A primary research analysis is conducted with Simply Energy. The purpose of the research is to identify and assess how the company provides its consumers with needed services and also to find out satisfaction levels of the customers. Recommendations are made for increasing sustainability initiatives in order for the company to face current competitive situations.
1. Title: Simply Energy
An analysis in Cost, Consumption and Sustainability.
Student Name
Course Name
Date
2. Executive Summary
A primary research analysis is conducted with Simply Energy. The purpose of the
research is to identify and assess how the company provides its consumers with needed services
and also to find out satisfaction levels of the customers. Recommendations are made for
increasing sustainability initiatives in order for the company to face current competitive
situations.
3. EXECUTIVE SUMMARY...........................................................................................................................................2
CHAPTER 1: INTRODUCTION ..................................................................................................................................4
1.1. RESEARCH BACKGROUND..........................................................................................................................................4
CHAPTER 2: RESEARCH AIM/ OBJECTIVES/HYPOTHESES........................................................................................5
CHAPTER 3: LITERATURE REVIEW...........................................................................................................................6
CHAPTER 4: METHODOLOGY..................................................................................................................................7
4.1. MIXED RESEARCH METHODOLOGY .............................................................................................................................7
4.2. PRIMARY RESEARCH.................................................................................................................................................8
4.3. PARTICIPANTS.........................................................................................................................................................8
4.4. TOOLS USED...........................................................................................................................................................9
4.5. LIMITATIONS OF THE STUDY .......................................................................................................................................9
CHAPTER 5: RESULTS AND DISCUSSION .................................................................................................................9
5.1. SCREENERS.............................................................................................................................................................9
5.2. DATA ON PARTICIPANTS..........................................................................................................................................10
RECOMMENDATIONS ....................................................................................................................................................15
CONCLUSIONS .....................................................................................................................................................15
REFERENCES.........................................................................................................................................................17
4. Chapter 1: Introduction
The company being considered in the analysis is Simply Energy. Simply Energy has been
operation from 2005 and works with the purpose of providing energy to homes and businesses in
Australia. From just an energy company, Simply Energy has now grown to become one of the
more sustainable sectors of energy production in the country because of the way the company
has incorporated technology and other support systems. The company is co-owned by a global
energy company ENGIE and Mitsui & Co. This enables the company to have much support in
the form of international technologies also. The company also partners up with other companies
in the sector to present the most optimal quality experience for its energy clients and direct
consumers.
1.1. Research Background
Research studies such as that of Fettweis, and Zimmermann, (2008) titled ‘ICT energy
consumption-trends and challenges’, indicates that in the past few decades there is depletion of
oil reserves in the societies. There has been more and more dependent on oil in the economies
around the world. Owing to this there is a need for newer energy sources that can effectively
combat these issues There is a need to focus on energy sources duet to the quenching the needs
of the people in the societies. This cannot be achieved by using oil reserves. The different forms
of energy are solar energy, wind energy and geothermal energy. These help in reducing of
dependencies. This enables the countries to have higher energy reserves and can supply to the
people at a lower cost. There are many tangible benefits that can be garnered from this process.
subsequently there can be better development of other areas in technology. There is reduction of
environmental pollution from shutting away from the fossil fuels in the society. Owing to all
these factors people like to have different forms of energy resources to cater to their needs.
Because of these reasons people might even prefer those options which offer both sustainable
service and also reasonable pricing.
In this context studies on different energy providers (gas electricity) in Australia, as
conducted by Vine, (2005) in the study ‘An international survey of the energy service company
(ESCO) industry’ shows that the energy providers are a very broad category and this
encompasses production and sale of energy, this includes the extraction of fuel, manufacturing,
refining of the raw material, supply chain systems and distribution of the products. In the modern
societies there is a requirement for large volumes of energy in this scenario there is a need for the
companies to be classified based on sector. Petroleum industry, gas industry, power industry,
coal industry, nuclear power industry. Again this can be classified in to conventional energy
sources and renewable energy sources.There are many energy companies in Australia. These can
be classified into electric power company distributors, hydro power centers, renewable energy
resources and electric power transmission system centers of Australia. There are a number of
companies that has been developed in accordance with these energy systems and technologies in
the country. Some of the companies in Australia are Simply Energy, Australian Gas and Light
company, Delta electricity, Pacific Power, pacific hydro, Tarong energy, Horizon power etc.
Given this context of multiple energy providers and the problem of energy costs and
sustainability, the research will focus on how Simply Energy will meet the needs of customers.
5. Chapter 2: Research Aim/ Objectives/Hypotheses
The research aim is to identify how efficient Simply Energy is in catering to meet the
requirements of its consumer.
The objective of research is:
To identify if Simply Energy understands the expectations of its consumers effectively
To assess on what criteria consumers, rate Simply Energy and its competitors
To critically discuss based on primary data and secondary research data, how Simply
Energy could improve its energy market in the current times.
Hypothesis 1: Customers in general are not currently satisfied with their energy providers (this is
inclusive of simply energy and other companies)
The statements customers make as to the continued use of their existing energy
companies will be used to understand the significance for this connection. Where customer
choose the options for questions indicating they are not satisfied then this hypothesis will be
providing. The analysis is by direct inferences
Hypothesis 2: Customers will continue to use Simply Energy because they trust the company
This hypothesis is proved by checking correlations between the customer levels of trust
and how this correlates with that of their continued use. Pearson coefficient would be used here
to understand the relation.
Hypothesis 3: Customers will recommend Simply Energy to friends and family because they
trust the company
Once again by making use of the Pearson coefficient analysis the levels of connection
between their trust of the company and their recommendations are analyzed.
Hypothesis 4: Customers are 'energy educated' (meaning they are aware of energy cost impact,
energy consumption, technology and options)
Here the Likert scale answers are used to analyze. While there are different techniques
such as the percent score, net top box, the Z score analysis and the standard deviation approach,
this research makes use of the percent agree approach. The percent agree is a marketing approach
where the percentage of respondents who chose the top values denoting agreement are only
considered. Based on an average high percentage for the top values in statements involving
understanding of energy cost impact energy consumption, technology and options it is hence
assumed that this hypothesis is proved.
Hypothesis 5: Customers prefer Simply Energy to be a stable energy standard because it is
competent in delivering their requirements.
The percent agree approach is used to understand this, here a direct question is being
rated by the participants.
Hypothesis 6: Customer connect Simply Energy to Australia ideals
6. The percent approach is made use of to understand how customers rate the company
based on how Australian it is, how it understands national standards and more.
Hypothesis 7: Customers have a positive opinion on Simply Energy because it informs them on
their energy options and is focused on sustainability.
Here the statement choices customer makes for sustainability and information sharing are
both used to understand whether the business has created a positive reputation in consumer
minds.
Chapter 3: Literature Review
Energy consumption, the rising consumption charges, and the actions taken by their
energy suppliers in order to deal with the rising energy charges are a growing concern for people.
As researchers Dietz (2015) argues in the article ‘Environmental value. Handbook of Value:
Perspectives from Economics, Neuroscience, Philosophy’, there has been increase in population
and consequentially there has also been an increase in the technology that is required to cater to
the population. People want energy for their basic sustenance. Based on the theory of supply and
demand the existing technology based on the fossil fuels is simply not enough for the people.It is
expected that the current levels of consumption will increase in the future with more people
having a better purchasing power than they do currently. In this scenario the companies need to
ensure that they utilize and develop robust practices to maintain their energy consumption
practices. The current reserves are not able to meet the demands of the current requirements.
Hence the rise in energy consumption should be a cause of concern to the people and the
organizations. It is only from this concern there will be development of other practices and
development of better resources to tackle this issue of rising energy consumption use (Dietz
2015). Given this concern as presented in research, media reports on energy sourcing in Australia
seems to support the same. In specific it has been noticed that people in different countries look
forward to their local energy supply and distributors to work with better accessibility. Demand
concerns are expected to be resolved immediately and also customer segments that are fast
growing are expecting the companies to keep up with their varied needs. Even companies that
have been in the business for 10 and more years are seen to have concerns now as competitive
companies have risen. The competition necessitates that businesses have to become more
sustainable in their practices. Smith (2013) in the book ‘Scarcity and growth reconsidered’
argues that in the current times there has been an increase in energy usage. This has caused a rise
in the energy costs. The reasons for rise in the energy costs are because of the supply and the
demand principles that has been embedded in this design. Energy is required for the sustenance
of the people. This has cost the energy prices to rise high. In this situation to combat this rising
energy costs in the society people are found to consider other forms of energy resources. People
are considering using the renewable energy sources for this reason. It can be understood that
there are many forms of energy technologies but people want to utilize the low cost energy
sources that do not wreak havoc on the systems. It is also being considered that the pricing of the
energy is significant to the economies and indicates a number of other factors influencing the
societies. Affordability causes a big issue due to this there has been a subsequent concern for the
rise in energy costs and since the renewable energy sourcing and the costs of such technologies
are also higher in a comparative sense it thus follows that businesses will need to focus on costs
in a more holistic way.
7. Research media reports and current research on energy use statistics of the Australian
communities indeed do support the theory that Australian communities are indeed seeking
renewable energy options (Smith, 2013). Hence the people might prefer those energy options
where they are assured that the businesses know they are given the most suitable option for the
consumer. They want to be assured that the energy planning and more are well developed for the
consumer and also want business to offer to them information on energy developments in a more
continued fashion. Only those companies that are able to combine cost element and also ensure
that the energy needs for the consumer are met in a proper way will hence be able to attract
better consumers. Companies are expected to build affordable energy infrastructures that the
consumers would be able to trust for many years to come now. In terms of technology too,
people are much more informed in current times than they were in the past. This shows that
people like and prefer different energy technologies. As Lind et al (2013) shows in a research
article, energy technology has been considered to be the process involved in the extraction,
conversion engineering. It also deals with having a robust, safe, economical and sustainable
system. Energy systems are created because the companies and the people want to have a higher
efficiency of the processes. Energy is needed for sustenance in the environment. There is
gathering and usage of energy resources of which some are environmentally friendly and some
are detrimental to the environment. In spite of the issues some energy systems have on the
environment they have been in practice because of the obvious impact it causes on the
economies. Thermodynamics, electrical, thermal, wind are some of the energy resources systems
that has been used in the current times (Lind et al, 2013). There has been an established
technology and infrastructure based on the conventional fossil fuels. There is a lot of economic
capital that is required for the processes. In these indispensable times, the conventional fossil
fuels are used. Renewable energy resources have lower impact on the environment in these
conditions they are considered. The energy technologies that has been used in the current times
are accepted by people and yet there remains a need for better technologies. Companies that pair
up with other international companies and are able to bring better technology and energy use will
hence be preferred by Australian people then, as research studies state. Furthermore, it has been
observed that many companies do need continuous support too. The customer information search
makes these forms of support functionalities critical to businesses (Smith, 2013).
Chapter 4: Methodology
4.1. Mixed Research Methodology
The research makes use of a mixed research approach with primary data collection. The
advantages of the mixed research lie in that it makes use of both qualitative data and quantitative
data, (Arksey, and O' Malley, 2005). In qualitative data that were more understanding of the
issues from a quality perspective. The intangibles of the situation are deciphered in this area.
However, there are some gaps in this process. The researcher cannot reply on only the qualitative
data to form opinions without the backing of the statistical data. Quantitative data is used in
cases the data has been collected in bulk. In these cases, where the data has been collected in
bulk there is more awareness of the situation and consideration of where the mass markets feel
about issues and the situation. There are some gaps in this analysis (Arksey, and O' Malley,
2005). In these cases, the people are not able to understand about some of the intangible is the
8. situation and there are some gaps in this research data. In these cases, it has been considered that
the best form of research is mixed method research. In this case there is holistic understanding of
the situation because all the variables are considered in this research design. The issues in one
research method is addressed in another in these cases these research method has been widely
followed by the researchers. These are the advantages of the mixed method research in design.
4.2. Primary Research
In the case of primary research, the veracity of data can be original and the information is
actually got from the sources and hence the target issues are addressed in an easier manner. The
researcher can focus their efforts to collect the data for the actual question that is required. The
specific market data can be used instead of mass market data. The data interpretation tools are
better in this case. The researcher can use the exact tools to make analysis of the subject and then
form opinions for the same. They need not depend on the interpretation made by others in this
process of secondary data. The data that has been collected in many cases are found to be
obsolete owing to the time when it was collected (Smyth, et al, 2013).Due to this the research has
access to a more recent data. This will give the researcher more clarity of the data that has been
collected. The proprietary issues need not be addressed in this case. There is more ownership of
the data and the researcher has more clarity n this process. This is the best form of research
collection as it answers to the exact query that has been researched in this process. These are the
advantage of the primary research for which the research technique has been made use of here.
However, there are challenges in using primary research too which the researcher had to be
aware of. Primary research is considered as a research where the researcher has to find the data
from the actual data source. Even though there are many advantages in this process there are also
some inherent disadvantages. Major challenge that is involved in the primary research is the
costs involved in the process. This is a costly proposition were the researcher has to be involved
in all the design process. This process can be time consuming. There is an exhaustive process
that is involved in the process of data collection. It takes a lot of time to collate data from the
exact sources (McDaniel, and Gates, 2004). The feedback from the target audience may not be
accurate at all conditions. In many cases the feedback depends on the kinds of questions that has
been posed to the people. It is sometimes biased and not very accurate. In many cases the
participants reflect the views of the researcher and this is not always accurate. Prejudices of the
people are exposed in this process. The sheer volume of resources involved in this process is
quite high. Owing to this there is a lot of difficulties involved in the collection of the larger
quantitative data. This these are the challenges faced in primary research and the reason that
researchers look for other kinds of research methodology.
4.3. Participants
The participants selected for the research are about 100 in numbers, they were selected by
advertising on online bulletin boards, Craig’s list and more. A random sampling method was
employed here.
9. 4.4. Tools Used
A survey questionnaire method was used here. The survey questionnaire method is
efficient for collecting information from a large scale of people compared to the interview
method and others were the number of people would have been limited.
4.5. Limitations of the study
A major limitation of the study is that here it was not possible to make use of attitudinal,
emotional information like the kind that can be collected from interviews, but this is not a major
limitation as the questions have been made quite comprehensive in order to reduce bias.
Secondly the research lacks triangulation, but the use of secondary research studies for critiquing
the data solves the issue of triangulation to a certain extent.
Chapter 5: Results and Discussion
5.1. Screeners
S1. Are you the main or one of the main decision maker(s) in your household when it comes to
deciding which energy company to use?
100 percent participants fell in this category.
S2. Which State or Territory do you live in?
S3. Which best describes the area you live in?
State/Territory
NSW VIC QLD SA
10. S4. Gender (70% Male, 30 % Female)
5.2. Data on Participants
1) To which of the following age groups do you fall into?
2) Please tell us your combined household income. (not for SME)
State/Territory
City Inner Suburb Outer Suburb Regional Rural Area
0 5 10 15 20 25 30 35 40
18-24
25-34
35-44
45-54
65+
Age Group
Age Group
11. 5) Please tell us your highest education level: (res only)
20 percent graduate Diploma, 40 percent Advance Diploma and 30 percent Bachelor and 10
percent PG
Core Questions as Related to the Hypothesis
6D) Current Company
0 10 20 30 40 50 60 70
$10,000 – $39,999
$40,000 – $79,999
$80,000 – $119,999
Over $150,000
Don’t Know
Age Group
Age Group
Sales
Simply Energy Lumo AGL
Origin Energy Energy Australia / TRU Energy Red Energy
Momentum Energy Other
12. The Hypothesis 1 assumed is that customers in general are not currently satisfied with
their energy providers (this is inclusive of simply energy and other companies) and the
statements which test for their satisfaction are hence identified. For question 6f consumers
answers as follows.
In terms of recommendation for current energy provider it is seen that only 63 percent
answered that they were very likely to recommend their current energy provider to someone else.
22 percent answered they were not neither likely nor unlikely indicating they might be looking
for some option in the market and around 15 percent answered that they were not likely, so they
might not be satisfied. In general, since the major percentage of the population answered they
would likely recommend their energy provider it can be said that the Hypothesis is true.
Hypothesis 2: Customers will continue to use Simply Energy because they trust the company
This hypothesis is proved by checking correlations between the customer levels of trust
and how this correlates with that of their continued use. Visual correlation is considered.
Not at All Likely
15%
Neither
22%
Very Likely
63%
Recommendation of Current Energy provider
13. In the second hypothesis it is seen that as customers agree to a continued use because
they trust the company. Where the percentage of trust is high there the customer is seen to agree
to continued use and where the percentage of trust is zero or less then the usage will also be less.
The hypothesis is hence true.
Hypothesis 3: Customers will recommend Simply Energy to friends and family because they
trust the company
Trust and recommendation are connected, but yet the connection is not as clear as in the
case of trust and recommended use. It is seen that with lack of trust or with neither trust or un-
trust a certain percentage of customers would recommend the company, hence this hypothesis
cannot be proved.
Hypothesis 4: Customers are 'energy educated' (meaning they are aware of energy cost impact,
energy consumption, technology and options)
0
10
20
30
40
50
60
70
Agree Neither Do not Agree
Trust and Continued Use
Will Continue to Use Trust Recommend
14. Is customer energy educated? Here it is seen that customers do have knowledge on
energy cost, energy options, energy technology and energy consumption. It is seen that customer
and their awareness of some of these elements will decide their continued use. A major
percentage of the participants agree that knowledge on these elements will determine the
continued use of the company and hence it can be said that the hypothesis is hence proved.
Hypothesis 5: Customers prefer Simply Energy to be a stable energy standard because it is
competent in delivering their requirements.
The percent agree approach is used to understand this, here a direct question is being
rated by the participants. For this a maximum percentage of peoples 75 percent agreed that the
company was a quite stable energy standard. So from this it can be said that this hypothesis is
hence proved.
Hypothesis 6: Customer connect Simply Energy to Australia ideals
The percent approach is made use of to understand how customers rate the company
based on how Australian it is, how it understands national standards and more. In questions
connecting the company to the nationalistic image, around 60 percent of the consumers agree
that the company based in Australia had access to leading resources. Around 70 percent agreed
that they know the future energy possibilities for Australia and around 38 percent agreed that
they support Australian communities and charities also.Similarly, most questions on the subject
showed consumers agreed to the statements connecting company to Australian ideals reflecting a
higher percentage and hence this hypothesis is proved.
0
10
20
30
40
50
60
70
80
Agree Neither Do not Agree
Agree that Use will Depend on These options
Energy Cost Energy Options Energy Technology Energy Consumption
15. Hypothesis 7: Customers have a positive opinion on Simply Energy because it informs them on
their energy options and is focused on sustainability.
In the statements on whether Simply Energy knew the best energy possibilities, it was
stated by around 70 percent of consumers that Simply Energy had appealing options. Around 65
percent stated that they had energy plans that would help them. Around 55 percent agreed that
they energy options are more affordable to them, and around 60 percent agreed that they offer
good advice on developments in energy. With more than 60 percent finding their interaction in
business both proactive and appealing to them in a literal sense. Based on the answers of the
participants it can hence be concluded that the customers have a very positive opinion on Simply
Energy and hence this hypothesis is true.
Recommendations
Renewable energy sourcing is better in the long run. Ghauri, and Grønhaug, (2005), in
their research article show how renewable energy sources are better because of the availability of
the resources and their impact they cause on the societies. In the case of fossil fuels there is only
limited reserves. In this situation they also cause higher levels of carbon footprint in the
societies. This is detrimental to the societies and how they impact on the societies. owing to this
other energy sources needs to be developed in the societies. This usage of fossil fuels can cause
sustenance issues in the societies. Due to this renewable energy sources are considered. There are
no issues of the depletion of the resources and it is considered to be a better for the environment.
It is found to reduce the carbon emissions and carbon foot print. It is easier for the environment
once the infrastructure to support renewable sources has been established. It also ensures that
there are no sustainability issues in the environment from using the energy sources. Owing to
these factors renewable energy sources are considered to be better. This is the reason for
considering renewable energy sources are better than other sources of energy. Based on the
current research and the primary study conducted it is found that consumers of energy in
Australian are highly educated and informed when it comes to energy use and sourcing and
hence companies such as Simply Energy must focus on developing and supporting consumers in
this trend.
Conclusions
The purpose of this research was to identify and assess Simply Energy in the current
energy market of Australia. Simply Energy is one of the many energy firms in Australia and
hence faces much competition from others. The research is conducted in the backdrop of the
current situation in Australia and in other countries where there is an increased need for
renewable energy sourcing. Renewable energy sourcing needs are rapidly on the rise and
meanwhile consumers are not satisfied with the way current companies are meeting their needs.
In this context, this research attempts to interact with the existing consumers of Simply Energy
and find out how these consumers can in fact be satisfied.
The use of the primary research has been helpful in order to ensure that data is directly
collected from the participants and also the use of primary research ensured that more data could
16. be collected. From the data it was identified that consumers on a large scale are indeed satisfied
with their current energy providers and more properly are satisfied with Simply Energy. They
show they are informed by Simply Energy in many ways which makes them trust the company,
and they also have stated that because of the trust they would continue to use the company and
would also make recommendations for others to use the company.
In the assessment it can hence be said that Simply Energy at its current market position is
indeed not threatened, but it could face issues later because of the growing macro environmental
issues of sustainability and need for renewable energy sourcing. So this should hence be the next
point of analysis for the company in the long run and this is the main recommendation made by
the researcher.
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