Topic Investigating The Determinants Of Electric Vehicle Purchase Intention.pdf

TRUONG DAI HOC NGOAI THUONG VIEN KINH TE VA KINH DOANH QUOC TE RESEARCH PROPOSAL Topic: Investigating the determinants of electric vehicle purchase intention Instructor : M.A Dau T

TRUONG DAI HOC NGOAI THUONG VIEN KINH TE VA KINH DOANH QUOC TE

RESEARCH PROPOSAL

Topic: Investigating the determinants of electric vehicle

purchase intention

Instructor : M.A Dau Thu Huong Class : ESP121.31 Group : Group 03

Hanoi, April 2024

No Name Student ID

TABLE OF CONTENTS

1 Introduction

1.1 Recent trends of electric vehicles wb 1.2 Urgency of subject

1.3 Research objective

2 Literature review

2.1 Background theories

2.1.1 Consumer behaviour

2.1.2 Buying behaviour

2.2 An overview

2.3 Research model

3 Research methodology

3.1 Research design

3.2 Sampling strategy

3.3 Statistics illustrations

3.4 Ethical considerations

4 References

1 Introduction

Electric vehicles (EVs) have emerged as a promising alternative to traditional gasoline-powered vehicles due to their environmental friendliness, energy efficiency, and technological advancements As governments worldwide implement policies to promote EV adoption, understanding the factors that influence consumer purchase intention is crucial for the successful transition to a sustainable transportation system This study aims to investigate the determinants of electric vehicle purchase intention by examining the interplay of psychological, social, and economic factors

The paper will begin by providing an overview of the current state of the EV market and highlighting the significance of understanding consumer purchase intention Next, the theoretical framework will be presented, drawing upon established theories from psychology, sociology, and economics The key determinants to be investigated include environmental concerns, perceived performance, social influence, economic considerations, and government incentives

The methodology section will outline the research design, data collection method, and analytical techniques employed in the study A comprehensive literature review will be conducted to identify relevant studies and establish the empirical foundation for the research Quantitative data will be collected through a structured survey questionnaire administered to a representative sample of potential EV consumers The data will be analyzed using appropriate statistical methods to test the hypothesized relationships between the determinants and purchase intention

1.1 Recent trends of electric vehicles wb

The transportation sector has emerged as a significant contributor to global environmental issues, accounting for nearly a quarter of total greenhouse gas (GHG) emissions in 2020 [1] Conventional gasoline-powered vehicles play a major role in climate change and air pollution, prompting a global shift towards more sustainable transportation options Electric vehicles (EVs) have emerged as a promising solution, offering a cleaner and more environmentally friendly alternative Powered by electricity from batteries, EVs produce zero tailpipe emissions, offering the potential to significantly reduce air pollution, particularly in urban areas

The environmental impact of conventional gasoline-powered vehicles is substantial, contributing to climate Change - Emissions from these vehicles primarily

consist of carbon dioxide (CO2), a major greenhouse gas The accumulation of CO2 in the atmosphere traps heat, leading to global warming and climate change, with its associated consequences such as rising sea levels, extreme weather events, and disruptions to ecosystems About air Pollution: Exhaust fumes from gasoline vehicles release harmful pollutants like particulate matter (PM), nitrogen oxides (NOx), and sulfur oxides (SOx) These pollutants contribute to respiratory illnesses, cardiovascular diseases, and even premature death

EVs offer a compelling alternative to traditional vehicles by addressing these environmental concerns: Reduced Greenhouse Gas Emissions - Compared to gasoline vehicles, EVs release significantly lower levels of GHG emissions, particularly CO2 Studies suggest EVs can reduce CO2 emissions by up to 90% over their lifetime Energy Efficiency: EVs boast greater energy efficiency than gasoline vehicles They convert a much higher percentage of electrical energy into power at the wheels, reaching up to 77% compared to the 12%-30% efficiency of gasoline vehicles Noise Reduction: EV operation is considerably quieter than gasoline vehicles This translates to reduced noise pollution in urban areas, contributing to a more peaceful environment

The global market for EVs has experienced rapid growth in recent years, driven

by technological advancements, supportive government policies, and increasing consumer awareness of their environmental benefits In 2021, global EV sales reached 6.6 million units, representing a remarkable 109% increase from 2020 This growth is expected to continue in the coming years, with projections forecasting global EV sales

to reach over 26 million units by 2026

Battery technology has undergone significant improvements in recent years, leading to EVs with longer ranges, shorter charging times, and lower costs These advancements have made EVs more practical and appealing to consumers Battery Range: Battery range has increased significantly, with many EVs now offering ranges

of over 250 miles on a single charge This range anxiety, a major concern for early EV adopters, is becoming less of an issue Charging Times: Charging times have also reduced, with fast-charging technologies enabling EVs to be charged in as little as 30 minutes This makes EVs more convenient for longer trips and everyday use Battery Costs: Battery costs have been steadily declining, making EVs more affordable for consumers This trend is expected to continue, further driving EV adoption

Many governments worldwide are implementing policies to promote EV adoption, recognizing their potential to reduce GHG emissions and improve air quality These policies include: Tax Incentives: Governments are offering tax incentives to make EVs more affordable for consumers These incentives can take the form of tax credits, rebates, or exemptions Governments are providing subsidies to encourage the development and production of EVs These subsidies can help reduce the cost of EV manufacturing and make EVs more competitive with gasoline-powered vehicles Investments in Charging Infrastructure: Governments are investing in the development

of charging infrastructure to make it easier for EV owners to charge their vehicles This includes installing public charging stations at homes, workplaces, and along major roadways

Consumers are becoming increasingly aware of the environmental benefits of EVs and are showing a growing interest in purchasing them This is driven by several factors Media Coverage: Media coverage of climate change and air pollution has heightened public awareness of the environmental impact of transportation Government Campaigns: Government campaigns promoting EVs have raised awareness of their benefits and availability Positive Word-of-Mouth: Positive experiences from EV owners are influencing others to consider purchasing EVs

1.2 Urgency of subject

For centuries, fossil-fuel vehicles have been human’s dearest friend It all began

on early 20th century when fossil fuel started to activate human’s machines and transportation system, as well as human’s activities It can’t be denied that fossil fuel gave so much easiness But then, in the other side those are also consequences that can’t

be denied coming from the using of fossil fuel Road traffic contributes to 1/5 of CO2 emissions, greenhouse gases Furthermore, carbon emissions from fossil fuels in Vietnam decreased by 5.4% in 2020 amid social shutdowns due to the covid-19 pandemic, but the new report forecasts a 4.9% increase in this year (from 4.1% to 5.7%) with a total of 36.4 billion tons of carbon Citing the importance of taking action on climate change, many governments have initiated policies to reduce CO2 emissions by stimulating the production, introduction and adoption of electric vehicles (Bray and Mahony , 2011) Those consequences are turning into the urgency for humans to move from using fossil-fuel vehicles onto electric vehicles Around the world, air pollution caused by vehicles is increasingly serious Therefore, the important task today is to learn and come up with appropriate methods to stimulate customers to use electric vehicles more to minimize the burden of environmental pollution Therefore, to promote electric vehicle adoption, it is important to understand how consumers perceive electric vehicles and what the barriers to electric vehicle adoption are

1.3 Research objective

Based on the provided literature review, this research aims to identify the key factors influencing the purchase intention of electric vehicles (EVs) in Hanoi, Vietnam The study will employ a mixed-methods approach, utilizing both qualitative and quantitative data collection methods

Identify the key factors influencing individual EV purchase _ intention: Environmental awareness: To what extent does environmental concern influence the decision to purchase an EV

Price: How does the upfront cost and maintenance cost of EVs compared to traditional vehicles affect purchase decisions? Interest in technology: Does the appeal

of cutting-edge technology associated with EVs influence purchase decisions? Social aspects: To what extent do social factors such as social image or peer pressure influence

EV purchase intention? Identify the key factors influencing business EV purchase

intention: Efficiency and cost reduction: How does the potential for improved operational efficiency and cost reduction through lower total cost of ownership (TCO) influence business decisions to adopt EVs? Corporate Social Responsibility (CSR): To what extent does the desire to enhance a company's image as a sustainable organizatior and comply with environmental regulations influence EV adoption?

Compare and contrast the factors influencing individual vs business EV purchase intention: Are there significant differences in the factors that motivate individuals and businesses to purchase EVs? How do these factors interact and influence overall EV adoption rates in Hanoi?

Develop a comprehensive model of EV purchase intention in Hanoi:By integrating the findings from both individual and business data, the research will develop

a model that reflects the key determinants of EV purchase intention in the specific context of Hanoi

This research will contribute valuable insights to policymakers, businesses, and marketing professionals by providing a deeper understanding of the factors driving EV adoption in Hanoi The findings can be used to develop targeted strategies to promote

EV sales and accelerate the transition towards a more sustainable transportation system

in Vietnam

2 Literature review

2.1 Background theories

2.1.1 Consumer behaviour

Every firm aims to comprehend the inner workings of a consumer's mind and precisely what drives them to make a purchase This can only be accomplished by carefully examining purchasing trends and developing theories and models

By forecasting the manner and timing of a customer's purchase, consumer behavior theory assists companies and marketers in taking advantage of consumer behavior It is the study of how individuals make choices while making purchases It is helpful to pinpoint the factors that impact these choices and to emphasize proactive behavior manipulation techniques

Customer behaviour is shaped by a few key factors Firstly, psychological factors include a person’s attitude, perceptions about a situation, their ability to understand information, what motivates them, their personality, and their beliefs

For example, a person who is actively reducing their plastic consumption will buy differently than someone who doesn’t believe in climate change Secondly, personal

characteristics include age, gender, financial situation, occupation, background, culture, and location An older person will probably shop in a different way than a younger person, for example, with a preference for brick-and-mortar stores rather than online shopping Lastly, social influences can include a person’s friends, family, community,

work or school community, or groups they associate with, such as a local church or hobby group It can also include social class, living conditions, and education A shopper who is at a school where a certain style of trainer is in fashion might search out similar shoes to fit in with their peers

2.1.2 Buying behaviour

Buying behaviour is the set of activities and exchanges a customer engages in before, during, and after a business transaction Experts often examine this process in market research and work with company owners to identify opportunities for process and product/service improvement Customers often establish distinct patterns of behavior that, when examined, provide very insightful information that supports data- driven decision-making

Multiple factors influence what people decide to buy To develop effective marketing strategies and satisfy the demands of their target audience, businesses need

to be aware of these traits Important purchasing considerations are as follows:

Psychological elements - one of the main factors influencing consumers’ purchasing decisions is this Although these characteristics are difficult to evaluate, they are strong enough to affect a buyer's choice to purchase A purchase choice may also be influenced by other factors, such as the desire to purchase a thing, how others see it, what is known about it (pros and cons), and the opinions and attitudes of other people and past customers

Social elements are taken into account as we live in a social environment where

we affect one another's purchasing decisions because we are social creatures We mimic others in an attempt to fit in and be accepted by society As a result, the individuals in their immediate vicinity have an impact on their purchasing decisions Buying behavior may be influenced by a variety of variables, including roles, status, family, and peer

groups.

Cultural influences reflect the fact that we are identified with certain beliefs and ideals that are exclusive to a certain group When an individual originates from a certain community, the culture associated with that group has a strong impact on their behavior, including their purchasing habits Cultural influences on purchasing behavior include castes, religion, culture, and subcultures

Personal considerations Customers’ purchasing decisions are influenced by personal factors Individual differences in these personal aspects result in varying views and customer behavior A few variables that affect purchasing decisions include age, lifestyle, money, and personal convictions

2.2 An overview

Numerous regional and global studies on the characteristics of electric vehicles and the infrastructure that supports them have been published since the 2010s According to Bunce, Mersky, and others, user experience has an effect on customer purchasing decisions based on the effectiveness and accessibility of the charging infrastructure This study, which was undertaken in the UK, also confirmed that the general public now has misunderstandings relating to EVs' potential weaknesses and a limited comprehension of them Previous research investigating prospective purchasers’ views toward electric vehicles has revealed little desire to pay extra for a car that seems less practical than a normal vehicle (Chéron and Zins, 1997) Meanwhile, According to Sun Xiaohua and others, the vehicle's price plays a crucial role [9] There are five influencing elements, such as post-sales service and purchase pricing

Considering government policy, Sierzchula et al discovered that fiscal incentives may boost the rate at which electric vehicles are adopted, based on surveys and research conducted in more than 30 nations However, the study also discovered that US fiscal policy has little effect on the sales of electric vehicles According to Li Guodong et al.'s analysis of 87 pilot cities' policy combinations between 2014 and 2018, the sales of electric vehicles were deemed to be somewhat impacted by the policy of electric vehicle subsidies According to the research, policies pertaining to purchases and traffic restrictions can successfully raise awareness of the benefits of electric vehicles in congested cities It is obvious that policy elements work differently depending on the context