Marketing mix of used electric vehicles in Ontario, Canada.
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Date
2021-06-25
Authors
Cibrian Bravo, Samuel Karim
Journal Title
Journal ISSN
Volume Title
Publisher
University of Waterloo
Abstract
Abstract
Electric vehicles (EV) support sustainable transportation by contributing to the reduction of emissions from the light-duty (passenger) vehicles sector. Electric vehicle adoption is a topic that has been studied through a variety of disciplinary lenses, from economics to engineering; however, while many studies have looked at consumer motivations for purchasing new EVs, virtually no research has been conducted on the used (i.e., second-hand) EV market. As the EV market continues to grow, so too will the supply of used EVs. The used EV market is an interesting point of entry for those purchasing an EV for the first time or who cannot afford the cost of a new EV. Previous research has identified the point of sale of new EVs as an influential factor in the adoption of this technology, and it is through this lens that the used EV market was investigated. This study uses an exploratory approach to address the sale of used EVs in Ontario, Canada by analyzing online advertisements of used EVs by dealerships and private sellers. The aim was to determine how/if attributes that are specific to EVs (e.g., battery life and charging range) are being communicated to potential buyers. A secondary aim was to compare this information to advertisements for internal combustion vehicle (ICV) versions of the same cars. To achieve this, data from 480 advertisements for used vehicles on the autoTrader website were collected, including a sample of 408 EVs and 72 ICVs. The dataset included a mixture of quantitative (e.g., model, year, price, mileage, etc.) and qualitative information (e.g., seller’s own description of the vehicle attributes). The results from the study showed very little difference between advertisements for EVs and ICVs in terms of what information is being communicated: For all ads, the first few attributes communicated tended to be related to the condition of the vehicle and/or specific non-EV attributes such as ‘heated seats’. Findings also revealed that private sellers were more likely to talk about EV-specific features of the vehicle than were dealers. Overall, this research can conclude that the market of used EVs in Ontario lacks focus on attributes that differentiate EVs from ICVs, thus potentially making adoption by first-time potential purchasers more challenging, since the barriers often found by EV adopters are not being addressed. This presents an interesting opportunity for online platforms, such as autoTrader, to further customize advertising templates to include EV-related attributes. The results of the study also signal that further research should take place from the point of view of potential customers as well as previous purchasers in the used EV market to determine what information would be useful when shopping for vehicles online.
Description
Keywords
electric vehicles, marketing mix, sustainable transportation, green marketing
LC Keywords
Electric vehicles, Sustainable transportation, Green marketing