield values that can be assumed to be desirable for the mainstream public.

Nevertheless, it has to be considered that green consumerism can for some people signalize undesired identities with a negative connotation such as environment geek [miljönörd] or health freek [hälsofreak]. For others renewable electricity might have negative connotations because they oppose the shareholder-value driven producers behind it or large-scale industries in general. However, to achieve a significant higher demand for renewable electricity it is relevant that the mainstream consumer connotates renewable electricity with positive values.

Summing up, academic research suggests that green consumerism has in general positive associations and is even connotated to high status, altruistic attitudes and moral responsibility (Paladino & Pandit, 2012; Salmela & Varho, 2006; Griskevicius et al., 2010). Concerning Sweden in particular, we assume the same generally positive associations with green consumerism, especially in accordance to its high level of organic food sales and the Ek and Söderholm’s (2008) suggested positive self-image of green consumption for their research among Swedish households.

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6 Scope and delimitations

6.1 Other influences on consumer choices

6.1.1 Product characteristics

Identity signaling is an important aspect of consumer behaviour, but consumer choices are influenced by other factors as well. In the case of electricity contracts such other factors can include, but are not limited to the price, customer service quality, availability of options, satisfaction with personal encounters, advertisments or sponsoring, individual affection to a certain supplier and so forth. All these factors are not accounted for in this study. Instead, only one variable, the possibility for identity signaling, should be changed to observe it's impact on results. All other factors are assumed to stay unchanged (ceteris paribus).

Kaenzig et al.(2013) suggest also a possible impact of default options on the choice of electricity contracts, thus a basic product choice that is automatically selected, if the customer does not actively make another choice. However, in our survey there are no default options, thus, there is no preselected option the respondent would get if no active choice is made. By doing so, a potential influence of such default choices is avoided.

6.1.2 Reference groups

People that desire to signal a clearly more than average green identity might not want to be associated with green large-scale industries. The same applies to LOVOS consumers [Lifestyle of voluntary simplicity], who are rather expected to positively connotate with particularly less, as well as more local, consumption (Belz & Peattie, 2012), but see large-scale renewable electricity grids as non-desirable. Furthermore, there might be out-groups that distinctively want to distance themselves from new green trends or ”environment geeks”. These groups might have negtive associations to renewable energy and therefore desire to signal an identity with a particular non-green image. For members of these groups, the visible consumption of e.g. windenergy could yield negatively associated values to their peers, therefore the effect of identity signaling has an expected negative influence on the demand for renewable electricity. However, it has to be expected that members of those groups are included in our sample. An example of such a group relevant for this study is the Swedish Society for Landscape Conservation (Föreningen Svenskt Landskapsskydd), which has a strong environmental-friendly perspective, but wants to prevent the landscape from being disturbed by large-scale electricity production sites, such as wind parks or hydrodams.

6.2 Market-related delimitations

6.2.1 Characteristics of a young market

The electricity market for residential customers is rather young, it exists in Sweden since 1996. The idea of electricity as a range of differentiated products, from which customers can choose, is a new one. The passivity of the households and the low switching behaviour towards greener choices, can, partly be explained by the young age of the market. Experiences from other market liberalizations, e.g. the one of the telecommunications sector, show that switching increases over time as, markets mature (Bird et al., 2002).

6.2.2 Complexity of electricity markets

The functioning of electricity markets, especially the idea of green electricity contracts, is very abstract and can be difficult to understand. The electricity bill consists of a row of items such as the price for the electricity itself, tax, transmission fee, distribution fee and so forth. For consumers it is especially challenging to see why they should pay more for green electricity if it is sent through the same grid like their neighbours’, which might not pay the premium. The distincition between the economic and the physical path of electricity consumption needs to be more clearly explained.

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6.3 Generalization of identity signaling

Psychological and sociological research sometimes examines behaviour choices in terms of, either internal or external identity signaling (Berger & Rand, 2008). Strictly speaking, there are two different reasonings for internal and external identity signaling. Internal identity signaling refers to "how I see myself", while external identity signaling refers more to "how I want to be seen by others" (Biddle et al. 1987). Thus, one could think "I am more this type of person, but I would like to be perceived as another kind"; in such a case internal and external identity signaling lead to different behaviours or consumer choices. In our case, internal identity signaling could mean that one purchases renewable electricity because one likes to see oneself as an environmental friendly person, without considering how peers might perceive this. External identity signaling would mean that one purchases renewable electricity in order to signalize a green identity to the others, without considering one's own opinion on renewable electricity.

Most often the two mechanisms are rather converging than diverging, thus, one could say "I see myself as an environmental friendly person, and I want my peers to perceive me in that way". In mainstream consumer behaviour research there is hardly a distinction between internal and external identity signaling, thus, they are assumed to converge. In this project, we assume the two mechanisms to be converging and summarize them simply as identity signaling.

6.4 Survey related delimitations

6.4.1 Unrealistically high price premiums

The price premiums on electricity from renewable resources were significantly higher in the survey than they are on the market. In the survey the price premium for windenergy was 10%, whereas the price premiums on the market are between 2-5%. The unrealistic high price premium was intended to reduce the usual gap between what people state they are willing to pay in surveys, and their actual willingness to pay in real purchase situations.

6.4.2 Implications of an unprobability sample

Since an unprobability sample is used for the survey, the results cannot, in a statistically correct manner, be generalized for the population of private Swedish households (Ritter & Sue, 2007). Rather, the survey results serve as first insights on the effect of identity signaling on consumer behaviour for electricity. For statistically relevant results, that can be generalized to the Swedish households, extended research that exceeds the frame and possibilities of a master thesis is necessary.

6.4.3 Involvement in survey implies an above average interest in electricity

The fact that repondents took time to answer the survey implies, that they are likely to have a certain interest in the subject of (renewable) electricity. Less interested households are more likely to have ignored the invitation to this survey. Therefore, it must be assumed that the sample resembles respondents that are on average more interested and involved in the topic than an average household.

This could be one factor that explains why a relatively high rate of the respondents of this survey said they buy renewable electricity, which is much more than the Swedish average (see section 3.2.4).

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7 Research methodology

7.1 Approach

The problem is approached through the analysis of primary and secondary data. Firstly, secondary data was used for a literature review in order to assess the current status of research on consumer behaviour for renewable electricity. Also, a theoretical background on identity signaling theory was concluded from secondary sources.

Secondly, the relevance and perception of identity signaling throughout the industry was assessed by qualitative as well as quantitative research, concretely with phone call interviews and a preliminary online survey among Swedish electricity suppliers. An additional aim of that stage was to assess wheter first measurements have already been tested in practice, and – if so – what experiences have been concluded.

Thirdly, the main research body consists of quantitative empirical research, namely of an online survey sent out to households in Sweden.

Online surveys have a row of advantages as compared to paper surveys and interviews: Depending on the availability of software tools and the conductors personal computer skills, online surveys can be considerably cheaper than paper surveys, especially as compared to surveys that are subject to postage. Also, the return of the data follows immediately as respondents answer the questions, so that no time is lost for mailing (Gaddis, 1998). The number of error can also be improved, since paper does allow respondents to send back questionnaires that are incomplete or answered in an incoherent way (Ritter & Sue, 2007). Another advantage of online surveys is, that the data is readily available to be processed in statistics programs, while paper surveys first have to be digitalized.

According to the financial limitations of the master thesis and the restricted time frame, the online survey was an appropriate method to use. A disadvantage of online surveys is the difficulty to find and select a significant number of respondents. Unlike post mail adresses, email adresses are difficult to obtain (Poynter, 2010). Institutions such as universities or companies usually have email-registries of their employees or members (Ritter & Sue, 2007), however, to choose the employees of a university as a sample can easily biase the results, so that they might not be valid for a general household.

To build a database of respondents that can be reached by email is time consuming and needs to be registered with the Swedish Data Inspection Board [Datainspektionen].

7.2 Method

7.2.1 Unit of analysis

Although electricity companies are involved in preliminary research, the insights about the preliminary research are solely intended to better understand the practical implementation of identity signaling in current marketing strategies and, to improve the main survey among households.

The level of analysis for the main survey, that will help us to test our hypothesis, are the residential endconsumers of electricity, thus, the private households in Sweden. The number of households is constantly changing, and there is no finite list about the number of households that can be reached by email. Such moving populations are called open populations (Ritter & Sue, 2007).

7.2.2 Data gathering

Preliminary survey among electricity companies

The preliminary survey was sent to 91 electricity suppliers in Sweden with the goal to examine energy suppliers’ interest in identity signaling research and the steps they have undertaken or plan to undertake in order to enable identity signaling for their customers. The electricity suppliers were picked from a member list of the trade association Swedish Energy. All members with electricity distribution to end-customers were adressed.

The answers of suppliers were used

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a) to examine how experienced the Swedish electricity suppliers are with the use of symbols for identity signaling,

b) to assess market interest in and legitimize further research within identity signaling and electricity, and c) as input to construct the main survey that has in the follwing been sent out to households in Sweden.

Main survey among households

Data was collected by three online surveys which were sent out to private households in Sweden. Concretely, the pool of respondents was divided into three scenarios: a control scenario and two symbol scenarios A and B. The control scenario answered the questions under business-as-usual conditions. For the symbol scenarios we simulated a higher visibility of electricity contracts, more public attention to the topic and, thus, possibilities for identity signaling.

The sample consist of Swedish households that choose their own electricity supplier and directly pay their electricity bill to the supplier. Furthermore, the households do have to be reachable by email. Since there is no national registry of email adresses, such as a phone book, households were chosen by the availability of email adresses that could be accessed on the internet with the help of search engines. Among those publicly and online available emailadresses of households, the respondents were picked randomly. Thus, the sampling frame includes Swedish households that choose their own electricity contracts and can be contacted by email. Students, for example, that live in student dormitories were not part of the sample.

Since there is no finite list about our population, we cannot calculate the chance of each household to be in the sample. The respondents were chosen randomly, but constricted by availability. Therefore, we have a nonprobability sample (Ritter & Sue, 2007).

According to Ritter & Sue (2007), suggested guidelines for the size of nonprobability samples include

a) between 30 and 500,

b) 10% of the parent population,

c) the largest affordable.

Our sample (n=285) fulfills the suggested guidelines a) and c).

The sample represents three groups: A random selection of private households, a selection of private households whith a member working in the real estate branch, and a selection of private households where a member is active in the steering committee of a housing cooperative [BRF] [styrelseledamot i en bostadsrättsförening]. The aim of that separation allows us to analyze the results in correlation to an assumed higher involvement and knowledge about residential electricity contracts for the latter two selections of households.

Each group of respondents was randomly split up in three scenarios: a control scenario and two symbol scenarios A and B. For each scenario an idenitcal survey and an identical set of electricity contract options from the fictional supplier SWEpower were presented. The fictional offer consisted of three alternatives, whereof two were based on renewable electricity (see graph 2). The blended product sweden goes green is based on a prefered mix of energy sources that Kaenzig et al. (2013) deducted from their research. According to environmental impact the products can be categorized with NordMix being the worst, scoring 1, sweWIND being better, scoring 2, and sweden goes green being the best, scoring 3.

For respondents of the symbol scenarios, a promised welcome present came printed with the logotype of the chosen alternative, so that the welcome gift would make visible, which kind of electricity the respondent chooses. The control scenarios would receive the same gifts, but they were blank, thus, the choices of the control scenario were anonymous. Paladino and Pandit (2012) suggested stickers and fridge magnets as objects to help signalizing the choice of electricity. Answers from electricity suppliers that answered on the preliminary survey showed that so far it was mainly stickers that have been used as give-aways by Swedish electricity suppliers. In this survey there are two different symbol scenarios, where symbol scenario A offers visible welcome gifts that have a direct, electricity-related use (timer, wheater station, remote controlled electricity socket, electricity consumption display) while symbol scenario B offers solely welcome gifts that are visible, but without a direct use (stickers, doorplate, email-signature, fridge magnet).

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Furthermore, in the introduction the respondents of the symbol scenarios were told that the Swedish parliament would start important debates on Sweden’s electricity production, that the topic would receive increased media attention, and that discussions about electricity would occur more frequently.

Graph 2: The offers for the different groups are identical in terms of price and product characteristics.

One important aspect of the survey, that needs to be underlined here, is that the choice of an environmental friendly contract did not provide any other benefits than the corresponding logotype, as they are shown in graph 3. Thus, the same welcome gift is received by the choice of any contract, solely the logotype on it changes. Thus, the symbol scenarios differ only in two points from the control scenario:

a) the welcome gift respondents would get is labelled with the logotype of the chosen contract; b) the respondents were told that electricity would get a lot of media and political attention during the

coming months.

The aim of this survey was not to find out about which kinds of renewable electricity are the most demanded, but rather if respondents are more likely to choose renewable electricity in general, if identity signaling is possible. Still, two different renewable electricity options were included (see graph 2). This is, to offer respondents that do particularly dislike large scale wind or hydro power projects, another option of renewable electricity.

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Graph 3: Overview over the three scenarios

As illustrated in graph 3, the symbol scenarios simulate a higher visibility of ones individual electricity contract and higher involvement of the Swedish society with the topic. Hence, the symbol scenarios enable the respondents to use their electricity contract for identity signaling, while the control group scenario did not provide possibilities for identity signaling.

7.2.3 What kind of analysis is possible

The data gathered from the survey is the basis for a comparative analysis between the answers and electricity contract choices from different scenarios and groups of respondants.

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8 Results from the preliminary survey

8.1 Survey statistics: Limited relevance of company size

From the 91 adressed electricity suppliers, 25 answered the preliminary survey (see table 1). This results in a response rate of 27.5 percent. The 25 respondents represent around 21% of the roughly 120 electricity companies in Sweden. Thus, the sample size allows us to generalize the results to a certain degree for the population, which consists of Swedish electricity suppliers.

Table 1: Survey statistics for the preliminary survey among Swedish electricity suppliers

Survey Statistics

Adressed 91

Viewed 38

Completed 25

Completion Rate 27,5%

In the sample, the different company sizes are evenly distributed (see graph 4), so the results should be valid not only for suppliers of a certain size.

Graph 4: Size of companies in the sample

Our sample suggests that larger companies tend to have stronger beliefs in the positive effect of identity signaling on the demand for renewable electricity and on the value of their brand. The data from the sample also shows, that smaller companies have fewer intentions to embrace identity signaling in their future marketing strategy than larger ones.

However, these tendencies are relatively weak and the correlations are statistically insignificant (p-value between 0.101 and 0.125). Concerning the other relevant variables of the survey, the sample does not suggest other correlations with company size. Thus, we suggest that the results drawn from this preliminary survey are valid for electricity suppliers in general and are not reliant on small or big suppliers in general.

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8.2 Little experience with symbols for identity signaling

Among the respondents, 40% said they use, or did use, visible symbols in their marketing strategies, thus, symbols that make their customers electricity contract visible to some degree. From these 40% the majority used stickers, fridge magnets or other signs, thus, basic give-aways. The experience from these efforts is mildly positive, as the following bar chart in graph 5 shows:

Graph 5: Experienced feedback from the use of tangible symbols

The vast majority claimed, they experienced rather positive feedback from their use of symbols, while no company responded to have experienced clearly positive feedback. However, graph 5 does not show a very consistent distribution, a third of the respondents said they were not sure about the feedback. This suggests, that these symbols were not given away as a strategical marketing effort with some clear strategic intentions. In such a case a more consistent distribution and a lower number of those that are not sure could be expected. It can be concluded that the experiences with the use of symbols for identity signaling were rather some first trials, than closely planned and reported marketing efforts that were based on identity signaling theory.

8.3 Relevance of identity signaling for electricity suppliers in Sweden

Although the experience of the Swedish electricity market with using identity signaling in their marketing strategies seems rather diffused and poorly documented, the interest in the topic is clearly stated. All of the respondents thought that the topic of this project is relevant (48%), or at least somewhat relevant (52%) for marketers of green electricity. These statements have, though, to be considered under the assumption that all respondents to the survey are to some degree interested in the project, otherwise they would not have spent time to answer the questions. However, 28% of respondents said they could imagine to get "involved" or "maybe involved" (44%) with this project. Furthermore, only 20% of respondents excluded the possibility to use symbols for idenity signaling in the future (see graph 6).

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Graph 6: Intentions to use symbols to enable identity signaling for customers

The companies were confronted with our hypothesis and asked about how strongly they agree with the suggested postitive effect of identity signaling on demand for renewable electricity. Graph 7 shows that the distribution of the answers is skewed to the right, thus, we find rather agreement with the hypothesis than disagreement. However, the insecurity is dominating.

Graph 7: Perceptions on the effectiveness of identity signaling to enhance demand for renewable electricity

Hence, it can be concluded that electricity suppliers, although little experienced with the topic of symbols for identity signaling, consider it as relevant for marketers of renewable electricity. The obvious interest in the topic, but also the clear insecurity legitimize this project as well as further research in the area.

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9 Results from the main questionnaire

9.1 Survey statistics

Roughly 3'000 households have been adressed and invited to take part in the online survey. Table 2 summarizes the survey statistics.

Table 2: Survey statistics for the survey among Swedish households

Survey Statistics

Adressed 2'715

Viewed 66

Completed 285

Response Rate 10.50%

Out of the roughly 3'000 respondent adresses, 2'715 turned out to be valid. The overall response rate of 10.5% is rather low, but expectable for a survey of this kind. It is remarkable that the response rate was higher for the responent groups with a BRF committee member or an employee of the real estate branch.9 Followingly, it can be deducted that those groups are generally more involved with the topic electricity than the average household.

9.2 Choice of electricity contract

The main question of this project was to explore whether the demand for renewable electricity is higher for the symbol scenarios than for the control scenario. Indeed, the answers from the survey show that the demand for renewable electricity contracts was higher for the symbol scenarios. Graph 8 shows that 50% of respondents from the control scenario chose the conventional energy mix SWEpower NordMix, while only roughly 40% of respondents from the symbol scenarios chose the conventional mix.

In turn, the symbol scenarios generated higher demand for the renewable electricity choices. The lower demand for conventional electricity is mainly compensated with higher demand for the product sweden goes green, which is the product with the highest environmental qualities and the highest price. Only marginal differences in demand can be recorded for the middle prized product sweWIND, which provides electricity from sources that are renewable, but have a higher environmental impact. Concerning the environmental quality and the price, sweden goes green is the prime product, while SWEpower NordMix is the basic product. The distribution of replies in graph 8 suggests that the effect of identity signaling is stronger on the basic and the prime products, but only marginal on the average product.

9 The households with a member in a BRF steering committee or an employee of the real estate branch are expected to be more involved and more knowledgable with residental electricity contracts. This assumption is also supported by the higher response rate for the survey from these households (11.5% for the more involved households compares to 9% for average households).

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Graph 8: Distribution of the chosen electricity contract for the three scenarios

Hypothesis B suggests a correlation between the environmental friendliness of the electricity contract and the scenarios Control and Symbol. Spearman's ρ = 0.103 resembles a weak correlation. However, it is significant (p=0.082) at the 10% level (table AI 3 in Appendix I) and gives support for hypothesis B.

Hypothesis A suggests that the percentage of subtractors for renewable electricity is higher for the symbol scenarios (psymbol) than for the control scenario (pcontrol). Graph 9 shows a difference of roughly 10% between the control and symbol scenarios.

A Fisher's exact test (table AI 1 in Appendix I) reveals a one-sided p-value of 0.093. Thus, the difference in demand for conventional, and renewable electricity respectively, as shown in graph 9, is statistically significant at the 10% level and supports hypothesis A.

Graph 9: Percentage of choices for conventional and renewable electricity for the control and symbol scenarios

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The data suggests further, that the effect of identity signaling is stronger for certain groups of respondents, namely for those that are expected to be more involved and knowledgeable in the field of residential electricity contracts: members of a steering committee in a housing cooperative and empoloyees of the real-estate branch. Thus, if we exclude random households and focus on the two mentioned groups, the differences between the scenarios are bigger. Also in this case, as it can be seen in graph 10, the effect of identity signaling is stronger on the basic and the prime product than on the average one.

The correlation, as suggested in hypothesis B, between the environmental friendliness of the electricity contract and the scenarios control and symbol is stronger in this case. Spearman's ρ = 0.150 resembles still a weak, but slightly stronger correlation. Furthermore, it is already significant at α=0.05 (table AI 4 in Appendix I).

Graph 10: Distribution of the chosen electricity contract for households with an active member in a BRF committee or an empoloyee of the real-estate branch

Concerning hypothesis A, graph 11 shows that the differences between the control and symbol scenarios are more distinct for the respondents of households with a BRF committee member or an employee of the real estate branch. Instead of a higher demand for renewable electricity of roughly 10%, the demand for renewable electricity is roughly 14% higher. A Fisher's exact test (table AI 2 in Appendix I) reveals a one-sided p-value of 0.040. Thus, for the households with an active member in a BRF committee or an employee of the real-estate branch the difference in renewable electricity demand between the scenarios is already statistically significant at a significance level of α=0.05.

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Graph 11: Percentages of choices for conventional and renewable electricity for households with a member in a BRF committee or an empoloyee of the real-estate branch

9.3 Limited desire for a visible symbol

The survey showed further that most consumers do not actively wish a symbol that makes their choice of electricity more visible. However, answers to this question are segregated (see graph 12). It is remarkable that 35% of those choosing the average product sweWIND would actively desire a symbol, while 46% of those choosing the prime product sweden goes green actively express a desire for a symbol. The sample shows clearly that the more money people spend for renewable electricity, the more likely they desire a symbol to show their choice. Thus, the more people spend for environmental friendly products, the more likely they use the purchase for identity signaling.

Graph 12: Appreciaction of a visible symbol in connection with a renewable electricity contract.

Table 3 shows that the price was the most important factor for the choice of respondents of the control scenario. For respondents of the symbol scenarios, environmental impact was as imporant as price. Further, the suppliers

29

image and values as well as the source of energy are more important for respondents of the symbol scenarios than for respondants of the control scenario. Concluding, table 3 reveals that respondents confronted with the symbol scenarios valued environmental impact, the source of energy and the suppliers image and values higher than respondents confronted with the control scenario. Those respondents rated the price and a welcome gift as relatively more important.

Table 3: Importance of different categories for the choice of an electricity contract, rated from 1 (not important) to 5 (very important).

9.4 Few differences between more involved and average households

Apart from the choice of electricity contracts, only limited evidence can be found for differences between households more involved in residential electricity contracts and average households. From the more involved households, 28% said they have renewbale electricity contracts, while 57% said they buy conventional electricity mixes and 15% said they would not know. From the average households 22% said they buy renewable electricity, while 58% buy conventional electricity mixes and 20% do not know. Hence, more involved households seem to be slightly more informed about their electricity contract and have a slightly higher rate of buying renewable electricity. These differences are, however, not significant.

Table 4 shows that there are hardly any differences between those two groups in terms of the importance of different factors for the choice of an electricity contract. When comparing table 3 to table 4, it becomes obvious that the scenarios are more important to define the priority factors for an electricity contract choice than the assumed involvement and knowledge of a household. The data shows further that there are only marginal differences between those groups concerning the trust in renewable electricity contracts10 and the choice of electricity contracts.

Table 4: Importance of different categories for the choice of an electricity contract, rated from 1 (not important) to 5 (very important) for more involved and average households

9.5 Strong influence of trust in renewable electricity schemes

Finally, the data suggests a strong influence of trust in renewable electricity schemes on the choice of renewable electricity. Graph 13 shows clearly that the level of trust in renewable electricity schemes correlates strongly with the choice of electricity. The more respondents trust in the effectivness of renewable electricity schemes, the more likely they are to choose renewable electricity. A correlation test reveals a Spearman's ρ = 0.243 (table AI 5 in Appendix I), which is significant at the 0.01 level (2-tailed).

10 Respondents were asked to what degree they trust in the effectiveness of renewable electricity schemes.

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Graph 13: Choices for conventional and renewable electricity contracts according to the level of trust in renewable electricity schemes

The importance of trust in renewable electricity schemes for the choice of renewable electricity, as illustrated in graph 13, is an important finding of the survey. However, it does not directly add to support of the hypothesis. The hypothesis suggests the positive effect of identity signaling on the demand for renewable electricity, the level of trust is, however, not an element of our hypothesis.

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10 Discussion

10.1 Crucial factors for a successful enabling of identity signaling

A moderate positive effect of identity signaling on demand for renewable electricity

The results exhibit a statistically significant difference for the choice of renewable electricity between the control and the symbol scenarios. Therefore, identity signaling should obviously have a positive effect on the demand for renewable electricity. However, although statistically significant, it remains to be examined how relevant the effect of identity signaling is as compared to other influencing factors. Considering the moderate difference between the control and the symbol scenarios of 10% on average and 14% for more involved households, there are assumingly a row of other factors that have a significant importance on the demand for renewable electricity. As seen in table 2, the price has definitely a strong influence on consumer choices for electricity.

Mainly the most basic and prime products are affected by identity signaling

The results also reveal, that the effect of identity signaling is stronger on the least and the most environmentally friendly products. The effect is only marginal on the average product sweWIND, which provides renewable electricity, although from sources with a big impact on the environment. Thus, average products such as a wind and hydro power mix are not very affected by identity signaling. For prime products, such as sweden goes green, identity signaling has to be considered as an important determinant. The same applies for the economically cheapest and least environmental friendly product, SWEpower NordMix. It can be assumed that respondents of the symbol scenarios moved away from that product because they did not want to signalize a personality that values economic benefits strictly over environmental ones.

People actively move away from the least environmental friendly product to avoid probable negative connotations. However, people would choose the prime product not to avoid negative connotations, but to actively signalize environmental friendliness. Thus, the demand for a prime product which differentiates itself clearly from average products in terms of environmental friendliness and price is more affected by the possibilities of identity signaling. This is further supported by the fact that only 35% of those who chose the sweWIND (the more average product) would appreciate a welcome gift with a logotype, while almost half of those who chose sweden goes green (the prime product) would appreciate such a symbol.

Involvement in residential electricity matters fosters the effect of identity signaling

Finally, the effect of identity signaling was stronger for households that are assumed to be more involved in household matters than for average households, because for those respondents the difference in demand for renewable electricity between the control and the symbol scenarios is 14%, which compares to a 10% higher demand for the average households. This further supports the theory (see graph 1), which suggests that product involvement enhances the effect of identity signaling.

However, concerning other variables shown in table 3 or the trust in the effectiveness of renewable electricity contracts, there have been only marginal differences recorded between average and more involved households. Thus, it can be concluded that more involved households do not significantly differ from average households, however, they are more likely to be affected by the control and symbol scenarios. In other words, they are more receptive for the effect of identity signaling.

Positive correlation between trust in renewable electricity schemes and demand

A row environmental friendly consumerism studies suggest the importance of perceived consumer effectiveness is an important driver for sustainable consumption choices (Belz & Peattie, 2012). Paladino & Pandit (2012) specifically suggest the importance (PCE) for the choice of renewable electricity contracts. Trust in renewable electricity is closely related to perceived consumer effectiveness, but resemble the consumers perception of how much of a difference his or her choice makes. The data from this survey gives further support to those suggestions, since there is a strong correlation between the trust in renewable electricity schemes and the choice of renewable electricity contracts.

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10.2 Insights for policy makers

The results of this thesis have some implications for policy makers that want to increase the demand for renewable electricity under the current market rule. In consideration of the market rule, the use of identity signaling to achieve changes in consumer behaviour could be quicker and at a lower cost than policies that need to pass political barriers. This does, however, not redundantize the implementation of other policies that can only emerge within a longer time-span, e.g. tax incentives on the demand side. The results show that higher visibility and a higher involvement of the society in the topic can enable identity signaling and increase the demand for renewable electricity.

Two possible measures can be deducted from this:

Firstly, it could be beneficial to introduce a symbol, e.g. issued by the Swedish Energy Agency [Energimyndigheten], that would make households renewable electricity contracts more trusted and official. The data showed that trust in renewable electricity schemes is crucial for the demand, a symbol which is issued by a trusted institution would therefore be much more effective. What characteristics such a symbol needs to have to be as effective as possible still needs to be examined.

Secondly, a higher involvement could further strengthen the positive effect of identity signaling on renewable electricity demand. A possible way to increase public awareness and involvement on electricity issues could be to launch public awareness campaigns. However, concrete measures need to be thought of according to the institution's competences and possiblities.

10.3 Insights for marketers of renewable electricity

For electricity suppliers this research yields a row of suggestions that could help them raising the demand for their renewable electricity contracts, to strengthen their brands or ensure long-term customer relationships. To have more distinct marketing strategies in accordance with the concept of identity signaling will become more important as the electricity market matures and switching behaviour can be expected to increase (see section 6.2.1).

Firstly, the future importance of the issue electricity in the society will have an influence on the involvement of households in the choice of electricity contracts. If electricity becomes a more important debate, the real market scenario is moving closer to the symbol scenario simulated in this survey.

On the one hand, this would mean that households put more importance on the suppliers image and values as well as the source and environmental impact of electricity. Studies by Suh and Yi (2006) and Stokburger-Sauer et al. (2012) have similar congruent findings and suggests that brand and corporate image are more important for high involvement product categories. However, their studies also suggested that customers are more loyal towards a brand in high involvement products.

On the other hand, price would become a little less important, as it can be seen in table 3 in section 9.3. A higher price sensitivity in low involvement sectors (represented by the control scenario) and lower emphasis on price in high involvement sectors (represented by the symbol scenario), is a common observation (Kaenzig et al. 2013) which is also supported by our results. Thus, the findings of this study about consumer choices for electricity contracts are congruent with findings from consumer choice studies in other fields. Hence, if the market comes to resemble the symbol scenario, a higher demand for products like sweden goes green and at the same time a lower price sensitivity for those products can be expected. A clear and positive corporate image consistent with brand values connected to environmental friendliness could become more important to enhance customer loyality.

Secondly, for suppliers that rely on their sales of renewable electricity, it is crucial to build trust in the renewable electricity contracts. Thus, customers need to be explained why their choice of renewable electricity has an impact on the electricity production. Education of the demand side is a crucial success factor for those suppliers that want to foster their sales of renewable electricity. The complexity of the electricity market and renewable electricity schemes in particular need to be explained in a simpler understandable way. Concrete suggestions could be visits to production sites for customers or entertaining and easy to understand online content.

Thirdly, symbols that make an electricity contract visible are especially important for customers that choose prime products with an especially low environmental impact. These products can be significantly more expensive (in the case of the survey 16% as compared to the basic mix), but they should provide customers with the possibility of identity signaling. Respondents of this study named most often doorplates, stickers or magnets

33

for use around the entrance area or on the electricity meter. Other suggestions included umbrellas, doilies or special applications for social media. It could become a success factor for electricity suppliers to adapt their marketing strategies in a way that values, such as environmental protection, are communicated more effectively. For electricity suppliers it would become more important to differenitate their brand and products from others, especially for prime products that are more than average environmental friendly and more expensive, such as sweden goes green. Differentiation is necessary against more generic products such as sweWIND,but also against other competitors. Local production could also be a factor for differentiation. For those prime products it is important to give the cutomers the possibility for identity signaling to increase demand, while minor price differences would become less important. For more average products, such as large-scale hydro power, price differences are more important. Thus, the marketing should also focus more on the price, since identity signaling is not expected to have a major effect on the demand for those products. Marketing strategies need to vary between more average and prime products.

10.4 Matters for future research

So far, research within renewable electricity marketing, especially in consideration of identity signaling, was limited (Paladino & Pandit, 2012). This project is a further step to show that identity signaling can be a relevant factor for renewable electricity marketing and for boosting the demand for it. In order to increase renewable electricity demand, the understanding of identity signaling is especially important, since renewable electricity does not yield any materialistic benefits that could be used as sales argument. The only benefit is the knowledge, that the eqvivalent amount of one’s consumption is produced by renewable sources.

Electricity itself is not a materialistic product, instead consumers pay for using the grid and the voltage in it. Suppliers are paid to produce enough electricity to keep the grid in balance. The quality of the electrons that exchange between the grid and our appliances has no direct connection to our electricity contract and our appliances do not work more or less reliable. This is not the case for other products, e.g. organic food. Purchasers of organic food might not only choose organic due to idenity signaling or environmental concern, but for the benefit of food that is processed without certain chemicals. In those cases it is hard to distinguish between, and isolate different reasons for an environmental friendly purchase. Renewable electricity does not provide any materialistic benefits, nor is it subject to any consumer-sided tax benefits. Hence, it is a good subject to research the influence of identity signaling.

This study showed an increased demand for renewable electricity by using identity signaling. The ways used in this study to make electricity more visible and to simulate involvement enabled the effect of identity signaling and led to an increase in demand for renewable electricity of 10%. To optimise the effect of identity signaling, future research should also focus on how to most effectively increase involvement and visibility.

For electricity suppliers, further research should also focus on the possibilities of market segmentation and on the selection of favourable brand values and product characteristics that allow a constant differentiation from other competitors. Then, as the results of this study suggest, identity signaling is mainly possible with products differentiating from the average.

Electricity is certainly among those forms of energy with the lowest visibility per se. Other energy carriers, e.g. car fuels or wood pellets are more visible than an electricity contract, due to more physical attributes. Nevertheless, most energy products have a rather low visibility, therefore it would be interesting to research similar effects of identity signaling on e.g. housewarming or car fuels.

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11 Conclusions

The goal of this study was to examine a potential positive effect of identity signaling on the demand for renewable electricity. Electricity, however, is not a typical identity relevant good, due to its invisibility and the rather low involvement of the demand side. To examine whether identity signaling can have a positive effect on the demand for renewable electricity, an identical set of questions presented in two scenarios, whereof one symbol scenario simulated a higher visibility of and a higher involvement of the Swedish society in electricity. Concretely, a visible welcome gift with the logotype of the electricity choice was promised to the respondents, thus, a typical good to enable identity signaling. A control scenario represented the business-as-usual case. The results showed a 10% higher demand for renewable electricity from the respondents that answered under the symbol scenario than from the respondents that answered under a control scenario. For more involved households the surplus was even 14%. Although statistically significant, identity signaling was able to increase demand by 10-14%. An increase of demand by 10 or even 14% might not urge producers in Sweden to build more renewable electricity production capacity. However, the identity signaling options of this survey were rather limited, and due to the nature of a survey, rather hypothetical. A real case scenario could yield even more significant influence of identity signaling.

Nevertheless, this study showed that identity signaling can be one out of many success factors to increase the demand for renewable electricity. By applying the results of this study, electricity suppliers could make better use of the effect of identity signaling to increase demand for their renewable electricity products and brand loyality. And policy makers could invest in people’s knowledge and trust in renewable electricity schemes to increase demand. So far, the implemented incentives to increse renewable electricity production capacities in Sweden affect only the supply side (KPMG International, 2012). For policy makers, taking actions on the demand side would complement the efforts undertaken to nudge the suppliers towards more renewable electricity generation. Increasing involvement and visibility has the potential to increase demand for renewable electricity. Implementing according policies would be a first step to make use of the so far untapped potential of demand-sided incentives.

A recent study by von Borgstede et al. (2013) revealed that the Swedish public sees renewable energy (followed by energy efficiency) as the most important measure to alleviate climate change. From this study it could be deducted, that the potential for renewable electricity in Sweden is growing bigger. Enabling the effects of identity signaling could therefore tap a part of that growing potential.

Hence, enabling the effect of identity signaling could be one puzzle piece to shift electricity supply towards more renewable production and to reduce the impact of energy production on the environment. Applying the insights from this, and hopefully following studies, on identity signaling could provide electricity suppliers with a comparative advantage, while it can help policy makers to make progress in achieving renewable energy goals. However, more practical experiments are necessary to implement identity signaling in practice and to deploy its effect to the best possible. A possibility to concieve more significant data from a real case scenario would be for researchers to cooperate with an electricity supplier to test different real case scenarios among customers and include an extensive reporting. This could help researchers to gain high quality data, policy makers to adapt action plans and electricity to develop marketing strategies that are a competitive advantage in comparison to competitors.

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Acknowledgements

Firstly, I would like to thank my supervisor Johan Vinterbäck for the countless hours he dedicated to this project. His guidance has been of great help and his experience and expertise made it possible that this project could deliver the results it did.

Secondly, a lot of thanks go to my evaluator Cecilia Mark-Herbert. Her many and valuable inputs were a very important contribution to the success of the project and the scientific value of this paper.

Thirdly, my opponent Li Hao receives many thanks for his suggestions which helped me to make this paper more valuable.

Finally, I want to thank all the anonymous respondents – companies and private households - that spent time answering the surveys. Only their voluntary efforts made it possible for this project to deliver results. All the people I met on the way should be thanked for the discussions and the inspiration.

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Appendix I – Statistical Evidence11

Scenario * Choice of Electricity Crosstabulation

Count

Choice of Electricity Total

Conventional Renewable

Scenario

Control scenario 40 40 80

Symbol scenarios 83 122 205

Total 123 162 285

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square 2.122a 1 .145

Continuity Correctionb 1.752 1 .186

Likelihood Ratio 2.111 1 .146

Fisher's Exact Test .183 .093

Linear-by-Linear Association 2.115 1 .146

N of Valid Cases 285

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 34.53.

b. Computed only for a 2x2 table

Table AI 1: Chi-square test for the percenteges of renewable vs conventional electricity choices between the two scenarios

11 The statistical results have been generated with IBM SPSS Statistics 21.0.0.0

40

Scenario * Choice of electricity Crosstabulation

Count

Choice of electricity Total

Conventional Renewable

Scenario

Control scenario 33 32 65

Symbol scenarios 51 88 139

Total 84 120 204

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square 3.624a 1 .057

Continuity Correctionb 3.066 1 .080

Likelihood Ratio 3.598 1 .058

Fisher's Exact Test .067 .040

Linear-by-Linear Association 3.606 1 .058

N of Valid Cases 204

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 26.76.

b. Computed only for a 2x2 table

Table AI 2: Chi-square test for the percenteges of renewable vs conventional electricity choices between the two scenarios. Only households with a member in a BRF committee or an employee of the real estate branch are included

41

Correlations Scenario Electricity contract

Spearman's rho

Scenario

Correlation Coefficient 1.000 .103

Sig. (2-tailed) . .082

N 285 285

Electricity contract

Correlation Coefficient .103 1.000

Sig. (2-tailed) .082 .

N 285 285

Table AI 3: Correlations of the scenario and the choice of electricity contract

Correlations

Scenario Electricity contract

Spearman's rho

Scenario

Correlation Coefficient 1.000 .150*


N 204 204

Electricity contract

Correlation Coefficient .150* 1.000


N 204 204

*. Correlation is significant at the 0.05 level (2-tailed).

Table AI 4: Correlations of the scenario and the choice of electricity contract. Only households with a member in a BRF committee or an employee of the real estate branch are included.

42

Correlations

Trust in renewable electricity

schemes

Choice of electricity

Spearman's rho

Trust in renewable electricity

schemes

Correlation Coefficient 1.000 .231**


N 195 195

Choice of electricity

Correlation Coefficient .231** 1.000


N

195 204

**. Correlation is significant at the 0.01 level (2-tailed).

Table AI 5: Correlations of the level of trust in renewable electricity schemes [from 1 (lowest) to 5 (highest)] and the choice of electricity contract

Consumer behaviour in green/renewable electricity markets what is your opinion? Green marketing has gained increased importance in the marketing discipline and for brand identity strategies as market volumes for green brands are growing. However, there has been comparably little development of green/renewable electricity markets. Furthermore, there has also been little research dedicated to how green electricity providers could increase sales and the size of the market and strengthen customer relationships. Marketing for electricity, however, is a particular challenge, due to several reasons: Low visibility and intangibility of electricity makes it difficult to convey symbols and brand identities. Electricity is still perceived as service commodity with no differentiating features. Electricity is a privately and thus anonymously consumed good. Hence, electricity is a low involvement good where consumers have weak linkages to personal values and little commitment to the brand. Research suggests that privately consumed goods with low visibility are unfavorable for companies to convey and strengthen their brand and get consumers attached to a brand, and disable consumers to use their consumption for identity signaling. Our hypothesis suggests that more tangible and visible products would turn electricity into a more identityrelevant product, increase consumer involvement and allow suppliers to strengthen their brands and develop green electricity markets. The objective of our study is to examine how the possibility to use electricity products for identity signaling could change consumer behaviour of private customers and allow suppliers to strengthen their brand and secure longterm customer relationships. In order to setup a questionnaire among consumers, this preliminary questionnaire amongst electricity suppliers in Sweden (with possible extension to other European countries) is intended to give insights about how green electricity products are marketed as of today and to get an overview in the potential interest in the subject. Your answers are automatically anonymized. To fill in the questionnaire should take only a few minutes. Thank you in advance Raphael Hanimann MSc SD Student SLU & Uppsala universitet ENKÄTEN ÄR PÅ ENGELSKA, FÖR ATT VI PLANERAR ATT EXPANDERA UNDERSÖKNINGEN TILL FLERA LÄNDER. OM NI ÖNSKAR EN SVENSK VERSION HJÄLPER VI GÄRNA TILL. TO GET BACK TO THIS PAGE AGAIN AFTER YOU PROCEEDED, PLEASE USE THE REVERSEBUTTON OF YOUR BROWSER.

1. Use of tangible/visible/touchable symbols as marketing measuresTangible symbols are visible/touchable products that allow customers to show their type of electricity contract to others, e.g. their friends. Typical examples are stickers, fridge magnets, timers or weather stations branded with your company and renewable electricity.

Do or did you use tangible symbols, e.g. stickers or fridge magnets, to enable your customers to signalize their choice of electricity to others?

Yes No Not sure

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If yes, what symbols do you distribute amongst customers (e.g. stickers or fridge magnets)?

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________If yes, did you experience positive feedback in terms of customer satisfaction and attachement to your brand?

Yes Rather yes Rather no No Not sure

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Do you consider to use symbols in the future, in order to enable identity signaling for your customers or to strengthen your brand?

Yes No Maybe

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2. Green/renewable electricity and brand identity

Does green/renewable electricity play a major role in your brand identity?Yes No To a certain degree

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Do you offer both, electricity from renewable as well as conventional resources to your customers?Yes No Not sure

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If yes, do you follow a distinct strategy to market green/renewable electricity products, as compared to other electricity products?

Yes No Somewhat

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3. Opinions on identity signaling and marketing

Do you believe that providing consumers with tangible symbols that allow identity signaling could increase demand for your green electricity?

Yes Rather yes Rather no No Maybe


Do you believe that providing consumers with tangible symbols that allow identity signaling could strengthen your brand?



4. Other energy products

Does your company produce other energy products, e.g. district heating, wood pellets or similar?Yes No Don't know

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If yes, are there tangible symbols used to market those products?Yes No Don't know

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If yes, what symbols or what type of symbols are used?

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________If yes, do you experience positive feedback in terms of customer satisfaction and attachement to your brand?

Yes Rather yes Rather no No Don't know


5. Relevance of the project

Do you think that this project is relevant to marketers of green electricity?Yes No Somewhat

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Could you imagine to get involved in this study?Yes No Maybe

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Could you imagine to get your customers involved in the questionnaire following this preliminary survey?Yes No Maybe

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6. Thank you!We highly appreciate your input for this preliminary study. It helps us to configure the upcoming questionnaire among consumers.

We would appreciate if you leave us your contact details. Name, Position, Company. (voluntary)

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________How many customers does your company have?

gfedc up to 10'000

gfedc 10'000 to 50'000

gfedc more than 50'000

In which levels of the electricity supply chain is your company active?

gfedc Trading

gfedc Distribution

gfedc Production

Tack så mycket för att delta! <!> <style type="text/css"> #mainbanner display:none; </style> Vi uppskatar er hjälp. Tänk på att det var ett fiktionalt erbjudande utan inflytande på ditt rejält elavtal. Det är faktiskt sant att du kan välja bland ungefär ett hundra elbolag i Sverige och det går helt enkelt. På nätet borde det bara ta dig några minuter att Om du vill jämföra dem olika erbjudande som gäller för dig, då föreslår vi att du tittar in på http://www.elskling.se Väljer du fastpris då får du en garanterad pris per kWh över hela bindnigstiden och du måste dig inte oroa om fluktuerande el priser. Väljer du rörlig el pris så betalar du mindre per kWh, men du tar risken att du priset som du betalar ökar när el blir dyrare på börsen. Rörligpris är den vanligaste avtalsformen. Köper du miljövänlig el, t.ex. vindkraft, då måste bolagen bevisas att den producerar (eller köper i) så mycket som du förbrukar från just vindkraft. Fler tips får du från Energimarknadsinspektionen, du hittar dem här: http://www.ei.se/elpriskollen/ Lycka till med att hitta el avtalet som är rätt för dig! We gladly receive comments or questions. If you wish, you will be provided with the anonymized results of this preliminary study or more background information on the project. Sincerely, Raphael Hanimann [email protected] +46 (0)700 66 42 97 TO GET BACK TO THE QUESTIONS AND THE INTRODUCTION PAGE, PLEASE USE THE REVERSEBUTTON OF YOUR BROWSER.

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Appendix II - Preliminary Survey

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12) All surveys for this project have been conducted with online services from Netigate©

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Yes No Not sure

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Yes No Maybe

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Yes No Somewhat

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Yes No Not sure

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Yes No Maybe

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Yes No Somewhat

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Yes No Not sure

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Yes No Maybe

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Yes No Somewhat

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Välkommen, elköpare <!> <style type="text/css"> #mainbanner display:none; </style> <br> Sedan 1996 har alla som bor i Sverige haft möjlighet att välja elleverantör. Det finns drygt 120 elbolag att välja bland och dem flesta erbjuder olika avtalsformer (t.ex. fast eller rörligt pris, olika bindningstider) samt även miljövänlig el. <br> <br> På Sveriges lantbruksuniversitet (SLU) och Uppsala universitet vill vi ta reda på vad hushållen vet om detta och hur man reagerar på olika erbjudanden. Det gör vi med denna undersökning. <br> <br> På följande sida får du <strong>tänkta erbjudanden från vårt påhittade elbolag SWEpower</strong>. Välj det alternativsom är mest attraktivt om du skulle teckna ett nytt avtal idag. <br> <br> Erbjudandena är fiktiva. Vi har skapat dem, men de liknar dem som idag finns att välja mellan på elmarknaden. <br> <br> Tänk på att allt är <strong>anonymt</strong> och att det bara tar ett <strong>fåtal klickar</strong> att fylla i. Det är ännu viktigt att du svarar på ett seriöst sätt, dvs tänker att du verkligen måste köpa det erbjudande som du väljer. <br> <br> <br> <br> Obs! Projektet är akademisk forskning och del av ett examensarbete vid Sveriges lantbruksuniversitet (SLU) och Uppsala universitet. Det finns inga företag involverade och din epostadress kommer inte att sparas av systemet. <br> <br>

Tre olika alternativ för digPå följande sida får du välja ett av våra tänkta erbjudanden från vårt påhittade elbolag SWEpower. Välj det alternativ som är mest attraktivt om du skulle teckna ett nytt avtal idag. Erbjudandena är fiktiva. Vi har skapat dem, men de liknar dem som idag finns att välja mellan på el marknaden. Tänk på att som ny kund skulle du även få en välkomstpresent som du väljer på nästa sida.

Vilket elavtal skulle du välja?I dessa exempel är alla avtal 1 årsavtal med fast pris. Dvs att priset du betalar per kWh är samma året runt och du kan bryta ditt avtal utan avgift efter ett år. Tänk på att som ny kund skulle du även få en välkomstpresent som du väljer senare.

SWEpower NordMix sweWIND sweden goes green

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Välj din välkomstpresent<!> <style type="text/css"> #mainbanner display:none; </style> Tänk att SWEpower skulle ge dig en välkomstpresent. Välj den present du skulle önska.

Väderstation Elenergimätare Kopplingsur/Timer Fjärrströmbrytare

gfedc gfedc gfedc gfedc

Du har gjort ditt val, vad blev viktigast för ditt val?<!> <style type="text/css"> #mainbanner display:none; </style> Vänligen värdera följande fem kriterier efter hur viktiga de är för dig.

1 inte viktigt 2 mindre viktigt 3 viktigt 4 mycket viktigt 5 viktigast Bolagets image och rykte gfedc gfedc gfedc gfedc gfedc

Ursprung av el/Produktionssätt gfedc gfedc gfedc gfedc gfedc

Pris gfedc gfedc gfedc gfedc gfedc

Välkomstpresent gfedc gfedc gfedc gfedc gfedc

Miljövänlighet gfedc gfedc gfedc gfedc gfedc

Vad blir viktigt när du väljer ett elavtal nästa gång?<!> <style type="text/css"> #mainbanner display:none; </style> Vänligen värdera följande fem kriterier efter hur viktiga de är för dig.

1 minst viktigt 2 mindre viktigt 3 viktigt 4 mycket viktigt 5 viktigast Produktionssätt för elen passar mina värderingar gfedc gfedc gfedc gfedc gfedc

Välkomstpresent så att jag kan visa upp mitt avtal för vänner gfedc gfedc gfedc gfedc gfedc

Hur jag tycker om elleverantören gfedc gfedc gfedc gfedc gfedc

Elleverantören delar mina värderingar gfedc gfedc gfedc gfedc gfedc

Priset gfedc gfedc gfedc gfedc gfedc

Din åsikt om förnybar el: Hur väl instämmer du med följande påståenden?<!> <style type="text/css"> #mainbanner display:none; </style> Vänligen värdera följande fyra påståenden efter hur väl du instämmer med dem.

1 inte alls 2 lite 3 ganska 4 mycket 5 helt och fullt Generellt är el från förnybara resurser något positivt gfedc gfedc gfedc gfedc gfedc

El från förnybara resurser passar in i min världsåskådning gfedc gfedc gfedc gfedc gfedc

Jag kan identifiera mig med el från förnybara resurser gfedc gfedc gfedc gfedc gfedc

Viktiga personer omkring mig ser el från förnybara resurser som något positivt gfedc gfedc gfedc gfedc gfedc

Hur är det med elmarknaden, egentligen?<!> <style type="text/css"> #mainbanner display:none; </style>

Visste du att du får välja bland elleverantörer?Ja, det visste jag Jag var inte helt säker på det Nej, det visste jag inte

gfedc gfedc gfedc

Hur tror du att de flesta elleverantörer gör när du köper grön el. Produceras den verkligen från förnybara resurser?

gfedc Ja, det finns Lag som säkerställer det

gfedc Ja, jag tror på elleverantörerna

gfedc Mer eller mindre

gfedc Nej, jag kan inte lita på det helt och hållet

gfedc Nej, att köpa "grön el" kostar mer pengar men gör egentligen ingen differens

Till sist<!> <style type="text/css"> #mainbanner display:none; </style>

Vilken typ av elavtal har du idag?Konventionell mix Förnybara källor Jag är inte säker på det

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Om du väljer el från förnybara resurser, skulle du tycka om en symbol (t.ex. en logotyp på en välkomstpresent) som gör ditt miljövänliga el avtal mer synligt?

Ja Nej Jag skulle inte välja el från förnybara resurser

gfedc gfedc gfedc

Om ja, vad tycker du vore ett bra sätt att göra el avtalet mer synligt?

_______________________________________________________________________________________________________________________________________________________________________________________________________________

TACK för att Du bidrog i studien!<!> <style type="text/css"> #mainbanner display:none; </style> Dina svar är anonyma, men lämna gärna din e postadress om du vill få en sammanfattning av resultat eller inbjudan till presentation av projektet i slutet av maj.

_________________________________

TACK för att Du bidrog i studien! <!> <style type="text/css"> #mainbanner display:none; </style> Vi uppskattar din hjälp. Tänk på att det var ett fingerat erbjudande utan inflytande på ditt verkliga el avtal. <br> <br> SWEpower är ett påhittat bolag, men det är faktiskt sant att du kan välja bland drygt 120 elbolag i Sverige. På nätet eller även via telefon går det enkelt och tar dig enbart några minuter. <br> Om du vill jämföra de olika erbjudanden som gäller för dig, då föreslår vi att du tittar in på http://www.elskling.se <br> Väljer du fastpris så får du ett garanterat pris per kWh över hela bindningstiden och du behöver inte oroa dig för varierande el priser. <br> <br> Väljer du rörligt el pris så betalar du mindre per kWh, men du tar risken att priset som du betalar ökar när elen blir dyrare på börsen. Vanligtvis går elpriser upp kalla dagar när många behöver extra energi för att värma upp hus samt lunch och kvällstimmer då folk lagar mat eller tittar på TV. <br> Rörligt pris är dock den vanligaste avtalsformen i Sverige. <br> <br> Köper du miljövänlig el, t.ex. vindkraft, då måste bolagen bevisa att de producerar (eller köper in) så mycket som du förbrukar från just vindkraft. <br> Dvs om fler kunder köper vindkraft än bolaget kan erbjuda, då måste nya vindkraftanläggningar byggas. <br> Fler information och nyttiga tips får du från Energimarknadsinspektionen, du hittar dem här: http://www.ei.se/elpriskollen/ <br> <br> Lycka till med att hitta el avtalet och leverantören som passar för dig! <br> <br> <br> Kontaktinformation: <br> Raphael Hanimann <br> Examensarbetare <br> +46 (0)700 66 42 97 <br> [email protected] <br> [email protected] <br> <br>

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Appendix III - Survey: Control Scenario

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Välkommen, elköpare <!> <style type="text/css"> #mainbanner display:none; </style> I Sverige kommer el att vara en del i de viktigaste debatterna i sommar. Man kan förvänta sig viktiga politiska diskussioner och beslut samt att ämnet blir mycket stort i pressen. <br> <br> Den här undersökningen skickas även till <strong>fler respondenter i din kommun</strong>, så att vi kan jämföra olika kommuner. <br> Du kan, med andra ord förvänta dig att det <strong>oftare handlar om el när du pratar med folk framöver.</strong> <br> <br> På Sveriges lantbruksuniversitet (SLU) och Uppsala universitet vill vi just undersöka <strong>dina åsikter</strong> om elmarknaden och hur hushåll reagerar på olika erbjudanden. <br> <br> På följande sida får du ett fingerat erbjudande från vårt påhittade elbolag SWEpower. Välj det alternativ som är mest attraktivt om du skulle teckna ett nytt avtal idag. <br> <br> För att göra ditt tänkta elavtal mer synligt får du även välja en välkomstpresent. Den hjälper dig med el i ditt hem och <strong>visar även vilken el ditt hushåll drivs på</strong> för din familj, dina rumskompisar, gäster och grannar. <br> <br> <br> Tänk på att allt är <strong>anonymt</strong> och att det bara tar ett <strong>fåtal klickar</strong> att fylla i. Det är ändå viktigt att du svarar på ett seriöst sätt, dvs tänker att du verkligen måste köpa det erbjudandet som du väljer. <br> <br> <br> <br> Obs! Projektet är akademisk forskning och del av ett examensarbete vid Sveriges lantbruksuniversitet (SLU) och Uppsala universitet. Det finns inga företag involverade och din epostadress kommer inte att sparas av systemet. <br> <br>

Tre olika alternativ för digPå följande sida får du välja ett av våra tänkta erbjudanden från vårt påhittade elbolag SWEpower. Välj det alternativ som är mest attraktivt om du skulle teckna ett nytt avtal idag. Erbjudandena är tänkta. Vi har skapat dem, men de liknar dem som idag finns att välja mellan på el marknaden. Tänk på att som ny kund skulle du även få en välkomstpresent med logotypen för precis det el avtal som du väljer på nästa sida. Det hjälper dig med el konsumtion och visar upp vilkenenergi ditt hushåll drivs på.

Vilket elavtal skulle du välja?I dessa exempel är alla avtal 1 årsavtal med fast pris. Dvs att priset du betalar per kWh är samma året runt och du kan bryta ditt avtal efter ett år utan avgift. Tänk på att som ny kund skulle du även få en välkomstpresent med logotypen för precis det el avtal som du väljer på nästa sida.


gfedc gfedc gfedc

Välj din välkomstpresent<!> <style type="text/css"> #mainbanner display:none; </style> Tänk att SWEpower skulle ge dig en välkomstpresent. Välj den present du skulle önska. Den kommer med <strong>logotypen från ditt el avtal</strong>, så att den visar upp vilken energi ditt hushåll drivs på.






















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gfedc Nej, att köpa "grön el" kostar mer pengar men gör egentligen ingen skillnad



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Appendix IV - Survey: Symbol Scenario A

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Välkommen, elköpare <!> <style type="text/css"> #mainbanner display:none; </style> I Sverige kommer el att vara en del i de viktigaste debatterna i sommar. Man kan förvänta sig viktiga politiska diskussioner och beslut samt att ämnet blir mycket stort i pressen. <br> Den här undersökningen skickas även till <strong>fler respondenter i din kommun</strong>, så att vi kan jämföra olika kommuner. <br> Du kan, med andra ord förvänta dig att det <strong>oftare handlar om el när du pratar med folk framöver.</strong> <br> På Sveriges lantbruksuniversitet (SLU) och Uppsala universitet vill vi just undersöka <strong>dina åsikter</strong> om elmarknaden och hur hushåll reagerar på olika erbjudanden. <br> <br> På följande sida får du ett fingerat erbjudande från vårt påhittade elbolag SWEpower. Välj det alternativ som är mest attraktivt om du skulle teckna ett nytt avtal idag. <br> <br> För att göra ditt tänkta elavtal mer synligt får du även välja en välkomstpresent. Den hjälper dig med el i ditt hem och <strong>visar även vilken el ditt hushåll drivs på</strong> för din familj, dina rumskompisar, gäster och grannar. <br> <br> <br> Tänk på att allt är <strong>anonymt</strong> och att det bara tar ett <strong>fåtal klickar</strong> att fylla i. Det är ändå viktigt att du svarar på ett seriöst sätt, dvs tänker att du verkligen måste köpa det erbjudandet som du väljer. <br> <br> <br> <br> Obs! Projektet är akademisk forskning och del av ett examensarbete vid Sveriges lantbruksuniversitet (SLU) och Uppsala universitet. Det finns inga företag involverade och din epostadress kommer inte att sparas av systemet. <br> <br>

Tre olika alternativ för digPå följande sida får du välja ett av våra tänkta erbjudanden från vårt påhittade elbolag SWEpower. Välj det alternativ som är mest attraktivt om du skulle teckna ett nytt avtal idag. Erbjudandena är tänkta. Vi har skapat dem, men de liknar dem som idag finns att välja mellan på el marknaden. Tänk på att som ny kund skulle du även få en välkomstpresent med logotypen för precis det el avtal som du väljer på nästa sida. Det hjälper dig med el konsumtion och visar upp vilkenenergi din hushåll drivs på.

Vilket elavtal skulle du välja?I dessa exempel är alla avtal 1 årsavtal med fast pris. Dvs att priset du betalar per kWh är samma året runt och du kan bryta ditt avtal efter ett år utan avgift. Tänk på att som ny kund skulle du även få en välkomstpresent med logotypen för precis ditt el avtal som du väljer på nästa sida.


gfedc gfedc gfedc

Välj din välkomstpresent<!> <style type="text/css"> #mainbanner display:none; </style> Tänk att SWEpower skulle ge dig en välkomstpresent. Välj den present du skulle önska. Den kommer med <strong>logotypen från ditt el avtal</strong>, så att den visar upp vilken energi din hushåll drivs på.

Dörrskylt Kylskåp magnet Klisterlappar (t.ex. för brevlådan eller bilen) Epostsignatur


Du har gjort ditt val, vad blev viktigast för ditt val?<!> <style type="text/css"> #mainbanner display:none; </style> Vänligen värdera följande fem kriterierna efter hur viktiga dem är för dig.






Vad blir viktigt när du väljer ett elavtal nästa gång?<!> <style type="text/css"> #mainbanner display:none; </style> Vänligen värdera följande fem kriterierna efter hur viktiga dem är för dig.

1 minst viktigt 2 mindre viktigt 3 viktigt 4 mycket viktigt 5 viktigast Produktionssätt av elen borde passa till mina värderingar gfedc gfedc gfedc gfedc gfedc



Elleverantören borde dela mina värderingar gfedc gfedc gfedc gfedc gfedc




El från förnybara resurser passar in min världsåskådning gfedc gfedc gfedc gfedc gfedc





gfedc gfedc gfedc









gfedc gfedc gfedc

Om du väljer el från förnybara resurser, skulle du tycka om en symbol (t.ex. en välkomstpresent) som gör ditt miljövänliga elavtal mer synligt?Ja Nej Jag skulle inte välja el från förnybara resurser

gfedc gfedc gfedc


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Appendix V - Survey: Symbol Scenario B

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gfedc gfedc gfedc























gfedc gfedc gfedc









gfedc gfedc gfedc


gfedc gfedc gfedc


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gfedc gfedc gfedc























gfedc gfedc gfedc









gfedc gfedc gfedc


gfedc gfedc gfedc


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Consumer Behaviour in Renewable Electricity628424/... · 2013-06-13 · Abstract: A higher...

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