According to McLeay et al. (2018), Hybrid cars (HEVs) are gasoline automobiles that adopt electric motors and high-powered batteries to increase energy efficiency. It is different with Plug Vehicles which use both gasoline and electricity or solely electricity to generate the motor, hybrid cars do not need to be plugged into an electric grid for refueling. The researchers found that one of the issues surrounding the hybrid car was that hybrid car adoption still remains low. In this article, the researchers explained the factors that influence consumer perception of hybrid cars. Perceived risk is one of the factors that affect the consumption of consumers to purchase hybrid cars. If the perceived risk associated with using hybrid cars increases, then the motivation to purchase or adopt these products are decreased. Therefore, perceived risks have large impacts on adoption decisions for the eco-friendly, high involvement of hybrid cars. From the perspective of consumer behavior, the perceived risk for new items is a multidimensional concept that includes social, financial, psychological, time risks, and network externalities risks.
First, the perceived risk that affects the adoption of hybrid cars is a social risk. Social risk refers to negative impacts linked with unfavorable opinions of other people on purchasing and use of products. This social risk is related to symbolic and affective emotions. The symbolic and affective emotional factors like social status, what is the opinions of people about you and the ability to show yourself have a large influence on the attitudes of consumers to hybrid cars. Besides, the social norms and values with opinions of reference groups have a large impact on the consumption of consumers. When consumers have negative perceptions of hybrid cars and these hybrid cars are supported by only a few people, then fewer people will adopt the hybrid cars.
Second, financial risk refers to potential financial problems which may come out while using this green electric product. Although adopting hybrid cars may get the benefits of financial while using the hybrid cars like lower fuel costs, consumers have to pay high maintenance costs for batteries and high initial purchase prices. Hence, fewer people adopt the hybrid car.
Moreover, psychological risk is also considered a perceived risk. It refers to an uncomfortable feeling generated from anticipated post-behavioral emotions of people like feeling nervous and a worry which influences consumers to adopt hybrid cars. As hybrid cars are still new products in the market and people still more depending on gasoline cars, so most people will worry about adopting this new innovative product. What consumers think is crucial in making decisions.
Next, time risk refers to the perception of consumers that the use of a hybrid car will take a long time, will perceive that it is a waste of time to adopt an innovative product. Purchasing a hybrid car needs consumers to use the time to assess the performance and characteristics of the product. Consumers require to get knowledge of how hybrid cars function and repair the problems that may happen will influence them to adopt hybrid cars and also it takes time to develop.
In addition, the network externality risk also is one of the perceived risks. It relates to the assessment of consumers to other people who in their network also use hybrid products. Most of the decisions of consumers to new adoption of products are reliant on the decisions of new product adoption of other consumers. If the consumers find that hybrid cars are less preferred by other consumers, they will not consider adopting hybrid cars as well.
Furthermore, the researchers found that the perception of the consumer of product features like product attractiveness and advantages also serve as a factor that causes hybrid car adoption remains low. Product attractiveness is about an overall assessment of new products like hybrid cars. Overall evaluation of hybrid cars relies on performances of economic like it can save money in the long run, social like becoming a proud vehicle, and so on. The aesthetic features of these green products influence product attractiveness due to car purchases are often related to the social status of the consumers. Other than that, the factors of product attractiveness that affect consumers to adopt hybrid cars are convenience, incentives like getting free parking, and other advantages like getting tax reductions and exemptions. It gives consumers a good perception of hybrid cars. If hybrid cars do not equip with those benefits, it does not promote the adoption of hybrid cars. Hybrid car adoption becomes low.
Product advantage relates to a comparison with the alternatives products which assists to find out the reason consumers prefer to use new products over existing products. Hybrid cars consist of some advantages on its characteristic compared to conventional vehicles such as reduction of fuel costs, eco-friendly and provide improved experiences of driving. If the consumers understand the benefits that hybrid cars provided, then it may influence consumers to adopt hybrid cars. Consumers’ adoption of hybrid cars depends on the perception of consumers towards that products.
Next, another factor that influences the consumption behavior of hybrid cars is consumer characteristics. Based on the researchers, the consumers purchase hybrid cars with an image consistent with their self-identity. It means that if an individual is an environmentally responsible person, he/ she is more likely to purchase eco-friendly products like hybrid cars. This kind of person will show their self-image by buying a hybrid car. In opposite, if the person is not an environmentally concern person, he/she may not consider purchasing a hybrid car because normally the price of hybrid cars is more expensive compared to other conventional vehicles. Besides, they require taking time to understand how to function this innovative new vehicle. So, they will not prefer to buy hybrid cars.
It is concluded that the reason why hybrid car adoption still remains low is because of perceived risks, perception of product features, and consumer characteristics factors. All of these factors influence the decision of consumers to purchase or use hybrid cars.