Research on the Impact of High-End Ev Sales Business Model on Brand Competitiveness

Zhen Li,Minjiao Cheng,Fengbo Liang

doi:10.3390/su132414045

Zhen Li, Minjiao Cheng + Show 1 more

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https://doi.org/10.3390/su132414045

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Journal: Sustainability	Publication Date: Dec 20, 2021
Citations: 4	License type: CC BY 4.0

Affiliation: Tsinghua University, Beijing Jiaotong University

Abstract

Electric vehicles have many advantages compared with traditional fuel vehicles, whereas the immaturity of technologies and high manufacturing cost make it difficult for EV brands to be promoted in traditional business models. Thus, auto-mobile companies started to establish high-end sales business model to promote the brand. This paper studies the influential mechanism of high-end EV sales business model on brand competitiveness and the mediation effect between high-end EV sales business model and brand competitiveness. A total of 624 consumers’ survey data were collected and the structural equation model (SEM) was analyzed to test the hypotheses by using a scale made up of indicators referring to high-end EV sales business model, brand competitiveness and customer perceived value. This paper contributes to the sustainable innovation literature by exploring the psychological perception of customer perceived value in strengthening brand competitiveness. The results show that both the value proposition and value creation of high-end EV sales business model have significant positive impacts on brand competitiveness. Moreover, customer perceived value fully mediates the relationships between the value proposition of high-end EV sales business model and brand competitiveness and between the value creation and brand competitiveness. Customer perceived value cannot mediate the relationship between the value capture of high-end EV sales business model and brand competitiveness. Our insights contribute to the business model research area from a customer-centric perspective.

Highlights

The International Energy Agency (IEA) issued in a report that fuel transportation, including cars, light trucks and heavy-duty trucks, are the largest source of greenhouse gases emission [1]
Our key findings are as follows: First, we find that the value proposition, value creation and value capture of high-end EV sales business model increase customer perceived values
Customer perceived value mediates the relationship between value proposition of high-end EV sales business model and brand competitiveness and between value creation of high-end EV sales business model and brand competitiveness, whereas it does not mediate the relationship between value capture of high-end EV sales business model and brand competitiveness

Summary

Introduction

The International Energy Agency (IEA) issued in a report that fuel transportation, including cars, light trucks and heavy-duty trucks, are the largest source of greenhouse gases emission [1]. To address the carbon dioxide emission problem, electric vehicles have been widely recognized as an essential part for sustainable development and a clean energy future [2]. Subsidies for electric vehicles apparently boost the development of the industry, on the other hand, subsidies breed corruption and fraudulent behaviors in some places; recently, lots of governments have halted subsidies for the electric vehicle industry [3]. The dwindling subsidies are taking the shine off the electric vehicles industry and force the industry to accelerate the process of marketization [4]. Electric vehicles present a great opportunity for China to compete with foreign automotive brands on the same development level; the successful commercialization of electric vehicles is of strategic significance for China’s automotive brands to overtake foreign competitors [6]

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