ABSTRACT
This study analyzed energy consumption expenditure and consumers adoption of energy saving bulbs. the study examined the socio- economic factors that influence energy consumption expenditure, factors that influence consumers adoption of energy saving bulbs, the Awareness level of consumers of electricity on energy saving bulbs, perception of consumers on product attribute, and the factors that influences consumers intention to buy. Data was collected through a structure questionnaire to 300 respondents, representing 75% of returned rate. A purposive sampling techniques was adopted in choosing sample area and respondents. Result shown that the socio- economic factors such as sex, age , marital status, and education does not have a significant influence on energy consumption expenditure, while bills paid and price of energy bulbs were significant at 5% and10% respectively. The research then reviewed that more awareness should be created on the product attributes to enhance the adoption and usage.
TABLE OF CONTENTS
Title Page - - - - - - - - - - -i
Declaration - - - - - - - - - - -ii
Certification - - - - - - - - - -iii
Dedication - - - - - - - - - - -iv
Acknowledgement - - - - - - - - -v
Table of Contents - - - - - - - - - -vi
List of
Tables - - - - - - - - - -ix
List of
Figure - - - - - - - - - -x
Abstract - - - - - - - - - - -xi
CHAPTER ONE
INTRODUCTION
1.1 Background
of the Study - - - - - - - -1
1.2 Statement of
the Problem - - - - - - - -7
1.3 Objectives
Of The Study - - - - - - - -9
1.4 Research
Question - - - - - - - - -10
1.5 Research
hypothesis. - - - - - - - -10
1.6 Significance
of the Study - - - - - - - -11
1.7 Scope of the
Study - - - - - - - - -12
1.8 Limitations
of the Study - - - - - - - -12
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Consumer Behaviour - - - - - - - -13
2.2 An Overview of
Consumer Behavior - - - - -15
2.3 Diffusion of
Innovations Thories - - - - - -17
2.4 The adoption process – a conceptual
framework - - -26
2.5 Consumer
Purchase Decision Process - - - - -28
2.5.1 Problem Recognition - - - - - - -29
2.5.2 Information
Search - - - - - - -30
2.5.3 Evaluation of Alternative - - - - - -30
2.5.4 Purchase Decision - - - - - - -31
2.5.5 Post Purchase Behavior - - - - - - -31
2.6 Factors
Influence - - - - - - - -32
2.7 Internal
Influences - - - - - - -32
2.7.1 Motivation - - - - - - - -33
2.7.2 Perception - - - - - - - -33
2.7.3 Learning - - - - - - - -34
2.7.4 Attitude- - - - - - - - -36
2.7.5 External
Influences- - - - - - -37
2.7.6 Culture- - - - - - - - -37
2.7.7 Subculture - - - - - - - -38
2.7.8 Social Class- - - - - - - -39
2.7.9 Reference Group- - - - - - - -39
2.7.10
Family - - - - - - - - -40
2.7.11
Roles and Status - - - - - -- -41
2.8 Consumer
Perception- - - - - - - -41
2.8.1 Element of Consumer Perception - - - - -44
2.8.2 Threshold - - - - - - - -44
2.8.3 Absolute Threshold - - - - - -45
2.8.4 Sensation - - - - - - - - -46
2.8.5 The
Five Senses- - - - - - - -47
CHAPTER THREE
RESEARCH
METHODOLOGY
3.1 Research Design- - - - - - - - -50
3.2 Source of Data - - - - - - - -50
3.3 Area of Study - - - - - - - - -50
3.4 Population Of The Study - - - - - - -51
3.5 Sample And Sampling
Techniques - - - - -51
3.6 Determination Of Sample
Size- - - - - - -51
3.7 Method of Data Analysis - - - - - - -52
CHAPTER FOUR
Result and
Discussion - - - - - - - -56
4.2 Socio-economic
characteristics of respondent - - -57
CHAPTER
FIVE
SUMMARY CONCLUSION AND RECOMMENDATION
5.1 Summary - - - - - - - - - -70
5.2 Conclusion - - - - - - - - -71
5.3 Recommendation - - - - - - - -71
REFERENCES
QUESTIONNAIRE
LIST OF
TABLES
Table 4.1 Return Rate of Questionnaire - - - - - -56
Table 4.2 Sex of Respondents - - - - - - - - -57
Table 4.3
Age Of Respondent - - - - - - -57
Table 4.4 Education Of Respondents - - - - - -58
Table 4.5 Income Of The Respondent - - - - - -59
Table 4.6 Ascertaining
the awareness and usage level of energy saving bulbs
among Consumers Of Electricity In The Study Area -60
Table 4.7 Consumers
Perception of Product Attributes - - - -61
Table 4.8 Factors Influencing Consumers Buying
Intention - - - -63
Table
4.9 Socio- economic factors that
affects energy consumption -
expenditure
in Umuahia North , Abia State ,Nigeria - -66
Table
4.10 Analyzing the level of significance of the
factors that
influence
consumers’ adoption of energy saving bulbs in
Residential homes
in Umuahia North - - - - -68
LIST OF FIGURE
Fig 1 Consumers adoption process- - - - - - -28
CHAPTER
ONE
INTRODUCTION
1.1 Background
of the Study
Electricity plays a very
important role in the socio-economic and technological development of every
nation (Sambo, 2008). It depends to a large extent the level of country’s
development and level of industrialization. Unfortunately for Nigeria, demand
for electricity far outstrips its supply and this has caused supply to be
epileptic in nature (Sulettabeb, 2011). For many years now Nigeria has been
facing an extreme electricity shortage (Darling et al, 2008). This is because electricity generation and
distribution is lower compared to demand for electricity in the country. This
has severe implication on Nigeria socio-economic development, industrialization
and may hinder the drive of vision 20:20. According to Kennedy et al (2008),
electricity deficiency is multifaceted with issues that are financial,
structural and socio-political, none of which is mutually exclusive.
Today Nigeria has
probably the biggest gap in the world between electricity demand and supply,
providing its population of over 170million with roughly 4000mw of electricity
the highest power produced was about 4, 477.7mw (Shola, 2013). In contrast,
South Africa generates more than 40, 000mw for a population of 47million while
Brazil generates more than 100,000mw for its population of 201million (Lagos
oil club, 2012). As a result of this gap, many households and companies
supplement the electricity provided by the grid system with their own
generators; over 90% of the country has generators. (Darling et al, 2008).
However, evidence has
shown that combustion of fossil fuel from generators is associated with
environmental pollution which impact adversely on the physiological and mental
health of the associated lives. (Offiong,
2003, Akan and Ogugbuaya, 2007). Apart from the heat,
vibration and noise pollution from generator – operations, carbon dioxide(CO2),
Nitrogen oxides (NO2), carbon monoxide(CO), sulphur dioxide (SO2)
and particulate matters are released (IPCC, 2004). These elements have adverse
negative effect on human health, environment and are major contribution to
climate change variability in the world. Issues on climate change are
variability, mitigation and adoption measure which have become topical and
occupy the center stage of many scientific studies and discussion (Mbanasor et
al 2010, Agwu et al 2012).This is because its severity is huge and affects both
sustainable, socio- economic developments.
The challenges faced in
electricity in Nigeria is not just only instability of electricity but also the
mismanagement and inefficient use of generated power (Pooland 2011),There is an
unhealthy attitude of energy wastage by
some individuals and groups through the use of inefficient appliance. This they
do by installation of numerous energy consuming inefficient equipment.
(Okoknkwo, 2007).
The need for sustainable
energy management is seen as a major factor for energy efficiency and
conservation. Energy efficiency does not mean that we should not use energy but
we should in a manner that will minimize the amount of energy needed to provide
a service (Energy commission of Nigeria, 2008). As a measure to enhance more
effective utilization of available energy / electricity. In Nigeria,
government, researcher and policy maker have advocated for energy efficiency
and conservation. One of the strategies is the use of energy saving bulbs.
(Otegbulu, 2011).
There are two major ways
in which energy efficiency can be put into practice; technological and behavioral
approach. (Otegbulu, 2008). Behavioral approach implies a change in the ways we
do things like switching off appliances when we have no need for them.
Technological we use to a more efficient type. A typical example is a change
from the use of incandescent bulbs (ICB) to compact fluorescent lamp (CFL)
which is also called energy saving bulbs (Energy star, 2008). Compact
fluorescent lamp (CFL) is a kind of energy efficient lamp which consumes less
of energy than incandescent bulbs. The
usage of CFLs instead of incandescent bulbs (ILS) in residential areas offer
significant measures through which Nigeria can achieve sustainable energy
management (Casillas, 2011).
The use of incandescent
bulbs has increased the loss of electrical energy and increase the rate of heat
emissions (De Gunther, 2008). A typical incandescent bulbs converts 10% of
input electricity energy into light energy and the rest goes into heat, the
efficiency is only 10%. Unlike the use of compact fluorescent lamps (CFL) that
utilizes less energy or electricity and reduces heat emissions than
incandescent bulbs and can last 10 times longer, cost little up front and
provide quick return on investment. (De Gunther, 2008). According to Kammen,
(2011) the installation of CFLs provides the most attractive financial
investment, with an internal rate of return (IRR) of 528 %. (Bertoldi and
Athanasius, 2006) also stipulated that the payback for switching from ILS to
CFLs depends on the initial purchasing costs, the cost of electricity and the
rate of use.
Furthermore, CFLs
consumes 1/4th to 1/5th
of the energy used by incandescent bulbs to provide the same level of light
(Kummar et al, 2003). CFL now fits the
socket of ILS, which is an improvement that reduces cost of installation. Also
about 25% of energy consumed by CFLs is converted to visible light compared
with just 5% of a conventional incandescent lamp (Xing et al, 2011). Compact
fluorescent also have longer lifetime with rated life spans of 5, 000 to 25,
000 hours compared to 1, 000 hours on average for incandescent lamps (IEA,
2006).
In Nigeria, incandescent
lamps estimated to have accounted for 970twh of final electricity consumption
in 2005 and given rise to about 560mt of CO2 emissions (IEA, 2006).
About 61% of this demand was in residential homes/ sector with most of the rest
in commercial and public buildings. (IEA, 2006). In the hypothetical case that
all these lamps were to be replaced by compact fluorescent lamps (CFLs)
cumulatively, this would reduce global net lighting cost by 1.3trillion from
2008 to 2030 and avoid 6.4Gt CO2 emissions (Akinlo, 2009). Saving a
potential of retro filling ILS with CFLs being estimated, a household using 20
incandescent bulbs of 60W decides to replace them with energy saving bulbs of
20W, instead of spending 1200W/h for lighting, they will be spending 400watts
per hour. This translate to a saving of about 67% of energy for lighting alone
and if Nigeria can phase out one million incandescent bulbs and replace them
with CFLs, the country will be saving about 40mw of electricity this is enough
to provide electricity to many communities in Nigeria. (GEF, 2010).
Despite the proven
benefits, the usage of CFLs has been puzzling slow all over the world
especially in under-developing country such as Nigeria. (Menanteau and
Lefebvre, 2000). According to IEA (2006) incandescent lamps represents the most
commonly sold lamps in Nigeria. It dominates retail lamp sales especially in
residential sector 13.2billion of incandescent bulbs were sold in 2009 while
1.1billion of compact fluorescent bulbs were sold, the low sales invariable
translate to low usage. Its adoption and usage have been hampered by upfront
cost of purchase and installation by household (Kummar et al, 2003).
Despite the importance of
benefits of energy saving bulbs, government, majority of researchers and policy
makers have been unable to emphasize on its usage, importance, benefits and
adoption. The need for this study is to portray the use of these bulbs, to
create awareness and helps consumers to adopt and increase their demand for
energy saving bulbs.
1.2 Statement
of the Problem
In spite of the slow
growth in economic activities in recent years, the demand for electricity in
Nigeria has continued to increased (Ibitoye and Adenikinju, 2007).The major
source of electricity is the hydropower which is usually restricted to the
generation of shaft power stations constructed across river Niger at Kanji Dam
which is designed and managed by Power Holding Company of Nigeria(PHCN) to
deliver the required energy for Nigeria industry (Medugu and Malgw,2005). But
the company has been noted for unstable power supply characterized by low
voltage and incessant power cuts out often without warning or even an apology to consumers (Uchendu,2004).
Nigeria has electricity
peak demand of 2,000GWH per day (Energy commission, 2010), of this electricity
demand, residential homes consumes the highest megawatt per hour than
industrial and commercial sectors (Akinlo, 2009). Despite the rate of
electricity consumed by residential
homes, only 10% of input electricity energy is light , the rest goes to heat
(Degunther,2008). The problem of
electricity in Nigeria is not only the
instability of light but also the mismanagement and inefficient use of the generated power
(Poland ,2011),This paints a worrisome picture of industrial underdevelopment and other socio- economic challenges.
Total electricity
generating capacity is below 4,000 megawatts, if you divide this by the total
population you will find out that there is only 25watts per person (Stephen,
2011). Incandescent bulbs consumes 20watts power thus if all the generated
electricity is used exclusively in home there is just enough to light one bulb
for every Nigeria. Typically, 50% of the grid electricity is consumed in homes
while the commercial and industrial sectors accounts for 25% each. Nigeria
still has a long way to generate the 6500megawatts level.
The enormity of Nigeria
energy problem create s greater need for energy efficiency practice to be
adopted by residential households as electricity demand in Nigeria far
outstrips the supply which is epileptic in nature (Sulleteabeeb, 2011). Energy
efficiency has become the key driver for sustainable development, if we use
energy more efficient it will had to saving personal income and reduce the need
for more power stations in the country (Otegbulu, 2011).
To ensure efficient
energy utilization and conservation in the face of many energy crises, policy
makers, researchers advocate for compact fluorescent lamp as a strategy, but
despite its enormous advantages and benefits, people/ consumers have been slow
to adopt, use and demand for it due to some factors and barriers. Information
and awareness constraints have been a significant barrier to the adoption of
CFLs (Kummar et al, 2003).
Also income or
affordability and lack of guarantee of performance and where to purchase CFLs
were other factors that affects the adoption of energy saving bulbs including
the problem of disposal due to mercury content of CFLs, proliferation of sub –
standard CFLs and difficulty in measuring the economic advantage of the usage
of CFLs(Sathaye and Murtishaw, 2004).
1.3
Objectives of the Study
The main objective
of this study is to determine energy consumption expenditure and consumers
adoption of energy saving bulbs in Umuahia,
Abia State, Nigeria. The specific objectives are to:
i.
Ascertain the socio –
economic factors that affects energy consumption expenditure in Umuahia metropolis.
ii.
Analyze the level of
significance of factors influencing adoption of energy saving bulbs in the
study area.
iii.
Ascertain the awareness
level of consumer of electricity about energy saving bulbs in the study area.
iv.
Analyze consumers perception
on the product attributes.
v.
`Analyze the factors that influence consumers purchase
intention.
1.3
Research
Question
i.
What are the socio -
economic factors that influences energy
consumption expenditure in Umuahia .
ii. What
are the significant factors that influences the adoption of energy saving
bulbs in Umuahia Abia state.
iii. What
is the awareness level of consumers in
Umuahia on energy saving bulbs.
iv. What is the perception of consumers on the product attributes?
v. What
are the factors that influences consumers intention to buy
1.4
Research hypothesis.
Ho1:
There is no significant effect of
socio-economic factors on the adoption of
energy saving bulbs.
Ho2:
There is no significant factors influencing consumers adoption of energy
saving bulb.
Ho3:
Awareness does not influence the usage and adoption of energy saving bulbs.
Ho4:The
perception of consumers on product
attributes does not affect the
adoption of energy saving bulbs.
Ho5:
There is no significant factor influencing consumers intention to buy.
1.5 Significance of the Study
The significance of this
study lies on consumers to adopt and use
energy saving bulb as an energy
conservative measure in order to reduce energy consumption and energy loss. The
result of this study will be useful and beneficiary to industry, households and
government in order to reduce energy consumption in residential areas and
identify factors that influence the low usage of energy saving bulbs.
This study will also
serve as a spring board for other researcher that will like to research on
related subjects matters.
1.6
Scope of the Study
According to the scope,
this study covered Umuahia, Abia state of Nigeria. The inquiring
was effect of consumer perception on the adoption of energy saving bulbs.
1.7
Limitations of the Study
The following limitations
were encountered in the course of collecting data for the research.
1.
Finance was a major
limitation encountered in the course of this sturdy .the researcher found the
cost of transportation, typing, and other logistic necessary as a major
challenge in this work.
2.
Time is another
limitation to this work due to the fact the researcher has to combine her
academic requirement and other personal engagement with the work.
3.
Another problem is the
fact that some consumers are illiterate and might not differentiate between
incandescent bulbs and energy saving bulbs.
4.
Problem of data
collection was also encountered in the course of this work. Some consumers
might not really give the correct
information needed for this work.
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