Preview

Innovation for Business Success

Better Essays
Open Document
Open Document
2889 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Innovation for Business Success
Why Do People Buy Hybrid Cars?

Wan Ying Chua, Alvin Lee & Saalem Sadeque, The University of Western Australia

Abstract This article reports on the underlying dimensions used by petrol-electric hybrid and conventional car buyers when evaluating a vehicle with the intent to purchase. Buyers of conventionally fuelled vehicles reported that they considered quality and performance as the most important determinants of choice. They rated as least important, the image they derive from driving a particular car and social influence. On the other hand, petrol-electric hybrid car buyers reported that social influence and projecting a “green” image were most important considerations and quality and appeal were least important. These findings provide social marketers with a crucial understanding that helps in the selection of an appropriate model to promote the diffusion of eco-friendly vehicles.
Why Do People Buy Hybrid Cars?

Consumers are buying increasing numbers of environmentally friendly cars. Increasingly, many of these environmentally conscious consumers choose to purchase petrol-electric hybrid vehicles. In this category of “greener-cars”, Toyota’s Prius model is reported to be the market leader. In 2009-10, it was the best-selling car in Japan, an important leading market for automobile trends (Mick 2010). Sales of the Prius keep growing despite well-publicised quality and safety problems (Mitchell & Linebaugh 2010). In fact, the demand for petrol-electric hybrids is so strong that Toyota has introduced a second and larger Camry branded hybrid vehicle into Australia. Other car manufacturers are following with their own models, indicating that there is likely to be sustained demand for this type of light-duty passenger vehicle.

Toyota markets the Prius as an environmentally better alternative to conventional vehicles because it uses less fuel and has lower emissions. This marketing position appears to appeal to consumers who do

You May Also Find These Documents Helpful

  • Powerful Essays

    In the past five years, all of the domestic and global car manufacturers were struggling with the contraction of car demanding. Due to the fears of the future economy, customers postponed to purchase new vehicles in the world. In Australia, smaller and more fuel-efficient cars started to be the first choice for the local consumers while the main stream of the market is second-hand vehicle. Because of these reasons, the sales value of the core products of Holden which traditionally known as large, powerful and fuel-inefficient are declining (Ibisworld 2013).…

    • 1593 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    The company image is linked to the go green movement throughout the country. If it can be shown to potential customers the environment is a major concern, it may bring more business. Alternative fuel vehicles are linked to improved air quality, renewable fuel sources, and decreased dependence on imported oil. When the vehicles produce lower emissions, they lower the company’s carbon footprint. The fact that alternative fueled vehicles and hybrids use fewer oil products also helps to reduce the national dependency on imported oil. With the air quality and oil…

    • 1880 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Prius Marketing

    • 305 Words
    • 2 Pages

    I believe based on our current economic environment that Toyota Prius is in a seller’s market. I think as people get more involved in helping make the environment a greener place they look for ways to help. One of the ways to help would be by purchasing a vehicle such as the Prius. Toyota launched a third generation Prius with a lot of features that I think consumers will be interested in. I don’t think that Toyota will have a problem at all selling vehicles, in fact may end up having the same problem as the beginning and not be able to produce them fast enough.…

    • 305 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Originally Toyota targeted younger, technologically savvy, leading-edge buyers (Cannon, et. al. p. 634). They priced the vehicle under twenty thousand to keep it affordable, and though it had a slow start, Prius-Genius was a success. Within a few years the competition for “green” vehicles grew substantially. Toyota began to not only maintain, but to increase their market share by expanding their product offerings to accommodate a more diverse group of car buyers. The Prius got bigger, accommodating families, today offering 4 different Prius product lines, the Prius, the Prius V, the Prius C, and the Prius-Plug-in. Toyota didn’t stop there; they have since expanded their Hybrid technology to include the Camry, Avalon, Highlander, and Rav4. Of the 12 products Toyota offers today, almost half of them have a Hybrid version (5 of 12). Toyota is still using the same marketing tools of advertisements, promotions, and vehicle incentives; it just applies to a much broader target audience.…

    • 447 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    While it may seem that electric cars are a new fad of the twenty-first century, this is not the case. Electric cars have been around since roughly the 1890s, and in fact they were the dominant motorized vehicle in the market until about 1929 [1, p. 17]. This was due mostly to high gas prices during war and the fact that back then having a range of 18 miles was more than enough to meet the needs of most people. But then as cities grew and gasoline powered cars became cheaper and easier to use, the electric car was slowly phased out, until about the 1990s. Then began the renewed interest in air quality and in the future of the electric car [1, p. 17]. In 1990 the Clean Air Act was passed, and now the gas guzzling and air fouling cars that had become so prominent began to have regulations forced down on them to improve their efficiency and to make them cleaner [2, p. 642]. This Clean Air Act coupled with the Energy Act of 1992 encouraged research into the electric car and reenergized the developments of environmentally friendly cars [1, p.17]. All of that research and dedication finally cumulated in the release of the Toyota Prius on the American market in 2000, and from that moment, it has become a cultural icon, and a topic for hot debate [3]. The main topic of the debate is at the very foundation of the Prius: whether or not the Prius is truly ‘green’.…

    • 3338 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Toyota’s largest target market would be educated working adults in developed urbanised countries especially in the West where there is a subculture of environmental concerns and issues which are relatively more active compared with the rest of the world. Thus the educated working class in these countries would be attracted to the Prius’ energy and fuel savings, and automatic battery recharging which would not only be a lot more environmentally friendly, but would ensure a more smoothly-powered ride to work in a congested city morning. Furthermore, the affordability of the Prius as compared to other Toyota vehicles coupled with even greater cost savings on fuel – cuts fuel consumption by 40% - is an added incentive for these environmentally conscious consumers as they might worry that specially designed green technology might be expensive…

    • 712 Words
    • 3 Pages
    Good Essays
  • Good Essays

    It is no secret that one of the most popular trends in today's society is "going green" to help the economy, save the world, and so on. It is also no secret that gasoline prices have steadily increased over the years, and four dollars a gallon does not exactly agree with our wallets. In an effort to "go green" and save money on gasoline, hybrid cars have recently become a great option for those interested in getting high gas mileage and saving lots of money… or so they think. Although hybrid cars have high gas mileage and extend the time between visits to the pump, reviewing the raw facts about hybrid cars while asking the question "Do hybrid cars seem like a money-saving solution?" is a wise decision.…

    • 775 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Gm Chevy Volt

    • 2084 Words
    • 9 Pages

    Klein, J. (2007). Topline Strategy Group: Why People Really Buy Hybrids. Retrieved August 24, 2009, from: http://www.toplinestrategy.com/Topline_Strategy_Report_ Why_People_Really_Buy_Hybrids.pdf…

    • 2084 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    “Should we own vehicles that are more fuel efficient” is a question that a lot of people are asking now. And the answer is yes, we should own vehicles that are more fuel efficient to help our environment but there are also reasons why we are unable to own fuel efficient vehicles. This paper will be explaining both sides of this argument about whether we should own more fuel efficient vehicles or not. The arguments that will be covered will be if the pros of buying a hybrid and the cons of buying a hybrid, information about the costs of purchasing a hybrid and the mechanical pros and cons compared to a regular vehicle compared to a hybrid.…

    • 1625 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    The study found that, even at today's high gas prices, only a handful of hybrid cars make financial sense for a consumer who buys a new car every five years or less and drives an average number of miles per year. Even at Los Angeles-area gas prices, there are only five hybrid cars that would allow consumers to recoup their additional investment before they sold the car, assuming they drive an average of 15,000 miles per year. In order of shortest time to break even, they…

    • 1197 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Ever since the invention of automobiles, something can always be said about someone based on the type of car they drive. When someone drives a big gas guzzling SUV or truck, someone always says, “what a terrible person! Don’t they understand what they are doing to the environment?” Then someone drives by in a Toyota Prius and that same person says “Now that’s a smart person. Why can’t everyone in the world be like them?” A wise man once said “Ignorance is bliss” and this applies very well to this situation. Car companies such as Toyota and Honda make hybrid-electric cars in order to save the environment from harmful emissions. It is a fact that hybrid-electric cars produce significantly fewer emissions…

    • 1804 Words
    • 8 Pages
    Better Essays
  • Good Essays

    Hybrid Vehicles Cons

    • 996 Words
    • 4 Pages

    However, these two sources are used alternatively by the car and are not merged with each other. Hybrid cars are gaining popularity because of their economical, social, and environmental benefits. But, these 'green cars' also have some disadvantages which should be kept in mind before considering them for a purchase.…

    • 996 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Alternative Fuels Essay 6

    • 2222 Words
    • 9 Pages

    Today there are hybrid cars, they still use gasoline but just a fewer amount of it, it is a good start but there needs to be more reliable fuels to use. A hybrid car is an automobile powered by a cross of two different power sources. The hybrid cars today are gasoline-electric vehicles. Although they still use gasoline, it uses less gas than a regular gasoline powered vehicle. There are also controversies with hybrid vehicles such as it being too quiet for blind people to hear. Hybrids are made to use less gas per mileage, but a gasoline-electric hybrid still does not eliminate America’s oil dependency (Hayhurst 1). There needs to be better fuels that are safer and cleaner for the environment.…

    • 2222 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    Since the federal governmental showed support of the Toyota Prius Hybrid vehicle , and customers can get addiction tax breaks, it less customers burden, and this is one of points to make them feel like to buy Prius.…

    • 327 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Toyota dealt with their customers by setting up website to educate the customers about the Toyota Prius. They took advantage of Earth Day to send out green seed cards shaped like Toyota’s logo to prospective buyers and they also gave away some green Prius at Earth Day events. However, Toyota did not recognise that consumers normally don’t buy cars for the saving in the long-run so “fuel savings are not going to be the key it convincing people to purchase the Prius” [principles of marketing]. As a result of this Toyota have asked governments to give tax cuts to cars with better fuel consumption.…

    • 1582 Words
    • 7 Pages
    Powerful Essays