IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i2p306-d1314882.html
   My bibliography  Save this article

Switching Behavior in the Polish Energy Market—The Importance of Resistance to Change

Author

Listed:
  • Ilona Lipowska

    (Institute of Management and Quality Sciences, Maria Curie-Sklodowska University, Pl. M. Curie-Skłodowskiej 5, 20-031 Lublin, Poland)

  • Marcin Lipowski

    (Institute of Management and Quality Sciences, Maria Curie-Sklodowska University, Pl. M. Curie-Skłodowskiej 5, 20-031 Lublin, Poland)

  • Dariusz Dudek

    (Institute of Management and Quality Sciences, Maria Curie-Sklodowska University, Pl. M. Curie-Skłodowskiej 5, 20-031 Lublin, Poland)

  • Radosław Mącik

    (Institute of Management and Quality Sciences, Maria Curie-Sklodowska University, Pl. M. Curie-Skłodowskiej 5, 20-031 Lublin, Poland)

Abstract

(1) Background: Consumer switching behavior was one of the expected outcomes of the ongoing competitive reform in the European electricity industry. The aim of this study is to analyze the factors that affect the intention of consumers to switch from their incumbent supplier, who has a strong market position. This article follows the trend of describing and analyzing the situation of incumbent energy suppliers after energy market liberalization. (2) Methods: The research goal was to verify seven research hypotheses regarding switching intentions on the Polish energy market. For this purpose, structural equation modeling analysis using AMOS 29 was conducted. The survey was carried out in 2020, before the SARS-CoV-2 pandemic in Poland, and the research sample consisted of 1216 adults (clients of the incumbent supplier). (3) Results: Special attention was given to customers’ resistance to change, as it was found to be a factor that can impact customers’ decisions to switch, both directly and indirectly. Resistance to change can affect the trust that customers have in their current supplier’s brand, their perception of the costs involved in switching, and their intention to switch. The research also highlighted the importance of brand trust and perceived ease of change in the customers’ decision-making process. (4) Conclusions: An important factor that reduces switching behavior is the customer’s resistance to change; brand trust is a valuable asset that also reduces switching intention.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:2:p:306-:d:1314882
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/2/306/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/2/306/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Watson, Nicole Elizabeth & Huebner, Gesche & Fell, Michael James & Shipworth, David, 2020. "Two energy suppliers are better than one: survey experiments on consumer engagement with local energy in GB," SocArXiv e9nyu, Center for Open Science.
    2. Stanis³aw Brzeziñski & Krzysztof Zborowski & Pawel Pietrasienski, 2013. "The Effect Of The Liberalization Of Electricity Market In Poland," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 7(1), pages 151-159, June.
    3. 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).
    4. Blut, Markus & Beatty, Sharon E. & Evanschitzky, Heiner & Brock, Christian, 2014. "The Impact of Service Characteristics on the Switching Costs–Customer Loyalty Link," Journal of Retailing, Elsevier, vol. 90(2), pages 275-290.
    5. 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).
    6. Watson, Nicole E. & Huebner, Gesche M. & Fell, Michael J. & Shipworth, David, 2020. "Two energy suppliers are better than one: Survey experiments on consumer engagement with local energy in GB," Energy Policy, Elsevier, vol. 147(C).
    7. Paul L. Joskow, 2008. "Lessons Learned from Electricity Market Liberalization," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 9-42.
    8. Adam Rudzewicz & Anna Strychalska-Rudzewicz, 2021. "The Influence of Brand Trust on Consumer Loyalty," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 454-470.
    9. Kulczycka, Joanna & Lipinska, Aleksandra, 2003. "Barriers to liberalisation of the Polish energy-sector," Applied Energy, Elsevier, vol. 76(1-3), pages 229-238, September.
    10. Nazim Hajiyev & Manafova Mansura & Elena Sverdlikova & Roman Safronov & Tatyana Vityutina, 2021. "Oligopoly Trends in Energy Markets: Causes, Crisis of Competition, and Sectoral Development Strategies," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 392-400.
    11. 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).
    12. Jason A. Hubbart, 2023. "Organizational Change: The Challenge of Change Aversion," Administrative Sciences, MDPI, vol. 13(7), pages 1-9, July.
    13. 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.
    Full references (including those not matched with items on IDEAS)

    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. 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).
    2. 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".
    3. Simshauser, Paul, 2018. "Price discrimination and the modes of failure in deregulated retail electricity markets," Energy Economics, Elsevier, vol. 75(C), pages 54-70.
    4. 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.
    5. Peter D. Lunn & Marek Bohacek, 2017. "Price transparency in residential electricity: Experiments for regulatory policy," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(2), pages 31-37, September.
    6. Nogata, Daisuke, 2022. "Determinants of household switching between natural gas suppliers: Evidence from Japan," Utilities Policy, Elsevier, vol. 76(C).
    7. Muyi Yang & Yuanying Chi & Kristy Mamaril & Adam Berry & Xunpeng Shi & Liming Zhu, 2020. "Communication-Based Approach for Promoting Energy Consumer Switching: Some Evidence from Ofgem’s Database Trials in the United Kingdom," Energies, MDPI, vol. 13(19), pages 1-16, October.
    8. Ziegler, Andreas, 2020. "Heterogeneous preferences and the individual change to alternative electricity contracts," Energy Economics, Elsevier, vol. 91(C).
    9. 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.
    10. 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.
    11. Amenta, Carlo & Aronica, Martina & Stagnaro, Carlo, 2022. "Is more competition better? Retail electricity prices and switching rates in the European Union," Utilities Policy, Elsevier, vol. 78(C).
    12. 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).
    13. 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).
    14. Carthy, Philip & Lunn, Pete & Lyons, Sean, 2018. "Demographic variation in active consumer behaviour: Who searches most for retail broadband services?," MPRA Paper 90366, University Library of Munich, Germany.
    15. Stefania Sitzia & Jiwei Zheng & Daniel Zizzo, 2015. "Inattentive consumers in markets for services," Theory and Decision, Springer, vol. 79(2), pages 307-332, September.
    16. Gordon, Joel A. & Balta-Ozkan, Nazmiye & Nabavi, Seyed Ali, 2023. "Price promises, trust deficits and energy justice: Public perceptions of hydrogen homes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    17. 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).
    18. 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).
    19. 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.
    20. Moniche-Bermejo, Ana, 2022. "Do collective energy switching campaigns engage vulnerable households? Evidence from The Big Switch," Energy Policy, Elsevier, vol. 167(C).

    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:gam:jeners:v:17:y:2024:i:2:p:306-:d:1314882. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.