Transportation Research Part D 82 (2020) 102306

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Transportation Research Part D

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User satisfaction with battery electric vehicles in South Korea

T
⁎
Yeongmin Kwona, Sanghoon Sonb, Kitae Jangc,
a
Mechanical Technology Research Center, KAIST, Republic of Korea
b
Jeju Research Institute, Regional Planning and Environment Division, Republic of Korea
c
The Cho Chun Shik Graduate School of Green Transportation, KAIST, Republic of Korea

A R T IC LE I N F O ABS TRA CT

Keywords: Battery electric vehicles (BEVs) have been promoted by the government over the last several
Battery electric vehicles years, driven by public concern over pollutant emissions from internal combustion engines.
User satisfaction However, the conditions related to driving BEVs are not yet satisfactory for many BEV users, as
Charging satisfaction evident from sluggish market growth compared with general market forecasts. Thus, a funda-
Range satisfaction
mental aspect of diagnosing the current conditions of BEV operation is to evaluate BEV user
Intention for cost-saving
satisfaction. This study establishes hypothetical links between potential factors and BEV user
satisfaction, and between BEV use satisfaction and intention to repurchase and recommend. The
hypothetical links are specified using a partial least squares structural equation model (PLS-SEM)
and estimated based on a survey of actual BEV owners (N=160) who had driven BEVs for at least
six months. The outcomes of PLS-SEM suggest that seven relations out of nine hypothetical links
were statistically significant. In particular, it is noticeable that the intention for cost-saving
during operation is a key factor for BEV user satisfaction and that user satisfaction with range and
charging has a positive effect on the overall satisfaction of BEV users. Furthermore, those who are
satisfied with BEVs have the intention to repurchase and recommend BEVs to others. Because this
study was conducted based on actual experience of BEV users, the findings could enhance un-
derstanding of the BEV driving environment and, thus, pave the way to provision of better service
for BEV users.

1. Introduction

In the past decade, battery electric vehicles (BEVs) have drawn attention as a potential solution to environmental issues in the
transportation sector, which is heavily dependent on fossil fuels. Consequently, many countries have promoted BEVs and have
gradually substituted BEVs for internal combustion engine vehicles (ICEVs). Hence, the number of registered BEVs has increased from
16.42 thousand in 2010 to 1208.9 thousand in 2016, which is 1.1% of the global automobile market (Global EV Outlook 2017, IEA).
This growth has recently become more prominent, driven by the diminishing cost of BEV technologies, prevalence of charging
facilities, various incentives and the diversity of BEV models in the market (Liu et al., 2017).
As more BEVs have been sold, more drivers have experienced BEV technologies. The attitudes of these experienced drivers can
help us to diagnose the current status of BEV operation and, consequently, to formulate realistic and effective strategies for BEV
promotion. A direct way of understanding user attitudes is to evaluate user satisfaction and its relationship with various influential
factors. To this end, consumer satisfaction surveys are widely used for post-choice evaluation of specific products, because sa-
tisfaction is inevitably tied to the purchase and consumption of a product (Day, 1984; Oliver, 2014).

⁎
Corresponding author.
E-mail addresses: ymkwon@kaist.ac.kr (Y. Kwon), sanghoon@jri.re.kr (S. Son), kitae.jang@kaist.ac.kr (K. Jang).

https://doi.org/10.1016/j.trd.2020.102306

1361-9209/ © 2020 Elsevier Ltd. All rights reserved.

Y. Kwon, et al. Transportation Research Part D 82 (2020) 102306

In the traditional automotive industry, many consumer-satisfaction studies have already been conducted to provide better service
for ICEV users (Jahanshahi et al., 2011; Jajaee and Ahmad, 2012). In these studies, satisfaction has been evaluated for various
dimensions, such as purchase-related attributes, vehicle performance and operational environment. However, the outcomes of ICEV
satisfaction studies are not transferable to BEVs because BEVs differ from ICEVs in operational and technological aspects such as
source of propulsion, fuel type and charging/refuelling (Brennan and Barder, 2016).
Only a few studies have been conducted using data collected from actual BEV users, although extensive research has been done to
understand potential consumer perceptions of BEVs because BEVs have recently become available (Figenbaum and Kolbenstvedt,
2016; Ouyang et al., 2018; Helveston et al., 2015). Recent studies have mainly focused on evaluating actual purchasing behaviour of
consumers or on identifying factors that influence the adoption of BEVs (Mersky et al., 2016; Simsekoglu, 2018; Lee et al., 2019;
Hardman and Tal, 2016). In addition, research on usage behaviour of BEV users—such as charging (Flammini et al., 2019) and travel
patterns (Han et al., 2016)—is gradually being conducted. Through these studies, there has been considerable progress in under-
standing the behaviour of those purchasing and using BEVs.
However, the studies of consumer attitudes toward and levels of satisfaction with BEVs are still insufficient and there are many
behavioural changes that need to be revealed. This is simply because there have not been many BEV users with sufficient experience
with BEVs—at least six months of experience—to evaluate post-purchase behaviour (Igbaria et al., 1996). Most previous studies
focused on strategies to promote the widespread adoption of BEVs rather than on evaluating and improving the operational en-
vironment of BEVs.
To shed light on this, we performed face-to-face surveys of actual BEV owners to evaluate their satisfaction levels and potential
factors influencing satisfaction. Additionally, we considered their intentions to repurchase or to make recommendations. In the
remainder of this paper, Section 2 provides an in-depth literature review and builds hypotheses among the attributes of BEV op-
eration, satisfaction and intention to repurchase and recommend. Section 3 describes the survey data and the partial least squares
structural equation model (PLS-SEM). Section 4 documents the outcomes of the PLS-SEM and Section 5 presents a discussion of the
findings and implications for strategies to promote BEVs.

2. Literature review and hypotheses development

Satisfaction is a direct and widely used measure for diagnosing the conditions of use of a certain product. Because these are not
directly observed, consumers are asked about their levels of satisfaction with a product, with answers given on Likert or interval
scales in survey questionnaires (Hill and Alexander, 2017; Kwon et al., 2020). The factors that affect the level of satisfaction are latent
and psychological. In this section, based on a literature review, we identify potential influential factors and build a hypothetical
structure between influential factors and satisfaction with BEVs. Section 2.1 offers a discussion of six factors that may have effects on
the satisfaction of BEV users. The factors include latent variables regarding purchase inconvenience, operation environment and
future expectations for BEVs. Section 2.2 provides hypothetical effects of satisfaction on the intention of BEV users to repurchase and
recommend BEVs (i.e. user satisfaction is treated as an exogenous variable). Section 2.3 suggests a two-stage structural model with
nine hypothesized relationships by which to evaluate BEV user satisfaction and its effects on user intention to repurchase or re-
commend.

2.1. Factors influencing BEV user satisfaction

A user satisfaction study in the automotive industry should include key attributes that can represent automobile-user experiences
throughout their ownership. Because satisfaction judgments are related to experience with a product, the purchase process and future
service (Homburg and Giering, 2001), we derived exogenous variables from three ownership stages: purchase, operation and future
expectations. In particular, hypothetical relationships at each stage were established with characteristics that can represent opera-
tional and technological aspects of BEVs and are distinctive from those of ICEVs.

2.1.1. Purchase inconvenience

Consumer satisfaction with a product is first realized at the purchase and, therefore, inconvenience during the purchase process
can affect overall consumer satisfaction. The services that are provided to consumers during purchase determine a consumer’s first
impression (Wu et al., 2011). Hence, consumers who experience inconvenience and are not provided with proper services tend to
have a negative perception of the product (Kim and Kim, 2009). In the automobile industry, consumers who are not satisfied with
dealer services during the purchasing process of an ICEV are less satisfied with the product (Goff et al., 1997; Herrmann et al., 2007).
Because the operation of BEVs is substantially different from that of ICEVs, to which most drivers are accustomed, and because
complicated incentives are provided to BEV owners, the BEV purchase process requires special service. Therefore, to ensure overall
satisfaction with a BEV, it may be critical to provide BEV buyers with a convenient purchase process. In view of this, the following
hypothesis was created to relate inconvenience and satisfaction.
H1a. Inconvenience experienced by BEV users during the purchase process will have a negative impact on overall user satisfaction.

2.1.2. Operating environment

Once BEVs are purchased, users engage in driving and charging their BEVs. Various exogenous latent variables related to the
vehicle, such as comfort, quietness and acceleration can be considered during the operation phase. In previous studies of ICEV user

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Y. Kwon, et al. Transportation Research Part D 82 (2020) 102306

satisfaction, the causal relationship between traditional vehicle characteristics and user satisfaction has already been unveiled (Kwon
et al., 2003; Lee and Kim, 2010). Meanwhile, the current study established three factors: range satisfaction, charging satisfaction and
cost-saving intention, which potentially affect user satisfaction in operating BEVs. They also presented key operational characteristics
of BEVs. Short driving range, insufficient charging infrastructure and low operational costs are mentioned when referring to the
operating environment of BEVs (Sierzchula et al., 2014). Indeed, more than 50% of concerns regarding BEVs were related to battery
range and charging infrastructure (Egbue and Long, 2012). On the other hand, low operational cost was the most appealing attribute
of BEVs (He et al., 2017). Thus, we constructed a hypothetical model to examine how each of the three factors affects overall
satisfaction with BEVs.
First, range satisfaction was defined as user satisfaction with the driving range of the BEV. The maximum driving range of a
typical BEV is 200–300 km. By comparison, the driving range of a typical ICEV is about 600 km, which is more than twice that of a
BEV. Hence, the shorter driving range has been one of the biggest concerns of BEV owners (Franke et al., 2012). Although previous
studies have shown that BEV users adapt their driving to this short range (Rauh et al., 2015), the reduction in driving range confines
their desired travel (Haugneland and Kvisle, 2015). Consequently, the limited driving range is likely to have a negative effect on
satisfaction with the range itself and, furthermore, on overall satisfaction with the BEV. In this context, we created a hypothetical
linkage between range satisfaction and overall satisfaction.
H1b. Range satisfaction will have a positive impact on overall satisfaction.
Second, charging satisfaction was defined as affecting BEV user satisfaction, with activities involved in recharging batteries
including access to charging infrastructure and charging convenience, among others. The accessible charging infrastructure is a key
factor in BEV user satisfaction (Salah and Kama, 2016). Because general drivers are accustomed to the well-established gas-station
infrastructure and short refuelling process of ICEVs, they are often frustrated by the inconvenience of the BEV charging process (Dong
et al., 2014), which takes longer than 15 min even with fast chargers and by the fact that chargers are not widespread. Thus, BEV
users have made efforts to install in-home chargers and to adjust their recharging behaviour for more convenient and stable charging
(Bunce et al., 2014). This forms the basis for the following hypothesis.
H1c. Charging satisfaction will have a positive impact on overall satisfaction.
Third, cost-saving intention refers to the sensitivity of BEV users to operation cost and includes their attitudes toward the
reduction in operation cost. A common finding of previous studies is that economic factors, such as operation and maintenance costs,
have a significant relationship with user satisfaction (Kohli et al., 2004). Because the use of a vehicle constantly incurs operating
costs, cost benefits are a key determinant of vehicle usage (Lamberton and Rose, 2012). This is also the case for BEV users. BEVs are
more cost-effective because their energy efficiency is better than that of conventional ICEVs (Yoong et al., 2010) and because
governments provide various operational subsidies including discounts on the electricity used for charging. Therefore, BEV users who
place more importance on operational cost will be more satisfied with their BEVs due to the cost-saving intention and efforts. The
relationship between cost sensitivity and overall satisfaction is hypothesized as follows.
H1d. BEV users who are sensitive to cost savings will have higher overall satisfaction.

2.1.3. Expectations for BEVs

User satisfaction can be affected by expectations of the BEV’s future value. The overall value of a BEV reflects not only the current
technological level but also the future prospects for BEVs, such as expectations for improvements in BEV technology, market growth
and positive social impact (Scott, 1995; Koller et al., 2011). According to Hassenzahl (2003), a positive prospect for the future of
products has a significant impact on consumer satisfaction. Consumers generally perceive that positive future prospects or assess-
ments associated with the product will increase that product’s value. In this context, we formulate two hypotheses regarding BEV user
satisfaction.
First, future-expectation of BEV refers to user expectations for more convenient use of BEVs in the future due to the growth of the
BEV market and advance of BEV technology. There is a pessimistic view of the automobile market that the BEV portion will become
stagnant. In contrast, the optimistic view holds that BEVs will replace a substantial market share of ICEVs and, therefore, that markets
for both can coexist (Al-Alawi and Bradley, 2013). As the BEV market expands and technology improves, BEV users can expect
positive results from the BEV industry (e.g. faster charging, reduced waiting time at charging stations and increased resale value of
used BEVs) (Brown et al., 2010). Therefore, because users tend to develop their expectations during their experience with the product
(Kim, 2012), the future value of a product with a positive expectation of BEV in the future will be higher than the present value
(Moliner et al., 2007). Consequently, this will affect user satisfaction.
H1e. Positive expectation of BEV in the future will have a positive impact on overall satisfaction.
Second, perceived social impact refers to user attitude and the perception that driving BEVs will result in a positive impact on
local community. User satisfaction increases when the use of environmentally friendly products has a positive impact on society
(Chen, 2013). In addition, as more BEVs are used, BEV-related industries will become more viable. This can have a positive impact on
society by such as creating new jobs and reducing air pollution (Günther et al., 2015). Jeju Island in South Korea is one of the most
successful regions in the world in supplying BEVs. BEV owners on Jeju Island report that they are proud and satisfied with their
contributions to the development of the local BEV industry and with the environmental protection aspect of using BEVs instead of
ICEVs (Son, 2016). Thus, a hypothetical link is established between BEV user perception of the positive effect on society of BEVs and

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Y. Kwon, et al. Transportation Research Part D 82 (2020) 102306

their overall satisfaction with using BEVs.

H1f. Expectation of perceived social impact will have a positive impact on overall satisfaction.

2.2. Satisfaction and intention to repurchase and recommend

By exploring the relationship between satisfaction and intention to repurchase and recommend to others, user satisfaction can be
evaluated as a latent and exogenous variable that may have effects on future markets (Mittal and Kamakura, 2001). Previous studies
have shown that users with higher satisfaction intend to repurchase the product and to recommend the product to others (Hosany and
Witham, 2010; Chea and Luo, 2008); this, in turn, has a significant influence on market growth. On the other hand, this linkage is not
statistically significant for some products such as social network service (Kim, 2011), furniture stores (Solvang, 2007) and auto-
mobiles (Vigripat and Chan, 2007). To shed light on this, we established a hypothetical relationship between user satisfaction and
user intention to repurchase and recommend.

2.2.1. Satisfaction and repurchase intention

The intention to repurchase is defined as consumer intention to repurchase current products or services based on past experiences
and future expectations (Compton et al., 1987). Repurchase intention is an important indicator that affects the ability to build a
sustainable market by preventing existing consumers from exiting the market. The majority of previous studies found that user
satisfaction is a key determinant of repurchase intention (Jones et al., 2000; Yi and La, 2004), but it is not a sufficient condition
(Homburg and Rudolph, 2001). In particular, in the ICEV automobile industry, evidence shows that the relationship between user
satisfaction and repurchase intention is not statistically significant (Vigripat and Chan, 2007). Because BEVs have many of the
attributes of conventional automobiles, it is necessary to examine further the post-purchase behaviour of BEV users. Meanwhile, BEVs
are an innovative product and consumers generally have many uncertainties about such products, so that higher user satisfaction
from actual experiences with BEVs could have a significant effect on repurchase intention. To examine this, the following hypothesis
is constructed.
H2. BEV user satisfaction will have a positive impact on repurchase intention.

2.2.2. Satisfaction and intention to recommend to others

The intention to recommend (or positive word-of-mouth) occurs via external communication to others, which builds after con-
sumers have purchased products. Generally, users deliver positive or negative product information personally to their families or
friends (Anderson, 1998). This information will help potential consumers to make important decisions about many products. Previous
studies in various fields have empirically demonstrated the relationship between these two factors (Xu et al., 2015; Keiningham et al.,
2007; Yang, 2017). Mazzarol et al. (2007) showed that recommendations from surrounding people are nine times more effective than
traditional commercials. Users who are satisfied with a product become messengers of powerful oral advertisements (Wilson et al.,
2012) and play an important role in attracting potential consumers to purchase the product (Blodgett et al., 1993). Because, prior to
their use, uncertainty about BEV technology has been a concern, it is plausible that BEV users will communicate their evaluations of,
or opinions about, BEVs to the people around them. Thus, it is expected that BEV users will share positive opinions with others if they
are satisfied with their BEVs. The hypothetical relationship between user satisfaction and recommendation intention is established as
follows.
H3. BEV user satisfaction will have a positive effect on the intention to recommend to others.

2.2.3. Repurchase and recommendation intention

For the relationship between intention to repurchase and recommend, previous studies have confirmed that recommendation
intention can turn into repurchase intention (Olaru et al., 2008; Kitapci et al., 2014). In addition to the direct path from user
satisfaction to repurchase intention, it can indirectly influence repurchase intention through recommendation intention. For users
who share a positive BEV experience with others, the possibility of repurchase intention will increase. In view of this, the relationship
between recommendation and repurchase intention is hypothesized.
H4. BEV user recommendation intention will have a positive impact on repurchase intention.

2.3. Proposed structure model

Based on the literature, nine hypothetical links were constructed and grouped into (i) factors that have effects on BEV user
satisfaction and (ii), those that affect BEV user satisfaction in relation to intention to repurchase and recommend. These links
collectively form a hypothetical structure (shown in Fig. 1) which provides an overview of the research regarding BEV user sa-
tisfaction. The proposed structure model is a two-stage method consisting of a measurement model (Section 4.1) and a structural
model (Section 4.2). The measurement model, indicated by the box with a dotted line in Fig. 1, defines latent variables using one or
more observed variables. The structural model, indicated by the bow with a dot-dash line in Fig. 1, specifies the relationships between
the latent variables. The hypothetical structure was statistically examined using survey data collected from actual BEV users.

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Y. Kwon, et al. Transportation Research Part D 82 (2020) 102306

Fig. 1. Hypothetical structure of BEV user satisfaction and related factors.

3. Research methdology

3.1. Data collection and description

In this study, an offline-based questionnaire was developed and responses were collected via face-to-face surveys from BEV users
in South Korea1 who had owned BEVs for at least six months as of March 2016. A total of 160 responses were received, but some were
excluded due to inconsistencies and incompleteness. As a result, 152 responses were used for the final analysis.
The survey questionnaire included four sections: (1) participant attributes (i.e. sex, age), (2) factors influential on BEV user
satisfaction, (3) overall level of satisfaction and (4) intention to repurchase and recommend. The questions used for each part of the
questionnaire are provided in Section 3.2.
The socio-demographic data of respondents are summarized in Table 1. 64.5% of respondents are males. The age of respondents
was 50.0 years old on average and the majority were in their forties and fifties (63.8%). Compared with the general statistics for
Korean drivers, which are that 71.0% of driver license holders are male and that the average age is 45.0 years old (MOLIT Statistics
System), the demographics of the survey respondents differ slightly from those of driver license holders in Korea. This is partly
because the respondents are representative BEV owners. In addition, the average value of household vehicle ownership, including
BEVs, was 2.2, which is to say that 77.7% of responding households own more than two vehicles. Moreover, 98.7% of respondents
had a BEV charger (charger type: residential 79.6%, workplace 15.8%, mobile charger 3.3%).

3.2. Measures

To test the hypotheses, we developed lists of measurement items to construct the latent variables. Specifically, confirmatory factor
analysis was used to develop a measurement model in which multiple measurement items were hypothesized to assess a particular
latent construct. The items were developed by modifying questions, which had already been experimented on in previous studies, to

1
Since the enactment of the ‘act on the promotion of the development and diffusion of environmentally friendly vehicles’ in 2014, the automobile
market in South Korea has gradually shifted toward BEVs. In 2018, BEV sales reached 33 thousand and the total of registered BEVs were more than
53 thousand (1.95% of total registered passenger vehicles). This is the 7th largest BEV market in the world (Global EV Outlook 2019, IEA).

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Y. Kwon, et al. Transportation Research Part D 82 (2020) 102306

Table 1
Sample description.
Sample attributes (%)

Sample size 152

Gender Male 64.5 (98)

Female 35.5 (54)

Age 20–29 2.6 (4)

30–39 12.5 (19)
40–49 37.5 (57)
50–59 26.3 (40)
60 and over 21.1 (32)

Household vehicle ownership 1 22.4 (34)

2 52.0 (79)
3 and more 25.7 (39)

Charger type Home 79.6 (121)

Workplace 15.8 (24)
Other (ex. Mobile charger) 3.3 (5)
No 1.3 (2)

take into account the characteristics of BEVs. Respondents answered a list of questions on a five-point Likert scale (from 1, strongly
disagree, to 5, strongly agree) for each latent variable. Eighteen questions were asked to measure six influential factors (three
questions for each factor) and four questions were asked to measure the levels of satisfaction and related external effects on BEV
owners. Table 2 shows the variables and measurement items.
To determine purchase inconvenience, the convenience items that measured quality of service were reversed to measure in-
convenience and to reflect three key dimensions of purchase inconvenience related to BEVs. These included accessibility, benefits and
information (Seiders et al., 2007). We measured inconvenience during the purchase process because, unlike for ICEVs, for sales of
BEVs a variety of incentives are offered that complicate administrative procedures, making their purchase more difficult. BEV owner
satisfaction with charging was measured using items developed by Haugneland and Kvisle (2015). These items include overall
satisfaction with both charging method and infrastructure. To evaluate range satisfaction, three items related to BEV range were
asked (Franke et al., 2016). These items were commonly used in earlier works, especially in research about range anxiety (Franke and

Table 2
Latent, observed variables and supporting references.
Latent variables Measurement items Reference

Purchase inconvenience a1 • The procedures for purchasing a BEV were complicated and cumbersome. Seiders et al. (2007)
a2 • There was not enough information about BEVs and chargers at the purchase stage.
a3 • BEV companies did not provide detailed guidance and test drives
Range satisfaction b1 • ITheamrange
satisfied with the range of the BEV. Franke et al. (2016)
b2 • The range ofof the BEV is sufficient for accomplishing my trips.
b3 • the BEV meets my expectations.

Charging satisfaction c1 • There are enough public charging stations installed. Haugneland and Kvisle
c2 • IBEVam satisfied with the charging of the BEV. (2015)
c3 • charging is not inconvenient or troublesome.
Cost-saving intention d1 • II need to reduce my expenditure on BEV operation and maintenance. Möhlmann (2015)
d2 • I try to reduce power consumption by implementing regenerative braking.
d3 • try to find an inexpensive charging station and try to use it.
Expectation of BEV in the future e1 • The change from an internal combustion engine vehicle to a BEV is a global trend. Thiel et al. (2012)
e2 • Future electric safety will be fully considered and safely implemented.
e3 • Future batteries will be stable and replacement costs will be lower.
Perceived social impact f1 • With the use of BEVs, I demonstrate environmentally friendly consumption
behaviour and protect the regional environment.
Inoue and Havard (2014)

f2 • Itindustry.
is necessary to increase local employment opportunities by vitalizing the BEV

f3 • The more BEVs supplied to the region, the more the possibility of local economic
development will increase.

BEV satisfaction g1 • I am satisfied with the purchase and use of my BEV. Jabeen et al. (2012)

Recommend intention h1 • II tell

would recommend BEVs to my family or friends. Bühler et al. (2014)
h2 • people around me about the merits of BEVs and recommend purchasing them.
Repurchase intention i1 • I would buy a BEV as my next vehicle. Jabeen et al. (2012)

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Y. Kwon, et al. Transportation Research Part D 82 (2020) 102306

Krems, 2013). The measurement items for cost savings by Möhlmann (2015) were customized to fit the BEV sector; three items were
selected to reflect BEV owner attitudes toward operational cost-saving intention. The items for positive expectation of BEV in the
future and perceived social impact were adapted from Thiel (2012) and Inoue and Havard (2014), respectively, to fit the BEV sector.
Respondents were asked to rate their expectations regarding the future of the BEV industry because such expectations are related to
environmental, marketability, technological and economic effects.
Finally, BEV owner satisfaction and repurchase intention were measured by two single items: ‘I am satisfied with the purchase and
use of my BEV’ and ‘I would buy a BEV as my next vehicle’. These items were designed by Jabeen (2012) and are concerned with the
acceptability of BEVs. Recommendation intention was also measured by two items related to the purchase and advantages of BEVs
(Bühler et al., 2014).

4. Analysis methods and results

In this study, hypotheses were verified using a variance-based partial-least-squares structural equation model (PLS-SEM). Two
types of structural equation model (SEM) are commonly used as statistical techniques to verify correlations and hypothetical causal
relationships between variables. The first is a covariance-based structural equation model (CB-SEM); the other one is the PLS-SEM
(Hair et al., 2011). Unlike the CB-SEM model, which conducts estimation using maximum likelihood (ML), PLS-SEM is based on
ordinary least squares (OLS) regression and has the following three advantages (Chin, 1998; Hair et al., 2013; Bergkvist and Rossiter,
2007). Firstly, it can be used for weak theory verification as it is mainly used in exploratory research. Secondly, it can be used to
analyse small samples, non-normal data and formative measurement variables regarding data characteristics. Thirdly, it can be used
in cases in which a single observed variable is used to estimate a latent variable.
These advantages of PLS-SEM make it suitable for analysing the survey data collected in this study because (i) The proposed
model focused mainly on exploring BEV user satisfaction; (ii) The sample size (N = 160) is relatively small (generally, CB-SEM
requires a sample size greater than 200) and (iii) Some latent variables such as BEV user satisfaction can be measured as single
observed variables because they can easily be imagined by the survey participants.
Finally, we tested our proposed structure model (Fig. 1) using a two-step approach. Firstly, the measurement model was ex-
amined, followed by the structural model. To estimate the proposed model, we used SmartPLS (Ver. 3.2.3.).

4.1. Assessment of the measurement model

Prior to estimating the structural model, we first examined the reliability and validity of the latent factors, which were in-
strumented using lists of measurement items. Four different indices—factor loadings, Cronbach’s Alpha (CRA), construct reliability
(CR) and average variance extracted (AVE)—were used to this end.
To measure the degree of consistency among the observed variables used to measure the latent variables, the convergent validity
was evaluated. Factor loadings between the latent and observed variables were used to verify the convergent validity. If the factor
loading from a latent variable to measurement items exceeds 0.7, convergent validity is considered to exist (Lehmann, 1988). In
Table 3, all the factor loadings exceed 0.7, indicating that convergent validities exist for all the latent variables.
Reliability analysis was conducted to confirm the consistency of the measurement items (i.e. to confirm that responses from users
were consistent across measurement items). In this study, reliability was tested based on CRA and CR values, which examine internal
consistency (Nunnally, 1978). Generally, in the field of social science research, a CRA value greater than 0.6 is considered acceptable
(Fornell and Larcker, 1981). On the other hand, the CR value should be greater than 0.6 to be acceptable and ideally, 0.7 or higher
(Fornell and Larcker, 1981). The CRA and CR values were calculated using Eqs. (1) and (2), respectively. All of the values were
greater than the threshold, indicating good convergent validity.
k
k ∑ σY2
CRA = (1 − i = 12 i )
k−1 σx (1)

k 2
(∑i = 1 λi )
CR = k 2 k
(∑i = 1 λi ) + (∑i = 1 Var (ei ) ) (2)
where k is the number of items, σx2 σY2i
is the variance of the observed total test scores, the variance of item i , λi is the factor loading of
item i and Var (ei ) is the variance of the error of item i .
Discriminant validity is the degree to which measures of different traits are unrelated and can be assessed using the AVE. AVE
indicates the average percentage of variation explained by the items in a construct and is used to measure a latent variable. AVE was
also above the minimum threshold level of 0.5 for every construct (Chin, 1998). AVE can be calculated using Eq. (3).
k 2
(∑i = 1 λi )
AVE = k k
(∑i = 1 λi 2) + ( ∑i = 1 Var (ei )) (3)

In addition, the square root of each construct’s AVE should be greater than the value of its correlation with any other latent
construct in the model (Wixom and Todd, 2005). Table 4 shows a correlation matrix, with correlations between pairs of constructs
and the square roots of AVE on the diagonal (Fornell-Larcker Criterion). For example, Range satisfaction’s AVE is 0.699 (from

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Table 3
Factor loadings, AVE and composite reliability of the measurement model.
Latent variables Measurement items Factor loadings Average/SD CRA CR AVE

Purchase inconvenience a1 0.855 2.78(1.21) 0.850 0.909 0.770

a2 0.878 2.79(1.11)
a3 0.898 3.05(1.14)

Range satisfaction b1 0.836 2.15(1.27) 0.786 0.874 0.699

b2 0.900 1.80(1.10)
b3 0.766 2.99(0.89)

Charging satisfaction c1 0.809 2.23(1.25) 0.771 0.865 0.682

c2 0.781 1.86(1.05)
c3 0.884 2.57(1.27)

Cost-saving intention d1 0.828 2.73(1.32) 0.831 0.899 0.747

d2 0.890 3.44(1.30)
d3 0.874 3.25(1.25)

Expectation of BEV in the future e1 0.797 3.61(1.21) 0.762 0.862 0.676

e2 0.791 3.07(1.09)
e3 0.876 2.72(1.12)

Perceived social impact f1 0.841 4.47(0.82) 0.783 0.852 0.658

f2 0.719 4.26(0.91)
f3 0.866 3.50(1.09)

BEV satisfaction g1 1.000 3.35(1.19) 1.000 1.000 1.000

Recommend intention h1 0.925 3.13(1.32) 0.724 0.875 0.779

h2 0.837 3.12(1.23)

Repurchase intention i1 1.000 3.53(0.50) 1.000 1.000 1.000

Note: SD = standard deviation; AVE = average variance extracted; CR = composite reliability CRA = Cronbach’s Alpha.

Table 4
Correlation matrix (the Fornell-Larcker Criterion).
– 1 2 3 4 5 6 7 8 9

1. Cost-saving intention 0.865

2. Expectation of BEV in the future 0.145 0.822
3. Purchase inconvenience −0.093 −0.180 0.877
4. Charging satisfaction 0.065 0.046 −0.455 0.826
5. Range satisfaction 0.115 0.123 −0.283 0.525 0.836
6. Recommend intention 0.405 0.338 −0.297 0.370 0.445 0.882
7. Perceived social impact 0.247 0.240 −0.020 −0.067 0.074 0.174 0.811
8. Repurchase intention 0.340 0.208 −0.145 0.278 0.269 0.633 0.169 1.000
9. BEV satisfaction 0.468 0.248 −0.275 0.377 0.426 0.783 0.120 0.563 1.000

Note: square root of each construct's AVE is highlighted in bold.

Table 3) and its square root is 0.836. This square root of the Range satisfaction’s AVE (0.863) is greater than any correlation value in
column ‘5’ (0.074–0.445) and in the row of the Range satisfaction (−0.283–0.525).
All of the constructs were tested for their CRA, CR and AVE values and for convergent and discriminant validity. The outcomes
satisfied the threshold for each case (please see Tables 3 and 4).

4.2. Assessment of the structural model

The hypothetical links that compose the structure were statistically evaluated based on survey data. The coefficients for each link
and R-square value were estimated. A bootstrapping algorithm was used to evaluate the statistical inferences for coefficient estimates,
which resulted in p values of the coefficient estimates (Henseler et al., 2009). The resampling number was set to 5000 in the
bootstrapping procedure. R-square values were also calculated to examine the fitness of the structures, which are composed of
hypothetical links between latent variables. According to Cohen (1988), R-square values of 0.02, 0.13 and 0.26 are the thresholds
that differentiate small, medium and large explanatory powers of the model, respectively. The R-square value of our model for BEV
satisfaction was 0.391, meaning that the model has large explanatory power. The outcomes of PLS-SEM suggest that two causal
relationships—the effects of purchase inconvenience and expectation of a social impact on satisfaction—were not statistically sig-
nificant, while all other relationships were statistically significant. A summary of the results is provided in Table 5 below.
Cost-saving intention was confirmed as the most important factor driving BEV satisfaction. BEV owners with higher cost-saving
intention and who made an effort to reduce their operating costs were highly satisfied with their BEVs (β = 0.406, p < 0.01).

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Table 5
Assessment of the nine hypotheses.
Hypotheses Path coefficient P-value Decision

H1a: Purchase inconvenience −0.057 0.462 Rejected

H1b: Range satisfaction 0.250 0.005*** Supported
H1c: Charging satisfaction 0.186 0.029** Supported
H1d: Cost-saving intention 0.406 0.000*** Supported
H1e: Expectation of BEV in the future 0.145 0.020** Supported
H1f: Perceived social impact −0.023 0.718 Rejected
H2: BEV satisfaction → Repurchase intention 0.563 0.000*** Supported
H3: BEV satisfaction → Recommend intention 0.624 0.000*** Supported
H4: Repurchase intention → Recommend intention 0.282 0.000*** Supported

** Significant at 0.05 level.

*** Significant at 0.01 level.

Compared with conventional ICEVs, BEV owners can save operating costs because BEVs themselves are energy efficient and BEV
users can save further costs by charging their BEVs when electricity rates are less expensive. The satisfaction with BEVs can be further
elevated by exploiting the cost-saving mechanisms of BEVs. Satisfaction with the driving range (β = 0.250, p < 0.01) and charging
satisfaction (β = 0.186, p < 0.05) also affect the overall satisfaction with BEVs. Compared to the driving range of an ICEV, that of a
BEV is shorter and the public charging infrastructure is still insufficient. On the other hand, BEV owners can charge their vehicles at
home using a personal charger and can also use the BEVs as a second car to make short distance trips. This type of behavioural change
can also affect overall satisfaction with BEVs. It can be verified that satisfaction is higher when BEV owners positively perceive the
future of BEVs (β = 0.145, p < 0.05). These findings provide support to H1b, H1c, H1d and H1e. However, perceived social impact
(β = −0.023, p = 0.718) and inconvenience during the purchase of a BEV (β = −0.057, p = 0.462) are not statistically significant.
Thus, hypotheses H1a and H1f were rejected.
Furthermore, it is shown that BEV satisfaction and owner intention to repurchase (β = 0.563, p < 0.01) and recommend
(β = 0.624, p < 0.01) are statistically significant, having positive effects. An owner who is satisfied with the purchase and operation
of a BEV is more likely to consider the repurchase of a BEV as a next vehicle and to recommend the purchase of BEVs to others. Thus,
H2, H3 and H4 are supported.

5. Discussion and limitations

5.1. Summary and conclusions

BEVs have been actively promoted in the recent automotive market. However, actual BEV user studies, which can directly
diagnose the current status (i.e., level of satisfaction) of BEV use and help formulate a strategy for planning and operating BEVs, are
not sufficient. Therefore, this study evaluated potential factors that affect BEV user satisfaction and the consequential effects of
satisfaction on the intention to repurchase and recommend. To this end, we constructed a hypothetical structure composed of six
hypothetical relationships among six factors: purchase inconvenience, range satisfaction, charging satisfaction, cost-saving intention,
expectation of BEV in the future and perceived social impact and BEV user satisfaction. It also included three hypothetical pair-wise
effects between BEV user satisfaction, intention to repurchase and intention to recommend to others. To test these hypothetical
relationships, we obtained survey data from actual BEV users and used the PLS-SEM method to estimate coefficients for the re-
lationships. As a result, we found that seven out of the nine hypothetical relationships were statistically significant.
It is intuitive that the vehicle users naturally seek to save operating costs by purchasing more fuel-efficient vehicles (Turrentine
and Kurani, 2007) or refuelling at cheaper gas stations (Kitamura and Sperling, 1987). The results showed that this cost-saving
intention behaviour is even more pronounced for BEV users; sensitivity and intention to reduce operation costs of BEVs were the most
influential factors on BEV user satisfaction. BEV users, who were well aware of BEV’s cheaper operating costs and made efforts to
reduce their vehicle operating costs, were more satisfied while driving BEVs. This is consistent with earlier findings that BEV users
were more willing to pay for operational cost savings (Kwon et al., 2018). This implies that an EV promotion strategy should also
slant toward operation of BEVs, which could trigger a positive chain reaction—high satisfaction of BEV users that was spawned by
promoting BEV operation would result in elevated intention to repurchase and recommend BEVs to potential adopters in the pre-
purchase stage—toward sustainable growth of the BEV market. Hence, providing BEV users with information on cheaper charging
stations and times, thereby guiding them to reduce operating costs, could also be an effective strategy. This is because the electricity
rate in South Korea accounts for a large portion of operating cost and this rate varies with time of day and type of charger (i.e. slow or
fast charger). As a result, charging cost can differ depending on the charging strategy adopted. However, this may not hold true if the
electricity rate for charging BEVs is flat or substantially low (e.g. in Norway), such that BEV users are indifferent to operating costs
(Orlov and Kallbekken, 2019).
Two factors (driving range and charging) that are closely related with convenience of BEV use were found to affect overall BEV
user satisfaction. These findings are consistent with previous studies conducted in other countries such as Sweden (Vassileva and
Campillo, 2017), Germany (Trommer et al., 2015) and the UK (Neaimeh et al., 2017). Although most BEV users were not satisfied

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with the current status of driving range and charging, satisfaction regarding these factors will gradually improve with technological
advances. For example, fast chargers and high-capacity batteries are becoming available at affordable cost and the charging infra-
structure continues to expand. User expectations for the future of BEVs are also found to have a significant effect on BEV user
satisfaction, signifying that BEV users care not only about the present use of BEVs but also the future value of BEVs. This consumer
behaviour is often observed in other fields of innovative technology (or services), such as mobile devices (Lee and Mills, 2007) and
intellectual capital (Whiting and Miller, 2008). This is partly because users naturally expect more convenient use of BEVs in the future
if BEV technology and the market advance in ways favourable for BEVs. Therefore, the potential of BEV technology and the market
can be used in developing a BEV promotion strategy.
Other notable findings of this study are the linkages between BEV owner satisfaction and intention to repurchase and recommend.
Recently, some evidence has shown that consumers tend to trust commercials less than before. Instead, they rely more on information
from personal sources such as friends, family and neighbours. According to Hogan et al. (2004), positive word-of-mouth can be three
times more effective than commercials. When consumers consider purchasing new items, especially expensive and innovative pro-
ducts with high uncertainty (like BEVs), they naturally seek advice from actual users and respond sensitively to the evaluation of
actual users. Therefore, it is important to establish a social environment in which BEV users can easily communicate their experiences
and the advantages of BEVs with potential consumers through personal sources. Positive evaluations from BEV users will play a key
role in expediting the expansion of the BEV market by increasing the likelihood of consumers choosing BEVs as their next car model.
We can also apply these results to potential consumers, increasing their intention of purchasing a BEV by providing opportunities to
experience a BEV, such as through rentals or test-drive events.

5.2. Limitations and future research

This is one of the first studies evaluating the actual operating environment and satisfaction of BEV users. However, due mostly to
the low sampling rate that resulted from the low market penetration of BEVs, this study is limited in the following ways. First, the
outcomes may include some locality issues because the samples we used included BEV users only in Korea. Although the implications
of this study can be applied to other countries, results could differ depending on factors in individual countries, such as BEV policies,
supply conditions, charging infrastructure and others. Therefore, it is necessary to collect samples from other countries and to
compare the outcomes. Second, differences in BEV user satisfaction based on different BEV models were not considered. The sample
size used in this study was insufficient to perform intergroup analysis. We expect to find interesting research results by conducting
analyses based on the attributes of various BEV models.
Furthermore, this study is designed to identify latent variables that affect the satisfaction of BEV users. However, the results of the
study do not represent quantitative effects. For example, it is found that charging satisfaction had a statistically positive effect on the
overall satisfaction of BEV users. However, it does not provide a solution to questions such as how much charging infrastructure
should be built to satisfy BEV users. These remain as future research topics.

CRediT authorship contribution statement

Yeongmin Kwon: Conceptualization, Formal analysis, Investigation, Methodology, Software, Validation, Visualization, Writing -
original draft. Sanghoon Son: Data curation, Resources. Kitae Jang: Conceptualization, Funding acquisition, Project administration,
Supervision, Writing - review & editing.

Acknowledgment

This work was supported by the National Research Foundation of Korea (NRF) grant funded by the Korea government (NRF-
2019R1A2C2008161).

Declaration of Competing Interest

The authors declare that there is no conflict of interest regarding the publication of this paper

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