Perceived price complexity of dynamic energy tariffs: An investigation of antecedents and consequences

Layer, Patrick; Feurer, Sven; Jochem, Patrick (2017). Perceived price complexity of dynamic energy tariffs: An investigation of antecedents and consequences Energy Policy, 106, pp. 244-254. 10.1016/j.enpol.2017.02.051

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Dynamic tariffs have the potential to contribute to a successful shift from conventional to renewable energies, but tapping this potential in Europe ultimately depends on residential consumers selecting them. This study proposes and finds that consumer reactions to dynamic tariffs depend on the level of perceived price complexity that represents the cognitive effort consumers must engage in to compute the overall bill amount. An online experiment conducted with a representative sample of 664 German residential energy consumers examines how salient characteristics of dynamic tariffs contribute to perceived price complexity. Subsequently, a structural equation model (SEM) reveals that the depth of information processing is central to understand how price complexity relates to consumers’ behavioral intentions. The results suggest that it will be challenging to convince European consumers to select complex dynamic tariffs under the current legal framework. Policymakers will need to find ways to make these tariffs more attractive.

Item Type:	Journal Article (Original Article)
Division/Institute:	Business School > Business Foundations and Methods Business School > Business Foundations and Methods > Marketing Business School Business School > Institute for Marketing & Global Management > Marketing
Name:	Layer, Patrick; Feurer, Sven and Jochem, Patrick
Subjects:	H Social Sciences > H Social Sciences (General)
ISSN:	03014215
Language:	English
Submitter:	Sven Feurer
Date Deposited:	03 Feb 2021 11:09
Last Modified:	25 Sep 2021 02:18
Publisher DOI:	10.1016/j.enpol.2017.02.051
Uncontrolled Keywords:	Dynamic tariffs, Price complexity, Information processing, Consumer, Perception
ARBOR DOI:	10.24451/arbor.14187
URI:	https://arbor.bfh.ch/id/eprint/14187