PREDICTING ELECTRIC CAR PURCHASE INTENTIONS AMONG INDONESIA'S MILLENNIALS
Keywords:
Millennials, TPB, Environmental Concern, Purchase Intention, Electric CarAbstract
Indonesia is a major energy-consuming country and is under pressure to improve its energy efficiency as well as reduce its carbon emissions. Electric cars, as an energy-efficient transport innovation, have the potential to alleviate environmental problems. This study aims to investigate Indonesian millennials' purchase intentions for electric cars by using an extended framework of the theory of planned behavior (TPB). We derived the model through structural equation modeling of a sample of 425 respondents in Indonesia. The findings of this model indicate that consumer attitude, subjective norms, and perceived behavioral control have significant positive influences on the purchase intention of electric cars. Furthermore, our results indicated that environmental concerns have a significant effect on attitude, subjective norm, and purchase intention for electric cars, but not perceived behavioral control. This study contributes to enriching the understanding of the intention to purchase an electric car among millennials in Indonesia.
Downloads
References
AAF. (2021). Asean Automotive Federation 2020 Statistics. Retrieved from http://www.asean-autofed.com/files/AAF_Statistics_2020.pdf
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-t
Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting Social Behavior. Englewood Cliffs: Prentice Hall.
Bamberg, S. (2003). How does environmental concern influence specific environmentally related behaviors? A new answer to an old question. Journal of Environmental Psychology, 23(1), 21–32. https://doi.org/10.1016/s0272-4944(02)00078-6
Bollen, K. A. (1989). A New Incremental Fit Index for General Structural Equation Models. Sociological Methods & Research, 17(3), 303–316. https://doi.org/10.1177/0049124189017003004
Bonne, K., Vermeir, I., Bergeaud‐Blackler, F., & Verbeke, W. (2007). Determinants of halal meat consumption in France. British Food Journal, 109(5), 367–386. https://doi.org/10.1108/0070700710746786
BPS. (2020). Perkembangan Jumlah Kendaraan Bermotor Menurut Jenis (Unit), 2017–2019. Badan Pusat Statistik. Retrieved from https://www.bps.go.id/indicator/17/57/1/perkembangan-jumlah-kendaraan-bermotor-menurut-jenis.html
Castanier, C., Deroche, T., & Woodman, T. (2013). Theory of planned behaviour and road violations: The moderating influence of perceived behavioural control. Transportation Research Part F: Traffic Psychology and Behaviour, 18, 148–158. https://doi.org/10.1016/j.trf.2012.12.014
Chan, R. Y. K. (2001). Determinants of Chinese consumers’ green purchase behavior. Psychology and Marketing, 18(4), 389–413. https://doi.org/10.1002/mar.1013
Chan, R. Y. K., & Lau, L. B. Y. (2002). Explaining Green Purchasing Behavior. Journal of International Consumer Marketing, 14(2–3), 9–40. https://doi.org/10.1300/j046v14n02_02
Chang, H. H., & Chen, S. W. (2008). The impact of online store environment cues on purchase intention. Online Information Review, 32(6), 818–841. https://doi.org/10.1108/14684520810923953
Charter, M., & Polonsky, M. J. (1999). Greener Marketing. Sheffield, UK: Greenleaf.
Chaudhary, R., & Bisai, S. (2018). Factors influencing green purchase behavior of millennials in India. Management of Environmental Quality: An International Journal, 29(5), 798–812. https://doi.org/10.1108/meq-02-2018-0023
Chen, M. F., & Tung, P. J. (2014). Developing an extended Theory of Planned Behavior model to predict consumers’ intention to visit green hotels. International Journal of Hospitality Management, 36, 221–230. https://doi.org/10.1016/j.ijhm.2013.09.006
Chen, S. C., & Hung, C. W. (2016). Elucidating the factors influencing the acceptance of green products: An extension of theory of planned behavior. Technological Forecasting and Social Change, 112, 155–163. https://doi.org/10.1016/j.techfore.2016.08.022
Chen, Y. S., Lin, C. Y., & Weng, C. S. (2015). The Influence of Environmental Friendliness on Green Trust: The Mediation Effects of Green Satisfaction and Green Perceived Quality. Sustainability, 7(8), 10135–10152. https://doi.org/10.3390/su70810135
Cherrier, H., Black, I. R., & Lee, M. (2011). Intentional non‐consumption for sustainability. European Journal of Marketing, 45(11/12), 1757–1767. https://doi.org/10.1108/03090561111167397
Coşkun, A., & Yetkin Özbük, R. M. (2019). Environmental segmentation: young millennials’ profile in an emerging economy. Young Consumers, 20(4), 359–379. https://doi.org/10.1108/yc-12-2018-0912
Crosby, L. A., Gill, J. D., & Taylor, J. R. (1981). Consumer/Voter Behavior in the Passage of the Michigan Container Law. Journal of Marketing, 45(2), 19. https://doi.org/10.2307/1251662
Daziano, R. A., & Bolduc, D. (2011). Incorporating pro-environmental preferences towards green automobile technologies through a Bayesian hybrid choice model. Transportmetrica A: Transport Science, 9(1), 74–106. https://doi.org/10.1080/18128602.2010.524173
Dean, M., Raats, M. M., & Shepherd, R. (2011). The Role of Self-Identity, Past Behavior, and Their Interaction in Predicting Intention to Purchase Fresh and Processed Organic Food1. Journal of Applied Social Psychology, 42(3), 669–688. https://doi.org/10.1111/j.1559-1816.2011.00796.x
Diamantopoulos, A., Schlegelmilch, B. B., Sinkovics, R. R., & Bohlen, G. M. (2003). Can socio-demographics still play a role in profiling green consumers? A review of the evidence and an empirical investigation. Journal of Business Research, 56(6), 465–480. https://doi.org/10.1016/s0148-2963(01)00241-7
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate Data Analysis. Upper Saddle River, NJ, United States: Prentice Hall.
Han, H., & Kim, Y. (2010). An investigation of green hotel customers’ decision formation: Developing an extended model of the theory of planned behavior. International Journal of Hospitality Management, 29(4), 659–668. https://doi.org/10.1016/j.ijhm.2010.01.001
Han, H., Hsu, L. T. J., & Sheu, C. (2010). Application of the Theory of Planned Behavior to green hotel choice: Testing the effect of environmental friendly activities. Tourism Management, 31(3), 325–334. https://doi.org/10.1016/j.tourman.2009.03.013
Hanson-Rasmussen, N. J., & Lauver, K. J. (2018). Environmental responsibility: millennial values and cultural dimensions. Journal of Global Responsibility, 9(1), 6–20. https://doi.org/10.1108/jgr-06-2017-0039
Harrison, R., Newholm, T., & Shaw, D. (Eds.) (2005). The ethical consumer. SAGE Publications Ltd, https://www.doi.org/10.4135/9781446211991
Hartmann, P., & Apaolaza-Ibáñez, V. (2012). Consumer attitude and purchase intention toward green energy brands: The roles of psychological benefits and environmental concern. Journal of Business Research, 65(9), 1254–1263. https://doi.org/10.1016/j.jbusres.2011.11.001
Howe, N., Strauss, W., & Matson, R. J. (2000). Millennials Rising: The next greatest generation. New York, NY: Vintage Books.
Hu, H. H., Parsa, H., & Self, J. (2010). The Dynamics of Green Restaurant Patronage. Cornell Hospitality Quarterly, 51(3), 344–362. https://doi.org/10.1177/1938965510370564
IDN Research Institute. (2020, January). Indonesia Millennial Report 2020. IDN Media. Retrieved from https://cdn.idntimes.com/content-documents/Indonesia-millennial-report-2020-by-IDN-Research-Institute.pdf
IEA. (2020). CO2 Emissions from Fuel Combustion: Overview – Analysis. Retrieved August 2, 2021, from https://www.iea.org/reports/co2-emissions-from-fuel-combustion-overview
Johansson, M., & Persson, E. (2019). Your order has been shipped : A quantitative study of impulsive buying behavior online among Generation X and Y (Dissertation). Retrieved from http://urn.kb.se/resolve?urn=urn:nbn:se:hj:diva-43794
Kang, H., Hahn, M., Fortin, D. R., Hyun, Y. J., & Eom, Y. (2006). Effects of perceived behavioral control on the consumer usage intention of e-coupons. Psychology and Marketing, 23(10), 841–864. https://doi.org/10.1002/mar.20136
Khare, A. (2015). Antecedents to green buying behaviour: a study on consumers in an emerging economy. Marketing Intelligence & Planning, 33(3), 309–329. https://doi.org/10.1108/mip-05-2014-0083
Kilbourne, W. E., Dorsch, M. J., McDonagh, P., Urien, B., Prothero, A., Grünhagen, M., . . . Bradshaw, A. (2009). The Institutional Foundations of Materialism in Western Societies. Journal of Macromarketing, 29(3), 259–278. https://doi.org/10.1177/0276146709334298
Kim, G. S., Park, S., & Oh, J. (2008). An examination of factors influencing consumer adoption of short message service (SMS). Psychology and Marketing, 25(8), 769–786. https://doi.org/10.1002/mar.20238
Kim, Y., & Han, H. (2010). Intention to pay conventional-hotel prices at a green hotel – a modification of the theory of planned behavior. Journal of Sustainable Tourism, 18(8), 997–1014. https://doi.org/10.1080/09669582.2010.490300
Kotler, P., & Armstrong, G. M. (2008). Principles of Marketing. Upper Saddle River, NJ, United States: Prentice Hall.
Kraft, P., Rise, J., Sutton, S., & Røysamb, E. (2005). Perceived difficulty in the theory of planned behaviour: Perceived behavioural control or affective attitude? British Journal of Social Psychology, 44(3), 479–496. https://doi.org/10.1348/014466604x17533
Lane, B., & Potter, S. (2007). The adoption of cleaner vehicles in the UK: exploring the consumer attitude–action gap. Journal of Cleaner Production, 15(11–12), 1085–1092. https://doi.org/10.1016/j.jclepro.2006.05.026
Laroche, M., Bergeron, J., & Barbaro‐Forleo, G. (2001). Targeting consumers who are willing to pay more for environmentally friendly products. Journal of Consumer Marketing, 18(6), 503–520. https://doi.org/10.1108/eum0000000006155
Lin, S. H. (2010). A case study in Hawaii: who will pay more for organic cotton? International Journal of Consumer Studies, 34(4), 481–489. https://doi.org/10.1111/j.1470-6431.2010.00899.x
Lindenberg, S., & Steg, L. (2007). Normative, Gain and Hedonic Goal Frames Guiding Environmental Behavior. Journal of Social Issues, 63(1), 117–137. https://doi.org/10.1111/j.1540-4560.2007.00499.x
Liu, Y., Sheng, H., Mundorf, N., Redding, C., & Ye, Y. (2017). Integrating Norm Activation Model and Theory of Planned Behavior to Understand Sustainable Transport Behavior: Evidence from China. International Journal of Environmental Research and Public Health, 14(12), 1593. https://doi.org/10.3390/ijerph14121593
Lopes, J. R. N., Kalid, R. D. A., Rodríguez, J. L. M., & ÁVila Filho, S. (2019). A new model for assessing industrial worker behavior regarding energy saving considering the theory of planned behavior, norm activation model and human reliability. Resources, Conservation and Recycling, 145, 268–278. https://doi.org/10.1016/j.resconrec.2019.02.042
Maichum, K., Parichatnon, S., & Peng, K. C. (2016). Application of the Extended Theory of Planned Behavior Model to Investigate Purchase Intention of Green Products among Thai Consumers. Sustainability, 8(10), 1077. https://doi.org/10.3390/su8101077
Marsh, H. W., & Hocevar, D. (1985). Application of confirmatory factor analysis to the study of self-concept: First- and higher order factor models and their invariance across groups. Psychological Bulletin, 97(3), 562–582. https://doi.org/10.1037/0033-2909.97.3.562
Moons, I., & de Pelsmacker, P. (2012). Emotions as determinants of electric car usage intention. Journal of Marketing Management, 28(3–4), 195–237. https://doi.org/10.1080/0267257x.2012.659007
Ng, M., Law, M., & Zhang, S. (2018). Predicting Purchase Intention of Electric Vehicles in Hong Kong. Australasian Marketing Journal, 26(3), 272–280. https://doi.org/10.1016/j.ausmj.2018.05.015
Nunnally, J., & Bernstein, I. (1994). Psychometric Theory. New York, United States: McGraw-Hill Education.
Ottman, J. A. (2011). The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding. CA, USA: Berrett-Koehler Publishers.
Paul, J., Modi, A., & Patel, J. (2016). Predicting green product consumption using theory of planned behavior and reasoned action. Journal of Retailing and Consumer Services, 29, 123–134. https://doi.org/10.1016/j.jretconser.2015.11.006
Rejikumar, G. (2016). Antecedents of Green Purchase Behaviour: An Examination of Moderating Role of Green Wash Fear. Global Business Review, 17(2), 332–350. https://doi.org/10.1177/0972150915619812
Schmalfuß, F., Mühl, K., & Krems, J. F. (2017). Direct experience with battery electric vehicles (BEVs) matters when evaluating vehicle attributes, attitude and purchase intention. Transportation Research Part F: Traffic Psychology and Behaviour, 46, 47–69. https://doi.org/10.1016/j.trf.2017.01.004
Syairozi, M. I., & Rosyad, S. (2022). Inovasi Daun Lontar Untuk Meningkatkan Produktivitas Masyarakat Desa Lawanganagung. Jurnal Pengabdian kepada Masyarakat Nusantara, 3(1), 131-136.
Syairozi, M. I., & Cahya, S. B. (2017). Sukuk Al Intifaa: Integrasi Sukuk dan Wakaf dalam Meningkatkan Produktifitas Sektor Wakaf Pendorong Investasi Pada Pasar Modal Syariah. JPIM (Jurnal Penelitian Ilmu Manajemen), 2(2), 12-Halaman.
Smith, K. T., & Brower, T. R. (2012). Longitudinal study of green marketing strategies that influence Millennials. Journal of Strategic Marketing, 20(6), 535–551. https://doi.org/10.1080/0965254x.2012.711345
Smyth, R., Nielsen, I., & Zhai, Q. (2009). Personal Well-being in Urban China. Social Indicators Research, 95(2), 231–251. https://doi.org/10.1007/s11205-009-9457-2
Steiger, J. H. (2007). Understanding the limitations of global fit assessment in structural equation modeling. Personality and Individual Differences, 42(5), 893–898. https://doi.org/10.1016/j.paid.2006.09.017
Tabachnick, B. G., & Fidell, L. S. (2018). Using Multivariate Statistics (2-downloads) (7th ed.). NJ, USA: Pearson.
Tanwir, N. S., & Hamzah, M. I. (2020). Predicting Purchase Intention of Hybrid Electric Vehicles: Evidence from an Emerging Economy. World Electric Vehicle Journal, 11(2), 35. https://doi.org/10.3390/wevj11020035
Tarkiainen, A., & Sundqvist, S. (2005). Subjective norms, attitudes and intentions of Finnish consumers in buying organic food. British Food Journal, 107(11), 808–822. https://doi.org/10.1108/00070700510629760
Taylor, S., & Todd, P. A. (1995). Understanding Information Technology Usage: A Test of Competing Models. Information Systems Research, 6(2), 144–176. https://doi.org/10.1287/isre.6.2.144
Teng, Y. M., Wu, K. S., & Liu, H. H. (2013). Integrating Altruism and the Theory of Planned Behavior to Predict Patronage Intention of a Green Hotel. Journal of Hospitality & Tourism Research, 39(3), 299–315. https://doi.org/10.1177/1096348012471383
Thananusak, T., Rakthin, S., Tavewatanaphan, T., & Punnakitikashem, P. (2017). Factors affecting the intention to buy electric vehicles: empirical evidence from Thailand. International Journal of Electric and Hybrid Vehicles, 9(4), 361. https://doi.org/10.1504/ijehv.2017.089875
Tu, J. C., & Yang, C. (2019). Key Factors Influencing Consumers’ Purchase of Electric Vehicles. Sustainability, 11(14), 3863. https://doi.org/10.3390/su11143863
Vermeir, I., & Verbeke, W. (2008). Sustainable food consumption among young adults in Belgium: Theory of planned behaviour and the role of confidence and values. Ecological Economics, 64(3), 542–553. https://doi.org/10.1016/j.ecolecon.2007.03.007
Wang, S., Fan, J., Zhao, D., Yang, S., & Fu, Y. (2014). Predicting consumers’ intention to adopt hybrid electric vehicles: using an extended version of the theory of planned behavior model. Transportation, 43(1), 123–143. https://doi.org/10.1007/s11116-014-9567-9
White Baker, E., Al‐Gahtani, S. S., & Hubona, G. S. (2007). The effects of gender and age on new technology implementation in a developing country. Information Technology & People, 20(4), 352–375. https://doi.org/10.1108/09593840710839798
Wijaya, A., H. Chrysolite, M. Ge, C. Wibowo, A. Pradana, A. Utami, & K. Austin. 2017. “How Can Indonesia Achieve its Climate Change Mitigation Goal? An Analysis of Potential Emissions Reductions from Energy and Land-Use Policies.” Working Paper. Jakarta, Indonesia: World Resources Institute. Available online at www.wri.org/publication/how-can-indonesia-achieve-itsclimate-goal.
Xu, X., Hua, Y., Wang, S., & Xu, G. (2020). Determinants of consumer’s intention to purchase authentic green furniture. Resources, Conservation and Recycling, 156, 104721. https://doi.org/10.1016/j.resconrec.2020.104721
Yadav, R., & Pathak, G. S. (2016). Young consumers’ intention towards buying green products in a developing nation: Extending the theory of planned behavior. Journal of Cleaner Production, 135, 732–739. https://doi.org/10.1016/j.jclepro.2016.06.120
Yan, Q., Qin, G., Zhang, M., & Xiao, B. (2019). Research on Real Purchasing Behavior Analysis of Electric Cars in Beijing Based on Structural Equation Modeling and Multinomial Logit Model. Sustainability, 11(20), 5870. https://doi.org/10.3390/su11205870
Zukin, S., & Maguire, J. S. (2004). Consumers and Consumption. Annual Review of Sociology, 30(1), 173–197. https://doi.org/10.1146/annurev.soc.30.012703.110553