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Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Engaging customers in demand response programs : the role of reward and punishment in customer adoption in Switzerland
Authors: Gamma, Karoline
Mai, Robert
Cometta, Claudio
Loock, Moritz
et. al: No
DOI: 10.1016/j.erss.2021.101927
Published in: Energy Research & Social Science
Volume(Issue): 74
Issue: 101927
Issue Date: 2021
Publisher / Ed. Institution: Elsevier
ISSN: 2214-6296
Language: English
Subjects: Customer behavior; Demand response; Incentives and disincentives
Subject (DDC): 150: Psychology
333.79: Energy
Abstract: It is challenging to engage customers in demand response programs, which require significant interventions in customers’ normal energy consumption patterns. Moreover, little is known about how customers can be motivated to adopt innovations that promote collective benefits. This research investigates the effectiveness of the two most basic elements of incentive-based policies — reward and punishment — with regard to customer participation in the sustainable energy domain. We counter the prevailing assumptions in innovation and technology research that favor the use of reward rather than punishment to engage customers. Based on a series of experimental studies, we find mixed evidence. It appears that punishment is at least as effective as reward in engaging customers in sustainable technology innovations. Even more importantly, both reward and punishment are shown to overcome concerns relating to technology. Moderated mediation reveals that economic incentives and disincentives ameliorate critical obstacles because customers more strongly favor their own personal benefit over the collective benefit and are more willing for ‘self-serving’ reasons to adopt technology that contributes to collective benefits. The findings of this research thus have novel practical and theoretical implications for energy innovation involving customers.
Fulltext version: Published version
License (according to publishing contract): CC BY 4.0: Attribution 4.0 International
Departement: School of Management and Law
Organisational Unit: Institute of Innovation and Entrepreneurship (IIE)
Appears in collections:Publikationen School of Management and Law

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