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Vision
24(1) 23–34, 2020
A Study on the Adoption of Electric © 2019 MDI
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DOI: 10.1177/0972262919875548

of Attitude
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Anil Khurana1
V. V. Ravi Kumar2
Manish Sidhpuria3

Abstract
Pollution of the environment is currently a global concern. Toxic emission from internal combustion engines is one of the primary air
pollutants. In order to mitigate the effects of fossil fuel emission and address environmental concerns (ECs), electric vehicles (EVs)
are being promoted aggressively all over the world. Various governments are encouraging people to switch to EVs by incentivizing
the transition. Previous studies indicate that the high cost of the electric car, non-availability of charging infrastructure, time and range
anxiety act as impediments to consumer adoption. The Government of India has given a call for ‘only Electric Vehicles’ on Road by
2030. This article is contemporary and examines the different factors that affect a consumer’s adoption of an EV. The respondents of
the study are existing car owners in India. The data were analysed using Structured Equation Modelling (SEM). Attitude (ATT) emerged
as a strong mediator, influencing the adoption of electric cars.

Key Words
Electric Vehicle, Attitude, Economic Benefit, Environmental Concern, Social Influence, Self-image, Behavioural Intention

Introduction PHEV: Plug-in hybrid electric vehicles (PHEVs) are


like HEV except that they have a small engine
The over-a-century-old automobile industry is gearing up and larger batteries. The batteries recharging is
for transformation. The fossil fuel price spike and the either by the braking system or by plugging
impact of its emission on the environment have called for a into an external electric charging point.
change in individual transportation habits. The sector, BEV:  They have no engine and they use electric
propelled by internal combustion engines, is gravitating motors for propulsion with batteries as the
gradually towards electric vehicles (EVs). energy storage device. They depend on external
Electric motors propel the EVs and the rechargeable power points for charging the battery. These
battery or other portable energy storage device maintains vehicles are also known as plug-in vehicles,
power supply. These vehicles are energy efficient, EVs or the battery electric vehicles (BEVs).
generating less greenhouse gas (GHG) emissions and
reduced noise. The different categories of EVs are as The transportation sector contributes about a quarter of
follows: GHG emissions. Automobiles are the primary source of
GHG emission world over with China emitting 25.9 per cent,
HEV: Hybrid electric vehicles (HEVs) are powered the USA 13.87 per cent followed by India 7.45 per cent.
by fuel and electricity and have an engine and The Eighth Clean Energy Ministerial in 2016, in its
an electric motor. Electricity generated by the campaign, adopted the slogan ‘The EV30@30’. The member
braking system charges the battery. countries reaffirmed their commitment to EV adoption. The

1 Faculty
of Management, Symbiosis International (Deemed University), Lavale, Pune, India.
2 SymbiosisInstitute of Business Management, Symbiosis International (Deemed University), Lavale, Pune, India.
3 Department of Business & Industrial Management, Veer Narmad South Gujarat University, Bhartana, Surat, India.

Corresponding author:
Anil Khurana, A 4/702, Ganga Satellite, Wanowadi, Pune, Maharashtra 411040, India.
E-mail: anil.khurana@me.com
24 Vision 24(1)

Figure 1.  Projection of Electric Vehicles (Colour Online)


Source: Adopted from Bloomberg Opinion.

aim was to attain a total market share of 30 per cent for EVs, The shift towards EVs in India is imperative in the near
with 10 per cent market share for the respective categories, future, though not imminent. Several cities are victims
namely passenger cars, light commercial vehicles, buses and of unplanned urbanization and high pollution. They suffer
trucks by 2030 (IEA, 2016). unqualified degradation, with vehicular emission as the
India’s commitment to containing pollution and reducing primary source.
carbon footprint is also increasing. The country prepares Figure 1 indicates the projection for EVs for a few of the
to shift towards EVs by 2030. The government desires the leading nations.
car manufacturers to migrate to EV production, which will The Government of India has announced that all cars
curtail the oil bill by US$60 billion, cut emissions by 37 per need to be electric by 2030. Society of Indian Automobile
cent and reduce the dependence on the imports of fuel, thus Manufacturer (SIAM, 2017) followed this with their white
acting as a shield from vulnerability against crude prices and paper stating that EVs would make up 40 per cent of new car
currency fluctuations. sales by 2030 and 100 per cent by 2047. This milestone date
The government is examining the battery swapping coincides with 100 years of the country’s independence.
option model to overcome the challenges in EV adoption.
The swapping model was introduced in Israel and China
met with partial success. The challenges are the battery size
Literature Review
and power. These may vary according to manufacturer/ There are many studies done globally to understand
models (e.g., Maruti Alto and Honda City). This compli- consumer adoption of EVs. Factors studied are the cost
cated situation under this model demands a similar vehicle of the EV, driving distance per charge, time to recharge
design to accommodate the same battery, which is difficult the battery, availability of charging points and battery
to achieve. Another alternative could be battery leasing that cost. Range anxiety and incentives offered—both financial
could reduce the ownership cost. However, the easy avail- and non-financial—are the other attributes researched in
ability of charging points across different places in a city previous studies. Table 1 shows a few of the studies on the
remains a significant challenge yet unresolved. most researched attributes.

Table 1. Most Researched Variables and Attributes

Authors Study Variable Attributes


Bahamonde-Birke and Hanappi (2016), Helveston et al. (2015), Mabit, Cherchi, Jensen, and Driving range Technology
Jordal-Jørgensen (2015), Peters and Dütschke (2014), Rasouli and Timmermans (2016), Valeri
and Danielis (2015), Barth, Jugert, and Fritsche (2016), Beck, Rose, and Greaves (2016),
Adepetu and Keshav, (2015), Plötz, Funke, Jochem and Wietschel (2017)
Axsen, Bailey, and Castro (2015), Rasouli and Timmermans (2016), Moon, Park, Jeong, and Charging time
Lee (2018)
Valeri and Danielis (2015), Bockarjova and Steg (2014), Jensen, Cherchi, and Mabit (2013) Charging station Infrastructure
Chorus, Koetse, and Hoen (2013), Glerum, Stankovikj, Thémans, and Bierlaire (2014), Wang, Financial incentives Policy
Li, and Zhao (2017)
Source: Author’s own; result of data collection tabulation.
Khurana et al. 25

Technology refers to the technical characteristics of a & Keshav, 2015; Barth et al., 2016; Lieven, Mühlmeier,
vehicle. Previous studies indicate range anxiety, that is, the Henkel, & Waller, 2011). Researchers conclude that economic
short distance travelled per full charge of the battery, as incentives influence EV adoption. This study postulates the
the major hurdle to the adoption of EVs. Infrastructure following hypothesis:
attributes focus on the available charging infrastructure.
Research reports the positive influence of this factor. H(i): Perceived economic benefit is a significant pre-
Adequate charging facilities will save time and search cost, dictor of the consumers’ BI of adopting an EV.
hence, address the consumers’ range anxiety.
The higher price of EVs could restrain EV adoption. Environmental Concern
Some policies related to financial attributes like tax reduc-
tion or rebate are strongly supported by evidence while non- Environmental concern is defined as an individual’s aware-
financial incentives like free parking and toll reduction do ness of environmental problems and their willingness to
not have enough supporting evidence. address these problems. Studies report that environmental
Other barriers for adoption of EVs found were the benefits do influence consumer adoption intentions. Kahn
non-availability of EVs and lack of EV models. Literature (2007) found that people who show concern towards the
shows that the lack of knowledge and unqualified car environment are more inclined to adopt EVs, supporting
dealership may discourage EV adoption. these findings were Pierre, Jemelin, and Louvet (2011).
North American and European countries account for People who are inclined to environmental protection
most of the research. The effect of individual-specific and energy conservation exhibit higher intention for
variables on EV adoption requires further research. Studies adoption. Pro-environmental consumers are the probable
have shown that psychological factors have a proven and EV adopters (Schuitema, Anable, Skippon, & Kinnear,
stable effect. Studies in India are few, and the focus of this 2013). Environmental benefits are essential motivators for
article is on an electric car, which is nothing but a subset the adoption of EVs as reported (Peters & Dütschke, 2014)
in a consumer survey from Germany. The adoption of EVs
of the EV.
will reduce environmental risk (Bockarjova & Steg, 2014)
EVs have shallow adoption in India, and most people
and positively influence the EV adoption as found by
lack the experience of handling EVs. Although the initial
Jensen et al. (2013) and Sang and Bekhet (2015). Besides,
price to buy an EV may be higher; the cost of running and
environmental protection, acted like a big motivator, (Beck
maintenance is relatively low. This is in comparison to
et al., 2016), that is, a key factor for consumer attraction.
the internal combustion engine propelled vehicles that
EVs should not only stress energy conservation; instead,
have a higher running cost. Perceived economic benefit
they should also focus on environmental protection, which
(PEB) impact on adoption is one of the variables. As there
may enhance the adoption rate. This study postulates the
is a growing awareness of EC, this variable is also postu-
following hypothesis:
lated to be influencing the adoption of EVs. Self-image
(IM) and social influence (SoC.In) can influence high H(ii): EC is a significant predictor of the consumers’
involvement products’ adoption. Attitude (ATT) is the BI of adopting an EV.
mediating variable with behavioural intention (BI) as the
dependent variable.
Social Influence
Perception of Economic Benefits As a concept, it covers peer pressure, subjective norms,
neighbours and cultural influence. Individuals seek family
The high cost of EVs is a deterrent in adoption as compared members’ and friends’ approval of their actions. Families’,
with a similar conventional vehicle. Studies suggest that relatives’ or friend’s opinions influence the consumer’s deci-
the incentives offered support the acceptance of an EV. sions, and consumers seek social approval using products
Lower running and maintenance costs encourage BEV acceptable to people whose opinions matter (Nysveen, 2005;
adoption asserted. Aasness and Odeck (2015). Beresteanu Venkatesh & Davis, 2000). Thus, people perform a specific
and Li (2011) analysed the benefits of a hybrid vehicle action due to SoC.In (Chen & Tung, 2014). Effect of people’s
in the USA, concluding that income tax incentives led to behaviour influences an individual’s decisions in their social
an increase in market share of HEV. Wang and González network; this influence acts as a vital determinant in EV
(2013) compared the energy costs for small electric buses promotion as pointed by Axsen, Orlebar, and Skippon
in their study. The energy cost of other fuel vehicles was (2013). The impact of the social network is essential to an
eight times higher than that of EVs. Low energy con- individual’s adoption as confirmed by Rasouli and
sumption and power tariff result in lower running cost. The Timmermans (2016) study. The paper proposes the following
total cost of ownership hence is lower and compensates for hypothesis:
the premium cost of an EV. Consumers with long driving
ranges stand to gain more than small daily run consumers. H(iii) SoC.In is a significant predictor of the consum-
Lower operating costs support the adoption of EVs (Adepetu ers’ BI of adopting an EV.
26 Vision 24(1)

Self-image The above review leads us to postulate the following


hypotheses:
IM captures the consumer feeling towards the product,
which may be his current or the anticipated perception
H(v): ATT is a significant predictor of the consum-
of himself (Sirgy, 1982). Consumer’s IM and product
ers’ BI of adopting an EV.
image consistency exhibit a positive ATT towards the
product and this image congruence may lead to consumer’s H(vi): ATT mediates the relationship between per-
adoption. IM is an independent predictor of consumer ceived economic benefit and BI of adopting an
behaviour. Other factors may enhance or shape consumer’s EV.
view of themselves (Bearden, Netemeyer, & Teel, 1989). H(vii): ATT mediates the relationship between EC
Consumer’s car evaluation considers performance attrib- and BI of adopting an EV.
utes like efficiency and comfort. Additionally, it evaluates H(viii): ATT mediates the relationship between SoC.
factors, such as the symbolism of IM and social status. In and BI of adopting an EV.
Individuals compare themselves with others to increase H(ix): ARTT mediates the relationship between SoC.
their self-recognition and IM (Breakwell, 1993). People In and BI of adopting an EV.
attribute high symbolic value to their vehicle as indicated
by Helveston et al. (2015) in their investigations. Such
individuals are inclined to buy an EV, meaning that EV
Behavioural Intention
symbolizes high social status. The hypothesis postulated Behavioural intention (BI) is the measure, or intensity,
by this study is as follows: of an individual’s intention to perform a specific behaviour
(Ajzen & Fishbein, 1977). Psychological factors shape indi-
H(iv): Self-image (IM) is a significant predictor of the vidual intentions towards the adoption of cleaner vehicles
consumers’ BI of adopting an EV. studies (Kahn, 2007; Ozaki & Sevastyanova, 2011; Peters,
Gutscher, & Scholz, 2011) revealed this. These factors
Attitude cover EC, specific beliefs, social and personal norms and
shape intentions towards the adoption of cleaner cars.
Assessment of a person, an object or an issue defines ATT The ownership evaluation and use of an EV (i.e., ATT)
amid various definitions of ATT (Eagly & Chaiken, 2007). influence the adoption intention. Individuals also consider
ATT is a consistent response to the particular situation, an how other people would approve or disapprove of their buy
object, or class of objects. ATT explains the evaluation and (i.e., subjective norm).
judgement of a product or service. Literature defines ATT as Based on the literature review, this study proposes the
an individual’s assessment of the brand, product or service. following research model as given in Figure 2.
ATT has three distinct components, namely cognitive,
affective and behavioural. The cognitive aspect revolves
around an individual’s beliefs, thoughts and the features Research Methodology
related to the object or an issue. Considering an EV, the
cognitive component of ATT potentially comprises of the In India, EVs are scarce on the road and are not available
belief that an EV is good or bad for the environment. Wang readily in the market. Potential adopters/users of EVs may
et al. (2017) studied HEV consumers in China and found have never even seen, driven or charged such vehicles.
that EC indirectly influences the adoption intention and People have limited familiarity with the characteristics of
positively relates to the ATT towards HEV. Interpersonal these vehicles.
influence and community expectations play an essential The data collection was done through a structured ques-
role in forming consumers’ ATT towards the adoption of tionnaire. The developed instrument contained information
cars with new technologies (Guagnano, Stern, & Dietz, on constructs and their constituents. The designed ques-
1995; Stern, 2000). Impact of emotional factors like IM tionnaire had two parts. The first part focused on the data
and identity, willingness to contribute to a cleaner environ- related to demographic characteristics of the respondents:
ment can be a crucial attribute in shaping ATT towards EV this covered gender, age, education, household income and
as argued by Moons and De Pelsmacker (2012). ATT is an cars in the household. The second part of the questionnaire
antecedent to behaviour (Machleit, Allen, & Madden, measures the model variables. There was one dependent,
1993; Mitchell & Olson, 1981) and is a useful predictor of four independent and the mediating variable. The pilot
intentions, which are better than demographic and situa- study had 26 items for 6 test variables. The revised list had
tional factors of a consumer’s intentions to adopt a BEV 22 items based on the pilot test and depending on suita-
(Plötz et al., 2017). Examining a set of the best worst atti- bility. There are six constructs; four are independent, one
tudinal statement Beck et al. (2016) found ATT as the most mediator and one dependent variable. The final instrument
important adoption factor and that it has direct influence on had 19 items measuring the input variables. The items
consumer’s intentions. measured the BI to adopt.
Khurana et al. 27

Figure 2.  Proposed Model for Electric Vehicle Adoption


Source: Author’s own; result of data collection tabulation.
Note: PEB: Perceived economic benefit; EC: environmental concern; IM: self-image; SoC.In: social influence; ATT: attitude; BI: behavioural intention.

Sample Size one question each from EC and ATT and modified one
question from EC. Out of 214 respondents, 24.3 per cent
Structured equation modelling (SEM) lacks a defined were women, and the rest, 75.7 per cent, were men. All
formula to determine the appropriate sample size. Despite respondents were existing car owners and Indian nationals.
this, different authors suggested sample size of 100 or 200
Figures 3 and 4 show the age and educational profile of the
(Boomsma, 1985), 5 or 10 observations per estimated
respondents.
parameter (Bentler & Chou, 1987; Bollen, 1989) and 10
Structural equation model is an advanced technique
cases per variable (Nunnally, 1967) as different thumb rules.
used to study the relationship between several constructs
This article has 214 valid filled responses.
simultaneously. It is a structure of equations and can handle
The selected respondents were existing car owners.
several relationships in a single analysis.
They were residents of the National Capital Region (NCR)
This study employed SEM to investigate the predictive
Delhi, Mumbai and Pune. Out of the 450 respondents
relationship between the four exogenous variables. They
approached, 214 responded. There were no missing data,
are PEB (Perceived economic Benefit), EC, SoC.In and
and the responses were valid.
IM. The endogenous variable was BI with ATT as a medi-
Measurement ating variable. Mediation offers a reliable interpretation
of the causal effect. It describes the effect antecedent
The first part measures the demographic characteristics
has on the dependent variables and the rationale for the
as categorical data. The second part measures the model
variables using a 5-point Likert scale (1 as strongly disagree
and 5 as strongly agree).
SPSS version 21.0 (Software Package for Social
Sciences) and AMOS version 21.0 (Analysis Moment of
Structures) were used for data analysis. There are two
components of structural equation modelling—the meas-
urement model and the structural model. The first stage,
of the two-stage structural equation model, validates the
measurement model. The second stage measures the extent
and direction of the relationship.
Data Analysis and Results
The pilot questionnaire tested 33 respondents for relia-
bility. Cronbach’s alpha varied from 0.63 to 0.874, and
overall, α = 0.889. Hair, Anderson, Tatham, and Black
(1998) stated that the value greater than 0.6 is reliable. The Figure 3.  Age of the Respondents
revised instrument had 22 test items. The study dropped Source: Author’s own; result of data collection tabulation.
28 Vision 24(1)

Table 2.  Reliability and Validity

Cronbach’s AVE*(Construct
Construct No. of Items Alpha Validity)
PEB 4 0.712 0.388
EC 4 0.824 0.538
SoC.In 4 0.661 0.34
IM 4 0.736 0.435
ATT 3 0.895 0.75
BI 3 0.909 0.78
Source: Author’s own; result of data collection tabulation.
Note: *Average variance extracted.

Figure 4.  Educational Qualification of the Respondents PEB: Perceived economic benefit; EC: environmental
Source: Author’s own; result of data collection tabulation. concern; IM: self-image; SoC.In: social influence; ATT:
attitude; BI: behavioural intention.
Table 3 shows that all the measured indicators have
relationship. This article tests the mediation effect of ATT
loadings above the threshold point of 0.5. All are significant
between exogenous and endogenous variables.
at 0.1 per cent level of significance. The exceptions are ‘I
Construct Development and Measurement think I am more likely to adopt an EV if my friends and
The hypothesized model involves four exogenous variables relatives adopt it’.
and one endogenous variable. PEB, EC, IM and SoC.In are
measured using four items for each variable. Three items Table 3.  Factor Loading
measure endogenous variable BI. Three items measure the Factor
mediation effect of ATT. This study uses a 5-point Likert Measured Indicator   Construct Loading
scale, with 5 as Strongly Agree to 1 as Strongly Disagree, to
PEB 1: I will save on fuel expenses, as ! PEB 0.7***
measure items.
running cost should be lower in case
SEM is a two-step validation process. The first step of an electric vehicle.
validates the measurement model using confirmatory PEB 2: The maintenance cost for an ! PEB 0.6***
factor analysis (CFA) and the next step, the structural electric vehicle will be less.
model validation using SEM. The measurement model can PEB 3: Overall cost of owning an ! PEB 0.577***
access the reliability and validity of the instrument used to electric vehicle will be low due to
measure the underline construct. government incentives (incentives
= lower road tax/less insurance
Construct Reliability and Validity premium/cheaper loan)
Reliability and Validity are quality assessment tools for PEB 4: I am fully familiar with the ! PEB 0.609***
economic benefits offered by the
the instrument measuring the construct of the hypothetical
electric vehicle.
model. Reliability is the ability of the scale to produce EC 1: I want to adopt an electric EC 0.707***
!
consistent results. This study employs Cronbach’s alpha to vehicle because of increased air
examine internal consistency among items of the construct. pollution
Validity is the ability of the scale to produce accurate EC 2: The Electric vehicle can ! EC 0.805***
results. Average Variance Extracted (AVE) confirms the contribute to the environment for
validity of the scales measuring the constructs of the hypo- saving the future generation.
thetical model. As a rule, AVE score of 0.5 or higher EC 3: I am familiar with environmental ! EC 0.62***
suggests adequate convergence and validity. benefits offered by the electric vehicle.
EC 4: I want to conserve the ! EC 0.788***
PEB: Perceived economic benefit; EC: environmental
environment using the electric vehicle
concern; IM: self-image; SoC.In: social influence; ATT: over the conventional vehicle.
attitude; BI: behavioural intention. SoC. In 1: People will react positively ! SoC. In 0.622***
Cronbach’s alpha of all the constructs is above the when they see an electric vehicle on
threshold limit of 0.6 (Hair et al., 1988) as seen in Table 2, the road
thus supporting the reliability. AVE of three constructs is SoC. In 2: I think I am more likely to ! SoC. In 0.466***
below the threshold of 0.5, and thus factor loading reaf- adopt an electric vehicle if my friends
firms the validity. Factor loading is an essential indicator of and relatives adopt it.
construct validity. Factor loading is significant for loading SoC. In 3: People whose opinions are ! SoC. In 0.634***
important to me find electric vehicles
value above 0.5, indicating validity. Table 3 contains good
measured indicators, construct and factor loading. (Table 3 continued)
Khurana et al. 29

(Table 3 continued) Moreover, ‘Eco-friendly people will opt for an electric


Factor vehicle’. The above results support validation and the
Measured Indicator   Construct Loading model retains the indicators for its importance to the study.
SoC. In 4: Possessing an electric vehicle ! SoC. In 0.614*** Factor loading indicates that the items of the construct
would be a status symbol for me. converge at a common point for each of the construct.
IM 1: Driving an electric vehicle fits ! IM 0.742*** CFA (see Figure 5) confirms how well indicators repre-
my style. sent the latent constructs. It validates the following measure-
IM 2: Driving an electric vehicle will ! IM 0.751*** ment model using IBM Amos version 21.
reflect my personality.
Five fit indices assessed the CFA model fit. The meas-
IM 3: Eco-friendly people will opt an ! IM 0.46***
the electric vehicle. urement model, under consideration, had indices for χ2/df,
IM 4: My knowledge about the electric ! IM 0.646*** CFI GFI, PNFI and RMSEA within the acceptable fit. Fit
vehicle will improve my image. indices for goodness of fit index (GFI) were marginally
ATT 1: I am favourably inclined to ! ATT 0.792*** missed. The model fit was adequate. Table 4 shows the
switch to an electric vehicle. indices for χ2/df, CFI GFI, PNFI and RMSEA.
ATT 2: Driving an electric vehicle will ! ATT 0.914***
Fit indices CMIN/df, CFI, PNFI and RMESA suggest
be a wise decision.
ATT 3: It makes sense to use ! ATT 0.888*** adequate fit between sample data and the theoretical model.
an electric vehicle instead of a The measurement model analysis did not reveal the need
conventional vehicle. to change the items incorporated in the respective constructs.
BI 1: I would recommend the adoption ! BI 0.898*** Hence, the structural model was analysed. The structural
of an electric vehicle to others model’s analysis tested all the nine proposed hypotheses in
BI 2: I would speak favourably about ! BI 0.913***
the proposed model. The results of the structural model
the electric vehicle to others.
BI 3: I would definitely adopt an ! BI 0.837*** accept six of the nine hypotheses, that is, H(iv), H(v), H(vi),
electric vehicle. H(vii), H(viii) and H(ix) at p < 0.05 significance level. It
Source: Author’s own; result of data collection tabulation. rejects one of the nine hypotheses, that is, H(i), as its p-value
Note: ***Significant at 0.1% level of significance. was above p < 0.05 significance level. The hypotheses H(ii)

Figure 5.  Confirmatory Factor Analysis


Source: Author’s own; result of data collection tabulation.
Note: PEB: Perceived economic benefit; EC: environmental concern; IM: self-image; SoC.In: social influence; ATT: attitude; BI: behavioural intention.
30 Vision 24(1)

Table 4.  Fit Indices Confirmatory Factor Analysis

Fit Indices Recommended Observed Result


CMIN/df (minimum discrepancy as indexed chi-square) Less than 5 1.796 Acceptable fit
CFI (comparative fit index) More than 0.9 good fit 0.937 Good fit
0.8–0.9 borderline fit
GFI (goodness of fit index) More than 0.9 0.876 Marginally missed
PNFI (parsimonious normal fit) More than 0.5 0.730 Acceptable fit
RMSEA (root mean square error of approximation) Less than 0.08 for adequate fit 0.061 Acceptable fit
0.08–0.1 for acceptable fit
Source: Author’s own; result of data collection tabulation.

Table 5.  Hypothesis Results

Hypothesis Number Construct SRW Significance Result


(i) BI ! PEB –0.043 0.511 NS
(ii) BI ! EC 0.18 0.07 PS
(iii) BI ! SoC In 0.131 0.078 PS
(iv) BI ! IM 0.261 *** Significant
(v) BI ! ATT 0.617 *** Significant
(vi) ATT ! PEB 0.271 *** Significant
(vii) ATT ! EC 0.668 *** Significant
(viii) ATT ! SoC In 0.34 *** Significant
(ix) ATT ! IM 0.198 0.002 Significant
Source: Author’s own; result of data collection tabulation.
Note: p < 0.05. NS = Not significant; PS = partially significant; PEB: perceived economic benefit; EC: environmental concern; IM: self-image; SoC.In:
social influence; ATT: attitude; BI: behavioural intention, SRW = standardised regression weight.

and H(iii) are partially supported with p-values of 0.07 and Benefit, EC, SoC.In can influence BI via ATT, whereas IM
0.078. Table 5 shows the p-values for different constructs. has a direct impact on BI.
Table 5 suggests that perceived economic benefit (PEB)
is an insignificant predictor for BI. However, PEB has a
statistically significant relationship with ATT. EC and SoC. Discussion
In are partial predictors of BI but significantly affect The study aimed to examine factors that may influence EV
the ATT. IM is a significant predictor of BI to adopt. It adoption. Past research focused on technical factors,
also influences the ATT. These findings reveal that ATT is financial incentives, infrastructure and ECs. The model
a significant predictor of BI. proposed in the study had Perceived Economic Benefit,
Assessing the structural model (Figure 6) indicates a EC, SoC.In and IM as independent variables. The ATT
dependent relationship between the latent constructs. was the mediation variable to test BI. The study found that
Five fit indices assessed the model, as shown in Table 6. the PEB is not related to the BI to adopt EVs. Instead,
For the structural model under consideration, the indices it has a strong positive effect on ATT. Environment (EC)
for χ2/df, CFI GFI, PNFI and RMSEA were acceptable, and the SoC.In are partial predictors of the BI but signi-
and the overall model fit was adequate. ficantly affect the ATT. EC was a partial predictor for BI.
The GFI statistic ranges from 0 to 1, with a recommended Thus for broader adoption of EV, all stakeholders need
threshold of 0.9. Sharma, Mukherjee, Kumar, and Dillon to work together. Manufacturing firms, government
(2005) suggest ignoring this index, given its sensitivity. bodies, dealers and salespersons should promote the
The value of 0.05 is as an excellent fit for RMESA. The benefits of EV to increase adoption. To do this, they should
value of 0.05 to 0.08 is considered a good fit and 0.08 to show how EVs could mitigate toxic fumes generated by
0.1 as an acceptable fit (MacCallum, Browne, & Sugawara, internal combustion engines present in conventional
1996). vehicles, which may also affect the ATT, which influences
It is evident from Table 7 that full mediation exists the BI.
between SoC.In, Perceived Economic Benefits, EC and BI. IM emerged as a stable predictor of BI. It influences
ATT cannot mediate the relationship between IM and ATT as well towards the adoption of an EV. Results
BI. Hence, the study concludes that Perceived Economic revealed ATT as a significant predictor of BI.
Khurana et al. 31

Figure 6.  Structural Equation Model


Source: Author’s own; result of data collection tabulation.
Note: PEB: Perceived economic benefit; EC: environmental concern; IM: self-image; SoC.In: social influence; ATT: attitude; BI: behavioural intention)

Table 6.  Fit Indices (Structural Equation Model)

Fit Indices Recommended Observed Result


CMIN/df (minimum discrepancy as indexed chi-square) Less than 5 2.857 Acceptable fit
CFI (comparative fit index) More than 0.9 good fit 0.848 Borderline fit
0.8–0.9 borderline fit
GFI (goodness of fit index) More than 0.9 0.809 Marginally missed
PNFI (parsimonious normal fit) More than 0.5 0.68 Acceptable fit
RMSEA (root mean square error of approximation) Less than 0.08 for good fit 0.093 Acceptable fit
0.08–0.1 for acceptable fit
Source: Author’s own; result of data collection tabulation.

Table 7.  Mediating Effect Table

Direct Effect Indirect Effect Total Effect


Path Beta p-value Beta p-value Beta p-value Result
SoC. In"BI 0.131 0.199 0.21 0.002 0.341 0.001 Full mediation
PEB"BI –0.043 0.575 0.167 0.008 0.124 0.112 Full mediation
EC"BI 0.18 0.124 0.412 0.001 0.592 0.001 Full mediation
IM"BI 0.261 0.004 0.122 0.058 0.383 0.001 No mediation
Source: Author’s own; result of data collection tabulation.
Note: PEB: Perceived economic benefit; EC: environmental concern; IM: self-image; SoC.In: social influence; ATT: attitude; BI: behavioural intention.
32 Vision 24(1)

This study confirmed the findings of Oliver and Lee emotional appeal that depicts the EV driver in a positive
(2010) in the USA and Korea. They found that positive light, for example,
relations exist between IM and intentions to buy a HEV.
Social value influence on intentions to purchase HEVs • Care for the environment
was significant among the USA. However, this was not • Association with a high-status group
true among Korean respondents, their study revealed. Our • Proud technology adopter
findings suggest partial significance between SoC.In and
intention to adopt. The suggested measures may have a significant influence
on the consumer’s ATT, which has a substantial impact on
the adoption of EVs as per the findings of this study.
Managerial Implications
Several implications emerge for not only marketers and
manufacturers of EV but also the government from this Limitations and Suggestions for
study. Future Research
EV adoption in India is right now in a nascent stage; The limitation of the current study offers enough scope for
people are unfamiliar and hence may be sceptical for future research. This study empirically tested the proposed
a move towards EV. Preference for EV will evolve as conceptual model in India. It is advisable to undertake
technology advances, and as familiarity, penetration and similar studies under different conditions and in different
SoC.In improve. regions.
Decisive governmental policy on EV and well-articulated However, ‘intention’ to adopt may not lead to an actual
incentives applicable to early adopters (manufacturer and buy. Further investigation can suggest whether intention
consumer) will play a significant role in switching to EVs. converts to adoption. As noted by Hassan, Shiu, and Shaw
ATT emerged as the main factor, which influenced the (2014), the relationship between intent to adopt and buying
EV adoption. Hence, EV manufacturers and marketers behaviour requires detailed modelling, which is more
need to work on transforming ATT in a positive direction pronounced for buying environmentally friendly products
towards EVs. Appropriate incentivization is also essential that are complex, as stated by the authors. The research
since as per the results Perceived economic benefit (PEB) measured four covariates: EC, perceived economic benefit,
also affects BI via ATT. IM and SoC.In. Further studies could examine the influ-
The environment is a concern for all, Central and State ences of other covariates. These may include perceived
governments, and every human being, regardless of their consumer effectiveness, information, scepticism, safety,
stature. Introduction of green licence plates on EVs can risk, interest and experience.
symbolize concern for the environment, and support with In the future, it would be meaningful to test this model
financial incentives such as free or concessional toll, parking with actual EV owners. With global concerns on environ-
or priority at public places may enhance adoption. ment increasing every day, this area offers immense scope
Hence, marketers’ communication in addition to the for future research.
above should highlight the expected features like
Declaration of Conflicting Interests
• Functional information such as range covered per The authors declared no potential conflicts of interest with respect
battery charge, battery life and maximum speed to the research, authorship and/or publication of this article.
along with Quality specifications.
Funding
However, additionally, The authors received no financial support for the research,
authorship and/or publication of this article.
• How the customer can affect the environment posi-
tively by adopting EVs.
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cles. Journal of Industrial Ecology, 22(4), 773–784. Anil Khurana (anil.khurana@me.com) is a Research
Rasouli, S., & Timmermans, H. (2016). Specification of regret-
Scholar and is pursuing PhD from Symbiosis International
based models of choice behaviour: Formal analyses and
(Deemed University). He has obtained MMS from Pune
experimental design based evidence. Transportation, 44(6),
1555–1576.
University. Besides, he did a course on Senior Management
Sang, Y., & Bekhet, H. A. (2015). Modelling electric vehicle from IIM Calcutta. In a career spanning over three decades,
usage intentions: An empirical study in Malaysia. Journal of he used to work for top tier-one auto-component companies.
Cleaner Production, 92, 75–83. He has served in the capacity of Director Operations,
Schuitema, G., Anable, J., Skippon, S., & Kinnear, N. (2013). Executive Vice President and CEO. His interest lies in the
The role of instrumental, hedonic and symbolic attributes automotive sector.
in the intention to adopt electric vehicles. Transportation
Research Part A: Policy and Practice, 48, 39–49. V. V. Ravi Kumar (vvkumar@sibmpune.edu.in) is an
Sharma, S., Mukherjee, S., Kumar, A., & Dillon, W. R. (2005). Associate Professor at SIBM, Pune. He has over a decade
A simulation study to investigate the use of cut-off values for of industry experience and has been in academics for the
assessing model fit in covariance structure models. Journal of past 12 years. He has authored many papers in journals
Business Research, 58(7), 935–943. indexed in Scopus/ABDC. Dr Ravi Kumar has also contri-
Sirgy, M. J. (1982). Self-concept in consumer behavior: A critical buted articles to leading business newspapers in India like
review. Journal of Consumer Research, 9(3), 287–300.
The Hindu Business Line, Business Standard and Financial
SIAM. (2017). Society of Indian Automobile Manufactures.
Express. He has handled MDPs for leading companies.
Retrieved from http://www.siam.in
Stern, P. C. (2000). New environmental theories: Toward a coher-
ent theory of environmentally significant behavior. Journal of Manish Sidhpuria (mvsidhpuria@yahoo.com) has a
Social Issues, 56(3), 407–424. teaching and industry experience of more than 27 years.
Valeri, E., & Danielis, R. (2015). Simulating the market penetra- He was associated for about 8 years with the healthcare
tion of cars with alternative fuel power train technologies in sector and after that for over 19 years in teaching post-
Italy. Transport Policy, 37, 44–56. graduate management, research and consultancy. He has
Venkatesh, V., & Davis, F. D. (2000). A theoretical extension published more than 30 research papers in journals of
of the technology acceptance model: Four longitudinal field repute. He has authored a book titled Retail Franchising
studies. Management Science, 46(2), 186–204. published by Tata McGraw-Hill.

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