Risks and drivers of hybrid car adoption: A cross-cultural segmentation analysis

Abstract

Throughout the developed world, consumers are increasingly being encouraged to adopt cleaner, more eco-friendly behaviours. However, hybrid car adoption remains low, which impedes the move towards a lower carbon economy. In this paper, we examine the risks and drivers of hybrid car purchases, drawing on consumer behaviour and cultural dimensions theory to account for the heterogeneous, segmented nature of the market. As risk perceptions differ across cultures, and in order to address the lack of cross cultural research on eco-friendly cars, we focus on Australian, South Korean, and Japanese consumers. Based on a survey of 817 respondents we examine how five types of risk (social, psychological, time, financial, and network externalities) and three factors that drive purchasing behaviour (product advantages, product attractiveness, and product superiority) influence consumers perceptions of hybrid cars. Four segments of consumers are identified (pessimists, realists, optimists, and casualists) that also vary according to their environmental selfimage, and underlying cultural values. Our results extend theory by incorporating self-image and cultural dimension theories into a multi-country analysis of the risks and drivers of hybrid car adoption. Our findings have practical implications in terms of marketing strategies and potential policy interventions aimed at mitigating risk perceptions and promoting the factors that drive hybrid car adoption.

Common and Contradictory Motivations in Buying Intentions for Green and Luxury Automobiles

“…Conspicuousness positively influences luxury purchasing [19] High pricing negatively influences green purchasing [36,39] Premium pricing has no positive effect on green purchasing [34,40] Low pricing positively influences green purchasing [41,42] Hedonism Hedonism positively influences luxury purchasing [19,30] Hedonism positively influences green purchasing [26,35,43,44].…”

“…Self-enhancement values (e.g., hedonism) are negatively related to green purchasing [36,45] Uniqueness Uniqueness positively influences luxury purchasing [19] Uniqueness positively influences green purchasing [17,46] Limited availability has a negative effect on green purchasing [44,46,47] Quality High quality positively influences luxury purchasing [19,30] Quality positively influences green purchasing [26,48,49] Extended self The extended self positively influences luxury purchasing [19] The extended self positively influences green purchasing [50,51] Most of the previous studies examined motivations of green consumption without referring to the context of a specific product category. We have checked the product categories that were examined in the studies mentioned in Table 2.…”

“…We have reviewed the studies (from Table 2) that examined green automobiles, and in all cases the papers examined primarily the influence of functional attributes, such as economy or load capacity [26,40], thus neglecting to investigate the effects of emotional motives, such as hedonism, or status-seeking motives, such as conspicuousness (the Veblen effect) or unique values (the snob effect). Finally, few studies [26] have examined the cause-and-effect relationships between various attributes and green automobile purchase decision-making.…”

“…Conversely, hedonism, aestheticism, affluence, ostentation, and surplus relate more to luxury [16]. According to several studies [26,35,43,44], individualistic values, such as hedonism or pleasure, positively affect green buying behavior, particularly in regard to green or organic food. Therefore, hedonism might positively influence buying intentions for green durable products.…”

“…With green automobiles (or green luxury) we address vehicles such as hybrid electric vehicles, plug-in hybrid electric vehicles, full electric vehicles. Based on our literature review, only the study by McLeay et al (2018), within the framework of the product-attractiveness construct, examined the effect of social and hedonic items on purchase intentions of hybrid automobiles [26]. The positive evaluation of green vehicles depends on a combination of the social, functional, and hedonic dimensions [27].…”