www.ijsc-online.org | IJSC 3 (2008): 96-107

PAINTING THESE TOWNS GREEN: HOW DIFFUSION OF INNOVATIONS THEORY BROUGHT ENERGY IMPROVEMENTS AND SUSTAIN-ABILITY TO HARD-TO-SERVE UTILITY CUSTOMERS AND THEIR COMMUNITIES

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Christine Geltz

Abstract: After nearly two decades of promoting incentives for energy efficiency (EE) and demand response (DR) programs, American utilities and other agencies often find that many small business customers remain reluctant to participate, despite the obvious program benefits for themselves and the environment. To convert the reluctant into participants, marketing strategies need to change from simply sending logical arguments through mass marketing channels to more innovative and interpersonal marketing messages and strategies that are grounded in principles of diffusion of innovation theory. The messages must contain a strong educational and environmental element and economic incentives that influence consumers’ decision-making process. Participants then often become avid proponents, confirming their decisions in their own minds by recommending the programs to others in their social system. This article will present case studies of two successful outreach strategies embracing the diffusion of innovations approach for reaching and converting small business customers into enthusiastic EE and DR participants, especially in remote areas under accelerated time frames, often in hot climate zones.

Keywords: diffusion of innovations, energy efficiency, demand response, marketing strategy