Research Proposal

Topic: Factors influencing customer preferences for electric vehicles in

Pakistan.
Group members:

Ashber Khan

Meesam Abbas

Mujtaba Abbas

Khaleeq ur Rehman

Background of the study:

Previously a research was conducted in India in 2018 to determine the perception of people toward
electric vehicles and factors that affect the buying behavior. The main purpose of this quantitative
research is to increase the body of knowledge and determine the key factors influencing people to
buy electric vehicles. The initiative was taken on this idea of electric vehicles because of
environmental concerns and the main aim was the future security and reduce the emissions of
greenhouse gas and increase the energy efficiency. Recently an increase in the demand of electric
vehicles can also be observed all over the world. When such innovative products are introduced in
the market, there is high uncertainty but there are some factors that can influence the adoption of
such innovation.

This research paper focuses on the factors influencing the buying behavior of EV in Pakistan. Because
of increasing environmental pollution and inflation in Pakistan there was a need to revolutionise the
market and availability of alternatives. All the countries in the world are talking step to promote the
adoption of electric vehicles to make the world a better place by such innovations. As the time
passes, with the new improvements in the battery these cars are expected to be highly competitive
with other fuel alternatives in the market to power a car. Furthermore the futuristic goal is to
eliminate all gas powered vehicles from the world and introduce new innovative features in the cars
like self driving technology and making them more secure and efficient that will result in more
sustainable future.

Introduction:
According to the research conducted by World Health Organisation (WHO) in 2019, 9 out of 10
people in the whole world breath Polluted air. One of the main reason for this was found out to be
the pollution caused by vehicles. It is considered as one of the major contributer to environmental
pollution in the whole world. It is a general understanding that in the near future, conventional
vehicles that run on normal fuel can be replaced by battery used or electronic vehicles (EVs) that are
more environment-friendly and also prevent sound pollution and also has a long-term effect on
overall cost as EVs are more cost effective in long-run.
Developed countries like China, Germany, France, USA have shown significant impact in their
countries that has proved to be beneficial for them. In these countries there is improved air quality,
less dependence on foreign oil, emission of greenhouse gases is reduced and these countries also
experience low fuel costs due to which there is less inflation and consumers buying power had
increased. So it can be said that this simple innovation can lead to economic stability for a country in
long run. Moreover, consumers have shown growing interest in EVs according to a survey by lpsos, a
global research firm. According to which consumers from China, USA, Germany, France have shown
their interest in EVs because it is cost effective in long run, it is environmental friendly and it has
improved the driving experience for consumers.

Developing countries like Pakistan, there is lack of awareness among people about environmental
crisis and the long term benefits of EVs. People in Pakistan mostly care for short term results which is
why conventional vehicles are still adopted. Moreover, electricity in Pakistan is costly which will
make electronic vehicles more costly. Furthermore, government has not yet worked on building a
certain infrastructure that is required for EVs to operate.

The main purpose of our research is to identify potential factors that influence consumers to buy or
use or prefer electric vehicles over conventional vehicles. In Pakistan, there is lack of awareness
regarding environmental crisis moreover there is no such prominent research regarding EVs
perception in consumer's mind that is why there is hesitation among those manufacturers and
sellers who want to enter the market but there is alot of uncertainty.

In this research, we tend to identify the factors that influence consumers mindset over EVs and for
this we will use the perception of consumers over those vehicles that are already introduced like
Hybrid cars and Electronic Buses. Because we can see people using these bus service and buying
those hybrid cars as well but we are not sure about what are the factors that are influencing these
people to do so. Through our research we also tend to provide basic overview about consumers
needs regarding such vehicles so that it becomes easier for companies and manufacturers to add
those features that will be effective and efficient in the long run.

Scope of study:
This study will allow readers to know about the preferences of customers on buying electric vehicles
and this research is a qualitative research which is mainly focused on primary data by taking samples
from people os pakistan and it will be a descriptive research. Main purpose of this research is to
know the reason behind number of electric cars being so less in pakistan as compared to other
countries and to know the preferences of customers while buying vehicles and which kind of vehicles
attract the customers most.

Gap in Literature:
Although there are many researches available about the electric vehicles and preferences of
customers while buying vehicles all over the world, but in pakistan there have not been researches
carried out on this topic so this research will fill this gap in literature and it will add the information
gathered from consumers which will elaborate the preferences of customers while buying electric
vehicles.

Problem Statement:
The manufacturers of electric vehicles are unsure about the customer needs and wants of markets
like Pakistan, main reason for this unsurity is the lack of awearness on electric vehicles and lack of
market researches done on this particular topic. However, now government is focusing towards
sustainable mode of transportation in mega cities like Karachi, Lahore and Islamabad, and the
introduction of some new hybrid vehicles in the Pakistani markets, the mindset of Pakistani people is
changing. Despite the benefits of electric vehicles, there are still many consumers who are hesitant
to switch from traditional gasoline-powered cars. This raises the question: what are the factors that
influence customer preferences for electric vehicles in Pakistan, and how can these preferences be
addressed to encourage wider adoption of electric vehicles?

The purpose of this study is to identify the key factors that influence Pakistani mindset on electric
vehicles, including issues related to pricing, range, charging infrastructure, and overall performance.
By gaining a better understanding of these factors, we hope to provide insights and
recommendations for automakers and policymakers on how to properly launch an electric vehicle in
Pakistan keeping in mind its design, marketing, and infrastructure and ultimately encourage more
consumers to adopt this sustainable mode of transportation.

At the time where number of EV’s are increasing in the world it is also significant to know about the
preferences of consumers while buying electric vehicles in Pakistani market and it will show what
the consumers wants while buying vehicles and it will clarify the doubts between car manufacturers
and consumers and car manufacturers will be able to know the preferences of consumers and they
will be able to provide vehicles up to the mark.

Contribution of the study:

Studying factors that affect consumer preferences on electric vehicles (EVs) in Pakistan can provide
valuable insights into the local market’s potential for EV adoption and help policymakers,
automakers, and other stakeholders make informed decisions. One of the major contribution would
be understanding consumer awareness and perceptions. Pakistan is a relatively new market for
electric vehicles, and many consumers may not be familiar with EV technology. Studying consumer
awareness and perceptions of EVs can help identify potential barriers to adoption and inform
marketing and education efforts to increase EV uptake.

This research will help us identify the factors that influence EV adoption in Pakistan. These factors
might include the social acceptance, financial and non financial benefits these cars provides, long-
term and short-term planning of consumers, government policies etc. By understanding these
factors that influence consumer decision-making regarding EVs can help policymakers and
automakers tailor their efforts to promote EV adoption.

Pakistan’s market may have unique preferences regarding the type of EVs they are interested in
purchasing, such as hybrid, plug-in hybrid, or battery electric vehicles. Understanding these
preferences can help automakers and policymakers develop the most suitable product mix for the
local market.

Overall, studying factors affecting consumer preferences on electric vehicles in Pakistan can provide
valuable insights for stakeholders interested in promoting sustainable transportation and developing
the local EV market. This research would be a great contribution for the the future of EVs in Pakistan.
Research Objectives:
When conducting research on factors affecting consumer preferences on electric vehicles in
Pakistan, our main research objectives are as follow:

1) To understand the mindset and level of awareness of electric vehicles among

Pakistan consumers

2) To examine the factors what influence the preferences for electric vehicles, these factors
may include pricing, design, product quality, product offering, company’s services etc

3) To explore the role of social influence, such as peer pressure or recommendations from
friends and family, in shaping Pakistani consumers’ attitudes towards electric vehicles.

4) To assess the impact of demographic variables such as age, income, education, and location
on Pakistani consumers’ preferences for electric vehicles.

5) To provide recommendations for policymakers, automakers, and other stakeholders on how

to promote electric vehicle adoption in Pakistan based on the research findings.

Hypothesis:

Research Questions:
Q1) What are the key factors that influence the preferences for electric vehicles in Pakistan?

Q2) What are the obstacles that potential policy makers, automakers and certain stakeholders face
while promoting EVs, and What actions and planned decision the automakers and policy makers
should take before launching a electric vehicle in Pakistan markets?

Conceptual Framework:
There are many factors that affect the adoption of any innovation. Factors involve in this exploratory
research are awareness regarding environment, financial reasoning and the offered quality of the
product. These factors eventually results in social acceptance of any innovation. Current research
focuses on the features the electric vehicles are offering that is resulting in the adoption of such
vehicles in Pakistan. This study will allow further technological advancement in EVs and it will also
help in changing the perception of the people regarding this innovation, resulting in making it
consumer’s preference.
LITERATURE REVIEW:

THEORETICAL UNDERPINNING
Theoretical underpinning of the research is based on the researches we have studied. It can be
inferred from the research that the adoption of electric vehicles all over the world takes place
because of certain factors. These factors take major part in the adoption of the new technology in
the society. The overall research revolves around the perception about the new product and how
people are taking it.

Perception regarding such new products involves attributes, finances and impact on environment
etc. These factors make people more aware of the new products and it’s need in the society and in
upcoming time. This eventually this results in the social acceptance of the product. When the
product is socially accepted is leads to the adoption of the product as it becomes the part of people’s
life and essential need with the passage of time.

DEFINITIONS AND DIMENSIONS

1. Environmental awareness: Environmental awareness means being informed about our natural
surroundings and atmosphere, and knowing the factors that can positively or negatively affect our
environment so that we can work on the betterment of our environment.

2. Financial reasoning: Financial reasoning means the financial reasons which we calculate to figure
out the procedures accordingly to which benefit us most on the financial means it includes costs on
different activities and their alternatives.

3. Built quality: Built quality is the quality of material which has been used during making any
product and built quality varies in different kind of same type of products and customers first
compare built qualities and prices of different products then in last they go for best value for money
product.

4. Social Acceptance: Social acceptance means that any product or action that is decent and socially
accept it does not include any vulgarity and every person of society can use it and everyone in
society accepts it.

5. Customer preference: Customer preference means which product or service will customers prefer
upon other alternatives and it includes many factors which will change the preferences of customers
on different kind of products.

Methodology:

Population and Sample Size:

There are 7.8 Billion people in the world and many of them are the users of electric vehicles. The
research paper focuses of the people of Pakistan to gain the knowledge about their interest and
values. This will also indicate the factors that will lead the population of Pakistan to adopt the
electric vehicles.

The sample size representing the whole population would be 300 to 400. The variable in the
research are 5 and the sample is collected according to those variables.

Sampling Technique:

In sampling techniques, we refer to two types of sampling techniques, one is probability sampling
and the other is non-probablity sampling. In probability sampling every individual has an equal
chance to get selected while in non probability sampling each individual does not have an equal
chance to get selected.

Probability sampling requires the data of every potential individual that is the part of our research.
But as it is not possible to reach every single person so here we are using non probability
sampling.The researcher’s target sample is the youth who use electronic bus service as
transportation medium that is recently introduced in Karachi. Data has been collected from
university students by circulating online questionnaire. For thorough analysis a sample was around
300 people.

Measures and Scale:

In this study all the constructs are selected from previously done researches on the same topic so
these constructs are reliable. 5 point Lickert scale is used for this study it is an odd scale which gives
the respondant a neutral option so that the neutral opinion can be obtained too because even
Lickert scale restricts the respondants to answer either positively or negatively. Further details about
the constructs and scales are explained below:

Environmental Awareness:

Environmental Awareness is the Awareness of people or citizens of a certain city related to

environmental which includes pollution and other factors negatively or positively affecting the
environment. 3 item construct had been adapted from previously established study.(Taeseok Yong ,
Chankook Park, 2017) . Responses of the respondants were measured through Lickert scale
consisting 5 points where 1 is for strongly disagree, 2 is for disagree, 3 is for neutral, 4 is for agree
and 5 is for strongly agree.

Financial Reasoning:

In this research financial reasoning refers to the financial factors like prices, costs that effects the
adaption of EVs and its social acceptance. 4 item construct had been adapted from previously
established study.(AK Digalwar, A Rastogi , 2023) .Responses of the respondants were measured
through Lickert scale consisting 5 points where 1 is for strongly disagree, 2 is for disagree, 3 is for
neutral, 4 is for agree and 5 is for strongly agree.

Built Quality:
In this research Built quality refers to the quality of the EVs and its impact on overall consumer
experience who are primary stakeholders of EVs. Responses of the respondants were measured
through Lickert scale consisting 5 points where 1 is for strongly disagree, 2 is for disagree, 3 is for
neutral, 4 is for agree and 5 is for strongly agree.

Social Acceptance:

In this research Social Acceptance refers to the factors that influence people or citizens of Karachi to
socially accept and prefer EVs over conventional vehicles. 6 item construct had been adapted from
previously established study. (Pretty Balla , Inass Salamah Ali, Afroze Nazneen, 2018). Responses of
the respondants were measured through Lickert scale consisting 5 points where 1 is for strongly
disagree, 2 is for disagree, 3 is for neutral, 4 is for agree and 5 is for strongly agree.

Adoption of EVs:

In this research the construct Adoption of EVs refer to the final preference and adoption of EVs after
evaluation of all the positive and negative factors that influence adoption of EVs. 6 item construct
had been adapted from previously established study. (M.Faizan, S.Y.Feng, 2019). Responses of the
respondants were measured through Lickert scale consisting 5 points where 1 is for strongly
disagree, 2 is for disagree, 3 is for neutral, 4 is for agree and 5 is for strongly agree.

Research Tool and Data Analysis:

The purpose of this study is to study environmental awareness, financial reasoning and build quality
and their relationship with social acceptance and adaption of EVs. Research questionnaire was
developed through previous studies and they are analysed through SPSS software.

Research Design:

Structural Equation Modelling (SEM):

RESULTS

DISCUSSIONS