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Case Studies on Transport Policy 15 (2024) 101147

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Case Studies on Transport Policy


journal homepage: www.elsevier.com/locate/cstp

Who will buy electric vehicles? Segmenting the young Indian buyers using
cluster analysis
Furqan A. Bhat a, 1, Meghna Verma b, Ashish Verma a, *, 2
a
Department of Civil Engineering, Indian Institute of Science, Bengalore, Karnataka 560012, India
b
Ramaiah Institute of Management, Bengaluru, Karnataka 560012, India

A R T I C L E I N F O A B S T R A C T

Keywords: Market segmentation is an essential tool that can be used for the effective and extensive adoption of emerging
Electric vehicles (EV) innovations such as electric vehicles. This study uses a multi-item questionnaire to collect data from young
Adoption intention educated Indian students, which is used to understand the factors that affect the adoption of electric vehicles
Perception
among potential vehicle buyers. Confirmatory factor analysis revealed ten latent variables that impact the
Personality
Confirmatory factor analysis
adoption of electric vehicles, out of which eight variables, viz. social image, social influence, anxiety (or
Cluster analysis perceived risks), perceived environmental benefits, performance expectancy, effort expectancy, facilitating
K-means clustering conditions, and attitude, are used for segmenting and profiling potential vehicle buyers into clusters, and the
other two latent factors viz. environmental enthusiasm and technological enthusiasm are used to measure and
analyse the differences in personality traits across the different clusters. Segmentation technique, based on k-
means clustering, revealed three clusters in the respondents which are found to show positive, neutral (slightly
positive), and negative perceptions towards all clustering variables and are subsequently labelled as “innovation
adoption leads”, “innovation adoption indifferents”, and “innovation adoption idlers” respectively. The findings
from this research provide better knowledge and understanding to decision-makers and can help accelerate the
widespread acceptance of electric vehicles.

1. Introduction growth from 141 million to around 300 million over the past decade
(MoRTH, 2020), a number that was forecasted to be reached in 2040.
1.1. Background These numbers are anticipated to escalate further with the nation’s
emerging and budding economy. The increasing number of motor ve­
Unceasing economic progress and technological advancements have hicles and the exhausts emanating from them have critically disturbed
led to uncontrolled motorisation and the sudden growth of the global the air quality in India (IQ Air, 2019). More than half of the total pe­
transportation network. These developments have created significant troleum demand in India is accounted for by the transportation segment,
fears about the dwindling environmental conditions, exhausting fossil and this industry subsequently is responsible for approximately one-
fuels, increasing reliance on petroleum-based fuels, growing exhaust sixth of the total carbon dioxide emissions, 90% of which is produced
productions and the related problems of global warming. The trans­ by road vehicles (IEA, 2020; U.S. Energy Information Administration,
portation sector is responsible for a quarter of global energy demand 2021). In addition to severe ecological hazards such as floods and
(IEA, 2020) and contributes approximately 20% to global carbon diox­ droughts, which can have severe financial impacts (Eckstein et al.,
ide emissions (IEA, 2020; Napoli et al., 2020). Road traffic, among all 2021), these exhaust emissions have profound impacts on health, such
the transportation modes, is a major source of air pollutants, accounting as respiratory issues, memory loss and pregnancy and birth-related
for three-quarters of the overall carbon dioxide production from the problems (Fuller et al., 2022; Landrigan et al., 2018). Comprehending
transport segment (IEA, 2020). these hazards, India, at the Paris Agreement, committed to plummeting
The number of motorised automobiles in India has seen a steep its exhaust intensities by about thirty-five per cent before the end of

* Corresponding author.
E-mail address: ashishv@civil.iisc.ernet.in (A. Verma).
1
ORCID: https://orcid.org/0000-0001-9419-5184.
2
ORCID: https://orcid.org/0000-0002-2350-9681.

https://doi.org/10.1016/j.cstp.2024.101147
Received 22 September 2023; Received in revised form 23 December 2023; Accepted 6 January 2024
Available online 9 January 2024
2213-624X/© 2024 World Conference on Transport Research Society. Published by Elsevier Ltd. All rights reserved.
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

2030 in contrast to 2005 quantities. To accomplish such degrees of Table 1


decarbonisation, the Indian administration perceives the transportation Theoretical background.
sector as a significant segment and, as such, is working on diverse plans, Factor studied Definition Reference, Target group and
schemes, and guidelines to alter the travel behaviour of the commuters. Authors geographic
One of the avenues is the progression and development of electrified (Year) region
mobility. Personality factors
Electric vehicles have the potential to augment energy efficiency, Environmental Environmental (Jain et al., 284 responses from
secure long-term energy needs, and lessen the greenhouse emissions enthusiasm enthusiasm is an 2022) Indian customers
(EnvEnth) emotional matter that (Haustein Conventional and
emanating from the road transportation sector; hence these vehicles are emphasises and et al., 2021) electric vehicle
becoming popular among potential consumers (Peters et al., 2018; incorporates the owners from
Rezvani et al., 2018). The worldwide adoption of electric vehicles is growing concerns Sweden and
faster than expected, with the total number of electric 4-wheeler sales about the Denmark
deteriorating
crossing the 10 million landmark in 2020, which stamps a growth of
environmental
more than 40% over the previous year and indicates a five times increase conditions among
over the past half a decade (IEA, 2022). However, the market scenario is people. These values
not the same in the developing economies, with many countries failing affect the decision-
to improve the penetration rates of electric vehicles. For instance, making process of
potential vehicle
regardless of the personal allowances and environmental rewards, buyers as these
electric vehicles are finding it very difficult to make inroads into the environmental
Indian market, with penetration rates hovering around 1% (NITI Aayog, enthusiasts consider
2022). Except for China, the adoption rates are quite low in most of the the impact their
purchasing decisions
developing economies, which points toward a massive market oppor­
might have on the
tunity for electric vehicles to revolutionise mobility behaviour. Electric environment.
vehicles and similar alternative fuel vehicles are recent advancements Technological Technological (He et al., 369 respondents
requiring proper research and understanding of how users embrace, use, enthusiasm enthusiasm refers to 2018) from China
and discard them. Effectively, the widespread adoption of an innovation (TechEnth) the higher level of (Bhat et al., 626 students from
acceptance of new and 2022) India
is based on the degree to which the tastes, interests and needs of the
evolving technologies (Han et al., 607 car drivers
various buyer segments are obliged (Morton et al., 2017). Policy regu­ and ideas among 2017) from China
lations, viz. incentivisation, subsidisation, marketing campaigns etc., buyers. This section of
have a major role in promoting the fruitful mass adoption of electric customers has a
vigorous
vehicles. The academic literature provides an efficient method of seg­
consciousness of
mentation to devise marketing strategies that can group diverse con­ curiosity and is more
sumers into uniform sub-groups, and the campaigns can be devised open to taking risks
strategically for these homogenous sub-groups (Mohamed et al., 2016). that may induce a
Consequently, market segmentation can become an efficient tool to novel technology’s
approval.
examine and direct the large-scale acceptance of evolving transportation
Psychological factors
innovations such as electric vehicles in developing economies such as Social image Social values refer to a (Adnan et al., 391 respondents
India (Singh et al., 2020). Earlier academic studies have suggested (SocIma) sense of social image 2017) from Malaysia
younger consumers to be among the early adopters of electric vehicles and societal (Asadi et al., 177 respondents
association, which 2021) from Malaysia
(Singh et al., 2020). India being privileged with a high proportion of
plays an essential part (Bhat et al., 626 students from
young population (Sharma, 2021); push in the right direction can help in choice-making 2022) India
India achieves its goal of electric mobility and pave the way for green behaviour. The choice
transportation. of a product is
believed to reflect a
consumer’s self-
1.2. Related studies perception and
consumers are often
The success and evolution of electric vehicles will ultimately be keen to represent their
assessed based on the acknowledgement and acceptance of these vehi­ principles and
opinions to the people.
cles by the consumers. There are many reasons responsible for the lower
Social influence Social influence (Jain et al., 284 responses from
acceptability of electric vehicles, viz. economics of electric vehicle (SocInf) incorporates peer 2022) Indian customers
ownership (Berkeley et al., 2017; Tarei et al., 2021), the initial purchase pressure at home, (Khurana 214 car owners
price (Bhat et al., 2022; Verma et al., 2020), driving range and charging community or et al., 2020) from India
time (Tarei et al., 2021; White et al., 2022) and lack of charging infra­ workplace, social (Asadi et al., 177 respondents
media, a sense of 2021) from Malaysia
structure (Haidar and Aguilar Rojas, 2022; Tarei et al., 2021). It is social acceptance, and
important to underline the fact that purchasers’ choice-making behav­ social responsibility.
iour is very complex and depends upon various inherently intricate Owning a vehicle is
behavioural, situational, and contextual factors. Therefore, to analyse seen as a status
symbol, and as such, it
the adoption patterns, it is extremely important to understand the in­
is natural to assume
fluence of these elements. Various factors associated with users’ that consumer choices
behaviour and character, viz. inquisitiveness and openness to newer would be guided by
ideas and innovations, social influence, self-belief and self-image, social factors.
environmental enthusiasm etc., are important in understanding the Attitude Existing theories like (Han et al., 607 car drivers
the theory of planned 2017) from China
adoption behaviour of potential consumers (Bhat et al., 2022; Han et al., behaviour and the
2017; He et al., 2018). There are a host of behavioural theories that have theory of reasoned
been discussed in the academic literature to understand the adoption (continued on next page)
behaviour of electric vehicles. Some of these theories include the

2
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

Table 1 (continued ) Table 1 (continued )


Factor studied Definition Reference, Target group and Factor studied Definition Reference, Target group and
Authors geographic Authors geographic
(Year) region (Year) region

action underscore the Facilitating The dearth of physical (Jain et al., 284 responses from
influential role of conditions public infrastructure is 2022) Indian customers
consumers’ attitudes (FacCond) widely mentioned as (Mukherjee Secondary sources
in shaping their one of the greatest and Ryan, of Data in Ireland
ultimate adoption obstacles to the 2020)
behaviour. extensive acceptance (Bhat et al., 626 students from
Consequently, it can of EVs. 2022) India
be inferred that
consumers are more
predisposed to technology acceptance model (TAM), the theory of reasoned action
embracing electric (TRA), and the theory of planned behaviour (TPB). These theories, as
vehicles when they
harbor positive
well as their modified versions, have been extensively used to under­
attitudes toward them. stand the purchasing behaviour of potential customers. For the purpose
Situational factors of this study, we employ the extended unified theory of acceptance and
Anxiety (Anx) Anxiety (or perceived (Han et al., 607 car drivers use of technology (UTAUT) model (Venkatesh et al., 2003).
risk) signifies the 2017) from China
It is crucial to comprehend the impact of relevant values on con­
doubts observed by (Jain et al., 284 responses from
individuals while 2022) Indian customers sumers’ inclination to embrace electric vehicles. In addition to research
purchasing a product. (Bhat et al., 626 students from exploring the influence of consumers’ personality and values (Bunce
Since EVs are modern 2022) India et al., 2014; Glerum et al., 2014; She et al., 2017), there are in­
technology and are vestigations delving into various factors affecting the adoption of elec­
still evolving, there is
some level of
tric vehicles. Consequently, this study seeks to evaluate the effects of
scepticism associated diverse values and factors on consumers’ willingness to adopt electric
with some of the vehicles, employing the extended unified theory of acceptance and use
characteristics, such as of technology (UTAUT) model (Venkatesh et al., 2003). The UTAUT
vehicle range and
model encompasses six key constructs, namely behavioural intention,
mileage, purchase
price, public charging usage behaviour, social influence, facilitating conditions, performance
network etc., among expectancy, and effort expectancy. This model has proven valuable in
the potential buyers. predicting consumers’ attitudes towards embracing new technology.
Perceived EVs are advertised as (Verma et al., 226 respondents However, enhancing the accuracy and predictive capabilities of the
environmental green innovations; 2020) from India
benefits consumers should be (Alzahrani 847 respondents
UTAUT model can be achieved by adapting and expanding the model to
(EnvBen) more inclined to et al., 2019) from Saudi Arabia include additional contextual variables (Kabra et al., 2017; Khalilzadeh
accept electric (Sajjad et al., 380 respondents et al., 2017; Maillet et al., 2015; Martins et al., 2014). Thus, this study
vehicles to justify their 2020) from academic modifies the UTAUT theory by incorporating the influence of ten latent
societal obligations institutions
constructs on consumers’ intention to adopt electric vehicles. These ten
and improve their
social image. EVs latent constructs comprise environmental enthusiasm, technology
being sustainable enthusiasm, social image, social influence, anxiety (or perceived risks),
inventions can lessen perceived environmental benefits, performance expectancy, effort ex­
GHG emissions and pectancy, facilitating conditions, and attitude. A brief overview of some
make electric vehicles
more attractive to the
of the existing studies that have studied these personality traits and
potential buyers. values are summarised in Table 1.
Performance Performance (He et al., 369 respondents The extensive adoption of electric vehicles is considerably contingent
expectancy expectancy measures 2018) from China on consumers’ opinions (Rezvani et al., 2015). It is vital to highlight that
(PerfExp) the consumers’ belief (Haustein Conventional and
electric vehicles not only help buyers to carry out their daily travel needs
of how satisfactorily and Jensen, electric vehicle
the EVs work. Vehicle 2018) owners from but are also portrayed as an innovation to help alleviate environmental
performance measures Sweden and harms by lessening exhaust productions (Heffner et al., 2007a, 2007b).
such as safety, Denmark It is, hence, vital to study and understand the influence of consumer
comfort, operational values and personality on their intent to accept electric vehicles (Bhat
convenience, mileage,
charging duration,
et al., 2022; She et al., 2017). He et al., (2018) define personality in
consistency and terms of environmental concerns (environmental enthusiasm) and per­
dependability have a sonal innovativeness (technology enthusiasm). Environmental enthu­
substantial influence siasm is an emotional feeling for individuals that emphasises and seizes
on buyers’ choice to
the apprehensions concerning the incessantly worsening ecological
embrace an electric
vehicle. conditions (Bhat et al., 2022). These ideals and principles guide their
Effort expectancy Effort expectancy (Bhat et al., 626 students from choice-making behaviour as they feel a sense of responsibility and are
(EffExp) refers to the effort that 2022) India hence circumspect about the influence their acquisitions might have on
consumers perceive is (Jain et al., 284 responses from the environment (He et al., 2018). Technology enthusiasm specifies the
required to be put in to 2022) Indian customers
degree of openness to novel and inventive designs and innovations
use a product. In
general, it refers to the (Rogers and Shoemaker, 1971). Technology enthusiasts have a vigorous
ease of use of a feeling of curiosity and hence are more open to buying new and prom­
product. ising technologies and products. This inquisitiveness about a particular
Contextual factors
product might elicit the purchase of that product for an individual
(Turrentine and Kurani, 2007). Technological and environmental
enthusiasm are two important personality traits that have been found to

3
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

affect consumers’ vehicle adoption behaviour (Bhat et al., 2022; Bhat significantly impacting buyers’ inclinations for electric vehicles.
and Verma, 2022; Han et al., 2017; He et al., 2018). Apart from these Singh Patyal et al., (2021) identify and examine the relationship
personality characteristics, there are other values that influence the between barriers affecting the adoption of electric vehicles in India,
purchasing behaviour of a product. Some of these values are social applying Interpretive Structure Modeling (ISM) and Matrice d’Impacts
image and social influence, individual attitude, performance expectancy Croisés Multiplication Appliquée à un Classement (MICMAC). Thirteen
and effort expectancy. barriers are identified through a literature review and validated by a
group of experts from industry and academia. Tarei et al., (2021) use
1.2.1. Literature review in the Indian context hybrid two-phase multi-criterion decision-making (MCDM) tools to rank
The existing body of literature concerning electric vehicle adoption and prioritize important barriers/sub-barriers, applying the Best-Worst
behaviour in the Indian context is limited and scarce. The literature on Method (BWM) quantitatively for ranking and prioritizing. The find­
electric vehicle adoption in India reveals a complex interplay of factors ings highlight government policies, charging infrastructure, and
shaping this transition. Singh Patyal et al., (2021) highlight key barriers resource limitations as the most significant barriers, emphasizing the
such as insufficient infrastructure, technical issues, high manufacturing critical influence of barriers such as performance and range, total cost of
costs, and legislative gaps, impeding widespread electric vehicle adop­ ownership, shortage of charging infrastructure, and lack of consumer
tion. In contrast, Chhikara et al., (2021) emphasize government initia­ awareness about electric vehicle technology on electric vehicle adop­
tives in research and financial/non-financial incentives as critical tion. Prakash et al., (2018) identify a set of barriers for mass adoption of
drivers for electric vehicle adoption. Positive influences on electric electric vehicles in the Indian automotive market, using Interpretive
vehicle adoption intention are also observed for attitudes, subjective Structural Modeling (ISM) to interpret the relationship and hierarchy of
norms, perceived behavioural control, moral norms, and environmental these barriers. The study identifies government incentives and consumer
concerns. Despite recent growth in research on global electric vehicle characteristics as crucial areas of concern for improving the mass
adoption, studies specifically focusing on India remain relatively scarce adoption of electric vehicles in the Indian automotive sector. Digalwar
compared to research in developed economies. and Giridhar, (2015) discuss the most critical factors for the promotion
Khurana et al., (2020) contribute an insightful analysis based on data and development of the electric vehicle market in India, utilizing an
from 214 car owners in Delhi, Pune, and Mumbai, using structural Interpretive Structural Model (ISM).
equation modeling (SEM) to investigate latent factors impacting electric Dua et al., (2021) conduct a survey of 51 experts in the Indian light-
vehicle purchase behaviour. Their findings indicate positive influences duty vehicle (LDV) ecosystem to investigate the potential for plug-in
from societal influence, monetary advantages, self-identity, and envi­ electric vehicle adoption in India, the challenges in meeting the coun­
ronmental enthusiasm on electric vehicle purchase behaviour. Note­ try’s goals, and ways to overcome them. The majority of experts indicate
worthy studies incorporating structural equation modeling include Bhat that India will marginally miss its 30% electric vehicle sales target by
et al., (2022), Bhat and Verma, (2023), Jaiswal et al., (2021), Krishnan 2030, citing high upfront costs, lack of policies promoting electric ve­
and Koshy, (2021) and Shalender and Sharma, (2021). Bhat et al., hicles, and a lack of charging infrastructure as main reasons. Chhikara
(2022) utilize the UTAUT model to explore factors influencing electric et al., (2021) explore the drivers for, barriers to, and support mecha­
vehicle adoption among Indian students, identifying positive impacts of nisms involved in making mass adoption of battery electric vehicles in
environmental enthusiasm, technological enthusiasm, and social image. India a reality, conducting 41 interviews across multiple stakeholders
Bhat and Verma, (2023) use a valence theory approach to study the such as automobile manufacturers, suppliers, academicians and con­
impact of identity and utility on the intention to adopt electric two- sultants, electric vehicle owners, potential customers, and government
wheelers among potential Indian two-wheeler buyers. Krishnan and officials. The study identifies government investment in R&D and of­
Koshy, (2021) analyse a sample from Kottayam, Kerala, highlighting the fering financial and non-financial benefits as major drivers, while poor
impact of environmental consciousness, technological consciousness, infrastructure, prevalent product-related technical issues, high
symbolic value, societal influence, and policy implications on the like­ manufacturing costs due to raw material imports, and insufficient leg­
lihood to purchase electric vehicles. Jaiswal et al., (2021) collect re­ islative support around incentives are identified as major barriers.
sponses from the National Capital Territory of Delhi (NCT) and utilize Maheshwari et al., (2022) carry out a primary survey across 10 cities in
the extended Technology Acceptance Model (TAM) to investigate the India to understand consumer perceptions for electric vehicles, with a
mediating role of attitude towards electric vehicles and the moderation sample of around 6000 surveys administered. Consumers prioritize basic
of financial incentives policy in the context of an emerging sustainable electric vehicle infrastructure as the most important criterion impacting
transportation market. Shalender and Sharma, (2021) use an extended their purchase decision, followed by the cost of electric vehicle and its
Theory of Planned Behaviour (TPB) model to predict adoption intention, performance. More than 50% of consumers favour quick charging op­
finding positive relationships between attitude, subjective norm, tions over normal charging, indicating a willingness to pay double for
perceived behavioural control, moral norm, and environmental concern charging at quick charging stations. Barriers such as lack of charging
with adoption intention. infrastructure, high upfront cost, and low driving range are found to be
Jain et al., (2022) employ hierarchical regression analysis based on significant obstacles for large-scale adoption of electric vehicles. Singh
the Unified Theory of Acceptance and Use of Technology (UTAUT), et al., (2021) review policies, strategies, and technical considerations for
collecting data from 284 respondents in the National Capital Region developing electric vehicles, analysing both the Indian electric vehicle
(NCR). The study finds that perceived risk, with environmental appre­ market and the global evolution of electric vehicles.
hensions and government encouragement as moderating factors, pre­ Many of the existing studies from developing economies, including
dicts electric vehicle adoption intentions. The importance of India, and developed economies, report a positive influence of factors
government interventions in decreasing perceived risks and subse­ such as environmental awareness, environmental concerns, technolog­
quently improving electric vehicle adoption behaviour is emphasized. ical innovativeness etc., on the intention to adopt electric vehicles.
Bhalla et al., (2018) conduct a study exploring factors shaping buyers’ However, the relative importance of these factors with respect to other
perceptions of electric vehicles through correlation analysis. Environ­ factors is found to be different. For example, He et al., (2018) in their
mentalism and trust in technology are identified as crucial factors study, found personal innovativeness to be the biggest motivator for the
influencing buyers’ choices when considering electric vehicles as a adoption of electric vehicles ahead of environmental concerns. Han
viable option. Motwani and Patil, (2019) analyse the preferences of et al., (2017) found performance value to be the biggest motivator for
Indian buyers regarding electric vehicles, utilizing a regression model the adoption of electric vehicles. The authors also found epistemic value
based on data obtained from 345 vehicle owners. The findings highlight (same as personal innovativeness) to be a bigger motivator as compared
that recharging and mobility features are the primary factors to social responsibility value (same as environmental concerns).

4
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

Similarly, Schmalfuß et al., (2017) used data obtained from 286 driver’s Table 2
license holders in China and found subjective norms to be the strongest Questionnaire items and codes.
motivators for electric vehicle adoption, followed by experience with Constructs Items Codes
electric vehicles. In a similar study conducted on 264 MBA students from
Environmental I think we need to address environmental EnvEnth1
China, Zhang et al., (2018) found attitude towards electric vehicles to be Enthusiasm problems
a major factor behind the adoption of electric vehicles. The authors also I think we owe it to our future generations to EnvEnth2
highlight the importance of perceived economic and environmental provide them with a quality environment
benefits and subjective norms in improving the adoption patterns of I feel bad about the degrading environment EnvEnth3
I am willing to pay extra money for things to EnvEnth4
electric vehicles. However, some of the studies also report contradictory protect the environment
results as well. For example, although many of the studies highlight the Technological I get excited about a new product in the TechEnth1
importance of social image and subjective norms on the intention to Enthusiasm market
adopt electric vehicles, some studies have found these variables to have I like to buy new products early after their TechEnth2
launch
no significant direct impact on adoption behaviour (Han et al., 2017;
Anxiety (Perceived I would not be able to charge the electric Anx1
Huang and Qian, 2018; Kwon et al., 2020; Simsekoglu and Nayum, risk) vehicle at home
2019). Similarly, Ng et al., (2018) found environmental concerns, and There are not enough charging stations in and Anx2
Simsekoglu and Nayum, (2019) found knowledge of electric vehicles to around the places I travel to
have no impact on electric vehicle adoption behaviour. Electric vehicles take too long to charge Anx3
Social Image Driving an EV would make people perceive SocIma1
Bhat et al., (2022) in their study of young and educated Indians, me as a person who cares about the
found social image to be the biggest motivator for the adoption of environment
electric vehicles. The authors also found environmental enthusiasm to Driving an EV would make me feel like a SocIma2
be a bigger motivator as compared to technological enthusiasm. In responsible citizen of the society
It will give me a feeling of satisfaction to drive SocIma3
contrast, Jain et al. (2022) found social influence to have no influence on
an EV
the intention to adopt electric vehicles. The authors found performance Social Influence I will buy an EV if I read good reviews about SocInf1
expectancy, environmental concerns and facilitating conditions to be them
significant motivators and perceived risks to be significant barriers to I will buy an EV if my friends recommend me SocInf2
electric vehicle adoption. The authors also found gender, age and to buy
I will buy an EV if my relatives recommend me SocInf3
driving range to have no statistical impact on adoption behaviour. In
to buy
contrast, Jaiswal et al., (2022) in their study found young and educated Attitude I am interested in buying an electric vehicle Att1
males to be more open to the adoption of electric vehicles. Asadi et al., Next time I buy a vehicle, I will treat electric Att2
(2021) in their research use structural equation modelling to analyse the vehicle as an option
Next time I buy a vehicle, I will definitely buy Att3
data collected from 153 driver’s license holders and understand the
an electric vehicle
factors affecting electric vehicle adoption. The authors establish per­ I would recommend others to buy an electric Att4
sonal norms and personal values to be the major determinants of the vehicle
intention to adopt electric vehicles and found financial incentives to Perceived Benefits Driving an EV reduces the carbon footprint PerBen1
have no impact on the adoption behaviour. Verma et al., (2020) used Driving an EV reduces our dependence on PerBen2
fossils
data collected from 226 respondents in the city of Bangalore to study the
Performance The EVs in the current market have an PerExp1
influence of various factors on the intention to adopt electric vehicles. Expectancy acceptable standard of quality in terms of
The authors employed Innovation Diffusion Theory to study the impact body material
of four variables, viz., relative advantages, compatibility, complexity, The EVs in the current market have an PerExp2
acceptable standard of performance in terms
and observability, on the intention to adopt electric vehicles using cross-
of “pleasure of the ride.”
tabulations. However, some of the variables, such as social image, social The EVs in the current market have an PerExp3
influence, performance expectancy and effort expectancy, which have acceptable standard of performance in terms
been found to have an influence on the adoption behaviour have not of speed, acceleration etc.
been considered in the study. Effort Expectancy The electric vehicles in the current would be EffExp1
easier to drive
The primary aim of market segmentation is to develop predictable
The electric vehicles in the current market EffExp2
and consistent subclasses of customers so that marketing tactics and have good technological assistance
campaigns can be developed to precisely target those specific individual The electric vehicles in the current market EffExp3
groups (Morton et al., 2017; Zheng et al., 2021). Based on environ­ require less maintenance
Facilitating If there are adequate normal charging points FacCond1
mental concerns, self-image, and cultural values in a multination study
Conditions in and around the city
of Japan, Australia, and South Korea, McLeay et al., (2018) recognised If there are adequate fast charging points in FacCond2
four cluster groups viz. pessimistic, realistic, optimistic, and casuistic and around the city
groups. Another study based on socio-demographic as well as measured If there are adequate battery swap stations in FacCond3
variables theme of clustering the customers recognised a variety of and around the city
If I am provided monetary benefits such as tax FacCond4
segments stretching from pessimistic to enthusiastic (Morton et al.,
exemption, free parking etc.
2017). Market segmentation can be done apriori in which the classifi­ If I am provided with other benefits such as FacCond5
cation is done based on certain predefined socio-demographic traits such reserved parking spaces, access to HOV lanes
as gender, age, income, education etc., followed by profiling based on etc.
measured attitudinal, behavioural, or psychological variables. Seg­
mentation can also be done post-hoc based on certain investigated var­
Although there are studies in the academic literature focusing on the
iables. The similarity between both the methods is that the
motivators and barriers to electric vehicle adoption, studies based on
‘identification profiles’ are decided based on the measured variables.
market segmentation of potential electric vehicle buyers are quite rare in
Attitudinal, behavioural, and psychological values have been observed
literature. These studies are important for developing policies that can
to give superior results while evaluating the eco-friendly behaviour of
be aimed at certain target groups, which can help in higher adoption of
customers as compared to socio-demographic variables (Morton et al.,
electric vehicles in the short, medium, and long term. Based on the
2017). This study, therefore, follows a post-hoc method to classify the
above discussion, we believe a study of this nature would be a valuable
probable electric vehicle buyers into clusters.

5
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

addition to the existing literature by segmenting the young and educated Table 3
adults who are widely recognised as potential electric vehicle buyers. Data description (N = 660).
This research fills this gap in the academic literature by (i) segmenting Demographics Percentage
and profiling the young and educated potential electric vehicle buyers
Age 18–22 16.23
based on attitudinal, behavioural and psychological factors such as so­ 23–28 60.86
cial image, social influence, anxiety, perceived environmental benefits, 29–35 20.00
performance expectancy, effort expectancy, facilitating conditions, and 36 – 45 2.60
attitude and (ii) studying the differences in the personality traits viz. Above 45 0.31
Gender Male 76
environmental enthusiasm and technological enthusiasm between the Female 24
different segments. Annual Family Income (INR) Less than 2 lakhs 11.73
2 lakhs to 6 lakhs 35.80
2. Data collection and survey instrument design 6 lakhs to 12 lakhs 32.17
12 lakhs to 18 lakhs 11.01
More than 18 lakhs 9.27
2.1. Instrument development Education Level Under-Graduation 14.06
Post-Graduation 41.30
A survey instrument was developed and executed to examine the Doctorate 42.02
validity and reliability of the questionnaire. The items used to measure Post-Doctorate 2.61
Experience with EVs Yes 70
the latent factors were primarily extracted from the earlier studies and No 30
modified based on the context of this study. The survey instrument Knowledge of EVs Yes 69.96
consisted of two parts. The first part of the questionnaire measured the No 30.04
responses to various statements on a five-point Likert scale ranging from
strongly disagree to strongly agree. The second part of the questionnaire
Institute of Science (IISc), Bengalore and the data were amassed for a
was used to gather information about the socio-demographics of the
period of two months, from February 2021 to April 2021. Prize money of
respondents. The survey instrument was sent to subject experts from
Rs. 5000 (approximately US$70) was promised to an arbitrarily selected
academia, industry and administration for their review and based on
respondent to ensure a greater response percentage. Finally, we received
their feedback, some of the statements were removed and some of the
a total of 705 responses, out of which 20 were discarded for either
statements were re-worded. Finally, a pilot survey was conducted, and
having missing values, conflicting answers to similar questions or having
114 responses obtained during the pilot survey were used to test the
the same answers for every question. A further 25 responses were cat­
reliability and validity of the questionnaire. Analysis of pilot data
egorised as invalid for having been finished in a very brief duration and
showed Cronbach’s alpha and composite reliability values to be higher
consequently rejected. This left us with 660 utilisable sample points,
than the threshold values of 0.6 hence ensuring the reliability of the
which were used for further analysis.
questionnaire. Some trivial modifications were also incorporated into
The descriptive statistics of the sample demographics are reported in
the instrument based on the feedback from the pilot study. The final set
Table 3. As can be observed from Table 3, males represent 76% of the
of statements is presented in Table 2.
sample and the remaining 24% are represented by females, which is in
accordance with the gender ratio of the institution. Most (97%) of the
2.2. Data collection
participants were aged less than 35 years, which is exactly the popula­
tion that this study aimed to target, and no minors (age less than 18
The data used for this study was collected using an online
years) were interviewed. In terms of educational background, 14.06%,
questionnaire-based survey from the students at a technological uni­
41.30% and 42.02% of the sample were pursuing under-graduation,
versity in a metropolitan city of India. The rationale behind choosing
post-graduation, and doctorates, respectively. Indian Institute of Sci­
this stratum of the population for an online survey was their acquain­
ence being primarily a research institute has a major proportion of
tance with internet skills and openness to adopt innovative technologies.
students who are either pursuing their post-graduation or their doctor­
Younger people have been found to be more open to the early adoption
ates which is reflected in the sample obtained. As expected, a high
of innovations and sustainable technologies such as electric vehicles
proportion of the sample data has had some experience with electric
because of their technological enthusiasm and environmental concerns
vehicles and has some amount of knowledge about electric vehicles.
(Sovacool et al., 2018). Moreover, educated Indian youngsters have also
been found to have a higher propensity towards purchasing a vehicle
3. Data analysis
(Verma et al., 2017), making it important to study their vehicle purchase
behaviour. India, characterised by a median age of little more than 28
3.1. Confirmatory factor analysis
years, is a country with a very high percentage of the youth population.
India has the world’s largest millennial population standing at around
A measurement model, with a diagonally weighted least square
440 million, which makes up approximately one-third of the country’s
estimation method, was employed to understand, and assess the suit­
population, and this population is expected to double in the next half a
ability of the statements to characterise the underlying variables in the
decade (Sharma, 2021). Additionally, two-thirds of the country’s people
questionnaire and assess the linkages between observed data and the
are between the ages of 20 and 35 years (Marwaha, 2021). Significantly,
primary perceived variables. The final list of item statements with a
this cohort of the population is a major force behind the country’s
sample size of 660 respondents, was analysed using confirmatory factor
economy and is the primary wage earner for their families.
analysis (CFA). This analysis was employed to evaluate the legitimacy,
Considering these factors and given the objective of our research, we
dependability, rationality, reliability, and sufficiency of the multi-item
restricted our survey to students from a technological institute in Ben­
survey instrument. Confirmatory factor analysis revealed ten latent
galuru. Bengaluru is a metropolitan city in the state of Karnataka,
constructs, which were named environmental enthusiasm, technological
characterised by a large number of educational institutions and IT in­
enthusiasm, anxiety (or perceived risk), social image, social influence,
dustries. The federal government of Karnataka is determined to make
attitude, perceived benefits, performance expectancy, effort expectancy
Bengaluru the electric vehicle capital of India. As such, there has been a
and facilitating conditions. The results from the confirmatory factor
lot of development in recent years in the direction of infrastructure
analysis are reported in Table 4. As can be observed, the standard
development and awareness campaigns in the city. The questionnaire
loading of all the items on their respective latent constructs ranges
was disseminated through emails to all the students at the Indian

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F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

Table 4
Results from confirmatory factor analysis.
Construct Items Loadings p-value Composite Reliability Cronbach’s alpha AVE

Environmental Enthusiasm (EnvEnth) EnvEnth1 0.832 a 0.796 0.848 0.593


EnvEnth2 0.816 ***
EnvEnth3 0.710 ***
EnvEnth4 0.714 ***
Technological Enthusiasm (techEnth) TechEnth1 0.899 a 0.759 0.709 0.592
TechEnth2 0.612 ***
Anxiety (Anx) Anx1 0.714 a 0.712 0.766 0.547
Anx2 0.883 ***
Anx3 0.593 ***
Social Image (SocIma) SocIma1 0.787 a 0.815 0.824 0.652
SocIma2 0.756 ***
SocIma3 0.876 ***
Social Influence (SocInf) SocInf1 0.540 a 0.841 0.805 0.681
SocInf2 0.964 ***
SocInf3 0.907 ***
Perceived Benefits (PerBen) PerBen1 0.929 a 0.765 0.835 0.739
PerBen2 0.783 ***
Performance Expectancy (PerExp) PerExp1 0.760 a 0.790 0.832 0.643
PerExp2 0.869 ***
PerExp3 0.773 ***
Effort Expectancy (EffExp) EffExp1 0.632 a 0.641 0.677 0.430
EffExp2 0.654 ***
EffExp3 0.640 ***
Facilitating Conditions (FacCond) FacCond1 0.650 a 0.856 0.856 0.589
FacCond2 0.819 ***
FacCond3 0.725 ***
FacCond4 0.835 ***
FacCond5 0.793 ***
Attitude (Att) Att1 0.763 a 0.841 0.881 0.657
Att2 0.783 ***
Att3 0.838 ***
Att4 0.855 ***

Model fit measures Normed Chi-squared 2.339


CFI 0.990
TLI 0.988
RMSEA 0.046
SRMR 0.050

Table 5
Correlation matrix and square roots of average variance extracted.
EnvEnth TechEnth Anx SocIma SocInf Att PerBen PerExp EffExp FacCond

EnvEnth 0.770
TechEnth 0.279 0.770
Anx 0.095 0.078 0.740
SocIma 0.458 0.279 0.178 0.807
SocInf 0.039 0.024 0.003 0.276 0.825
Att 0.446 0.357 0.245 0.637 0.123 0.811
PerBen 0.359 0.220 0.138 0.528 0.153 0.422 0.860
PerExp 0.236 0.276 0.218 0.325 0.121 0.379 0.280 0.802
EffExp 0.152 0.248 0.216 0.398 0.089 0.495 0.266 0.664 0.656
FacCond 0.259 0.125 − 0.23 0.302 0.259 0.318 0.267 0.198 0.149 0.767

between 0.540 and 0.899, which is higher than the suggested threshold variables and have been reported on off-diagonal elements in Table 5. As
value of 0.50 and all the loadings were found to be statistically signifi­ can be observed, the correlation coefficients are lower than the square
cant as well. Several statistical indices were evaluated to assess the root of the average variance extracted for all constructs establishing
goodness of fit of the estimated model and have been reported in discriminant validity of the survey instrument.
Table 4. Results show comparative fit index (CFI) (0.990), Tucker Lewis
index (TLI) (0.988), root mean square of approximation (0.046), and 3.2. Cluster analysis
standardised root mean square error (0.050) to be well within the sug­
gested threshold limits suggesting a good model fit (Byrne, 2016; Hair Once the criteria for evaluating the consistency, rationality and
et al., 2014). Moreover, Cronbach’s alpha and composite reliability of legitimacy of the survey instrument were satisfied, a dual-step clustering
each of the constructs is found to be greater than the threshold value of analysis was employed to segment the sample. The first step involved
0.60, establishing the reliability of the constructs (Ab Hamid et al., 2017; checking the appropriate number of clusters that can be drawn out of the
Ursachi et al., 2015). In addition, the average value extracted (AVE) for sample based on eight latent factors, viz. anxiety (or perceived risk),
each of the constructs is greater than the acceptable threshold value of social image, social influence, attitude, perceived benefits, performance
0.50 establishing convergent validity. Furthermore the correlation co­ expectancy, effort expectancy and facilitating conditions. Hierarchical
efficients among the latent constructs and average variance extracted clustering was used for this purpose, and the most appropriate number
values were also calculated to assess the discriminant validity of the of clusters obtained was three. In the second step, the k-means clustering

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F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

Table 6 Table 7
Results of one-way ANOVA test. Cluster centres.
Variables Sum square df F-value p-value Construct Mean Cluster 1 Cluster 2 Cluster 3
values (Idlers) (Indifferents) (Leads)
Influence of age
Social influence 0.66 1 2.690 0.100 Anxiety − 0.007 − 0.192 0.049 0.324
Influence of gender (Perceived
Perceived benefits 2.80 1 5.035 0.025 Risk)
Performance expectancy 5.04 1 5.533 0.018 Social Image − 0.018 − 0.607 0.040 0.748
Effort expectancy 5.04 1 18.770 < 0.001 Social − 0.006 − 0.167 0.056 0.099
Facilitating conditions 2.01 1 8.053 0.004 Influence
Influence of education Perceived − 0.051 − 0.710 0.022 0.787
Social image 3.90 1 8.406 0.003 Benefits
Social influence 0.98 1 3.973 0.046 Performance − 0.006 − 0.484 0.051 0.596
Perceived benefits 2.70 1 4.870 0.027 Expectancy
Performance expectancy 2.38 1 2.377 0.100 Effort − 0.001 − 0.406 0.319 0.550
Effort expectancy 2.38 1 8.863 0.003 Expectancy
Attitude 1.76 1 4.228 0.040 Facilitating − 0.023 − 0.325 0.044 0.287
Influence of experience Conditions
Anxiety 1.89 1 5.738 0.016 Attitude − 0.007 − 0.662 0.067 0.826
Perceived benefits 1.60 1 2.903 0.081 Sample split − 213(32.27%) 306(46.36%) 141(21.36%)
Performance expectancy 0.41 1 2.643 0.091
Attitude 2.10 1 5.039 0.025
Influence of knowledge electric vehicle consumers. The findings of these studies confirm the
Anxiety 1.02 1 3.088 0.070
existence of stereotypical perceptions regarding electric vehicles and
Social Image 11.07 1 23.864 < 0.001
Social influence 0.54 1 2.173 0.009
gender. Education is found to significantly impact social image, social
Perceived benefits 15.10 1 27.063 < 0.001 influence, perceived benefits, performance expectancy, effort expec­
Performance expectancy 6.66 1 14.315 < 0.001 tancy, and attitude towards electric vehicles. Experience is found to have
Effort expectancy 6.66 1 24.780 < 0.001 a statistically significant influence on anxiety, perceived benefits, per­
Facilitating conditions 3.04 1 12.212 < 0.001
formance expectancy, and attitude, and knowledge is found to have a
Attitude 24.34 1 58.428 < 0.001
significant impact on all eight latent factors. These findings highlight the
importance of knowledge and experience in diminishing the negative
algorithm was applied to investigate the cluster inclusions. perceptions towards electric vehicles and aiding in the widespread
K-means clustering is an iterative centroid-based clustering algo­ adoption of electric vehicles. These findings are in line with some of the
rithm where the number of clusters are already defined and each of the earlier studies (Bansal et al., 2021; Bhat and Verma, 2023; Simsekoglu,
data point is assigned to a particular cluster. Initially only the number of 2018). Because of these differences, the above-stated eight constructs
clusters are known and not the cluster centroids. Hence random points were used for clustering analysis. k-means clustering technique was
are selected and defined as cluster centroids and subsequently the data employed for segmentation using the factor scores of eight latent vari­
points are assigned to clusters based on their proximity to cluster cen­ ables which affect the electric vehicle adoption behaviour. Additionally,
troids. In the next steps the centroids are re-initialised based on the an effort was made to assess if the environmental enthusiasm and
average location of all the data points in the clusters and subsequently technological enthusiasm differed significantly across the different ob­
all the data points are again re-assigned to clusters. The iterative algo­ tained clusters.
rithm finds and minimises the cumulative distance between the data
points and their respective cluster centroids. k-means clustering keeps
maximising the separation between the segments and minimising the 3.3. Results and discussions
separation within the segments till the ending cluster centres are
identified. A sample of 660 respondents (potential vehicle buyers) was
Factor scores were extracted for each of the latent variables after segmented into three clusters by using the k-means clustering technique.
completing confirmatory factor analysis, and these factor scores for the The outcomes from cluster analysis, as reported in Table 7, suggest that
test variables were employed for the clustering process. The factor scores the three segments have different affinities towards accepting electric
were also used to assess their disparity across various socio-demographic vehicles. These three segments of potential vehicle buyers significantly
variables using a one-way ANOVA test. One-way ANOVA test is used to vary from each other in terms of the significance they give to the eight
understand if there exists a statistically significant disparity in a features associated with electric vehicle adoption. In order to allocate
dependent variable based on certain independent variables. The detailed suitable labels to the three segments, the cluster centre values from
results of this analysis are presented in Tables A.1 to A.8 in the appendix. Table 7 are compared and contrasted with the mean factor scores of the
However, the socio-demographic variables which are found to have a test variables presented in the second column of Table 7 for all eight
statistically significant impact on the latent variables are presented in clustering factors. It is found that mean cluster values of respondents in
Table 6. cluster 1 are less than mean values for all eight clustering variables and
As can be observed from Table 6, age has a statistically significant hence have been labelled as “innovation adoption idlers”. In contrast,
impact on social influence. Gender has a significant impact on perceived cluster 3 respondents have the highest values for all variables and hence
benefits, performance expectancy, effort expectancy, and facilitating have been classified as “innovation adoption leads”. Similarly, the mean
conditions. The perception of a novel and innovative technology as cluster values of eight factors for cluster 2 respondents lie between those
related to femininity has been observed in the existing literature. This of cluster 1 and cluster 2 (mostly close to zero) and hence have been
perception is primarily based on factors such as their ease of operation tagged as “innovation adoption indifferents”.
and acceptability of higher risks (Lee et al., 2010; Müller-Seitz et al., The respondents in the first cluster of the sample named “innovation
2009), technological features that are sometimes portrayed as risks adoption idlers” are found to display particularly disapproving opinions
(Garbarino and Strahilevitz, 2004), and their environmental profile regarding all the latent variables. The members of this cluster are found
(Mostafa, 2007). The study by He et al. (2018) further explores these to have a higher perception of risk (− 0.192) towards buying an electric
discussions by analysing the perspectives of both male and female vehicle. All the clustering variables are perceived negatively by the
customers of this cluster. The respondents in this segment of the sample

8
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

Table 8 idlers have little or no knowledge of electric vehicles as compared to


Consumer characteristics within the three clusters. 47% of the leads who have little or no knowledge. These findings
Socio-demographic variable Cluster 1 Cluster 2 Cluster 3 highlight the importance of spreading awareness about electric vehicles
(Idlers) (Indifferents) (Leads) which can help in diminishing the negative perceptions and help in
Gender Male 76.23% 77.32% 78.20% wider acceptance of electric vehicles.
Female 23.77% 22.68% 21.80% Some of the major implications of the above findings can be sum­
Age 18 – 22 years 14.35% 16.19% 16.54% marised below:
23 – 28 years 64.36% 59.79% 60.90%
29 – 35 years 18.81% 20.96% 18.80%
36 years and 2.97% 2.75% 4.51%
• The results indicate a strong influence of perceived environmental
above benefits on the innovation leads towards their vehicle adoption
Annual Less than 2 lakhs 10.40% 12.37% 12.30% behaviour. This group of consumers can be easily targeted to
household 2 lakhs – 6 lakhs 33.17% 38.14% 35.34% improve the market penetration of electric vehicles by marketing and
income 6 lakhs – 12 lakhs 35.15% 30.93% 31.58%
highlighting the environmentally friendly nature of electric vehicles.
(INR) Above 12 lakhs 21.29% 18.56% 21.05%
Education Undergraduates 11.39% 13.40% 13.53% This factor might be very closely related to the subjective norms of
Postgraduates 40.10% 45.02% 47.37% self-image, which is also observed to be a strong determinant of
Doctorates 48.51% 41.58% 39.10% electric vehicle adoption behaviour. The policies, strategies and
Knowledge of Little or no 84.65% 70.45% 46.62% marketing campaigns should be formulated in such a way that fosters
electric knowledge
vehicles Good amount of 15.35% 29.55% 53.38%
positive attributes such as the social and economic value of electric
knowledge vehicles.
Experience No EV experience 35.15% 28.87% 27.07% • Performance expectancy and ease of use of electric vehicles have also
with electric Experienced EV 64.85% 71.13% 72.93% been found to have a strong influence on the adoption behaviour
vehicles
along with the facilitating conditions. “Leads” can easily be targeted
as early adopters of electric vehicles with proper in-formation about
perceive the risks associated with purchasing an electric vehicle to be the intrinsic benefits and features of electric vehicles. The adoption
much higher as compared to other segments. The influence of social rate can be improved by improving the facilitating conditions in
peers (− 0.167) on the electric vehicle adoption behaviour or the terms of the infra-structural setups and monetary and non-monetary
perceived improvement in self-image (− 0.607) due to electric vehicle benefits.
adoption is also perceived to be ineffective by this segment of con­ • The cluster of innovation leads is comprised of more people with
sumers. Moreover, this group of consumers also have a negative good knowledge and experience with electric vehicles. Knowledge of
perception of the benefits associated with purchasing an electric vehicle electric vehicles and experience with electric vehicles has been found
in terms of sustainability and environment (− 0.710). Idlers also have to have a positive influence on the adoption behaviour of electric
negative opinions about the performance (− 0.484) and ease of use vehicles in some of the past studies as well. Policies should be framed
(− 0.406) of electric vehicles. This group of consumers is not influenced to spread awareness and proper knowledge about electric vehicles.
by incentives and policies (− 0.325) and hence has a negative attitude
towards purchasing an electric vehicle (− 0.662). The third cluster of the The results also imply “indifferents” to be the group of people with a
respondents, termed “innovation adoption leads”, showed positive re­ neutral or faintly positive opinion of electric vehicle adoption. This can
sponses toward all the clustering variables. This group of customers be seen as a good opportunity to turn this segment of the younger
perceives social image (0.748) and social influence (0.099) associated educated population into early adopters of electric vehicles. Promoting
with purchasing an electric vehicle positively. In addition, this segment the widespread adoption of electric vehicles among this group would
is also convinced of the environmental benefits (0.787) associated with require a multifaceted approach through various policy measures. By
adopting an electric vehicle. They also have positive opinions about the strategically combining different policy measures, policymakers can
performance (0.596) and ease of use (0.556) of electric vehicles and create an environment conducive to widespread electric vehicle adop­
hence are more open to adopting electric vehicles in the near future tion, effectively addressing technology indifference. This can be ach­
(0.826). The second segment of the consumers labelled as “innovation ieved by targeted policies and campaigns aimed at swaying information
adoption indifferents” show slightly better responses to the clustering by transposing key attributes.
variables than the first segment but not as good as the third segment. The
mean cluster values for all the clustering factors for this segment were • Provide direct monetary benefits like tax credits or rebates to in­
close to zero, indicating their indifference to these variables. dividuals buying electric vehicles. Exemption or reduction in road
Table 8 provides a distribution of socio-demographic characteristics taxes or tolls for electric vehicle owners can also enhance the eco­
within each of the three clusters. As can be observed, there is not much nomic attractiveness of electric vehicles. Many developing econo­
difference in terms of the distribution of gender, age, annual income, mies such as India are providing subsidies to electric vehicle buyers
and education across the three clusters. However, approximately 53% of which has helped in the higher penetration rates of electric vehicles.
the respondents in cluster 3 (leads) have good amount of knowledge • Governments need to invest and develop a comprehensive network
about electric vehicles as compared to 15% of respondents with good of public charging stations to address concerns about limited range
amount of knowledge in cluster 1 (idlers). Similarly, around 85% of the and facilitating conditions.

Table 9
ANOVA results by clusters and post hoc test.
Dependent variable Sum square df f-value p-value Independent groups Mean difference p-value

EnvEnth 79.16 2 113.50 < 0.001 Cluster 3 ~ Cluster 1 0.976 < 0.001
Cluster 2 ~ Cluster 1 0.519 < 0.001
Cluster 3 ~ Cluster 2 0.458 < 0.001
TechEnth 41.00 2 51.84 < 0.001 Cluster 3 ~ Cluster 1 0.707 < 0.001
Cluster 2 ~ Cluster 1 0.357 < 0.001
Cluster 3 ~ Cluster 2 0.350 < 0.001

9
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

• Launch awareness campaigns to inform the public about the ad­ Table A.1
vantages of electric vehicles, dispel misconceptions, and address Results of one-way ANOVA test with anxiety as a dependent variable.
concerns. Automobile companies can also organize test drive events Anxiety ~ Factors Sum square df F-value p-value
to provide first-hand experiences with electric vehicle performance.
Age 0.24 1 0.737 0.391
Gender 0.79 1 2.411 0.121
On the other hand, motivating and influencing the idlers would Income 0.48 1 1.452 0.228
require stronger and stringent policies. Policies such as higher conges­ Education 0.06 1 0.184 0.669
tion charges on non-electric vehicles, prohibiting the use of non-electric Experience 1.89 1 5.738 0.016
Knowledge 1.02 1 3.088 0.070
vehicles in and around central business districts, and penalising high
emission vehicles in terms of higher toll and road taxes can motivate
technology idlers towards buying electric vehicles.
Furthermore, to achieve a deeper understanding of the electric Table A.2
vehicle adoption behaviour, the three clusters obtained from clustering Results of one-way ANOVA test with social image as a dependent variable.
were evaluated with regard to environmental enthusiasm and techno­ Social Image ~ Factors Sum square df F-value p-value
logical enthusiasm as independent variables and the three clusters as Age 0.16 1 0.336 0.561
dependent variables. The findings are reported in Table 9. The results Gender 0.17 1 0.374 0.541
suggest that both environmental enthusiasm and technological enthu­ Income 0.84 1 1.804 0.179
Education 3.90 1 8.406 0.003
siasm differ significantly across three clusters based on p-values lesser
Experience 0.08 1 0.169 0.689
than 0.001. A post-hoc analysis was also carried out to assess if the Knowledge 11.07 1 23.864 < 0.001
environmental enthusiasm and technological enthusiasm is statistically
distinct between innovation leads, indifferents and idlers. The findings
suggest significant variations among the scores of environmental
Table A.3
enthusiasm and technological enthusiasm between the segment pairs.
Results of one-way ANOVA test with social influence as a dependent variable.
The environmental enthusiasm of innovation leaders is found to be
significantly higher than the environmental enthusiasm of innovation Social Influence ~ Factors Sum square df F-value p-value

indifferents and innovation idlers, with the mean cluster difference be­ Age 0.66 1 2.690 0.100
tween leads and indifferents being 0.458 and mean cluster difference Gender 0.09 1 0.353 0.552
Income 0.05 1 0.185 0.667
between leads and idlers being 0.976. Similarly, the technological
Education 0.98 1 3.973 0.046
enthusiasm of innovation leaders was also found to be higher than that Experience 0.01 1 0.006 0.937
of innovation idlers and innovation indifferents, as indicated by a mean Knowledge 0.54 1 2.173 0.009
difference of 0.707 and 0.350, respectively. These results show greater
environmental concerns and a higher degree of acceptance towards in­
novations among innovation leads as compared to the other two groups. Table A.4
Results of one-way ANOVA test with perceived benefits as a dependent variable.
4. Conclusions, recommendations, and limitations
Perceived Benefits ~ Factors Sum square df F-value p-value

Age 0.60 1 1.092 0.296


The principal aim of this research was to identify the presence of
Gender 2.80 1 5.035 0.025
clusters within the young and educated potential buyers of electric ve­ Income 1.00 1 1.769 0.180
hicles. The study demonstrates the usefulness of different psychographic Education 2.70 1 4.870 0.027
factors in segmenting potential electric vehicle buyers into different Experience 1.60 1 2.903 0.081
segments. This study offers an nomenclature to classify potential con­ Knowledge 15.10 1 27.063 < 0.001

sumers of electric vehicles into segments using a posthoc clustering


approach. The clustering of potential buyers into segments is done based developing nations, as well as help planners and decision-makers
on the perception of individuals towards some of the test variables that formulate policies for extensive adoption and convenient use of elec­
affect consumers’ intention to adopt electric vehicles. These factors tric vehicles.
(viz., social image, social influence, anxiety or perceived risks, perceived This study can be used as a basis for understanding electric vehicle
benefits, performance expectancy, effort expectancy and facilitating acceptance in developing countries. However, a limitation of this study
conditions) are incorporated from the extended unified theory of is that it is based mostly on the responses of highly educated students
acceptance and use of technology (UTAUT) model. By investigating from a technological university. Future studies should focus on obtain­
these features, the respondents were segmented into three clusters, ing responses from wider sections of the student community. Further­
namely innovation adoption leads, innovation adoption indifferents and more, studies should also try to focus on wider sections of the population
innovation adoptions idlers. and incorporate more predictor variables to further understand the gap
The first segment of idlers is found to display particularly dis­ between different segments.
approving opinions regarding all the latent variables, with cluster means
for all the latent factors being negative and lower than the mean values.
On the contrary, the cluster means for all clustering variables in the case
of leads is observed to be positive and higher than the mean values, Table A.5
implicating a positive perception of these variables among this group. Results of one-way ANOVA test with performance expectancy as a dependent
With respect to marketing, it is very important for strategists and variable.
planners to target and capture this cluster of technology leaders as this Performance Expectancy ~ Factors Sum square df F-value p-value
can help in the widespread adoption of electric vehicles in the near
Age 0.l6 1 0.148 0.700
future. In addition, the cluster of indifferents has neutral opinions of all Gender 5.04 1 5.533 0.018
the latent variables used for clustering. This group of people should also Income 0.14 1 0.086 0.769
be seen as an opportunity for increasing the adoption behaviour in the Education 2.38 1 2.377 0.100
medium term. This study will make a significant contribution to the Experience 0.41 1 2.643 0.091
Knowledge 6.66 1 14.315 < 0.001
scarce body of literature existing on the adoption of electric vehicles in

10
F.A. Bhat et al. Case Studies on Transport Policy 15 (2024) 101147

Table A.6 Bhat, F.A., Verma, A., 2023. Consumer intention to accept electric two-wheelers in India:
Results of one-way ANOVA test with effort expectancy as a dependent variable. a valence theory approach to unveil the role of identity and utility. Transportation
(amst) 1–41. https://doi.org/10.1007/S11116-023-10430-Z.
Effort Expectancy ~ Factors Sum square df F-value p-value Bhat, F.A., Verma, M., Verma, A., 2022. Measuring and modelling electric vehicle
adoption of Indian Consumers. Transport. Develop. Econ. 8, 6. https://doi.org/
Age 0.16 1 0.598 0.439 10.1007/s40890-021-00143-2.
Gender 5.04 1 18.770 < 0.001 Bunce, L., Harris, M., Burgess, M., 2014. Charge up then charge out? Drivers’ perceptions
Income 0.14 1 0.521 0.470 and experiences of electric vehicles in the UK. Transp. Res. Part A Policy Pract. 59,
Education 2.38 1 8.863 0.003 278–287. https://doi.org/10.1016/j.tra.2013.12.001.
Experience 0.41 1 1.512 0.219 Byrne, B.M., 2016. Structural Equation Modeling With AMOS: Basic Concepts,
Knowledge 6.66 1 24.780 < 0.001 Applications, and Programming, 3rd ed. Routledge Academy.
Chhikara, R., Garg, R., Chhabra, S., Karnatak, U., Agrawal, G., 2021. Factors affecting
adoption of electric vehicles in India: an exploratory study. Transp. Res. D Transp.
Environ. 100 https://doi.org/10.1016/j.trd.2021.103084.
Table A.7 Digalwar, A.K., Giridhar, G., 2015. Interpretive structural modeling approach for
development of electric vehicle market in India. Procedia CIRP 26, 40–45. https://
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