TABLE OF CONTENT
FACTORS INFLUENCING CONSUMER BUYING DECISION TOWARDS GREEN TECHNOLOGY CARS IN MALAYSIA.
Introduction
The purpose of this study is to investigate the Factor Influencing Consumer Buying Decision towards Green Technology Cars in Malaysia.
1.1 Research Aim & Objectives
The aim of this study to examine the influence of different variables that could influenced the achievement of green technology car buying decision in Malaysia
Particular Objectives:-
To examine the influence of awareness on green technology car buying decision
To examine the influence of fuel efficiency on green technology car buying decision
To examine the influence of performance attribute on green technology car buying decision
To examine the influence of environment benefit on green technology car buying decision
RESEARCH QUESTIONS
What is the influence of awareness on green technology car buying decision?
What is the influence of fuel efficiency on green technology car buying decision?
What is the influence of performance attribute on green technology car buying decision?
What is the influence of environment benefit on green technology car buying decision?
LITERATURE REVIEW
DEFINITION OF KEY CONCEPTS
Consumer Buying Decision
Consumer buying decision is respected to be that specific the action which an individual makes during the time spent obtaining and utilizing products and services (Metha, 2015). Consumer decision is defined as the decision that consumer shows in the scanning for purchasing, utilizing, assessing, and discarding of the products and services that they expect will fulfill their requirement while Consumer decision spotlights on how consumer settle the decisions to spend their available resources on utilzation related item.(Musyoki,2012). Consumer buying decision is regarded to be the multi-step decision-making process where individuals partake in it and it additionally incorporate the moves consumers make to fulfill their requirement and need in the commercial center and fundamentally focused on consumer buying decision, in that the customer plays three bacis roles: user, payer as well as buyer (Kotler, 2008).
Green Technology Car
Green Technology vehicles are considered as a viable mechanical advancement to decrease vitality utilize and ozone harming and greenhouse gas emission, which has raised incredible consideration among the government and car makers. (Wang & Liu, 2015). Green Technology vehicles are vitality given by a battery, which have a zero-emission potential when power is delivered with the utilization of sustainable power sources (Gondelach & Faaij, 2012). Joshi and Rao (2013) described green technology vehicle accepted to be environmentally friendly and have lesser degree a stinging impact on the environment than conventional vehicles. He also highlighted that green vehicle debilitates less emissions and wastes than regular vehicle or use maintainable vitality sources to fuel its engine.
The definitions below reflect the factors influencing consumer buying decision towards green technology cars
Awareness
The level of awareness among consumers greatly importance to the carmakers as they require to bear the greatest responsibility to make the consumers understand the need for and benefits of green technology automobiles as compared to non-green ones and motivate them to pay more to keep up a cleaner and greener environment (Sharma & Maheshwari, 2014)
Fuel Efficiency
Austin and Dinan (2005) assume that consumers fully value lifetime fuel savings when considering fuel economy in their vehicle choices. Growing awareness of fuel-efficient and alternative fuel vehicles, and consumer research indicates a growing interest in purchasing more fuel efficient and low emissions “greener” vehicles. (Tan & Govindan, 2014)
Attribute Performance
Environment Benefit
Harmful gases discharged contaminated the quality of air and wastes in material production of automobiles contribute a lot towards harming the environment. Fuel consumption prompts to ozone harming substance outflow and causing atmosphere changes which may cause irreversible loss and offset to the economic development of a country, even worst it can also cause social instability (Mansor et al., 2014)
CRITICAL REVIEW OF KEY THEORIES
2.2.1 Nicosia Model (1966)
Nicosia’s model of buyer behaviour (Nicosia, 1966) is credited as the primary comprehensive model of buyer behaviour (for example, see Jones, Shaw, ; McClean, 2011). Nicosia’s model comprises of four ‘fields’, starting with the communication of information to affect the buyer’s attitude (influenced by firm attributes and buyer attributes, notably buyer predispositions), followed by a search and assessment process, a decision, and outcomes in terms of behaviour, utilization, storage, experience and input. Nicosia’s formulation of the process to incorporate an iterative, or repurchase cycle is essential for conceptual framework development and very relevant to the services context. (Milner & Rosenstreich 2013).However, a major limitation of the Nicosia model is that it is from the marketer’s perspective rather than the consumer’s, with consumer activities only very broadly defined. There has also been little empirical work to support the model, whereas there is much empirical work to suggest that relationships depicted in the model are not in fact valid (Tuck, 1976).
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2.2.2 Engel-Kollat-Backwell Model (1968)
Engel, Kollat and Backwell developed in year 1968 and this describe this model the increasing, fast-growing body of knowledge concerning consumer behavior on decision. They also define consumer behaviour as a summation of acquisition, consumption and disposal of products or services. However, such definition falls short of the continuity of the processes. One of the strengths of the revised model is the feedback or ‘search’ loop, which allows for iterations of partial decision-making. While the decision-making process may be undertaken, there may exist no intent to purchase and thus the decision process may be halted or postponed at any point, providing feedback for use as inputs next time a need is aroused.
At the core of this model is a clear flow of tasks which depicts an idealistic decision-making process where the individual knows that there is a problem with a consumer solution but has little ‘other knowledge’ of the area
Limitation of the model is the implicit assumption that consumers have the capacity to evaluate the alternatives and make a rational judgment on the best suited alternative. Bray (2008) sums up general criticisms of the model by noting it that its mechanistic approach does not apply well to varied decision-making contexts. He also notes that the environmental and consumer variables, and their mechanisms for influencing decision-making, have not been clearly specified (Bray, 2008).
2.2.3 Howard and Sheth Model (1969)
The Howard and Sheth (1969) model presented an advance at the time because of an enhanced level of specificity in terms of the relations between variables, for example, the model notes not only that attitude influences purchase, but also that intention is a moderating variable (Hunt & Pappas, 1972).
The model is also notable for including a wide range of inputs into the process in terms of marketing variables and social influences, which is an important step towards current input-process-output models.
The model depicted a flow of information that moved through four main components: 1) inputs (marketing and social stimuli), 2) perceptual constructs (attention and information search), 3) learning constructs (motives, choice criteria, brand comprehension, leading to an attitude, confidence, intention, and satisfaction), and 4) outputs (purchase, intention, attitude, brand comprehension and attention) (Howard & Sheth, 1969). A fifth element, exogenous variables (importance of the purchase; the consumer background, reference groups, personality traits; time available; and financial status), was included as an influence on the perceptual and learning constructs rather than being part of the information flow itself (Howard & Sheth, 1969).
By being more comprehensive, the Howard and Sheth (1969) model certainly achieves a sense of the complexity of the process, with multiple variables with multiple relationships to internal processes and external triggers and information sources. Concepts such as attitude formation, predisposition and time were introduced as well as an overarching sense of perceptual constructs and learning constructs. Paradoxically, the complexity of the Howard and Sheth model is also one of its shortcomings.
2.2.4 McCarthy, Perreault, and Quester Model (1997)
The McCarthy, Perreault, and Quester (1997) model of consumer decision-making, or a variant of it, appears in most 21st century introductory marketing and consumer behaviour textbooks (for example, Kotler & Armstrong, 2010; Neal, Quester, & Hawkins, 2006). Essentially the McCarthy et al. model is a modification of the Engel et al. model with some minor changes and clarifications. The McCarthy et al. (1997) model has been able to group like constructs in a form with logical simplicity while remaining comprehensive. It does however display some of the weaknesses that are common to the models that preceded it, such as: depicting a linear process; depicting a limited and counter-intuitive influence of social and situational variables (they are shown as only impacting only on need want awareness); and not clearly indicating the manner in which psychological variables influence the process.
There are indications that complex decisions, which can take many years to develop, may not follow the path of arousal, search, evaluate and choice but rather sample the components in magnitude and the direction as experienced by the consumer (Harrison et al., 2006; Malhotra, 1982; Witte, 1972).
2.2.5 Technology Acceptance Model (TAM)
Technology Acceptance Model (TAM) was first introduced and developed by Fred Davis in 1986. TAM is considered as an influential extension of theory of reasoned action (TRA) (Ajzen and Fishbein, 1980). According to TAM, one’s actual use of technology system is influenced directly or indirectly by the user’s behavioural intentions, attitude, perceived usefulness of the system, and perceived ease of the system. TAM also proposes that external factors affect intention and actual use through mediated effects on perceived usefulness and perceives ease of use. Two cognitive beliefs are posited by TAM: perceived usefulness and perceived ease of use. Perceived Usefulness indicates the extent to which individuals believe the use of particular systems would improve their job performance, whereas the factor perceived ease of use indicates to which extent individuals believe the use of particular system will be free by effort (Ambak et al., 2013).
Technology Acceptance Model is a widely known and useful model to study behavior intention related to Information Technology and technological products.
2.3 CRITICAL REVIEW OF CURRENT RESEARCH
There are several empirical studies lead by researchers on Factor Influencing consumer Buying Decision towards Green Technology Cars in Malaysia. Bettis, et. al, (2014) defined empirical researches support the researcher to compile data and further recognize the primary variables that could bolster the creation of theoretical framework for this research.
Sharma & Maheshwari (2014) did a research titled “A Study on the Customer’s Awareness and Perception Level towards Green Cars.” The object of this paper is to center around examining the mindfulness level and the impression of clients towards condition agreeable practices of cars in India. The research applied questionnaire form and 200 responses aged between 20-50years were gathered in the retail locations of Kolkata city. The variables are cost, environment, and awareness. Estimating the level of awareness of customers has been of extraordinary significance to the marketers as they have to hold up the best obligation to influence the consumers to comprehend the requirement for and advantages of eco-friendly automobiles as compared to non-green ones and motivate them to pay more to keep up a cleaner and greener environment.
Mansor et. al (2014) did a research titled “Consumers’ Acceptance towards Green Technology in Automotive Industries in Malacca, Malaysia.” This research aim at revealing buying decision on vehicle embracing green technology testing on sample of regression is used. The questionnaires has been partitioned into four a few attributes of purchasing item (environment benefit, benefit to self, comparative cost and attainable cost) by private automobiles owners which centering in Malacca. Four research questions have created to accomplish the point of this study. This study uses semi-structured interview as a method of data collection. Based on randomly approach and surveying distribution, only 200 respondents which are chosen. This research, it is uncovered that customers’ aim to purchase green vehicle in Malaysia relies upon their observation on environmental benefits, benefit-to-self, attainable cost and comparative cost. The research uncovers that Malaysian consumers acknowledgment of environmental friendly products are still low, hence, this research provides future understanding to the industries on consumers level of expectation to buy green technology based car and how to move further in the technology is prescribed.
Sanitthangkul et. al (2012) did a research titled “Factors Affecting Consumer Attitude toward the Use of Eco-car Vehicles”. The purpose of this paper aims at determining the factors influencing the attitudes of consumers towards eco-cars and their decision on using eco-cars The study used sample of 560 respondents of car users in Bangkok, Thailand is collected and analyzed using multivariate analysis. The variables are Personal factors (gender, age, status, occupation, education, salary) and car usage behavior (car types, fuel expenditure, gasoline types, and energy conservation) have influence on the attitudes of consumers towards eco-car and influence decision to use eco-cars. The results confirm the hypothesis that attitude of car users on eco-cars plays an important role in determine decision of using eco-cars.
Sang ; Bekhet (2015) did research titled “Exploring Factors Influencing Electric Vehicle Usage Intention: An Empirical Study in Malaysia.” The rationale of this study is to investigate the factors influencing electric vehicle usage intention in Malaysia. Empirical study using survey questionnaires are distributed to a judgment sampling of 500 drivers in Selangor and Federal Territories (Kuala Lumpur and Putrajaya). Variables such as environmental concern, consumer knowledge, psychological benefits, infrastructure readiness and demographics to be investigated in this study. The outcome of this study contributes a better understanding in extending green technologies in the automotive sectors and examined the rationales for accepting or rejecting electric vehicle usage by the public. The model developed in this study was able to explain 47.7% of the variance in public intention to use electric vehicle in Malaysia. Appropriate interventions can be undertaken to expedite the growth of the usage of energy efficient vehicles to tackle the dependency on fossil fuel and to reduce the emissions within the automotive sector in Malaysia
Wang ; Liu (2015) did a research titled “Key factors influencing consumers’ willingness to purchase electric vehicles in China”. This paper investigates the online potential consumers of electric vehicles, analyze the main factors that influence the willingness of consumers to purchase and provide references for government policies and marketing strategies. This Study using survey questionnaires and distributed to 1206 those are private car owners, who are the potential consumers of electric vehicles. The research variables consist of the Demographics, Personality Characteristics, Perceived Risks, Performance Attributes, Financial Benefits, Marketing Effectiveness, Charging Infrastructure, Government Policies and Social Influence. The investigation of consumers’ willingness to purchase electric vehicles shows that more than 90% of the respondents express their willingness to purchase electric vehicles. The proportion of respondents willing to buy electric vehicles as a second car (47.7%) is higher than that of respondents willing to buy electric vehicles to replace traditional fuel vehicles (44%). To summarize, we find the correlations between the demographic variables and consumer willingness to purchase EVs. Except the gender variable, the variables of age, occupation, education level and annual income are all significantly different by category in willingness to purchase.
Tan & Govindan (2014) did a research titled “Emerging Issues in Car Purchasing Decision”. The objective of this study is to identify the factors influencing consumer buying behavior towards national automobiles in the Malaysian perspective. The sample sizes of this study are 171 out of 200 targeted respondents through online questionnaire with 85.5% return rate. This study focused on the determinant of consumers buying behaviour towards national cars in Kuala Lumpur with their rapid growth in car ownership. The independent variables in this study consist of four dimensions, namely reliability, safety, fuel economy, and price. The result indicates that the three independent variables of car’s reliability, safety, and price significantly influence consumer buying behavior towards national cars in Kuala Lumpur.
Neizari et al. (2017) did a research titled “A Study on Hybrid Car Purchasing Intention”. This study considered four main factors that affect the purchasing intention of a hybrid cars– price sensitivity, environmental awareness, green perceived value and green trust. A quantitative survey was given to 380 respondents in universities in Malaysia. The data were subjected to statistical analyses with SPSS. Multiple linear regression was used to analyze the influence of the four factors on the intention to purchase a hybrid car. The results show that price sensitivity and green trust have a significant impact on hybrid car purchasing intention while there is no such impact from green perceived value and environmental awareness.
2.5 SUMMARY OF VARIABLES
Title of the Article Variables Source
1 A Study on the Customer’s Awareness and Perception Level towards Green Cars a. cost
b. environment
c. awareness Sharma & Maheshwari (2014)
2 Consumers’ Acceptance towards Green Technology in Automotive Industries in Malacca, Malaysia a. environment benefit,
b. benefit to self,
c. comparative cost
d. attainable cost Mansor et. al (2014)
3 Factors Affecting Consumer Attitude toward the Use of Eco-car Vehicles. a. personal factors
b. car usage behavior Sanitthangkul et. al (2012)
4 Exploring Factors Influencing Electric Vehicle Usage Intention: An Empirical Study in Malaysia. a. environmental concern
b. consumer knowledge
c. psychological benefits
d. infrastructure readiness
e. demographics Sang ; Bekhet (2015)
5 Key factors influencing consumers’ willingness to purchase electric vehicles in China a. demographics
b. personality characteristics
c. perceived risks
d. performance attributes
e. financial benefits,
f. marketing effectiveness
g. charging infrastructure
h. government policies
i. social influence Wang & Liu (2015)
6 Emerging Issues in Car Purchasing Decision a. reliability
b. safety
c. fuel economy
d. price Tan & Govindan (2014)
7 A Study on Hybrid Car Purchasing Intention price sensitivity
environmental awareness
green perceived value
green trust Neizari et al. (2017)
2.5 RESEARCH GAP
The empirical studies are generally led utilizing primary data with a blend of review and meetings (Thongmak, 2016; Hussain, 2014; Chulmo Koo, 2013; Wabwoba, 2012; Weng and Lin, 2011) aside from one research using secondary data of existing literature (Weber & Kauffman, 2011). As indicated Xaquín Perez Sindin (2017), secondary data comes with two disadvantages; (1) 1) there is an absence of control over information quality and because of this the information requires extra approval and (2) unfitness of information where the wellsprings of secondary data might convey gigantic measures of data, anyway the amount isn’t the same with fittingness.
Several limitations were recognized for these empirical studies such as small sample size (Chulmo Koo, 2013). A research with a small sample size has a potential low factual power which decreases the opportunities of recognizing a true impact (Katherine S. Button, et. al., 2013). ). One of the examination has likewise summed up to the young populace in view of the reactions gathered from one college and despite the fact that the outcome bolsters the writing, it’s solitary judicious to reach conditional inference (Thongmak, 2016). The other constraint is the inaccessibility of target estimations came about to a dependence on emotional reactions of the examples (Weng and Lin, 2011) and this investigation may experience the ill effects of respondent biasness. Additionally, the examinations directed in a particular nation may restrict the speculation of the investigation, since various nations may have diverse conclusions from the present examination (Weng and Lin, 2011).
Generally speaking, none of these investigations have concentrated on multinational associations particularly in Malaysia. Henceforth, this exploration would center on a few multinational associations from different areas.
2.6 ADOPTED CONCEPTUAL FRAMEWORK
2.7 FORMULATION OF HYPOTHESIS
H1: Awareness has positive significant influence on Green Technology car buying decision
H2: Fuel efficiency has positive significant influence on Green Technology car buying decision
H3: Performance Attribute has positive significant influence on Green Technology car buying decision
H4: Environmental has positive significant influence on Green Technology car buying decision
METHODOLOGY
RESEARCH PARADIGM
Research is a vital investigation of a point to identify new factors or tests new recommendations; the action of discovering data relating to something that intrigued by or need to investigate (Kim,2003). “Paradigm characterized a fundamental accumulation of convictions shared by researchers, an arrangement of assentions about how issues are to be seen, how we locate them and how to approach leading exploration (Creswell, 2003). These ideal models convey an essential arrangement of sentiment or suspicions that guide our tasks for particular research (Guba and Licoln, 2005). As per Mingers and Willcocks (2004) there are four worldview that have been extensively utilized in data framework inquire about incorporate Positivism, Interpretive, Advocacy and Pragmatism.
The supporters of positivist paradigm assume that right dread can be resolved through examination and investigation (Rahi 2017). The positivist paradigm usually picked logical framework to manufacture information. Positivist known as Scientific Method, Empirical Science, Post Positivism and Quantitative Research (Levine et al, 1987). This examination will gather information through questionnaires, and it is appropriate to utilize Quantitative Research directed hence positivism is chosen.
RESEARCH DESIGN AND STRATEGY
According to Kothari (2004), research design is to give for the collection of relevant proof with minimal outlay of effort, time and money. Research purpose is key to achieve this. Research purposes can be classified into four classes which are Exploratory, Descriptive, Explanatory and Diagnosis. This research will adopt Explanatory Design because this design useful to explain why and how the situation or scenario work. Therefore, this research will identify of determinants of variables (awareness, cost, technology, efficiency environment and green technology)
DATA COLLECTION
According to Kothari (2004), there are various way of gathering the suitable data which differ considerably in context of in money value, time and other support at the disposal of the researcher. Primary data can be gathered either through experiment or through survey. If the researcher conduct investigation, notify some quantitative measurements, or the data, with the help of which he examines the truth contained in his hypothesis. Btw, data can be gathered by observation, interview and questionnaire. Interview session incurred high in cost, time constrain and need repeating session this research will use questionnaire and why questionnaire and not interview
DATA INSTRUMENT
This research will collect data through questionnaires. A Likert Range Scales are usually used to compute the observations and attitudes (Buttle F, 1996). Questionnaire will be used to scale responses from respondents. Five points (1~5) scales will be applied for respondent to respond the statement if the agree or otherwise (McLeod, 2008.)
Questionnaire Development:
Variable Sub-Variable Source
Green Technology Hybrid, electrical, eco-friendly Mansor et. al (2014), Sanitthangkul et. al (2012)
Awareness Training, legal, policy Sharma & Maheshwari (2014),
Sang & Bekhet (2015)
Cost Affordability, worth for value Mansor et. al (2014)
Technology Equipment, tool, machines, Sharma & Maheshwari (2014
Efficiency process, method Chian et al. (2017),
Environment CO2 Sharma & Maheshwari (2014)
TARGET POPULATION
This research will collect data from consumers or users who drive green technology vehicle and collecting their answers and analyze what’s will be the determinants that adopting green technology in automobile industry. Target Population would be 150 from Malaysian customers or users.
SAMPLE SIZE AND SAMPLING METHOD
ACCESSIBILITY AND ETHICAL ISSUES
DATA ALAYSIS PLAN
RESULT, ANALYSIS ; DISCUSSION
REFERENCE
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Nusaibah Mansor, Siti Norbaya Yahaya, Nurul Zarirah Nizam ; Yasuo Hoshino (2014), Consumers’ Acceptance towards Green Technology in Automotive Industries in Malacca, Malaysia, International Journal of Business Administration,5(1),Pp27-30, retrieved online http://dx.doi.org/10.5430/ijba.v5n1p27Dr. R. P. Sharma, Ms. Namrata Maheshwari (2014)
Yew-Ngin San, Ali Bekhet (2015) EXPLORING FACTORS INFLUENCING ELECTRIC VEHICLE USAGE INTENTION: AN EMPIRICAL STUDY IN MALAYSIA, International Journal of Business and Society, Vol. 16 No. 1, 2015, 57 – 74 retrieved online https://www.researchgate.net/…/275648391_Exploring_factors_influencing_electric_ve…
Gerssen-Gondelach, S.J.; Faaij, A.P.C. Performance of batteries for electric vehicles on short and longer term. J. Power Sources 2012, 212, 111–129.
Kotler, P. (2008). Marketing management, 5th, North-western publication, USA.
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Trenton Milner ; Daniela Rosenstreich (2013), A review of consumer decision-making models and development of a new model for financial services, Journal of Financial Services Marketing, 18 (2), 106-120.Retrived online https://ro.uow.edu.au/cgi/viewcontent.cgi?referer=https://www.google.com/;httpsredir=1;article=1404;context=gsbpapersMohammad Mehdi Neizari, Ashkan Nikandish ; Behrang Samadi (2017) , A Study on Hybrid Car Purchasing Intention, International Journal of Business and Social Science, 8(12), Pp 1-11 Retrieved online
