Research Paper Analysis on "Who will adopt electric vehicles?

Segmenting
and exemplifying potential buyer heterogeneity and forthcoming research"

Introduction

The paper "Who will adopt electric vehicles? Segmenting and exemplifying
potential buyer heterogeneity and forthcoming research" by Deepak Jaiswal,
Arun Kumar Deshmukh, and Park Thaichon was published in the Journal
of Retailing and Consumer Services in 2022. The study explored the factors
that influence the adoption of electric vehicles among young consumers.

This presentation explores the rising adoption of electric vehicles (EVs) for
sustainable transportation and reduced emissions. It emphasizes
understanding the diverse factors driving EV adoption across consumer
groups. Highlighting EV benefits like energy efficiency, the presentation
dissects the market, identifies segments, and analyses psychographic,
behavioural, and socio-economic influences on adoption.

Comparing global EV trends with slower Indian progress, it examines

psychological theories guiding consumer behaviour. Using the "perceived
benefits-attitude-intention" framework, the presentation unveils distinct
buyer segments, focusing on influential young and educated consumers.

Cluster analysis, discriminant analysis, and socio-economic profiling provide

insights for policymakers and stakeholders. This data-driven approach helps
formulate strategies for faster EV adoption. Covering theory, methods,
findings, and recommendations, the presentation aims to illuminate EV
adoption dynamics and the role of key consumer segments.

Central Theme

The main theme of the content is centered around the segmentation of the
electric vehicle (EV) market and the theoretical framework used to
understand consumer preferences and behaviours when adopting EVs. It
discusses how market segmentation involves categorizing potential EV
customers into distinct groups based on various characteristics. The focus
is on using a pre-defined approach, blending psychographic and socio-
economic attributes.

The content emphasizes the significance of combining psychographic and

socio-economic factors to tailor marketing strategies for specific consumer
groups. It cites studies that support this approach, demonstrating how
factors like environmental self-image and perceived benefits impact
consumer behaviour in the EV market.

Learnings

 Segmentation based on Psychography, Behavioural,

 Socio-Economic, Demographic.
 The target market for Electrical Vehicles
 External and Internal Business environment.
 Market presence of the Electrical Vehicle Sector.
 Growth and growth potential in the Electric Vehicle Market Sector
 Role of Government in formulating policies and promoting the
adoption of Electrical Vehicles

INFLUENCING FACTORS

 Age
 Price of Electric Vehicles
 Income
 Social and Peer Pressure
 Ease of Use

ANALYSIS OF THE BUSINESS ENVIRONMENT OF ELECTRIC MOBILITY IN

INDIA

Internal Environment

Value System

 Innovation to enhance energy efficiency

 Reduction in the emission of greenhouse gas
 To convince people to switch to zero or low emissions vehicles to
counter climate change

Strategic Intent

 Targeting the young educated audience (GenZ and Millennials as they

are prospective EV buyers)
 Creating awareness in people of all age groups as vehicle purchasing
is a household decision

External Environment

PESTLE ANALYSIS

Political
  Government launched BS6 to reduce carbon emissions
 World Nations aiming to attain sustainable development goals
 Decision by Delhi Government to replace gasoline-based government
vehicles to electric vehicles.

Economic

 Electric car sales accounted for 2.6% of the worldwide automobile

sales with YOY increase of 40%
 FAME Policy for faster adoption of electric vehicles targeted at
educated youth section of the society

Social

 Majority of the consumers and potential consumers fall under the

demographic
 Peer persuasion to adopt EVs

Technological

 The launch of BS6 engine

 Development of high-performance batteries to make EV more efficient

Environmental

 Positive impact on the environment through the reduction of the emission of

greenhouse gases

Legal

 FAME Subsidy
 Tax Rebates

Conclusion

In this research, comprehensive methods were employed to explore electric

vehicle

(EV) buyer segmentation. Delving into the extensive literature, a conceptual

model was framed that aligned with electric vehicle market segmentation
theories, particularly the Theory of Reasoned Action (TRA) and the
Technology Acceptance Model (TAM). Data collection and research measures
further strengthened the foundation. Advanced statistical techniques like
confirmatory factor analysis, cluster analysis, multiple discriminant
analysis, and the Chi-square test were applied, revealing three unique EV
buyer segments: 'Conservatives,' 'Indifferents,' and 'Enthusiasts'. In the
Indian context, these findings not only corroborate with few existing studies
on EV adoption but also contribute novel insights into sustainable mobility's
future.

The study successfully bridges the understanding of perceived benefits,

attitude, and intention, offering valuable direction to marketing experts and
policymakers. By accentuating the importance of energy-efficient vehicles in
reducing CO2 emissions,

it aligns with global sustainability goals, reinforcing the move towards a

cleaner future.