Transportation

DOI 10.1007/s11116-017-9801-3

Applying the theory of reasoned action to understanding

consumers’ intention to adopt hybrid electric vehicles
in Saudi Arabia

Khalid Alzahrani1 • Adrienne Hall-Phillips2 • Amy Z. Zeng2

 Springer Science+Business Media, LLC 2017

Abstract To satisfy the global energy demand while accommodating the rapidly
increasing consumption rate in its domestic market, Saudi Arabia must develop and
implement fuel efficiency programs in many sectors. In the transportation sector, which is a
major contributor to fuel consumption and emissions, hybrid electric vehicles (HEVs)
could provide a viable solution, but they are not yet available in the Saudi market.
Applying the theory of reasoned action (TRA) and an online questionnaire instrument
(N = 847), this paper aims to identify the factors that could drive Saudi citizens’ intention
to adopt such technology. We find that the TRA is appropriate to describe intention to
adopt HEVs in the Saudi context, and that both subjective norms and attitudes are sig-
nificant in explaining Saudi consumers’ intention, with subjective norms having three
times as strong an effect as attitudes. The findings should be useful to relevant Saudi
government officials as they develop and implement transportation-related initiatives and
policies, as well as to global auto manufacturers and dealers seeking to tap into Saudi
Arabia’s prospective HEV market.

Keywords Hybrid electric vehicles
Alternative fuel vehicles
Efficient

vehicles
Theory of reasoned action
Saudi Arabia

& Khalid Alzahrani

khmohmmed@bu.edu.sa
Adrienne Hall-Phillips
ahphillips@wpi.edu
Amy Z. Zeng
azeng@wpi.edu
1
Mechanical Engineering, Albaha University, Prince Mohammad Bin Saud Road, Al Bahah,
Saudi Arabia
2
Foisie Business School, Worcester Polytechnic Institute, 100 Institute Road, Worcester,
MA 01609, USA

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Introduction

Global fuel consumption is growing, and oil-producing countries have a responsibility to

meet increasing global energy demands. According to the U.S. Energy Information
Administration (EIA 2014), international oil supply relies heavily on members of the
Organization of Petroleum Exporting Countries (OPEC) to meet this demand, especially
Saudi Arabia and Iraq. Saudi Arabia itself is experiencing increased domestic consumption
as the largest petroleum consumer in the Middle East, especially to power its generation
and transportation sectors (EIA 2014). The chief executive officer of its national oil
company, Saudi Aramco, has stated that ‘‘domestic liquids demand was on pace to reach
more than 8 million barrels a day of oil equivalent by 2030 if there were no improvements
in energy efficiency’’ (EIA 2014). Therefore, it is important for the country to make
progress toward more efficient use of energy in various sectors, including transportation.
Many factors are driving efforts to encourage the adoption of more efficient vehicles
such as the Prius and other hybrid electric vehicles (HEVs).1 These factors include, but are
not limited to, air pollution, the need to reduce greenhouse gas and carbon dioxide
emissions in response to global warming, foreign oil dependence (Belzowski and
McManus 2010), and possible oil shortages (Bhunnoo et al. 2011; Sioshansi et al. 2010;
Tanaka and Shigeta 2007). Poor air quality, which negatively affects health and produc-
tivity and can lead to national economic losses (Presidency of Meteorology and Envi-
ronment 2015), is affected by transportation systems, greenhouse emissions and other
sources (World Bank 2015).
Vehicles, which are a major air pollution source in Saudi Arabia, cause almost 66% of
carbon monoxide pollutants and 50% of nitrogen oxides and hydrocarbon pollutants
(Presidency of Meteorology and Environment 2015). Saudi Arabia is the largest vehicle
importer in the Middle East, and its import levels have grown rapidly in recent years. Due
to demographic factors, high disposable income and low fuel prices, the U.S.-Saudi
Arabian Business Council projects a favorable outlook for the automotive demand which
ignited many ambitious local vehicle manufacturing initiatives (USSABC 2017).
As one way to begin addressing the challenge of reducing emissions and pollution, Saudi
Arabia’s government has introduced unleaded gasoline (Dincer et al. 2004). Also, in 2009 it
enacted a policy that prohibited the importing of vehicles more than 5 years old and required
vehicle manufacturers and distributors to report proper fuel economy data on all new vehicles.
Despite these changes, fuel consumption is still steadily increasing in Saudi Arabia,
pushing emission levels to an all-time high. Accordingly, new fuel-efficient technologies
must be adopted in the transportation sector. HEV adoption would represent a particularly
effective step in reducing fuel consumption in Saudi Arabia as well as a stepping stone
toward satisfying global energy demand. Therefore, the aim of this paper is to study the
potential for HEV adoption in Saudi Arabia.

Literature review

HEV purchase motivations

Vehicles are complex symbolic objects, used by people not just for transportation but also
to express themselves (Bremson et al. 2013; Plötz et al. 2014). Arreola (2013) suggested
1
In this paper, the term HEV refers to vehicles that do not require plug-in charging.

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that HEVs are associated with clean energy, technological advancement, and environ-
mental consciousness, in addition to signifying one’s wealth. HEV use not only reduces
fuel consumption but also expresses a statement that one is part of a green community
(Ozaki et al. 2013). HEVs may be adopted for various reasons, including one’s perceived
identity, personal values, social pressure, demographic factors and responsiveness to
financial incentives.
Factors, like family size, age, gender and occupation often play important roles in
forming consumption desires and patterns (El-Omari 2014). In the United States for
example, Keith (2012) found that HEV adoption was affected by socioeconomic and
demographic factors. Similarly, HEV buyers in Switzerland and the United Kingdom were
found to have above-average income and education levels (Plötz et al. 2014). In another
study, households with multiple vehicles had a higher likelihood of adopting electric
vehicles (Zubaryeva et al. 2012).
The most common drivers of HEV adoption reported in the literature are social influ-
ence, environmental concern and fuel sensitivity, each detailed in the following
subsections.

Social influence

Consumer preference is a critical factor in the dissemination of HEVs (Chorus et al. 2013).
Consumers are affected by seeing other people buying HEVs (Belgiawan et al. 2013), or as
a result of social norms and pressures exerted by adopting communities (Goody 2014; Hori
et al. 2013). Rai and Nath (2014) reported that word of mouth (a form of social influence)
increased the value of plug-in electric vehicles (PEVs) in the eyes of their adopters. Chan
et al. (2013) showed that HEV consumers usually cluster in the same area, feeling com-
pelled to conform to their cluster’s values and norms. Hong et al. (2013) also asserted that
compatibility with society is positively related not only to HEV purchases, but also to the
use of biofuels and hydrogen-powered cars. Gadenne et al. (2011) found that the factors
influencing environmental behaviors include a sense of social responsibility, ease of
adoption and personal relevance. They also observed that consumers are positively
influenced by the opinions and actions of family members, friends and associates. Bel-
giawan et al. (2013) confirmed the importance of peer influence in Indonesia and rec-
ommended promoting the message that driving HEVs is normal and not out of the
ordinary. In the United States, Keith (2012) documented and explained the non-uniform
distribution of Prius sales, as Prius owners are heavily concentrated on the West and East.

Environmental concern or fuel sensitivity?

Numerous published studies have suggested that financial gains are often more important
than environment-related benefits in motivating the purchase of fuel-efficient vehicles. For
instance, Krupa et al. (2014) found that the environmental benefits gained from plug-in
hybrid electric vehicle (PHEV) adoption were ranked as less important than financial gains
or battery factors. Sullivan and Sivak (2012) suggested that lower carbon emissions alone
might be an insufficient incentive for most potential users unless some financial benefits
can be attained as well. Tran et al. (2013) determined that financial benefits have the largest
influence on early adoption (rather than pro-environmental behavior), thus suggesting that
HEV marketing should emphasize economic along with environmental benefits. They also
indicated that ‘‘HEV adopters while being more financially savvy might still reflect general
consumer behavior by placing greater emphasis on short-term financial savings at the

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pump, rather than longer-term savings from improved fuel economy’’ (Tran et al. 2013,
p. 872). On the other hand, there do exist some HEV buyers who consider their desire to
preserve the environment a sufficient motivation (Russell-Verma 2013).

Studies of Saudi purchase behavior

HEVs are not yet available in the Saudi market. Moreover, relevant consumer behavior research
on Saudi Arabia is limited, as is research literature in Arabic (the language spoken in Saudi
Arabia). No studies have examined the market share or diffusion of traditional diesel vehicles in
Saudi Arabia, even though they have been in the market for a long time. Nevertheless, it will be
helpful to briefly review existing research on the behavior of Saudi consumers.
The spread of consumerism in Saudi Arabia is a result of many local and global factors,
including the Internet, proliferating shopping centers, national government subsidies, the
absence of taxes, and liberal import policies (Assad 2008). In a recent field study, El-Omari
(2014) stated that 68% of Saudis said that their purchase decisions are driven more strongly
by their desire for acquiring the goods than by their amount of disposable income. El-
Omari also reported that 70% of Saudis place heavier emphasis on such elements as family
size, access to information, and attitude toward a product than on income in formulating
their purchase desires, with males exhibiting this tendency more strongly than females.
Opoku (2012, p. 178) reported that ‘‘informational influence on publicly consumed
luxuries would be greater in terms of peer influence than privately consumed necessities
among young adults.’’ He found that, among young Saudi adults, the effect of peer
influence on public consumption of luxuries is greater than on purchases of private
necessities such as televisions.
In a typical household in Saudi Arabia, the husband plays the dominant role in deciding
how much the family will spend on a vehicle, but the wife exerts greater influence in
determining the need for the vehicle (Yavas et al. 1994). Moreover, the wife’s influence on
purchase decisions, including automobile purchases, is a function of her education level.
Another study has reported that Saudi girls are less likely to pay attention to vehicle com-
mercials than Saudi boys (Yavas and Abdul-Gader 1993). Saudis also tend to consume more
durable goods than people in industrial societies. For example, Assad (2008) found that
Saudis replace their vehicles more frequently. That study also pointed out that Saudi families
usually own more than one vehicle and employ a full-time chauffeur for the family.
Each society perceives HEVs differently, resulting in a different pattern of HEV dif-
fusion, which in turn calls for certain types of policies for each society. Thus, it is
important to conduct studies in a wider variety of communities, cultures and countries.
Additionally, the literature on Saudi Arabia vehicle consumers’ behavior is limited. This
paper attempts to fill those gaps by providing a better understanding of vehicle purchase
behavior and motivations in Saudi Arabia. It then seeks, in light of this understanding, to
recommend appropriate policies to promote HEV diffusion in the country.

Hypothesis development

Ajzen and Fishbein (1980), in their theory of reasoned action (TRA), asserted that
intention, when properly measured, is the strongest determinant of behavior. Since then,
the TRA has been used extensively to study many types of behavior, such as renewable
energy adoption (Bang et al. 2000), HEV adoption (Wang et al. 2014), and recycling

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(Goldenhar and Connell 1993). The theory can be generalized to explain any human
behavior (Ajzen and Fishbein (1980), and its explanatory power holds across different
cultures (Park and Levine 1999). For all these reasons, it is appropriate to apply the TRA to
studying Saudi citizens’ intention to adopt HEVs.
In this paper, the TRA represents an individual’s attitude toward adopting HEV as a
function of his or her beliefs about the consequences of adoption and the evaluation that he
or she makes with regard to actual adoption. Subjective norms (SN) are a function of an
individual’s normative beliefs and the motivation to comply with those normative beliefs.
Wang et al. (2014), in their study of HEV adoption, gathered the relevant survey
constructs from various sources (Bagozzi et al. 2003; Nordlund and Garvill 2003;
Jakovcevic and Steg 2013) and then modified them to fit the topic at hand. In this paper, we
employ a similar logic and adapt the model used by Wang et al. (2014) because of its
similarities in research topic and goal. A schematic representation of the model is shown in
Fig. 1. It presents, in light of the above theoretical discussion, the following research
hypotheses about intention to adopt HEVs in Saudi Arabia:
• H1: Attitude about adopting HEVs is positively related to intention to adopt HEVs.
• H2: Subjective norms about adopting HEV are positively related to intention to adopt
HEVs.
The previous literature has reported that environmental consciousness sometimes drives
HEV adoption (Plötz et al. 2014). Krupa et al. (2014) found that people who are concerned
with the environment considered PHEVs’ environmental benefits a stronger purchase
motivator than their financial benefits. They also found that participants who were most
concerned about climate change were 44.4 times more likely to purchase PHEVs than
those least concerned. This finding suggests the usefulness of testing the effect of envi-
ronmental concern (EC) on intention to adopt HEVs through EC’s effect on TRA con-
structs. Thus the following two hypotheses emerge:
• H3: Environmental concern is positively related to attitude about adopting HEVs.
• H4: Environmental concern is positively related to subjective norms about adopting
HEVs.

A1
Control
A1 variables
A
A1
H1
A1
EC1 AHEVI 1
H3
EC2
EC AHEVI AHEVI 2
EC3
H4
EC4 SN1 AHEVI 3

SN2 H2
SN3
SN
SN4

Fig. 1 Schematic description of the proposed extended TRA model

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In the Saudi context, many factors can affect AHEVI including the control variables
such as family size, income and education level that were mentioned earlier in the liter-
ature review. Not only are the demographics and control variables important, but the
interaction between them may be relevant. For example, we suspected a correlation
between age and education level that might affect AHEVI, as well as a relationship
between level of education and expected income. It is imperative to explore the possible
effect of the interaction between these and other socioeconomic factors on AHEVI. To do
so and while avoiding multicollinearity issues, we first normalized all control variables
under consideration and then computed the following interaction terms: (age 9 education
level), (income 9 education level), (income 9 household size), (age 9 household size),
(gender 9 income), (number of vehicles 9 education level), (number of vehi-
cles 9 household size), and (number of vehicles 9 age).

Methodology

Data collection and sample

In this research, we surveyed a Saudi population sample contacted by means of a com-

bination of email lists (from a large public university, a small college and private firms),
social media (Twitter, Facebook and LinkedIn), and messaging (WhatsApp). The data
were collected using a self-administered online questionnaire, targeting Saudi respondents
age 18 or older. Because of the convenience sampling method used, it is not possible to
indicate a response rate or to assess non-response bias. The original survey instrument was
developed in English. However, since the survey was conducted in an Arabic-speaking
country, the instrument was translated from English to Arabic and then back-translated
from Arabic to English to ensure accuracy (Douglas and Craig 1983). The questionnaire
was disseminated and data were collected using Qualtrics between August and October
2015. Respondents who completed the whole survey were entered into a raffle to win one
of five $50 gift cards or one of five $27 prepaid phone services with a choice of local
telecommunications operator.
Of the 1600 responses returned, not all were useful due to missing values and incom-
plete responses. For the main elements of the questionnaire, only complete responses were
retained. For the control items, however, the median was used to replace the missing values
for categorical data types and the mean was used for continuous data types. Also, since
participating in the survey involved a potential reward, some reward-seeking respondents
may not have taken the questions seriously (e.g., they chose the same answer for all
questions). Therefore, responses with zero standard deviation were removed in an effort to
eliminate non-serious respondents. Outliers were not a concern for this study, since all
answer choices were coded in a drop-down list.
After data cleaning, 847 valid responses remained. Table 1 provides more detail on the
demographics of the sample. The relatively low rate of valid surveys is partly due to the
length of the survey, which took on average 30 min to complete (the survey consisted of
many sections, including car purchasing behavior, vehicle preferences, and consumer
education on HEVs). The valid responses might appear to include an over-representation of
the younger generation, but these demographics are reflective of the overall Saudi popu-
lation. Saudi Arabia is a young nation, with 19.11% of its people between ages 15 and 24
and another 54.9% between ages 25 and 54 (Central Intelligence Agency 2016). The

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Table 1 Respondents demographics

Variables Frequency % (N = 847)

Gender F: 29.8% M: 70.2%

Age 18–24: 10% 35–49: 32%
25–34: 52% 50–64: 5%
[65: 0%
Education level Did not complete high school: 0.6% BS: 62.2%
High school: 7.6% Master’s degree (15.1%)
Some college/associate: 10.2% Advanced grad. Work/Ph.D. (4.4%)
House structure Married (no children): 7.1% Single parent (non-dependent children): 0.1%
Married (dependent offspring): 71.7% Single: living with family: 11%
Married (non-dependent children): 4% Single: living alone: 4.8%
Single parent (dependent children): 0.2% Other: 1.1%
Household size 1: 2.2% 5: 35.9%
2: 6.3% 6:9.9%
3: 10.6% 7:10.5%
4:12.9% [7: 11.7%
Income (SAR) \1200: 3% 15,001–18,000:8.6%
1201–2800: 4.4% 18,001–21,000: 7%
2801–4000: 1.8% 21,001–24,000 (4.8%)
4001–6000: 6% 24,001–27,000 (2.8%)
6001–9000: 7.7% 27,001–30,000 (2.1%)
9001–12,000: 10.6% [30,000 (6.3%)
12,001–15,000: 34.9%
Nationality Saudis: 96.1% Others: 3.9%

sample under-represented the female population; however, the Saudi society is male-
dominated and females are generally less curious about vehicles than males, so a lower
female response rate was expected (Yavas and Abdul-Gader 1993).

Measures

The measures for this study were adapted from existing scales previously used by Wang et al.
(2014) in their study of HEV adoption in China. Attitudes (A) were assessed using four
semantic differential scale items on a 5-point scale. Subjective norms (SN) and environ-
mental concern (EC) were assessed using four items, each on a 5-point Likert scale. Lastly,
intention to adopt an HEV (AHEVI) was assessed using three items, each on a 5-point Likert
scale. See Wang et al. (2014) for a review of the original items used to develop their survey
instrument. The list of items used in the present is provided in the ‘‘Appendix’’.

Analysis and results

Since this research was based on a survey, the potential for common method bias was
present. Harmen’s one-factor test was conducted to verify that no single factor was
responsible for the majority of the variance explained, and hence that common method bias

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was not a concern (Podsakoff et al. 2003).The rest of the analysis was conducted over four
stages: measurement model testing, structural model testing, and study of the mediating
effect of environmental concern. AMOS Graphics was used in the analysis. Each of the
four stages is explained in the following sections.

Assessment of the measurement model

An exploratory factor analysis (EFA) was carried out using the maximum likelihood
extraction method with promax rotation and Kaiser normalization. Three scale items were
removed because of low extractions or multicollinearity. The remaining items in the model
explained 63.19% of the total variance. All items loaded on their respective factors nicely,
and the average item loading for each of the respective factors was at least 0.7 (Gaskin
2013). There was no cross-loading for any of the items within a difference of 0.2 (see
Table 2).
Therefore, we could conclude that the model had an acceptable level of convergent and
discriminant validity. Additionally, Cronbach’s alpha reliability measures for all factors
were obtained, indicating that all of them except EC were at or above the acceptable in-
ternal consistency level of 0.7. For EC, Cronbach’s alpha was 0.65, close to the threshold
of 0.7. Cronbach’s alpha is sensitive to the number of items within the construct under
consideration; i.e., with a greater number of items, alpha becomes larger (Cronbach 1951).
In this case, EC has only two items, the minimum possible, and therefore the reliability
level was considered acceptable. The solution factor loadings, reliability data and other
information are presented in Table 2.
A confirmatory factor analysis (CFA) was performed to examine the validity of the
measurement model. For a CFA model with a sample size of up to 200, a Chi square test is

Table 2 Exploratory and confirmatory factor analysis

Constructs Items Loading CR a AVE MSV ASV AHEVI A SN EC

Adopting HEV AHEVI1 0.73 0.91 0.91 0.76 0.48 0.23 0.874
intention
(AHEVI)
AHEVI2 0.96
AHEVI3 0.87
Attitude (A) A2 0.82 0.89 0.89 0.73 0.18 0.12 0.429 0.86
A3 0.89
A4 0.86
Subjective norms SN1 0.63 0.81 0.80 0.52 0.48 0.22 0.692 0.38 0.7
(SN)
SN2 0.77
SN3 0.62
SN4 0.76
Environmental EC 1 0.81 0.66 0.65 0.49 0.03 0.03 0.172 0.17 0.2 0.7
concern (EC)
EC 2 0.60
CR composite reliability, AVE average variance extracted, MSV maximum shared variance, ASV average
shared variance

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Table 3 Model fit readings and

Measure Threshold Extended TRA
thresholds
CMIN/DF \3 2.485
GFI [0.95 0.977
AGFI [0.8 0.963
CFI [0.95 0.986
SRMR \0.05 0.0275
PCLOSE [0.05 0.918

a reasonable fit measure; however, for a larger sample size, like the one in this study, a Chi
square test is likely to be statistically significant (Kenny 2015). Therefore, the model fit
was evaluated using the following alternative measures: Chi square/df (CMIN/df), good-
ness-of-fit index (GFI), adjusted goodness-of-fit index (AGFI), Bender’s comparative fit
index (CFI), standardized root mean squared residual (SRMR), and probability of close fit
(PCLOSE). The measures and their respective thresholds (Hu and Bentler 1999) and the
CFA model fit readings are presented in Table 3. Although the model fit readings were all
at the acceptable thresholds, the modification indices were also examined, confirming that
no valuable gain would be realized from any changes to the initial CFA model.
The composite reliability (CR) for EC, as seen in Table 2, was 0.655, just below the
traditional acceptable level of 0.7. Also, the more conservative average variance extracted
(AVE) measure of EC was 0.488, less than the suggested threshold of 0.5. Therefore, the
EC construct’s convergent validity is questionable, because the error explains more than
50% of the variance (Fornell and Larcker 1981). With the exception of the limitations of
the EC construct, which was accepted because of the small deviation from the established
thresholds, there was no validity issue with the CFA model as evidenced by the CR, AVE,
maximum shared variance (MSV), and average shared variance (ASV) as presented in
Table 2. After performing curve estimations for all the relationships in the CFA model, we
determined that all relationships were definitely linear. Multicollinearity for EC, SN and A
(predicting AHEVI) was checked using variance inflation factors (VIF); all VIFs were
below 3.3 (Lowry and Gaskin 2014), ruling out this concern. Thus, it was deemed safe to
proceed with using the AMOS covariance-based structural equation modeling (SEM)
algorithm.

Structural model and hypothesis testing

The initial SEM fit (CMIN/df: 4.071, GFI: 0.963, AGFI: 0.942, CFI: 0.969, SRMR: 0.0965
and PCLOSE: 0.024) was improved upon checking the modification indices. It was found
that if the analysis was repeated while controlling for the covariance between the A and SN
error terms, the model fit would exceed the acceptable model fit thresholds (CMIN/df:
2.452, GFI: 0.977, AGFI: 0.964, CFI: 0.986, SRMR: 0.0284 and PCLOSE: 0.932). This
change led to a valid SEM with a squared multiple correlation of 0.52, which represents the
amount of variance that the model explains in AHEVI. Both regression lines from SN and
A were significant at the 0.001 level: 0.19 between A and AHEVI and 0.63, or more than
three times as much, between SN and AHEVI. Path coefficients are shown in the schematic
model in Fig. 2.

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Fig. 2 Extended TRA model

with path coefficients. *0.001 Control
significance level variables

A
0.17* 0.19*

EC AHEVI

0.18* 0.63*
SN

Table 4 Standardized reg. weights and significant levels for control and interactions
Relationships Estimate SE CR P

AHEVI / Household size 0.023 0.016 0.775 0.438

AHEVI / Income -0.027 0.012 -0.817 0.414
AHEVI / Education level -0.056 0.032 -1.825 ***
AHEVI / Gender 0.003 0.067 0.093 0.926
AHEVI / Age 0.012 0.044 0.350 0.727
AHEVI / Current vehicle owner? -0.115 0.107 -3.146 **
AHEVI / Number of vehicles 0.064 0.030 1.906 ***
AHEVI / Age 9 education level 0.000 0.027 -0.013 0.989
AHEVI / Income 9 education level -0.030 0.026 -0.994 0.320
AHEVI / Income 9 household size 0.006 0.026 0.210 0.834
AHEVI / Age 9 household size 0.114 0.027 3.454 *
AHEVI / Gender 9 income -0.005 0.037 -0.167 0.868
AHEVI / Number of vehicles owned 9 education level 0.003 0.033 0.085 0.933
AHEVI / Number of vehicles owned 9 household Size -0.010 0.027 -0.339 0.735
AHEVI / Number of vehicles owned 9 age -0.014 0.026 -0.478 0.633

* Significant at level of 0.001; ** significant at level of 0.05, *** significant at level of 0.1

Control variables and interaction terms effect on AHEVI are presented in Table 4
below. Contrary to prior evidence, income (Diamond 2009; Erdem et al. 2010; Gallagher
and Muehlegger 2011; Wang et al. 2014), gender (Erdem et al. 2010) and age (Gallagher
and Muehlegger 2011) were found to have no statistically significant impact on AHEVI.
Household size also was insignificant, consistent with the results of Erdem et al. (2010).
Education level, surprisingly, had a negative effect, in contrast to previous studies (Po-
toglou and Kanaroglou 2007; Erdem et al. 2010). The status of currently owning a vehicle
also had a significant and negative impact. Nevertheless, the number of vehicles owned
was found to be positively significant, a finding in line with Zubaryeva et al. (2012). A
possible interpretation of this curious pair of findings is presented in the discussion section.
Among all the interaction terms tested, the interaction between age and household size
was the only significant one. As shown in Fig. 3, the relationship between household size
and AHEVI was negative among younger participants but positive for older respondents.

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3.5 Younger age Older age

Adopting HEV Intention

3.3

3.1

2.9

2.7

2.5
Small house size Large house size

Fig. 3 Interaction effect of age and household size on AHEVI

The mediating effect of environmental concern

Mediation effect analysis was conducted as suggested by Baron and Kenny (1986), in three
phases as presented in Fig. 4. First, the unmediated path between EC and AHEVI was
inspected and showed a significant b of 0.169. Next, the relationships between EC and both
A and SN were checked and found to be significant (EC to A, 0.174; EC to SN, 0.177).
Finally, the direct path between EC and AHEVI became nonsignificant when examined in
conjunction with the mediating relationships (see the readings in bold and italics in Fig. 4).
Therefore, A and SN fully mediated the relationship between EC and AHEVI.

Discussion

This paper has applied the theory of reasoned action to model the intention of Saudi
Arabian consumers to adopt HEVs. The empirical results showed that subjective norms
and, to a lesser degree, attitudes significantly affected HEV adoption intention. Further-
more, we explored the effects of environmental concern on attitudes and subjective norms
pertaining to HEV adoption intention. We found that attitudes and subjective norms fully
mediated the effect of consumers’ environmental concern on their intention to adopt HEV.
To the best of our knowledge, this is the first study of HEV adoption intention in Saudi

A
0.173* 0.174*

0.031(.383, NS) 0.169* AHEVI

EC

0.172* 0.177 *
SN

Fig. 4 Mediation effects. *0.001 significance level; NS not significant

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Arabia. Thus, we argue that the findings not only add a theoretical contribution to the
literature, but also provide insights with global and local implications.
Three global implications can be observed. First, any reduction of fuel consumption in
Saudi Arabia will help the country to meet the growing global energy demand. Second, if
Saudi Arabia succeeds in diffusing efficient vehicles, given its status as the largest oil
exporting country, that success would send a strong and positive signal in support of green
transportation. Third, the international auto industry can use these research findings in
projecting and responding to the anticipated demand for efficient vehicles (particularly
HEVs) in the Middle East’s largest market, Saudi Arabia.
Within the Saudi context, this research provides government officials and policymakers
with relevant local insights on such issues as the design and updating of the Saudi Cor-
porate Average Fuel Economy (CAFE) standards, which are still in their infancy. The
findings can also help auto distributors and dealers in Saudi Arabia to better assess the
potential market for HEVs in their country.
The modeling effort in this paper demonstrated that subjective norms had a greater
effect on intention to adopt HEV use than did attitudes. This is contrary to the suggestion
of Trafimow and Fishbein (1994) that attitudes tend to predict behavior intention better
than subjective norms. A study by Park (2000) also suggested that collectivistic culture
members’ score on subjective norms tend to be higher than those on attitudes. Members of
Saudi society, in general, place great weight on what others might think or say when
deciding on publicly visible behaviors such as adopting HEVs. This finding is consistent
with those of Wang et al. (2014), who asserted that HEV consumers’ adoption intention in
China is more sensitive to subjective norms than to attitudes since China is a relatively
collective society. Accordingly, HEV advertising messages should emphasize that adopt-
ing HEVs is in line with what influential people (e.g., family members, celebrities and
think tanks) would prefer to adopt. Such individuals have a strong effect in creating
positive norms, which in turn foster favorable HEV adoption intentions and ultimately
persuade people to buy and drive HEVs.
Although attitudes were not as influential as subjective norms, they did also significantly
affect intention to adopt HEVs. This finding is relevant to policymakers concerned with HEV
diffusion in Saudi Arabia, providing empirical evidence that they should focus on positively
altering peoples’ attitudes toward adopting HEVs. This might be achieved not only by
influencing societal beliefs about the attributes of HEVs, but also by creating new percep-
tions—for example, that HEVs can have comparable or better performance when compared
to traditional gasoline vehicles. Even though the theory of reasoned action suggests that
intention precedes behavior (or, more fully, that attitudes affect intention, which then affects
HEV adoption behavior), making HEV test drives available at local dealerships can create
positive attitudes, which could then lead the way to favorable HEV purchase decisions.
The relationship between owning a vehicle and intention to adopt HEV use was particu-
larly curious. Respondents who currently owned a vehicle had a lower intention to adopt
HEVs than those who didn’t. However, the more vehicles a respondent owned, the greater the
possibility that he or she intended to buy an HEV. A plausible explanation for these findings is
that in Saudi Arabia, as in other parts of the world, some households opt to keep multiple
vehicles for economic reasons, to prevent the more luxurious or family-friendly vehicle from
suffering the daily wear and tear that it would receive if it were the only vehicle in the
household. This tendency has been noted in other studies. For example, Zubaryeva et al.
(2012) pointed out that in Europe, a household owning more vehicles had a higher likelihood
to adopt electric vehicles. In such families, the second vehicle is usually used for short
commutes, whereas the first one is saved for other types of journeys. Other researchers

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reported a similar pattern with shorter-range trips being completed by battery electric vehicles
and longer-range PHEVs being used for longer-distance trips (Tran et al. 2012).
Although the effect of gender on intention to adopt HEV was not significant, more than
40% of the respondents who indicated not owning a vehicle were females, who are not
allowed to drive in Saudi Arabia. Therefore, this finding of insignificance should be inter-
preted cautiously. This issue requires further research with more in-depth and focused tools.
Household size (defined as the number of members in a given household) was found to
be an insignificant factor, consistent with the findings of Erdem et al. (2010). This result
was not expected in the present study, as families in Saudi Arabia tend to be larger than the
typical European or North American family. Such a finding might be explained by pre-
suming that if purchasing a vehicle is based on a need for space, all other factors that might
have been considered under other circumstances would not be as important. In other words,
passenger capacity would be the most important (if not the only) factor in determining the
next purchase intention. Alternatively, the need for space may be driven not only by
household size, but also by societal perceptions of the benefits of owning a larger vehicle.
The analysis did find that the interaction between age and household size was significant.
Younger Saudis who were members of small households had a stronger intention to adopt
HEVs than those from larger households. Many of these young people might have been
married for only a few years and would thus be more conscious of their spending than older
people, due to their more limited income (since younger persons generally have less job
experience and possibly less education, both of which would lead to lower household
income). On the other hand, younger Saudis who reported being members of larger house-
holds would usually be adult dependents (as the minimum age for participation in this study
was 18) rather than household heads. Generally, the parents of these adults are the ones paying
to put fuel in their vehicle. In Saudi culture, children live with their families, even after
attaining adulthood, until they either get married or find a job in another city.
On the other hand, older people in smaller households had a lesser intention to adopt
HEVs than those in larger households. This result could be attributed to the development of
greater financial burdens and thus greater cost-consciousness as one’s household size
increases. Furthermore, larger households would likely do more driving, which might
contribute to greater fuel sensitivity. Older people in smaller households are probably
retired or near retirement, more stable financially and less frequent drivers; these factors
might cause them to be less motivated by fuel cost advantages.
Finally, education level was found to be statistically significant, but negatively. As the
education level increased, intention to adopt HEVs decreased. This unexpected result could
be interpreted in various ways, but we tend to think that, at a national level, Saudi education
places relatively little importance on protecting the environment. Moreover, education level
is associated with greater income, which would tend to decrease fuel sensitivity, and with
more sophisticated vehicle preferences (e.g., regarding performance) that might militate
against HEV selection. It follows from these observations that educational institutes should
exercise more effort to include courses on the environment in their curricula.

Limitations and future research

This study has both general and specific limitations. One general limitation pertains to the
theory of reasoned action, upon which the analysis was based. This theory sometimes faces
criticism when there is a distinction between an ultimate goal intention (e.g., reducing fuel

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consumption) and a behavioral intention (e.g., buying an HEV), which the theory of
reasoned action fails to accommodate. Even if HEVs should become the dominant vehicle
technology, this may not necessarily translate to a lower level of fuel consumption for all
vehicle drivers. Some people might instead drive more miles after purchasing an HEV
because their vehicle is now more economical on a per-mile basis.
Another general limitation stems from the research method. Since this study relied on a
self-administered online questionnaire, the caveat of social desirability bias should be
considered when utilizing the results.
With regard to the specific study parameters, although we believe that the sample was
sufficient for conducting various statistical analyses, a more random sample could have
contributed to stronger generalizability. Furthermore, the construct of environmental
concern should be addressed with more data and analysis, as its validity in the model was
marginal. Finally, further studies on how the constructs function in Saudi Arabia’s unique
social context will be needed, in view of the paucity of research on Saudi consumers’
behavior.

Acknowledgements We would like to thank all the participants who completed and/or assisted in dis-
seminating the survey. We also thank the editor and the anonymous reviewers for their comments and
suggestions that have greatly helped to improve the quality of this paper.

Appendix: TRA survey items

Attitude toward adopting an HEV

A_1. For me, adopting an HEV is unfavorable (1)/favorable (5).

A_2. For me, adopting an HEV is undesirable (1)/desirable (5).
A_3. For me, adopting an HEV is unpleasant (1)/pleasant (5).
A_4. For me, adopting an HEV is negative (1)/positive (5).

Subjective norms

SN_1. Most people who are important to me think I should adopt a HEV when adopting
a vehicle in the near future.
SN_2. When considering adopting a HEV, I wish to do what people who are important
to me want me to do.
SN_3. If I buy a HEV, then most people who are important to me would also buy a HEV.
SN_4. People whose opinions I value would prefer that I adopt a HEV when adopting a
vehicle in the near future.

Intention to adopt a HEV

AHEVI_1. I am willing to adopt a HEV when adopting a vehicle in the near future.
AHEVI_2. I intend to adopt a HEV when adopting a vehicle in the near future.
AHEVI_3. I plan to adopt a HEV when adopting a vehicle in the near future.

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Environmental concern

EC_1. I think environmental problems are becoming more and more serious in recent
years.
EC_2. I think human beings should live in harmony with nature in order to achieve
sustainable development.
EC_3. I think we are not doing enough to save scarce natural resource from being used
up.
EC_4. I think individuals have the responsibility to protect the environment.
Note All survey items are adapted from Wang et al. (2014). Italics items were omitted
during the analysis. Items on subjective norms, intention to adopt an HEV and
environmental concern were measured using 5-point Likert-type scales (1 = strongly
disagree, 5 = strongly agree).

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Khalid Alzahrani is an Assistant Professor at the mechanical engineering department at Albaha University,
Saudi Arabia. He has previous experience in oil and gas and management consulting. He hold a PhD and MS
in manufacturing engineering, and MBA from Worcester Polytechnic Institute and a BS in industrial
systems engineering & operations research from King Fahd University of Petroleum and Minerals, Saudi
Arabia.

Adrienne Hall-Phillips is an Associate Professor at the Foisie Business School, Worcester Polytechnic
Institute, Massachusetts, USA. Her research interests are: consumer behavior, consumers & technology and
marketing & entrepreneurship. She holds a PhD and MS in Consumer Behavior from Purdue University, and
a BS in Chemical Engineering from North Carolina A&T State University.

Amy Z. Zeng is a Professor and the assistant dean of Foisie Business School at Worcester Polytechnic
Institute, Massachusetts, USA. Besides New Energy Vehicles, she has been working on two areas at the
forefront of today’s supply chain management—disruption management and global aspect. In the former,
she focuses on supply-base management and tactics under disruption risks. In the latter, her interest
concentrates on global supply chain design and analysis for industries such as agriculture, aviation, retail,
and third-party logistics providers. She holds a PhD in business from Pennsylvania State University, A MS
in industrial engineering from University of Washington and BE in industrial engineering from Beijing
University of Aeronautics and Astronautics.

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