IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v69y2022ics0969698922001874.html
   My bibliography  Save this article

Determinants of switching intention in the electricity markets - An integrated structural model approach

Author

Listed:
  • Hussain, Shahid
  • Seet, Pi-Shen
  • Ryan, Maria
  • Iranmanesh, Mohammad
  • Cripps, Helen
  • Salam, Abdul

Abstract

This study adopts an integrated approach and combines the theory of planned behavior and push-pull theory to unpack the antecedents of customer switching intention in a contextual setting (Western Australia) that has a regulated electricity market. Partial least squares structural equation modeling was used to analyze data from a survey of 405 retail electricity consumers, which reveals that perceived relative price, electronic word-of-mouth, customer-based reputation of a service provider, past switching experience, and subjective norms significantly influence attitude toward switching and switching intention. Our findings contribute to the literature on retail electricity markets by showing the importance of customer-based reputation and positive electronic word-of-mouth in shaping consumers’ attitude and intention toward switching their electricity providers. The results also provide insights for electricity retailers to design better offerings and control customer switching.

Suggested Citation

  • Hussain, Shahid & Seet, Pi-Shen & Ryan, Maria & Iranmanesh, Mohammad & Cripps, Helen & Salam, Abdul, 2022. "Determinants of switching intention in the electricity markets - An integrated structural model approach," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
  • Handle: RePEc:eee:joreco:v:69:y:2022:i:c:s0969698922001874
    DOI: 10.1016/j.jretconser.2022.103094
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698922001874
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2022.103094?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Arkesteijn, Karlijn & Oerlemans, Leon, 2005. "The early adoption of green power by Dutch households: An empirical exploration of factors influencing the early adoption of green electricity for domestic purposes," Energy Policy, Elsevier, vol. 33(2), pages 183-196, January.
    2. Amron Amron & Usman Usman & Ali Mursid, 2018. "The role of electronic word of mouth, conventional media, and subjective norms on the intention to purchase Sharia insurance services," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 23(3), pages 218-225, December.
    3. Hollebeek, Linda D. & Abbasi, Amir Zaib & Schultz, Carsten D. & Ting, Ding Hooi & Sigurdsson, Valdimar, 2022. "Hedonic consumption experience in videogaming: A multidimensional perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    4. Levy, Daniel & Snir, Avichai & Gotler, Alex & Chen, Haipeng (Allan), 2020. "Not all price endings are created equal: Price points and asymmetric price rigidity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue forthcomi.
    5. Conradie, Peter D. & De Ruyck, Olivia & Saldien, Jelle & Ponnet, Koen, 2021. "Who wants to join a renewable energy community in Flanders? Applying an extended model of Theory of Planned Behaviour to understand intent to participate," Energy Policy, Elsevier, vol. 151(C).
    6. Nogata, Daisuke, 2022. "Determinants of household switching between natural gas suppliers: Evidence from Japan," Utilities Policy, Elsevier, vol. 76(C).
    7. Lins Ferreira, Vinicius & Pereira da Veiga, Cássia Rita & Kudlawicz-Franco, Claudineia & Scalercio, Priscila & Ramires, Yohanna & Pontarolo, Roberto & Carvalho, Denise Maria W. & da Veiga, Claudimar , 2017. "Generic drugs in times of economic crisis: Are there changes in consumer purchase intention?," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 1-7.
    8. Shin, Kong Joo & Managi, Shunsuke, 2017. "Liberalization of a retail electricity market: Consumer satisfaction and household switching behavior in Japan," Energy Policy, Elsevier, vol. 110(C), pages 675-685.
    9. Roh, Taewoo & Seok, Junhee & Kim, Yaeri, 2022. "Unveiling ways to reach organic purchase: Green perceived value, perceived knowledge, attitude, subjective norm, and trust," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    10. Singh, Reema & Rosengren, Sara, 2020. "Why do online grocery shoppers switch? An empirical investigation of drivers of switching in online grocery," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    11. Elahe Kordi Ghasrodashti, 2018. "Explaining brand switching behavior using pull–push–mooring theory and the theory of reasoned action," Journal of Brand Management, Palgrave Macmillan, vol. 25(4), pages 293-304, July.
    12. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    13. Fange, Kari-Anne, 2022. "Electricity retailing and price dispersion," Energy Economics, Elsevier, vol. 106(C).
    14. Chetna Kudeshia & Amresh Kumar, 2017. "Social eWOM: does it affect the brand attitude and purchase intention of brands?," Management Research Review, Emerald Group Publishing Limited, vol. 40(3), pages 310-330, March.
    15. 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).
    16. Fontana, Magda & Iori, Martina & Nava, Consuelo Rubina, 2017. "Switching Behavior and the Liberalization of the Italian Electricity Retail Market. Logistic and Mixed Effect Bayesian Estimations of Consumer Choice," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201721, University of Turin.
    17. Manh Hung Le & Phuong Mai Nguyen, 2022. "Integrating the Theory of Planned Behavior and the Norm Activation Model to Investigate Organic Food Purchase Intention: Evidence from Vietnam," Sustainability, MDPI, vol. 14(2), pages 1-16, January.
    18. 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).
    19. Konietzny, Jirka & Caruana, Albert & Cassar, Mario L., 2018. "Fun and fair, and I don’t care: The role of enjoyment, fairness and subjective norms on online gambling intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 44(C), pages 91-99.
    20. Chawla, Yash & Chodak, Grzegorz, 2021. "Social media marketing for businesses: Organic promotions of web-links on Facebook," Journal of Business Research, Elsevier, vol. 135(C), pages 49-65.
    21. Ek, Kristina & Söderholm, Patrik, 2010. "The devil is in the details: Household electricity saving behavior and the role of information," Energy Policy, Elsevier, vol. 38(3), pages 1578-1587, March.
    22. Rosen, Marc A. & Dincer, Ibrahim & Kanoglu, Mehmet, 2008. "Role of exergy in increasing efficiency and sustainability and reducing environmental impact," Energy Policy, Elsevier, vol. 36(1), pages 128-137, January.
    23. Arkorful, Vincent Ekow, 2022. "Unravelling electricity theft whistleblowing antecedents using the theory of planned behavior and norm activation model," Energy Policy, Elsevier, vol. 160(C).
    24. Gamble, Amelie & Juliusson, E. Asgeir & Gärling, Tommy, 2009. "Consumer attitudes towards switching supplier in three deregulated markets," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(5), pages 814-819, October.
    25. Yang, Yingkui, 2014. "Understanding household switching behavior in the retail electricity market," Energy Policy, Elsevier, vol. 69(C), pages 406-414.
    26. Nisar, Tahir M. & Prabhakar, Guru & Ilavarasan, P. Vigneswara & Baabdullah, Abdullah M., 2020. "Up the ante: Electronic word of mouth and its effects on firm reputation and performance," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    27. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    28. Su, Lujun & Swanson, Scott R. & Chinchanachokchai, Sydney & Hsu, Maxwell K. & Chen, Xiaohong, 2016. "Reputation and intentions: The role of satisfaction, identification, and commitment," Journal of Business Research, Elsevier, vol. 69(9), pages 3261-3269.
    29. Ek, Kristina & Söderholm, Patrik, 2008. "Households' switching behavior between electricity suppliers in Sweden," Utilities Policy, Elsevier, vol. 16(4), pages 254-261, December.
    30. McDaniel, Tanga M. & Groothuis, Peter A., 2012. "Retail competition in electricity supply—Survey results in North Carolina," Energy Policy, Elsevier, vol. 48(C), pages 315-321.
    31. Wang, Xueqin & Wong, Yiik Diew & Chen, Tianyi & Yuen, Kum Fai, 2022. "An investigation of technology-dependent shopping in the pandemic era: Integrating response efficacy and identity expressiveness into theory of planned behaviour," Journal of Business Research, Elsevier, vol. 142(C), pages 1053-1067.
    32. Sylvaine Castellano & Vincent Dutot, 2017. "Investigating the Influence of E-Word-of-Mouth on E-Reputation," International Studies of Management & Organization, Taylor & Francis Journals, vol. 47(1), pages 42-60, January.
    33. Kaenzig, Josef & Heinzle, Stefanie Lena & Wüstenhagen, Rolf, 2013. "Whatever the customer wants, the customer gets? Exploring the gap between consumer preferences and default electricity products in Germany," Energy Policy, Elsevier, vol. 53(C), pages 311-322.
    34. Andrea Mezger & Pablo Cabanelas & Mª. Jesús López‐Miguens & Francesca Cabiddu & Klaus Rüdiger, 2020. "Sustainable development and consumption: The role of trust for switching towards green energy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3598-3610, December.
    35. Gamel, Johannes & Bauer, Andreas & Decker, Thomas & Menrad, Klaus, 2022. "Financing wind energy projects: An extended theory of planned behavior approach to explain private households’ wind energy investment intentions in Germany," Renewable Energy, Elsevier, vol. 182(C), pages 592-601.
    36. Lee, Wei-Long & Liu, Chih-Hsing & Tseng, Tzu-Wen, 2022. "The multiple effects of service innovation and quality on transitional and electronic word-of-mouth in predicting customer behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    37. Radia, Karan Nilesh & Purohit, Sonal & Desai, Shachi & Nenavani, Jitendra, 2022. "Psychological comfort in service relationships: A mixed-method approach," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    38. Monica Giulietti & Catherine Waddams Price & Michael Waterson, 2005. "Consumer Choice and Competition Policy: a Study of UK Energy Markets," Economic Journal, Royal Economic Society, vol. 115(506), pages 949-968, October.
    39. McLaughlin, Christopher & McCauley, Laura Bradley & Prentice, Garry & Verner, Emma-Jayne & Loane, Sharon, 2020. "Gender differences using online auctions within a generation Y sample: An application of the Theory of Planned Behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 56(C).
    40. Magdalena Six & Franz Wirl & Jaqueline Wolf, 2017. "Information as potential key determinant in switching electricity suppliers," Journal of Business Economics, Springer, vol. 87(2), pages 263-290, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsai, Pei-Hsuan & Tang, Jia-Wei, 2023. "Consumers' switching intention towards E-commerce platforms’ store-to-store pickup services: The application of the extended PPM model," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    2. Adu-Gyamfi, Gibbson & Asamoah, Ama Nyarko & Nketiah, Emmanuel & Obuobi, Bright & Adjei, Mavis & Cudjoe, Dan & Zhu, Bangzhu, 2023. "Reducing waste management challenges: Empirical assessment of waste sorting intention among corporate employees in Ghana," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    3. Li, Chia-Ying & Zhang, Jin-Ting, 2023. "Chatbots or me? Consumers’ switching between human agents and conversational agents," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Itaoka, Kenshi & Chapman, Andrew & Farabi-Asl, Hadi, 2022. "Underpinnings of consumer preferences and participation in Japan's liberalized energy market," Utilities Policy, Elsevier, vol. 76(C).
    2. 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.
    3. 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).
    4. 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).
    5. Xiaoping He & David Reiner, 2015. "Why Do More British Consumers Not Switch Energy Suppliers? The Role of Individual Attitudes," Working Papers EPRG 1515, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    6. Shin, Kong Joo & Managi, Shunsuke, 2017. "Liberalization of a retail electricity market: Consumer satisfaction and household switching behavior in Japan," Energy Policy, Elsevier, vol. 110(C), pages 675-685.
    7. Xiaoping He & David Reiner, 2017. "Why Consumers Switch Energy Suppliers: The Role of Individual Attitudes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    8. Ndebele, Tom & Marsh, Dan & Scarpa, Riccardo, 2019. "Consumer switching in retail electricity markets: Is price all that matters?," Energy Economics, Elsevier, vol. 83(C), pages 88-103.
    9. Schleich, Joachim & Faure, Corinne & Gassmann, Xavier, 2017. "Household electricity contract and provider switching in the EU," Working Papers "Sustainability and Innovation" S14/2017, Fraunhofer Institute for Systems and Innovation Research (ISI).
    10. Nogata, Daisuke, 2022. "Determinants of household switching between natural gas suppliers: Evidence from Japan," Utilities Policy, Elsevier, vol. 76(C).
    11. Carin Cruijsen & Maaike Diepstraten, 2017. "Banking Products: You Can Take Them with You, So Why Don’t You?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 52(1), pages 123-154, October.
    12. Marco Magnani & Fabio M. Manenti & Paola Valbonesi, 2022. "Measuring Switching Costs in the Italian Residential Electricity Market," "Marco Fanno" Working Papers 0258, Dipartimento di Scienze Economiche "Marco Fanno".
    13. Andrea Mezger & Pablo Cabanelas & Mª. Jesús López‐Miguens & Francesca Cabiddu & Klaus Rüdiger, 2020. "Sustainable development and consumption: The role of trust for switching towards green energy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3598-3610, December.
    14. Feldhaus, Christoph & Lingens, Jörg & Löschel, Andreas & Zunker, Gerald, 2022. "Encouraging consumer activity through automatic switching of the electricity contract - A field experiment," Energy Policy, Elsevier, vol. 164(C).
    15. 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".
    16. Janez Dolšak & Nevenka Hrovatin & Jelena Zorić, 2020. "Analysing Consumer Preferences, Characteristics, and Behaviour to Identify Energy-Efficient Consumers," Sustainability, MDPI, vol. 12(23), pages 1-19, November.
    17. Simone Di Leo & Marta Chicca & Cinzia Daraio & Andrea Guerrini & Stefano Scarcella, 2022. "A Framework for the Analysis of the Sustainability of the Energy Retail Market," Sustainability, MDPI, vol. 14(12), pages 1-28, June.
    18. Nketiah, Emmanuel & Song, Huaming & Obuobi, Bright & Adu-Gyamfi, Gibbson & Adjei, Mavis & Cudjoe, Dan, 2022. "Citizens' willingness to pay for local anaerobic digestion energy: The influence of altruistic value and knowledge," Energy, Elsevier, vol. 260(C).
    19. Vesterberg, Mattias, 2018. "The effect of price on electricity contract choice," Energy Economics, Elsevier, vol. 69(C), pages 59-70.
    20. Girod, Bastien & Mayer, Sebastian & Nägele, Florian, 2017. "Economic versus belief-based models: Shedding light on the adoption of novel green technologies," Energy Policy, Elsevier, vol. 101(C), pages 415-426.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:69:y:2022:i:c:s0969698922001874. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.