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Strategic Innovation and Consumer Preferences: An Analysis of Malaysian Hybrid Car Policy

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  • Normizan Bakar
  • Bakti Hasan-Basri

Abstract

This study analyzes the role of consumer choice in determining a strategic innovation policy. We establish an international Bertrand duopoly and conduct a choice modelling technique. The theoretical finding shows that an increase in investment in hybrid technology innovation increases the demand for hybrid cars. However, the empirical results show that consumers do not appreciate all attributes, only the hybrid battery, CO 2 emission level and the sound of hybrid engines. We suggest that the government focus on the significant attributes in order to force not only the domestic automobile firm to innovate but the vendors as well.

Suggested Citation

  • Normizan Bakar & Bakti Hasan-Basri, 2017. "Strategic Innovation and Consumer Preferences: An Analysis of Malaysian Hybrid Car Policy," Millennial Asia, , vol. 8(1), pages 64-77, April.
    • Handle: RePEc:sae:millen:v:8:y:2017:i:1:p:64-77
    DOI: 10.1177/0976399616686865
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Iskandar Hamzah & Nurul Syafiqah Tanwir & Siti Norida Wahab & Muhammad Hafiz Abd Rashid, 2022. "Consumer perceptions of hybrid electric vehicle adoption and the green automotive market: the Malaysian evidence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 1827-1851, February.

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