The Role of Demarketing in Reducing Electricity Demand

Abstract

The current study aims to examine the influence of demarketing in reducing the demand for electricity in Jordan. According to (Kotler and Levy. 1971) the demarketing is based on three strategies (general demarketing strategy, selective demarketings strategy and ostensible demarketing strategy).  The philosophy of demarketing based on creating better and healthier environment for community and it represents an important tool to determine the consumption of a certain product permanently or temporarily.Demarketing considered an important tool that is used to limit demand or consumption, or rationalize its use, of a certain product or service, permanently or temporarily (fuel electricity, water, etc.) due to the rarity of these resources and their importance, economically, to countries. It is used to limit the use of some products that damage public heath, society, and community (like smoking, alcohol, controlled medication and narcotics, etc.). This paper shows the benefit from the general demarketing to influence the demand of electricity.The researchers depended on secondary resources represented by the available literature. In addition, the researcher depended on designing a questionnaire composed of 27 questions that were implemented on a sample of 592 consumers. The information collected was based on a primary exploration study with the purpose of constructing and designing a study model.Many factors were inserted within study model has been developed according to literatures related to the subject. Thus, this study questionnaire consisted of six dimensions, which are the general demarketing strategy, (advertising, campaigns, perception, price, solar energyand and reference group) and the demand of electricity. The development of six hypotheses was based on the dimensions of the study.All six hypotheses were accepted as well as the seventh hypothesis, concerning the relationship of the link between the components of the study model. The statistical analysis has shown that the positive correlation between components consisted of strong correlation (positive relationship) between each component of demarketing and the reducing the demand for electricity. Researchers faced number of difficulties while conducting this study. Many consumers do not agree with the questionnaire, there is no clear understanding of the concept of reverse marketing, and there are not many studies that deal with this field. The importance of this study is reflected through the effective role of demarketing that can play in influencing the reducing of demand for electricity, and improve them, towards rationalization of electricity consumption.