Analysing the evolution of new energy vehicle consumption market: A “leading” and “following” consumers' perspective

Abstract

Under the background of “subsidies decline” and “leading” consumers' saturation in China's new energy vehicle (NEV) market, this emerging industry is facing new challenges. Promoting the evolution from a niche market composed of “leading” consumers to a mass market composed of “following” consumers, becomes the key to the sustainable development of China's NEV industry. Based on a “leading” and “following” consumers' perspective, this paper combines experimental research with questionnaire survey, and studies the similarities and differences in the influence of “leading” consumers' purchase advice from three types of communities, including relatives & friends, colleagues, and neighbors, on “following” consumers' NEV purchase intention. This paper also analyses the mediating effect of trust in products and perceived value, as well as the moderating effect of word-of-mouth quality. The results reveal that: (1) “Leading” consumers' purchase advice from both relatives & friends community and colleagues community has a positive impact on “following” consumers' NEV purchase intention, while the impact of purchase advice from neighbors community is not significant. (2) In China, “Leading” consumers' purchase advice has a greater impact in non-promotion and application cities. (3) Trust in products and perceived value play the mediating role and have a chain mediating effect. (4) Word-of-mouth quality has a positive moderating effect, and the moderating effect exists in the first half of the mediation paths, forming the moderated mediation model. Meanwhile, only in the context of high word-of-mouth quality, the impact of “leading” consumers' purchase advice from colleagues community is significant. For sustainable development in the NEV industry, enterprises should implement market segmentation strategy to identify “following” consumers and anchor the non-promotion and application market. Enterprises should also implement viral marketing strategy to improve word-of-mouth quality, and better utilize the impact of “leading” consumers' purchase advice.