Factors Influencing Customer Buying Decision on Electric Cars

AN INVESTIGATION INTO THE FACTORS THAT
INFLUENCE THE CUSTOMERS BUYING
DECISION ON ELECTRIC CARS
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ABSTRACT
The main purpose of conducting the current study is to carry out detailed information
about the various factors that influence decision making process of customers towards buying
electric cars. This reports has taken out data which shows that why electric cars are more
beneficial for the environment in comparison of conventional vehicles. Electric cars have the
power to protect the environment as well as benefit the society. This report has used qualitative
methods for collecting data. This helps in carrying out in-depth insights about the impact of
electric cars over purchasing behaviour of customers. It has dependent upon secondary sources to
gather information such as books, newspapers, articles, publications, journals and many more.
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ACKNOWLEDGEMENT
I am grateful that I received an opportunity to conduct an investigation. Conducting a
research paper requires great knowledge and skill and my supervisor has shown this confidence
on me. I am thankful to my supervisor who has helped me in determining the right research topic
so that I can get ample information to meet pre-defined research aim, objectives and questions.
My professor and supervisor have checked my each draft copy so that chance of mistakes could
be avoided.
I am also thankful to my family, relative and friends who have shown their support by supporting
me emotionally. They have helped me to keep my confidence and work hard on my research
work.
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CHAPTER 1: THE INTRODUCTION
1.1 Background to the research
Customer buying behaviour acquaints with the move or choice made by clients prior to
buying a help or item (Amron, 2018). An association actually should give quality in their items
and administrations, utilize successful foundation of virtual entertainment, give alluring plan in
the item and numerous other. These are fundamental viewpoints that will be gainful for an
association in changing purchasing conduct of the clients.
There are likewise a few factors that have impacted the purchasing choice of clients
towards electronic vehicles. These elements incorporate individual, social, advertising, mental
and some more. Alongside this, changing purchasing conduct of the clients is significant and
critical for the organization since it helps them in further developing its business execution
(Aragoncillo and Orus, 2018). There are additionally different benefits that could be acquired by
an association for changing clients purchasing conduct. These are; assists in achievement of
upper hands, increment with numbering of clients and some more.
There are many factors that make customers in make their decision regarding the
purchase of electric cars instead of conventional car. It has been found that the driving range of
electric car influence customer by making various improvement which includes reduction in
charging time, effective performance as well as reduction in pollution. The increased range of
driving improves the utility of electric cars which makes purchasers to drive electric cars. In
simpler words customers are willing to purchase electric cars when they get high driving range
as well as utility function in daily utilisation of it.
EV are operated with low cost which is one of the major reason that futuristic approach
which is helpful for the industry to grow. Across the globe people are able to gain higher positive
edge in appropriate manner. The mobility of the EV are high in which electric cars are able to
manage cost ability of their customers so that in minimum cost people can manage their needs.
This is examined that Electric vehicles are low in maintenance as they just need minimum cost of
operation in which people are able to manage their needs within budget. The decision making
procedure is generally complicated for every purchaser because in this digital world they are
provided with overloaded information. As per the research conducted in the market it is
determined that female auto-mobile purchasers give more importance to features like
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affordability, efficiency and safety. On the other hand, male purchasers give more importance to
features, aesthetics and performance such as style and interiors. It is also identified that male
customers get more attracted towards electric cars.
1.2 Organisational background
Inside this study, Tesla is a chosen American electric vehicle and clean energy organization that
was established in 2003. The organization was settled in 13101 Tesla Road, Austin, Texas,
United States. Organization is popular for planning and assembling electric vehicles and battery
energy capacity (Dahiya and Gayatri, 2018). Tesla is having higher brand picture into the market
for their advancement into the items. In the ongoing time the organization is wanting to venture
into worldwide market and for this client purchasing conduct is broke down by the association so
that the can take wise choices
1.3 Significance of the research
Recent research is huge for the various partners that are clients, Tesla, understudies and a
specialist. For understudies, this exploration is significant for them by further developing their
comprehension in regards to the advantages that could be acquired Tesla by changing purchasing
choice of clients towards electric vehicles (Dakouan, Benabdelouahed and Anabir, 2019). For a
scientist, ebb and flow research is fundamental for them by further developing their exploration
abilities that are information assortment, using time effectively and direction and numerous
others. For Tesla, this exploration is fundamental for them by changing purchasing conduct of
the clients towards electronic vehicles that brought about better business execution
1.4 Statement of the purpose
Fundamental motivation behind directing this examination is to distinguishing the
variables that have affected on dynamic course of clients towards electric vehicles (Dhiman,
Chand and Gupta, 2018). Changing purchasing choice of client is fundamental and significant
for the organization since it helps them in achieving upper hands in a powerful alongside
effective way.
1.5 Statement of the problem
The major issue analysed within the current research is related with increasing
environment impact in the recent time. The carbon footprints and environmental wastage is
increasing in current time which is leading to minimise the usage of fossil fuel vehicles. This is
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analysed that the selling of electronic vehicles are gaining higher success in the current time and
for such businesses this is essential that to analyse customer behaviour so that overall edge can
be acquired. The customer journey is the essential aspect which is helping the business to grow
and in this manner the current research is based on understanding the factors which are
influencing customer’s buying decision for electric vehicles. There are certain problems which
are related with electric care manufacturing company and these are related with prices of the
product and maintenance cost of the product so that the current research report is related with
examining such issues along with their recommendations that can be used by the organisation to
manage their business operations.
1.6 Aim and objectives
Research aim: To investigate the factors influence on decision making process of customers
towards electric cars: A study on Tesla
Research Objectives:
 To increase basic understanding about the customer buying decision in context with
electric cars
 To identify the factors that have influenced on decision making process of customers
towards electric cars
 To determine the benefits that could be gained Tesla by changing buying decision of
customers towards electric cars
 To examine the challenges that Tesla could be faced while changing customer’s buying
decision towards electric cars
1.7 Research questions
 What is the conceptual framework of customer buying decision in context with electric
cars?
 What are the main factors that have influenced on decision making process of customers
towards electric cars?
 What are the benefits or advantages that Tesla could be gained by changing buying
decision of customers towards electric cars?
 What are the major challenges that could be faced by Tesla while changing customer’s
buying decision towards electric cars?
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