Relationship between green marketing on overall profitability of automotive industry of Australia: A case of electric cars

This research proposal aims to study the relationship between green marketing and overall profitability of the automotive industry of Australia, specifically focusing on electric cars. The study will include critical literature review, research methodology, ethical considerations, limitations, findings, and discussion.

Running head: Business Research Method Research Proposal
Business Research Method Research Proposal
Relationship between green marketing on overall profitability of automotive industry of
Australia: A case of electric cars
Name of Student
Course name
Course ID

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Business Research Method Research Proposal
Table of Contents
Introduction......................................................................................................................................3
Critical literature review..................................................................................................................3
Perceived behaviour control (PBC).................................................................................................7
Research methodology.....................................................................................................................7
Sample collection technologies.......................................................................................................7
Methods of data analysis.................................................................................................................8
Ethical consideration.......................................................................................................................8
Limitations of the study...................................................................................................................9
Findings...........................................................................................................................................9
Discussion......................................................................................................................................12
Recommendation & Conclusion....................................................................................................14
Reference list.................................................................................................................................15

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Business Research Method Research Proposal
Introduction
Introduction of eco-friendly and electric automobile in the global automobile industry is
definitely going to put less pressure on depletion of renewable energy. Huge emission of carbon
di-oxide and carbon products is raising the pollution level. Environmental pollution level is one
of the main concerns for the policymakers as land air and water pollution level is increasing as
the demand of the automobile is increasing. Bringing electric cars in the automobile industry will
be highly beneficial in the end, as electric vehicles will also reduce the cost of operation from the
customer’s perspectives. The study is significant because of the fact that production of electric
cars will bring more profitability for the companies like Tesla, Toyota and to highlight the up
gradation of technology. Aim of the project is to discuss the potentiality of electric vehicles in
long-run. The companies dealing with manufacturing of electric vehicles will be important to
bring high scale of revenue from the market.
Research questions
RQ1: What is relationship between green marketing of electric vehicles and revenue generation?
RQ2: What are the future impacts of the electric automobiles within the market of Australia?
Critical literature review
Hybrid cars manufacturing is biggest challenge that most of the automobile
manufacturing companies are facing. Building hybrid cars and electric cars is definitely going to
involve change in automobile industry of Australia. Increasing level of green house gas is
definitely going to create problems for the world environment. Introduction of electric vehicles is
one of the solutions that will definitely reduce the problem. Factors in the form of stringent

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emissions regulations, rising fuel prices, or financial incentives are making problems for the
expansion of market of electronic vehicle (Sierzchula et al. 2014). Now after deep analysis of the
overall market of the electronic vehicle, it has been seen that consumer subsidy is one of the
important factor that actually determines the quantity of electric vehicles and is directly linked up
with market expansion. Some of the studies have claimed that provision of subsidy to the
customers is having positive correlation with the production of electric vehicles. Some barriers
are present within the economy that actually hinders the manufacturing of electric vehicles and
these are described below.
General barriers
Economists have claimed the fact that most of the firms are very much unwilling to
invest in any public innovation that will be used mainly for private benefit. Uncertainty and
externality of positive knowledge spillovers is basically restricting them to bring innovation. In
case of Electric vehicles, the lack of demand in the niche market is basically acting as another
challenge for the improvement in the innovation (Tidd & Bessant, 2018). Bounded rationality is
another challenge that is acting as main hindrance that is holding innovations in the market of
electronic vehicles. Consumer valuation of a product's purchase price, operating expenses, and
lifetime cost are mainly indulging companies like Tesla, Nissan to bring high tech electronic
vehicles.

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Figure 1: Forecast of electric vehicles
(Source: arena.gov.au, 2019)
The diagram above is showing the fact that in order to indulge the sustainability of
environment; the demand for electric vehicle will definitely increase in the long-run. The
demand of electric vehicle will definitely increase in countries like US, Australia and even in
UK. Increasing fuel costs for the consumers will definitely be a reason that is forcing them to
switch their tastes and preferences.
Another constraint that is mainly reducing the demand of electric vehicles is lack of
charging points for the batteries that are being used in vehicles. Main determinant of price for
electric vehicles will be its battery and performances of the battery including charging time and
driving range of the vehicles. The average price of electric vehicle with 30 KWH batteries and
having approximately 85 miles of driving range will be around $10,000.

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Ajzen’s theory of planned behaviour
This theory was introduced in the year 1991 and as per this theory; effects of marketing
variables mainly determine the consumer demand of any particular products. Even the effects of
external stimuli in the form of advertisements, packaging of products, physical product
differentiation including promotion and availability is playing major role in determining the
demand of consumers.
Figure 2: Theory of planned behaviour
(Source: arena.gov.au, 2019)
Attitude to behaviour (AB)
Attitude behaviour is the sum of expected values that customers attach with the products
and services they are doing within economy. This is helpful for the companies to determine the
customer expectations that are being assigned with products. Attitude to behaviour is mainly
helping the manufactures of electric vehicles in identifying choice and techniques of electric
vehicles that being demanded by consumers. Now in order to indulge the customer identification
of electric vehicles it is important for the companies to increase hybrid vehicles that will
definitely bring in better level of resources.

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Perceived behaviour control (PBC)
Indirect impact of PBC is that PBC is having motivational impact on the consumers that
are having behavioural implications. In order to increase the demand of electric vehicles, the
producers will need to create advertisements in a creative manner that will automatically create
demand for the electric vehicles.
Research methodology
In order to indulge the smoothness within the results, choose of efficient level of
methodology is important. Through the incorporation of green marketing, the automobile
manufactures will be mainly aiming to identify the market so that customers can indulge in better
level of choice and preferences. Most of the data will be collected from secondary source of data
including various newspaper articles. Secondary data will be highly recommended for this study,
because of the fact that in order to highlight the demand of the economy regarding the
consumption of electric vehicle. It has been seen that incorporation of better level of secondary
sources of data will deal with unbiased form of data. Now in order to indulge research
methodology some of the sections are highlighted.
Sample collection technologies
Sample collection technology is not being used in this research as most of the data that
has been collected is from secondary sources. Through the incorporation of better level of
sample collection technology the effectiveness of the study will be determined. In order to
indulge the improvement in the overall sample collection technology, it can be said that green
marketing of the hybrid automobile is basically aiming to indulge the development of better level
of accessibility that will help in identification of factors that will indulge in high level of

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resource. It has been seen that in order to bring in high quality of marketing of green vehicles for
the hybrid cars will be able to increase the demand within countries like Australia and UK.
Methods of data analysis
Taking help of secondary data sources from various government websites and journals
will help them in increasing the expansion of areas that will definitely allow the companies to
build up high scale of employees. Now in order to indulge the development of high class of
demand regarding hybrid cars will help the improvement of better level of prospects within the
global automobile. Better level of research analysis will be helpful in understanding importance
of marketing and high reach of demand will definitely increase the level of resource material.
However, research methodology will include the Gannt Chart and time line that will easily help
in identifying timeline and time required for the completion of research. The quantitative and
qualitative data analysis will really help the companies in understanding the impact of demand of
customers on hybrid cars.
Ethical consideration
This section is immediately important while making research on a particular topic.
Ethical consideration is a fact that highlights that the data that are being collected from various
sources will not be used for any other purposes other than research purpose. Ethical
consideration is mainly looking into the fact that identification of the respondents who have
contributed to the development of study will not be revealed. Even the companies that have been
chosen for collection of data will also not be revealed. Through the incorporation of ethical
consideration, it has been seen that most of the data that has been collected is following Data
protection act.

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Limitations of the study
The study is having some limitations and they are discussed in the given section.
Limitation of study is mainly having problem that the study could not reach all the companies for
collection of data. If the study were being able to reach all companies dealing with the hybrid
cars then it would have determined the factors that are mainly helping in determining the demand
of hybrid cars. Even the secondary data that has been collected is mainly based on the general
market of automobile industry in countries like Australia and UK. On the other hand, costs of the
projects were another limitation that has limited the reach of the study. Through the
incorporation of extensive research it has been seen that effectiveness of the study increases.
Findings
Sales of hybrid car and electric vehicles have increased in Australia that has mostly out
spawned normal petrol vehicles within the country. The number of electric vehicle sales has
increased by huge amount in 2019 compared to the 2018.
2018 2019
0
200
400
600
800
1000
1200
1400
No of electric vehicles sales
Axis Title
Figure 3: No of sales of electric vehicles

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(Source : The new daily.com.au, 2019)
The above diagram is showing that sales of electric vehicles will increase definitely in the
long-run and in Australia the demand of electric vehicles has increased by more than four times.
One of the notable thing that has happened to the Australian economy is that people living in the
country is shifting to different platforms that will reduce pressure on the use of non-renewable
fossil fuels. Through the incorporation of hybrid cars, the economy of Australia will be able to
identify the demand and consumers are willing to shift to the hybrid and electric cars that will
indulge the efficiency and improvement of new technologies.
2018 2019
320000
330000
340000
350000
360000
370000
380000
390000
No of petrol cars
No of petrol cars
Figure 4: Selling of petrol cars in Australia
(Source : The new daily.com.au, 2019)
The above diagram is showing the fact that selling of petrol cars has decreased by huge
margin. More than double amount of petrol cars has been vanished from the market. Companies
like Tesla and Toyota had to recall many petrol vehicles due to lack of demand for them and

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inventory was building up. Almost 58% of the new vehicles that are being sold in Norway is
hybrid and electric vehicles. The hybrid Toyota RAV4, Hybrid Corolla and Mitsubishi Outlander
PHEV have hit the market, and the Hyundai Ioniq, plus the Jaguar I-Pace are pure hybrid and
battery operated vehicles. The design concepts of the hybrid cars are that they are having both
battery and engines for short and long distances (The new daily.com.au, 2019). The batteries are
being charged from braking and fuel engine is mainly used in long run. Fuel consumption is very
less for all these hybrid and electric cars. For example, the Hybrid Corolla consumes four litres
per 100km, instead of six litres per 100km for its petrol sibling. Tesla is mainly known for the
innovations that they are bringing in every time within their vehicles. Even the development of
hybrid and battery operated vehicles will definitely help the expansion of automobiles.
Implementing green marketing strategy will definitely indulge the development of better quality
of resources.
On the other hand, companies that are making hybrid automobile will definitely looking
for government incorporation so that taking help of government subsidy they can improve their
marketing position. Government must develop the niche market so that demand for hybrid and
electric cars can increase on a high note (Kotler et al. 2015). Through the incorporation of better
level of technology will definitely help in indulging better market. Expansion of business is
important for the companies to identify the demand and they will be looking to incorporate the
development of better quality of resource allocation that to be done by the companies so that they
can serve more number of customers (Schaltegge & Burritt, 2014). Government must indulge
better level of policy and subsidising that will definitely help in inducing in better level of
resources distribution.

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It has been seen that improving the customer satisfaction is deeply related with high
grade of marketing so that the automobile companies will be aiming to indulge the development
of technologies and bring them in their vehicles. On the other hand, more companies need to
operate in the market so that price can be set in a perfect manner (Wymer & Polonsky, 2015).
Presence of monopoly within the automobile industry will be definitely playing a significant role
that will create problems for customers in the end. They will charge huge amount of money from
the customers and will exercise price control on them.
Discussion
Marketing of the products will be playing crucial role in increasing the demand of hybrid
cars. Through the ways of green marketing, the companies will be aiming to increase and
improve their position in the market of automobile industry. Disruptive innovation is extremely
important for any company to bring in high rate of innovation. Now through the involvement of
better level of innovation within the industry will definitely bring in high grade of technologies
so that better level of production is possible. The first important public protection lever that
operated at the federal level was a public-private partnership: the Partnership for the New
Generation Vehicle (PNGV). In 1899, two big companies like GM, Ford and Chrysler were
given responsibility to bring in high class of technologies for the commercial vehicles
(Kushwaha & Sharma, 2016).
MITI also supported commercialization by setting up a Purchasing Incentive Program (PIP) in
1996, which subsidized 50% of the additional costs of EVs. In 1997, Japan increased its budget
for LEV incentives to $68m. While PIP was continued under the Clean Energy Vehicle program
in 1998, and extended to include HVs that helped Toyota to flourish. Bringing more and more of

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hybrid cars will not only bring change in the marketing of products but will also bring changes in
taste and preference for the customers. This is one of the important concept that has increased the
level of increased level of valuation for the companies building in hybrid cars (Marletto, 2014).
Improvements also to be made in the charging points within the city for the vehicles but it is
important because of the fact that bringing in innovation will bring better level of investment.
The Japanese press suggested that the break-even point of the Prius would be around $42,000, a
figure that was denied by Toyota’s president Okuda. ING Barings estimated losses at $6,670 per
car at a sales volume of 1,000 vehicles per month (Pinkse et al. 2014). The car was launched
with a price tag of $16,525 in Japan, basically ‘dumping’ the car below cost price. In 1997,
Daimler invested $310m in a joint venture with Ballard to further develop the fuel-cell
powertrain and produce an FCV within eight years. Subsequently, various versions were
presented and prototypes participated in test environments provided by governments, such as the
California Fuel Cell Partnership, the Japan Hydrogen and Fuel Cell Demonstration Project, the
Clean Urban Transport for Europe, and the Clean Energy Partnership.

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Recommendation & Conclusion
From the whole analysis, it is clear that in order to bring advancement within the
innovation of design and technology, the government will be definitely aiming to develop the
niche market. One of the best ways to create this niche market is to improve the customer
participation and this can be increased if the customers are given enough level of subsidy. Now it
is recommended that if both the consumers and suppliers are given subsidy then both demand
and supply will be impacted. Now in order to indulge improvement in the marketing of hybrid
automobiles, both private and public will be mainly looking to bring in better quality of
resources. Through the development of better level of marketing, companies like Tesla, Nissan,
and BMW are looking to bring in better level of marketing so that customers can get best use of
cars and through both online and offline marketing of products will definitely look to incorporate
better marketing techniques.
The whole study is concluding the fact that in order to increase the demand of the
customers in modern life. In order to minimise use of petrol and other renewable resources the
companies need to indulge more amount of better and upgraded green marketing that will
definitely increase revenue growth of the company. They will be able to increase their level of
profitability and revenue structure. This is important for them to indulge better level of green
marketing and use of green energy saving electricity will definitely increase the amount of
foreign direct investment and will allow the companies to bring in more amount of investment in
the hybrid models of automobiles. Through the incorporation of better level of marketing the
companies will be able to identify the base of customers so that they can maximise selling of
their vehicles.

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Reference list
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