Analysis of Chinese Consumers' Purchase Intention: The Impact of Firms Innovation on the Purchase of New Energy Vehicles in China

Abstract

Innovation has become a driving force in socio-economic development. In particular, China's innovation in new energy vehicles is regarded as a major priority for solving the problems of traditional automobiles as energy shortages and environmental pollution intensify. Against this background, new energy vehicles will be an important opportunity for changing the direction of Chinese automobile industry while reducing greenhouse gas emissions. As a result of the launch of various new energy vehicle products, the issue of product homogenization has emerged, and automobile firms are increasingly concerned about how to increase their market share in the new energy vehicle consumption market. Accordingly, this research attempts to analyze the effect of innovative behaviors of new energy car companies on consumers' purchasing intention. Here, innovative behaviors refers to product, marketing, service, technological, and cultural innovations within a firm. A multifaceted approach was taken to determine how a company's innovation behavior will affect consumers' purchasing propensity. This study verified the structural equation model constructed using SPSS 21.0 and AMOS 26.0 software using survey data. Our results indicate that innovation behavior has a positive (+) effect on consumers' perceived value . In other words, the product innovation, marketing innovation, service innovation, technological innovation, and cultural innovation of new energy vehicle firms are more likely to be perceived by consumers as a result of reflecting their needs, which can be seen to have a positive effect on product purchase. Second, the relationship between the innovation behavior of new energy vehicle firms and consumers' perceived risks showed contradictory results. Marketing innovation and technological innovation had a negative (-) effect on product purchase by increasing the tendency of consumers to choose despite uncertainties about the innovation of new energy vehicles. Product innovation, service innovation and cultural innovation did not show a clear relationship with consumers' perceived risk . This means that even if firms are chosen by consumers through technology and marketing for new energy vehicle products, the possibility of market rejection exists if product quality and infrastructure are not guaranteed. Third, consumers' perceived value had a positive (+) effect on consumer purchase intention, but consumers' perceived risk is found to have a negative (-) effect on consumers' perceived value and on the purchase intention of the consumer. In other words, even if their needs are reflected, consumers are less likely to purchase products if they perceive that new energy vehicle products have uncertainties. Fourth, the consumers' innovative characteristics did not have a clear moderating effect in the process from perceived value to the purchase intention of the consumer, but it has a clear positive moderating effect in the process from perceived risk to the purchase intention of the consumer which indicates that consumers' preference for new energy vehicle products helps to stimulate consumption. Based on these conclusions, this paper presents several proposals for government, firms, and consumers to manage innovative behaviors of new energy vehicle firms. First, the government should build an infrastructure for the spread of new energy vehicles. In other words, if there is no charging station in an area where there is a lot of demand for electric vehicles, consumers' purchase intention will decrease. Therefore, the government needs to focus on industry-university R&D investment cooperation focusing on expanding the technological competitiveness of new energy vehicles rather than subsidizing electric vehicle charging stations that cause an imbalance in supply and demand. Second, firms should increase the efficiency of batteries through innovation in core technologies to expand the supply of new energy vehicles. In particular, it is necessary to transform the marketing paradigm for new energy vehicles by using the strength of China's local supply chain, and through this, it is necessary to strengthen innovation in terms of products, service, and culture. Finally, consumers should be encouraged to embrace the new energy vehicle industry, by understanding that purchase can be the growth engine of this industry. Ultimately, this increase in potential consumers will serve as a catalyst for innovation in China's new energy vehicle firms. This study establishes a theoretical model of innovative behaviors of new energy vehicle firms, consumer perceived value and risk, consumers' innovative characteristics, and purchase intention. However, this research has limitations in tracing the correlation between the innovative behaviors of new energy vehicle firms and how they may change consumers' preferences through the structural equation model. Follow-up studies will aim to resolve these limitations.