Conjoint Survey - Analysis of Distributed Generation Technology Consumer Preferences, National Renewable Energy Laboratory

ANTARES staff, in conjunction with a leading US market survey firm, conducted extensive on-line surveys during 2001 of over 1000 potential residential consumers of distributed generation (DG) technologies. The effort helped focus and prioritize technology research and development efforts. Respondents answered direct survey questions about their power service preferences, in addition to standard demographic questions. Respondents also participated in a series of DG product choice exercises, which revealed their preferences for various product attributes. Each choice exercise asks respondents to select their most-preferred DG product from a limited product set. By asking each respondent to select his or her most-preferred product in repeated choice exercises, it is possible to discern the relative importance of various product attributes in driving each respondent’s choices.

ANTARES staff analyzed the direct survey and product choice data to present a clear understanding of the potential market shares of preference for various residential DG technologies. The choice data were analyzed using Sawtooth Software’s© Hierarchical Bayesian / Choice-Based Conjoint Module. ANTARES performed sensitivity analyses to understand how improvements to certain renewable technologies might translate into greater consumer acceptance of those technologies. This information will provide the Department of Energy and private industry with guidance as to which product attribute improvements would most significantly enhance consumer acceptance of certain DG technologies.

A valuable output from the product choice survey is a database that allows ANTARES staff to perform "what-if" analysis for government and private clients. Simulations can be run to see how consumers would respond to various improvements to existing DG products. One Fortune 500 Company has already put this database to use in developing its strategy for expansion into new DG product markets.

Choice-based conjoint methods can be applied to many consumer analysis/marketing problems besides distributed generation. Using examples in the areas of ANTARES’ expertise; conjoint analysis could also be applied to developing green power marketing strategy or alternative fuel marketing strategy.