Assessment of the betterness of a battery electric vehicle: A multi-criteria decision-making approach
-
DOIhttp://dx.doi.org/10.21511/im.20(3).2024.16
-
Article InfoVolume 20 2024, Issue #3, pp. 193-208
- Cited by
- 292 Views
-
80 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Despite the advantages and benefits of a battery electric vehicle, its adoption rate remains low. Previous studies have explored factors that influence the adoption of electric vehicles. However, studies investigating whether an electric car outperforms a gasoline car are still limited. Therefore, this study aims to assess the betterness of an electric vehicle compared with a gasoline vehicle in helping customers perform their jobs to be done. A multi-criteria decision-making approach using the analytic hierarchy process is built on two main criteria, namely, customer pains and customer gains, where customer pains are divided into cost pains and non-cost pains, and customer gains are divided into functional gains and emotional gains. Using the most affordable battery electric vehicle in the Indonesian market, interviewees who live in the greater Jakarta and drive to work were invited to perform the pairwise comparison processes. The finding of this study shows that with respect to helping customers perform their jobs to be done, a battery electric vehicle is equally to moderately worse than a gasoline vehicle with a worse score of 0.5946 compared with a better score of 0.4054. This finding comes from interviewees who prioritize customer gains with a priority score of 0.6993 over customer pains with a priority score of 0.3007. Considering that the analytic hierarchy process allows a small number of interviewees, the result obtained should be limited as an early prediction about the betterness of an electric car compared with a gasoline car from a certain group of persons.
- Keywords
-
JEL Classification (Paper profile tab)L62, O33, M31
-
References60
-
Tables23
-
Figures1
-
- Figure 1. AHP model for assessing the betterness of a battery electric vehicle
-
- Table 1. Ratio scale in performing AHP’s pairwise comparison
- Table 2. Random index for consistency ratio
- Table 3. Pairwise comparison matrix of main criteria from Interviewee #1
- Table 4. Pairwise comparison matrix of subcriteriaof customer pains from Interviewee #1
- Table 5. Pairwise comparison matrix of sub-criteria of customer gains from Interviewee #1
- Table 6. Pairwise comparison matrix of sub-sub criteria of cost pains from Interviewee #1
- Table 7. Pairwise comparison matrix of sub-sub-criteria of non-cost pains from Interviewee #1
- Table 8. Pairwise comparison matrix of the sub-sub-criteria of functional gains of Interviewee #1
- Table 9. Pairwise comparison matrix of the sub-sub-criteria of emotional gains of Interviewee #1
- Table 10. Pairwise comparison matrix of EV betterness w.r.t. sub-sub-criteria of cost pains
- Table 11. Pairwise comparison matrix of EV betterness w.r.t. sub-sub-criteria of non-cost pains
- Table 12. Pairwise comparison matrix of EV betterness w.r.t. sub-sub-criteria of functional gains
- Table 13. Pairwise comparison matrix of EV betterness w.r.t. sub-sub-criteria of emotional gains
- Table 14. Results of Interviewee #1’s pairwise comparison
- Table 15. EV betterness from Interviewee #1
- Table 16. EV betterness in helping customers perform their JTBD compared to ICE car
- Table 17. Interviewees’ priority on customer pains and customer gain in performing JTBD
- Table 18. EV betterness with respect to customer gains
- Table 19. EV betterness with respect to customer pains
- Table 20. EV betterness with respect to emotional gains
- Table 21. EV betterness with respect to functional gains
- Table 22. EV betterness with respect to cost pains
- Table 23. EV betterness with respect to non-cost pains
-
- Ansab, K. V., & Kumar, S. P. (2024). Influence of government financial incentives on electric car adoption: empirical evidence from India. South Asian Journal of Business Studies, 13(2), 226-243.
- Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179-211.
- Aungkulanon, P., Atthirawong, W., & Luangpaiboon, P. (2023). Fuzzy analytical hierarchy process for strategic decision making in electric vehicle adoption. Sustainability, 15(8).
- Buhmann, K. M., & Criado, J. R. (2023). Consumers’ preferences for electric vehicles: The role of status and reputation. Transportation Research Part D: Transport and Environment, 114.
- Clinton, B. C., & Steinberg, D. C. (2019). Providing the spark: Impact of financial incentives on battery electric vehicle adoption. Journal of Environmental Economics and Management, 98.
- Chaturvedi, P., Kulshreshtha, K., Tripathi, V., & Agnihotri, D. (2023). Exploring consumers’ motives for electric vehicle adoption: bridging the attitude–behavior gap. Benchmarking: An International Journal, 30(10), 4174-4192.
- Christensen, C. M., Hall, T., Dillon, K., & Duncan, D. S. (2016). Competing Against Luck: The Story of Innovation and Customer Choice. New York: Harper Business.
- de Sa, J. D. S., Mainardes, E. W., & Andrade, D. M. (2020). Buying a family car: relevant factors for teenagers. Revista de Gestão [Management Journal], 27(1), 21-36.
- Dash, A. (2021). Determinants of EVs adoption: a study on green behavior of consumers. Smart and Sustainable Built Environment, 10(1), 125-137.
- Degirmenci, K., & Breitner, M. H. (2017). Consumer purchase intentions for electric vehicles: Is green more important than price and range? Transportation Research Part D: Transport and Environment, 51, 250-260.
- Dias, A., & Ioannou, P. G. (1996). Company and project evaluation model for privately promoted infrastructure projects. Journal of Construction Engineering and Management, 122(1), 71-82.
- Digalwar, A. K., & Rastogi, A. (2023). Assessments of social factors responsible for adoption of electric vehicles in India: a case study. International Journal of Energy Sector Management, 17(2), 251-264.
- Dong, X., Zhang, B., Wang, B., & Wang, Z. (2020). Urban households’ purchase intentions for pure electric vehicles under subsidy context in China: Do cost factor matter? Transportation Research Part A: Policy and Practice, 135, 183-197.
- Febransyah, Ade. (2021). Predicting purchase intention towards battery electric vehicles: A case of Indonesian market. World Electric Vehicle Journal, 12(4), 240.
- Forman, E. H., & Peniwati, K. (1998). Aggregating individual judgments and priorities with the analytic hierarchy process. European Journal of Operational Research, 108(1), 165-169.
- Gaikindo. (2022). Tantanganmobillistrik Indonesia: Harga belumterjangkau. [The challenges of electric vehicles in Indonesia: Unaffordable price]. (In Indonesian).
- Guillén-Mena, V., Quesada-Molina, F., Astudillo-Cordero, S., Lema, M., & Ortiz-Fernández, J. (2023). Lessons learned from a study based on the AHP method for the assessment of sustainability in neighborhoods. Methods X, 11.
- Gunawan, I., Redi, A. A. N. P., Santosa, A. A., Maghfiroh, M. F. N., Pandyaswargo, A. H., & Kurniawan, A. C. (2022).Determinants of Customer Intentions to Use Electric Vehicle in Indonesia: An Integrated Model Analysis. Sustainability, 14, 1972.
- Han, L., Wang, S., Zhao, D., & Li, J. (2017). The intention to adopt electric vehicles: Driven by functional and non-functional values. Transportation Research Part A: Policy and Practice, 103, 185-197.
- He, X., Zhan, W., & Hu, Y. (2018). Consumer purchase intention of electric vehicles in China: The roles of perception and personality. Journal of Cleaner Production, 204, 1060-1069.
- Heffner, R., Kurani, K., & Turrentine, T. (2007). Symbolism in California’s early market for hybrid. Transportation Research Part D: Transport and Environment, 12(6), 396-413.
- Hess, S., Stathopoulos, A., & Daly, A. (2012). Allowing for heterogeneous decision rules in discrete choice models: an approach and four case studies. Transportation, 39, 565-591.
- Herziger, A., & Sintov, N. D. (2023). Give it a try! How electric vehicle test drives influence symbolism perceptions and adoption intent. Journal of Environmental Psychology, 85.
- Huang, X., Lin, Y., Lim, M. K., Tseng, M.-L., & Zhou, F. (2021). The influence of knowledge management on adoption intention of electric vehicles: Perspective on technological knowledge. Industrial Management & Data Systems, 121(7), 1481-1495.
- Jaiswal, D., Kant, R., Singh, P. K., & Yadav, R. (2022). Investigating the role of electric vehicle knowledge in consumer adoption: evidence from an emerging market. Benchmarking: An International Journal, 29(3), 1027-1045.
- Jang, S., & Choi, J. Y. (2021). Which consumer attributes will act crucial roles for the fast market adoption of electric vehicles? Estimation on the asymmetrical & heterogeneous consumer preferences on the EVs. Energy Policy, 156.
- Kato, T. (2021). Functional value vs emotional value: A comparative study of the values to contribute to a preference for a corporate brand. International Journal of Information Management Data Insight, 1(2).
- Krishnan, V. V., & Koshy, B. I. (2021).Evaluating the factors influencing purchase intention of electric vehicles in households owning conventional vehicles. Case Studies on Transport. Policy, 9, 1122-1129.
- Kim, J., Lee, J., & Ahn, J. (2016). Reference-dependent preferences on smart phones in South Korea: focusing on attributes with heterogeneous preference direction. Computers in Human Behavior, 64, 393-400.
- Lashari, Z. A., Ko, J., & Jang, J. (2021). Consumers’ intention to purchase electric vehicles: Influences of User Attitude and Perception. Sustainability, 13.
- Lam, K., & Zhao, X. (1998). An application of quality function deployment to improve the quality of teaching. International Journal of Quality and Reliability Management, 15, 389-413.
- Li, L., Wang, Z., Gong, Y., & Liu, S. (2022). Self-image motives for electric vehicle adoption: Evidence from China. Transportation Research Part D: Transport and Environment, 109.
- Lin, B., & Wu, W (2018). Why people want to buy electric vehicle: An empirical study in first-tier cities of China. Energy Policy, 112, 233-241.
- Liu, X., Sun, X., Zheng, H., & Huang, D. (2021). Do policy incentives drive electric vehicle adoption? Evidence from China. Transportation Research Part A: Policy and Practice, 150, 49-62.
- Meyer, A. D., & Garg, S. (2005). Inspire to innovate: Management and Innovation in Asia. New York: Palgrave Macmillan.
- Mpoi, G., Milioti, C., & Mitropoulos, L. (2023). Factors and incentives that affect electric vehicle adoption in Greece. International Journal of Transportation Science and Technology, 12(4), 1064-1079.
- Murtiningrum, A. D., Darmawan, A., & Wong, H. (2022). The adoption of electric motorcycles: A survey of public perception in Indonesia. Journal of Cleaner Production, 379.
- Osterwalder, A., Pigneur, Y., Bernarda, G., Smith, A., & Papadakos, T. (2014). Value proposition design: How to create products and services customer want. John Wiley & Sons, Inc.
- Paudel, A., Pinthurat, W., & Marungsri, B. (2023). Impact of Large-Scale Electric Vehicles’ Promotion in Thailand Considering Energy Mix, Peak Load,and Emissions. Smart Cities, 6, 2619-2638.
- Plananska, J., Wüstenhagen, R., & Bellis, E. D. (2023). Perceived lack of masculinity as a barrier to adoption of electric cars? An empirical investigation of gender associations with low-carbon vehicles. Travel Behavior and Society, 32.
- Previte, J., Bennet, R.R., Mulcahy, R., & Hartel, C. (2019). The role of emotional value for reading and giving eWOM in altruistic services. Journal of Business Research, 99, 157-166.
- Ramanathan, R., & Ganesh, L. S. (1994). Group preference aggregation methods employed in AHP: An evaluation and intrinsic process for deriving members’ weight ages. European Journal of Operational Research, 79(2), 249-265.
- Saaty, T. L. (1980).The Analytic Hierarchy Process. New York: McGraw-Hill.
- Sankaran, G., & Venkatesan, S. (2022). Total cost of ownership for electric vehicles passenger cars in India and alternatives to reduce the operating cost (Proceedings of the International Conference on Green Energy and Technology. IOP Conf. Series: Earth and Environmental Science, 1100).
- Schloter, L. (2022). Empirical analysis of the depreciation of electric vehicles compared to gasoline vehicles. Transport Policy, 126, 268-279.
- Setiawan, A. D., Zahari, T. N., Purba, F. J., Moeis, A. O., & Hidayatno, A. (2022). Investigating policies on increasing the adoption of electric vehicles in Indonesia. Journal of Cleaner Production, 380(2).
- Shalender, K., & Sharma, N. (2021). Using extended theory of planned behaviour (TPB) to predict adoption intention of electric vehicles in India. Environment, Development and Sustainability, 23, 665-681.
- Singh, V., Singh, V., & Vaibhav, S. (2020). A review and simple meta-analysis of factors influencing adoption of electric vehicles. Transportation Research Part D: Transport and Environment, 86.
- Snelders, D., & Schoormans, J. P. L. (2004). An exploratory study of the relation between concrete and abstract product attributes. Journal of Economic Psychology, 25(6), 803-820.
- Statista (2021). Electric vehicle adoption rate in the Asia-Pacific region in 2021, by country.
- Statista (2022). Number of passenger cars sold in the Asia-Pacific region in 2022, by country or territory.
- Steg, L. (2005). Car use: lust and must. Instrumental, symbolic and affective motives for car use. Transportation Research Part A: Policy and Practice, 39, 147-162.
- Sun, W. (2020). Toward a theory of ethical consumer intention formation: Re-extending the theory of planned behavior. AMS Review, 10(3), 260-278.
- Tarei, P. K., Chand, P., & Gupta, H. (2021). Barriers to the adoption of electric vehicles: Evidence from India. Journal of Cleaner Production, 291.
- Tavares, R. M., Tavares, J. M. L., & Parry-Jones, S. L. (2008).The use of a mathematical multicriteria decision-making model for selecting the fire origin room. Building and Environment, 43, 2090-2100.
- Tiwari, V., Aditjandra, P., & Dissanayake, D. (2020). Public attitudes towards Electric Vehicle adoption using Structural Equation Modeling. Transportation Research Procedia, 48, 1615-1634.
- Tversky, A., & Kahneman, D. (1991). Loss aversion in riskless choice: a reference-dependent model. Quarterly Journal of Economics, 106(4), 1039-1061.
- Veza, I., Abas, M. A., Djamari, D. W., Tamaldin, N., Endrasari, F., Budiman, B. A., Idris, M., Opia, A. C., Juangsa, F. B., & Aziz, M. (2022). Electric vehicles in Malaysia and Indonesia: Opportunities and challenges. Energies, 15(7).
- Zhu, C., Zhu, Y., Lu, R., He, R., & Xia, Z. (2012). Perceptions and aspirations for car ownership among Chinese students attending two universities in the Yangtze Delta, China. Journal of Transport Geography, 24, 315-323.
- Zhao, Z., & Zhao, J. (2020). Car pride and its behavioral implications: an exploration in Shanghai. Transportation, 47, 793-810.