Perspectives

Evolving energy behaviors of the residential consumer

Evaluating consumer energy management through economic, technological, and environmental mindsets

How can electricity providers influence energy management behavior by appealing to their residential consumers’ beliefs and attitudes? Through 10 years of research for our Resources Study, we discovered the emergence of three consumer mindsets. By examining four customer personas through the lens of these mindsets, you can help your energy organization strategize and affect consumer decision-making and energy behavior.

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Analyzing 10 years of consumer energy behavior

Over the past decade of our annual Resources Study, we documented the evolution of residential consumer energy management. Our analysis of the past 10 studies revealed one striking consistency: Electricity providers want to engage their residential consumers in desirable energy management behavior and enhance the overall consumer experience. Desirable energy behavior includes:

  • Practicing energy conservation at home
  • Participating in green energy or efficiency programs offered by providers

While there’s no silver bullet, our research shows that electricity providers can influence behavioral energy efficiency by understanding the motivations and behaviors of certain residential consumer segments.

A decade of Resources Study research supports these key conclusions:

  • There are three consumer mindsets: environmental consciousness, technology acceptance, and economic sensitivity.
  • There are identifiable gaps among each mindset’s beliefs, intentions, and actions. Commonly called the belief-intention-action gap, this psychological phenomenon occurs when people act in a way that fails to support their values.
  • These mindsets can be used to create different residential consumer energy personas and indicate how consumers who fall under each persona might act and make energy choices.
Nudging residential energy consumers

Understanding three consumer energy management mindsets

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Residential consumers with a technology acceptance mindset demonstrate a strong inclination toward using technology to support better energy decision-making. These consumers are motivated by engaging with their smart electricity meters to analyze energy data and exploring computer or software applications to use electricity more efficiently. These motivations influence these consumers’ energy choices and actions.

There are two distinct ways that technology-accepting residential consumers approach their use of technology for energy consumption in their daily lives. Residential consumers are:

● Confident in their use of technology for energy purposes

● Apprehensive in their approach to using of technology

Residential consumers with an economic mindset demonstrate a strong concern for price or cost of energy while making energy-related decisions. Consumers evaluate cost compared with the benefits of any decision with varying levels of sensitivity. Some shared behaviors include taking multiple steps to reduce electricity bills and making price an important aspect while choosing or switching electricity suppliers.

There are three distinct categories of consumers representing different approaches to how economics impact their energy-efficiency priorities and adoption of renewable energy. These are residential consumers for whom price:

● Drives their energy decisions

● Influences their energy decisions

● Indifferent and they are fine with the status quo

Get to know four residential consumer personas

Our research on the three residential consumer mindsets lends itself to the creation of numerous personas. We’ve focused on four key personas to more fully investigate how consumers who fall into each category make energy choices and act. Understanding the motivations and behaviors of certain residential consumer segments through these personas can help electricity providers and other stakeholders influence consumer energy behavior and decision-making.

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Meet Anshu
Environmental navigator, tech-apprehensive, and economics-driven

What’s his energy behavior profile?

Anshu is highly invested both in renewable energy and energy efficiency. Although not very adept at using technology, he’s ready to make investments in new solutions that will have a long-term impact on his energy bills.

Want to learn how to fully engage with a consumer like Anshu?

Download the full PDF
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Meet Maya
Environmental navigator, tech-confident, and economics-driven

What’s her energy behavior profile?

Maya has high intentions to invest in energy efficiency, but can be pushed to do more. She’s very adept at using technology and is focused on tactics to reduce her energy bill.

Want to learn how to fully engage with a consumer like Maya?

Download the full PDF
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Meet Andrew
Environmental pioneer, tech-confident, and economics-indifferent

What’s his energy behavior profile?

Andrew is interested in reducing his personal carbon footprint and is adept at using technology to support that goal. He’s less interested in the cost implications of such pursuits and doesn’t proactively look for cost savings related to energy.

Want to learn how to fully engage with a consumer like Andrew?

Download the full PDF
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Meet Kate
Environmental spectator, tech apprehensive, and economics influenced

What’s her energy behavior profile?

While she has some intentions to be more energy-efficient, Kate needs substantial external pushes to bring those intentions to action. Similarly, she’s not very confident with technology for energy management. Price is only one factor in her energy decisions.

Want to learn how to fully engage with a consumer like Kate?

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The future of energy behavior

Want to learn more about the evolution of consumer energy management? If you’d like to better understand the three mindsets or four personas—and how you can influence the behavior of certain residential consumer segments—please reach out.

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