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 photovoltaic (OPV) market development. Therefore, a generic discrete choice experiments study can determine how Flemish consumers value solar-cell characteristics for solar-powered consumer electronics. Such characteristics include efficiency, lifetime, aesthetics, integratability, and price. We contribute to the literature by investigating preference heterogeneity in a solar-power niche market with an experimental design with a fixed reference alternative. The error components random parameter logit (ECRPL) with interactions provides a better fit than the latent class (LC) model for our choice data. The main effects had the expected signs. Consequently, aesthetics and integratability are OPV's assets. Nevertheless, heterogeneity puts the results that are valid for the average consumer into perspective. Based on our findings, OPV commercialization efforts should target the experienced, impatient user who highly values design and functionality.