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The Role of Attitudes and Marketing in Consumer Behaviours in the British Retail Electricity Market

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  • Miguel Flores and Catherine Waddams Price

Abstract

We examine characteristics associated with consumer (dis)engagement in the residential electricity market, a topic of increasing policy interest and intervention, introducing consumer attitudes and marketing recall as new factors. General attitudes are closely associated with electricity market activity, with considerable variation in the strength and statistical significance of these relationships, indicating very different motivations amongst consumers. Recall of direct marketing routes has little identifiable effect, while advice of family and friends is influential. We identify implications for communication by both suppliers and policy makers seeking to improve the functioning of such markets, including the necessity for a variety of approaches.

Suggested Citation

  • Miguel Flores and Catherine Waddams Price, 2018. "The Role of Attitudes and Marketing in Consumer Behaviours in the British Retail Electricity Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    • Handle: RePEc:aen:journl:ej39-4-waddams
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    Cited by:

    1. Xiaoping He & David Reiner, 2018. "Consumer Engagement in Energy Markets: The Role of Information and Knowledge," Working Papers EPRG 1835, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Andreas Ziegler, 2018. "Heterogeneous preferences and the individual change to alternative electricity contracts," MAGKS Papers on Economics 201827, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Paul Simshauser, 2021. "Lessons from Australia's National Electricity Market 1998-2018: strengths and weaknesses of the reform experience," Chapters, in: Jean-Michel Glachant & Paul L. Joskow & Michael G. Pollitt (ed.), Handbook on Electricity Markets, chapter 9, pages 242-286, Edward Elgar Publishing.
    4. Stephen Littlechild, 2020. "The CMA’s assessment of customer detriment in the UK retail energy market," Journal of Regulatory Economics, Springer, vol. 57(3), pages 203-230, June.
    5. Di Leo, Simone & Chicca, Marta & Daraio, Cinzia & Guerrini, Andrea & Scarcella, Stefano, 2024. "A robust benchmarking of direct margin in Italy's energy retail markets," Utilities Policy, Elsevier, vol. 86(C).
    6. Massimo Dragotto & Marco Magnani & Paola Valbonesi, 2021. "Consumer inertia and firm incumbency in liberalised retail electricity markets: an empirical investigation," "Marco Fanno" Working Papers 0277, Dipartimento di Scienze Economiche "Marco Fanno".
    7. De Mel, S. & Munshi, K. & Reiche, S. & Sabourian, H., 2020. "Herding in Quality Assessment: An Application to Organ Transplantation," Cambridge Working Papers in Economics 2052, Faculty of Economics, University of Cambridge.
    8. Erdogan, Murside Rabia & Camgoz, Selin Metin & Karan, Mehmet Baha & Berument, M. Hakan, 2022. "The switching behavior of large-scale electricity consumers in The Turkish electricity retail market," Energy Policy, Elsevier, vol. 160(C).
    9. Esplin, Ryan & Best, Rohan & Scranton, Jessica & Chai, Andreas, 2022. "Who pays the loyalty tax? The relationship between socioeconomic status and switching in Australia's retail electricity markets," Energy Policy, Elsevier, vol. 164(C).
    10. Ilona Lipowska & Marcin Lipowski & Dariusz Dudek & Radosław Mącik, 2024. "Switching Behavior in the Polish Energy Market—The Importance of Resistance to Change," Energies, MDPI, vol. 17(2), pages 1-14, January.
    11. Huisman, Hester M. & de Haan, Evert & Mulder, Machiel & Wieringa, Jaap E., 2024. "The combined effect of regulators’ and retailers’ actions to stimulate consumer participation in retail energy markets," Energy Policy, Elsevier, vol. 184(C).
    12. Simshauser, Paul, 2018. "Price discrimination and the modes of failure in deregulated retail electricity markets," Energy Economics, Elsevier, vol. 75(C), pages 54-70.
    13. Biancardi, Andrea & Di Castelnuovo, Matteo & Staffell, Iain, 2021. "A framework to evaluate how European Transmission System Operators approach innovation," Energy Policy, Elsevier, vol. 158(C).
    14. Esplin, Ryan & Davis, Ben & Rai, Alan & Nelson, Tim, 2020. "The impacts of price regulation on price dispersion in Australia's retail electricity markets," Energy Policy, Elsevier, vol. 147(C).
    15. McGowan, Féidhlim & Papadopoulos, Alexandros & Lunn, Pete, 2023. "Who switches and why? A diagnostic survey of retail financial services in Ireland," Papers WP748, Economic and Social Research Institute (ESRI).
    16. Byrne, David P. & Martin, Leslie A., 2021. "Consumer search and income inequality," International Journal of Industrial Organization, Elsevier, vol. 79(C).
    17. Nogata, Daisuke, 2022. "Determinants of household switching between natural gas suppliers: Evidence from Japan," Utilities Policy, Elsevier, vol. 76(C).
    18. David Deller & Monica Giulietti & Graham Loomes & Catherine Waddams Price & Anna Moniche & Joo Young Jeon, 2021. "Switching Energy Suppliers: It’s Not All About the Money," The Energy Journal, , vol. 42(3), pages 1-26, May.
    19. Ziegler, Andreas, 2020. "Heterogeneous preferences and the individual change to alternative electricity contracts," Energy Economics, Elsevier, vol. 91(C).
    20. Li, He & Fang, Debin & Zhao, Chaoyang, 2024. "Retail competition among multi-type retail electric providers in social networks," Energy Economics, Elsevier, vol. 132(C).
    21. Tomasz Rokicki & Piotr Bórawski & Barbara Gradziuk & Piotr Gradziuk & Aldona Mrówczyńska-Kamińska & Joanna Kozak & Danuta Jolanta Guzal-Dec & Kamil Wojtczuk, 2021. "Differentiation and Changes of Household Electricity Prices in EU Countries," Energies, MDPI, vol. 14(21), pages 1-21, October.
    22. Fontana, Magda & Iori, Martina & Nava, Consuelo Rubina, 2019. "Switching behavior in the Italian electricity retail market: Logistic and mixed effect Bayesian estimations of consumer choice," Energy Policy, Elsevier, vol. 129(C), pages 339-351.

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    JEL classification:

    • F0 - International Economics - - General

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