CHAPTER 6 RESEARCH METHODOLOGY

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1 CHAPTER 6 RESEARCH METHODOLOGY This research proposes to develop marketing strategies which will enhance the use of Solar The use of Solar Energy will help achieve sustainable development. It will help to know how to market the Solar Energy Products since there are hardly any promotional and marketing policies used as yet in this regard. Thus the study will enable one to know the important factors responsible in the marketing of Solar Energy Products and help in exploring those areas of marketing which will help the manufacturers and suppliers of these products to increase their sale due to increase in the use of Solar It will help the Government, which is striving hard to propagate utilization of renewable energy resources, leading to sustainable development. The ultimate buyer will also get sense of satisfaction in helping out to save the environment. Recent developments in energy markets show that energy security concerns are becoming more acute. These include a tightened global energy supply/demand balance, soaring energy prices, growing geo-political risks and the emerging tendency of nationalism. The world is facing a twin energy related threats, that of not having adequate and secure supplies of energy at affordable prices and of environmental harm caused by consuming too much of it. Soaring energy prices and recent geopolitical events have reminded us of the essential role affordable energy plays in economic growth and human development as well as of the vulnerability of the global energy system to supply disruptions. Safeguarding energy supplies is once again at the top of the international policy agenda. Yet the current pattern of energy supply carries the threat of severe and irreversible environmental damage including changes in global climate. Reconciling the goals of energy security and environmental protection requires strong and co-ordinated government action and a favourable consumer attitude. Anupamaa S Chavan 90

2 G-8 leaders meeting with the leaders of several major developing countries and heads of international organizations including the International Energy Agency (IEA) at Gleneagles in July 2005 and in St. Petersburg in July 2006 called on the IEA to advice on alternative energy scenarios and strategies aimed at a clean, clever, and competitive energy future. Providing energy efficient modern technology to the world is an urgent necessity. The scope of this study is to know why the Solar Energy Products are not used in a required manner, when there is power crisis, and one needs to consciously make efforts to use renewable, clean and green energy so that there is less green house gas emission and environmental aspects are also taken care of. According to the reports of Ministry for New and Renewable Energy (MNRE) 2011, Solar energy has the maximum potential of all the renewable energy resources which is 50,000 MW; and only 1,839 MW is installed up to July 2013.Thus solar energy has the huge potential but as of now it has not been fully tapped. This study tries to find out and understand what will make people use or not use Solar Energy Products so that one can identify the significant factors which are responsible for its use. The four prominent Solar Energy Products selected for the study include: Solar Water Heaters, Solar Street Lights, Solar LED Lights and Solar Inverters. These products were selected after taking opinion from experts and the manufacturers/suppliers of Solar 6.1 Preparation of Questionnaires Two questionnaires were framed through discussions with experts supported by review of literature, which were as under: 1. The first one for the manufacturers/suppliers to understand the buying pattern of Solar (Annexure I ) 2. The second questionnaire was developed to understand the response of the buyers/prospective buyers towards the use of Solar (Annexure II) Anupamaa S Chavan 91

3 The questionnaire for buyers/prospective buyers consisted of three major categories: The first category comprised Awareness Questions to be filled by all the respondents. Three alternatives were given YES, NO and DON T KNOW for each of the Solar Energy Products i.e. Solar Water heaters, Solar Street Lights, Solar LED Lights and Solar Inverters. In all, thirteen questions about awareness were to be answered by the respondents for each Solar Energy Product. The second category was for User(s) of Solar Energy Product(s). The respondents who used any of the mentioned Solar Energy Product(s) were asked to rate the factors which influenced them to use Solar Energy Product(s) on the response scale. A five point Likert scale ranging from Strongly Disagree (1) to Strongly Agree (5) was used. The third category was for Non-User(s). In this category we had (i) Non- User(s) who were ignorant and therefore not using Solar Energy Product(s) and (ii) Non-User(s) who were non-ignorant but still not using Solar Energy Product(s). Here, only Non-ignorant Non-User(s) were asked to rate the factors on the response scale which influenced them for not using Solar Energy Product(s); as ignorant Non-Users were not able to give their response at all. A five point Likert scale ranging from Strongly Disagree (1) to Strongly Agree (5) was used. Interactions with manufacturers/suppliers, expert opinions and review of literature helped in emergence of the important factors which influenced the use of Solar Energy Product(s). The questionnaire was modified and improved in the light of shortcomings and problems faced by the investigator, as were identified through pilot survey. The pilot survey helped in finalizing the questionnaire. Anupamaa S Chavan 92

4 6.2 Objectives of the Study 1. To identify the buying patterns of Solar Energy Products with the help of manufacturers/suppliers. 2. To study the response of buyers and prospective buyers, towards the use of Solar 3. To proffer conclusions for each segment of existing and prospective buyers based on the data collected. 4. To analyze the feasibility of afore mentioned findings. 5. To develop Marketing Strategies to enhance the use of Solar 6.3 Research Design Phase I: Exploratory research in which study of manufacturers / suppliers perspective on buying patterns of Solar Energy Products was done with the help of a questionnaire. (Annexure I) Phase II: Descriptive research using survey method, whereby the data was collected through questionnaire (Annexure II) from the existing and prospective buyers to know their response towards the use of Solar Phase III: The inputs from the descriptive research were factored to derive the necessary conclusions to enhance the use of Solar Phase IV: Evaluation of the effectiveness in implementing the planned Anupamaa S Chavan 93

5 strategies were discussed with the manufacturers & suppliers. Phase V: In the light of suggestions made by the manufacturers and suppliers, Marketing Strategies have been developed which are expected to enhance the use of Solar 6.4 Variables under Study Independent Variables Utility of the product Cost of installation of the solar energy product After sales service Availability of the product to the consumer Credit/Loan Facility Government incentives given to the consumers Social and Environmental concern for sustainable development Dependent Variable Buyers /Prospective Buyers intentions to buy/use solar energy products 6.5 Hypotheses of the Study 1. H o : Opinion of consumers regarding the utility of Solar Energy Products does not have significant impact on its use. H 1 : Opinion of consumers regarding the utility of Solar Energy Products has significant impact on its use. 2. H o : There is no significant impact of high cost of installation on the use of Solar Anupamaa S Chavan 94

6 H 1 : There is significant impact of high cost of installation on the use of Solar Energy Products. 3. H o : After sales service has no significant impact on the use of Solar H 1 : After sales service has significant impact on the use of Solar 4. H o : Easy availability of Solar Energy Products has no significant impact on the use of Solar H 1 : Easy availability of Solar Energy Products has significant impact on the use of Solar 5. H o : Credit/Loan facility has no significant impact on the use of Solar Energy Products. H 1 : Credit/Loan facility has significant impact on the use of Solar 6. H o : Government subsidies/incentives have no significant impact on the use of Solar H 1 : Government subsidies/incentives have significant impact on the use of Solar Energy products. 7. H o : Social and Environmental concern has no significant impact on the use of Solar H 1 : Social and Environmental concern has significant impact on the use of Solar 6.6 Pilot Survey of Questionnaire Questionnaire was tested on a small group of 70 respondents. In the light of shortcomings and problems faced by the researcher, suitable modifications were made in the questionnaire Anupamaa S Chavan 95

7 6.7 Sample Selection Random Sampling Technique was used to collect the data. The target population of the study was from the six cities of West zone and South zone of India. Manufacturers/suppliers from six cities of West and South zones of India were interviewed face to face and through telephonic conversation. Buyers/Prospective buyers from six cities of West and South zones of India were interviewed through questionnaire. Sample size: Manufacturers/Suppliers: 16 Total Buyers/Prospective Buyers across six cities: 1,056 The segments of buyers/prospective buyers across six cities are listed as under: 1. Residential: 549; (284 from Private Residential Owners, 235 from Cooperative Societies, 30 from New constructions) 2. Hospitals: 37; (35 from Private Hospitals, 02 from Government Hospitals) 3. Industries: 99; (37 from Small-Scale industry 32 from Medium-Scale industry, 30 from Large-scale industry) 4. Hotels: 213; (120 from Restaurants, 33 from Lodging, 60 from Lodging and Boarding) 5. Educational Institutions: 62; (30 from Aided institutions and 32 from Unaided Institutions) 6. Public Utilities: Places of Worship: Recreation Centres: 30 Anupamaa S Chavan 96

8 Data could not be collected from all the sampled Government hospitals, except in case of only two Government hospitals, as Medical Superintendents of the Government hospitals of various cities informed that the decisions regarding their purchases were made by the Government /Municipal Corporations. Thus responses were denied. 6.8 Tools of the Study Survey was conducted through the following: Questionnaire 6.9 Techniques Used Following statistical techniques were used for data analysis: 1. Descriptive Statistics a) Frequency b) Percentages 2. Binary Logistic Regression a) Maximum Likelihood Test b) Score Test c) Wald Test 3. Graphical Representation Descriptive Statistics: Frequencies and Percentages were used to present categorical data, both for overall data and for segments. Binary Logistic Regression: Binary Logistic Regression was used to identify factors influencing buying decision of Solar Dependent variable is a binary variable defined as: Y=1; if respondent is user Anupamaa S Chavan 97

9 Y=0; if respondent is non-user Following Statistical Model is used: =b 0 +b 1 X 1 +b 2 X 2 +..b 7 X 7 Where; P= Pr[Y=1/X] =Pr [Solar Energy Products User/ Response of 7 factors] Xi s are factors (Utility, Cost, After Sale Service, Product Availability, Credit/Loan Facility, Government Incentives, and Social & Environmental Concern) Parameters were estimated by Maximum Likelihood Method. Significance of each factor was assessed using Wald s Chi-Square Test. Further, separate model was developed for each product. The next chapter presents the collected data and their analyses. It also includes hypotheses testing and discussion on the findings. Anupamaa S Chavan 98