Investigating Factors Influencing Electric Car Buying Decisions: Tesla

This report investigates the factors influencing customer buying decisions regarding electric cars, with a specific focus on Tesla. It explores the benefits of electric vehicles for the environment and society, utilizing qualitative methods and secondary data sources like books, newspapers, and journals. The research identifies internal factors (perception, needs) and external factors (culture, social class) impacting consumer choices. It examines the conceptual framework of customer buying decisions, the main influencing factors, potential benefits for Tesla, and challenges faced while shifting customer preferences towards electric vehicles. The literature review supports the analysis, and the report concludes with recommendations for Tesla to attract and influence customers towards 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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1.8 Dissertation structure
There are a few sections that re helpful in finishing full thesis effectively and efficiently. These
sections alongside their significance in paper is made sense of underneath;
Section 1: Introduction: This is a first part of the paper that incorporates a few information with
respect to the point. These are hierarchical foundation, foundation to the exploration, meaning of
the issue, mission statement, point and goals, and examination questions. Every one of these are
fundamental data that helps an examiner in beginning different parts in a fruitful way.
Section 2: Literature review: This is one more part that assists an examiner in gathering
auxiliary data from accessible sources, for example, books, diaries, articles, distribution with
researching and numerous others (Eze and Bello, 2016). These are fundamental sources that will
helps a specialist in social occasion exact and top to bottom data with respect to the variables that
have impacted on dynamic course of clients towards electric vehicles.
Section 3: Research methodology: This is a significant part that works with an agent in
gathering precise data in regards to the point from different procedures. These are inductive
methodology, interpretivism reasoning, subjective exploration, efficient writing audit and some
more (Hakim and Almahdi, 2020). These are fundamental philosophies that will be applied for
social affair optional data about the advantages that could be acquired Tesla by changing
purchasing choice of clients towards electric vehicles.
Section 4: Data analysis and findings: This part is vital for the researcher since it helps them in
assessing accumulated data through research analytical techniques. Thematic examination will
be trailed by a investigator for assessing subjective information in less timeframe.
Section 5: Conclusion and suggestions: This is a last part that will be fundamental in
recognizing that examination point and goals are achieved or not. In proposals, a few fitting
ideas will be given to the Tesla about how to draw in and impact clients towards electronic
vehicles (Hanaysha, 2018).
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is the part that gathers optional data for tending to the examination
inquiries in a precise manner. This part utilizes auxiliary sources, for example, books, articles,
diaries, papers, distributions and so on. In less complex words, writing survey is an outline of the
prior distributed assembled information on a specific subject. Thusly, this covers top to bottom
data about the client purchasing choice comparable to electric vehicles. The principal motivation
behind writing survey is to figure out the flow research specifically field prior to focusing in on
doing the new exploration. By leading the Literature review, researcher can figure out what
exploration has proactively been finished and what is obscure inside subject.
2.2 What is the conceptual framework of customer buying decision in context with electric cars?
As per Asadi and et. al., (2021), electric vehicles has made vital changes in the auto-
portable market and its reception is prompting more modern plans of action. The worldwide
climate has additionally preferred electric vehicles and in this advanced time individuals are
becoming more focused on them. It is resolved that huge number of electric vehicles are selling
in various nations. The fundamental benefit that are helping in the system of getting
consideration of individuals is that electric vehicles work at lower cost. Many patterns have
additionally proposed that there will be consistent interest among the clients for electric bikes as
well as vehicles.
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Figure 1: Conceptual framework of customer buying decision
From the above mentioned graph, it has been determined that there are internal and
external factors that have influenced on customer buying behaviour towards electric cars. There
are various internal factors such as perception, memory, needs, motivation, attitudes,
demographics, lifestyle and personality. These are main internal factors that influence customers
towards electric cars. There are also some external factors such as culture, sub-culture, social
class, reference group, opinion leaders and family life cycle. Purchasing a vehicle is known as a
time-consuming procedure with several external and internal factors influencing the purchasing
decision (Singh, Singh and Vaibhav, 2020).
2.3 What are the main factors that have influenced on decision making process of customers
towards electric cars?
As indicated by Cui and et. al., (2021), ability of clients to purchase electric vehicles are
impacted by the variables known as financial plan imperatives, social convictions and utility
(individual inclinations). This incorporates the variables to consume electric vehicles according
to three critical points of view which are: convictions, requirements and utility. Under the utility
area, driving scope of electric vehicles is incorporated which is investigated. In regard of
imperatives, three elements are incorporated which are: government monetary motivating forces,
buy cost and charging foundation. This enormously impacts the eagerness of clients to buy or
embrace electric vehicles. As far as conviction, the apparent social impact and ecological
consciousness of people are considered as the examination factors.
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Driving range: The range of driving increments hold the greatest value which also
follows performance, pollution reduction and charging time. It shows that driving range is one of
the key aspects of electric car attribute and utility to impact willingness of purchaser to buy.
There are different conducted research which have highlighted that driving range is necessary
factor to influence the adoption of electric cars. Customers generally have particular expectations
in relation to driving range because the high mileage could decrease the charging time.
Charging infrastructure: The restriction of consumption could be from both public and
finance environments. The recent investigations show that large number of customers do not
only give importance to driving range but also want to drive or cover long distances. The long
distance driving of electric cars majorly depends upon charging infrastructure (Shalender and
Sharma, 2021). In simpler words, poor charging infrastructure is one of the major constraints for
driving and covering long distance. It is determined that developing advance charging
infrastructure could attract more customers to buy electric vehicles because it helps them to
cover longer driving distance. For potential customers, there are certain factors which they
consider before buying electric vehicles such as charge-point interoperability, charge-point
location, charge cost and the number of charging stations. The charging points are generally
installed at the positions such as outside of the office, outside of the home, highway service
stations and publicly accessible locations. Therefore, installing charging piles at different
locations helps customers to travel long-distance trips as well as business trips. In simpler words,
great establishment of charging infrastructure creates positive impact on shaping willingness of
customers to purchase electric cars.
Individual Environmental Awareness: Awareness regarding environment has given
certain confusion in environmental psychology investigation about the exact meaning of
environmental concern. Awareness regarding environment is linked with reference to individual
particular beliefs about or world views and general environmental beliefs. Environmental
awareness is known as the special belief and it is also linked with personal belief. Nowadays,
consumers are giving major importance to environmental protection and this also holds
importance in shaping buying decision of environment-friendly products. As per the studies
conducted earlier indicate that electric cars are eco-innovations that hold great potential in
reducing the environmental issues of the transportation sector. Electric car adopters express
protecting the environment as one of the motivation factors for choosing electric cars in
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