Title: How punishment and reward increase customer acceptance of demand response in the energy industry
Authors : Kuenzel, Karoline
Loock, Moritz
Cometta, Claudio
Published in : Academy of management annual meeting proceedings
Volume(Issue) : 2014
Issue : 1
Conference details: 74th Annual Meeting of the Academy of Management, Philadelphia, 01. August
Publisher / Ed. Institution : Academy of Management
Issue Date: 2014
License (according to publishing contract) : Licence according to publishing contract
Type of review: Not specified
Language : English
Subject (DDC) : 333.7: Land, recreational areas and energy
Abstract: Following national and international policy guidelines for energy efficiency and in order to optimize supply and demand, electric utilities introduce demand response programs (DR). However firms struggle how to best help consumers to accept these programs. In the light of recent theories of decision-making that favour heuristic over information-based decision strategies, the paper at hand investigates the role of punishment and reward for consumer acceptance of DR. We find that although electric utilities design DR programs mostly based on rewards (assumingly in fear of consumer loyalty), DR regimes based on punishment appear more effective, without jeopardizing loyalty of consumers. Thus, in the light of prospect theory our data indicates that if firms help customers to avoid a loss in form of a punishment this has a larger positive impact on the intended behaviour than if firms help customers to gain a reward. Implications for practice and especially a demand-based view on environmental management apply.
Departement: School of Management and Law
Organisational Unit: Institute of Innovation and Entrepreneurship (IIE)
Publication type: Conference other
DOI : 10.5465/ambpp.2014.15790abstract
ISSN: 0065-0668
2151-6561
URI: https://digitalcollection.zhaw.ch/handle/11475/16418
Appears in Collections:Publikationen School of Management and Law

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