What Affects Malaysian Consumers’ Intention to Purchase Hybrid Car?

Teoh Chai Wen,Nor Azila Mohd Noor

doi:10.5539/ass.v11n26p52

Abstract

The purpose of this study are to examine the factors influence consumers’ intention to purchase hybrid car and explore the roles of consumption values in automotive context. The study has been examining the direct relationship between functional value, symbolic value, emotional value, novelty value and conditional value with consumers’ intention to purchase hybrid car. Each variable was measured using 7-point Likert-scale. Questionnaire was used to collect data from individual consumers in Klang Valley. The data were then analysed by using structural equation modeling (SEM) with SmartPLS 2.0. Five hypotheses were developed for this study and were tested using two stages analyses. The first stage involves measurement model while the second stage is structural model. The results of the study indicated that functional value is the most significant predictor of consumers’ intention to purchase hybrid car. In contrast, symbolic value, emotional value and novelty value failed to show significant relationship with consumers’ intention to purchase hybrid car. Finally, implications of the findings as well as limitations and future research are discussed.

Highlights

As the environment continues to exasperate, developed countries found that environmental degradation is affecting their economy and policies whereas developing countries like Malaysia have just started the green movement as a step to preserve the environment (Ramayah, Lee, & Osman, 2010)
Malaysia ranked as number three in ASEAN market, the existence of green product could create an opportunity for Malaysia to become the market leader of automotive industry in ASEAN market
The influences of functional value is stronger than conditional value and emotional value

Summary

Introduction

As the environment continues to exasperate, developed countries found that environmental degradation is affecting their economy and policies whereas developing countries like Malaysia have just started the green movement as a step to preserve the environment (Ramayah, Lee, & Osman, 2010). Developing countries like Malaysia start aware of the importance of green products which can reduce the environmental threat as well as boost the economy by creating opportunities for businesses. Environmental degradation caused by industry, consumers purchasing behavior and consumption pattern are the reasons the environment continues to exasperate. Apart from that, automotive industry is one of the most important industry in Malaysia This is because automotive industry could contribute to the country’s economy in terms of direct and indirect taxes, technology advancement, and the opportunity to grow other business, as well as human resources development by providing training and job opportunities. Malaysia ranked as number three in ASEAN market, the existence of green product could create an opportunity for Malaysia to become the market leader of automotive industry in ASEAN market

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Conclusion