Switching from LPG to electricity in Indonesia: a study in the Java Bali grid

Abstract

Technology innovations shift toward using cleaner and more convenient prime energy and energy converter appliances. It has driven some lower-middle-income countries to switch from fossil fuels to electricity. However, Indonesians don’t feel the urgency to switch from liquified petroleum gas (LPG)-fueled cookware to electricity. This study aims to: (1) explore usefulness (USE), ease of use (EOU), and time-oriented convenience (TOC) as antecedents of functional value (FUNC), recognition value (RECV), emotional value (EMOV), and epistemic value (EPIV); (2) examine the moderating effect of conditional value (CODV) on the intention to switch cooking energy (INT). A cross-sectional study gathered 290 valid questionnaires from households in Jakarta and other provincial capitals in Java.

The PLS-SEM approach was applied to examine hypotheses and analyze gender, age, and region segmentation. The results reveal the impact of both USE and TOC on FUNC, RECV, and EMOV. Moreover, EOU and TOC positively influence EPIV. The linear relationship between USE and EPIV and between RECV and INT is insignificant. However, a quadratic relationship exists. This study shows that conditional value moderates the relationship between emotional value and switching intention. Additionally, gender has an impact on the influence of EOU and TOC on EPIV, indicating the presence of heterogeneity. These findings contribute to conceptual advancement in behavior science by integrating TAM, TCV, and VAM. Furthermore, it illuminates relationships between USE, EOU, TOC, consumption values, and intention. In addition, it gives professionals in the consumer electronics industry greater confidence in developing product appeal, segmenting products, and creating persuasive promotions.

IMPACT statement

In recent decades, electricity has become increasingly important as a driving force for societal economic growth and the advancement of prosperity through the enjoyment of life. Switching to electric kitchen appliances is an enormous challenge for the Indonesian government, as most people rely on LPG for cooking energy. We investigate the attractiveness of induction stoves to people using LPG with a power capacity of 1300 VA or higher in the Java-Bali grid. Specifically, we examine how usefulness, ease of use, and time-oriented convenience influence multidimensional consumption values (functional, recognition, emotional, and epistemic) and switching intentions controlled by conditional value. Practitioners are encouraged to focus more on product appeal characteristics and gender concerns when designing products and advertising strategies to increase market switching intention.

Keywords:

• switching intention
• consumption value
• household energy
• VAM

SUBJECTS:

• Power & Energy
• Asian Studies
• Consumer Psychology
• Statistics for Social Science
• Sociology
• Urban Studies
• Urban Cultures

REVIEWING EDITOR:

• Kaouther Kooli, Bournemouth University, United Kingdom

Acknowledgements

PT PLN (Persero)/PT PLN Indonesia Power, is a state-owned electricity company in Indonesia.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Author contributions

Conceptualization, H.H-M., A.S., F.R. and A.Y.; methodology, H.H-M., A.S., F.R. and A.Y.; software, H.H-M.; validation, A.S., F.R. and A.Y.; formal analysis, H.H-M.; investigation, A.S., F.R. and A.Y.; resources, H.H-M.; data curation, H.H-M.; writing—original draft preparation, H.H-M.; writing—review and editing, H.H-M., D.F.H., H.N.; visualization, H.H-M.; supervision, H.H-M., D.F.H., H.N.; project administration, H.H-M.; funding acquisition, H.N.

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Data availability statement

Data available on request

Additional information

Notes on contributors

Hilda Hilmiyati-Mas’adah

Hilda Hilmiyati-Mas’adah has been working in a power generation company since 2000 and is a Ph.D. student at ¹. She holds a master’s degree in marketing management from the PPM School of Management in Jakarta.

Achmad Sudiro

Achmad Sudiro is a professor at ¹. He has extensive research collaborations in Asia region, a chief editor of Nationally Accredited Journals, and served as Chair of the on-campus Ph.D. at¹

Fatchur Rohman

Fatchur Rohman is a professor at ¹ with research interests in marketing, operations, and strategic management.

Agung Yuniarinto

Agung Yuniarinto is a senior lecturer at ¹ and hold a Ph.D. in management.

Dzikri Firmansyah Hakam

Dzikri Firmansyah Hakam is a lecturer at School of Business Management ITB, Bandung, and hold a Ph.D. in energy economics from University of Dundee. He is a professional has some high-quality publications and a regular reviewer of international journals and conferences.

Herry Nugraha

Herry Nugraha holds a Ph.D. in electrical engineering ITB and interested in electricity system and risk analysis research.