Consumer preferences for business models in electric vehicle adoption

Fanchao Liao*, Eric Molin, Harry Timmermans, Bert van Wee

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

53 Citations (Scopus)
47 Downloads (Pure)

Abstract

Successful market penetration of electric vehicles may not only rely on the characteristics of the technology but also on the business models available on the market. This study aims to assess and quantify consumer preferences for business models in the context of Electric Vehicle (EV) adoption. In particular, we explore the impact of attitudes on preferences and choices regarding business models. We examine three business models in the present study: battery leasing, vehicle leasing and mobility guarantee. We design a stated choice experiment to disentangle the effect of business models from other factors and estimate a hybrid choice model. According to the results, the preferences for business models depend on the vehicle type: for battery electric vehicle (BEV), vehicle leasing is the most preferred option and battery leasing is the least preferred, while for conventional cars (CV) and plug-in hybrids (PHEV) the traditional business model of full purchase remains more popular. The attitudes of pro-convenience, pro-ownership and pro-EV leasing are all significantly associated with the choice of business models. As for mobility guarantee, we do not find any significant effect on utility. Finally, we discuss the implications for business strategy and government policy derived from our results.

Original languageEnglish
Pages (from-to)12-24
Number of pages13
JournalTransport Policy
Volume73
DOIs
Publication statusPublished - 2019

Bibliographical note

Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Keywords

  • Business model
  • Consumer preference
  • Electric vehicle
  • Leasing
  • Mobility guarantee

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