Consumer Buying Behavior of Hybrid Vehicles

Only available on StudyMode
  • Download(s) : 230
  • Published : January 26, 2012
Open Document
Text Preview
Table of Content
1.1Background of the Study2
1.2Problem Statement2
1.3Research Objectives3
1.4Significance of the Study3
1.5Scope of the Study4
2.0Literature Review5
3.0Research Methodology7
3.1Theoretical Framework7
3.2Generation of Hypothesis7


Factors that affect consumer purchase decision of hybrid vehicles (Green Vehicles) in Malaysia.


1 Background of the Study

With the air pollution level rising day by day caused by the emission from conventional vehicles, many government bodies have put in effort to enforce emission control policy since the late of 1960, and it is becoming strict with the EURO committee being the leader until today, where their emission policy and grading system being accepted or referenced worldwide even in Malaysia. The grading system based of emission cleanliness as of today is from Euro 1 to Euro 6, where Euro 1 being the worst emission standard and Euro 6 being the environmental friendly. This is the scene where most modern vehicles are fitted with catalytic converter since late 1975, a simple device that can reduce the harmful emission such as un-burn hydrocarbon and carbon monoxide by converting them into cleaner substances such as oxygen and hydrogen through chemical catalyst effect within (Tony & Andrew, 2006). The effect of this is that the rise of the awareness of fuel efficiency, as many will further relate that if fuel efficiency can be increased, then the emission can be further improved, as well as to reduce wastage. Many automobile makers has since then began development of fuel efficient engine in order to make a stand, and consequently lead to the trend of Hybrid Electric Vehicle (HEV).

2 Problem Statement

However, emission is only one environmental factor as there is other factor which bothers a driver financial aspect, the fuel and its prices. No matter the fuel is expensive and cheap, if one can travel further with a given set amount of fuel, then one can certainly save him/her some money (Tony & Andrew, 2006). And back to the environmental area, fossil fuel is non-renewable energy resources and depletion is certainly inevitable. This is why in recent years, many western automobile makers started to look into building fuel efficient vehicles, by building fuel efficient engines through various ways, most notably by downsizing the engine displacement and compensate it with force induction such as low pressure turbocharger. The effect of this implementation is that using a smaller capacity engine but can achieve the power delivery of a high capacity engine, yet with lower fuel consumption. However back in the eastern automobile industry, where the Japanese being the leader they had something else in mind, not only they wanted fuel efficiency but at the same time they wished to maximize the go green concept. Henceforth they come up with the idea of hybrid vehicle, where in general terms a vehicle is powered by 2 sources of input, which is a normal internal combustion engine, supported by an additional electric motor which requires special battery pack. The advantages of this implementation is that the fuel consumption and emission is superior over the formal, while the drawback is the maintenance and cost of replacement for faulty battery pack is very expensive. With the hybrid being the hot trend now given the promising sales figures from European countries and the USA, generally the maintenance factor is not an issue for them, however in this research we need to find out the factors that influence a buyer into considering, buying a hybrid vehicle over here in Malaysia, as the hybrid trend is still very new here in Malaysia, generally starting on the year of 2006 where Honda introduces Civic Hybrid. However with the recent tax exemption on hybrid vehicles from the Malaysia government, the trend seems to be...
tracking img