Heterogeneity in the solar powered consumer electronics market: A discrete choice experiments study

Abstract

Solar powered consumer electronics are a likely starting point for organic photovoltaics’ (OPV) market development. Still, consumers’ willingness to adopt a product depends on how they value it. Therefore, a discrete choice experiments (DCEs) study is presented to find out how Flemish (northern part of Belgium) consumers value solar cell characteristics for solar powered consumer electronics. We contribute to literature by incorporating heterogeneity into our modelling efforts and by identifying the model that has the highest model fit. The random parameter logit (RPL) model with interactions is found to provide a better fit than the latent class (LC) and conditional logit model for our choice data. Consequently, the individual level, assumed by the RPL model, explains heterogeneity better than the segment level, used by the LC model. Furthermore, all mean main effects exhibited the expected sign. Accordingly, we advise OPV scientists to aspire higher efficiencies and longer lifetimes while retaining lower cost, better esthetics, and higher integratability as opposed to its substitute technologies.