ST3188 Coursework Final Submission

REPORT ON MARKET RESEARCH
PROPOSAL FOR TESLA
Prepared for:
University of London
Tesla, Inc. (Tesla)
UOL Student Number:
In partial fulfilment of the requirements for the module:

Statistical Methods for Market Research [ST3188]
Submission Date: 1 March 2023
Word Count*: 3000/3000

*(excluding Table of Contents, Executive Summary, Footnotes, Labels, Figures, Equations, & Questionnaire)
Report on Market Research Proposal for Tesla | NIL
Table of Contents
1. Executive Summary ...................................................................................................................... 2
2. Introduction .................................................................................................................................. 3
2.1 Background ............................................................................................................................. 3
2.2 Problem Definition.................................................................................................................. 3
2.3 Research Aims (RA) ................................................................................................................. 3
2.4 Research Questions & Hypothesis (RQ & RH) ........................................................................ 4
2.5 Addressing Tesla’s Business Objectives Through Market Research ...................................... 5
3. Research Design............................................................................................................................ 6
4. Fieldwork & Data Collection ......................................................................................................... 8
4.1 Sampling Methodology ........................................................................................................... 8
4.2 Proposed Sample Size ............................................................................................................. 9
5. Proposed Data Analysis Methods ............................................................................................... 11
5.1 RQ1.1 & RQ1.2 | Multiple Linear Regression (MLR) ............................................................. 11
5.2 RQ1.3 | Two-Way ANOVA ..................................................................................................... 12
5.3 RQ2.1 & RQ2.2 | Cluster Analysis ......................................................................................... 13
5.4 RQ3.1 | Factor Analysis ......................................................................................................... 14
6. Questionnaire ............................................................................................................................. 16
6.1 Questionnaire Flow Chart ..................................................................................................... 16
6.2 Online Questionnaire ............................................................................................................ 17
7. Schedule & Costing ..................................................................................................................... 24
7.1 Project Schedule (Gantt Chart) ............................................................................................. 24
7.2 Estimated Costs (Cost Chart) ................................................................................................ 24
8. Recommendations for Further Research.................................................................................... 25
8.1 Motorists Considerations Towards Non-Electric Vehicles.................................................... 25
8.2 Discover Tesla’s Brand Positioning Among its Competitors ................................................. 25
9. References .................................................................................................................................. 26
10. Technical Appendix..................................................................................................................... 27
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1. Executive Summary
Our market research agency’s purpose is to aid Tesla in achieving its business objectives
through fulfilling the research aims outlined within Tesla’s research brief. Tesla’s business objectives
includes the acceleration of motorists’ transition to electric vehicles to accrue market share through
understanding motorists’ attitudes towards electric vehicles, discovering the major brand perceptions
of Tesla so as to enhance customer acquisition and retention, and to explore new product lines and
evolving trends within the sustainable energy landscape so as to diversify its existing product range
further and provide direction for its research and development (R&D) budget.
Prior to performing data analysis, exploratory research will be conducted via focus groups
alongside literature review to elicit responses and information necessary for subsequent descriptive
research. Descriptive research would involve the use of an online questionnaire to collect primary data
required for conclusive data analysis to be performed. Additionally, relevant secondary data involving
demographic and geographic information of potential survey respondents would be collected via
Tesla’s customer database and external access panel’s customer database.
Sample size is determined using statistical formulae with appropriate assumptions made from
literature review. After a sampling frame of Tesla and non-Tesla motorists has been established,
proportionate stratification sampling is used as the probability sampling method to derive an
appropriately segmented sample. Descriptive research is performed via an online questionnaire sent
to members of the abovementioned sample.
Multivariate statistical techniques are performed on the primary data collected from the
online questionnaire to derive results that answer research questions based on research aims outlined
within Tesla’s client brief. Multiple linear regression analysis will be used to derive significant
considerations of motorists in buying electric vehicles along with the impact of each significant
consideration on the maximum willingness of motorists to pay for electric vehicles. Two-way ANOVA
will be used to identify if there are significant differences in motorists’ attitudes towards electric
vehicles across Gender and Region of Residence. Cluster analysis would be used to identify the major
brand perceptions of Tesla along with the profile of motorists in each of the major brand perception
clusters. Finally, factor analysis would be used to discover the major futuristic unmet needs on
products and services related to sustainable energy.
A Gantt chart and Cost chart have been provided to project the timeframe for the project to
be completed coupled with the estimated costs associated with the project. Recommendations for
further research have been provided to research on motorist’s considerations towards non-electric
vehicles, and the discovery of Tesla’s brand positioning among its competitors, both of which are
suggested to holistically achieve Tesla’s business objectives.
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2. Introduction
2.1 Background
Tesla was founded in 2003, with over 100,000 employees globally, and a
mission to “accelerate the world’s transition to sustainable energy” (Tesla, 2022). Tesla
aims to achieve its mission through various initiatives such as alternative clean energy
sources to power residential and commercial properties, and implementation of
various types of electric vehicles to the market to transform current unsustainable fuel
usage for transportation, among many others. Facing many competitors such as Ford,
Rivian, and Mercedes-Benz in the electric vehicle space, Tesla aims to gain market
share in the automobile industry. Tesla is equally concerned with retaining current
market share and preventing loss of customers to competitors. In the long run, Tesla’s
efforts are to continue innovating and diversifying its current line of products to be
competitive in the sustainable energy landscape.
2.2 Problem Definition

Having established the aims of Tesla, we discuss the problems that Tesla faces.
As part of its efforts in accruing market share in the automobile industry, Tesla wants
to understand motorists’ attitudes towards electric cars to better serve its market’s
needs compared to its competitors. To continue acquiring and retaining customers,
Tesla wants to understand the brand perceptions among motorists of different
automobile manufacturers and better differentiate itself from its competitors. Tesla
also wants to focus on problem identification research to discover futuristic desires
and evolving trends of its market related to sustainable energy which would allow it
to continue innovating and diversifying its current line of products in the sustainable
energy landscape. Having recognised these problems, we are confident in aiding
Tesla’s mission in accelerating the world’s transition to sustainable energy through this
proposal.
2.3 Research Aims (RA)

From the client brief provided, we have identified three research aims that the client
expects the research to achieve:
• RA1: Research on motorists’ considerations for buying electric vehicles.

• RA2: Research on motorists’ brand perceptions of Tesla.
• RA3: Research on motorists’ futuristic desires on products and services
related to sustainable energy.
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2.4 Research Questions & Hypothesis (RQ & RH)

For RA1, the research questions are:
• RQ1.1: What are the significant considerations of motorists in purchasing

electric cars?
For RQ1.1, the research hypothesis is:
o RH1.1: The significant considerations of motorists in purchasing
electric cars are travel range per charge, availability of charging
points (Long, 2012), safety features, & fuel economy (Knez, 2014).
• RQ1.2: How much is the impact of the significant considerations on the
estimated mean maximum willingness of motorists to pay for electric cars?

o RH1.2: E.g. For each one-point increase in safety features, the
estimated mean maximum willingness of motorists to pay for
electric cars increases by US$1500 while other factors remain
constant.1
• RQ1.3: Are there any significant differences in motorists’ maximum
willingness to pay for electric vehicles across demographical groups?
o RH1.3: There are significant differences in the population mean
maximum willingness to pay across demographical variables such
as Gender and Region of Residence.
• RQ2.1: What are the major brand perceptions of Tesla?
o RH2.1: The major brand perceptions of Tesla are “Environment’s

Shield”, “Contemporary Luxury”, and “Technological
Revolutionary”.
• RQ2.2: What is the profile of motorists for each major brand perception
cluster?
1
These results can be expected for the other significant considerations as well.
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o RH2.2: E.g. “Contemporary Luxury” cluster is comprised of

motorists who are largely part of the high-income bracket, have
high education level, are middle-aged, and are located mainly in
Europe and United States.2

• RQ3.1: What are the major futuristic unmet needs of motorists on products
and services that are related to sustainable energy?
For RH3.1, the research hypothesis is:
o RH3.1: The major futuristic unmet needs on products and
services related to sustainable energy are “Environmental
Efforts”, “New ways to travel”, and “Technological Leaps”.
2.5 Addressing Tesla’s Business Objectives Through Market Research

Knowledge regarding significant considerations of motorists (RH1.1) and their
relative importance (RH1.2) in purchasing electric cars would allow Tesla to identify
important features of its electric vehicles that influences consumers’ attitudes towards
its products. This would allow Tesla to work on features according to their level of
influence on consumers’ attitudes. As pricing serves as an important part of any
product proposition, identifying differences in the willingness of consumers to pay for
electric vehicles across various demographic groups (RH1.3) would allow Tesla to price
its vehicles appropriately according to their consumer segments. Combining Tesla’s
understanding on pricing and product feature’s influence on consumers’ attitudes
would allow Tesla to better serve its market and accrue greater market share.
Awareness of major brand perceptions towards one’s brand (RH2.1) would

allow Tesla to react towards those perceptions favourably. Profiling those perceptions
(RH2.2) gives Tesla the ability to segment its markets according to those brand
perceptions. Armed with the knowledge of major brand perceptions and its profiles,
Tesla can work on developing advertisements and marketing campaigns that resonate
with each of its segments. Through targeting each consumer segment with convincing
marketing material, Tesla is able to build conviction in the market towards its brand,
facilitating customer acquisition and retention.
2
These results can be expected for the other major brand perception clusters as well.
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Discovering future needs of consumers on products and services based on

sustainable energy (RH3.1) enables Tesla to venture into new product lines and
respond to evolving trends in the market while keeping true to its core mission. This
allows Tesla to diversify its existing product range while maintaining the interest and
conviction of its existing customers.
3. Research Design
Exploratory research will initially be performed via online focus group sessions to elicit
responses regarding common brand attributes and common futuristic desires which are
unavailable to us in part or whole through literature reviews. These common attributes and
futuristic desires serve as variables to derive major brand perceptions and major futuristic
needs in RQ2.1 and RQ3.1 respectively through descriptive research using multivariate
statistical techniques. The list of common considerations for purchasing electric vehicles has
been derived via literature review3. This list of common considerations will be used as
independent variables to derive significant considerations in buying electric vehicles in RQ1.1.
Figure 1: Demographic & Geographic questions in Questionnaire
Demographic and geographic data of Tesla and non-Tesla customers would be

supplied by Tesla’s customers database and external access panel customer databases
respectively. Updated demographic data can also be collected via the online questionnaire
(Figure 1). This data will assist in determining the profile of motorists for each major brand
perception and identifying if there are significant differences in motorists’ maximum
willingness to pay for electric vehicles across various demographical groups in RQ1.3.
3
The literature review are based on (Vibhor Tiwari, 2020) & (Jonn Axsen, 2013).
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Figure 2: Example of Questionnaire Questions on Common Considerations (Likert Scale)
Figure 3: Example of Questionnaire Questions on Common Brand Attributes (Semantic Differential)
Figure 4: Example of Questionnaire Questions on Common Futuristic Desires related to Sustainable Energy (Likert Scale)
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The online questionnaire will be used to collect responses on the motorists’ ratings of
common considerations for buying electric vehicles (Figure 2), common brand attributes of
Tesla (Figure 3), and common futuristic products or services related to sustainable energy
(Figure 4). These common variables will be created via online focus group sessions and
literature review4.
Online focus groups will be conducted as opposed to projective techniques as there is

a need to uncover information regarding considerations, brand attributes, and futuristic
desires that we are unaware about. The nature of online focus groups allows participants to
express their views freely in an environment they are comfortable in. The cost of online focus
groups are much lower than that of projective techniques as participants can take part while
physically being anywhere through the internet. We propose conducting six online focus
groups (Greg Guest, 2016) with 10 participants each (CCSU, 2008) that would be guided via a
topic guide and involve the use of mood boards and probing questions.
Online questionnaire will be conducted instead of quantitative observation techniques

and other survey techniques due to the greater speed of data collection, lower cost, higher
quality of response, and the ability to contact certain target groups and pose questions
depending on whether they are Tesla motorists or not.
4. Fieldwork & Data Collection

4.1 Sampling Methodology
The target population for the online questionnaire are motorists who are defined as
those who currently own a vehicle. The sampling frame is a list of all Tesla and non-Tesla
motorists whose email addresses are provided through Tesla’s customer database and
external access panel customer databases respectively.
Probability sampling methods would be preferred as the sampling scheme since the
sampling frame is easily obtained and the research design is conclusive in nature.
Proportionate stratified sampling using ‘type of vehicle owned’5 as the strata would
be used to sample a proportionate number of Tesla and non-Tesla motorists from the sampling
frame according to the nature of vehicle owned by motorists. This sampling method is easy to
implement due to information available in customer databases which allows us to obtain an
appropriately segmented sample size that is not achievable through other sampling methods.
4
The literature review are based on (Katarina Janoskova, 2021) & (Consumer Reports, 2012).
5
We can reasonably expect motorists who own a family sedan to have very different characteristics
compared to motorists who own a luxurious supercar.
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Judgemental sampling would be ideal for the selection of focus group participants due
to the low costs and time associated with sampling, and the ability to achieve a highly
representative sample of motorists.
4.2 Proposed Sample Size

We propose constructing a confidence interval around the mean maximum
willingness of motorists to pay for electric cars to understand motorists’ attitude
towards pricing of electric vehicles. The sample size for the abovementioned
confidence interval is derived below:
For a 100(1-α)% confidence interval, we have:

𝜎
𝑍𝛼 × ≤𝑒
2 √𝑛
2
(𝑍𝛼 ) × 𝜎 2
2
𝑛 ≥ 𝑒2
where we propose a significance level of α = 0.05 to ensure a 95% confidence level

resulting in an approximate value of 𝑍𝛼 = 1.96, a precision level of e = US$400, and a
2
population standard deviation of 𝜎 = US$2050 based on literature review (Larson,

2014). Substituting the values, we get a total sample size value of n = 100.9 ≈ 101.
We propose constructing a confidence interval around the percentage of

motorists with a specific brand perception on Tesla to identify the size of each segment
with a particular brand perception. This would allow Tesla to budget its marketing
efforts according to the size of the market with that specific brand perception. The
sample size for the abovementioned confidence interval is derived below:
For a 100(1-α)% confidence interval, we have:
𝜋(1−𝜋)
𝑍𝛼 × √ 𝑛
≤𝑒
2
2
(𝑍𝛼 ) 𝜋(1−𝜋)
2
𝑛 ≥ 𝑒2
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where we propose a significance level of α = 0.05 resulting in 𝑍𝛼 = 1.96 , a precision

2
level of e = 0.05 (which translates to estimated population proportion being within a

range of 5%), and a conservative value of 𝜋 = 0.5 which results in the largest possible
sample size n value. Substituting the values, we get a total sample size value of n =
384.15 ≈ 385.
Since the sample size values proposed fall below the minimum suggested
sample size of 5000 for Tesla customers, given the market share of Tesla passenger
vehicles in 2022 being 2.1% in quarter 2 of 2022 (Teslike, 2022), the percentage of
motorists being 17.7% in 2022 (Insurance, 2022), and the average response rate for
online questionnaires being 10-15% (Cleave, 2020), we can calculate suitable sample
sizes for Tesla and non-Tesla motorists as such:
Noting that we require a final sample size of 5000 Tesla motorists who
completed the survey, according to the market share of Tesla, the final sample size
would be:
𝐹𝑖𝑛𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 𝑜𝑓 𝑇𝑒𝑠𝑙𝑎 𝑀𝑜𝑡𝑜𝑟𝑖𝑠𝑡𝑠 5000

𝐹𝑖𝑛𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 = = ≈ 238096
𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑜𝑓 𝑇𝑒𝑠𝑙𝑎 𝑀𝑎𝑟𝑘𝑒𝑡 𝑆ℎ𝑎𝑟𝑒 0.021
Note that 2.1% of this final sample size will be the 5000 Tesla motorists while
the remaining 97.9% of the Tesla motorists will be the 233096 non-Tesla motorists.
Given these final sample size values, we calculate the initial sample sizes:
𝐹𝑖𝑛𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 5000

𝑇𝑒𝑠𝑙𝑎 𝑚𝑜𝑡𝑜𝑟𝑖𝑠𝑡 𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 = = = 50000
𝐼𝑛𝑐𝑖𝑑𝑒𝑛𝑐𝑒 𝑅𝑎𝑡𝑒 × 𝐶𝑜𝑚𝑝𝑙𝑒𝑡𝑖𝑜𝑛 𝑅𝑎𝑡𝑒 1 × 0.1
𝐹𝑖𝑛𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒
𝑁𝑜𝑛 − 𝑇𝑒𝑠𝑙𝑎 𝑚𝑜𝑡𝑜𝑟𝑖𝑠𝑡 𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 = (𝑃𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛 𝑜𝑓 𝑀𝑜𝑡𝑜𝑟𝑖𝑠𝑡𝑠) × 𝐶𝑜𝑚𝑝𝑙𝑒𝑡𝑖𝑜𝑛 𝑅𝑎𝑡𝑒
233096
=
0.177 × 0.1
≈ 13169266 (𝑟𝑜𝑢𝑛𝑑𝑒𝑑 𝑢𝑝)
Thus, in total 13174266 emails containing links to the online questionnaire

would have to be sent as part of the research proposal, 50000 of which addressed to
Tesla motorists and the remaining 13169266 addressing to non-Tesla motorists.
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5. Proposed Data Analysis Methods

5.1 RQ1.1 & RQ1.2 | Multiple Linear Regression (MLR)
We suggest using MLR for addressing RQ1.16 and RQ1.27. Common
considerations within the questionnaire will be used as independent variables in the
MLR equation as shown below:
̂
𝑀𝑎𝑥𝑖𝑚𝑢𝑚 𝑊𝑖𝑙𝑙𝑖𝑛𝑔𝑛𝑒𝑠𝑠 𝑡𝑜 𝑃𝑎𝑦
= 𝛽0 + 𝛽1 (𝐶𝑜𝑚𝑓𝑜𝑟𝑡) + 𝛽2 (𝑇𝑟𝑎𝑣𝑒𝑙 𝑅𝑎𝑛𝑔𝑒 𝑃𝑒𝑟 𝐶ℎ𝑎𝑟𝑔𝑒) + 𝛽3 (𝑇𝑖𝑚𝑒 𝑡𝑜 𝐶ℎ𝑎𝑟𝑔𝑒)
+ 𝛽4 (𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑖𝑙𝑖𝑡𝑦 𝑜𝑓 𝐶ℎ𝑎𝑟𝑔𝑖𝑛𝑔 𝑃𝑜𝑖𝑛𝑡𝑠) + 𝛽5 (𝐸𝑛𝑣𝑖𝑟𝑜𝑛𝑚𝑒𝑛𝑡𝑎𝑙 𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒)
+ 𝛽6 (𝐷𝑢𝑟𝑎𝑏𝑖𝑙𝑖𝑡𝑦) + 𝛽7 (𝑆𝑎𝑓𝑒𝑡𝑦 𝐹𝑒𝑎𝑡𝑢𝑟𝑒𝑠) + 𝛽8 (𝐹𝑢𝑒𝑙 𝐸𝑐𝑜𝑛𝑜𝑚𝑦)
+ 𝛽9 (𝑀𝑎𝑖𝑛𝑡𝑒𝑛𝑎𝑛𝑐𝑒) + 𝛽10 (𝑆𝑡𝑜𝑟𝑎𝑔𝑒 𝐿𝑖𝑚𝑖𝑡𝑠)
The coefficient of determination, 𝑅 2, is derived to observe how much of the

variation in maximum willingness to pay is explained by the variation in common
considerations. An overall F test is performed to test the statistical significance of the
model at 𝛼 = 0.05, indicating if it would be meaningful to conduct a MLR analysis to
predict maximum willingness to pay using common considerations.
Figure 5: Coefficients Table
An individual t test is performed to test the significance of the coefficients (𝛽𝑖 ).

If the t test of an independent variable is not significant (indicated by p-value>0.05),
the variable with the highest p-value is removed and the regression analysis is rerun.
6
What are the significant considerations of customers in purchasing electric cars?
7
How much is the impact of each of the significant considerations on the estimated mean maximum
willingness of motorists to pay for electric cars?
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This is performed until only significant independent variables remain. Remaining

significant variables are considered to be significant considerations of motorists in
purchasing electric cars which addresses RQ1.1.
The coefficient of the significant variables found within the ‘Unstandardized

B’ column informs us on the influence of each significant consideration on the
estimated mean maximum willingness of motorists to pay for electric cars which
addresses RQ1.2.
5.2 RQ1.3 | Two-Way ANOVA

For RQ1.38, we suggest using 2-Way ANOVA using SPSS which creates the
ANOVA table as shown in Figure 7.
X 1. Gender
2. Region of Residence9
Y Motorists’ maximum willingness to pay for electric vehicles.
Figure 6: Hypothesis tests performed within two-way ANOVA.
Figure 7: Test of Between-Subjects Effects Table
8
Are there any significant differences in motorists’ maximum willingness to pay for electric vehicles
across demographical groups?
9
Region of Residence includes North America/Central America, South America, Africa, Asia, Australia,
Carribean Islands, and Pacific Islands as presented within the questionnaire (7 categories).
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If the p-value for Gender and Region of Residence is <0.05, we reject H0 and
conclude that there are significant differences in the population mean maximum
willingness to pay for electric vehicles among categories of Region of Residence and
Gender respectively which addresses RQ1.3.
5.3 RQ2.1 & RQ2.2 | Cluster Analysis

We propose using cluster analysis for addressing RQ2.110 and RQ2.211.
Common brand attributes of Tesla within the online questionnaire will be used as
variables in the cluster model. Our objective is to cluster motorists based on brand
attitudes towards Tesla to derive major brand perceptions of Tesla.
Hierarchical clustering will be performed using Ward’s procedure. This

variance method generates clusters to minimise within-cluster variance,
corresponding to minimum loss of information when combining clusters. SPSS reports
consisting of the agglomeration schedule, icicle plot, and dendrogram would be
produced to indicate the number of clusters (i.e. major brand perceptions of Tesla).
Assuming we have a consistent indication of three major brand perceptions

throughout all SPSS reports, we are then able to interpret the clusters using Ward’s
Method Table (Figure 8).
Figure 8: Example of Ward's Method Table for RQ2.1 & RQ2.2
Using the output from Ward’s Method Table, we are able to identify brand
attributes that are highly varied between the three major brand perceptions which
allows us to profile the clusters based on those brand attributes. For example, if cluster
one scores highly on multiple brand attributes (on semantic differential scale) relative
to other clusters, indicating motorists’ perception towards Tesla being prestigious,
10
What are the major brand perceptions of Tesla?
11
What is the profile of motorists for each major brand perception cluster?
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premium, and stylish as a brand, we could profile cluster one to be termed as

“Contemporary Luxury”. Such profiling can be performed on other clusters to derive
the major brand perceptions towards Tesla which addresses RQ2.1.
The cluster membership table can be used to identify the assignment of

motorists to each major brand perception. Given our access to demographic and
geographic information of motorists surveyed, we can profile the major brand
perceptions of Tesla in terms of variables which were not used for clustering. For
example, we may profile the “Contemporary Luxury” cluster to be comprised of
motorists who are largely part of the high-income bracket, have high education level,
are middle-aged, and are located primarily in Europe and United States. Such profiling
can be performed on the other perceptions as well which addresses RQ2.2.
5.4 RQ3.1 | Factor Analysis

We suggest using factor analysis to address RQ3.112. Common futuristic needs
within the questionnaire will be used as variables in the factor model. Major futuristic
needs are determined via SPSS using the eigenvalue, cumulative variance explained,
and Scree Plot criteria as shown in the ‘Total Variance Explained’ and Scree Plot below:
Figure 9: Total Variance Explained Table
SPSS uses the criterion of eigenvalues > 1 within the ‘Total’ column of the
‘Initial Eigenvalues’ subtable (Figure 9) to retain factors that are associated with a
greater amount of variance than a single variable (common futuristic needs).
Additionally, we aim for the cumulative percentage of variation explained by the
factors retained to be > 60%.
12
What are the major futuristic unmet needs on products and services that are related to sustainable
energy?
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Figure 10: Example of Scree Plot
The Scree Plot is used to determine the true number of factors which occur
before the scree. From the example above in Figure 10, we observe that the elbow
was formed after the third component. Assuming similar conclusions on the number
of factors from the three abovementioned criteria, we could conclude that there are
three major futuristic unmet needs uncovered through factor analysis.
The ‘Rotated Component Matrix’ table generated from SPSS would provide
insights on the common futuristic needs that have high correlations with the major
futuristic needs discovered. An example of the output has been provided below:
Figure 11: Example of Expected Output in Rotated Component Matrix Table
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For example, from the output above we can deduce that the common needs
of ‘New clean fuels’, ‘Vehicle scrapping and recycling’, ‘Compact and more energy
efficient batteries’, and ‘accessible solar energy’ are highly correlated with component
1. Thus we could appropriately name component 1 (major futuristic need) as
“Environmental Efforts”. Similarly, the common needs which are highly correlated
with components 2 and 3 can be named as “New ways to travel” and “Technological
leaps” respectively. Discovering these major futuristic needs using factor analysis
addresses RQ3.1.
6. Questionnaire
6.1 Questionnaire Flow Chart
Figure 12: Flowchart of Online Questionnaire
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6.2 Online Questionnaire
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7. Schedule & Costing

7.1 Project Schedule (Gantt Chart)
Figure 13: Gantt Chart – Project Schedule for Market Research (5 Months Period)
7.2 Estimated Costs (Cost Chart)
Figure 14: Costing Table (Left) & Pie Chart (Right) – Estimating Costs for Market Research
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8. Recommendations for Further Research

8.1 Motorists Considerations Towards Non-Electric Vehicles
Having understood motorists’ attitudes towards electric vehicles, we recommend
further research on motorists’ attitudes towards vehicles using non-renewable sources of fuel.
Through uncovering motorists’ considerations towards non-electric vehicles, Tesla would be
able to incorporate relevant considerations into its electric vehicles to position itself as a better
overall value proposition against vehicles that use non-renewable sources of fuel.
Consequently, consumers would transition from non-electric to electric vehicles, allowing
Tesla to accrue greater market share.
8.2 Discover Tesla’s Brand Positioning Among its Competitors

After discovering the major brand perceptions of motorists towards Tesla, we propose
further research on Tesla’s brand positioning relative to its competitors. Multidimensional
scaling could be used to create a spatial map that evaluates Tesla and its competitors according
to key brand attributes or characteristics that represent the axis on the spatial map. The same
group of motorists could be asked to rate competitor brands using the same set of brand
attribute-based questions on a semantic differential scale. The motorists’ ideal preference
could then be placed as a point on the spatial map. By clustering motorists with similar spatial
maps, Tesla could discover the key brand positionings of its brand within the market. Through
profiling the clusters using demographic and geographic variables, Tesla could discover
markets that have not been captured by its competitors. This would aid Tesla in customer
acquisition.
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9. References
CCSU. (2008). Office of Institutional Research and Assessment Central Connecticut State
University. Retrieved from Helpful Hints for Conducting a Focus Group:
https://www.ccsu.edu/oira/assessment/files/FocusGroupsHints.pdf
Cleave, P. (3 December, 2020). What is a Good Survey Response Rate? Retrieved from
SmartSurvey: https://www.smartsurvey.co.uk/blog/what-is-a-good-survey-response-
rate#:~:text=It's%20also%20important%20to%20note,surveys%20at%2010%2D15%25.
Consumer Reports. (January, 2012). Retrieved from Consumers See Fewer Differences among
Car Brands: https://www.consumerreports.org/cro/2012/01/consumers-see-fewer-
differences-among-car-brands/index.htm
Greg Guest, E. N. (2016). How Many Focus Groups Are Enough? Building an Evidence Base
for Nonprobability Sample Sizes. Field Methods.
Insurance, P. (22 April, 2022). How Many Cars Are There in the World. Retrieved from
pd.com.au: https://www.pd.com.au/blogs/how-many-cars-in-the-world/
Jonn Axsen, C. O. (2013). Social influence and consumer preference formation for pro-
environmental technology: The case of a U.K. workplace electric-vehicle study. Ecological
Economics.
Katarina Janoskova, P. K. (2021). Perception of car brands with an emphasis on expected

benefits and features as prerequisites for customer satisfaction.
Knez, J. &. (2014). Factors influencing the purchasing decisions of low emission cars: A study
of Slovenia. Transportation Research Part D: Transport and Environment.
Larson, V. P. (2014). Consumer attitudes about electric cars: Pricing analysis and policy
implications. Transportation Research Part A: Policy and Practice.
Long, E. &. (2012). Barriers to widespread adoption of electric vehicles: An analysis of

consumer attitudes and perceptions. Energy Policy.
Tesla. (2022). Retrieved from

https://www.tesla.com/en_sg/impact#:~:text=Exiting%20the%20Fossil%20Fuel%20Era&text
=Our%20mission%20is%20to%20accelerate,right%20thing%20along%20the%20way.
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Teslike, T. (28 September, 2022). Tesla's Share of Auto Market is Now ~2%. Retrieved from
CleanTechnica: https://cleantechnica.com/2022/09/28/teslas-share-of-auto-market-is-now-
2/
Vibhor Tiwari, P. A. (2020). Public Attitudes towards Electric Vehicle adoption using Structural
Equation Modelling. Transportation Research Procedia, 1615-1634.
10. Technical Appendix

Fulfilment of Proposal Requirements
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REPORT ON MARKET RESEARCH

PROPOSAL FOR TESLA

UOL Student Number:

In partial fulfilment of the requirements for the module:

Submission Date: 1 March 2023

Word Count*: 3000/3000

2.2 Problem Definition

2.3 Research Aims (RA)

• RA1: Research on motorists’ considerations for buying electric vehicles.

2.4 Research Questions & Hypothesis (RQ & RH)

• RQ1.1: What are the significant considerations of motorists in purchasing

For RQ1.2, the research hypothesis is:

For RA2, the research questions are:

• RQ2.1: What are the major brand perceptions of Tesla?

For RQ2.1, the research hypothesis is:

o RH2.1: The major brand perceptions of Tesla are “Environment’s

For RQ2.2, the research hypothesis is:

o RH2.2: E.g. “Contemporary Luxury” cluster is comprised of

For RA3, the research questions are:

2.5 Addressing Tesla’s Business Objectives Through Market Research

Awareness of major brand perceptions towards one’s brand (RH2.1) would

Discovering future needs of consumers on products and services based on

Figure 1: Demographic & Geographic questions in Questionnaire

Demographic and geographic data of Tesla and non-Tesla customers would be

Figure 2: Example of Questionnaire Questions on Common Considerations (Likert Scale)

Figure 3: Example of Questionnaire Questions on Common Brand Attributes (Semantic Differential)

Online focus groups will be conducted as opposed to projective techniques as there is

Online questionnaire will be conducted instead of quantitative observation techniques

4. Fieldwork & Data Collection

4.2 Proposed Sample Size

For a 100(1-α)% confidence interval, we have:

where we propose a significance level of α = 0.05 to ensure a 95% confidence level

population standard deviation of 𝜎 = US$2050 based on literature review (Larson,

We propose constructing a confidence interval around the percentage of

For a 100(1-α)% confidence interval, we have:

where we propose a significance level of α = 0.05 resulting in 𝑍𝛼 = 1.96 , a precision

level of e = 0.05 (which translates to estimated population proportion being within a

𝐹𝑖𝑛𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 𝑜𝑓 𝑇𝑒𝑠𝑙𝑎 𝑀𝑜𝑡𝑜𝑟𝑖𝑠𝑡𝑠 5000

𝐹𝑖𝑛𝑎𝑙 𝑆𝑎𝑚𝑝𝑙𝑒 𝑆𝑖𝑧𝑒 5000

≈ 13169266 (𝑟𝑜𝑢𝑛𝑑𝑒𝑑 𝑢𝑝)

Thus, in total 13174266 emails containing links to the online questionnaire

5. Proposed Data Analysis Methods

The coefficient of determination, 𝑅 2, is derived to observe how much of the

Figure 5: Coefficients Table

An individual t test is performed to test the significance of the coefficients (𝛽𝑖 ).

This is performed until only significant independent variables remain. Remaining

The coefficient of the significant variables found within the ‘Unstandardized

5.2 RQ1.3 | Two-Way ANOVA

Figure 6: Hypothesis tests performed within two-way ANOVA.

Figure 7: Test of Between-Subjects Effects Table

5.3 RQ2.1 & RQ2.2 | Cluster Analysis

Hierarchical clustering will be performed using Ward’s procedure. This

Assuming we have a consistent indication of three major brand perceptions

Figure 8: Example of Ward's Method Table for RQ2.1 & RQ2.2

premium, and stylish as a brand, we could profile cluster one to be termed as

The cluster membership table can be used to identify the assignment of

5.4 RQ3.1 | Factor Analysis

Figure 9: Total Variance Explained Table

Figure 10: Example of Scree Plot

Figure 11: Example of Expected Output in Rotated Component Matrix Table

Figure 12: Flowchart of Online Questionnaire

6.2 Online Questionnaire

7. Schedule & Costing

7.2 Estimated Costs (Cost Chart)