Identifying segments of consumers willing to buy an electric car using Choice Based Conjoint method

Abstract

Background: Whatever product we buy today, we should all take sustainability into account. This applies to everyday consumer goods, the use of environmentally friendly materials, and the field of transportation. A wide range of mobility options is available to meet modern transportation demands, and the steady increase in the number of vehicles used for daily travel has become clear in recent years. The increasing diversification of mobility needs has made car ownership – typically at least one vehicle per household – nearly indispensable. Increased traffic and the ever-increasing number of vehicles are also a threat to our environment. In addition to noise pollution, air pollution has worsened in recent decades largely because of the continuous emission of carbon dioxide from transportation. If all transport vehicles were electrically powered, urban noise and air pollution would be significantly reduced, thereby contributing to sustainability and enhancing the overall liveability of cities. However, the uptake of electric cars remains challenging due to the trade-offs involved, and there is ongoing debate regarding the extent to which they contribute to cleaner transportation.

Purpose: This paper aims to examine consumer segments from the dataset of a previously conducted online survey, based on their attribute preferences related to electric vehicle purchasing decisions.

Study design/methodology/approach: In an online questionnaire survey conducted in February 2023, we collected responses from 206 participants. Their answers enabled us to apply conjoint analysis to determine the characteristics of the ideal electric vehicle. The present study aims to identify which electric vehicle attributes are considered most important in the purchase decision-making process across different consumer groups. To achieve this, we segmented the respondents into well-defined groups, examined their preferences, and estimated the utility values associated with each sub-attribute level.

Findings/conclusions: During the segmentation process, three distinct consumer groups were identified: “City Comforters”, “Long Haul Luxers” and “Eco Hatch Explorers”. Although their preferences vary in relative weight, all three segments prioritize price, driving range, and vehicle design when considering the purchase of an electric vehicle. The analysis also presents the relative importance of attribute levels within each group.

Limitations/future research: The vast majority of respondents to the online questionnaire underlying this study were individuals with a pre-existing interest in automobiles and driving. While this target group provided valuable insights, more robust and generalizable findings could be obtained through a larger and more demographically diverse sample. Additionally, analyzing the demographic background of the identified segments could yield further meaningful insights and is therefore recommended as a promising avenue for future research. A further methodological limitation is that the applied model does not account for noncompensatory decision rules – situations in which a respondent considers one attribute so essential that it overrides all other considerations. In such cases, a respondent will consistently choose the same attribute level regardless of the trade-offs. To better accommodate this type of decision-making behavior, future studies may benefit from applying the Adaptive Choice Based Conjoint method.