EXPLORING
THE PURCHASE INTENTIONS AND PERCEPTIONS OF
GENERATION
Z TOWARDS ELECTRIC VEHICLES IN JAKARTA
Hesti Wulandari
Institut
Teknologi Bandung, Jawa Barat, Indonesia
ABSTRACT
This research aimed to explore the factors contributing to purchase
intent towards electric vehicles (EVs) among Generation Z in Jakarta and their
perceptions of electric vehicle marketing efforts from manufacturers and
government programs. The study aimed to provide recommendations for
manufacturers and the government to promote EVs through open-ended qualitative questionnaires,
sentiment analysis from Twitter, and quantitative structural equation
modelling. The open-ended qualitative questionnaire provided insights into
Generation Z's purchase intention towards EVs, their knowledge and concern for
environmental issues related to EVs, and their perceptions of marketing efforts
from manufacturers and government programs. The sentiment analysis from Twitter
revealed ositive sentiment towards electric cars, electric motorcycles, Hyundai
Ioniq 5, and Wuling Air EVs. The quantitative structural equation modelling
revealed that personal norms were a significant predictor of purchase
intention, with a significant relationship between personal norms and
environmental concern and peer effect. However, the relationship between environmental
concern and peer effect on purchase intention was insignificant. Personal norms
are a crucial factor in determining Generation Z's purchase intention of
electric vehicles in Jakarta, and environmental concerns and peer effects have
no significant effect. While Generation Z has a positive outlook on EVs,
manufacturers, governments, and society need to do more to promote their
adoption. Manufacturers should focus educating consumers about the benefits of
electric vehicles, and governments should provide incentives to encourage their
use. Further research is needed to investigate other factors influencing
purchase intent, such as consumer knowledge and attitudes towards electric
vehicles.
Keywords:
electric vehicles, generation z, purchase
intention, marketing efforts, government programs, personal norms.
Corresponding Author: Hesti
Wulandari
E-mail: [email protected]
INTRODUCTION
Despite its widespread use and practical benefits,
traditional fossil-based transportation is a significant source of harmful
pollution, particularly in densely populated urban areas. Pollution, health
problems, and traffic jams result from an unsustainable focus on expanding
fossil fuel-based transportation at the expense of regular environmental upkeep
(Skovgaard et al.,
2023). In addition to hurting the environment, fossil fuels
are also a limited resource. Many nations have accelerated the development of
electric vehicles to lessen their reliance on oil and their environmental
impact (Sun et al., 2019).
Council on Foreign Relations (2022) wrote that
political leaders worldwide have committed to working together to reduce global
warming for decades. Despite increased diplomatic efforts, the world is already
feeling the effects of climate change, and things are only going to grow worse.
The level of carbon dioxide in the atmosphere continues to climb, heating the
Earth at an alarming rate, despite countries' agreements to decrease greenhouse
gas emissions under the Kyoto Protocol and the Paris Agreement. Scientists have
warned that if global warming continues unchecked, it could cause environmental
catastrophe throughout most of the globe, including unprecedented sea-level
rise, record-breaking droughts and floods, and the extinction of many species.
As part of the yearly UN climate conferences, also known as COPs, many
countries have increased their climate obligations since the Paris Accord was
signed in 2015. After the 2021 meeting, governments pledged to bring even
greater ambition to the COP27 conference the following year in Egypt.
Scientists warn that present pledges are insufficient to prevent catastrophic
warming or adapt to its repercussions.
Regarding climate change, several Asian countries are
on the front lines. Research reported that ninety-three of the 100 most
polluted cities in Asia and six of the top ten countries most vulnerable to
climate hazards are in Asia (Silva et al., 2013). High energy demand is a problem in the region
because many countries are quickly developing and urbanising. China's energy
consumption is more than three times that of Europe, making it more difficult
for the country to achieve its goal of net zero consumption. Transportation
accounts for a sizable portion of Asia's total GHG emissions, so improvements
in this area will be crucial in the fight against climate change. This industry
can contribute 14% of emission abatement between 2018 and 2050.
Figure
1. Emission Abatement Potential (McKinsey, 2022)
The emissions of greenhouse gases (GHG) are also the
unwanted by-product usually associated with fossil fuel burnings for energy
needs. The severity of climate change due to GHG emissions has become
threatening. Immediate preventive actions and climate policies are needed to
slow the worsening climate change impacts. Electric vehicles (EVs) could solve
the environmental problem, improve fuel economy, and enhance vehicle driving
range due to the use of highly efficient electric motors (Yong et al., 2015)
As reported by S&P Global Market Intelligence
(2021), global sales of electric vehicles are expected to rise. In 2025, the
number will rise to 58.68 million (Hering, 2021). That year, there will be 13.1 million EV sales
worldwide. Compared to the previous year, when sales were just 11.31 million
units, this year's rise is 15.83%. As of August 2021, global sales of electric
vehicles had reached 6.2 million. Compared to last year's total of only 3.06
million units, this year's surge is 102.61 per cent. By 2025, the percentage of
the annual auto market held by electric vehicles is expected to rise above 15%.
Sales to the European Union account for 37% of total sales. The Chinese market
for electric vehicles is 20%, by the way.
On the other hand, the U.S. market for electric cars
has reached 10%. According to Alice Yu, senior research analyst at Market
Intelligence, the rise in the worldwide adoption of electric vehicles has been
spurred by government policies offering financial incentives to buyers. The
number of available electric vehicle models has also increased because of
government initiatives to lessen dependence on fossil fuels.
Figure
2. Global Passenger Plug-in Electric Vehicle Sales (S&P Global, 2021)
Indonesia's Government wants to produce 400 thousand
electric vehicles by 2025 and 5.7 million by 2035. Jakarta and Bali are ideal
places to evaluate EVs as a means of mass transportation. The Government has
issued several regulations in preparation for this. Indonesia's oil and gas
industry can take advantage of investment incentives offered by the Government.
The process of having their vehicles tested will be simplified, and they will
have easier access to resources for registering their businesses. Hyundai and
LG Energy will each invest about $600 million in an electric vehicle battery
factory (BKPM, 2022).
According to CNBC.com (2022), 3,781 electric vehicles
were sold in Indonesia in September, surpassing the previous record established
in 2022 by 1,019 vehicles. This number is nearly four times more than the
previous month's 302 units. Wuling Air EV is predicted to be the sales booster.
The Association of Indonesian Automotive Industries (Gaikindo) said 1,887 units
were sold wholesale (from the factory to dealers). At 1,325 units, the Long-Range
model of Wuling Air EV is the company's best-seller. To fulfil the demand for
charging electric batteries later, the objective is to develop a Public
Electric Vehicle Charging Station (SPKLU) in 2021, which will be 527 units and
climb to 31,859 units in 2030. There are plans to raise the number of General
Electric Vehicle Battery Exchange Station (SPBKLU) units from 3,000 in 2021 to
67,000 by 2030.
Figure
3. Indonesia SPKLU Development Projection of 2031 (Katadata, 2022)
However, the societal benefits of EVs come at a high
cost to the EV owner regarding the purchase price, range, availability, cargo
capacity, top speed, and acceleration (G�rling &
Th�gersen, 2001). The inability to charge an EV when needed also
limits its utility. A product like this does not exactly sell itself,
especially for Generation Z.
According to the Center for Advanced Study in the
Behavioral Sciences (CASBS) of Stanford University, the members of Generation
Z, also known as iGen or post-millennials, are a cooperative group who have a
strong sense of altruism and have a practical perspective on how to address the
myriad issues their older generation has left them with, such as climate
change. They developed an early facility with powerful digital tools that
allowed them to be self-reliant as well as collaborative. They also gained a greater
understanding of diversity and the significance of developing their own
distinct identities because they could learn about people and cultures from
around the world at a young age (Witte, 2022).
The Indonesian Central Statistics Agency (Badan Pusat
Statistik) published the results of the 2020 Population Census at the end of
January, giving us a snapshot of Indonesia's evolving demographics since the
last census was taken in 2010. Many organizations have predicted and analyzed
that Indonesia is currently experiencing a period known as the Demographic
Bonus. Interestingly, 27.94 per cent of Indonesia's population in the census is
part of Generation Z, or those born between 1997 and 2012, as shown in Figure
1. Predictions about the Millennial Generation's role in shaping the future of
society place them just behind Generation Z, who make up 25.87 per cent of
Indonesia's population (Rakhmah, 2021). Consequently, the presence of Generation Z is
crucial to the present and future of Indonesia's progress.
According to a statistic shared by the DKI Provincial
Government on their official Instagram, millennials (those born between 1981
and 1996) make up the largest demographic in Jakarta, and 26.78 per cent of the
population is under the age of 30. Gen Z, born between 1997 and 2021, comprise
the city's second-largest cohort of residents. Meanwhile, 25.65 per cent of
residents are members of Generation Z. Then, 23.64 per cent of people in
Jakarta identified as Generation X. Only 11.25 per cent of Jakarta's population
belongs to Post Gen Z (those born in or after 2021). Baby boomers, or locals
born between 1946 and 1964, made up only 11.09 per cent of the population.
Pre-boomers, or people born before 1945, make up a tiny fraction of Jakarta's
populace, at only 1.32 per cent (Tamara Then, 2021).
Figure
4. Composition of Indonesian Population (BPS, 2021)
Understanding Indonesia Gen Z's purchase intent
towards EVs is required to form the right marketing strategy. This research
uses the S-O-R framework or Stimulus-Organism-Response by Mehrabain and Russell
(1974) (Skovgaard et al.,
2023), as shown in Figure 2 (Ma, 2014), to find the
contributing stimuli (Arif et al., 2020). The framework's goal is to understand better how everyone�s
unique reactions to external stimuli contribute to developing either positive
or negative habits regarding purchasing intent. The author will also conduct
qualitative analysis from the open-ended surveys and social media sentiment
from Twitter to get business insights for electric vehicle manufacturers and
Government.
Figure
5. Stimulus Organism Response (SOR) framework
The market for electric vehicles is one of the most
vibrant in the clean energy sector. According to International Energy Agency
(iea.org, 2022), the number of EVs sold in 2021 reached a new high of 6.6
million, more than double the previous year's total. As recently as 2012, only
120,000 electric vehicles were sold globally. In 2021, weekly sales will
average over 100% higher than that. In 2021, electric cars will account for
nearly 10% of worldwide sales, up from 2% in 2019. This tripled the number of
electric vehicles worldwide from 2018 levels, bringing the total to roughly
16.5 million. In the first quarter of 2022, 2 million electric vehicles were
sold worldwide, a 75% increase from the same period in 2021. Multiple forces
are contributing to the growth of the EV market. The primary tenet is
consistent policy backing. In 2021, government investment in electric vehicle
subsidies and incentives doubled, reaching over USD 30 billion. A rising number
of nations have either committed to eliminating the use of internal combustion
engines or set lofty goals for the electrification their transportation fleets
over the next few decades.
Meanwhile, many automakers have ambitious plans to
electrify their fleets, far exceeding legislative targets. Finally, in 2021,
there were five times as many new EV models available as in 2015, increasing
their appeal to buyers. The current market offers about 450 different electric
vehicle models.
In order to seize the decarbonization opportunity,
global governments have instituted lofty targets for Evs (Vilas, 2021). The EU's Fit for 55 plan aims to reach carbon
neutrality by 2050. The US government under Biden has set a goal of having 50%
of all new cars sold in 2030 be electric vehicles. In keeping with these
objectives, we may expect EV adoption to reach 45% by 2030 under the current
predicted regulatory targets. Battery electric vehicles, plug-in hybrids, and
fuel cell vehicles are all accounted for in this forecast (FCEVs). Consumers in
various Asian nations are adopting EVs at varying rates. Emerging Asia, led by
India and the Association of Southeast Asian Nations (ASEAN), lags established
markets like China and Japan. In other words, EVs only accounted for about 1%
of all new car sales in the area in 2021.
Figure
6. Adoption of New Electric Vehicles in Selected Asian Countries (McKinsey,
2022)
As a result of government efforts to attract
foreign investment and promote green growth, electric vehicle manufacturing in
Indonesia is quickly becoming a vital sector of the country's economy (Sarmiento, 2022). However, from 2021 data, the
adoption of electric vehicles in Indonesia is still low (Shofa, 2022). Generation Z, the dominant
group in the latest 2020 census, 27.94 per cent of Indonesia's population,
definitely play an essential role in the future planning of electric vehicle
(EV) adoption in Indonesia (Rakhmah, 2021). This research aims to
understand Generation Z's purchase intent towards electric vehicles (EV) in the
Jakarta area using quantitative methods, such as structural equation modelling,
to analyze the data collected from the survey in order to identify the key
factors that influence purchase intention among Generation Z and explore how
these factors are interconnected. This research will provide valuable insights
into the decision-making process of Generation Z and how to influence their
purchase intentions.
Additionally, this research
aims to investigate the perception of Generation Z towards electric vehicle
marketing and government efforts and identify improvement areas. This will
involve conducting an open-ended qualitative questionnaire to gather insights
from Generation Z on their perceptions of electric vehicle marketing from
manufacturers and government initiatives and their suggestions for how these
organizations can improve their efforts to promote electric vehicles among this
demographic group. The research will provide valuable insights for
manufacturers and government organizations to develop more effective strategies
and programs that resonate with Generation Z.
METHOD
A research design
is a plan or framework for conducting a study. The study would aim to
understand the relationship between environmental concern, peer effect,
personal norms, and purchase intention among this demographic.
Figure
7. Research Design
The
researcher uses a mixed method to conduct the study: qualitative with an
open-ended questionnaire, social media sentiment, and quantitative with an
online survey. Qualitative research is valuable for understanding complex
social phenomena and gaining insight into people's experiences, perceptions,
and perspectives. There are many approaches to qualitative research, including
case studies, ethnography, narrative analysis, and grounded theory (Creswell & Poth,
2016). These approaches involve collecting data through
interviews, focus groups, observations, and document analysis and analyzing
that data using techniques such as coding, memoing, and conceptualization (Denzin &
Lincoln, 2011). One of the strengths of qualitative research is
that it allows for the in-depth exploration of complex, multifaceted issues. It
allows researchers to capture the richness and complexity of people's
experiences and to understand the meaning that people attribute to those
experiences (Miles &
Huberman, 1994). Qualitative research can also be used to generate
new insights and theories and validate or challenge existing theories (Creswell & Poth,
2016).
RESULTS AND DISCUSSION
Structural Equation Modeling (SEM)
Next,
the analysis would be Structural Equation Modelling (SEM). In this case, the
structural model would examine the relationship between Environmental Concern
and Peer effect (Stimulus), Personal Norm (Organism), and Purchase Intention
(Response). The researcher analyzed the data using JASP with on Lavaan syntax
model from Yves Rosseel (Rosseel, 2021),
with modifications to show how each variable correlated.
Figure
8. SEM Model
# measurement model
response
=~ PI1+PI2+PI3+PI4
stimulus
=~ EC1+EC2+EC3+EC4+PE1+PE2+PE3+PE4
organism
=~ PN1+PN2+PN3+PN4
# regressions
stimulus ~
organism
response ~ stimulus + organism
Table 1.
Model Fit Analysis 3 Comparison
|
Trials |
AIC |
BIC |
n |
Baseline test |
||
|
χ� |
df |
p |
||||
|
First |
8070.853 |
8239.068 |
200 |
285.397 |
101 |
< .001 |
|
Second |
7044.652 |
7193.076 |
200 |
181.404 |
74 |
< .001 |
|
Third |
6595.615 |
6734.144 |
200 |
140.627 |
62 |
< .001 |
A test showed decreased numbers in the model
fit with chi-square, df and p-value, which means the constructs are now better
suited to the model. The P-value remains the same.
Table
2. Fit Indices 3 Comparison
|
Index |
Value |
||
|
First |
Second |
Third |
|
|
Comparative Fit Index (CFI) |
0.854 |
0.908 |
0.93 |
|
Tucker-Lewis Index (TLI) |
0.827 |
0.887 |
0.912 |
|
Bentler-Bonett Non-normed Fit Index (NNFI) |
0.827 |
0.887 |
0.912 |
|
Bentler-Bonett Normed Fit Index (NFI) |
0.794 |
0.856 |
0.883 |
|
Parsimony Normed Fit Index (PNFI) |
0.668 |
0.696 |
0.702 |
|
Bollen's Relative Fit Index (RFI) |
0.755 |
0.824 |
0.852 |
|
Bollen's Incremental Fit Index (IFI) |
0.856 |
0.910 |
0.931 |
|
Relative Noncentrality Index (RNI) |
0.854 |
0.908 |
0.93 |
The fit indices for the CFI, TLI, NNFI,
IFI and RNI are all above 0.90, indicating a fit. The third trial has more fit indices
than the first and second trials.
Table 3. Other Fit
Measures 3 Comparison
|
Metric |
Value |
||
|
First |
Second |
Third |
|
|
Root means the square error of approximation (RMSEA) |
0.096 |
0.085 |
0.08 |
|
RMSEA 90% CI lower bound |
0.083 |
0.07 |
0.062 |
|
RMSEA 90% CI upper bound |
0.109 |
0.101 |
0.097 |
|
RMSEA p-value |
2.551�10-8 |
2.054�10-4 |
0.004 |
|
Standardized root means square residual (SRMR) |
0.068 |
0.058 |
0.051 |
|
Hoelter's critical N (α = .05) |
88.919 |
105.829 |
116.74 |
|
Hoelter's critical N (α = .01) |
96.986 |
116.987 |
130.138 |
|
The goodness of fit index (GFI) |
0.989 |
0.991 |
0.992 |
|
McDonald's fit index (MFI) |
0.631 |
0.765 |
0.822 |
|
Expected cross-validation index (ECVI) |
1.937 |
1.357 |
1.123 |
We have 0.08 RMSEA, a good fit for the model and a good
score for GFI.
Table 4.
Factor Loadings 3 Comparison
|
Latent |
Indicator |
Standardized |
||
|
First |
Second |
Third |
||
|
Organism |
PN1 |
0.632 |
0.635 |
0.637 |
|
PN2 |
0.812 |
0.812 |
0.812 |
|
|
PN3 |
0.841 |
0.839 |
0.837 |
|
|
PN4 |
0.835 |
0.835 |
0.836 |
|
|
Response |
PI1 |
0.840 |
0.839 |
0.84 |
|
PI2 |
0.728 |
0.726 |
0.725 |
|
|
PI3 |
0.690 |
0.693 |
0.693 |
|
|
PI4 |
0.766 |
0.767 |
0.766 |
|
|
Stimulus |
EC1 |
0.312 |
|
|
|
EC2 |
0.454 |
0.392 |
|
|
|
EC3 |
0.433 |
0.428 |
0.415 |
|
|
EC4 |
0.065 |
|
|
|
|
PE1 |
0.442 |
0.432 |
0.421 |
|
|
PE2 |
0.428 |
0.435 |
0.438 |
|
|
PE3 |
0.606 |
0.619 |
0.629 |
|
|
PE4 |
0.734 |
0.778 |
0.802 |
|
All factor loading scores are above 0.4, indicating a
model fit. So after eliminating EC1, EC2, and EC4, the model fit scores are
generally improved.
Figure 9. SEM Model After Modifications
Open-Ended
Questionnaire Analysis
From the analysis,
we can conclude based on the objectives:
1. Objective 1: Insights of Generation Z's
purchase intention towards electric vehicles: They expressed interest in buying
an electric vehicle because it was cost-effective and environmentally friendly.
What attracted them were the features, spare battery, ease of charging, and
charging stations in many places. Range, safety and price were also mentioned.
2. Objective 2: Insights of Generation Z
knowledge and concern for environmental issues related to electric vehicles:
They knew that EVs and cars that run on fossil fuels pollute in different ways.
Additionally, unlike the carbon emission from fossil-fueled vehicles, EVs are
more environmentally friendly and help the environment because EVs reduce
pollution. However, in a scenario where they owned an EV, Generation Z was
still interested in purchasing a fossil-fuel-powered vehicle. The reason was
that they needed more confidence in the EV range, charging stations, spare
parts and services.
3. Objective 3: Insights of Generation Z's
perception towards electric vehicle marketing efforts from manufacturers and
how to improve them: They saw that the current marketing promotions from EV
manufacturers are not attractive enough. The reason was that people needed to
be made aware of EVs because there needed to be more advertising and promotion
programs. However, a significant number also stated that the marketing was
interesting enough. In terms of marketing ideas, most of them want price
discounts. Other factors are also mentioned, such as: working with Government
for a subsidy, attractive advertisement, and ease of charging by building the
infrastructure.
4. Objective 4: Insights of Generation Z's
perception towards electric vehicle programs and socialization efforts from the
Government and how to improve them: They expressed that government programs and
socialization efforts to introduce EVs were not enough. This is because EVs are
still not widely promoted, the price is still high, and there is little
supporting infrastructure. They suggested giving subsidized programs, price
discounts and promotions, building infrastructures, and more charging stations
to improve the efforts.
5. Objective 5: Insights of popular electric
vehicle brands according to Generation Z: Wuling dominated the car category,
followed closely by Hyundai and Tesla. Viar dominated the motorcycle category.
Sentiment Analysis
Table 5. Sentiment Analysis for �mobil listrik�
|
Keywords:
"mobil listrik." |
|
Emotion
Profiling |
|
|
|
Sentiment
Analysis |
|
The
sentiment analysis data indicates that most of the tweets (267 out of 500)
containing the keyword "mobil listrik" or "electric car"
express joy. There is also a significant amount of surprise expressed in the
tweets (122 out of 500). A smaller percentage of tweets express fear (96 out
of 500), and a very small percentage express disgust (9 out of 500) and anger
(3 out of 500), or sadness (3 out of 500). Overall, the sentiment towards
electric cars on Twitter is positive. |
Table 6. Sentiment Analysis for "motor listrik."
|
Keywords:
"motor listrik." |
|
Emotion
Profiling |
|
|
|
Sentiment
Analysis |
|
The sentiment analysis data indicates that most of the tweets
(264 out of 500) containing the keyword "electric motorcycle"
express joy. There is also a significant amount of surprise expressed in the
tweets (155 out of 500). A smaller percentage of tweets express fear (67 out
of 500), and a very small percentage express disgust (7 out of 500), anger (4
out of 500) or sadness (3 out of 500). Overall, the sentiment towards
electric motorcycles on Twitter is positive. However, the surprise
expressed in tweets is higher than the joy, which might indicate that people
are still not aware of the full capabilities of electric motorcycles, and the
technology behind it is still new to them. |
Table 7.
Sentiment Analysis for �hyundai ioniq 5�
|
Emotion Profiling |
|
|
|
Sentiment Analysis |
|
The
sentiment analysis data indicates that most of the tweets (41 out of 74)
containing the keyword "Hyundai ioniq 5" express surprise. There is
also a significant amount of joy expressed in the tweets (27 out of 74). A
smaller percentage of tweets express fear (4 out of 74) and a very small percentage
express anger (1 out of 74) or sadness (1 out of 74). Overall, the sentiment
towards Hyundai Ioniq 5 on Twitter is positive, with a lot of surprise and
joy being expressed in the tweets. However, the sample size is small, so the
result may not represent the overall sentiment towards the Hyundai Ioniq 5 on
Twitter. |
Table 8.
Sentiment Analysis for �wuling air EV�
|
Keywords: "wuling air EV." |
|
Emotion Profiling |
|
|
|
Sentiment Analysis |
|
The
sentiment analysis data indicates that most of the tweets (61 out of 109)
containing the keyword "wuling air EV" express surprise. There is
also a significant amount of joy expressed in the tweets (31 out of 109). A
smaller percentage of tweets express fear (16 out of 109), and a small
percentage express sadness (1 out of 109). Overall, the sentiment towards
Wuling Air EV on Twitter is positive, with a lot of surprise and joy
being expressed in the tweets. The big surprise may indicate that people are
unfamiliar with this specific EV and are surprised about its features or
capabilities. The relatively high number of fear tweets may indicate that people
have concerns about the reliability and durability of this EV or the safety
of electric vehicles in general. |
We can summarize the dominant emotion on each keyword from the
sentiment analysis. Two keywords were excluded from this analysis (�alva one�
and "unwind t3") because the data fetched from Twitter API
is too small.
|
Keywords |
Translations |
Sentiment |
|
Mobil
Listrik |
Electric
Car |
Positive |
|
Motor
Listrik |
Electric
Motorcycle |
Positive |
|
Hyundai
Ioniq 5 |
Hyundai
Ioniq 5 |
Positive |
|
Wuling Air
EV |
Wuling Air
EV |
Positive |
Business Solution
Identify and Target
Generation Z Consumers Who Have a High Level of Personal Norm
Multiple
market research strategies exist to identify and appeal to Generation Z
consumers with a strong sense of personal norms. To better understand the
attitudes and values of Generation Z toward electric vehicles, I suggest
conducting surveys and focus groups with them. Insights gathered can be used to
target only those consumers who share a robust set of values concerning
environmental preservation and long-term sustainability. Alternatively,
manufacturers could examine social media data to find consumers involved in
green or sustainable groups. Manufacturers can also learn more about Generation
Z customers' values and beliefs, which can help them target the demographic
most likely to have a favourable personal norm regarding electric vehicles.
Manufacturers can then create highly targeted advertising campaigns after
determining their ideal customers. For instance, they can employ messaging that
emphasizes the individual benefits of electric vehicles, such as financial
savings and reduced environmental impact, rather than broader social factors
like environmental consciousness and the influence of peers. In addition,
manufacturers can reach these customers by launching focused digital and
traditional marketing campaigns.
Develop Marketing
Campaigns That Focus on The Personal Benefits of Electric Vehicles
Manufacturers
can increase their sales of electric vehicles to Generation Z by creating
marketing campaigns that emphasize the individual benefits of electric
vehicles, such as cost savings and environmental impact, rather than
environmental worry and the peer effect. Individuals can save money by
switching to an electric vehicle because of the lower cost of ownership
compared to gasoline-powered vehicles, and they can help the environment by
reducing their carbon footprint because electric vehicles emit no harmful
emissions. Younger consumers, like Generation Z, may be more interested in
these advantages because they emphasise personal finance and environmental
sustainability.
Create Incentive Programs
That Target Generation Z Consumers
Governments
can encourage the millennial generation to purchase electric vehicles by
offering tax credits and grants for EV purchases. To make buying an electric
vehicle more accessible to members of Generation Z, governments should begin
offering tax credits and grants to reduce out-of-pocket expenses. Grants
provide direct financial assistance to help with the purchase. At the same
time, tax credits allow consumers to deduct a certain amount of the purchase
price from their taxes. Governments can lower the barrier to entry for electric
vehicles among Generation Z consumers, who may be more price-conscious than
older generations. This can be especially helpful for members of Generation Z
who are just starting in their careers and have limited financial resources
and, therefore, cannot afford the higher initial investment required to
purchase an electric vehicle outright. Governments can encourage the widespread
use of electric vehicles in addition to monetary incentives by funding the
development of charging infrastructure. The Government can do this by
installing public charging stations, encouraging businesses to set up charging
stations or funding electric vehicle R&D.
Invest in infrastructure to
Support the Adoption of Electric Vehicle.
Governments
can do their part to promote the widespread adoption of electric vehicles among
Generation Z consumers and other demographics by investing in infrastructure to
support the adoption of electric vehicles, such as installing charging stations.
Electric vehicle (EV) owners need access to charging stations so that they can
"recharge" their vehicles. It can be difficult for people who own
electric vehicles to rely on them for daily transportation or to take long
trips without enough charging infrastructure. When governments put money into
installing charging stations, they make it easier for Generation Z consumers
and other owners of electric vehicles to charge their vehicles and alleviate
range anxiety, the fear of running out of charge while driving, which can
discourage people from purchasing electric vehicles.
Governments
may fund the development of fast-charging infrastructure to facilitate
long-distance travel with electric vehicles further. There may be additional
economic gains from investing in charging station infrastructure. It can
stimulate economic growth and create new employment opportunities associated
with charging infrastructure production, installation, and upkeep. Long-term
growth of the electric vehicle market can be supported by investing in
infrastructure to facilitate widespread adoption of electric vehicles, such as
installing charging stations, which can increase purchase intention towards
electric vehicles among Generation Z consumers and even other groups.
Like many
other countries, Indonesia has lofty targets to increase the use of electric
vehicles and decrease reliance on fossil fuels. The Government has declared its
intention to expand both the production and use of electric vehicles and build
the requisite infrastructure for them. Charging stations will be installed in
public areas and popular tourist destinations, and private businesses will be
incentivized to do the same. This is all part of the Government's plan to
encourage the widespread adoption of electric vehicles. Tax breaks on the
purchase of electric vehicles for personal use and breaks on the import of
electric vehicles and components are on the Government's agenda.
Develop Education and
Awareness Campaigns of Electric Vehicles� Personal and Societal Benefits
Manufacturers
and governments can work together to increase purchase intention towards
electric vehicles among Generation Z consumers by creatineducationalon and
awareness campaigns highlighting electric vehicles' personal and societal benefits.
Consumers can be better persuaded to adopt electric vehicles if they are made
aware of the numerous advantages of these vehicles, including their lower
operating costs, lower environmental impact, and higher performance
capabilities. Education and awareness campaigns can increase consumer
understanding and acceptance of this technology by emphasizing these benefits
and dispelling myths and misunderstandings about electric vehicles. Social
media, online video, and influencer marketing are just a few marketing channels
that can be leveraged to develop such campaigns. Using social media, car
companies can promote electric vehicles' financial and environmental benefits
and share customer success stories about making the switch.
Governments
can also create awareness and education campaigns to show the public the
societal and economic benefits of investing in the electric vehicle industry,
including lowering emissions and fossil fuel use. Generation Z consumers, who
tend to be more environmentally conscious and interested in cutting-edge
technology, can be particularly receptive to these marketing campaigns.
Manufacturers and governments can aid in the long-term expansion of the
electric vehicle market by increasing purchase intent among this demographic by
implementing education and awareness campaigns emphasising electric vehicles'
personal and societal benefits. Below are examples of government campaigns for
education and awareness from some countries.
CONCLUSION
In conclusion, personal norms are
a significant factor in influencing the purchase intention of electric vehicles
among Generation Z in Jakarta. Environmental concerns and peer effects are
stimulus factors but do not have a significant relationship with purchase
intent. Generation Z has a positive outlook on EVs. However, there is still
room for improvement in marketing efforts from manufacturers, government
programs, and socialization efforts. Therefore, manufacturers should focus on
educating consumers about the benefits of electric vehicles, and the Government
should provide incentives to promote the adoption of such vehicles. Further
research is needed to explore other factors influencing purchase intent, such
as consumer knowledge and attitudes towards electric vehicles.
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