Market Segmentation for Green Electricity Marketing Results of a Choice-Based Conjoint Analysis with German Electricity Consumers

Consumers have the power to contribute to creating a more sustainable future by subscribing to green electricity tariffs. To reach consumers “beyond the eco-niche,” identifying the drivers that positively influence the adoption of green electricity is of fundamental importance. This chapter examines various factors that help to explain the extent to which green electricity subscribers differ from those who display strong preferences toward green electricity but have not yet “walked the talk.” By making use of a latent class segmentation analysis based on choice-based conjoint data, this chapter identifies three groups of potential green electricity adopters with varying degrees of preference for renewable energy. Findings indicate that sociodemographic factors play a marginal role in explaining the differences between green electricity subscribers and potential adopters, with the exception that actual adopters tend to be better educated. Analysis of psychographic and behavioral features reveals that adopters tend to perceive consumer effectiveness to be higher, tend to estimate lower prices for green electricity tariffs, are willing to pay significantly more for other eco-friendly products, and are more likely to have recently changed their electricity contract than nonadopters.