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Assessing the Impact of Urban Lifestyle and Consumption Values on Conversion Intention: A Study towards Energy Sustainability

Author

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  • Hilda Hilmiyati-Mas’adah

    (PT Perusahaan Listrik Negara (Persero), Jakarta 12160, Indonesia
    Faculty of Economics and Business, Brawijaya University, Jakarta 12870, Indonesia)

  • Achmad Sudiro

    (Faculty of Economics and Business, Brawijaya University, Jakarta 12870, Indonesia)

  • Fatchur Rohman

    (Faculty of Economics and Business, Brawijaya University, Jakarta 12870, Indonesia)

  • Agung Yuniarinto

    (Faculty of Economics and Business, Brawijaya University, Jakarta 12870, Indonesia)

  • Dzikri Firmansyah Hakam

    (School of Business and Management, Bandung 40132, Indonesia)

  • Herry Nugraha

    (PT Perusahaan Listrik Negara (Persero), Jakarta 12160, Indonesia)

Abstract

Energy converter innovation has shifted the world’s cooking energy from wood, coal, kerosene, and liquid petroleum gas (LPG) to electricity. This paper identifies the factors influencing customers’ intention to switch their cooking energy from LPG to electricity. The study proposes a conversion intention (COIN) framework with urban convenience and perceived alternative value (PAV) as predictor variables and examines the mooring effect of conversion cost to COIN. The data were gathered by a cross-sectional survey, and the PLS-SEM approach was applied to 194 LPG users in Jakarta, Indonesia. The results reveal that PAV mainly determines cooking energy conversion and partially mediates the relationship between urban convenience and COIN. Conversion cost indicates no significant moderating effect of PAV on COIN. By conducting this study, we contribute to the literature by integrating the theory of consumption value (TCV) with the value-based adoption model (VAM), generating the indicators of urban convenience based on time-oriented advertisement categories and applying the consumption values of the TCV as the dimensions of PAV on the VAM framework. The findings of the paper provide a more in-depth understanding of customers’ motivations when switching from LPG to electric power, particularly for household cooking energy, as well as opportunities for the government and electronic manufacturers to promote more sustainable energy consumption patterns.

Suggested Citation

  • Hilda Hilmiyati-Mas’adah & Achmad Sudiro & Fatchur Rohman & Agung Yuniarinto & Dzikri Firmansyah Hakam & Herry Nugraha, 2023. "Assessing the Impact of Urban Lifestyle and Consumption Values on Conversion Intention: A Study towards Energy Sustainability," Sustainability, MDPI, vol. 15(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:8:p:6549-:d:1121981
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