Electrification of the automotive industry

: examining the moderating effect of electrified vehicles on the relationship between well-known brands’ engagement in electrification and consumers’ brand valuations & purchase behavior

Abstract

In an urge to mitigate negative impacts of combustion engines on the environment in terms of air pollution, traffic noise, and health, governments across the globe are demanding innovations in the mobility sector. As a result, automobile manufacturers are fostering on e-mobility options to provide long-term solutions to the worrying development of climate change and traffic congestion. More precisely, automobile brands are introducing electrified vehicles to resolve above-mentioned environmental issues, as well as offering consumers an alleged sustainable choice to their current selection of vehicles. Using prior academic literature as a foundation, an experimental study was conducted to examine the effect of well-known automobile brands’ engagement in electrification on consumers’ brand valuations and purchase behavior, as well as to elaborate the role of the type of electrified vehicle as a moderator on named relationship. Results indicate that brands’ engagement in electrification positively impacts perceived ethicality, brand image, brand trust, purchase intention and willingness to pay. Additionally, the type of electrified vehicle has a moderating effect on afore-mentioned relationship. Namely, electric vehicles and plug-in hybrid electric vehicles increase brand valuations and purchase behavior, whereas hybrid electric vehicles decrease those valuation metrics. Additionally, an extra analysis yields four regression models which evaluate purchase intention of electrified vehicles based on socio-demographic factors, where age and political orientation are found to have great predictive power. This study provides valuable theoretical and managerial implications towards automobile brands’ engagement in electrification, emphasizing positive evaluation with regards to consumer perceptions of electrification and, more specific, electrified vehicles.

Date of Award	28 Jan 2022
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Maria Alves Machado de Sousa de Macedo (Supervisor)