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Prediction of consumer purchase intention to adopt electric

vehicles

A CAPSTONE PROJECT REPORT

Submitted by:

Priyanka Bhardwaj(11814962)

Nakul Kapoor(11815292)

Divita Tripathi(11805783)

In Partial fulfillment of the Capstone Project for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Mittal School of Business

LOVELY PROFESSIONAL UNIVERSITY

Phagwara,Punjab
December 2019

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TABLE OF CONTENT

S.No. Topic Page No.


1 Certificate 3

2 Acknowledgement 4

3 Executive Summary 5

4 Introduction 6-10

5 Review of Literature 11-21

6 Need of study: Scope and Limitations 22

7 Objective of study 23

8 Research Methodology 24-31

9 Data Analysis and Findings 32-45

10 Conclusion and Suggestions 46-47

11 References 48-52

12 Appendix 53-55

13 PAC Approval Performa 56

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CERTIFICATE

Certified that the Capstone project report “Prediction of consumer


purchase intention to adopt electric vehicles” is the bonafide work of
Priyanka Bhardwaj (Regd. No: 11814962), Nakul Kapoor (Regd. No:
11815292) and Divita Tripathi (Regd. No: 11805783), students of
Master of Business Administration (MBA) of School of Business,
Lovely Professional University carried out under my supervision.

Signature of Capstone Mentor:


Date :
Name of Supervisor : Mr. Hitesh Jhanji
Designation : Assistant Professor, LPU

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Acknowledgement
We have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals. We would like to extend
our sincere thanks to all of them.

We are highly indebted to Mr. Hitesh Jhanji, our Mentor and Professor for his
guidance and constant supervision as well as for providing necessary information
regarding the project and also for his support in completing the project.

My thanks and appreciations also go to our HOS Mr. Rajesh Verma who saw
scope in our field of research and provided us the opportunity to do the project.

We would like to express our gratitude towards Lovely Professional University to


give us platform to conduct a research.

Priyanka Bhardwaj

Nakul Kapoor

Divita Tripathi

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EXECUTIVE SUMMARY

EVs will become the norm in about a decade and can be seen as an indication that these markets
are much more equipped for aggressive marketing and product launch by automotive companies.
The production and marketing of electric vehicles were motivated by contemporary environment
al concerns.Nearly all international producers of electric vehicles and component suppliers have
been intrigued by the combination of Indian skilled and semiskilled engineering base, a large cus
tomer base market, and relatively cheaper production and labor costs. In order to study Indians '
commercial success and willingness to buy electric vehicles, the factors affecting the customer
acceptance of these vehicles need to be studied. Various factors affecting electric vehicle buyers '
purchasing decisions are human expectations of dimensions like environmental concern, attitude,
subjective norms, perceived behavioral control, green moral obligations. As with the market-
centered product, understanding customer preferences is an effective means of understanding the
clear realities and influencing the automotive industry that is moving towards EVs. Universally,
supporting government policies have quickly tracked the development of the EV industry and
consumers understand and realize this thing.
At almost the same time, consumers still feel that it is the duty of automotive manufacturers to so
me degree, who should be more involved in moving forward EVs rather than playing safely.

So the survey was conducted among the 201 residents of Ludhiana who are working in service
sector to understand what are the factors that are affecting the purchase intention of individuals
The survey reveals that attitude, green moral obligation and perceived behavioral control have
significant impact on the purchase intention of individual whereas subjective norm and
environmental concern has no such impact.
Consumer sentiment towards EVs is positive in particular.This survey highlights some aspects of
consumer frame of mind that are important to the sustained growth of EVs, including factors tha
t influence Evs ' decision to buy from consumers.

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INTRODUCTION

Air pollution and contamination is considered to be the biggest problem world has to face in the
coming years. The world is turning towards renewable energy based transportations as an
alternative to fuel based transportations because of little or no- emissions benefit. World Health
Organization revealed that about 7 million people lose their lives every year due to air pollution
out of which 2 million cases are alone from South-East Asia region. In European Union, Out of
the total carbon emissions automobile sector contributes the most i.e. 20%.In India also the case
is no different as the health cost of air pollution has been increasing at 3% of India’s GDP
(Central pollution control board of India).Not only that, transport sector is estimated to emit 261
tons of CO2 each year contributing almost 80% of the total carbon emissions. According to a
report of International Energy Agency on carbon emissions, global energy-related carbon
emissions rose 1.7% to a monumental figure of 33.1 Gt CO2 and China, India and United States
accounted for 85% of the total figure.The quantity of engine vehicles, a significant contributor to
air contamination, in India has gone from 37.2 million out of 1997 to 100 million of every
2012.In fact in India,Urban cities like Delhi alone is contributing nearly 66% of the total
pollutants released every day. Another major revelation regarding transport sector in India is that
out of total energy production in the country Transport sector alone consumes 17% and 60%
share in the total GHG production comes from this sector only.
In order to reduce pollution, the carbon emissions need to be checked as soon as possible. This is
where Electric vehicles (EVs) can be of big use as a sustainable option. EVs with electric power
and rechargeable facilities can achieve zero fuel consumptions and zero carbon emissions if
provided by proper infrastructure and facilities. Simply by bringing electric transports into the
public transport system in China, it has cut its oil utilization by 300,000 barrels for every day,
which encourages it to reducea cost of $5 billion on oil imports every year. The success of EVs
in vehicle market largely depends on consumer’s perception and adaptability towards these
vehicles. However, consumers’ attitude towards the acceptance of this technology has been
mostly skeptical because of less knowledge or experience. There isn’t any specific preformat to
decide how consumers take a decision regarding the greener options of transport and what makes
them do so but still there exists some factors that lead to designing of opinion in the minds of
potential customers. Some of the factors can be demographic categories, income level, openness

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to adoption of new technology etc. This is a known fact that there will surely be many design
changes in the EVs as compared to the normal cars which potential drivers have to adapt such as
including limited range, the charging procedure, regenerative braking, and extremely low noise
(Urban, Weinberg, & Hauser, 1996).Another major factor regarding adoption of EV would be
willingness of potential buyers to pay relatively higher prices for the additional challenges that
this technology will bring. Also, lower energy charges would be an appreciable attempt to cover
the higher acquisitions charges for the electric vehicles of any sort. An electric vehicle (EV) is
one that works on an electric engine, rather than an inner ignition motor that creates control by
consuming a blend of fuel and gases. These vehicles are viewed as a potential substitution for
current-age car, so as to address the issue of rising contamination, a worldwide temperature
alteration, exhausting normal assets, and so on. Despite the fact that the idea of electric vehicles
has been around for quite a while, it has attracted a lot of intrigue the previous decade in the
midst of a rising carbon impression and other natural effects of fuel-based vehicles. A significant
component of EVs is that drivers can connect them to charge from an off-board electric control
source. This differentiates them from hybrid electric vehicles, which supplement an inside
ignition motor with battery control however can't be connected. There are many types of electric
vehicles which are basically divided into two categories. All electric vehicle (AEVs) run
uniquely on power. Most have every single electric scope of 80 to 100 miles, while a couple of
extravagance models have runs up to 250 miles. At the point when the battery is exhausted, it
can take from 30 minutes with quick charging mode up to about an entire day with Level 1
charging to revive it, considering the sort of charger and battery installed in the vehicle.
PHEVs run on power for shorter extents (6 to 40 miles), at that point switch over to an inside
ignition motor running on fuel when the battery is drained. The adaptability of PHEVs enables
drivers to utilize power as frequently as could be expected under the circumstances while
additionally having the option to fuel up with gas if necessary. Controlling the vehicle with
power from the matrix lessens fuel costs, cuts oil utilization, and diminishes tailpipe outflows
contrasted and customary vehicles. When driving separations are longer than the all-electric
range, PHEVs act like cross breed electric vehicles, expending less fuel and creating less
discharges than comparable regular vehicles. Contingent upon the model, the inward burning
motor may likewise control the vehicle at different times, for example, during quick quickening

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or when utilizing warming or cooling. PHEVs could likewise utilize hydrogen in an energy
component, biofuels, or other elective energizes as a back-up rather than gas.

Challenges for electric vehicles market in India


Inadequate charging infrastructure:

India is accounted to have 650 charging stations in 2018, though China had over 456K charging
focuses around the same time. Notwithstanding charging focuses, the absence of private parking
spots is additionally noted as a deterrent for electric vehicles appropriation, and the absence of
moderate sustainable power source implies charging EVs is putting a toll on the effectively
focused on coal-fueled power network.

Reliance on battery imports,imported components and parts Incentives linked to local


manufacturing:

The infrastructure related to battery production in India is not yet efficient enough to provide
support for EV industry. Large dependence on imports puts a heavy load on government in terms
of costs hence it’s not feasible enough to completely change the trend towards electric vehicles.

Incentives linked to local manufacturing:

Unclear state of incentives regarding manufacturing of EVs to manufactures also creates a scene
of dilemma for the industry as it doesn’t goes with the vision of creating Indian automobile
industry fully electrified and automated. Whereas incentives highly motivates them to change
their course of action in favor of electric manufacturing.

Range anxiety among consumers:

Range nervousness is the thing that shoppers experience the ill effects of realizing that the
electric vehicle probably won't have adequate range to take them to their goal. This is profoundly
connected to the absence of charging foundation in the nation, and keeping in mind that
traditional vehicles can be refueled at petroleum stations, such regularized framework isn't yet
accessible for EVs.

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High price of EVs currently:

Further, the normal cost of electric vehicles in India is around INR 13 Lakh, a lot higher than the
normal INR 5 Lakh for practical autos run on customary fuel. Additionally, the cost of electric
bikes and bikes in India is between the value scope of INR 70K – INR 1.25 Lakh, when
contrasted with INR 30K – INR 40K cost scope of ICE bicycles and even lower for bikes.

Lack of options for high-performance EVs

Inadequate electricity supply in parts of India

Lack of quality maintenance and repair options

Affected by broader automobile industry downturn.

Government and its support policies

The state is additionally planning to offer motivating forces for production of electric vehicles
and batteries to support financial development and energize nearby assembling under its Make in
India activity.The Indian government has set eager focuses to quicken the appropriation of
electric vehicles (EVs). By 2023, it needs every one of the three-wheelers to run on batteries. By
2025, the same standards will be implemented to bikes. Motivations are likewise being offered to
persuade car producers to invent new EV models and assembling parts, for example, lithium-
particle batteries and electric engines.

The Government began Faster Adoption and Manufacturing of Hybrid and Electric vehicles
(FAME) plot which gives motivating forces to obtaining electric vehicles.Government is
discharging tenders to increment charging framework in the nation. Karnataka endorsed Electric
Vehicle and Energy Storage Policy 2017.

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The vehicle is secured under Government of India's FAME-India (Faster Adoption and
Manufacturing of (Hybrid and) Electric Vehicles) conspire that offers motivators to the electric
and cross breed vehicles going from Rs.1,800 to Rs.29,000 for bikes and bikes and Rs.1.38 Lac
for autos. FAME is part National Electric Mobility Mission Plan by Government of India.

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REVIEW OF LITERATURE

Chéron, E., & Zins, M. (1997) in their research paper has tried to find out the factors that
strongly discourage the customers to buy electric vehicles. The data was collected through an
exploratory research conducted in Montreal, Canada among 4 groups of car users i.e. a total of
37 respondents. The survey reveals that concern of battery recharging is maximum as compared
to range, maximum speed and cost in case of battery rundown. Perceived risk associated with car
is very high like accidents or being running out of gas in deserted area. They have vague ideas
about Evs like small, slow car, less comfortable, less safe, less reliable, car recharging while
running, car for small distances, noisy and less performance etc.

Funk et al (1999) in their research has tried to find out the social costs associated with utilization
of electric vehicles versus those of the traditional, warm created vitality driven vehicles. The data
was collected through secondary sources available in France in Greater Paris by comparing the
data of electric car with models of traditional cars which are both diesel engine and gasoline
engine cars. The survey reveals that the natural costs, say, level of air contamination is more in
oil and diesel vehicles alongside fuel autos when contrasted with EVs of any sort.

Lieven et al (2011) in their research has tried to distinguish obstructions jumping goals of
potential buyers to purchase EVs dependent on two buy criteria – Type and use. The data was
collected through an exploratory research conducted in Germany among 1,192 members who
were viewed as potential buyers of electric vehicles. The survey reveals that out of the absolute
potential purchasers just 5% were required to change over to genuine clients under both the
criteria.

Carley et al (2011) in their research has tried to find out the aim of inspected shopper's to
purchase module electric vehicles and break down that influences their expectations. The data
was collected through an online survey conducted in 21 biggest urban communities in US among
2302 irregular grown-ups. The survey reveals that the open recognitions in regards to the
enthusiasm towards EVs and battery vehicles is low at the time because of absence of limited
time exercises.

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Carley, S. et al (2013) in their research has tried to find out the intention of consumer to adopt
electric vehicle based on their perception of EVs, general vehicle preferences, demographics,
purchasing behavior of cars, travel behavior and awareness of public policies. The data was
collected through a survey conducted in urban areas of USA among the residents and 2302
responses are obtained. The survey reveals that based on people perception of EVs it is believed
by people that top 3 disadvantages of such vehicles are high prices, long recharge time and less
driving range whereas fuel economy is considered to be an advantageous factor by them. Also
people are more interested in buying hybrid cars than EVs. Also looks are preferred. Men are
more interested than women. With increase in additional one year of age interest decreases. Low
education negatively affects the consumer behavior. Travel behavior did not predict purchase
intention with the exception if they are seeing recharging stations on the way. People are not
much aware about public policies of city level electric vehicle support.

Bakker, S., & Trip, J. J. (2013) in their research has tried to find out the role of policy in
adoption of electric vehicles by consumers in cities. The data was collected through a survey
conducted in Netherlands, Europe where 7 experts from 5 European countries were sharing their
experience on effectiveness , efficiency and political feasibility of EVs. Participants lists the
measures their cities providing to people to support EVs which are raising awareness by
displaying information on city websites, supporting businesses by providing subsidies on
purchase, supporting infrastructure required, regulatory measures including free parking space
for EVs, exemption of fees on tolls, government as lead user and cooperation among
governments at all levels i.e. tax exemptions and direct purchase subsidy.

Plötz, P. et al (2014) in their research paper has tried to find out the nature, social status,
financial lucidity and education of ‘early adopters’ of EVs was conducted in Germany. The data
was collected through a public survey conducted on 25000 households who own at least one car
by filling a questionnaire either online or offline. It was found that households with economic
stability were more eager to buy EVs also demographic variables had an important effect on the
adoption decision.

Bunce, L. et al (2014) in their research paper has tried to analyze the stereotype consumers had
towards EVs and its relation to gamification of the vehicle picturing themselves as EV drivers in
the game and further effects of it on the minds of the consumers. The data was collected through

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an online IAT and questionnaire filled by people above 18 years of age all over UK. The survey
reveals that consumers after participating in the game as EV drivers were inclined positively
towards EV and their usage.

Noppers et al (2014) in their research paper has tried to find out the qualities that energizes or
disallows purchaser's appropriation to practical advancements dependent on principally three
characteristics instrumental, natural and representative traits. The data was collected through an
exploratory research in Groningen, The Netherlands among 109 individuals. The survey reveals
that there is a positive relationship between's reception markers and natural properties of
manageable advancements.

Anja diminishes and Elisabeth Dutschke (2014) in their research paper has tried to find out the
aim and view of Electric Vehicles so as to recommend measures to facilitate advancement and
market improvement. The data was collected in the form of examination in Germany among 969
respondents. The survey reveals that there was sure gathering of clients who are progressively
disposed to embrace EVs who as of now have utilized these vehicles.

Brandon Schoettle, Michael Siavk (2014) in their research paper has tried to find out the popular
feeling about self-driving vehicles. The data was collected through a survey in China, India and
Japan among 1722 respondents. The survey reveals that respondents in China and India had
more positive feeling about self-driving vehicles than Japan, despite the fact that, respondents
were hesitant to pay more for the innovation.

Brandon Schoettle, Michael Siavk (2014) in their research paper has tried to find out general
supposition of people about self-driving vehicles. The data was collected in the form of online
polling the U.S., the U.K. and Australia among 1533 respondents who were over 18 years of age.
The survey reveals that the respondents in U.S. communicated more prominent worry about self-
propelled vehicles, information security, safety and cost when contrasted with U.K. also,
Australia.

Oliveira, G. D. et al (2015) in their research has tried to find the consumer intention to adopt
electric vehicles based on purchasing power, fuel consumption, range, carbon dioxide emissions
and EV privileges. Also comparisons of EVs are made with other kind of vehicles in market. The
data was collected through a survey conducted in Portugal among the potential consumers and

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252 respondents were interviewed. The survey reveals that the monetary criteria influences the
consumer behavior maximum and EV privileges have least effect on the same. Consumer
focuses on EVs only when their price decreases or price of fuel that is gasoline, diesel increases
sharply.

Sang, Y. N., &Bekhet, H. A. (2015) in their research paper has tried to understand better the
usage intentions of EV consumers in Malaysia and also to bridge the gap between EV supply and
demand issues. The data was collected through a survey conducted through self-administered
questionnaire distributed to 1000 Malaysian drivers. The outcome of the research was that –
government interventions and infrastructure readiness play are crucial elements for Electric
vehicle usage and adoption from consumer’s perspective.

Rezvani et al (2015) in their research paper has tried to find out the different hindrances in
customer reception of EVs and module crossover vehicles. The data was collected in the form of
profound examination and the survey of writing was done, of articles, distributed in different
research diaries. The outcome of the survey reveals that based on importance, specialists have
concocted five different components influencing shopper's recognition about reception of EVs.

M.Kyriakidis, et al (2015) in their research paper has tried to find out user’s acceptance,
concerns, and willingness to buy partially, highly, and fully automated vehicles. The data was
collected through an online survey by means of a 63-questions among 5000 responses from 109
countries. The result of survey reveals that among respondents, on an average, manual driving
was considered the most enjoyable way of driving. Other issues that respondents were found
concerned about are - software hacking/misuse, legal issues and safety.

Junquera, B. et al (2016) in their research paper has tried to find out consumer intention to adopt
electric vehicles based on technical specifications of electric vehicles like charging time,
consumer viewpoint on price, driver age and driving range. The data was collected through a
survey conducted in Spain, Europe among the car users and 1245 responses are obtained. A
logistic regression analysis is done which shows that more the price and charging time of vehicle
is less is the intention to buy electric vehicle. Increasing vehicle range increases the willingness
to buy. People between 25-65 years are more willing to purchase EVs.

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Hardman, S. et al (2016) in their research paper has tried to find out if there is any statistically
difference between high-end and low-end adopters of electric vehicles based on socio-economic
data, psychographic data, vehicle attributes and future purchase intentions. The data was
collected through a survey conducted in North America, USA among the owners of electric
vehicles and 340 valid responses are obtained. The results reveal that the two groups have
significant difference between the two as far as socio-economic profiles are concerned with high-
end adopters being of high income, high age and high education. Psychographic differences
show high end adopters take less time to adopt a new technology and are empathetic. In terms of
vehicle attributes high end adopters are positive and low end adopters are negative. In terms of
future purchase high end adopters want to continue the ownership and willing to make purchase
in future whereas low end users thinks just opposite.

Morton, C. et al (2016) in their research paper has tried to find out the consumer intention to
adopt electric vehicles based on Innate innovativeness, actualized innovativeness that is based on
list of technologies given to respondents if they possess them or want to have them in near
future, electric vehicle attitudes and electric vehicle preferences. The data was collected through
a self-completion household survey conducted in UK over the cities of Dundee and Newcastle
upon Tyne. The results reveal that actualized innovativeness and electric vehicle attitudes have
significant effect on consumer intention. Consumers have negative preferences for electric
vehicles.

Wang, S. et al (2016) in their research has tried to find out the consumer intention to adopt
electric vehicles using theory of planned behavior (TPB) which is an extended model. The data
was collected through a survey conducted in 10 pilot cities of China among the customers in
Auto 4s shops by distributing questionnaire and 433 responses are obtained. The results of
survey reveals that the three primary elements of TPB model those are- attitude, subjective norm
and perceived behavioral control partially moderates the effect of environmental concerns of
consumers on their viewpoint to adopt EV’s. It means these elements influence the consumer
behavior in a positive manner. This implies that TPB model has power to predict consumer
behavior on adoption of EVs.

Han, L. et al (2017) in their research paper has tried to find out the consumer intention to adopt
electric vehicles based on functional and non-functional values of consumers and how these

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values influences consumers attitude. The data was collected through a survey conducted in
Hefei, China among car users and 607 responses are obtained. The results shows that functional
values has both direct and indirect effect on the attitude of consumer to adopt electric vehicles
whereas non-functional values has only indirect effect on the intention to adopt EV’s, moderated
by attitude.

Wang et al (2017) in their research paper has tried to find out the joint impact of monetary
impetus measures, data arrangement measure and comfort approach gauges on EVs selection.
The data was collected through a survey among 324 respondents who were the clients in Auto 4S
shops in urban communities of China. The results of survey reveal that the three previously
mentioned components are interrelated and acknowledgment of EVs to a great extent relies upon
the consolidated advancement of natural advantages of EVs and these variables.

Li et al (2017) in their research paper has tried to find out the components working for and
against purchaser's expectation to purchase EVs. The data was collected from 40 research papers
through two-advance distinguishing proof from various nations for further examination. The
result of survey reveals that the exploration was led on three parameters in particular, those are,
Demographic components, situational factors and mental variables.

Sang et al (2017) in their research paper has tried to find out the principle explanations for the
hole among request and supply issues alongside the significant components influencing person's
expectation to receive EVs. The data was collected through a poll among 751 vehicle drivers of
Malaysia. The result of survey reveals that there are seven indicators influencing client's purpose
towards EVs which can be additionally utilized in advancing systems by producers.

T Bjørner et al(2017) in their research paper has tried to find out if there should arise an
occurrence of self-driving autos. The data was collected through a survey among 32 inside and
out meetings from Copenhagen inhabitants were led who used to drive in excess of 8,000 km a
year and had no self-governing vehicle experience. The result of survey reveals that the most
noteworthy driving delight from self-driving vehicles has been determined in the event of
congested roads, leaving and driving during occasions and least if there should be an occurrence
of conferences.

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Xiaoxia Dong et al. (2017) in their research paper has tried to find out the normal workers'
availability to make a trip and issues identified with self-propelled transports in broad daylight
transport. The data was collected through a survey among 891 individuals from University of
Pennsylvania. The result of survey reveals that 2-third of the respondents like to board in
driverless transport when there is an individual from the vehicle office accessible on the board
and the level of individuals who are prepared to ride in a driverless vehicle is 13%.

Ricardo A.Dazianoa et al (2017) in their research paper has tried to find out the preparation of
clients to pay more for computerized vehicles. The data was collected through an online poll
among 1260 respondents. The result of survey reveals that a normal family unit would consent to
pay $3500 for halfway mechanization and $4500 for full robotization. Additionally, the interest
of computerized vehicles is spread between high, low and no interest.

Lynn M.Hulse et al (2017) in their research paper has tried to find out open observation about
self-sufficient vehicles as to hazard and acknowledgment of self-sufficient vehicles. The data
was collected through an open online review made accessible through sites, web-based social
networking, and scholastic electronic warning framework among 1048 respondents. The result
of survey reveals that the outcomes were not the same as various street client point of view, say,
increasingly dangerous for a person on foot yet less hazardous for the vehicle traveler.

M. König, L. Neumayr (2017) in their research paper has tried to find out the different frames of
mind and potential mental hindrances of end clients towards robotized autos and fundamental
explanations . The data was collected through an online poll among 460 respondents. The result
of survey reveals that an accepted mental hindrance exists with vehicle drivers, more in females
when contrasted with male, as far as dread to offer control to innovation. The dread can be
because of security reasons, potential programming programmers and framework glitches.

Eric R.Teoh,DavidG.Kidd (2017) in their research paper has tried to find out the unwavering
quality of Google's self-propelled autos versus human drivers as far as wellbeing. The data was
collected through the accounts discharged by Google containing the consequences of
examinations and the police detailed crashes by human drivers. The result of survey reveals that
the number of accidents was a lot of lower for Google vehicles when contrasted with crashes by
human drivers in a specific zone.

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Chana J.Haboucha, et al (2017) in their research paper has tried to find out the sharpness of
individual for deciding to claim and utilize self-ruling vehicle. The data was collected through an
inclination survey among 721 people in Israel and North America. The result of survey reveals
that 44% of the respondent still lean toward standard vehicles over independent ones. It likewise
demonstrated that Israelis are more ready to move to self-governing vehicles than North
Americans.

Habich-Sobiegalla, S. et al (2018) in their research paper has tried to find out consumer intention
to adopt electric vehicles based on social network, macro-level factors, micro-level factors and
product level-technological factors. The data was collected through a cross-national survey
conducted in three countries China, Brazil and Russia among and 2806 responses are obtained in
total. The results reveal that purchase intention of Chinese people is more positive as compared
to Brazilians and Russians. For all the three countries purchase intentions are high for those who
have wider social network. Macro-level factors only affect Brazil whereas government policy
has limited effects on all three. Micro-level factors has weak effect on China and no effect for
other two countries. Purchase cost has no effect on intentions of Brazilians. Technological
effects has no significant effect on all three countries.

Bennett, R., &Vijaygopal, R. (2018) in their research paper has tried to find out the intention of
consumers to adopt electric vehicles based on their attitude, stereotypical thinking, level of
environmental concerns and prior knowledge based on gamification. The data was collected
through a survey conducted in UK where 402 respondents are made to fill questionnaire and
complete Implicit Association Test before and after playing a game that introduced consumers
more about the product. The survey results reveal that all the parameters after playing game got
positively influenced. Improvement of attitude is by 17%, stereotypes by 19%, product
knowledge by 8% and EV ownership by 14%. Even after all these changes willingness to buy
EVs does not change showing that there is not so strong link between willingness and attitude
whereas with other factors it has moderate linking.

He, Xiuhong et al (2018) in their research has tried to find out the personality-perception-
intention framework taking the positive and negative aspects of consumer perceptions into
account. The data was collected through online questionnaire for this purpose, a total of 369
valid responses were taken into consideration from all over China. The results revealed that

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perceived monetary benefit and symbol have positive whereas perceived risk and fee has a
negative impact on consumer EV purchase intention. Perceived environment issues has no
significant relationship with the consumer EV purchase intention.

Zhang, X. et al (2018) in their research paper has tried to measure the joint influences of
incentive policies of govt., environmental impact and perceived risk on consumer adoption of
EVs. The data was collected through questionnaires for this purpose, they were distributed
among MBA students of two elite universities in Beijing, China from which 264 valid responses
were considered. The result showed that the three constructs were correlated and played primary
roles in adoption of EVs.

Jian Feng Zhao, et al. (2018) in their research paper has tried to find out whether the utilization
of self-driving/mechanized vehicle is going to make your life simpler or not. The consequences
of various preliminaries and difficulties from different vehicle look into organizations and
gatherings in various nations were abridged and talked about. The result of survey reveals that
the acknowledgment of self-driving autos isn't affected uniquely by innovation yet in addition by
vehicle cost, social propensities, human brain research, and law. Thus, there is as yet far to go for
the whole commercialization of self-driving vehicles.

RyuichiUmeno, et al (2018) in their research has tried to find out if mechanized driving
influences the drivers confinement contrasted with manual driving or not. The data was collected
with the end goal of the examination, Seventeen drivers were classified into the robotized and
manual activity gathering. The Drivers were told to go along the turnpike and continue to the
predefined goals. The result of the examination reveals that the drivers with computerized
driving framework were not ready to react properly on Request to Intervene.

Eunae Cho, et al (2018) in their survey has tried to find out the buyer's impression of
independent driving by looking at comprehension of incidental drivers (ODs)and successive
drivers (FDs). The data was collected through semi-organized meetings with 41 drivers. The
result of survey reveals that FDs was preferable in distinguishing peril over ODs in self-
sufficient driving conditions. Through the result, it was recommended that adding computerized
capacities to existing autos can be a superior technique to rule the self-ruling vehicle showcase.

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KanwaldeepKaur, GiselleRampersad (2018) has tried to find out the pivotal elements that
influence the acknowledgment of driverless vehicles by normal open. The data was collected
through an online poll was among Flinders University's staff and understudies. The result of
survey reveals that the performance desire, dependability, trust, protection and security are the
principle factors behind selection or dismissal of driverless vehicles.

Simsekoglu, Ö.,&Nayum, A. (2019) in their research paper has tried to find out the consumer
intention to adopt electric vehicles based on perceived accident risks, perceived attributes of
EVs, Theory of Planned Behavior, knowledge about EV’s, Demographic characteristics. The
data was collected through a survey conducted in Norway, Europe among car users and 205
responses are obtained. Regression analysis is done which shows that environmental-economic
attribute, instrumental attributes, symbolic attributes, TPB directly affects consumers intention
whereas perceived accident and knowledge has indirect effect on the intentions. Being male is
negating intention

Huang, X., & Ge, J. (2019) in their research paper has tried to find out consumer intention to
adopt electric vehicles based on theory of planned behavior including consumer’s cognitive
status, incentive policy measures and product perception, attitude and subjective norms. The data
was collected through a survey conducted in Beijing, China among the potential consumers and
502 valid responses are obtained. The survey reveals that the attitude and theory of planned
behavior has positive impact on the intentions of consumer to buy EVs whereas subjective norms
and non-monetary incentive policy has no effect on buying behavior of consumer. Subjective
norm has no effect on purchase intention.

Earl, J., & Fell, M. J. (2019) in their research paper has tried to find out the market potential for
demand for electric vehicles and flexibility of EVs. The data was collected through an interview
survey conducted among 11 electric vehicle manufacturers in the United Kingdom. The results
of survey reveals that the manufacturers see a lot of potential in this market saying time is
needed till 2020 by market to grow. Consumer demand for flexibility can be taken care of by
providing better prices and consumer-led approaches. Study also reveals that manufacturers want
government should encourage their partnerships with other players so as to make vehicles
flexible.

20
Duke, J., and Fell, M. J. (2019) in their research paper has tried to concentrate on produces
viewpoint of potential EV advertise by contrasting request adaptability over, expected esteem
that makers may get from the equivalent. The data was collected through semi-organized
meetings among agents from 11 EV makers dynamic in UK showcase. The result of survey
reveals that producers discovered enough potential in EV advertise yet required more
opportunity for improvement of required foundation and request adaptability in the market.

21
Need of study: Scope and Limitations

Need of the Study


After studying various research papers we found out that among the vast reports that has been
prepared on the matter and other topics related to it, there is not much analysis available on the
consumer intention to purchase Electric vehicles in the state of Punjab, Haryana. Hence, we
chose Ludhiana district of Punjab as our area of study for this particular research. Also, there
exists a considerable amount of population in this area which perfectly fit for our research and is
able to provide with reliable responses to be used in this research.
Scope of the study
Our scope of the research covers the consumer purchase intentions regarding electric vehicles in
Ludhiana region and covers service class respondents in terms of feasibility and affordability of
this consumer class. Our intention in this study is to find out the willingness and perception of
service class group regarding Electric vehicles and the major factors affecting their thought
process regarding adoption of self-driven cars and electric vehicles. The results of this study will
be based on regression analysis and backward elimination method of the primary data collected
during data collection period.
Limitations of the study
Our research study have some unanswered questions which surely can be cue for future
researchers to conduct further study in this particular domain. Of all the various factors included
in the research paper, the impact of government policies regarding the electronic transport
system on the acceptability of consumers in India have not been included in this study although
majority of respondents believe that there is need to bring major political changes in order to
protect natural environment. Another undiscussed topic in this research is which form of electric
vehicles is mostly preferred in general in this region of study as there was very less adaptability
of customers towards EVs in this particular region of Punjab. Also one constraint is that our
study is confined to one city only that too to one section of society which belongs to service
class.

22
OBJECTIVE OF RESEARCH
Research objective is anything that researcher wants to find out about a particular subject. So in
our environment something should be there that motivates a person to conduct a research. These
days a buzz of electric vehicles is there among manufacturers and consumers. Manufacturers are
in doubt since they are unable to interpret the perception of consumers regarding electric vehicles
so as to find out if there is any scope of the same in market. So our study will be going to help
them in this regard and also the consumers in a way that they can think on this new technology
for development to take place.

 To study the impact of environmental concern, attitude, subjective norm, perceived


behavioral control and green moral obligation on the purchase intention of consumers.

23
RESEARCH METHODOLOGY

Population:

The survey is conducted among the people of Ludhiana city who belong to service class. The
reason why we have chosen Ludhiana to conduct the survey because as per the latest reports of
World Health Organization, Ludhiana is at 13th rank among cities in the world which is most
polluted and thereby emitting the particulate matter 6 times more than its limit as mentioned by
WHO.(“https://timesofindia.indiatimes.com/city/ludhiana/air-quality-in-ludhiana-turns-very-
poor/articleshow/71868727.cms”).So, Ludhiana is an ideal place to know about the intention of
customers to adopt EVs. Also the automobile sector is also focusing there to build charging
infrastructure there along with government since Ludhiana owns the most lavish cars. Most of
other states of India don’t even have a policy to promote EVs.
(https://auto.economictimes.indiatimes.com/news/industry/punjab-industrial-policy-to-focus-on-
electric-vehicles-cm/59739281) .Ludhiana city is also called vehicle capital of Punjab state since
more than 12.2 lakh of cars are there on roads each day which is maximum among all other cities
of Punjab.( https://timesofindia.indiatimes.com/city/chandigarh/Ludhiana-is-vehicle-capital-of-
Punjab-has-over-12-lakh-registrations/articleshow/18141962.cms). Hence, it is sensible enough
to conduct study in “Manchester of India” city.

Sample size:

Based on the review of literature on intention to adopt EVs by customers the average sample size
we have taken is 201. The survey is conducted among the Ludhiana people working in service
sector.

Sampling technique:

We have used stratified sampling as in this sampling technique we divide population in various
subgroups like we have divided in subgroups: service and self-employed. Then we have
randomly selected the respondents from service subgroup for the responses.

24
Research Instrument:

The questionnaire is used by us as a research instrument where we have asked questions related
to 6 variables and those variables are Environmental concern, Attitude, Subjective norm,
Perceived behavioral control, Green moral obligation and Purchase Intention.

Administration of research instrument:

Two methods are used to get the questionnaire filled. Firstly, face to face interaction with people
to get questionnaire filled. Secondly, e-questionnaire as this method increases the efficiency.

Analytical tools:

Since the data that will be collected is perceptual and is collected from unitary source so
Common Method Bias(CMB) may cause threat to validity of survey. (Kamakura 2010;
Schwarzet al. 2008). So tests are employed to note down any possible CMB. The tests that we
have employed is Regression Analysis. This test determines which are the independent variables
and which are dependent variables and also the impact of independent variables on dependent
variable. Predicting consumers’ intention to adopt electric vehicles: using an extended version of
the theory of planned behavior model. Transportation, 43(1), 123-143.

Academic and social significance:


The main objective of the research is to prove a theory thereby enhancing our knowledge in a
particular field. It facilitates learning. We get to know about the kind of issues around us that
makes us to find the solution, for that we try to accumulate knowledge from all the sources and
in this process we get new information that ultimately becomes the reason of social development.
Also while doing survey when we interact with people we get to know about the different
mindsets of people on how they think about a particular technology, how and why they behave in
a specific manner and what influences their decisions. If we talk about doing the survey online
we get to know how many people are online i.e. how comfortable they are using the
technologies. Also while doing a research we can understand the trends prevailing in the market,
we get to know how frequent technology is changing and where we can reach in coming years in

25
terms of development. Research , therefore fills the gap in society along with making new
possibilities in the same field that gives rise to never-ending process of finding new every time
when something is searched on.

VARIABLES

Independent variables

Environmental concern:

Environmental concern is the basic understanding of environment and awareness towards it.
(Schuitema et al. 2013). Environment friendly behavior is not directly affected by
environmental concerns rather it is affected through another variables like attitude, norms and
beliefs. (Ajzen and Fishbein 1980)

Attitude:

There is certain kind of behavior customers have while purchasing vehicles. The purpose of this
variable is to evaluate that specific behavior of customers. (Kim and Han 2010). Attitude means
the positive or negative assessment of consumers to adopt EVs. (Kanget al. 2006; Dickinger and
Kleijnen 2008). More the positive attitude a person possess on green technology like EVs more
positive is the intention to buy EVs. (Beck and Ajzen 1991)

Subjective norm:

Subjective norm means the social pressure that we get from people around us like family,
friends, relatives and peers etc. who plays important role in our lives, to behave in a certain
manner. (Ajzen 1991) Studies that are done before prove that subjective norm positively
influence the customers to make a purchase. (Han et al. 2010; Abou-Zeid and Ben-Akiva 2011;
Axsen and Kurani 2012; Castanier et al. 2013) If any person believes that he needs to show
certain kind of behavior then he has more willingness to perform as a result of social pressure he
undergoes.

26
Perceived behavioral control :

Perceived behavioral control means the ease or difficulty a person feels while conducting a
particular kind of behavior. (Ajzen1991) . PBC is the perception of customers on parameters of
EVs like price, technology, availability, knowledge to use EVs and capability to execute the
adoption behavior. If customer has more capability to control these parameters, more positive is
the behavior to adopt such vehicles. (Axsen and Kurani 2013).

Green Moral Obligation:

It is the extended arm of TPB model. It means the a person feels morally responsible for certain
kind of behavior it performs and therefore make judgments based on that responsible behavior.
(Beck and Ajzen 1991).
It is seen that there is a lot of difference between subjective norm and green moral obligation.
Subjective norms focus is external i.e. pressure from social circle whereas green moral obligation
focus is internal i.e. persons own moral values. If the person is morally high then definitely
personal norms will influence him positively. (Achtnicht 2012).

Dependent Variable

Purchase Intention

Environmental concerns influences the intention of customers to adopt EVs through their
attitude, norms and beliefs. Bamberg (2003) In nutshell, it is not the direct but indirect
determinant of behavioral intention. Intention to adopt EVs is influenced by the parameters
mentioned above.

27
CONCEPTUAL MODEL

Keeping in mind the following model we have conducted our study:

Environmental
Concern
Attitude

Green Moral
Obligation
Subjective Norm Purchase Intention

Perceived
Behavioral Control

28
QUESTIONNAIRE

Variable Item Adapted from


Environmental Concern(A) A1: I am very concerned Richa Chaudhary (2018) Paul
about the environment.
et al. 2016 Kilbourne and
A2: Humans are severely
abusing the environment. Pickett (2008)
A3: I would be willing to
reduce my consumption to
help protect the environment.
A4: Major political change is
necessary to protect the
natural environment.
A5: Major social changes are
necessary to protect the
natural environment.
A6: Anti-pollution laws
should be enforced more
strongly.

Attitude(B) B1: I think it is very Yoon 2011, Schine den Jars


necessary to use electric
and Sterkey(2014)
vehicles.
B2: I think buying an electric
vehicle is a good choice.
B3: I like the idea to own an
environmentally friendly
electric vehicle.
B4: I take pride in owning an
eco-friendly electric vehicle.

Subjective Norm(C) C1: If people around me use Ajzen 1991, Yoon 2011,
electric vehicles, this will
Schine den Jars and
prompt me to buy.
C2: People who have an Sterkey(2014)
influence on me (such as
family and friends) think that
I should buy an electric
vehicle.
C3: News media propaganda
will prompt me to buy an
electric vehicle.

29
PerceivedBehavioralControl(D) D1: I can largely decide Ajzen 1991, Yoon 2011,
whether or not to buy an
Schine den Jars and
electric vehicle.
D2: I will have the ability to Sterkey(2014)
buy an electric vehicle in the
future.
D3: I am confident that if I
want to, I will definitely be
able to choose an electric
vehicle for my next purchase.
D4: I am sure that I would be
able to make a difference by
using an electric vehicle.

Green Moral Obligation(E) E1: I would feel guilty if I Sparks and Shephereds 2002
drive a vehicle damaging the
environment.
E2: To buy a vehicle that
damages the environment
would be morally wrong for
me.
E3: Buying a vehicle that
affects the environment would
go against my principles.

Purchase Intention(F) F1: I look forward to more Moons and De Pelsmerker


brands and models of electric
2012
vehicles to be introduced to
the market.
F2: Next time I buy a vehicle,
I will consider buying an eco-
friendly electric vehicle.
F3: I expect to drive an eco-
friendly electric vehicle in the
near future.
F4: I have the intention to
drive an eco-friendly electric
vehicle in the near future.

Note: For all variables 5-point Likert type scale has been used with 1=strongly agree and
5=strongly disagree.

30
DEMOGRAPHIC PROFILE
1. Name: ___________________

2. Gender: Male Female

3. Marital Status: Unmarried Married Separated

4. Age(in years): 21-30 31-40 41-50 51-60 Above 60

5. Education: 10th 12th Graduate Post-graduate Others______

6. Occupation: Service Self-employed

7. Household Monthly Income(INR): Upto 25,000 25,001-50,000

50,001-75,000 75,001-1Lakh More than 1 Lakh

31
DATA ANALYSIS AND FINDINGS

Multiple Regression Analysis:


In simple regression analysis, one independent variable is used to predict the dependent variable
whereas when more than one independent variables are used to predict one dependent variable
then it is called multiple regression analysis.

Multiple Regression Model:


For simple regression the regression equation is: y1=b0+ b1x1+e1
where, y1 is the value of dependent variable
x1 is the value of independent variable
e1 is the random error in y for observation
bo is the intercept of population y
b1 is the slope of regression line
For multiple regression we use an extended model whose equation is as follows:
y1=b0+ b1x1+b2x2+…….+bnxn+e1

In our study we have 5 independent variables and 1 dependent variable

Independent Variables 1)Environmental Concern(EC)


2)Attitude
3)Subjective Norm(SN)
4)Perceived Behavioral Control(PBC)
5)Green Moral Obligation(GMO)
Dependent Variables 1)Purchase Intention(PI)

Regression is used to analyze the data with Environmental Concern, Attitude, Subjective Norm,
Perceived Behavioral Control and Green Moral Obligation as independent variables and
Purchase Intention as dependent variable.

USING SPSS FOR CALCULATING MEAN

After collecting the data through survey, it is entered in SPSS for further procession:
Step1: In SPSS we have two different views: Variable view and Data view.

32
In Variable view all the demographic variables along with survey questions variables are entered
whereas in the Data view the values of responses of respondents are entered corresponding to the
respective variables.

Variable view:

Data view:

33
Step2: Mean of all the variables except the demographic variables is calculated.
Menu bar: Transform: Compute Variable:

34
Similarly Mean for all the variables in the study is calculated.

SPSS for Multiple regression analysis:

35
Analysis is mentioned in the tables listed below:

Model Summaryd
Adjusted R Std. Error of Durbin-
Model R R Square Square the Estimate Watson
1 .762a .581 .571 .50612
2 .761b .580 .571 .50579
3 .760c .577 .571 .50594 1.617
a. Predictors: (Constant), MEANE4, MEANA7, MEANC4, MEAND5,
MEANB5
b. Predictors: (Constant), MEANE4, MEANA7, MEAND5, MEANB5
c. Predictors: (Constant), MEANE4, MEAND5,
MEANB5
d. Dependent Variable: MEANF5

36
The value of Adjusted R is 0.571 which indicates that 57.1% of the dependent variable is
explained by the independent variables.
The statistics of Durbin-Watson is 1.617 which signifies that there is no auto correlation.

ANOVAd
Sum of
Model Squares df Mean Square F Sig.
1 Regression 69.356 5 13.871 54.151 .000a
Residual 49.951 195 .256
Total 119.307 200
2 Regression 69.166 4 17.291 67.592 .000b
Residual 50.141 196 .256
Total 119.307 200
3 Regression 68.880 3 22.960 89.697 .000c
Residual 50.427 197 .256
Total 119.307 200
a. Predictors: (Constant), MEANE4, MEANA7, MEANC4,
MEAND5, MEANB5
b. Predictors: (Constant), MEANE4, MEANA7, MEAND5,
MEANB5
c. Predictors: (Constant), MEANE4, MEAND5, MEANB5
d. Dependent Variable: MEANF5

The Value of F is 89.697 which is significant at 0.05 level of significance

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .118 .156 .758 .449
MEANA7 .083 .088 .053 .941 .348
MEANB5 .250 .074 .243 3.353 .001
MEANC4 .049 .057 .053 .861 .390

37
MEAND5 .321 .070 .327 4.582 .000
MEANE4 .217 .051 .251 4.285 .000
2 (Constant) .139 .154 .900 .369
MEANA7 .093 .088 .059 1.057 .292
MEANB5 .255 .074 .248 3.438 .001
MEAND5 .340 .067 .346 5.092 .000
MEANE4 .229 .049 .265 4.705 .000
3 (Constant) .233 .126 1.844 .067
MEANB5 .284 .069 .276 4.132 .000
MEAND5 .349 .066 .355 5.279 .000
MEANE4 .224 .048 .259 4.622 .000
a. Dependent Variable: MEANF5

There are three methods of Regression: Enter, Forward Selection and Backward Elimination
method. In our analysis we are following Backward Elimination method.
Backward Elimination methods removes all the variables that are not meeting the criteria of
level of significance that is less than or equal to 0.05 whereas other variables are retained. In our
case, it started with eliminating the maximum value i.e. 0.348 in the first step and 0.292 in the
second step, retaining the remaining three B5,D5,E4 since they have 0.00 level of significance
which is less than maximum expected level of significance value 0.05.

After applying Multiple Regression analysis our values for b0,b1,b2,b3 comes out to be 0.233,
0.284,0.349 and 0.024 respectively and hence the multiple regression equation is :

y= 0.233+0.284(Attitude)+0.349(PBC)+0.224(GMO)

So, the result indicates that Attitude, Perceived Behavioral Control and Green Moral Obligation
have significant impact on Purchase Intention of consumers whereas the other two variables
Environmental Concern and Subjective Norm have no significant impact on Purchase Intention
of consumers.

H0: Null hypothesis

38
H1: Alternate hypothesis

H01: There is no significant impact of environmental concern on the purchase intention of


consumers.

H1: There is significant impact of environmental concern on the purchase intention of


consumers.

H02: There is no significant impact of attitude on the purchase intention of consumers.

H2: There is significant impact of attitude on the purchase intention of consumers.

H03: There is no significant impact of subjective norm on the purchase intention of


consumers.

H3: There is significant impact of subjective norm on the purchase intention of consumers.

H04: There is no significant impact of perceived behavioral control on the purchase


intention of consumers.

H4: There is significant impact of perceived behavioral control on the purchase intention of
consumers.

H05: There is no significant impact of green moral obligation on the purchase intention of
consumers.

H5: There is significant impact of green moral obligation on the purchase intention of
consumers.

Based on the analysis obtained by entering data into SPSS it can be inferred that we are
accepting the alternate hypothesis for attitude, perceived behavioral control and green moral
obligation, and rejecting the null hypothesis for the same; whereas for other two variables those
are environmental concern and subjective norm we are accepting the null hypothesis and
rejecting the alternate ones.

39
Attitude

Green Moral Purchase Intention


Obligation

Perceived
Behavioral Control

40
Analysis of Demographic Variables:
Total number of respondent was 201 out of which:-

Gender Number of Respondents


Male 122
Female 79
Total 201

Gender Of Respondents

Male
Female

This shows that number of males participated in survey are more than females, although the
difference is not much.

41
Total number of respondent was 201 out of which:-

Marital Status Number of Respondents


Married 80
Unmarried 118
Separated 3

Marital Status of Respondents

Married
Unmarried
Seprated

This shows that maximum people who participated in the survey are unmarried whereas least
number of respondents belong to separated category.

42
Total number of respondent was 201 out of which:-

Age Of The Respondents Number of Respondents


21 – 30 127
31 – 40 45
41 - 50 25
51 – 60 2
Above 60 2

Age of respondents

21 - 30
31 - 40
41 - 50
51 - 60
Above 60

This shows that a large chunk of respondents belongs to age group 21-30 years whereas the age
group from 51 and above has covered the least.

43
Total number of respondents was 201 out of which:-

Education Qualification Of The Number of Respondents


Respondents
10th 1
12th 18
Graduate 98
Post Graduate 72
Others 12

Number of Respondents

10th
12th
Graduate
Post Graduate
Others

This shows that most of the respondents are graduates and postgraduates.

44
Total number of respondent was 201 out of which:-

Income Range Of The Respondents Number of Respondents


Upto 25,000 34
25,001 – 50,000 57
50,001 – 75,000 56
75,001 – 1,00,000 27
Upto 1,00,000 27

Number Of Respondent on the basis of


Income level

25,001 - 50,000
50,001 - 75,000
75,001 - 1,00,000
Upto 1,00,000
Upto25,000

This shows that household income of majority of respondents lies in salary bracket greater than
Rs. 25,000 and less than 1 lakh.

45
CONCLUSION AND SUGGESTIONS
The theoretical model used in this study is based on theory of planned behavior(TPB). The
purpose of this study was to establish a theoretical framework of the factors influencing
consumers’ intention of purchasing electric vehicles, to draw conclusions and to provide
reference design recommendations for subsequent new energy automakers with relation to future
consumers’ choices and purchases.

Conclusion

Taking the dimensions of previous theories as the basis for our hypotheses, this study considered
factors like Environmental concern, attitude, subjective norm, perceived behavioral control and
green moral obligation. Consequently, we formed a new facet dimension where we thought like
environmental concern and green moral obligation impact attitude of consumers which thereby
impacts the purchase intention of consumer whereas subjective norm and perceived behavioral
control have direct impact on purchase intention of consumers. Through the regression analysis
conducted in this study, it was found that most of the dimensions have an impact on consumers’
behavioral intention of purchasing electric vehicles. The alternate hypothesis of 3 variable those
are EC, PBC and attitude are accepted which means these variables impact the purchase
intention of consumers directly. The null hypothesis for 2 variables those are environmental
concern and subjective norm is accepted which shows that these variables have no significant
impact on purchase intention of consumers. It indicates that consumers possess positive attitude
towards green technology, it also indicates that consumers have more capability to control
parameters like price, technology, knowledge and availability of electric vehicles, the study also
reveals that consumers feel they have certain moral responsibility towards the environment.
These parameters have positive relationships with consumers’ attitudes to purchasing electric
vehicles. In contrast, the impact of subjective norm is not that much which means consumers are
not influenced from their social circles like family and friends in buying electric vehicles. Also
study reveals that consumers do not possess environmental friendly behavior. Three among five
of the key factors are valid and may impact the consumers’ EV purchasing intention at varying
weights. Self-control ability and external influence have the highest weights, which suggests that
consumers attach the greatest attention on these two factors. The important position that EVs
hold makes it important for customers to gradually accept and embrace the new trend. However,

46
consumers often hold conservative attitudes toward innovative products due to the lack of the
relevant knowledge source, which means that they would not purchase such products until these
uncertainties are removed.

Suggestions

Manufacturers should take attractive measures to meet the needs of consumers so as to promote
the popularization of EVs in the future. At present, the promotion methods of electric vehicle
manufacturers are mainly through network information, which is easily ignored. It is suggested
that EV manufacturers advocate the theme of environmental protection and green life to increase
consumers’ cognition and preference for EV.

Consumers think that there is no obvious difference between the operation mode of EV and that
of traditional vehicles. However, as a new type of green technology product, electric vehicles
have an optimized driving operation compared with traditional vehicles, and are injected with
innovative and technological functions such as voice systems, automatic parking systems, etc.
Therefore, it is suggested that EV manufacturers increase consumers’ opportunities to experience
electric vehicles in person, so as to change consumers’ cognition, expand the scope of influence
of electric vehicles and enhance consumers’ understanding of electric vehicles.

Consumers believe that the number of charging piles for electric vehicles will affect their
purchase intention. Therefore, it is suggested that the government conduct a pilot layout of
charging piles in major cities as a model, and then attract investment from relevant
manufacturers through subsidies, in order to relieve the difficulty of charging electric vehicles.

Consumers believe that the price and life of batteries will affect their purchase intention.
Therefore, it is suggested that electric vehicle manufacturers should adopt better battery service
strategies such as battery leasing, while strengthening the development of battery technology.
Manufacturers can introduce the concept of an automobile recycling economy, including
automobile disassembly and power battery recycling, aimed at reducing the cost of batteries
through the recycling, disassembly and reuse of waste and scrap automobiles and their comp

47
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APPENDIX
Dear Sir/Madam,

We are students of Mittal School of Business, Lovely Professional University. We are


conducting a survey on “Prediction of consumer intention to adopt Electric Vehicles (EVs)”.
You are requested to fill this form. Your responses will be kept confidential and will be used for
academic purposes only.

1. Name: ___________________

2. Gender: Male Female

3. Marital Status: Unmarried Married Separated

4. Age(in years): 21-30 31-40 41-50 51-60 Above 60

5. Education: 10th 12th Graduate Post-graduate Others______

6. Occupation: Service Self-employed

7. Household Monthly Income(INR): Upto 25,000 25,001-50,000

50,001-75,000 75,001-1Lakh More than 1 Lakh

Please tick at the appropriate column depending on the degree of agreement/disagreement


with the following statements:

S.No. Statements Strongly Agree Neutral Disagree Strongly


Agree Disagree
Environmental Concern
1. I am very concerned about the
environment.
2. Humans are severely abusing the
environment.
3. I would be willing to reduce my
consumption to help protect the
environment.
4. Major political change is
necessary to protect the natural
environment.

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5. Major social changes are
necessary to protect the natural
environment.
6. Anti-pollution laws should be
enforced more strongly.
Attitude
7. I think it is very necessary to use
electric vehicles.
8. I think buying an electric vehicle
is a good choice.
9. I like the idea to own an
environmentally friendly electric
vehicle.
10. I will take pride in owning an
eco-friendly electric vehicle.
Subject Norm
11. If people around me use electric
vehicles, this will prompt me to
buy.
12. People who have an influence on
me (such as family and friends)
think that I should buy an
electric vehicle.
13. News media propaganda will
prompt me to buy an electric
vehicle.
Perceived Behavioral Control
(PBC)
14. I can largely decide whether or
not to buy an electric vehicle.
15. I have the ability to buy an
electric vehicle in the future.
16. I am confident that I will
purchase electric vehicle, even if
it is slightly more expensive.
17. I am sure that I would be able to
make a difference by using an
electric vehicle
Green Moral Obligation
18. I would feel guilty if I drive a
vehicle damaging the
environment.
19. To buy a vehicle that damages
the environment would be
morally wrong for me.
20. Buying a vehicle that affects the

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environment would go against
my principles.

Purchase Intention
21. I look forward to more brands
and models of electric vehicles
to be introduced to the market.
22. Next time I buy a vehicle, I will
consider buying an eco-friendly
electric vehicle.
23. I expect to drive an eco-friendly
electric vehicle in the near
future.
24. I have the intention to drive an
eco-friendly electric vehicle in
the near future.

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