The coalescence effect: Understanding the impact of customer value proposition, perceived benefits and climate change sensitivities on electric vehicle adoption in India

Abstract

AbstractThe overarching objective of this study is to understand factors that influence the customer attitude and eventually purchase intention towards electrical vehicles (EVs). Market survey was done in major cities of 3 states of India to examine the customer attitude and purchase intention towards (EVs). The collected data was analyzed by using partial least squares‐structural equation modeling techniques. It has been found that the factors like overall customer value (performance and cost), awareness and sensitivities towards the climate change, and perceived benefits are the major factors that influence the attitude and subsequently the adoption of EVs by millennials. The factors like perceived price and social acceptance are relatively less significant in terms of their influence on the attitude and purchase intention towards EVs. Hence, it has been concluded that the environmental concern, performance features, infrastructure facility positively influence the attitude and purchase intention towards EVs. This study essentially underscores the importance and role of coordinated impact of performance, features, and infrastructure and climate change sensitivities in influencing and enhancing the adoption of EVs in India, in the context of current market scenario. Hence, this study contributes by providing actionable insights to manufactures and government for developing and communicating pragmatic value proposition to promote EVs. This study brings fresh perspectives on creating positive attitude and purchase intention towards the EVs by providing a model that could be leveraged for devising a long term and sustainable strategy.