IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v154y2022ics1364032121010303.html
   My bibliography  Save this article

Product bundling for accelerating electric vehicle adoption: A mixed-method empirical analysis of Swiss customers

Author

Listed:
  • Plananska, Jana
  • Gamma, Karoline

Abstract

The adoption of electric vehicles (EVs) is accelerating. Knowing which factors determine EV purchases among the first innovative adopters, we now need to understand the preferences of wider customer segments that are currently entering the market. The bundling of EVs with additional services is one strategy for fostering EV adoption among the latter. Early studies have shown the potential of this marketing strategy for increasing EV customer acceptance. However, they often do not empirically test the identified bundles; no investigation to date has analyzed the effect of the most commonly applied bundle in practice – that of EV and charging services. We address this gap and create relevant insights for academia by conducting an online study with potential Swiss EV adopters. We applied two empirical approaches: a between-subject design experiment to study the effect of the essential bundle type on EV purchase willingness, and a choice experiment to identify the preferred bundle type of individual customer segments. We find that bundling EV and charging services increases EV purchase willingness of respondents with little prior knowledge of EVs. The choice experiment identified three customer segments that we name Tech-oriented adopters, Convenience-oriented adopters, and Likely non-adopters. They differ in the importance scores and part-worth utilities they attach to the individual attribute levels and general bundle preferences. Based on these results, we provide recommendations for policy and practice regarding how to promote and utilize bundles to foster EV purchases among later groups of adopters, and propose avenues for further research.

Suggested Citation

  • Plananska, Jana & Gamma, Karoline, 2022. "Product bundling for accelerating electric vehicle adoption: A mixed-method empirical analysis of Swiss customers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
  • Handle: RePEc:eee:rensus:v:154:y:2022:i:c:s1364032121010303
    DOI: 10.1016/j.rser.2021.111760
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032121010303
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.rser.2021.111760?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ensslen, Axel & Gnann, Till & Jochem, Patrick & Plötz, Patrick & Dütschke, Elisabeth & Fichtner, Wolf, 2020. "Can product service systems support electric vehicle adoption?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 343-359.
    2. Maren Hein & Peter Kurz & Winfried J. Steiner, 2020. "Analyzing the capabilities of the HB logit model for choice-based conjoint analysis: a simulation study," Journal of Business Economics, Springer, vol. 90(1), pages 1-36, February.
    3. Salm, Sarah & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2016. "What are retail investors' risk-return preferences towards renewable energy projects? A choice experiment in Germany," Energy Policy, Elsevier, vol. 97(C), pages 310-320.
    4. Scott Hardman & Gil Tal, 2021. "Understanding discontinuance among California’s electric vehicle owners," Nature Energy, Nature, vol. 6(5), pages 538-545, May.
    5. Ye, Fei & Kang, Wanlin & Li, Lixu & Wang, Zhiqiang, 2021. "Why do consumers choose to buy electric vehicles? A paired data analysis of purchase intention configurations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 14-27.
    6. Mukherjee, Sanghamitra Chattopadhyay & Ryan, Lisa, 2020. "Factors influencing early battery electric vehicle adoption in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 118(C).
    7. Bohnsack, René & Pinkse, Jonatan & Kolk, Ans, 2014. "Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles," Research Policy, Elsevier, vol. 43(2), pages 284-300.
    8. Hinz, Oliver & Schlereth, Christian & Zhou, Wenyan, 2015. "Fostering the Adoption of Electric Vehicles by Providing Complementary Mobility Services: A Two-Step Approach using Best-Worst Scaling and Dual Response," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 77138, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    9. Harlam, Bari A. & Krishna, Aradhna & Lehmann, Donald R. & Mela, Carl, 1995. "Impact of bundle type, price framing and familiarity on purchase intention for the bundle," Journal of Business Research, Elsevier, vol. 33(1), pages 57-66, May.
    10. Paula Brezovec & Nina Hampl, 2021. "Electric Vehicles Ready for Breakthrough in MaaS? Consumer Adoption of E-Car Sharing and E-Scooter Sharing as a Part of Mobility-as-a-Service (MaaS)," Energies, MDPI, vol. 14(4), pages 1-25, February.
    11. Freitas Gomes, Icaro Silvestre & Perez, Yannick & Suomalainen, Emilia, 2020. "Coupling small batteries and PV generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).
    12. Costa, C.M. & Barbosa, J.C. & Castro, H. & Gonçalves, R. & Lanceros-Méndez, S., 2021. "Electric vehicles: To what extent are environmentally friendly and cost effective? – Comparative study by european countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    13. Hackbarth, André & Madlener, Reinhard, 2016. "Willingness-to-pay for alternative fuel vehicle characteristics: A stated choice study for Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 89-111.
    14. Li, Wenbo & Long, Ruyin & Chen, Hong & Geng, Jichao, 2017. "A review of factors influencing consumer intentions to adopt battery electric vehicles," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 318-328.
    15. Petrovich, Beatrice & Hille, Stefanie Lena & Wüstenhagen, Rolf, 2019. "Beauty and the budget: A segmentation of residential solar adopters," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    16. Kester, Johannes & Noel, Lance & Zarazua de Rubens, Gerardo & Sovacool, Benjamin K., 2018. "Policy mechanisms to accelerate electric vehicle adoption: A qualitative review from the Nordic region," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 719-731.
    17. Pons-Seres de Brauwer, C. & Cohen, J.J., 2020. "Analysing the potential of citizen-financed community renewable energy to drive Europe's low-carbon energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    18. Vuichard, Pascal & Stauch, Alexander & Wüstenhagen, Rolf, 2021. "Keep it local and low-key: Social acceptance of alpine solar power projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    19. Priessner, Alfons & Sposato, Robert & Hampl, Nina, 2018. "Predictors of electric vehicle adoption: An analysis of potential electric vehicle drivers in Austria," Energy Policy, Elsevier, vol. 122(C), pages 701-714.
    20. Wustenhagen, Rolf & Markard, Jochen & Truffer, Bernhard, 2003. "Diffusion of green power products in Switzerland," Energy Policy, Elsevier, vol. 31(7), pages 621-632, June.
    21. Zarazua de Rubens, Gerardo, 2019. "Who will buy electric vehicles after early adopters? Using machine learning to identify the electric vehicle mainstream market," Energy, Elsevier, vol. 172(C), pages 243-254.
    22. Spiller, Pablo T & Zelner, Bennet A, 1997. "Product Complementarities, Capabilities and Governance: A Dynamic Transaction Cost Perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(3), pages 561-594, September.
    23. Haiyan Shan & Chen Zhang & Guo Wei, 2020. "Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain," Sustainability, MDPI, vol. 12(4), pages 1-25, February.
    24. Gnann, Till & Stephens, Thomas S. & Lin, Zhenhong & Plötz, Patrick & Liu, Changzheng & Brokate, Jens, 2018. "What drives the market for plug-in electric vehicles? - A review of international PEV market diffusion models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 158-164.
    25. Priessner, Alfons & Hampl, Nina, 2020. "Can product bundling increase the joint adoption of electric vehicles, solar panels and battery storage? Explorative evidence from a choice-based conjoint study in Austria," Ecological Economics, Elsevier, vol. 167(C).
    26. Li, Jingjing & Jiao, Jianling & Tang, Yunshu, 2020. "Analysis of the impact of policies intervention on electric vehicles adoption considering information transmission—based on consumer network model," Energy Policy, Elsevier, vol. 144(C).
    27. William James Adams & Janet L. Yellen, 1976. "Commodity Bundling and the Burden of Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(3), pages 475-498.
    28. Haustein, Sonja & Jensen, Anders Fjendbo & Cherchi, Elisabetta, 2021. "Battery electric vehicle adoption in Denmark and Sweden: Recent changes, related factors and policy implications," Energy Policy, Elsevier, vol. 149(C).
    29. Martínez-Lao, Juan & Montoya, Francisco G. & Montoya, Maria G. & Manzano-Agugliaro, Francisco, 2017. "Electric vehicles in Spain: An overview of charging systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 970-983.
    30. Chen, Chien-fei & Zarazua de Rubens, Gerardo & Noel, Lance & Kester, Johannes & Sovacool, Benjamin K., 2020. "Assessing the socio-demographic, technical, economic and behavioral factors of Nordic electric vehicle adoption and the influence of vehicle-to-grid preferences," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    31. Sierzchula, William & Bakker, Sjoerd & Maat, Kees & van Wee, Bert, 2014. "The influence of financial incentives and other socio-economic factors on electric vehicle adoption," Energy Policy, Elsevier, vol. 68(C), pages 183-194.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adu-Gyamfi, Gibbson & Song, Huaming & Nketiah, Emmanuel & Obuobi, Bright & Wu, Qin & Cudjoe, Dan, 2024. "Refueling convenience and range satisfaction in electric mobility: Investigating consumer willingness to use battery swap services for electric vehicles," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    2. Yang, Anni & Liu, Chenhui & Yang, Di & Lu, Chaoru, 2023. "Electric vehicle adoption in a mature market: A case study of Norway," Journal of Transport Geography, Elsevier, vol. 106(C).
    3. Sharda, S. & Garikapati, V.M. & Goulias, K.G. & Reyna, J.L. & Sun, B. & Spurlock, C.A. & Needell, Z., 2024. "The electric vehicles-solar photovoltaics Nexus: Driving cross-sectoral adoption of sustainable technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goel, Pooja & Kumar, Aalok & Parayitam, Satyanarayana & Luthra, Sunil, 2023. "Understanding transport users' preferences for adopting electric vehicle based mobility for sustainable city: A moderated moderated-mediation model," Journal of Transport Geography, Elsevier, vol. 106(C).
    2. Priessner, Alfons & Hampl, Nina, 2020. "Can product bundling increase the joint adoption of electric vehicles, solar panels and battery storage? Explorative evidence from a choice-based conjoint study in Austria," Ecological Economics, Elsevier, vol. 167(C).
    3. Yang, Anni & Liu, Chenhui & Yang, Di & Lu, Chaoru, 2023. "Electric vehicle adoption in a mature market: A case study of Norway," Journal of Transport Geography, Elsevier, vol. 106(C).
    4. Ruoso, Ana Cristina & Ribeiro, José Luis Duarte, 2022. "An assessment of barriers and solutions for the deployment of electric vehicles in the Brazilian market," Transport Policy, Elsevier, vol. 127(C), pages 218-229.
    5. Gulnaz Ivanova & António Carrizo Moreira, 2023. "Antecedents of Electric Vehicle Purchase Intention from the Consumer’s Perspective: A Systematic Literature Review," Sustainability, MDPI, vol. 15(4), pages 1-27, February.
    6. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    7. LaMonaca, Sarah & Ryan, Lisa, 2022. "The state of play in electric vehicle charging services – A review of infrastructure provision, players, and policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).
    8. Khatua, Apalak & Ranjan Kumar, Rajeev & Kumar De, Supriya, 2023. "Institutional enablers of electric vehicle market: Evidence from 30 countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    9. Patyal, Vishal Singh & Kumar, Ravi & Kushwah, Shiksha, 2021. "Modeling barriers to the adoption of electric vehicles: An Indian perspective," Energy, Elsevier, vol. 237(C).
    10. Zimm, Caroline, 2021. "Improving the understanding of electric vehicle technology and policy diffusion across countries," Transport Policy, Elsevier, vol. 105(C), pages 54-66.
    11. Konstantina Anastasiadou & Nikolaos Gavanas, 2022. "State-of-the-Art Review of the Key Factors Affecting Electric Vehicle Adoption by Consumers," Energies, MDPI, vol. 15(24), pages 1-23, December.
    12. Brückmann, Gracia, 2022. "Test-drives & information might not boost actual battery electric vehicle uptake?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 160(C), pages 204-218.
    13. Kamile Petrauskiene & Jolanta Dvarioniene & Giedrius Kaveckis & Daina Kliaugaite & Julie Chenadec & Leonie Hehn & Berta Pérez & Claudio Bordi & Giorgio Scavino & Andrea Vignoli & Michael Erman, 2020. "Situation Analysis of Policies for Electric Mobility Development: Experience from Five European Regions," Sustainability, MDPI, vol. 12(7), pages 1-21, April.
    14. Peng, Ruoqing & Tang, Justin Hayse Chiwing G. & Yang, Xiong & Meng, Meng & Zhang, Jie & Zhuge, Chengxiang, 2024. "Investigating the factors influencing the electric vehicle market share: A comparative study of the European Union and United States," Applied Energy, Elsevier, vol. 355(C).
    15. Goldschmidt, Rüdiger & Richter, Andreas & Pfeil, Raphael, 2019. "Active stakeholder involvement and organisational tasks as factors for an effective communication and governance strategy in the promotion of e-taxis. Results from a field research lab," Energy Policy, Elsevier, vol. 135(C).
    16. Caulfield, Brian & Furszyfer, Dylan & Stefaniec, Agnieszka & Foley, Aoife, 2022. "Measuring the equity impacts of government subsidies for electric vehicles," Energy, Elsevier, vol. 248(C).
    17. Lopez, Neil Stephen & Tria, Lew Andrew & Tayo, Leo Allen & Cruzate, Rovinna Janel & Oppus, Carlos & Cabacungan, Paul & Isla, Igmedio & Ansay, Arjun & Garcia, Teodinis & Cabarrubias-Dela Cruz, Kevien &, 2021. "Societal cost-benefit analysis of electric vehicles in the Philippines with the inclusion of impacts to balance of payments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    18. Gönül, Ömer & Duman, A. Can & Güler, Önder, 2021. "Electric vehicles and charging infrastructure in Turkey: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    19. Jaiswal, Deepak & Deshmukh, Arun Kumar & Thaichon, Park, 2022. "Who will adopt electric vehicles? Segmenting and exemplifying potential buyer heterogeneity and forthcoming research," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    20. Li, Wenbo & Long, Ruyin & Chen, Hong & Yang, Tong & Geng, Jichao & Yang, Muyi, 2018. "Effects of personal carbon trading on the decision to adopt battery electric vehicles: Analysis based on a choice experiment in Jiangsu, China," Applied Energy, Elsevier, vol. 209(C), pages 478-488.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:154:y:2022:i:c:s1364032121010303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.