Predicting the adoption intention of hybrid cars in

Pakistan on the basis of consumer’s attitude and

his environmental concerns
Prepared by : Maria Naz
 INTRODUCTION
• The need for environment friendly products, in almost every sector, is increasing
swiftly because of the rising presence of global warming and extreme climatic
changes
• Studies have shown that cars and trucks are accountable for almost 25% of CO2
emission, while other major transportation modes are responsible for another
12%
• A prospective alternative to the dependency on standard combustion engine
vehicles is hybrid cars
• However, in a country like Pakistan, the focus of consumer on hybrid cars is
mostly because of its fuel efficiency and not because of the environmental
concern of the people. So understanding the attitude to adoption of hybrid cars is
very important.
• So this study is focusing on predicting the adoption intention of hybrid cars in
Pakistan on the basis of consumer’s attitude and his environmental concerns
 RESEARCH GAP
• A number of studies have been conducted in the past to investigate
the adoption intention of hybrid cars, but very little has been done
yet to know the impact of consumer’s attitude and his concern
towards environment on the adoption of hybrid in Pakistan
• So the research gap of this study is covering about the influence that
consumer’s attitude and his environmental concerns are having on
the purchase intention of hybrid cars in context of Pakistan by
considering consumer advantages and dis advantages if he adopts
hybrid cars.
 LITERATURE REVIEW

• A number of studies have depicted different strategies for encouraging and motivating consumers
to lessen the environmental impact of passenger transport, Athena Piteroua and Fred Steward
(2008)
• The degradation of the environment during recent years has caused the consumer’s
environmental concern to increase dramatically. Ramayah et al. 2012; Chen and Tung 2014.
• Many have also studied the positive and negatives of the consumers’ attitude and preferences
towards environment friendly cars. Nijhuis and van den Burg (2007), De Haan et al (2006), Peters
et al (2008)
• Some scholars (ShanyongWang,Jin Fan ,Dingtao Zhao ,Shu Yang and Yuanguang Fu (2014) have
also applied the Theory of Planned Behavior model (Ajzen) to discover environmental-friendly
behavior through attitude and other constructs.
• Heffner et al. (2007) discovered through his study that environmental concern is a significant
factor in the purchase of Hybrid cars and the consumers with more inclination towards saving
environment will be more likely to adopt hybrid cars because they consider the purchasing
behavior as a way to care for the environment.
 LITERATURE REVIEW CONT.
• As far as consumers’ attitude towards hybrid cars is concerned, according
to a national survey conducted by Hidrue et al. (2011) to investigate
consumers’ willingness to pay for environment friendly vehicles, consumers
with positive attitude towards these vehicles shows more intentions to
adopt the hybrid technology.
• A study by J.D. Power exposed some attitudes of hybrid owners, “Hybrid
owners tend to be proud advocates of their vehicles” (Mindset profile). As
per a psychographic profile of hybrid owners created by Mindset Media,
hybrid drivers are 78% more creative, inventive, imaginative, emotionally
sensitive and intellectually curious than the common population.
• Furthermore, it has also been found that the concern towards
environment is different among the genders, for example females have
been found to be more ecologically conscious than men. (McInyre et al.,
1993, Banerjee and McKeage, 1994).
 PROBLEM STATEMENT

“The environmental concerns regarding automotive sectors market

changing their dynamics and switching their existing technology to
advance hybrid ones but we have to find out whether this
advancement would consumer except or reject by considering many
external and internal factors which effect hybrid cars market in
Pakistani market ”
 RESEARCH OBJECTIVE

The main objective of this study is to explore in detail the influence that
the attitude of consumers and their concerns towards purchase
intentions of hybrid cars, mainly in Pakistan. Furthermore, it also
portrays the relationship between consumer intentions and other
economic factors that will impact regarding purchase decision of Hybrid
cars.
CONCEPTUAL FRAMEWORK
 HYPOTHESES
• H1: Availability towards Hybrid cars impact purchase decision
• HO: Availability towards Hybrid cars does not impact purchase decision
• H2: Environmental concern towards Hybrid cars impact purchase decision
• HO: Environmental concern towards Hybrid cars does not impact purchase
decision
• H3: Consume intensions concern towards Hybrid cars impact purchase
decision
• HO: Consume intensions concern towards Hybrid cars does not impact
purchase decision
• H4: Price concern towards Hybrid cars impact purchase decision
• HO: Price concern towards Hybrid cars does not impact purchase decision
 RESEARCH METHODOLOGY

• Research Design:
• Primary and secondary both research methods have been used extensively. The
research approaches used to investigate the subject is a combination of
quantitative (Survey Questionnaire) and qualitative (Focus groups/Interview) as
well. Primary and secondary both research methods have been used extensively.
• Population:
• The scope is currently limited to Pakistan only, so the population is from different
cities of Pakistan, aged between 25-55 years old and is inclusive of both male and
female genders.
• Sampling:
• Stratified sample technique is used with a sample size of 100 respondents.
Google forms for data collection and focus group or interviews will be there for
seeking in depth knowledge. Focus will be more on car users/Owners.
 CONTRIBUTIONS

A number of studies have been conducted in the past regarding Hybrid

cars and the factors that impact their purchase decision, as shown in
the literature review as well. However, very little work has been done in
exploring the impact of environmental concerns, consumer intensions,
price and availability on the purchase decision of hybrid cars, especially
in Pakistan. So this research will make a significant contribution in
investigating these relationships, mainly in context of Pakistan.