Editorial Board

A Refereed Monthly International Journal of Management

A Systematic Review of Literature on Household Consumers’ Intentions of Buying Energy-saving Home Appliances

Author

Abstract

Growing economies, better living standards and technological advancements are all fueling the energy demand. Rampant energy consumption is driving the big wheel of environmental deterioration. To counter the ascending carbon footprints and achieve the sustainability, household sector can make valuable contribution by using environment friendly, energy-saving home appliances. Motive behind this study is to interrogate the existing literature on household consumers’ purchase intentions towards energy-saving appliances, to highlight emerging issues and map out landscape for future researchers. A three stage approach of systematic review was employed by scoping the subject area, executing the research plan and reporting the results. After careful scrutiny of publications from the recent decade, selected studies were analyzed and summarized. The results show that the extant literature covers limited behavioral antecedents and geographical limitations. This study contributes to the body of knowledge by finding gaps in research methodology, highlighting theoretical and geographical limitations and providing suggestions for future research.

Energy saving behavior; Household economics; Energy Efficient Household Appliances; Consumer Purchase Intentions; Systematic Review; Consumer Behavior.

Introduction

World is at the forefront of technological advancement with the aim of building systems that are smart, affordable and efficient. 21st century has witnessed computers size of a room turning into smart chips fitted in the palms of our hands (Rojas-Méndez, Parasuraman, & Papadopoulos, 2017). Similarly home appliances industry is entering a new era of technological innovation followed by a multibillion dollar increase in demand every year (Research & Markets, 2018). Increasing ownership of these appliances is directly adding to energy consumption worldwide. This poses serious challenges for environment conservation and achieving sustainability goals (Ali, Ullah, Akbar, & Akhtar, 2019). Growing economies, better living standards, technological innovations and changes in social structure all are catalyst for billions of household appliances owned around the globe (Urge-Vorsatz et al., 2018; Wang, Wang, Guo, et al., 2017). Every year alone in China, 5 million TVs and 4 million refrigerators are being replaced (speed, Ma,speed, & Zhang, 2013). Major household appliances’ (AC, TV, Refrigerator, and Fan) ownership rates are more than 85% per home in developed countries like USA, EU, etc. Similar trends are now expected in other developing countries e.g., India, home to more than 1 billion people is projected to have electric fans, mobile phones, TV and refrigerators in every household by 2030 (Parikh & Parikh, 2016). At the value of $7 trillion, energy sector is most valuable market on earth (International Energy Agency, 2017). Household sector is contributing 31% of total energy consumption in the world (Ali et al., 2019; Urge-Vorsatz et al., 2018). A recent research projects that global home appliances industry will reach the value of 342.82 billion USD till 2022 by growing at 6% annually (Research & Markets, 2018). Prior researches point that major demand of these home appliances will be generated from developing countries. Furthermore, climate change and its awareness among masses is dramatically transforming this industry where consumers are demanding environment friendly and energy efficient appliances (Orbis Reseach, 2018; Research & Markets, 2018). Energy consumption is one of the main reasons of environmental deterioration and billions of these home appliances are adding to this grave threat by consuming electricity and emitting harmful greenhouse gases in the air (Oreskes, 2005; Skogen, Helland, & Kaltenborn, 2018). Combating climate change and achieving sustainability is top priority for current and future generations (Environmental Protection Agency, 2018; Rafique & Rehman, 2017). Researchers have pointed that use of energy efficient home appliances is one of the quickest and most effective solution towards the pursuit of sustainability (Sorrell, 2015; Zhou & Yang, 2016). Given the volume of this multibillion dollar industry, transforming trends in demand and as a solution towards environmental conservation, a number of researchers have burnt their energies to understand “residents’ behavioral antecedents towards energy efficient household appliances”. Despite a recent influx of studies on this topic, there is a deficiency to provide an overview of research findings anchoring the synthesis of investigations to understand residents’ buying intentions of such appliances, their actual usage, energy saving potential and estimates of greenhouse gases reduction by use of these appliances. Furthermore, a thorough investigation is required to illuminate the unique context of developing countries, where energy demand is increasing manifold. Domestic consumers’ behavior towards energy efficient appliances as a topic of research demands for a broader perspective examination. In pursuit of this goal, our study aims to provide a road map of the existing knowledge and empirical evidence from scholastic work by employing a systematic review of available academic literature. Hence, this study will not only present the existing research gap but also provide future research directions for academicians and practitioners.

Methodology

To evaluate current literature, investigate existing research gaps and suggest paths for future studies, this review paper has adopted systematic review method. This type of review provides an entire and comprehensive synopsis of literature on a specific research topic by accessing relevant articles from different research databases (Kim & Lee, 2018). A systematic comprehension and synthesis of prior studies (Okoli, 2015) will enable us to sketch an array of factors affecting residents’ intention to buy and actual use of energy efficient household appliances, and their impact on environment. This will eventually guide us to identify gaps from a broader landscape. Review method by Tranfield, Denyer and Smart (2003) by conducting review in three stages was followed. Further, instructions by Siddaway (2014) were applied for this systematic review. At the first stage ‘planning and scoping’ of the research topic in broader terms was done and then execution of plan, searching, screening and synthesis was done at the second stage. Finally at the third stage results were compiled and reported. In the planning phase, main concept covering area of interest namely “residents’ behavioral antecedents towards energy efficient household appliances” was identified; further search terms were created in order to collect all applicable research articles. Search terms included “household energy saving behavior”, “energy efficient household appliances”, “electricity saving potential of household appliances”, “consumer intentions to buy energy efficient household appliances”, “Contribution of household energy efficient appliances towards environmental conservation” and “sales of energy efficient household appliances”. For “household” alternative terms “Residents” and “Domestic users” were also used in order to find all relevant papers. At next stage, initial search was conducted in major databases known as Web of Science, Science Direct and Taylor & Francis but was extended to other databases like MDPI, Emerald, and Springer. Finally we employed Google Scholar so that all relevant research articles should be collected (Ali, Halim, & Bt, 2016). Exclusion process was executed by following screening criteria: articles not written in English, articles in which the terms “consumer behavior”, “energy efficiency” and “household appliances” were not studied as a major theme or just treated as a marginal topic. The data capturing time period was set from 2009 till June 2019. This screening process eventually resulted in collection of 21 articles on which we performed full text review.

Literature Review

Ek and Soderholm Patrik (2010) investigated the relationship between household energy saving behavior and role of information in Sweden. To know the household intentions of saving energy, economic and norm based motivators were employed by targeting 1200 Swedish homes. Costs of energy efficient appliances, environmental attitudes of residents and social interactions were found to have strong impact on household towards such behavior. Further, bounded rationality and status quo were also proved as important influencers. Empirical evidence supported that by increasing useful information, positive energy saving household behavior can be achieved. Bradford and Mills (2009) conducted a study in Germany to examine the relationship between energy labeling and purchase propensity of energy efficient household appliances. Findings reveal that lack of knowledge towards energy labeling negatively influence the purchase propensity of household consumers. Given that residents have proper knowledge of energy consumption labeling, higher electricity prices positively influence residents to buy energy saving appliances but residents’ socio economic profiles play very less role in this regard. To identify the factors that constraint the adoption of residential energy-efficient practices, Niemeyer (2010) investigated 800 households in Nebraska USA. Knowledge, attitudes, beliefs, economic constraints and financial needs were taken as predicting variables. Results of the study indicate that behavioral practices are main constraint towards using energy efficient. Author also found that behavioral intentions are often inconsistent with attitudes. In order to overcome these constraints, educational programs can play a vital role by shaping positive attitudes and norms. Sonnenberg, Erasmus and Donoghue (2011) focused on how environmental sustainability issues are impacting consumer choices of buying energy efficient household appliances. Study focused 446 urban households in South Africa. Findings of this research show that consumers prefer functionality of the product over its aesthetic appearance and price. They are also concerned about how these products can save the deteriorating environment. Product durability, running costs and energy saving potential of such products influence their buying decisions. But consumers have less favorable attitude towards recycled products. Chinese households’ attitudes on energy-saving appliances were examined by Ma, speed and Zhang (2011). Data collected from urban residents indicate that in general, household consumers are well aware of energy related issues and government policies. But when it comes to specific knowledge of these challenges and policies, they are not fully knowledgeable. Although residents had positive response towards energy saving behavior yet they are not willing to sacrifice their comfort in this pursuit. In order to overcome this obstacle, author concluded that government should provide incentives to energy efficient appliances manufacturer and household consumers. Research by Gaspar and Antunes (2011) seek to understand the characteristics and factors that influence purchase of electrical home appliances in Europe. Authors found that household consumers’ general attitudes towards environment have no relationship with their intention to buy energy efficient appliances. Same was the case with their education level. But specific knowledge towards energy issues, consumption problems, and peculiar ecology concerns have positive association with such purchase behaviors. Further it is found that trained sales person also positively lead towards buying intentions of energy saving home appliances. To predict South Korean household consumers’ intentions of purchasing energy efficient appliances, Ha and Janda (2012) conducted a study by extending “Theory of reasoned Action” (TRA). Consumers’ knowledge and beliefs towards energy efficient home appliances, environmental awareness and confidence of sequence were included in classic model of TRA. Findings of study revealed that Attitude is the most significant predictor of household consumers’ intentions of buying energy saving appliances. Further that consumer beliefs and confidence on consequences positively influence attitude. Speed et al., (2013) focused energy efficient household appliances in China through investigation of consumer attitudes towards energy savings. Results showed that residents had very little knowledge of energy saving behavior at home and the potential of energy savings by the use of efficient home appliances. They were also not aware of government incentive policies for the purchase of energy saving products. But household consumers showed willingness to use such appliances depending upon different factors. Two of which are economic (discounts) and high prices of electricity. Taking their research further, Mills et al., (2013) conducted another study in 2013 to examine how energy conservation knowledge and attitudes impact adoption of energy efficient technologies in household sector. They targeted a larger data set of 5000 households from European Union countries. Knowledge of energy saving technologies and energy consumption found to have association with energy conservation practices but it did not found to contribute towards adoption of energy saving products. On the other hand household characteristics and socio economic factors proved to be strong influencer. For example, younger consumers found to have favorable attitude towards adoption of energy efficient appliances as they care more for environment while older people focused on financial savings only. Households from less developed EU countries had lower levels of energy efficiency adoption as compare to developed countries of EU. Results also indicate that education plays an important role as respondents with higher education levels showed favorable response towards adoption of energy saving household appliances. Alam et al., (2014) examined the households’ renewable energy usage intentions in Malaysia. A theoretical triangulation was employed by integrating TPB and “technology acceptance model” (TAM). Results predicted that perceived ease of use and perceived behavioral control (PBC) positively impact households’ intentions to use energy saving home products. Moreover, lesser costs and higher knowledge of such products had also positive impact on usage intentions. Wang, Zhang, and Li (2014) applied an extension of “theory of planned behavior” (TPB). They selected urban household population of Beijing for data collection purpose and results of empirical analysis highlighted key determinants of such intentions namely as subjective norms, PBC and environment related attitudes. Researchers also analyzed demographic factors but found no positive association with intentions of buying energy efficient home appliances. A noteworthy contribution in the context of potential savings by energy efficient household appliances was done by Parikh and Parikh (2016). But this study does not focus the behavioral aspect towards such appliances. Authors have focused past data to estimate the potential of energy savings by using efficient home appliances and reductions in greenhouses gases in India. Authors selected four main electric home appliances namely air conditioners, refrigerators, televisions and fans. Results of study show that these four appliances can save 52 bKwh to 145 bKwh by 2030 which accumulates 10 to 27% energy savings. Similarly, a 30% of reduction can be achieved in carbon emissions by 2030 by the use of energy efficient version of these four appliances. Nguyen and Lobo (2016) studied energy efficient household appliances in the context of emerging markets. 682 Vietnamese residents participated in a survey to investigate purchase behavior towards the energy efficient products. An integration of motivational and cognitive predictors was employed and results of study show that residents' with egoistic values are negatively intended to buy energy efficient appliances while biospheric and altruistic values positively influence such intentions. Moreover, attitude and knowledge also plays significant positive role. Pro environmental behavior is examined in the context household energy saving behavior by Pothitou, Hanna and Chalvatzis, (2016) in United Kingdom. Authors tried to understand the impact of environment and energy saving related knowledge of residents on their energy saving behavior. Results of data analysis indicated positive correlation between environment related knowledge, values and residents energy saving attitudes & behaviors. Further analysis showed that ownership of energy efficient home appliances varies according to gender and employment status. In Malaysia, Tan, Ooi and Goh (2017) extended TPB by adding moral norms, environmental concern and knowledge. Results showed that attitude and PBC are key determinant of consumers’ purchase intentions towards energy efficient household appliances. But subjective norms were not proved to have any significant influence on such intentions. In order to understand motivations that drive sustainable energy saving behavior, Park and Jib (2017) conducted a study in South Korea. Data was collected from1050 household consumers by using interviews and survey method. Results indicate that intention of using energy efficient appliances leads towards their actual usage. And perceived value of products is positively associated with intentions of buying energy saving home appliances. Wang, Wang, and Guo (2017) analyzed whether government subsidies for buying energy efficient home appliances work or not. Urban population of 22 Chinese provinces was targeted and data was collected from 436 households. Findings show that Chinese government’s environmental policy, subsidies and media propaganda for energy savings did not have much impact on residents’ intention of buying energy efficient appliances. On the other hand, past experience of buying such products and social relationships are significantly correlated with such purchase intentions. Analysis of demographic factors indicates that younger age and higher level of education also exert positive influence on such buying intentions. Authors suggested that government subsidies should be used by keeping in mind certain factors like timing (season), method and object of subsidy. These can improve the impacts of subsidies on consumer intentions of buying energy efficient home appliances. Elsamen, Akroush and Asfour (2018) added environmental awareness, perceived performance risk and perceived financial risk in the classic model of TRA. Attitude was again found to be the main influencer while positive impact of environmental awareness on subjective norms found to reduce perceived risk of performance and finance. Li, Li, Jin and Wang (2019) focused purchase intentions of residents of Shanxi, China by applying TPB. H. Li and Shanyong (2019) employed TPB and TAM and collected online data from Chinese household consumers. Perceived ease of use along with other variables of TPB was proved to have strong impact on household consumers' purchase intentions towards energy-saving appliances. To check how residents’ technology readiness impact their energy-saving intentions Ali et al., (2019) integrated ‘Technology Readiness Index” (TRI) into TPB. Data was collected from urban centers of Pakistan and PLS-SEM was employed for data analysis purpose. The results of this empirical study showed that technological aspects of consumers’ behavior are very important to predict the households’ intention of buying energy-saving appliances. “Innovativeness and Optimism” found to have positive influence while “Discomfort and Insecurity” proved to be an inhibitor towards intentions of buying environment friendly electric appliances

Table 1: List of Reviewed Studies

Results and Research Gaps

Review of above studies presents different valuable insights into the factors explaining the determinants of consumer intentions towards buying energy-saving household appliances. However, given the importance of energy efficient household appliances to residential, environmental, industrial, economic and social well-being, considerable opportunities are there to further explore the antecedents that propel consumers’ intentions to buy these appliances. Systematic review of existing literature enables us to find notable gaps that can be addressed in future research under consumer behavior domain. Over the last two decades, much has been written about the predictors of consumer intentions to adopt energy saving home appliances in developed countries e.g., Ireland, Sweden, USA, Germany, Europe, South Korea, and United Kingdom (See Table 1). Apart from above studies, few notable researches have been conducted in China, Malaysia, Vietnam and South Africa. Yet developing nations have been predominately ignored so far. According to International Energy Agency (2017), World energy demand has grown from 10000 (Mtoe) in 2000 to 13760 (Mtoe) in 2016 and it is expected to rise at 30% until 2040. Most of this will come from China, India, developing Asian, African and Latin American countries. So far there have been very few studies conducted in India regarding energy efficient household appliances and that too focused the energy saving potential of these appliances (Parikh & Parikh, 2016). Hence there is a need to investigate the determinants of household consumers’ intentions to buy such appliances in developing nations of India, Pakistan, Bangladesh, Mexico, Nigeria and other developing nations. Many Researchers have found that results of previous studies cannot be generalized from one country to other because of differences in socioeconomic conditions, cultural, political and country specific contexts (Alam et al., 2014; Park & Kwon, 2017). In terms of demographic influencers towards adoption of energy saving home appliances, researchers have observed that young people tend to have favorable attitudes than other age segments (Mills & Schleich, 2013). Yet prior studies have targeted multiple age groups. But there is a need to specifically study young consumers’ behavior towards eco friendly energy saving home appliances. From the methodological standpoint, a large body of previous research on this topic has collected data from urban population and rural areas have been neglected so far. Yet they form a considerable portion of total world population (UNDSEA, 2018; United Nations, 2013). So future researches can draw a mix sample from both urban and rural centers and try to identify how they differ in terms of their preferences to purchase energy efficient home appliances. Researchers have observed that technological advancements have given birth to new consumer behaviors (Parasuraman & Colby, 2015; Walczuch, Lemmink, & Streukens, 2007) and energy saving household appliances are a result of technological advancements (Lester, 2015). Majority of the pro environmental, energy saving behavior research has focused on the role of values, attitudes, beliefs, and personal norms in shaping household electricity saving behavior. However, among these studies, a less-studied research area is an individual’s readiness to use new technological oriented energy efficient household appliances. So there is need to understand residents’ energy saving behavior by applying technology related personality traits. Moreover, researchers can also apply traditional personality models (like big five personality traits) to enhance their understandings of what factors motivate and drive consumer intentions to buy these appliances. To date, past consumer behavior researchers have employed the “theory of reasoned action” (TRA) and “theory of planned behavior” (TPB) to investigate contextual antecedents of behavior (Alam et al., 2014; Ha & Janda, 2012; Park & Kwon, 2017; Tan et al., 2017; Wang, Wang, & Guo, 2017; Wang et al., 2014). So, future researchers can use other well known information system (IS) theories to further explore antecedents of this behavior. There can be several missing motivations that may show significant effects on consumers’ adoption behavior. Tajamul Islam (2016) has pointed that religion also plays important role in forming pro environmental behavior. This creates an acute area of interest for future studies to investigate that how religion impacts household’ intentions of buying energy efficient appliances. To further explore this subject area, future researchers can also try to investigate household residents’ decision making styles while purchasing energy-saving appliances.

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