Driving the Green Vehicles Shift: An Evaluation of Malaysian Consumers’ Acceptance

  • Kit Teng Phuah Faculty of Accountancy, Finance and Business, Tunku Abdul Rahman University of Management and Technology
  • Hon Fai Wong Faculty of Business, Communication and Law, INTI International University
  • Chai Gim Lai Faculty of Business, Communication and Law, INTI International University
  • Siti Intan Nurdiana Wong Abdullah Faculty of Business, Communication and Law, INTI International University
  • Bernard Jit Heng Lim Centre for University of Hertfordshire Programmes, INTI International College Subang
Keywords: Acceptance, cognitive affection model, green vehicle, government policies

Abstract

With the current drastic changes in global weather, more countries are worried about the sustainability of the ecosystem. Global leaders are more concerned about the drastic climate change, and various initiatives are being taken to prevent further damage to the ecosystem. In Malaysia, the transportation sector, mainly motor vehicles, emitted approximately 97% of carbon monoxide to the environment, causing harmful air pollution. Because of this, green vehicles were introduced to overcome this problem. However, there remain various challenges that may impede or trigger the interest of Malaysian consumers in accepting green vehicles. Thus, this study applies the cognitive-affection model to predict the consumers’ intention to accept green vehicles. Using a purposive sampling among current vehicle drivers, a face-to-face survey was conducted and gathered a total of 606 responses. Data were analysed using statistical measurements such as descriptive analysis, exploratory factor analysis and structural equation modelling. Five latent factors such as consumers’ acceptance, perceived quality, perceived value (environmental concern, acquisition and maintenance cost), and government policies were identified. The results indicated that perceived value (environmental concern), perceived quality, and government policies have a strong positive relationship with consumers’ acceptance. The perceived value showed a negative relationship with consumer acceptance, indicating that consumers would only consider accepting green vehicles if they were cheaper and had a low maintenance cost.

References

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modelling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423. https://doi.org/10.1037/0033-2909.103.3.411

Adnan, N., Nordin, S. M., & Rahman, I. (2017). Adoption of green vehicle/EV in Malaysia: A critical review on predicting consumer behaviour. Renewable and Sustainable Energy Reviews, 72, 849-862. https://doi.org/10.1016/j.rser.2017.01.121

Ampofo, A. (2014). Effects of advertising on consumer buying behaviour: With reference to demand for cosmetic products in Bangalore, India. New Media and Mass Communication, 27(7), 48-67. https://doi.org/10.2139/ssrn.2500915

Asshidin, N. H. N., Abidin, N., & Borhan, H. B. (2016). Perceived quality and emotional value that influences consumer's purchase intention towards American and local products. Procedia Economics and Finance, 35, 639-643. https://doi.org/10.1016/S2212-5671(16)00078-2

Axsen, J., & Kurani, K. S. (2013). Connecting plug-in vehicles with green electricity through consumer demand. Environmental Research Letters, 8(1), 1880-1885. https://doi.org/10.1088/1748-9326/8/1/014045

Barton, B., & Schütte, P. (2017) Electric vehicle law and policy: A comparative analysis. Journal of Energy and Natural Resources Law, 35(2), 147-170. https://doi.org/10.1080/02646811.2017.1262087

Beck, M. J., Rose, J. M., & Greaves, S. P. (2016). I can't believe your attitude: A joint estimation of best worst attitudes and electric vehicle choice. Transportation, 44, 753-772. https://doi.org/10.1007/s11116-016-9675-9

Bennett, R., Kottasz, R., & Shaw, S. (2016). Factors potentially affecting the successful promotion of electric vehicles. Journal of Social Marketing, 6(1), 62-82. https://doi.org/10.1108/JSOCM-08-2015-0059

Beresteanu, A., & Li, S. (2011). Gasoline prices, government support, and the demand for hybrid vehicles in the United States. International Economic Review, 52(1), 161-182. https://doi.org/10.1111/j.1468-2354.2010.00623.x

Circontrol, Mobility and eMobility (2020, April 16). Expansion, challenges and opportunities in the EV market and the EVSE industry. Circontrol News. https://circontrol.com/expansion-challenges-ev-market-evse-industry/

Chan, D. (2022, June 9). Vehicles outnumber people in Malaysia. New Strait Times. https://www.nst.com.my/news/nation/2022/06/803654/vehicles-outnumber-people-malaysia

Chiang, W. J. (2014). A study of electric vehicle promotion strategies: From consumers' perspectives. National Taipei University of Technology.

Chang, C. (2011). Feeling ambivalent about going green. Implications for green advertising processing. Journal of Advertising, 40(4), 19-31. https://doi.org/10.2753/JOA0091-3367400402

Cohen, J. B., & Areni, C. S. (1991). Affect and consumer behavior. In T. S. Robertson, & H. H. Kassarjian (Eds.), Handbook of consumer behavior (pp. 188-240). Englewood Cliffs, N.J: Prentice-Hall.

Comrey, A. L., & Lee, H. B. (1992). A first course in factor analysis. Psychology Press.

Diamond, D. (2009) The impact of government incentives for hybrid-electric vehicles: Evidence from US states. Energy Policy, 37(3), 972-983. https://doi.org/10.1016/j.enpol.2008.09.094

Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effects of price, brand, and store information on buyers' product evaluations. Journal of Marketing Research, 28(3), 307-19. https://doi.org/10.1177/002224379102800305

Dubois, D., & Ruvio, A. (2014). When do consumers prefer to look like a king vs. feel like a king? Power-induced preferences for experiential vs. material luxury. In J. Cottes, & S. Wood (Eds.), NA - Advances in Consumer Research Volume 42 (pp. 17-21). Association for Consumer Research. https://www.acrwebsite.org/volumes/1016844/volumes/v42/NA-42

East, R., Wright, M., & Vanhuele, M. (2013). Consumer behaviour: Applications in marketing (2nd ed.). SAGE Publications Ltd.

Eltayeb, T. K., Zailani, S., & Jayaraman, K. (2010). The examination on the drivers for green purchasing adoption among EMS 14001 certified companies in Malaysia. Journal of Manufacturing Technology Management, 21(2), 206-225. https://doi.org/10.1108/17410381011014378

Field, A. (2013). Discovering statistics using IBM SPSS statistics (4th ed.). Sage Publications Ltd.

Gallagher, K. S., & Muehlegger, E. (2011). Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology. Journal of Environmental Economics and Management, 61(1), 1-15. https://doi.org/10.1016/j.jeem.2010.05.004

Graham-Rowe, E., Gardner, B., Abraham, C., Skippon, S., Dittmar, H., Hutchins, R., et al. (2012). Mainstream consumers driving plug-in battery-electric and plug-in hybrid electric cars: A qualitative analysis of responses and evaluations. Transportation Research Part A: Policy Practice, 46(1), 140-153. https://doi.org/10.1016/j.tra.2011.09.008

Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate data analysis. Prentice-Hall.

Hair, J. F., Black, W. C., Balin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. Maxwell Macmillan International Editions. https://doi.org/10.1007/978-3-642-04898-2_395

Hair, J. F., Ringle, C. M., & Starstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152. https://doi.org/10.2753/MTP1069-6679190202

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2013). A primer on Partial Least Squares structural equation modeling (PLS-SEM). Sage Publications.

Harman, A. (2017, April 20). Malaysia aims for leadership in Southeast Asia EV marketing. WardsAuto. http://wardsauto.com/engines/malaysia-aims-leadership-se-asia-ev-marketing

Hao, Y., Dong, X. Y., Deng, Y. X., Li, L. X., & Ma, Y. (2016). What influences personal purchases of new energy vehicles in China? An empirical study based on a survey of Chinese citizens. Journal of Renewable and Sustainable Energy, 8(6), 065904. https://doi.org/10.1063/1.4966908

Helveston, J. P., Liu, Y., Feit, E. M., Fuchs, E., Klampfl, E., & Michalek, J. J. (2015). Will subsidies drive electric vehicle adoption? Measuring consumer preferences in the U.S. and China. Transportation Research Part A: Policy Practice, 73, 96-112. https://doi.org/10.1016/j.tra.2015.01.002

Heutel, G., & Muehlegger, E. (2015). Consumer learning and hybrid vehicle adoption. Environmental and Resource Economics, 62(1), 125-161. https://doi.org/10.1007/s10640-014-9819-3

Hoen, A., & Koetse, M. J. (2014). A choice experiment on alternative fuel vehicle preferences of private car owners in the Netherlands. Transportation Research Part A: Policy Practice, 61, 199-215. https://doi.org/10.1016/j.tra.2014.01.008

Hong, Y. H., Khan, N., & Abdullah, M. M. (2013). The determinants of hybrid vehicle adoption: Malaysia perspective. Australian Journal of Basic and Applied Sciences, 7(8), 347-454.

Hutcheson, G. D., & Sofroniou, N. (1999). The multivariate social scientist. Sage Publication Ltd. https://doi.org/10.4135/9780857028075

IEA. (2017). Global EV outlook 2017: Two million and counting. International Energy Agency. https://www.iea.org/reports/global-ev-outlook-2017

Ioncica, M., Petrescu, E.C., & Ioncica, D. (2012). Transports and consumers' ecological behaviour. Amfiteatru Economic Journal, 14(31), 70-83.

Jayaraman, K., Yun, W. W., Seo, Y. W., & Young, H. (2015), Consumers' reflections on the intention to purchase hybrid cars: An empirical study from Malaysia. Problems and Perspective in Management, 13(2), 304-312.

Jiang, S. (2016). Purchase intention for electric vehicles in China from a consumer-value perspective. Social Behavior and Personality: An International Journal, 44(4), 641-655. https://doi.org/10.2224/sbp.2016.44.4.641

Kannana, V. R., & Tan, K. C. (2005). Just in time, total quality management, and supply chain management: understanding their linkages and impact on business performance. Omega, 33(2), 153-162. https://doi.org/10.1016/j.omega.2004.03.012

Kok, C. (2015, January 21). Government reveals Malaysia is a net importer of crude oil, petroleum products since 2014. TheStar. http://www.thestar.com.my/business/business-news/2015/01/21/clearing-the-air-treasury-sec-gen-malaysia-net-importer-of-crude-oil-petroleum-products-since-2014/

Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Prentice-Hall.

Lane, B., & Potter, S. (2007). The adoption of cleaner vehicles in the UK: Exploring the consumer attitude-action gap. Journal of Cleaner Production, 15(11-12), 1085-1092. https://doi.org/10.1016/j.jclepro.2006.05.026

Lee, J. (2017, October 3). Vehicle registrations in Malaysia hit 28.2 million units. Paul Tan's Automotive News. https://paultan.org/2017/10/03/vehicle-registrations-in-malaysia-hit-28-2-million-units/

Lee, J. (2020, May 4). Vehicle sales performance in Malaysia, Q1 2020 versus Q1 2019 - How has the coronavirus affected sales?. Paul Tan's Automotive News. https://paultan.org/2020/05/04/vehicle-sales-performance-in-malaysia-q1-2020-versus-q1-2019-how-has-the-coronavirus-affected-sales/

Lim, A. (2019, April 24). Government says it has always encouraged the adoption of green vehicles by promoting various initiatives. Paul Tan's Automotive News. https://paultan.org/2019/04/24/government-says-it-has-always-encouraged-adoption-of-green-vehicles-by-promoting-various-initiatives/

Li, W., Monroe, K., & Chan, D. (1994). The effects of country of origin, brand, and price information: A cognitive-affective model of buying intentions. In NA - Advances in Consumer Research Volume 21 (pp. 449-457). Association for Consumer Research. https://www.acrwebsite.org/volumes/7635/volumes/v21/NA-21

Mahmood, S. M. F. (2017). Evaluating the impact of brand equity and price variance upon consumers buying behaviour: An empirical analysis on Bangladesh. International Journal of Entrepreneurship and Development Studies, 5(2), 111-127.

Mamun, A. A., Rahman, M. K., & Robel, S. D. (2014). A critical review of consumers' sensitivity to price: Managerial and theoretical issues. Journal of International Business and Economics, 2(2), 1-9.

McCarthy, N. (2016, May 9). Japan Now Has More Electric Car Charge Points Than Petrol Stations. Forbes. https://www.forbes.com/sites/niallmccarthy/2016/05/09/japan-has-more-electric-car-charging-points-than-gas-stations-infographic/#3243f82c47a1

Mei, O. J, Ling, K. C., & Piew, T. H. (2012). The antecedents of green purchase intention among Malaysian consumers. Asian Social Sciences, 8(13), 248-263. https://doi.org/10.5539/ass.v8n13p248

Ministry of Transport Malaysia (2016). Malaysia stocktaking report on sustainable transport and climate change: Data, policy, and monitoring. Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. https://www.mot.gov.my/en/Documents/summary%20of%20malaysia%20stocktaking%20report-MY_StockTakingReport_Final.pdf

Ministry of International Trade and Industry. (2020). National automobile policy 2020. Malaysia MITI. https://www.miti.gov.my/miti/resources/NAP%202020/NAP2020_Booklet.pdf

Mohamad, J., & Kiggundu, A. T. (2007). The rise of the private car in Kuala Lumpur, Malaysia: Assessing the policy options. International Association of Traffic and Safety Sciences Research, 31(1), 69-77. https://core.ac.uk/download/pdf/82303856.pdf https://doi.org/10.1016/S0386-1112(14)60185-0

Nee, E. A. (2020, January 22). Malaysian automotive association expect flattish TIV in 2020. The Sun Daily. https://www.thesundaily.my/business/malaysian-automotive-association-expects-flattish-tiv-in-2020-HK1927485

Noppers, E. H., Keizer, K., Bolderdijk, J. W., & Steg, L. (2014). The adoption of sustainable innovations: Driven by symbolic and environmental motives. Global Environmental Change, 25, 52-62. https://doi.org/10.1016/j.gloenvcha.2014.01.012

Oliver, J. D., & Rosen, D. E., (2010). Applying the environmental propensity framework: A segmented approach to hybrid electric vehicle marketing strategies. Journal of Marketing Theory and Practice, 18(4), 377-393. https://doi.org/10.2753/MTP1069-6679180405

Ozaki, R., & Sevastyanova, K. (2011). Going hybrid: An analysis of consumer purchase motivations. Energy Policy, 39(5), 2217-2227. https://doi.org/10.1016/j.enpol.2010.04.024

Park, C. Y. (2017, August 22). Hyundai and Kia beat Honda to rank second in the global green car market. Pulse. https://pulsenews.co.kr/view.php?year=2017&no=562325

Podsakoff, P. M., & Organ, D. W. (1986). Self-reports in organizational research: Problems and prospects. Journal of Management, 12(4), 531-544. https://doi.org/10.1177/014920638601200408

Sang, Y., & Bekhet, H. A. (2015). Modelling electric vehicle usage intentions: an empirical study in Malaysia. Journal of Cleaner Production, 92, 75-83. https://doi.org/10.1016/j.jclepro.2014.12.045

Seddon, P. B. (2014). Implications for strategic IS research of the resource-based theory of the firm: A reflection. Journal of Strategic Information Systems, 23(4), 257-269. https://doi.org/10.1016/j.jsis.2014.11.001

Shah, H. (2014, January 20). NAP 2014: Energy efficient vehicles (EEV) defined. Paul Tan's Automotive News. https://paultan.org/2014/01/20/nap-2014-energy-efficient-vehicles-eev-detailed/

Singh, S. (2018, April 3). Global electric vehicle market looks to power up in 2018. Forbes. https://www.forbes.com/sites/sarwantsingh/2018/04/03/global-electric-vehicle-market-looks-to-fire-on-all-motors-in-2018/#406096102927

Syed, A. A., & Mishra, N. (2016). Factors affecting consumerism of green cars: An empirical study. Anvesha, 9(1), 20-35.

Tabachnick, B., & Fidell, L. (2001). Using multivariate statistics (4th ed.). Pearson Education, Inc.

Tu, J. C. (2002). Product sustainable design-green design in theory and practice. AsiaPac Books Pte Ltd.

Tu, J. C., & Yang, C. (2019). Key factors influencing consumers' purchase of electric vehicles. Sustainability, 11(14), 3863. https://doi.org/10.3390/su11143863

UCLA Statistical Consulting Group. (2017). What does Cronbach's alpha mean?. UCLA Advanced Research Computing: Statistical Methods and Data Analytics. https://stats.idre.ucla.edu/spss/faq/what-does-cronbachs-alpha-mean/

US Environmental Protection Agency. (2018). Learn about green vehicles: What makes a vehicle green?. EPA. https://www.epa.gov/greenvehicles/learn-about-green-vehicles

Yong, A. G., & Pearce, S. (2013). A beginner's guide to factor analysis: Focusing on exploratory factor analysis. Tutorials in Quantitative Methods for Psychology, 9(2), 79-94. https://doi.org/10.20982/tqmp.09.2.p079

Zeithaml, V. A. (1988). Consumer perception of price, quality and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22. https://doi.org/10.1177/002224298805200302

Published
2022-12-19
How to Cite
Kit Teng Phuah, Hon Fai Wong, Chai Gim Lai, Siti Intan Nurdiana Wong Abdullah, & Bernard Jit Heng Lim. (2022). Driving the Green Vehicles Shift: An Evaluation of Malaysian Consumers’ Acceptance. International Journal of Business and Society, 23(3), 1771-1791. https://doi.org/10.33736/ijbs.5211.2022