What do people truly mean when they say they want to be energy-efficient? Is this desire linked to their awareness of climate change, or is it primarily driven by economic motivations? Moreover, how can we effectively encourage the public to adopt energy-saving behaviors?

To explore these questions and foster energy-saving habits in households, the TARA Climate Foundation partnered with C4C to conduct in-depth qualitative research. This study aims to uncover the factors and dynamics influencing Indonesian consumers in their decision-making around purchasing and using residential air conditioning (AC) units.

Ultimately, the 4 key findings below will help shape intervention strategies designed to encourage the adoption of energy-efficient AC units in Indonesian homes supporting environmental goals. The 4 key finding consists of:

Purchasers have difficulty evaluating options when trying to buy AC units

Our research reveals that consumers have specific criteria for what they want in an AC unit, and electric saving or “low watt” is one of them (see Table 1). However, their limited knowledge about air conditioning units and their specifications as well as sellers’ persuasion makes it challenging for them to evaluate available options effectively.

Most purchasers will start with having “energy saving” as one of the key criteria when buying AC units. There are two reasons why “energy-saving” is an important criterion for purchasers which is to save money and to avoid exceeding electrical capacity.

Purchasers equate “hemat energi” (energy-saving) with “hemat listrik” (electric-efficient) and believe the best way to economize electricity is by choosing "low watt" AC units—ideally under 400W, with 300W being the most desirable.

This is where it starts to get complicated for the purchasers. Purchasers often can't distinguish between "inverter" and "low watt" AC units, seeing them as the same. They aren’t sure which type they’ve bought—only that it’s "hemat listrik" (electric-efficient), trusting the sellers’ claims at face value. Apart from that, sellers have varying levels of understanding regarding government-developed energy efficiency logos. While some are familiar with the Energy Efficiency Ratio (EER) star logo, most cannot recall the figures or meanings of other logos (see Table 2).

With all of that said, the suggested intervention that could be taken for this is to provide “buying guides” that can help purchasers make more informed decisions. A buying guide is a short questionnaire about a consumers' wants, needs, or pain points. Based on consumers' answers, the guides will recommend certain items for purchasers.

This selection tool for personal computers by Microsoft is a good example of a buying guide. Unfortunately, buying guides are scarce in Indonesia. We should encourage manufacturers and retailers to provide more accessible buying guides for AC units.

Sellers have no or low incentives to push for energy-efficient AC units

Following up on the previous point, while most purchasers aim to buy "energy-saving" AC units, they often end up with standard models. This shift is influenced by sellers’ incentives, which are not tied to selling energy-efficient units. Although sellers emphasize energy efficiency initially—knowing it’s important to customers—bonuses aren’t linked to these sales.

Additionally, sellers also aim to minimize customer complaints and returns, which are common under Indonesia’s "store warranty" policy. Since a frequent issue is that AC units don't cool rooms quickly enough, sellers often encourage purchasers to prioritize "quick cooling" as a key criterion when choosing an AC unit.

And of course the suggested intervention is to create incentive schemes that reward sellers for selling more energy-efficient AC units that will align their motivations with purchasers’ intent to save energy. The scheme can be summarized as follows: “the more stars (from the EER logo) you sell, the more bonuses you receive.”

“Present bias” makes it hard for users to economize their use of AC at home

“Present bias” refers to the tendency of individuals to prefer smaller, immediate rewards over larger rewards that come later. This concept explains why we often choose immediate satisfaction, such as hitting the snooze button for extra sleep instead of waking up early for a productive day. Users recognize that using home appliances efficiently can lower their electricity bills and know strategies to achieve this, such as limiting AC usage to specific hours. However, usage diaries from our research reveal a gap between this knowledge and actual behavior.

Present bias explains why users hesitate to delay turning on their AC units or stick to an "on and off" schedule, even when they know it undermines their savings goals. The desire to get rid of discomfort in the moment outweighs the future benefit of a lower electricity bill. Additionally, consumers believe that turning the AC on multiple times will consume even more electricity.

Current smart AC technologies can help overcome present bias. While many find traditional AC remote controllers confusing, smartphone-controlled AC units enable users to manage their AC from anywhere, making it easier to use timer functions. Additionally, motion sensors can automatically turn off the AC when no movement is detected.

There is no social norm that encourages energy-saving behavior

In collectivist cultures, social norms often encourage mindfulness about resource use and its impact on others. For instance, the Swedish philosophy of "lagom," meaning "just enough for me," promotes a lifestyle that emphasizes having only what is necessary.

However, this research indicates that Indonesian respondents’ motivations for energy-saving behavior primarily focus on personal gains. Their main goal is to reduce electricity bills, which they perceive as the most tangible outcome of their energy-saving efforts.

Using a projective technique of picture selection, our research reveals that some respondents recognize the importance of collaboration between manufacturers and consumers in saving energy. Nevertheless, this awareness does not translate into actual behavior without social sanctions, such as perceived disapproval from others. Perceived others’ disapproval becomes an effectual social sanction as social norms operate by making people form normative expectations.

The flip side is, if we can foster normative expectations around wise energy use, such behavior can become a social norm. This can be achieved through various means, including public campaigns. In addition to public campaigns, social comparison can help establish social norms by allowing individuals to observe others' behaviors. For example, PLN can inform customers of their energy consumption relative to their neighbors. If a customer's usage is below the neighborhood average, PLN can send positive feedback that emphasizes their social reputation rather than personal gain.

This research integrates various perspectives from multiple regions, employing a variety of qualitative research methods

The research brings together the insights of sellers, purchasers, and users from Jakarta, Surabaya, and Medan, as Indonesia's more prosperous big cities. Additionally, those cities also have high household energy consumption. The main research questions for this research are:

1. What do Indonesian consumers mean when they talk about “energy-saving” in purchasing electronic appliances?
2. Is it really the case that future savings in electricity bills trump higher first-cost?
3. What do we know about how sellers understand and “sell” energy efficiency?
4. What’s the link between advertising, retailers’ programs, and salespersons’ behavior?
5. What do Indonesian consumers do when they think they are saving energy?
6. Are there equivalents of ‘lagom’ culture in Indonesia?

The research utilizes a series of qualitative methods such as:

• In-depth interviews: Intended to capture detailed personal experiences and perceptions
• FGD (Focus Group Discussion): Intended to gain a broader understanding of community attitudes and shared beliefs
• Mystery shopper: Intended to understand how the front liners or salesperson promote AC units and whether energy-efficient included in those promotions.
• Usage diaries: Intended to record participants’ energy consumption habits over time.

C4C can help you or your organizations create change through research and strategic communication.

Designing an intervention for various issues whether it be about social or environmental change requires rigor research and strategy in communicating and last but not least, creativity. If you are interested to learn more, don't forget to book a free 1-hour consultation with C4C!