Why do Consumers resist buying Electric Vehicles? An empirical Study of Innovation Perception and the Effect of Consumer Characteristics, Innovation Exposure, and Buying Incentives

Date of hand-in: August 12th, 2013 Authors: Nadine Bessenbach and Sebastian Wallrapp M.Sc. International Marketing and Management Copenhagen Business School Supervisor: Associate Professor Sigvald Harryson Department of Management, Politics and Philosophy Copenhagen Business School

Declaration This thesis does not contain any material that has been accepted for the award of any other degree or diploma in any educational institution and, to the best of our knowledge and belief, it does not contain any material previously published or written by another person than the authors of this thesis Nadine Bessenbach and Sebastian Wallrapp, except where the due reference in the text has been made.

Copenhagen, 12th August 2013

Nadine Bessenbach

Sebastian Wallrapp

Abstract Initial Situation Climate change and resource shortage have led to rethink traditional forms mobility. While much effort has been put in the research and development of e-mobility, less attention has been paid to consumers’ acceptance (Yeh, 2007). The majority of consumers still consider EVs as disadvantageous compared to traditional cars. However, without consumer acceptance there will be no technological shift and long-term success of sustainable transport systems (Wiedmann et al., 2011). Structure The research examines the effect of innovation perception on innovation resistance towards EVs. Additionally, three drivers that effect the perception are deployed, namely consumer characteristics, innovation exposure and buying incentives. In addition, we assess marketspecific differences from Norway, Sweden, Denmark and Germany. In order to examine the Innovation Perception Model, we conducted a web-based survey. Research Outcome This research reveals that almost two thirds of the consumers surveyed can be considered resistant. Overall, eight value- and risk barriers exist that prevent consumers from adoption. Furthermore, consumer characteristics, innovation exposure and buying incentives have a relevant effect on the perception of EVs. Additionally, all outcomes vary from market to market. Managerial Implications Relevant recommendations are developed that aim to overcome these barriers. In specific, product-, service-, and communication-strategies are developed to provide a comprehensive solution.

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