An Empirical Model of Pre-purchase Intention Antecedents of Electric Vehicles

Abstract

The proposed model of pre-purchase intention draws on three primary literature domains: the cost-benefit framework (economics), psychology (risk), and utilitarian theory (technology). The cost-benefit framework serves as the foundation for any purchase decision, making it the starting point of this study. This framework is employed to validate hypotheses regarding electric vehicle purchases in India. The literature posits that purchase intention persists as long as the perceived marginal benefit exceeds the expected marginal cost, continuing until a threshold level of utility is reached. "Perceived risk" in product purchases is suggested to positively influence both technological and economic utility. Technological factors enhance purchase intention, while economic principles, such as costs, act as constraints. The perceived risk associated with electric vehicle purchases also plays a significant role in shaping purchase intention. Consumers evaluate information to compare products from established internal combustion engine technology with technologically advanced electric vehicles. Purchase intention is directly influenced by the technology involved. Urban consumers are expected to show a stronger preference for electric vehicles due to factors such as price diffusion and efficiency. It is proposed that incentives and driving range affect cost factors, aligning with the Economics of Information theory, which examines the relationship between cost and utility. This model analyzes the impact of these factors on overall purchase intention and its associated cost benefits. We propose to investigate the significant differences between consumer search strategies for internal combustion engine (ICE) vehicles and electric vehicles within the context of consumer durables. This research aims to address consumer purchase intentions and behaviors by applying relevant theories and techniques to identify, analyze, and resolve marketing challenges in emerging markets. A pilot study was conducted to develop reliable multiple-item scales based on the literature. The first pilot study included 113 samples, while the second had 54 samples, both aimed at identifying reliable and valid indicators. The main study utilized an e-survey method with 322 respondents. The reliabilities of the multiple-item scales closely matched those obtained in the pilot studies. The empirical model was tested using the Partial Least Squares (PLS) method, employing SmartPLS (4.0) as the statistical tool, designed to avoid manipulation and resolve any potential issues. Consistent with the study's objectives, the model was developed to assess the antecedents of purchase intention among buyers of durable, technology-driven products, specifically electric vehicles. The model fit results were highly encouraging. Purchase intention is significantly influenced by the perceived risk associated with the product. Perceived risk impacts intention both directly and indirectly. Economic factors also play a major role in shaping purchase intention, affecting it through both direct and indirect pathways. Technological factors are the third key determinant. These three elements—perceived risk, economic factors, and technology—are the primary drivers of purchase intention explaining the 68 percent of total variance in purchase intention.