Lessons learned from renewable electricity marketing attempts: A case study

doi:10.1016/j.bushor.2008.01.005

Business Horizons

Volume 51, Issue 3, May–June 2008, Pages 181-190

https://doi.org/10.1016/j.bushor.2008.01.005 Get rights and content

Abstract

The choice of subscribing to renewable electricity has been available to Australian households for more than a decade, yet consumer uptake remains low for some green marketers. This case study uses a retailer's perspective to examine the implementation of a green marketing program for a renewable electricity retailer. Based on interviews, internal company documentation, and secondary research, findings show that effective differentiation for renewable energy is required to increase consumer involvement levels and the likelihood of consideration. While consumers lack understanding of, and interest in, renewable energy, the marketing program relied on customers to seek information. It was apparent the success of green marketing programs depends on the integration of education into a carefully targeted marketing program emphasizing functional and emotional values to differentiate renewable energy and simplify consumer decision-making processes.

Section snippets

Renewable electricity marketing

The appeal of “clean” electricity has increased globally with the continued rise in consumer apprehension about climate change and mounting oil prices. Forecasts depict annual increases for businesses within the clean energy sector at between 20–30%, illustrating the significance of this area to economic growth (“Tilting at Windmills,” 2006). Environmental consciousness has evolved into a societal norm as both consumers and firms aim to accept responsibility for the consequences of consumption.

Influences on renewable electricity marketing

Renewable electricity marketing is defined as the advocacy of providing electricity generated through environmentally friendly or sustainable means, including solar, wind, hydro, and bioenergy or biomass. For the purposes of this study customers are deemed to be household customers. The renewable electricity industry has published studies that focus on conflicts within the industry that have led to poor uptake (e.g., National Green Power Accreditation Program Quarterly, 2004). These studies

Impediments to adoption

In-depth interviews with marketers in the case firm revealed three main impediments to the adoption of renewable electricity by consumers. Those impediments included a failure to segment the market, low consumer awareness and knowledge, and a failure to educate customers.

Lessons learned

Perceptions and attitudes have been shown to impact behaviors and innovation adoption.

Understanding consumers' attitudes towards an innovative product provides two key benefits. First, strengths and weaknesses in the innovation attributes can be identified and managed effectively. Second, more control can be imposed on the marketing strategy in order that the innovation is made attractive to the most receptive audience. (Faiers & Neame, 2006, p. 1800)

The experience of this retailer provides

Acknowledgment

The authors thank anonymous Association for Consumer Research (ACR Asia Pacific) reviewers and Business Horizons Editor Catherine M. Dalton for their helpful comments on earlier versions of this work.

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Lessons learned from renewable electricity marketing attempts: A case study

Abstract

Section snippets

Renewable electricity marketing

Influences on renewable electricity marketing

Impediments to adoption

Lessons learned

Acknowledgment

Energy Policy

Journal of Business Research

Journal of Business Research

Energy Policy

Journal of Business Research

Journal of Business Research

Journal of Business Research

Journal of Business Research

Understanding attitudes and predicting social behavior

Internet activity, Australia (8153.0)

Attitudes, intentions, and behavior: A test of some key hypotheses

Journal of Personality and Social Psychology

The diffusion of energy efficiency innovations among residential energy consumers

New Zealand Economic Papers

The faltering marketing concept

Journal of Marketing

Australia plays catch up in the world's fastest growing agricultural industry

Green power marketing abroad: Recent trends

SERVPERF versus SERVQUAL: Reconciling performance-based and perceptions-minus-expectations measurement of service quality

Journal of Marketing

Building theories from case studies

Academy of Management Review

Publication of price and service information by energy retailers

Consumer psychology for marketing

Sustainable marketing: Managerial-ecological issues

Policy forum: The diffusion of new technology

The Economic Journal

Fear appeals, individual differences, and environmental concern

The Journal of Environmental Education