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WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME
THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE?
Doctoral Dissertation Research
Submitted to the
Faculty of Argosy University, Phoenix Campus
College of Business
In Partial Fulfillment of
the Requirements for the Degree of
Doctor of Business
by
Ricardo Artis
October, 2014
ii
WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME
THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE?
Copyright ©2014
Ricardo Artis
All rights reserved
iii
WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME
THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE?
Doctoral Dissertation Research
Submitted to the
Faculty of Argosy University, Phoenix Campus
in Partial Fulfillment of
the Requirements for the Degree of
Doctor of Business
By
Ricardo Artis
Argosy University
October, 2014
Dissertation Committee Approval:
________________________________________________________________________
Robert Goldwasser, D.B.A, Chair Date
________________________________________________________________________
Zhimin Huang, Ph.D., Member Date
________________________________________________________________________
Kate Noone, Ed.D., Program Chair Date
Zhimin Huang October 30, 2014
October 30, 2014Dr. Bob D. Goldwasser
Digitally signed by Dr. Bob D. Goldwasser
DN: cn=Dr. Bob D. Goldwasser, o=Argosy University, ou=College of
Business, email=rgoldwasser@argosy.edu, c=US
Date: 2014.10.31 15:47:53 -04'00'
Kate Noone, EdD
Digitally signed by Kate Noone, EdD
DN: cn=Kate Noone, EdD, o=Argosy University, ou=College of
Business, email=knoone@argosy.edu, c=US
Date: 2014.11.06 11:18:12 -05'00'
iv
WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME
THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE?
Abstract of Doctoral Dissertation Research
Submitted to the
Faculty of Argosy University, Phoenix Campus
College of Business
In Partial Fulfillment of
the Requirements for the Degree of
Doctor of Business
by
Ricardo Artis
Argosy University
October 2014
Robert Goldwasser, D.B.A.
Zhimin Huang, Ph.D.
Department: College of Business
v
ABSTRACT
This dissertation examined the validity of the benefits of electric and plug-in hybrid
electric vehicles (PHEV). With recent focus in society on saving money on fuel,
reflected through extremely high gasoline prices, as well as environmental concerns,
automobile manufacturers are heavily investing resources to control the problem of
energy consumption. Alternative vehicles, such as electric and PHEV’s, are widely
solicited as the apparent answer to the global environmental concerns in which they are
considered as a substitute to conventional vehicles that will lower the amount of toxic
emissions in the atmosphere and fuel consumption. The environmental responsible claim
is explored through various spectrums of interest, such as the consumer, electric vehicle
associations, automakers, government, and environmentalists. In determining the various
parameters that affect the impact of the electric and plug-in hybrid electric vehicle
integration, a thorough analysis of cost consumption, analysis of energy, process of
production, and disposal in a comparative study of various alternative fuel vehicles was
done. This dissertation concluded with a valid explanation of how electric and plug-in
hybrid electric vehicles fit into the picture as the primary source of transportation in the
future.
vi
ACKNOWLEDGEMENTS
I would like to thank Dr. Bob Goldwasser, my dissertation advisor, for his
outstanding and continued insight and support while completing this dissertation. His
perspective, knowledge, and guidance brought many challenges and a new light to the
subject at hand during the process of completing my research. I am very privileged to
have worked with him towards the goal of becoming a Doctor of Business
Administration. I am grateful to have been given the opportunities in which I have
learned more than I could have imagined during my research of electric and plug-in
hybrid electric vehicles based on their electricity efficiency and consumption.
I would also like to thank the various electric automobile associations for their
support in understanding the behavior and operation of electric and plug-in hybrid
electric vehicles in which they have provided the statistical data that was used in the
research. Your participation enabled the completion of the dissertation, which I am truly
grateful.
A special thanks goes out to my family, who have definitely supported me
throughout my long and arduous endeavors. Their support during the last few months
made the completion of this dissertation possible.
Finally, I am honored to have the opportunity to study under the guidance of the
entire Argosy University board and staff. They are all true leaders in the industry and I
am very blessed to have had the chance to work closely with them in which I shared their
vision of becoming a doctorate recipient.
vii
TABLE OF CONTENTS
Page
TABLE OF TABLES.......................................................................................................VIII
TABLE OF FIGURES .......................................................................................................IX
CHAPTER ONE: INTRODUCTION ................................................................................. 1
Problem Background .......................................................................................................... 3
Purpose of Study..................................................................................................... 6
Research Question and Hypotheses........................................................................ 8
Limitations............................................................................................................ 10
Delimitations......................................................................................................... 10
Definitions......................................................................................................................... 11
Importance of Study.......................................................................................................... 11
CHAPTER TWO: REVIEW OF THE LITERATURE..................................................... 14
Consumer Purchasing Behavior............................................................................ 15
Energy Performance.............................................................................................. 31
Vehicle Cost Comparison ..................................................................................... 33
Battery Specifications and Charging .................................................................... 35
Vehicle Battery charging options.......................................................................... 37
Battery Charging Time ......................................................................................... 40
Vehicle Environmental Impact ............................................................................. 44
Emissions.............................................................................................................. 46
Greenhouse Gases................................................................................................. 48
CHAPTER THREE: METHODOLOGY.......................................................................... 50
Selection of Subjects............................................................................................. 53
Instrumentation ..................................................................................................... 54
Assumptions.......................................................................................................... 56
Procedures............................................................................................................. 57
Data Processing and Analysis............................................................................... 63
CHAPTER FOUR: FINDINGS ........................................................................................ 65
CHAPTER FIVE: SUMMARY........................................................................................ 92
Implications for Practice....................................................................................... 97
Conclusion ...................................................................................................................... 109
Recommendations for Future Research.......................................................................... 110
REFERENCES ............................................................................................................... 114
viii
TABLE OF TABLES
Table Page
1. Consumer Behavior and Factors.................................................................................. 23
2. Demographics .............................................................................................................. 66
3. Fuel Efficient Vehicle Consideration........................................................................... 70
4. Importance of Saving Money on Fuel ......................................................................... 72
5. Vehicle Type Purchasing Consideration...................................................................... 74
6. Next Vehicle Purchase................................................................................................. 76
7. Overall Vehicle Experience ......................................................................................... 78
8. Purchasing Consideration with Information Provided................................................. 80
9. Vehicle Environmental Affects Familiarity................................................................. 82
10. Current Environmental Awareness............................................................................ 83
11. Current Environmental Concerns .............................................................................. 84
12. Environmentally Friendly Individuals ....................................................................... 85
13. Suggest Vehicle to Commuters.................................................................................. 86
ix
TABLE OF FIGURES
Figure Page
1. Survey Results of Consumer Behavior........................................................................ 26
2. Consumer Favorability for Hybrid Vehicles by Demographics .................................. 27
3. Consumer Favorability for Electric Cars by Demographics........................................ 28
4. Cost for Each Type of Charging Method..................................................................... 41
5. Estimated Charging Time for Electric and Plug-in Hybrid Electric Vehicles............. 43
6. Vehicle Comparison..................................................................................................... 48
7. Assumed Progress on the Charging Infrastructure ...................................................... 57
8. Purchasing Amount Consideration of Electric or Plug-in Hybrid Electric Vehicle.... 68
9. Percentage for MPG..................................................................................................... 71
10. Percentage of Importance .......................................................................................... 73
11. Percentage Vehicle Type ........................................................................................... 75
12. Respondent's Whose Next Purchase Will be an Electric or Plug-in Hybrid Electric
Vehicle.............................................................................................................................. 77
13. Participant's Impressions............................................................................................ 79
14. Participant's Impressions Regarding Purchase .......................................................... 81
15. Do you Consider Yourself Environmentally Friendly?............................................. 85
16. Percentage on Suggestion .......................................................................................... 87
17. Participant's Overall Satisfaction............................................................................... 89
18. Implication Practice and Research Procedures........................................................ 102
1
CHAPTER ONE: INTRODUCTION
Since the establishment of the transportation industry in the early 1900s,
petroleum and various natural gas resources have been the most popular for the
mainstream driver. While there has been many other advanced energy technologies that
have been developed, gasoline powered vehicles have maintained dominance as an
affordable and convenient source of transportation. Hybrid vehicles only recently broke
into the auto industry with the overwhelming widespread popularity of the Toyota Prius.
The American Economic Association (2012) argues that the Toyota Prius is considered
extremely economical in which it averages 44 miles per gallon (MPG) on the highway.
The plug in version of the vehicle provides around 12 miles on electricity, which
increases mileage to an equivalent of 67 mpg. The plug-in electric vehicles use clean,
affordable, domestic electricity for the majority of all its energy in which an all-electric
vehicle (EV) stores all of its energy in its batteries. On the other hand, plug-in hybrids
(PHEV) contain a gas that extends an engines range and stores some of its energy in
which they cannot plug into cleaner, cheaper domestic power. EV’s are considered very
reliable vehicles that do not need tune-ups, oil changes, and contain 10 times fewer
moving parts compared to gasoline-powered vehicles. In fact, in comparison to gasoline-
powered vehicles, EV’s do not contain a tailpipe, clutch, fuel tank, spark plugs, muffler,
starter, or converter.
According to the Department of Energy (2013), the plug-in electric vehicle has
doubled the amount of vehicles sold as it did in 2012. There has been a continuous
transition phase towards cleaner fleets of vehicles that are powered by electricity,
hydrogen, petroleum, and advanced bio-fuel products that are causing a significant
2
reduction in gas emissions and petroleum consumption. The rate of the electric vehicle
market appears to be growing faster than ever, in comparison to the earlier phases of
hybrid vehicles. The market is currently on the path to reaching a turning point in the
next decade. In fact, there are currently 30 types of plug-in vehicles that are sold in the
United States from various major automakers such as Nissan, General Motors, and
Mitsubishi. Several other major automobile corporations have announced production on
new plug-in vehicles.
The drawback of electric and hybrid plug in vehicles is cost; they are very
expensive depending on the type of the battery, which means that the better the battery,
the more you will pay. According to the World Alliance for Decentralized Energy
(2014), the disadvantages of plug-in hybrid electric vehicles include weight, additional
cost, and size of a larger battery pack. Battery performance and cost of electric and plug-
in hybrid electric vehicles are considered essential factors for their development.
Although electric and plug-in hybrid electric vehicles are quiet, silence has been a
disadvantage because consumers like to hear the roaring sound of a vehicles engine. The
main concern of electric and plug-in hybrid electric vehicles is the range anxiety which is
the anxiety people feel when they are nowhere near a charging station. Nicel Metal
Hydride (NiMH) batteries are currently the typical batteries used by electric and plug-in
hybrid electric vehicles and are considered to have reached their maximum potential.
Automakers are moving towards building lithium-ion batteries because they offer more
energy density than NiMH batteries. According to Nemry, Leduc, and Munoz (2009),
lithium-ion batteries are seen as the best option to meet the storage requirements of
electric and plug-in vehicles. This research sought to identify the positive and negative
3
impacts of costs, battery performance, and consumer’s perceptions of electric and plug-in
hybrid electric vehicles on their quest to being the dominant source of transportation in
the future.
Problem Background
In today’s society there has been an overwhelming emphasis and focus on saving
money on fuel, energy initiatives, and environmental concerns as well as an interest and
emphasis on decreasing global warming. Increases in fuel prices concern many people
who drive gasoline-fueled vehicles. Thorpe (2014) believed that the price of gasoline is
likely to remain high enough to keep reminding consumers to drive more fuel-efficient
vehicles. Many organizations are heavily investing into resources that reduce the
problem of energy consumption and environmental hazards. Hybrid vehicles such as the
plug-in hybrid electric vehicles are typically perceived as a gasoline-powered vehicle
substitute and a resolution to the current environmental concerns, which results in the
reduction of fuel usage and toxic emissions. The Union of Concerned Scientists (2012)
reported that transportation produces approximately 30% of all of the United States
global warming emissions, cleaner running vehicles will definitely help. Global warming
causes climate disruptions, which put the water and food supply at risk, jeopardizes
national security, endangers health, melts glaciers, and causes severe drought and floods.
The United States Environmental Protection Agency (EPA, 2010) conducted
research on gasoline-powered vehicles which concluded that toxic emissions cause global
warming health issues. The four main categories of global warming health effects on
humans are infectious diseases, extreme weather events, increased air pollution, and
intense heat waves. The human health is threatened from the spread of tropical disease
4
and rising of sea levels can also cause damage to national and regional economies. The
American Council for an Energy-Efficient Economy (2014) argues that carbon dioxide
from fossil fuels like motor vehicle gasoline and diesel causes harm to the environment
due to global warming. Gasoline toxic emission vapors are also poisonous to plants,
humans, and animals. Electric and plug-in hybrid electric vehicles consume less fuel
which not only protects the environment, it reduces economic costs and the liability of oil
dependence. Barett (2014) agreed that although gasoline-powered vehicles electronic
fuel injections and catalytic converters have helped reduce toxic emissions, they continue
to produce a significant amount of air pollution in which the effects range from health
problems to global warming.
According to the Shepardson (2014), the electric vehicle (EV) and plug-in electric
vehicle (PHEV) have reached a point in their life cycle where they are becoming a
dominant product of technology. The current transportation sector of the industry was
feeling intense pressure to develop an energy consumption alternative. Gasoline prices
continue to increase, highways are congested, and the economy’s atmosphere continues
to be environmentally polluted. According to the U.S. Department of Energy (DOE,
2013), using electric and plug-in hybrid electric vehicles instead of gasoline-powered
vehicles reduces reliance on imported petroleum and increases energy security. The
increased use of petroleum-based fossil fuels in the transportation field is damaging the
environment and air quality in many areas around the United States and the world.
Rodriguez and Comtois (2014) argued that the continued burning of fossil fuels releases
carbon dioxide and contributes to the global warming of the earth, which could lead to an
extreme worldwide degradation and environmental change.
5
Unlike gasoline-powered, petroleum-based fueled vehicles, the PHEV’s are
charged from the utility grid in which most of the transportation energy used comes from
electricity. The utility grid provides infrastructure in which renewable energy sources
can be used to provide or supply electricity for transportation, residential, and industrial
energy to sectors of the economy. According to Pothedar (2008), nuclear energy played
an important role in helping the reduction of our dependency of fossil fuels, which also
minimizes the amount of carbon dioxide released into the atmosphere. Some of the
stumbling blocks to the wide spread acceptance of PHEV’s are the battery’s density, cost,
life time, unfamiliarity, and style. According to Parker (2014), EV’s and PHEV’s require
a large battery and generator which make it more costly in comparison to gasoline-
powered vehicles. The cost of the battery has become one of the main focuses of auto
manufacturers, utilities, and researchers however, the technology of the battery has
illustrated promising development.
According to Dowds, Hines, Farmer, and Watts (2010), vehicle purchase price
and operating costs were considered as the major determinants of electric and plug-in
hybrid electric vehicle purchasing decisions and, due primarily to expensive battery costs,
plug-in hybrid electric vehicles are projected to be significantly more expensive than
electric vehicles. Battery aging has continued to be one of the main issues that electric
vehicle manufacturers attempt to avoid for fear of turning potential buyers away.
Although many people can accept the runtime of their cell phones or laptops and adjust to
lower expectations accordingly, a consumer spending a lot of money for an electric or a
plug-in hybrid electric vehicle may not be so forgiving. The motorists of these vehicles
are familiar with ample power and minimal degradation in the performance as the
6
vehicles age and when driving in cold temperatures in which the battery cannot match the
performance. The owners of electric and plug-in hybrid electric vehicles will have to
tolerate a decrease in distance driving during winter, as well as accepting a small
reduction in the delivered mileage with every advancing year due to the aging of the
battery. Sabatini (2013) argued that the biggest drawback of electric and plug-in hybrid
electric vehicles is the price due to the battery being very expensive.
Consumer’s perception on the cost of electric and plug-in hybrid electric vehicles
is negative because they are very expensive. GFK (2013) conducted a survey on
consumer’s perceptions and concluded that the participant’s top two negative responses
of electric and plug-in hybrid electric vehicles were that they are very expensive and have
a limited battery life span. The purpose of studying the biggest battle between electric
and plug-in hybrid electric vehicles will not just be determined by technology, but by the
consumer’s preference and beliefs. The intent of the research was to decrease the
ingrained habits and alter the perceptions of consumers. Possel (2011) argued that if
consumers do not break out of their habits and perceptions, the lack of popularity and
adoption of electric and plug-in vehicles could hold them back.
Purpose of Study
The purpose of the mixed method research obtained in-depth survey information
on EV’s and PHEV’s consumer’s opinions in order to identify key issues and
developments. According to Creswell (2010), the components of the mixed method
research developed the framework for analyzing key developments, issues, and priorities.
The purpose of the quantitative portion of the mixed method was to collect quantifiable
data from the participants. The unbiased data obtained from the participants was
7
analyzed using statistics by asking specific and narrow questions.
The purpose of the qualitative portion of the mixed method was to provide an
understanding of plug-in hybrid electric vehicle consumer buyer perceptions, attitudes,
needs, and to examine all of the factors that affect their purchasing decisions.
Furthermore, reviewing numerous qualitative scholarly literature on EV’s and PHEV’s
provided an in-depth analysis on consumer buying habits and what impacts them. For
example, consumers typically prefer to maximize their utility such as availability, style,
cost, and many other vehicle attributes when making a purchasing decision. Edmunds
(2013) argued that consumer’s relish the thrill of driving right by the gas station, electric
and plug-in hybrid electric vehicles minimizes or takes gasoline out of the equation all
together.
The purpose of the study on electric and plug-in hybrid electric vehicles was to
provide clarity on the consumer’s perceptions and beliefs on the battery life span, charge,
and cost of the vehicles. According to Austin (2013), the biggest barrier of electric
vehicle batteries, which decreases consumer purchases, is the lack of public
understanding of their technology and capability. Consumer’s perceptions of the
rechargeable batteries on electric vehicles have a long history that comes with the
connotation that clouds consumer’s perceptions, potentially slowing their sales. For
example, a study by Consumer Reports (2012) identified that participants had strong
misgivings and misunderstandings about electric cars, such as their range, charging,
safety, post-crash fire and protection, risk of electric shock, and accident avoidance.
Increasing the knowledge of consumers further validates the dominance of electric and
plug-in hybrid electric vehicles, surpassing gasoline-powered vehicles as the primary
8
source of transportation in the future.
The purpose of this study was to examine the current state of knowledge and
opinion about electric and plug-in hybrid electric vehicles among U.S. consumers. It
asked questions about their potential likes and dislikes of electric and plug-in hybrid
electric vehicles by examining the conditions under which consumers would purchase
these types of vehicles. Rather than just focusing on the first adopter of these vehicles,
the research focused on the potential pool of purchasers in the first several years after the
introduction of electric and plug-in hybrid electric vehicles. The research focused on a
determination of which factors would initiate the sales of electric and plug-in hybrid
electric vehicles and which factors represented barriers to the future success of these
vehicles.
Research Question and Hypotheses
Is there a positive correlation between consumer familiarity, knowledge, and exposure
related to sales?
The research question was, “What are the factors that have the most impact on the
success of electric and plug-in hybrid electric vehicles?”
H1o: There is not a positive correlation between consumer familiarity of electric and
plug-in hybrid electric vehicles in relation to sales increase.
H1A: There is a positive correlation between consumer familiarity of electric and plug-in
hybrid electric vehicles in relation to sales increase.
H20: There is not a positive correlation between factors and the success of electric and
plug-in hybrid electric vehicles.
9
H2A: There is a positive correlation between factors and the success of electric and plug-
in hybrid electric vehicles.
H30: There is not a positive correlation between variety of various types of electric and
plug-in hybrid electric vehicles in relation to more consumer options.
H2: Increase exposure of electric and plug-in hybrid electric vehicles, will positively
impact the amount of sales.
H3: Variety of various electric and plug-in hybrid electric vehicles is related to more
consumer buying options.
H3A: There is a positive correlation between variety of various electric and plug-in hybrid
electric vehicles in relation to more consumer options.
H40: There is not a positive correlation between the knowledge of electric and plug-in
hybrid electric vehicles and more consumer purchasing options.
H4: Improvement on electric and plug-in hybrid electric vehicle battery range and
charging time are related to consumers purchasing.
H4A: There is a positive correlation between the knowledge of electric and plug-in hybrid
electric vehicles and more consumer purchasing options.
H50: There is not a positive correlation between improvements on electric and plug-in
hybrid electric vehicles battery range and charging time in relation to consumer
purchasing.
H5A: There is a positive correlation between improvements on electric and plug-in hybrid
electric vehicles battery range and charging time in relation to consumer purchasing.
H60: There is not a positive correlation between exposure of electric and plug-in hybrid
electric vehicles and sales.
10
H6A: There is a positive correlation between exposure of electric and plug-in hybrid
electric vehicles and sales.
Limitations
The study was limited to the state of Texas. The limitations and restrictions of
this study were mainly in the areas of time constraints and availability which the
researcher had no control over. There was a limitation due to the interviewee’s
availability because the automobile dealership owners had to be contacted via e-mail or
telephone. This placed some constraints on some of the information this researcher
needed to gather from vehicle owner contacts. The limited number and types of electric
and plug-in hybrid electric vehicle models placed a constraint on the research. The
geographic limitation of the state of Texas also caused a constraint on obtaining
information on the study of various types of vehicles in other states and countries.
Delimitations
Delimitations such as the limitation of plug-in hybrid electric vehicle dealership
owners who were interviewed to consumers, salesmen, and manufacturer employees who
use or are involved with electric and plug-in hybrid electric vehicles were used. The
study primarily focused on the perspectives of current electric and plug-in hybrid electric
vehicle users. The study was geographically limited as it focused only on the
involvement of Austin, Texas with the electric and plug-in hybrid electric vehicle
industry.
The research of electric and plug-in hybrid electric vehicles did not attempt to
favor and promote them, but aimed to make an unbiased assessment of the alternative
vehicles. The analysis was conducted in our current settings, with the initial investment
11
made several months prior. It is also assumed that the purchase of electric and plug-in
hybrid electric vehicles would not have a significant impact in the market.
Definitions
Economic: The operating costs, purchase price, and maintenance cost of electric and
plug-in hybrid electric vehicles.
Electric vehicle: Referred as an electric drive vehicle, which uses one or more electric
motors or traction, motors for propulsion. There are three types of electric vehicles:
directly powered from external power stations, stored electricity from an external power
source, and by an on-board electrical generator.
Environmental: The amount of greenhouse gas (GHG’s) emissions created by
alternative fuels.
Plug-in Vehicles: Defined as a regular plug-in hybrid electric vehicle that contains a
large high-capacity battery bank that can be recharged by plugging it directly into normal
household current or a plug-in station.
Social: Defined as the cost/benefit to all electric and plug-in hybrid electric vehicle
consumers and employees for choosing between alternative fuel and gasoline.
Importance of Study
In today’s society, there has been a continuous transition phase towards cleaner
fleets of vehicles that are powered by electricity, hydrogen, petroleum, and advance bio-
fuel products that are causing a significant reduction in gas emissions and petroleum
consumption. According to the Department of Energy (DOE, 2013), the plug-in electric
vehicle has doubled the amount of vehicles sold since 2012. The batteries in the electric
and plug-in vehicles are rechargeable and store electricity that powers the electric motors.
12
They must be recharged by plugging them into a power source or an external charger to
drive the vehicle without gas between approximately 10 to 100 miles. According to
Drive Clean (2013), electric vehicles can travel 70 to 100 miles (some go even further) on
a full charge and plug-in hybrid electric vehicles can travel on battery power alone
between 15 and 35 miles, and more than 300 miles in gasoline-electric hybrid mode.
When the charge runs out, the gasoline and electric motors work together. According to
the Department of Energy (DOE, 2013), the battery charging time ranges between 15
minutes to 20 hours, depending on the type of battery. EV’s motor contains zero tailpipe
exhaust missions.
The growth rate of the electric vehicle market appears to be growing faster than
ever in comparison to the earlier phases of hybrid vehicles. The market is currently on
the path of reaching a turning point in the next decade. In fact, there are currently 30
types of plug-in vehicles that are sold in the United States from various major automakers
such as Nissan, General Motors, and Mitsubishi. Several other new and major
automobile corporations have announced production of plug-in vehicles.
The importance of understanding the relationship of how the cost, style, and
consumer lack of environmental knowledge influences purchasing towards EV and
PHEV dominance in the transportation sector. The significance of EV’s and PHEV’s
increase the improvement of road transportation fuel economy and decreases greenhouse
gas emissions into the environment. Accordingly, the United Intergovernmental Panel
(IPCC, 2008) agrees that a 50-80% reduction in global emissions is required by the year
2050, which avoids severe climate change by limiting the temperature increase from 2 to
24 degrees. This study provided a much-needed insight on the importance of having
13
electric and plug-in hybrid electric vehicles as a dominant means of transportation. The
information obtained from the study should aid consumer’s decision to purchase electric
and plug-in hybrid electric vehicles as their primary source of transportation, thus
supporting the reduction of greenhouse gas emissions.
World Watch Institute (2014) indicated that a transition that limits the times
vehicles need charging is under way across Europe and the United States. EV’s and
PHEV’s, when coupled with low greenhouse (GHG) electricity generation, can decrease
petroleum and CO2 significantly, especially in the future. The keys to success will be to
start now on achieving interim targets and substantial shares in the long-term. The
roadmap helps to establish a vision for technology development and set feasible targets
and steps that automakers must make to get our society there. The roadmap also outlines
the role for many different stakeholders and government policies on how they can work
together to reach these common objectives to support the process. According to the
International Energy Agency (2013), there will be about eight million EV’s and PHEV’s
in the year 2020 in which a 50kw power drive train would be 400 GW, which is 20 times
as large as the current solar market size.
14
CHAPTER TWO: REVIEW OF THE LITERATURE
As the price of gasoline increases, global warming and many individuals relying
on foreign oil is becoming a continuous concern. The auto industry is making efforts to
reduce the environmental and economic impact on U.S. citizens. Automakers continue to
look at new technologies to increase miles per gallon (MPG) in order to mitigate
greenhouse gas emissions and the pollution in the atmosphere. Laws have been passed to
improve the corporate fuel economy standard, which increases the average gas mileage
for vehicles. Vehicles with the combination of a combustion engine and a battery
improve the efficiency of energy and have gradually made their way into the market with
increased in popularity. According to Lamberson (2008), hybrid electric vehicles
accounted for approximately two percent of the United States light duty vehicle sales in
2007 and the government provides tax credits that average $2,000 to encourage the
purchase of these vehicles. Although electric and plug-in hybrid electric vehicles were
currently not available for commercial use, passenger vehicles allow greater efficiency by
allocating a large amount of drive to the battery.
Maynard (2008) believed that the plug-in hybrid electric vehicles would heavily
penetrate the market in 2010 because automakers and battery designers promised to
introduce plug-in hybrid electric vehicles that can drive over 100 mpg. Electric vehicles
have to be charged by electricity through electrical outlets, which could provide a major
impact in establishing the energy independency and planning as a nation. The batteries
of electric and plug-in hybrid electric vehicles are charged through dedicated household
electrical outlets, personal charging stations, and publicly used high traffic areas such as
major corporations and shopping malls. For example, in a study that the California Car
15
Initiative (2009) conducted, when people used charging stations during off peak
(nighttime) hours, the demand for electricity was typically lower than during the middle
of the day. Also, in comparison to the equivalent of gasoline miles per gallon, electricity
is cheaper which is considered as a win-win situation for plug-in owners and their
utilities. Nuclear plants that contain electric generators have to sustain a certain amount
of electricity to operate efficiently which means that the unused electricity could also be
used to charge electric and plug-in hybrid electric vehicles. The scholarly literature
review identified various consumers’ perspectives on environmental costs and battery
issues while also providing information on the developments of electric and plug-in
hybrid electric vehicles.
Consumer Purchasing Behavior
In today’s society, there is a clutter of different services and products available
and understanding how consumers are motivated to purchase is essential for effective
marketing strategies. Consumer behavior takes into consideration the many reasons why
situational, personal, psychological, and social consumers shop for products, buy and use
them, and then dispose of them. Leahy (2008) argued that motivation works as a
complex process in consumers.
There are five basic types of motivation for consumers; achievement, thirst for
variety, individuality, order, and needs. Achievement is an important consumer
motivator because it is related to positive reinforcement in which the outcome is seen to
bring positive consequences rather than problem solving motivational factors. Thirst
motivation is a motivation for companies and consumer’s in which they often attempt to
answer these needs by offering new products. Individuality influences many consumers’
16
purchasing decisions, which are shaped into memories, perceptions, and experiences.
Order is a motivational factor that causes most consumers to crave order in their lives.
Lastly, the most important motivator is needs in which consumers must satisfy in order to
live. Basic needs such as food, warmth, and shelter must be satisfied before an individual
can proceed to more complex needs like friendship, love, and belonging.
The Wall Street Journal (2013) argues that increasing fuel economy in all
vehicles, along with gas prices topping out at $3.75 a gallon, is a signal that the demand
for electric and plug-in hybrid electric vehicles will continue to remain weak in which
they reported less than one percent of all light vehicle sales in July 2012. Regardless of
the behind the price cuts, this is very good news for consumers who are looking to buy an
electric or hybrid plug-in vehicle breaking the bank. This type of motivation is
considered economic motivation; economic motivation is when the price is the main
factor. For some consumers, organizational factors are significant such as management
buying items for their small business or office or a mother purchasing items for her
family. Consumers can also be motivated by conditioning which is when a consumer
buys the same food or cleaning products. There are unconscious and deep hidden drives
that motivate consumers to buy particular products or brands.
Cherry (2013) reported that many leading theorist’s implement the Freudian
theories of the unconscious to market products and thus launched the public relations
industry. The Freudian theory is structured into two main parts: the conscious and
unconscious mind. Conscious mind includes all things that consumers are aware of or
can easily bring into awareness. Unconscious mind includes all things outside of the
consumer’s awareness such as wishes, hopes, desires, memories, and urges that lie
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outside of awareness but yet continue to influence behavior. Consumers are also
motivated by what other consumers think of them, such as social factors.
There are six different types of behaviors that consumers use during the buying
process which are: (a) the need recognition, (b) search for information, (c) product
evaluation, (d) product choice and purchase, (e) post purchase use and evaluation, and (f)
the disposal of the product (Consumer Behavior, 2014). Marketers tend to try to
stimulate consumers into realizing that they have a need for their product. For example,
how many times have you heard about a movie but had no interest to see it until you saw
the previews for the movie? Once previewed, many consumers are persuaded and feel
like they have to watch it.
The search for the information stage of the buying process is considered as a great
position for a company or business that owns a certain brand to be in something firm that
limits the consumers search and forces them to purchase the brand again. Internet
shopping sites like Amazon.com have become a common source of information on
products. Consumers typically prefer independent sources when they are searching for a
product. On the other hand, they also consult non-neutral sources of information such as
brochures, salespeople, company Web sites, and advertisements.
Product evaluation develops an evaluation criterion, which contains certain
characteristics that are important to consumers, and some of the characteristics may be
more important than others. Marketing professionals like to convince consumers that the
evaluative criteria they are considering reflects the strengths of their products. The
product choice and purchase section of the buying process is where the consumers decide
on the product that he or she wants to purchase. On the other hand, in addition to the
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product, the consumer would probably be making other decisions within this stage which
include where and how to purchase the product and on what terms. Also, other decisions
such as those related to big ticket items are typically decided at this point.
The post purchase use and evaluation stage of the buying process is when the
consumer decides whether the product they have purchased is everything that it was
hyped up to be. Hopefully it is, because if not, consumers would likely suffer from post
purchase dissonance or, in other words, buyer’s remorse. Consumers want to feel good
about the product they have purchased but they may begin to wonder whether they should
have waited to get the price at a better price when they are unhappy about a product.
Many companies conduct various methods in order to prevent buyer’s remorse. For
example, smaller companies typically will offer a money back guarantee, while large
companies might offer a warranty or a customer service troubleshooting line for
consumer’s to call. The last stage of a consumer buyer’s process is the disposal of the
product.
Consumer purchasing behaviors motivation consists of direction and drive.
Direction is the choice that a consumer makes between alternatives and drive is the
strength of the motivation. De Mooij (2010) agreed with Freud’s theory on consumer
and behavior that motivation is defined as the internal state of an organism that drives to
behave in a certain way. Drives are motivational forces, which cause an individual to be
active and to strive for certain goals. These are the main types of motivations:
1. Physiological explanations that emphasize the importance of needs and/or
internal drives are called primary drives due to their importance to the organism.
For example, thirst and hunger are considered as the primary drives for drink or
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food. Internal physiological drives are based on the process of homeostasis in
which we maintain a reasonable constant internal physical/biological
environment.
2. Behavioral explanations rely on acquired drives through learning are called
external drives. This type of behavior is an action in which people learn to adapt
to external circumstances such as avoiding extreme temperatures.
3. Psychological explanations tend to apply to complex human behaviors. The
psychological sense of motivation is generally conceived in terms of process, or
series of processes, which somehow steer, sustain, start, and finally stop a goal-
directed sequence of behavior.
Covert and overt motivating factors are the basis of a consumer’s inner
motivation. Many theorists believe that tension reduction is the basis of motivation.
Theorists also argue that consumers live in a constant state of tension in which they
purchase items to reduce tension. Consumer’s tensions are typically heightened by their
wants and needs and advertisers try to promote these tensions to consumers to encourage
them to buy more. Internal and external factors motivate consumers to purchase.
Experiences, needs, desires, and personality traits with societal expectations or pressures
increase or decrease a consumer’s motivation.
Xaxx (2014) argues that advertisers and marketers spend a lot of money and time
determining the motivations of consumer’s who purchase the products of their clients.
On the other hand, while individual motivations for choices of consumption vary widely,
there are themes within a community that are useful for making marketing and
manufacturing decisions. Consumers typically like to know that a product they are
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purchasing is not going to harm them. This is definitely true in the areas of cars and
food. For example, many food shoppers are typically willing to pay a substantial amount
of money for food that meets their criteria.
Electric and plug-in hybrid electric vehicle automakers must understand which
marketing techniques can best influence a consumers’ purchasing behavior from one
stage to the next within the purchase funnel: through education, advertising, word of
mouth, public relations, and social media. Baron (2010) felt that at first glance,
familiarity towards electric and plug-in hybrid electric vehicles does not appear directly
correlated to a consumer’s willingness to purchase. However, the knowledge of the
consumer familiarity can arm electric and plug-in hybrid electric vehicle automakers with
the foundation for a successful marketing strategy and campaign.
Choices that some consumers make are conscious while others are not, even
though the latter may be just as influential. Some marketers attempt to take advantage of
the consumer’s unconscious choice by introducing subtly manipulative elements into the
purchasing experience. When marketers present products in a seductive lighting and
idealized surroundings it causes consumers to be drawn to them. This type of
unconsciousness drive is typically balanced by a conscious awareness of the products
price, quality, and personal need or lack of need. The relative unconscious and conscious
elements are varied among consumers.
According to Kroeber-Riel and Weinberg (2009), consumer motivation is a goal-
oriented driving process that consists of two major components, emotional and cognitive.
The emotional component represents a trigger for action, while the cognitive components
represents the way and direction of the action to be realized. Typically instincts are
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separate as part of a motivation construct which influence and trigger the behavior.
Instincts are inborn in that they are not learned behavior patterns that are activated by
basic, inner stimuli and automatically result in various actions. Axsen and Kurani (2013)
conducted a survey in which he identified five theoretical perspectives on consumer
purchasing influence when purchasing an electric or plug-in hybrid electric vehicle.
They are conformity, contagion, dissemination, reflexivity, and translation. The survey
context was a plug-in hybrid electric vehicle demonstration project where 275
interpersonal interactions were elicited from interviews with 40 individuals in 11
different social networks in northern California. These perspectives are applied to a
consumers buying perceptions of an electric or plug-in hybrid electric vehicle. The
results indicated that electric and plug-in hybrid electric vehicles can be perceived as
having symbolic, functional, private, and societal attributes.
Brookins (2014) indicated that consumers typically make purchasing decisions
when they purchase small items, and when they purchase larger items consumers begin
searching for services or products based on their needs. Before making a purchase,
consumers evaluate their options by taking note of everything from pricing to a brand’s
reputation. There are four types of consumer purchasing behavior that impact product
purchase decisions. These are impulse purchases, routine purchases, limited decision
making, and extensive decision making. For example, an impulse purchase is when a
consumer stands by the checkout counter and purchases a product in which he or she
adds to their groceries. This type of consumer purchasing behavior is when a consumer
makes a purchase with little to no plan or thought involved typically with low-priced
items.
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Routine purchases are items that consumers purchase daily, once a week, or
monthly. This type of purchase can range from a morning cup of coffee from a local
convenience store, to eggs, milk, and cheese from the supermarket. This type of
consumer purchase behavior spends very little time deciding whether or not to buy these
items and does not typically read reviews or consult with other individuals for their
opinions before they make their routine purchases. Consumers who use limited decision-
making before engaging in a purchase may seek advice or a suggestion from a friend.
The consumer may research a few options, but the search is not thorough or time
consuming as with a higher price. Extensive decision-making consumers purchase high
priced electronics, such as computers, cameras, televisions, or major purchases such as a
car or home. This type of consumer behavior spends a substantial amount of time
researching a high number of various potential options before they make a purchase.
They also consult with friends, family, sales professionals, colleagues, and read review
and ratings online and in consumer magazines. Extensive decision-making processes last
longer, because the consumer is investing a substantial amount of money.
Consumer Reports (2012) conducted a survey on the influence that affects the
choices of consumers purchasing their next vehicle. When it came to shopping for a new
vehicle, 37% of respondents in the survey said that fuel economy has the highest impact
on their consumer purchasing behaviors, while trumping other important factors such as
safety, quality, and value. Two-thirds said that they expect their next vehicle purchase to
get better fuel economy than the one they are driving now, while 60% of the respondents
were willing to sacrifice the size of capacity of the vehicle to purchase it and about half
of them would give up some of their comfort or amenities. Here were the results of the
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survey conducted on consumer behaviors and factors.
Table 1
1. Consumer Behavior and Factors
Consumer Behavior and Factors
Car-purchase factor Most important (%)
Fuel economy 37
Quality 17
Safety 16
Value 14
Performance 6
Design/style 6
Technology/innovation 3
Motivations Percentage
Lower fuel costs 90
Latest fuel-saving technology 69
Environmentally friendly/green 62
Dependence on foreign oil 56
Change in lifestyle/family 34
Note. Source from http://www.consumerreports.org/cro/2012/05/high-gas-prices-
motivate-drivers-to-change-direction/index.htm
Sales and survey trends identified that many consumers are downsizing their
purchases in order to achieve their goals. More than half of the consumers said that they
were considering a more efficient vehicle and were emphasizing motivation factors other
than fuel costs which included the desire to be more environmentally friendly because of
concerns about the nation’s dependence on foreign oil which is about 56%. A third of the
consumers stated that a change in their regular lifestyle or family motivates their plans,
which cause a shift in car priorities. The survey also identified that more men (65%)
versus women (58%) felt that they are motivated by the environmental benefit of better
fuel economy.
Vaughan (2013) felt that there are stories abound of upset electric and plug-in
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hybrid electric vehicle owners getting upset because of their battery charging problems.
The trouble only seems to exist for vehicle owners of plug-in hybrid electric vehicles and
all electric vehicles. The more common hybrids get their energy from the regenerative
braking, an internal combustion engine and are not designed to be plugged in.
Consumers are pulling into charging stations only to discover that they cannot use them.
The reason why they are unable to use them is because their vehicle is incompatible with
the particular charging unit or the charging is occupied by another vehicle for hours or an
individual in gasoline powered vehicle has parked in the space, blocking the charging
unit.
Many consumers were worried about their limited range and the potential repair
costs of the electric and plug-in hybrid electric vehicles. According to Consumer Reports
(2013), consumers should be more concerned about where to plug the vehicles. In a
study conducted by the Consumers Union and the Union of Concerned Scientists in
which they surveyed 914 adult car owners in a nationally representative telephone
sample, 42% of the drivers fit within all the parameters necessary to use a plug-in hybrid
electric vehicle for their transportation needs with very few changes in their behavior.
Sixty percent of the respondents met the criteria to make a pure battery-electric vehicle
practical for them.
The results of the survey indicated that almost twice as many respondents would
consider buying a plug-in hybrid electric vehicle that can run on electricity and gasoline
as would consider buying a pure electric vehicle. On the other hand, 40% of the
respondents said that they would consider purchasing a plug-in hybrid electric vehicle if
they had to pay more for it, even if a fuel savings would offset the additional cost within
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five years. As you can see, the range limitations and up-front costs weigh heavily on the
purchasing behavior and minds of the consumer.
Cobb (2014) conducted a nationwide survey that explored the U.S. consumer
attitude towards the 10 clean energy technology and identified a wide disconnect between
consumer that are in “favor” of alternative energy transportation and the percent that
purchase them. Based on a statistically significant cross sampling of 1,084 consumers,
the online questions in which the respondents believe well about electric and plug-in
hybrid electric vehicles. The result of the survey found variances between respondent’s
attitudes held by African Americans, Asians, age groups, Caucasians, Hispanics,
education levels, income, and gender. Below are the illustrated survey results of
consumer behavior.
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Figure 1. Survey Results of Consumer Behavior.
The illustrations indicated that there are a lot of people at least cognizant of
electric vehicles, plug-in hybrid electric vehicles, and regular hybrid vehicles and believe
that they are a good idea, but are on the fence about the vehicles for one reason or
another. For example, some people like exotic vehicles but still would not buy them.
Although the illustrations show that people like these types of vehicles, just because they
are not buying does not mean they hate them.
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Figure 2. Consumer Favorability for Hybrid Vehicles by Demographics.
Consumers over 65 years of age and those with high school degrees or less expressed a
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lower degree of favorability compared to those with higher income and education.
Figure 3. Consumer Favorability for Electric Cars by Demographics.
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The electric vehicle results showed similar results and were favorable among
Hispanics, which trended higher, and Asians, while the minority sampling of the survey
trended the highest. African and Caucasians followed with regard to favorability.
Many consumers relish the thrill or opportunity of driving by a gas station without
having to fuel up their vehicles. Many people believe that it may be considered the
greatest luxury of all. While the thought of enhanced fuel economy has become one of
the various issues to consumers these days, electric and plug-in hybrid electric vehicles
have had a strong appeal to consumers. Electric vehicles take gasoline out of the
equation all together, while plug-in hybrid electric vehicles offer an extended electric
range before the use of gasoline. According to Edmunds (2013), the average smart
shopper based their vehicle purchases on practical range, affordability, as well as pure
fuel efficiency.
Axsen and Kurani (2013) conducted a survey that collected data from 508
households on new vehicle buyers in San Diego, California. The survey indicated that a
majority selected and designed some form of plug-in hybrid electric vehicle for their next
new vehicle, smaller numbers designed a conventional vehicle or hybrid electric vehicle,
and only a few percent of individuals designed an electric vehicle. Participants who
designed an electric vehicle were more concerned about the vehicles limited range,
charging availability, and expensive vehicle purchase price. On the other hand, the
positive interest of the consumers towards electric and plug-in hybrid electric vehicles
was associated with the vehicles image of intelligence, support, and responsibility of the
environment in the United States. Axsen and Kurani (2013) argued that the vehicle
distribution designs suggest that smaller, cheaper battery plug-in hybrid electric vehicles
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may achieve more of a short-term market success than the larger battery of electric
vehicles.
Consumer Report (2013) conducted a study on electric and plug-in hybrid electric
vehicles that consumers purchased, which indicated that almost twice as many consumers
would consider buying an electric and or plug-in hybrid electric vehicle. On the other
hand, only 40% stated that they would consider purchasing the vehicles if they had to pay
more for them, even if fuel savings within a five-year time frame would offset the
additional cost. Up-front cost and the limitation of range weighed heavily in the mind
and perception of consumers. Literature identified that electric and plug-in hybrid
electric vehicles were appropriate for about two of five drivers, in which a 65% majority
agree that these types of vehicles are an essential part of the transportation future for the
possibility of global warming pollution and the dependency of oil.
The literature identified that electric and plug-in hybrid electric vehicle consumer
purchasers who are considered well informed and knowledgeable tend to stay with these
types of vehicles. Accenture (2011) argued that consumer purchasing factors other than
price, increased vehicle availability, and consumer knowledge is a significant purchase
decision factor. Consumer’s purchasing preference typically reflect today’s perceptions
rather than experience. Drivers who were identified as short-range drivers may get
behind the wheel of electric and plug-in hybrid electric vehicles and their preferences
may change. The literature also specified that the makers of these vehicles anticipate that
the market segment could possibly be larger for full electric vehicles in the foreseeable
future.
Accenture (2011) provided information within their literature in which they
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conducted a study on consumer’s attitudes, perceptions, preferences, habits, and behavior
about purchasing electric and plug-in hybrid electric vehicles. The survey identified that
ingrained consumer behavior possibly hindered the grid management. Manufacturers
needed to identify consumer segments and target them appropriately to gain their
attention. The survey identified different segments containing varying levels of priorities
and concerns. For example, the younger generations have a greater need to know the fuel
source that powers the vehicles, but they would be less discouraged by fossil fuel or
nuclear power energy than older drivers. Younger generation purchasers would be
concerned about the availability of parking and the price of charging the vehicles.
Baptista, Rolim, and Silva (2012) conducted a survey of respondents that were
characterized as a population more likely to accept alternative vehicles such as electric
and plug-in hybrid electric vehicles. The participants were individuals between 25 and
50 years of age that contained a high level of education. The participants were provided
a brief explanation of the vehicles in which the respondents preferred plug-in hybrid
electric vehicle to electric vehicles due to their fuel flexibility and extended autonomy.
Electric and plug-in hybrid electric vehicles potential buyers were also sensitive to fuel
prices, electricity prices, and if running the technology is two to three times cheaper, then
the probability of purchasing these technologies would more than double.
Energy Performance
The energy performance of the electric and plug-in hybrid electric vehicles uses
rechargeable battery packs that can reduce the dependency of petroleum because the
energy is domestically powered. According to Dye (2013), gasoline-powered vehicles
operate at approximately 30% efficiency, and approximately 70% of the energy is eaten
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by sound, heat, and pollutants that destroy the atmosphere. According to numerous
studies, a vehicle that contains an electric motor can operate at approximately 90%
efficiency because of the instant power through torque. A gasoline-powered engine
converts energy into motion by igniting fuel that moves pistons and turns a crankshaft
that spins the flywheel, which in-turn causes the wheels to turn. A gasoline-powered
engine at low speed does not have enough torque, forward movement produced by
rotational motion to move the vehicle. As a result, all of the energy has to be assisted by
the transmission, which allows the engine to rotate faster to get the vehicle to move, and
slow down when the speed increases.
Vehicles that contain electric motors do not need help in complex, heavy, and
expensive transmissions found in today’s gasoline powered vehicles. Electric and plug-in
hybrid electric vehicles have as much torque, which is called “instant torque,” from a
standstill as it does at high speeds. General Motor’s president Waters (2013) argues that
a toy-like sedan could be faster than a high-performance vehicle, at least from 0 to 30
mph. He also believes that this is part of the reason some of the fastest vehicles on the
earth are now powered by electric motors, not gasoline-powered engines that have been
around for more than a century. Electric and plug-in hybrid electric vehicles that have
been used in experiments have achieved sustained speeds of more than 180 mph and have
also established world record speeds above 300 mph. The high performance of electric
and plug-in hybrid electric vehicles has been overshadowed by two major factors such as
range because of the fear of running out of juice halfway home from work, and the
batteries because they are heavy, expensive, and require frequent charging.
In the future, some problems will vanish through the natural course of new
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technology, like faster charging, additional remote charging locations, and more energy
within the battery. The current state of the art of the battery is the lithium-ion in which
researchers all around the world are working to improve its performance. Waters (2013)
argues that in order for electric and plug-in hybrid electric vehicles to take over the
industry, the energy performance clearly has to change in which new reports of
breakthroughs are announced on almost a daily rate. For example, the University of
Colorado recently claimed that they are now able to double the range of electric and plug-
in hybrid electric vehicles powered by a lithium-ion battery. They have found ways to
replace the liquid electrolyte with a solid-state system that contains a higher energy
density that moves through a solid ceramic electrolyte which allows them to have the
funding to move the new technology of electric and plug-in hybrid electric vehicles
closer to becoming a commercial reality.
Vehicle Cost Comparison
In comparison to gasoline-powered vehicle, electric and plug-in hybrid electric
vehicles contain additional maintenance and manufacturing costs. The cost mainly
results from the transmission, engine, controller, charger, and battery manufacturing cost
as well as various upgrades. Additional manufacturing costs are in the $4,000 range in
comparison to gasoline powered vehicles. Electric vehicles cost approximately 10% to
30% higher than conventional hybrid plug-in vehicles. The battery of electric and hybrid
vehicles account for the higher contribution of the vehicles in which the price increases
with the amount of storage capacity of the battery. The literature expresses that the cost
of electric and plug-in hybrid electric vehicles are expected to decline in the near future.
According to DOE (DOE, 2013), electric and plug-in hybrid electric vehicles are likely to
34
decrease in the future as production volume increases. Hybrid plug-in vehicles are
powered by electrical energy stored in the battery and by conventional fuels. They use
the electricity from the grid to charge the battery, which costs less and reduces the
amount of consumption compared to gasoline-powered vehicles.
Electric and hybrid plug-in vehicle fuel costs are typically lower than gasoline-
powered vehicles but the purchase price of the vehicles are significantly higher. The
purchase costs or initial costs of the electric and plug-in hybrid electric vehicles are offset
by various fuel cost savings such as state incentives and federal tax credits. Through the
year 2014 or until the manufacturers meet their vehicle sales threshold, consumers who
purchase electric and plug-in hybrid electric vehicles will receive a $2,500 to $7,500 tax
credit based on battery capacity and the size of the vehicle. Threvenot (2013) reported
that if you are looking to purchase an electric or hybrid plug-in vehicle in California, state
and federal incentives can decrease the price of vehicles as much as $10,000, which is
nearly a third of the sticker price of various models. Electric and plug-in hybrid electric
vehicles contain many advantages over gasoline-powered vehicles because they:
1. Save money on fuel and vehicle maintenance,
2. Are approximately three times more energy efficient,
3. May be recharged at home overnight,
4. Produce no tailpipe emissions,
5. Are quiet to drive,
6. Require less maintenance than gasoline powered vehicles, and
7. Are available in a variety of hybrid configurations.
Zhu and Nigro (2012) conducted a study on the potential market comparison of
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electric and plug-in hybrid electric vehicles. The vehicles used in the study were the
Chevrolet Volt, Nissan Leafs, and Toyota Prius. Although Nissan achieved a worldwide
sales goal in 2011, Chevrolet missed its target by 10,000 for the year and the Toyota
Prius only sold 300 units in its first year in the market. The Toyota Motor Corporation
(2010) argued that when sales expanded from Japan to the European and North American
markets in the year of 2000, the sales of Prius vehicles increased from 19,000 to 29,500
the following year.
Pike Research (2011) forecasted that electric and plug-in hybrid electric vehicles
would grow at a 43% annual rate between the year 2011 and 2017, which will result in
approximately 303,000 vehicles sold and one million vehicles on the road by 2017.
Within the range of Pike Research forecast, the Obama Administration had a highly
publicized goal of having one million hybrid plug-in vehicles on the road by the end of
2015. There were several studies conducted in this literature by various researchers,
which indicated that consumers have very high expectations regarding the price, driving
range, and charging time of electric and plug-in hybrid electric vehicles. For example,
Accenture (2011) conducted a survey that found 57% of Americans would consider the
purchasing of electric and hybrid plug-in vehicle as their next vehicles and that the
vehicles currently on the market did not meet their expectations. The reviewed literature
on the electric and hybrid plug-in vehicle identified that there is definitely a need for
better costs, maintenance costs, and how vehicle knowledge and cost have an impact in
the future.
Battery Specifications and Charging
Nemry et al. (2009) wrote about consumers having range anxiety and their
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unfamiliarity may disappear as consumers become educated, but there still remains strong
initial obstacles to purchasing electric and plug-in hybrid electric vehicles. With their
limited range and exclusive use of electricity, battery electric vehicles were considered
more reliant on higher-power changing and more electric vehicle supply equipment build
out than hybrid plug-in vehicles. On the other hand, the growth of hybrid plug-in
vehicles will likely be influenced by the availability of some charging infrastructure
which will be near homes and workplaces.
The literature indicated that there are currently three charging levels and or speeds
on a commercial scale such as Level 1 Alternating Current (AC), Level 2 AC, and Level
3 Direct Current (DC) fast-charging. All electric vehicles, especially battery electric
vehicles, will require charging in Level 1 AC which will be widely compatible with all
hybrid plug-in vehicles. Level 2 AC will also be compatible with all hybrid plug-in
vehicles, which is important for electric vehicles to charge within an acceptable time
frame, but it will require an additional cost. DC is considered a fast charging method that
significantly decreases the time required to charge the electric vehicles. However, Level
1 and 2 AC are the two different standards used in the U.S. for fast charging.
Level 1 uses the United States standard 120 VAC, 20A or 15A branch circuits,
which is typically used in commercial and residential buildings. The maximum amount
of power that it delivers is 1.44kW, which allows the user to avoid overload by installing
a new-dedicated circuit. Level 2 is considered a single-phase 240VAC branch circuit
with a 40A dedicated circuit. The maximum charge power for this circuit would be 3.3k,
which is implemented for public and residential charging. Level 3 is considered a fast
charging 480 VAC three phase circuit methods through public facilities which enables a
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charging power of 60-150 kW. Currently, options are envisaged to make the charging
faster while also saving from charging the battery.
The electric and hybrid plug-in vehicle demand of power on the grid is a function
of the amperage and voltage of the connection to the grid. The issues and aspects of
battery charging were discussed within the literature based on these questions:
1. When and how will the vehicle owner most likely charge their batteries when
it is empty?
2. Which type of vehicle technical battery infrastructure and solution will be
available or implemented and its costs?
3. Which options can be used by electric utilities to remotely control the
aggregated charging curve of electric and plug-in hybrid electric vehicles that
will match the best with the electricity production mix?
Vehicle Battery charging options
Recharging the battery for electric and plug-in hybrid electric vehicles requires
several pieces of equipment such as the recharging protocols (conversation between a fast
charger and the vehicle), the physical recharging interface (plug and or the
inductive/conductive plate), and a suitable connection to the electric grid. Each country
has its own designed charger and charging infrastructure in accordance with their electric
infrastructure. Electric and plug-in hybrid electric vehicles are designed to use either
conductive or inductive chargers. According to Bradley and Frank (2009), inductive
chargers have an advantage of pre-existing infrastructure and intrinsic safety, while
conductive chargers contain advantages in efficiency (87% charging efficiency) in which
they are lighter in weight, more compact, and can allow a bidirectional flow of power.
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For example, the preferred charging connection in Europe is a direct conductive
connection instead of an inductive connection, which is used in Japan and the United
States.
The analytical review of literature identified various consumers’ perceptions of
the electric and hybrid plug-in vehicle batteries. The literature provides an in-depth
analysis on various consumer’s perceptions and concerns of electric and plug-in hybrid
electric vehicles batteries. The literature identifies a significant consumer concern called
“range anxiety” which is considered as the fear of being stranded due to a drained battery.
The uncertainty of the consumer with respect to the process of using Electric Vehicle
Supply Equipment (EVSE) to charge hybrid plug-in vehicles is a significant barrier.
Improving the performance and lowering the cost of batteries for electric and plug-in
hybrid electric vehicles requires improving every part of the battery, from the underlying
packaging to the chemistry. The Vehicle Technologies Office of the Department of
Energy (DOE) supports the work to increase researcher’s understanding of the
fundamental materials and chemistries with Lithium-ion and beyond Li-ion batteries in
order to reach the goal of making electric and plug-in hybrid electric vehicles as practical
and affordable as today’s gasoline powered vehicles by the year 2022. The Department
of Energy (DOE, 2014) argues that researchers must integrate the advances made in
exploratory battery materials and applied battery research into full battery systems for
vehicles in order to develop better lithium-ion (LI-on) batteries for both electric and plug-
in hybrid electric vehicles.
The Department of Energy (DOE, 2014) emphasized the importance of starting
with the fundamental components, which will allow researchers to improve the current
39
technologies and develop new advancements. The existing battery chemistries are
continuously being studied on how and why the current battery materials fail using
advanced characterization and modeling techniques. Based on the results, a proposal and
test various decision solutions are made to alleviate the battery problems. Here is a list of
areas that the literature feels will contribute to the advancement of the electric and plug-in
hybrid electric vehicles batteries:
1. Advance the cell chemistries that will promise higher energy density than current
ones.
2. Create Li-on anodes that are higher capacity than traditional carbon based
electrodes.
3. New electrolytes are more stable than current ones.
4. New cathode materials with high capacity and voltage.
5. Inactive components in the battery that can perform multiple roles.
The literature emphasizes that these improvements will help researchers develop
Li-ion batteries by addressing the issues that prevent these technologies from reaching
commercialization such as low power, safety issues, low efficiencies, and cycle life.
Improving the separator and electrolyte combinations will result in less dendrite growth
(short in the battery). Many auto makers are developing advanced material coatings, new
ceramic, polymer, and hybrid structures with high ionic conductivity, high structural
stability, and low electronic impedance. Mgrdichian (2013) continues to conduct studies
at the Brookhaven National Laboratory by using X-rays at the National Synchrotron
Light Source (NSLS) to study structure of the Li-ion battery cathode materials change
during the lithium extraction, which is considered very critical in understanding and
40
designing improved materials. As a result of the study, the research helps scientists better
understand how battery materials change as they combine or test them with various
materials.
Battery Charging Time
Parks, Denholm, and Markel (2009) stated that there are times which are
uncontrolled charging, delayed charging, off-peak charging, and continuous charging.
The uncontrolled charging is considered as when commuters charge their vehicles
exclusively at home in an uncontrolled manner in which the electric or hybrid plug-in
vehicle begins charging as soon as the individual plugs it in and stops when the battery is
fully charged. The delayed charging occurs when charging the vehicles at home in which
it attempts to optimize the utilization of low-cost, off-peak energy by delaying initiation
of household charging until 10 p.m. According to Parks et al. (2009) off-peak hours are
generally defined as the period in which there is a low electricity demand in which many
facilities offer time-of-use rates to residential customers.
Off-peak charging assumes all charging that occurs at home during overnight
hours which attempts to provide the most optimal, low-cost charging electricity by
assuming that the vehicle charging can be controlled directly or indirectly by the local
utility. Also during this charging time, it allows the utility to precisely match the vehicles
charging to periods of minimum demand, allowing the use of lowest-cost electricity,
while improving the overall system performance. Lastly, the continuous charging
assumes that charging occurs in an uncontrolled fashion whenever the vehicle is plugged
in. It also assumes that public charging stations are readily available wherever the
vehicle is parked. This means that the vehicle is continuously charged whenever the
41
vehicle is not in motion.
The electric vehicles use a battery to store the electric energy that powers the
motor. Plugging the outlet into an electrical power source charges the electric vehicle.
Electric vehicles are sometimes referred to as battery electric vehicles. An internal
combustion engine that can run on alternative or conventional fuel and an electric motor
that uses energy that is stored in the battery powers hybrid plug-in vehicles. Below is an
illustration of cost for each type of charging method.
Figure 4. Cost for Each Type of Charging Method.
Source from www.nrel.gov
The charging time for an electric or hybrid plug-in vehicle depends on how far an
individual intends to drive each day. For example, the Chevy Volt plug-in vehicle is
designed to travel approximately 40 miles (64.4 kilometers) per charge, which means that
if a consumer’s round trip consists of being less than 40 miles, the consumer would need
to charge the vehicle that evening. Lampton (2014) states that it is best to charge your
42
vehicle overnight because it will give the commuter the necessary time to recharge and
use the electric grid during off-peak hours when kilowatts are cheaper which will not
strain the local company’s electric capacity.
Lampton (2014) stated that the cost to charge an electric or hybrid plug-in vehicle
is estimated at $.80 for a Chevy Volt to get a full 40 mile charge using house current. On
the other hand, a Toyota Prius cost even less, about $.50 per 40 mile recharge. General
Motors (2014) believes that the Volt will run 100 nukes on $2.75 worth of electricity, or
about $.03 per mile. These estimates varied according to how much the consumer’s local
power company charges for electricity and whether a consumer charges their vehicle at
peak hours or off-peak hours. In comparison to gasoline, electric and hybrid plug-in
vehicle charge costs are considerably cheaper than gasoline would cost for an equivalent
distance. Below is an illustration of the estimated charging time for electric and plug-in
hybrid electric vehicles.
MAKE MODEL
120V
CORDSET
HOURS TO
FULLY
CHARGE
240V
TURBOCORD
HOURS TO
FULLY
CHARGE
240V EVSE-
RS
HOURS TO
FULLY
CHARGE
NISSAN LEAF 18 HRS 6.3 HRS 3.6 HRS
FORD FOCUS EV 18 HRS 6.2 HRS 3.6 HRS
FORD
FUSION
ENERGI
PLUG-IN
7 HRS 2.5 HRS 2.5 HRS
FORD
C-MAX
ENERGI
PLUG-IN
7 HRS 2.5 HRS 2.5 HRS
43
FIAT 500E 23 HRS 6.3 HRS 3.6 HRS
CHEVY VOLT 10 HRS 3.3 HRS 3.3 HRS
CHEVY SPARK 20 HRS 7 HRS 7 HRS
MITSUBISHIIMIEV 14 HRS 4.8 HRS 4.8 HRS
TOYOTA RAV-4 29 HRS 10.9 HRS 5.8 HRS
TOYOTA
PRIUS
PLUG-IN
3.1 HRS 2.1 HRS 2.1 HRS
HONDA
ACCORD
PLUGIN
4.7 HRS 1.7 HRS 1 HR
HONDA FIT EV 13.9 HRS 5.2 HRS 3 HRS
SMART EV 12.2 HRS 5.3 HRS 5.3
Figure 5. Estimated Charging Time for Electric and Plug-in Hybrid Electric Vehicles
Source from http://evsolutions.avinc.com/turbocord
The literature concluded that as hybrid electric vehicles become widespread, the
electric grid will have to be able to accommodate an additional load from hybrid electric
vehicle charging. Low hybrid plug-in vehicle penetration will result in a negligible
additional load in the near future. Electric and plug-in hybrid electric vehicles growth
will require electrical distribution upgrades and implementation of policies like time
variant rates and smart metering technologies. According to the Pew Center on Global
Climate Change (2011), available technologies could enable the vehicles to charge at the
lowest possible cost by using real-time electricity pricing. Current hybrid plug-in
vehicles can program their electric vehicles stations to charge which will allow customers
to take advantage of time-variant electricity rates which are typically offered during off-
peak hours.
44
The Environmental Protection Agency (EPA, 2011) wrote literature on the
concerns of air quality and global climate change in which electric and hybrid plug-in
vehicles provide a positive impact on the environment. The Environmental Protection
Agency (EPA) sets standards and policies such as the Clean Air Act. Failure to attain
these standards is considered as a threat to public health and when an area does not meet
these standards, it is designated a nonattainment area. The literature provided
information on how gasoline powered vehicle emissions is considered as a major source
for chemical precursors to the ozone. A large concentration of vehicles within a small
area can lead to a high concentration of pollutants. More people are exposed to these
pollutants because high population density amplifies the damages. Hybrid plug in
vehicles emit fewer pollutants than gasoline powered vehicles, including smog (ozone)
particulates and precursors. Although some emissions are transferred to areas around
power plants due to increased electricity demand, electric vehicles do not contain direct
tailpipe emissions.
Vehicle Environmental Impact
The literature provides additional information on environmental emission
concerns and which areas that emit large chemical precursors into the ozone. Ozone is
formed from volatile organic compounds (VOCs) and nitrogen oxides (NOx). The
literature identified that vehicle emissions in the Northeast are considered as the largest
source for the chemical precursors to ozone in which vehicles such as diesel vehicles are
a major source of particulate matter. Vehicles that emit these gases in a small area lead to
a higher concentration of pollutants. As population density amplifies it causes damages
because more people are exposed to the pollutants.
45
Zhu and Nigro (2012) argued that hybrid plug-in vehicles, which include
particulates and precursors (smog), directly emit fewer pollutants than gasoline-powered
vehicles while electric vehicles do not have direct tailpipe emissions. The literature
mainly focused on the benefits of having an electric or hybrid plug-in vehicle by
concluding that although the future of these types of vehicles is uncertain, the electric
generations mix in the United States is shifting away from coal given recent trends in
environmental regulations and natural gas prices. The overall benefit of having an
electric or a hybrid plug-in vehicle is that they are generally beneficial for air quality, as
long as coal plays a lesser role in the power mix, the air quality will increase over time.
NYSERDA and EPRI (2001) conducted a study on electric and hybrid vehicles that
found these types of vehicles decreased ozone levels with increased benefits for high-
density areas.
The literature written on the consumer’s perception of electric and plug-in hybrid
electric vehicles costs provided an in-depth analysis of the impact of vehicle cost to
consumers. Based on the literatures analysis, there were several conclusions that
emerged on the cost of electric and plug-in hybrid electric vehicles. The literature
suggests that increased vehicle cost could possibly delay the sales of electric and hybrid
plug-in vehicle sales in the market. The impact of the vehicles markup in the market is
pronounced in the absence of an economy-wide carbon constraint. The literature also
believed that electricity is considered as an important source of cost savings, especially
when a climate policy is imposed due to the fuel flexibility of our generation. The
Massachusetts Institute of Technology (2009) believed that electric and plug-in hybrid
electric vehicles contain configurations that allow a greater reliance on electricity relative
46
to refined fuels and are likely to be more attractive, especially if refined oil prices
continue to increase. On the other hand, the electricity advantage will basically depend
on whether or not the current battery cost and performance limitations can be overcome.
The literature explained their belief on the availability of related low carbon
technologies such as biofuels that could possibly reduce the attractiveness of electric and
plug-in hybrid electric vehicles, especially when a strict carbon constraint is composed.
A large-scale adoption of these vehicles increased the demand of electricity while
reducing oil consumption and potentially offsetting the economic welfare cost of
pursuing a climate policy. Lastly, the literature believes that if consumers realize the
maximum carbon reduction potential of grid-charged electric and plug-in hybrid electric
vehicles, they will require corresponding reductions in power sector emissions.
Otherwise, the conventional hybrid vehicles and efficient internal combustion engine-
based vehicles are likely to achieve lower per mile emissions than electric and plug-in
hybrid electric vehicles.
Emissions
Vehicle emissions can be divided into two categories: (1) air pollutants (e.g.,
smog, haze, and health problems) and (2) greenhouse gases (e.g., methane and carbon
dioxide). Both categories can be evaluated on a direct and well-to-wheel basis. Direct
emissions are emitted through the tailpipe, evaporation from the fuel system, and during
the process of fueling the vehicle. Electric vehicles produce zero direct emissions and
hybrid plug-in vehicles also produce zero tailpipe emission when they are in an all-
electric mode, but they produce evaporated emissions. According to the DOE (DOE,
2013), when using an internal combustion engine, hybrid plug-in vehicles also produce
47
tailpipe emission. However, their direct emissions are typically lower than those of
comparable gasoline-powered vehicles.
Well-to-wheel emissions include all emissions that are related to fuel distribution,
processing, use, and production. In comparison to gasoline, emissions are produced
while they extract petroleum from the earth, by refining it, distributing it to fuel to the
stations, and burning it within the vehicle. However, in the case of electricity, the
majority of the power plants produce emissions, and it is additional emissions that are
associated with the processing, extraction, and distribution of the primary energy source
used for electricity production.
Electric and plug-in hybrid electric vehicles produce lower emissions than
gasoline-powered vehicles. Their vehicle emissions are typically considered as tailpipe
emissions or well-to-wheel emission. Tailpipe emissions are produced through fuel
combustion during the vehicles operations and the well-to-wheel emissions take into
consideration the distribution, production of fuel, and the operation of the vehicle.
Electric vehicles tailpipe emissions vary by the type of vehicle, hybrid power system, and
the fuel in which electric vehicles generally achieve better fuel economy than comparable
gasoline-powered vehicles, they produce lower emissions. According to the DOE (2011),
because hybrid plug-in vehicles can operate in either an all-electric mode or with the
assistance of the internal combustion engine, their emissions vary based on the operating
mode of the vehicle. When the vehicle is charged by an electrical power source, the
emissions calculations must take the production of electricity into account. Below is a
vehicle comparison.
48
Emissions and Fuel Cost for a 100-Mile Trip
Vehicle
(Compact sedans)
Greenhouse Gas Emissions
(Pounds of CO2 equivalent)
Total Fuel Cost
(U.S. Dollars)
Conventional 87 lb CO2 $13.36
Hybrid Electric 57 lb CO2 $8.78
Plug-in Hybrid Electric 62 lb CO2 $7.10
All-Electric 54 lb CO2 $3.74
Figure 6. Vehicle Comparison
Source from http://www.afdc.energy.gov/vehicles/electric_emissions.php
Greenhouse Gases
The literature emphasizes that on an average, most categories of emissions are
typically lower for electricity that is generated from power plants than from engines that
run on diesel or gasoline. Emission from electricity depends solely on the efficiency on
the mix of fuel sources used and the power plant. According to EPA (2013), all-electric
vehicles do not produce tailpipe emissions, which means that they are considered zero-
emission vehicles. However, there are various emissions associated with most U.S.
electricity production. The literature concludes that if electricity is generated from
renewable resources, nonpolluting, electric and plug-in hybrid electric vehicles have the
potential to produce zero well-to-wheel emissions.
For the nation as a whole, total greenhouse gases are expected to be reduced by
27% from projected penetration result of electric and hybrid plug-in vehicle. The key
driver of this result is the overall improvement in efficiency and the electricity generation
path in comparison to the conversion chain from crude oil to gasoline to the combustion
process of the vehicle. The assumption of many researchers is that electric and plug-in
hybrid electric vehicles would be more efficient than conventional gasoline-powered
vehicles because of the regenerative braking capability that stores kinetic energy within
49
the battery deceleration. Also, the engine capability operates at near optimal conditions
more of the time than in gasoline-powered vehicles. The literature emphasizes that on a
regional basis, the greenhouse gas emission improvements can be as much as 40% which
is considered as a large penetration of natural-gas plants. The improvement in
greenhouse gases could possibly be slightly negative for all regions with an essentially all
coal generation.
50
CHAPTER THREE: METHODOLOGY
The methodology for this research was in the format of a survey using the
structured interview method. The structured interview method consisted of 25 questions
related to electric and plug-in hybrid electric vehicles in which the survey was conducted
online. The questions asked were conducted on a 5-point Likert scale and standardized in
which all of the respondents were asked the same questions in the same order. The target
sample size was at a zero cost, while the time consisted of a three-week period. The
survey utilized a random probability sample of electric and hybrid plug-in vehicle
consumers. The survey was conducted among 500 adults (250 men and 250 women), 18
years and older to assess their behavior, attitudes, and needs regarding electric and plug-
in hybrid electric vehicles. The margin of error is +/- 3.1 percentage points at a 95%
confidence level for questions asked of all respondents and +/- 3.2 percentage points for
question applied to vehicle owners.
Iterative proportional fitting was used to calibrate the completed interview to the
U.S. Census Bureau’s current population for gender, age, ethnicity, geographic region,
gender, and education. The precision of the survey was based on the information that
was obtained from electric and hybrid plug-in vehicle consumers through websites,
emails, and face-to-face interviews. The desire of the survey was to reduce the
possibility of a sampling error by obtaining as much of the participants sufficient
evidence on what he or she understands, likes, and dislikes from a consumer perspective.
The participants were reassured that the information obtained from the survey remained
confidential and will be used as a learning tool for the electric and hybrid plug-in vehicle
organizations.
51
The survey technique and setting for collecting data/interviewing was obtained
online and on-site. Although various methods were used in this research, the best-suited
method was via Internet (online) because social media and online technology has been
the highest means of communicating in today’s society. Randomly chosen new buyers,
current, and previously owned hybrid vehicle owners were provided questionnaires and
were surveyed via email and mail after purchasing and upon visiting a hybrid vehicle
dealership. The advanced preparation of the research was to obtain all of the new,
current and previously owned hybrid vehicle consumers email addresses from the hybrid
vehicle company. The researcher also had survey sheets on hand for consumers who
were shopping for a hybrid vehicle at the car lot.
The reason for using the structured method was to reduce errors and biases due to
questioning variations while increasing the accuracy and ease of 500 participants and
their answers. Implementing the structured method during the questioning is considered
as a typical method when conducting a survey in which it ensures and allows the
respondents to have an equal amount of opportunity to provide information that was
assessed accurately. Branch (2013) indicated that structured, behavioral interviews
which include a series of open-ended questions asked by the researcher are focused on his
or her related experience.
The mixed method approach was used in the research which included both
qualitative and quantitative questioning. Seemann (2012) reported that by combining the
qualitative and quantitative method in one’s market research, the electric and hybrid
plug-in vehicle began with qualitative research and subsequently integrated the
quantitative research. The mixed method qualitative approach analyzed the potential use
52
and effectiveness that identified various areas that required further research. The mixed
method qualitative portion of my dissertation provided an understanding of electric and
hybrid plug-in vehicle consumer behavior, attitudes, and perceptions by using closed
ended questioning during the survey. Understanding the complex social process by using
the qualitative method also captured the participant’s perspectives and essential aspects
of phenomenon. Compared to the quantitative method, the qualitative method of my
research provided a detailed analysis of the weaknesses and strengths of electric and
hybrid plug-in vehicle in a seamless way. The qualitative method included qualitative
data and metric information on electric and plug-in hybrid electric vehicles. The
technical specification of the qualitative method only described what the automobile
manufacturers would provide on a vehicles performance.
Implementing quantitative research mixed method research alone when obtaining
the information did not perceive the vehicles quality. If the vehicle contains performance
issues, frequent breakdowns, and cannot elaborate in-depth quality measures that could
identify the human interactions with electric and plug-in hybrid electric vehicles. The
mixed method research method employed rigorous quantitative research by assessing the
magnitude, frequency of constructs, and the rigorous qualitative research explored
provided the meaning and understanding of constructs. Mixed method research also
utilized multiple methods, intentionally integrating or combining methods to draw on the
strength of each and framed the investigation within the theoretical and philosophical
positions. Creswell (2008) argued that the mixed method research is a design for mixing,
analyzing, and collecting both the quantitative and qualitative research data into a single
series or study.
53
Selection of Subjects
The selection of subjects for this research was conducted by using a population of
new, previous, and current electric and hybrid plug-in vehicle owners. The sampling
frame was conducted randomly via email, internet, personal (face-to-face), and at the
automobile dealership which sold several types of electric and plug-in hybrid electric
vehicles. The automobile dealership was geographically located in the city of Austin,
Texas. They also possess over 100 models and other types of gasoline-powered vehicles.
The dealership had a great reputation of having dependable and excellent running
vehicles and they continuously evaluated on a regular basis.
In a world filled with social media, communicating with another individual has
drastically reverted to emailing. However, it was not appropriate to conduct the email or
personal research method because consumers typically shop online for vehicles in today’s
society. The email technique of surveying was used as a method of providing consumers
with the survey. Consumers also typically read emails because they do not want to deal
with the harassment of the car dealership salesman and they would rather not spend
money on fuel going from dealership to dealership. The inclusion of the criteria for the
selection of current, new, and previously owned electric and hybrid plug-in vehicle
owners was to identify if consumers were knowledgeable, felt comfortable purchasing, or
would purchase another electric or hybrid plug-in vehicle in the future.
The survey used in the research was grouped by each topic and the logic of the
survey was cohesive with the topic area of the research. The method also included being
aware of samples that may create biases or errors within the research. The research was
bridged between topic areas by asking questions that are closely related to one another in
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  • 1. WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE? Doctoral Dissertation Research Submitted to the Faculty of Argosy University, Phoenix Campus College of Business In Partial Fulfillment of the Requirements for the Degree of Doctor of Business by Ricardo Artis October, 2014
  • 2. ii WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE? Copyright ©2014 Ricardo Artis All rights reserved
  • 3. iii WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE? Doctoral Dissertation Research Submitted to the Faculty of Argosy University, Phoenix Campus in Partial Fulfillment of the Requirements for the Degree of Doctor of Business By Ricardo Artis Argosy University October, 2014 Dissertation Committee Approval: ________________________________________________________________________ Robert Goldwasser, D.B.A, Chair Date ________________________________________________________________________ Zhimin Huang, Ph.D., Member Date ________________________________________________________________________ Kate Noone, Ed.D., Program Chair Date Zhimin Huang October 30, 2014 October 30, 2014Dr. Bob D. Goldwasser Digitally signed by Dr. Bob D. Goldwasser DN: cn=Dr. Bob D. Goldwasser, o=Argosy University, ou=College of Business, email=rgoldwasser@argosy.edu, c=US Date: 2014.10.31 15:47:53 -04'00' Kate Noone, EdD Digitally signed by Kate Noone, EdD DN: cn=Kate Noone, EdD, o=Argosy University, ou=College of Business, email=knoone@argosy.edu, c=US Date: 2014.11.06 11:18:12 -05'00'
  • 4. iv WILL ELECTRIC AND PLUG-IN HYBRID ELECTRIC VEHICLES BECOME THE PRIMARY SOURCE OF TRANSPORTATION IN THE FUTURE? Abstract of Doctoral Dissertation Research Submitted to the Faculty of Argosy University, Phoenix Campus College of Business In Partial Fulfillment of the Requirements for the Degree of Doctor of Business by Ricardo Artis Argosy University October 2014 Robert Goldwasser, D.B.A. Zhimin Huang, Ph.D. Department: College of Business
  • 5. v ABSTRACT This dissertation examined the validity of the benefits of electric and plug-in hybrid electric vehicles (PHEV). With recent focus in society on saving money on fuel, reflected through extremely high gasoline prices, as well as environmental concerns, automobile manufacturers are heavily investing resources to control the problem of energy consumption. Alternative vehicles, such as electric and PHEV’s, are widely solicited as the apparent answer to the global environmental concerns in which they are considered as a substitute to conventional vehicles that will lower the amount of toxic emissions in the atmosphere and fuel consumption. The environmental responsible claim is explored through various spectrums of interest, such as the consumer, electric vehicle associations, automakers, government, and environmentalists. In determining the various parameters that affect the impact of the electric and plug-in hybrid electric vehicle integration, a thorough analysis of cost consumption, analysis of energy, process of production, and disposal in a comparative study of various alternative fuel vehicles was done. This dissertation concluded with a valid explanation of how electric and plug-in hybrid electric vehicles fit into the picture as the primary source of transportation in the future.
  • 6. vi ACKNOWLEDGEMENTS I would like to thank Dr. Bob Goldwasser, my dissertation advisor, for his outstanding and continued insight and support while completing this dissertation. His perspective, knowledge, and guidance brought many challenges and a new light to the subject at hand during the process of completing my research. I am very privileged to have worked with him towards the goal of becoming a Doctor of Business Administration. I am grateful to have been given the opportunities in which I have learned more than I could have imagined during my research of electric and plug-in hybrid electric vehicles based on their electricity efficiency and consumption. I would also like to thank the various electric automobile associations for their support in understanding the behavior and operation of electric and plug-in hybrid electric vehicles in which they have provided the statistical data that was used in the research. Your participation enabled the completion of the dissertation, which I am truly grateful. A special thanks goes out to my family, who have definitely supported me throughout my long and arduous endeavors. Their support during the last few months made the completion of this dissertation possible. Finally, I am honored to have the opportunity to study under the guidance of the entire Argosy University board and staff. They are all true leaders in the industry and I am very blessed to have had the chance to work closely with them in which I shared their vision of becoming a doctorate recipient.
  • 7. vii TABLE OF CONTENTS Page TABLE OF TABLES.......................................................................................................VIII TABLE OF FIGURES .......................................................................................................IX CHAPTER ONE: INTRODUCTION ................................................................................. 1 Problem Background .......................................................................................................... 3 Purpose of Study..................................................................................................... 6 Research Question and Hypotheses........................................................................ 8 Limitations............................................................................................................ 10 Delimitations......................................................................................................... 10 Definitions......................................................................................................................... 11 Importance of Study.......................................................................................................... 11 CHAPTER TWO: REVIEW OF THE LITERATURE..................................................... 14 Consumer Purchasing Behavior............................................................................ 15 Energy Performance.............................................................................................. 31 Vehicle Cost Comparison ..................................................................................... 33 Battery Specifications and Charging .................................................................... 35 Vehicle Battery charging options.......................................................................... 37 Battery Charging Time ......................................................................................... 40 Vehicle Environmental Impact ............................................................................. 44 Emissions.............................................................................................................. 46 Greenhouse Gases................................................................................................. 48 CHAPTER THREE: METHODOLOGY.......................................................................... 50 Selection of Subjects............................................................................................. 53 Instrumentation ..................................................................................................... 54 Assumptions.......................................................................................................... 56 Procedures............................................................................................................. 57 Data Processing and Analysis............................................................................... 63 CHAPTER FOUR: FINDINGS ........................................................................................ 65 CHAPTER FIVE: SUMMARY........................................................................................ 92 Implications for Practice....................................................................................... 97 Conclusion ...................................................................................................................... 109 Recommendations for Future Research.......................................................................... 110 REFERENCES ............................................................................................................... 114
  • 8. viii TABLE OF TABLES Table Page 1. Consumer Behavior and Factors.................................................................................. 23 2. Demographics .............................................................................................................. 66 3. Fuel Efficient Vehicle Consideration........................................................................... 70 4. Importance of Saving Money on Fuel ......................................................................... 72 5. Vehicle Type Purchasing Consideration...................................................................... 74 6. Next Vehicle Purchase................................................................................................. 76 7. Overall Vehicle Experience ......................................................................................... 78 8. Purchasing Consideration with Information Provided................................................. 80 9. Vehicle Environmental Affects Familiarity................................................................. 82 10. Current Environmental Awareness............................................................................ 83 11. Current Environmental Concerns .............................................................................. 84 12. Environmentally Friendly Individuals ....................................................................... 85 13. Suggest Vehicle to Commuters.................................................................................. 86
  • 9. ix TABLE OF FIGURES Figure Page 1. Survey Results of Consumer Behavior........................................................................ 26 2. Consumer Favorability for Hybrid Vehicles by Demographics .................................. 27 3. Consumer Favorability for Electric Cars by Demographics........................................ 28 4. Cost for Each Type of Charging Method..................................................................... 41 5. Estimated Charging Time for Electric and Plug-in Hybrid Electric Vehicles............. 43 6. Vehicle Comparison..................................................................................................... 48 7. Assumed Progress on the Charging Infrastructure ...................................................... 57 8. Purchasing Amount Consideration of Electric or Plug-in Hybrid Electric Vehicle.... 68 9. Percentage for MPG..................................................................................................... 71 10. Percentage of Importance .......................................................................................... 73 11. Percentage Vehicle Type ........................................................................................... 75 12. Respondent's Whose Next Purchase Will be an Electric or Plug-in Hybrid Electric Vehicle.............................................................................................................................. 77 13. Participant's Impressions............................................................................................ 79 14. Participant's Impressions Regarding Purchase .......................................................... 81 15. Do you Consider Yourself Environmentally Friendly?............................................. 85 16. Percentage on Suggestion .......................................................................................... 87 17. Participant's Overall Satisfaction............................................................................... 89 18. Implication Practice and Research Procedures........................................................ 102
  • 10. 1 CHAPTER ONE: INTRODUCTION Since the establishment of the transportation industry in the early 1900s, petroleum and various natural gas resources have been the most popular for the mainstream driver. While there has been many other advanced energy technologies that have been developed, gasoline powered vehicles have maintained dominance as an affordable and convenient source of transportation. Hybrid vehicles only recently broke into the auto industry with the overwhelming widespread popularity of the Toyota Prius. The American Economic Association (2012) argues that the Toyota Prius is considered extremely economical in which it averages 44 miles per gallon (MPG) on the highway. The plug in version of the vehicle provides around 12 miles on electricity, which increases mileage to an equivalent of 67 mpg. The plug-in electric vehicles use clean, affordable, domestic electricity for the majority of all its energy in which an all-electric vehicle (EV) stores all of its energy in its batteries. On the other hand, plug-in hybrids (PHEV) contain a gas that extends an engines range and stores some of its energy in which they cannot plug into cleaner, cheaper domestic power. EV’s are considered very reliable vehicles that do not need tune-ups, oil changes, and contain 10 times fewer moving parts compared to gasoline-powered vehicles. In fact, in comparison to gasoline- powered vehicles, EV’s do not contain a tailpipe, clutch, fuel tank, spark plugs, muffler, starter, or converter. According to the Department of Energy (2013), the plug-in electric vehicle has doubled the amount of vehicles sold as it did in 2012. There has been a continuous transition phase towards cleaner fleets of vehicles that are powered by electricity, hydrogen, petroleum, and advanced bio-fuel products that are causing a significant
  • 11. 2 reduction in gas emissions and petroleum consumption. The rate of the electric vehicle market appears to be growing faster than ever, in comparison to the earlier phases of hybrid vehicles. The market is currently on the path to reaching a turning point in the next decade. In fact, there are currently 30 types of plug-in vehicles that are sold in the United States from various major automakers such as Nissan, General Motors, and Mitsubishi. Several other major automobile corporations have announced production on new plug-in vehicles. The drawback of electric and hybrid plug in vehicles is cost; they are very expensive depending on the type of the battery, which means that the better the battery, the more you will pay. According to the World Alliance for Decentralized Energy (2014), the disadvantages of plug-in hybrid electric vehicles include weight, additional cost, and size of a larger battery pack. Battery performance and cost of electric and plug- in hybrid electric vehicles are considered essential factors for their development. Although electric and plug-in hybrid electric vehicles are quiet, silence has been a disadvantage because consumers like to hear the roaring sound of a vehicles engine. The main concern of electric and plug-in hybrid electric vehicles is the range anxiety which is the anxiety people feel when they are nowhere near a charging station. Nicel Metal Hydride (NiMH) batteries are currently the typical batteries used by electric and plug-in hybrid electric vehicles and are considered to have reached their maximum potential. Automakers are moving towards building lithium-ion batteries because they offer more energy density than NiMH batteries. According to Nemry, Leduc, and Munoz (2009), lithium-ion batteries are seen as the best option to meet the storage requirements of electric and plug-in vehicles. This research sought to identify the positive and negative
  • 12. 3 impacts of costs, battery performance, and consumer’s perceptions of electric and plug-in hybrid electric vehicles on their quest to being the dominant source of transportation in the future. Problem Background In today’s society there has been an overwhelming emphasis and focus on saving money on fuel, energy initiatives, and environmental concerns as well as an interest and emphasis on decreasing global warming. Increases in fuel prices concern many people who drive gasoline-fueled vehicles. Thorpe (2014) believed that the price of gasoline is likely to remain high enough to keep reminding consumers to drive more fuel-efficient vehicles. Many organizations are heavily investing into resources that reduce the problem of energy consumption and environmental hazards. Hybrid vehicles such as the plug-in hybrid electric vehicles are typically perceived as a gasoline-powered vehicle substitute and a resolution to the current environmental concerns, which results in the reduction of fuel usage and toxic emissions. The Union of Concerned Scientists (2012) reported that transportation produces approximately 30% of all of the United States global warming emissions, cleaner running vehicles will definitely help. Global warming causes climate disruptions, which put the water and food supply at risk, jeopardizes national security, endangers health, melts glaciers, and causes severe drought and floods. The United States Environmental Protection Agency (EPA, 2010) conducted research on gasoline-powered vehicles which concluded that toxic emissions cause global warming health issues. The four main categories of global warming health effects on humans are infectious diseases, extreme weather events, increased air pollution, and intense heat waves. The human health is threatened from the spread of tropical disease
  • 13. 4 and rising of sea levels can also cause damage to national and regional economies. The American Council for an Energy-Efficient Economy (2014) argues that carbon dioxide from fossil fuels like motor vehicle gasoline and diesel causes harm to the environment due to global warming. Gasoline toxic emission vapors are also poisonous to plants, humans, and animals. Electric and plug-in hybrid electric vehicles consume less fuel which not only protects the environment, it reduces economic costs and the liability of oil dependence. Barett (2014) agreed that although gasoline-powered vehicles electronic fuel injections and catalytic converters have helped reduce toxic emissions, they continue to produce a significant amount of air pollution in which the effects range from health problems to global warming. According to the Shepardson (2014), the electric vehicle (EV) and plug-in electric vehicle (PHEV) have reached a point in their life cycle where they are becoming a dominant product of technology. The current transportation sector of the industry was feeling intense pressure to develop an energy consumption alternative. Gasoline prices continue to increase, highways are congested, and the economy’s atmosphere continues to be environmentally polluted. According to the U.S. Department of Energy (DOE, 2013), using electric and plug-in hybrid electric vehicles instead of gasoline-powered vehicles reduces reliance on imported petroleum and increases energy security. The increased use of petroleum-based fossil fuels in the transportation field is damaging the environment and air quality in many areas around the United States and the world. Rodriguez and Comtois (2014) argued that the continued burning of fossil fuels releases carbon dioxide and contributes to the global warming of the earth, which could lead to an extreme worldwide degradation and environmental change.
  • 14. 5 Unlike gasoline-powered, petroleum-based fueled vehicles, the PHEV’s are charged from the utility grid in which most of the transportation energy used comes from electricity. The utility grid provides infrastructure in which renewable energy sources can be used to provide or supply electricity for transportation, residential, and industrial energy to sectors of the economy. According to Pothedar (2008), nuclear energy played an important role in helping the reduction of our dependency of fossil fuels, which also minimizes the amount of carbon dioxide released into the atmosphere. Some of the stumbling blocks to the wide spread acceptance of PHEV’s are the battery’s density, cost, life time, unfamiliarity, and style. According to Parker (2014), EV’s and PHEV’s require a large battery and generator which make it more costly in comparison to gasoline- powered vehicles. The cost of the battery has become one of the main focuses of auto manufacturers, utilities, and researchers however, the technology of the battery has illustrated promising development. According to Dowds, Hines, Farmer, and Watts (2010), vehicle purchase price and operating costs were considered as the major determinants of electric and plug-in hybrid electric vehicle purchasing decisions and, due primarily to expensive battery costs, plug-in hybrid electric vehicles are projected to be significantly more expensive than electric vehicles. Battery aging has continued to be one of the main issues that electric vehicle manufacturers attempt to avoid for fear of turning potential buyers away. Although many people can accept the runtime of their cell phones or laptops and adjust to lower expectations accordingly, a consumer spending a lot of money for an electric or a plug-in hybrid electric vehicle may not be so forgiving. The motorists of these vehicles are familiar with ample power and minimal degradation in the performance as the
  • 15. 6 vehicles age and when driving in cold temperatures in which the battery cannot match the performance. The owners of electric and plug-in hybrid electric vehicles will have to tolerate a decrease in distance driving during winter, as well as accepting a small reduction in the delivered mileage with every advancing year due to the aging of the battery. Sabatini (2013) argued that the biggest drawback of electric and plug-in hybrid electric vehicles is the price due to the battery being very expensive. Consumer’s perception on the cost of electric and plug-in hybrid electric vehicles is negative because they are very expensive. GFK (2013) conducted a survey on consumer’s perceptions and concluded that the participant’s top two negative responses of electric and plug-in hybrid electric vehicles were that they are very expensive and have a limited battery life span. The purpose of studying the biggest battle between electric and plug-in hybrid electric vehicles will not just be determined by technology, but by the consumer’s preference and beliefs. The intent of the research was to decrease the ingrained habits and alter the perceptions of consumers. Possel (2011) argued that if consumers do not break out of their habits and perceptions, the lack of popularity and adoption of electric and plug-in vehicles could hold them back. Purpose of Study The purpose of the mixed method research obtained in-depth survey information on EV’s and PHEV’s consumer’s opinions in order to identify key issues and developments. According to Creswell (2010), the components of the mixed method research developed the framework for analyzing key developments, issues, and priorities. The purpose of the quantitative portion of the mixed method was to collect quantifiable data from the participants. The unbiased data obtained from the participants was
  • 16. 7 analyzed using statistics by asking specific and narrow questions. The purpose of the qualitative portion of the mixed method was to provide an understanding of plug-in hybrid electric vehicle consumer buyer perceptions, attitudes, needs, and to examine all of the factors that affect their purchasing decisions. Furthermore, reviewing numerous qualitative scholarly literature on EV’s and PHEV’s provided an in-depth analysis on consumer buying habits and what impacts them. For example, consumers typically prefer to maximize their utility such as availability, style, cost, and many other vehicle attributes when making a purchasing decision. Edmunds (2013) argued that consumer’s relish the thrill of driving right by the gas station, electric and plug-in hybrid electric vehicles minimizes or takes gasoline out of the equation all together. The purpose of the study on electric and plug-in hybrid electric vehicles was to provide clarity on the consumer’s perceptions and beliefs on the battery life span, charge, and cost of the vehicles. According to Austin (2013), the biggest barrier of electric vehicle batteries, which decreases consumer purchases, is the lack of public understanding of their technology and capability. Consumer’s perceptions of the rechargeable batteries on electric vehicles have a long history that comes with the connotation that clouds consumer’s perceptions, potentially slowing their sales. For example, a study by Consumer Reports (2012) identified that participants had strong misgivings and misunderstandings about electric cars, such as their range, charging, safety, post-crash fire and protection, risk of electric shock, and accident avoidance. Increasing the knowledge of consumers further validates the dominance of electric and plug-in hybrid electric vehicles, surpassing gasoline-powered vehicles as the primary
  • 17. 8 source of transportation in the future. The purpose of this study was to examine the current state of knowledge and opinion about electric and plug-in hybrid electric vehicles among U.S. consumers. It asked questions about their potential likes and dislikes of electric and plug-in hybrid electric vehicles by examining the conditions under which consumers would purchase these types of vehicles. Rather than just focusing on the first adopter of these vehicles, the research focused on the potential pool of purchasers in the first several years after the introduction of electric and plug-in hybrid electric vehicles. The research focused on a determination of which factors would initiate the sales of electric and plug-in hybrid electric vehicles and which factors represented barriers to the future success of these vehicles. Research Question and Hypotheses Is there a positive correlation between consumer familiarity, knowledge, and exposure related to sales? The research question was, “What are the factors that have the most impact on the success of electric and plug-in hybrid electric vehicles?” H1o: There is not a positive correlation between consumer familiarity of electric and plug-in hybrid electric vehicles in relation to sales increase. H1A: There is a positive correlation between consumer familiarity of electric and plug-in hybrid electric vehicles in relation to sales increase. H20: There is not a positive correlation between factors and the success of electric and plug-in hybrid electric vehicles.
  • 18. 9 H2A: There is a positive correlation between factors and the success of electric and plug- in hybrid electric vehicles. H30: There is not a positive correlation between variety of various types of electric and plug-in hybrid electric vehicles in relation to more consumer options. H2: Increase exposure of electric and plug-in hybrid electric vehicles, will positively impact the amount of sales. H3: Variety of various electric and plug-in hybrid electric vehicles is related to more consumer buying options. H3A: There is a positive correlation between variety of various electric and plug-in hybrid electric vehicles in relation to more consumer options. H40: There is not a positive correlation between the knowledge of electric and plug-in hybrid electric vehicles and more consumer purchasing options. H4: Improvement on electric and plug-in hybrid electric vehicle battery range and charging time are related to consumers purchasing. H4A: There is a positive correlation between the knowledge of electric and plug-in hybrid electric vehicles and more consumer purchasing options. H50: There is not a positive correlation between improvements on electric and plug-in hybrid electric vehicles battery range and charging time in relation to consumer purchasing. H5A: There is a positive correlation between improvements on electric and plug-in hybrid electric vehicles battery range and charging time in relation to consumer purchasing. H60: There is not a positive correlation between exposure of electric and plug-in hybrid electric vehicles and sales.
  • 19. 10 H6A: There is a positive correlation between exposure of electric and plug-in hybrid electric vehicles and sales. Limitations The study was limited to the state of Texas. The limitations and restrictions of this study were mainly in the areas of time constraints and availability which the researcher had no control over. There was a limitation due to the interviewee’s availability because the automobile dealership owners had to be contacted via e-mail or telephone. This placed some constraints on some of the information this researcher needed to gather from vehicle owner contacts. The limited number and types of electric and plug-in hybrid electric vehicle models placed a constraint on the research. The geographic limitation of the state of Texas also caused a constraint on obtaining information on the study of various types of vehicles in other states and countries. Delimitations Delimitations such as the limitation of plug-in hybrid electric vehicle dealership owners who were interviewed to consumers, salesmen, and manufacturer employees who use or are involved with electric and plug-in hybrid electric vehicles were used. The study primarily focused on the perspectives of current electric and plug-in hybrid electric vehicle users. The study was geographically limited as it focused only on the involvement of Austin, Texas with the electric and plug-in hybrid electric vehicle industry. The research of electric and plug-in hybrid electric vehicles did not attempt to favor and promote them, but aimed to make an unbiased assessment of the alternative vehicles. The analysis was conducted in our current settings, with the initial investment
  • 20. 11 made several months prior. It is also assumed that the purchase of electric and plug-in hybrid electric vehicles would not have a significant impact in the market. Definitions Economic: The operating costs, purchase price, and maintenance cost of electric and plug-in hybrid electric vehicles. Electric vehicle: Referred as an electric drive vehicle, which uses one or more electric motors or traction, motors for propulsion. There are three types of electric vehicles: directly powered from external power stations, stored electricity from an external power source, and by an on-board electrical generator. Environmental: The amount of greenhouse gas (GHG’s) emissions created by alternative fuels. Plug-in Vehicles: Defined as a regular plug-in hybrid electric vehicle that contains a large high-capacity battery bank that can be recharged by plugging it directly into normal household current or a plug-in station. Social: Defined as the cost/benefit to all electric and plug-in hybrid electric vehicle consumers and employees for choosing between alternative fuel and gasoline. Importance of Study In today’s society, there has been a continuous transition phase towards cleaner fleets of vehicles that are powered by electricity, hydrogen, petroleum, and advance bio- fuel products that are causing a significant reduction in gas emissions and petroleum consumption. According to the Department of Energy (DOE, 2013), the plug-in electric vehicle has doubled the amount of vehicles sold since 2012. The batteries in the electric and plug-in vehicles are rechargeable and store electricity that powers the electric motors.
  • 21. 12 They must be recharged by plugging them into a power source or an external charger to drive the vehicle without gas between approximately 10 to 100 miles. According to Drive Clean (2013), electric vehicles can travel 70 to 100 miles (some go even further) on a full charge and plug-in hybrid electric vehicles can travel on battery power alone between 15 and 35 miles, and more than 300 miles in gasoline-electric hybrid mode. When the charge runs out, the gasoline and electric motors work together. According to the Department of Energy (DOE, 2013), the battery charging time ranges between 15 minutes to 20 hours, depending on the type of battery. EV’s motor contains zero tailpipe exhaust missions. The growth rate of the electric vehicle market appears to be growing faster than ever in comparison to the earlier phases of hybrid vehicles. The market is currently on the path of reaching a turning point in the next decade. In fact, there are currently 30 types of plug-in vehicles that are sold in the United States from various major automakers such as Nissan, General Motors, and Mitsubishi. Several other new and major automobile corporations have announced production of plug-in vehicles. The importance of understanding the relationship of how the cost, style, and consumer lack of environmental knowledge influences purchasing towards EV and PHEV dominance in the transportation sector. The significance of EV’s and PHEV’s increase the improvement of road transportation fuel economy and decreases greenhouse gas emissions into the environment. Accordingly, the United Intergovernmental Panel (IPCC, 2008) agrees that a 50-80% reduction in global emissions is required by the year 2050, which avoids severe climate change by limiting the temperature increase from 2 to 24 degrees. This study provided a much-needed insight on the importance of having
  • 22. 13 electric and plug-in hybrid electric vehicles as a dominant means of transportation. The information obtained from the study should aid consumer’s decision to purchase electric and plug-in hybrid electric vehicles as their primary source of transportation, thus supporting the reduction of greenhouse gas emissions. World Watch Institute (2014) indicated that a transition that limits the times vehicles need charging is under way across Europe and the United States. EV’s and PHEV’s, when coupled with low greenhouse (GHG) electricity generation, can decrease petroleum and CO2 significantly, especially in the future. The keys to success will be to start now on achieving interim targets and substantial shares in the long-term. The roadmap helps to establish a vision for technology development and set feasible targets and steps that automakers must make to get our society there. The roadmap also outlines the role for many different stakeholders and government policies on how they can work together to reach these common objectives to support the process. According to the International Energy Agency (2013), there will be about eight million EV’s and PHEV’s in the year 2020 in which a 50kw power drive train would be 400 GW, which is 20 times as large as the current solar market size.
  • 23. 14 CHAPTER TWO: REVIEW OF THE LITERATURE As the price of gasoline increases, global warming and many individuals relying on foreign oil is becoming a continuous concern. The auto industry is making efforts to reduce the environmental and economic impact on U.S. citizens. Automakers continue to look at new technologies to increase miles per gallon (MPG) in order to mitigate greenhouse gas emissions and the pollution in the atmosphere. Laws have been passed to improve the corporate fuel economy standard, which increases the average gas mileage for vehicles. Vehicles with the combination of a combustion engine and a battery improve the efficiency of energy and have gradually made their way into the market with increased in popularity. According to Lamberson (2008), hybrid electric vehicles accounted for approximately two percent of the United States light duty vehicle sales in 2007 and the government provides tax credits that average $2,000 to encourage the purchase of these vehicles. Although electric and plug-in hybrid electric vehicles were currently not available for commercial use, passenger vehicles allow greater efficiency by allocating a large amount of drive to the battery. Maynard (2008) believed that the plug-in hybrid electric vehicles would heavily penetrate the market in 2010 because automakers and battery designers promised to introduce plug-in hybrid electric vehicles that can drive over 100 mpg. Electric vehicles have to be charged by electricity through electrical outlets, which could provide a major impact in establishing the energy independency and planning as a nation. The batteries of electric and plug-in hybrid electric vehicles are charged through dedicated household electrical outlets, personal charging stations, and publicly used high traffic areas such as major corporations and shopping malls. For example, in a study that the California Car
  • 24. 15 Initiative (2009) conducted, when people used charging stations during off peak (nighttime) hours, the demand for electricity was typically lower than during the middle of the day. Also, in comparison to the equivalent of gasoline miles per gallon, electricity is cheaper which is considered as a win-win situation for plug-in owners and their utilities. Nuclear plants that contain electric generators have to sustain a certain amount of electricity to operate efficiently which means that the unused electricity could also be used to charge electric and plug-in hybrid electric vehicles. The scholarly literature review identified various consumers’ perspectives on environmental costs and battery issues while also providing information on the developments of electric and plug-in hybrid electric vehicles. Consumer Purchasing Behavior In today’s society, there is a clutter of different services and products available and understanding how consumers are motivated to purchase is essential for effective marketing strategies. Consumer behavior takes into consideration the many reasons why situational, personal, psychological, and social consumers shop for products, buy and use them, and then dispose of them. Leahy (2008) argued that motivation works as a complex process in consumers. There are five basic types of motivation for consumers; achievement, thirst for variety, individuality, order, and needs. Achievement is an important consumer motivator because it is related to positive reinforcement in which the outcome is seen to bring positive consequences rather than problem solving motivational factors. Thirst motivation is a motivation for companies and consumer’s in which they often attempt to answer these needs by offering new products. Individuality influences many consumers’
  • 25. 16 purchasing decisions, which are shaped into memories, perceptions, and experiences. Order is a motivational factor that causes most consumers to crave order in their lives. Lastly, the most important motivator is needs in which consumers must satisfy in order to live. Basic needs such as food, warmth, and shelter must be satisfied before an individual can proceed to more complex needs like friendship, love, and belonging. The Wall Street Journal (2013) argues that increasing fuel economy in all vehicles, along with gas prices topping out at $3.75 a gallon, is a signal that the demand for electric and plug-in hybrid electric vehicles will continue to remain weak in which they reported less than one percent of all light vehicle sales in July 2012. Regardless of the behind the price cuts, this is very good news for consumers who are looking to buy an electric or hybrid plug-in vehicle breaking the bank. This type of motivation is considered economic motivation; economic motivation is when the price is the main factor. For some consumers, organizational factors are significant such as management buying items for their small business or office or a mother purchasing items for her family. Consumers can also be motivated by conditioning which is when a consumer buys the same food or cleaning products. There are unconscious and deep hidden drives that motivate consumers to buy particular products or brands. Cherry (2013) reported that many leading theorist’s implement the Freudian theories of the unconscious to market products and thus launched the public relations industry. The Freudian theory is structured into two main parts: the conscious and unconscious mind. Conscious mind includes all things that consumers are aware of or can easily bring into awareness. Unconscious mind includes all things outside of the consumer’s awareness such as wishes, hopes, desires, memories, and urges that lie
  • 26. 17 outside of awareness but yet continue to influence behavior. Consumers are also motivated by what other consumers think of them, such as social factors. There are six different types of behaviors that consumers use during the buying process which are: (a) the need recognition, (b) search for information, (c) product evaluation, (d) product choice and purchase, (e) post purchase use and evaluation, and (f) the disposal of the product (Consumer Behavior, 2014). Marketers tend to try to stimulate consumers into realizing that they have a need for their product. For example, how many times have you heard about a movie but had no interest to see it until you saw the previews for the movie? Once previewed, many consumers are persuaded and feel like they have to watch it. The search for the information stage of the buying process is considered as a great position for a company or business that owns a certain brand to be in something firm that limits the consumers search and forces them to purchase the brand again. Internet shopping sites like Amazon.com have become a common source of information on products. Consumers typically prefer independent sources when they are searching for a product. On the other hand, they also consult non-neutral sources of information such as brochures, salespeople, company Web sites, and advertisements. Product evaluation develops an evaluation criterion, which contains certain characteristics that are important to consumers, and some of the characteristics may be more important than others. Marketing professionals like to convince consumers that the evaluative criteria they are considering reflects the strengths of their products. The product choice and purchase section of the buying process is where the consumers decide on the product that he or she wants to purchase. On the other hand, in addition to the
  • 27. 18 product, the consumer would probably be making other decisions within this stage which include where and how to purchase the product and on what terms. Also, other decisions such as those related to big ticket items are typically decided at this point. The post purchase use and evaluation stage of the buying process is when the consumer decides whether the product they have purchased is everything that it was hyped up to be. Hopefully it is, because if not, consumers would likely suffer from post purchase dissonance or, in other words, buyer’s remorse. Consumers want to feel good about the product they have purchased but they may begin to wonder whether they should have waited to get the price at a better price when they are unhappy about a product. Many companies conduct various methods in order to prevent buyer’s remorse. For example, smaller companies typically will offer a money back guarantee, while large companies might offer a warranty or a customer service troubleshooting line for consumer’s to call. The last stage of a consumer buyer’s process is the disposal of the product. Consumer purchasing behaviors motivation consists of direction and drive. Direction is the choice that a consumer makes between alternatives and drive is the strength of the motivation. De Mooij (2010) agreed with Freud’s theory on consumer and behavior that motivation is defined as the internal state of an organism that drives to behave in a certain way. Drives are motivational forces, which cause an individual to be active and to strive for certain goals. These are the main types of motivations: 1. Physiological explanations that emphasize the importance of needs and/or internal drives are called primary drives due to their importance to the organism. For example, thirst and hunger are considered as the primary drives for drink or
  • 28. 19 food. Internal physiological drives are based on the process of homeostasis in which we maintain a reasonable constant internal physical/biological environment. 2. Behavioral explanations rely on acquired drives through learning are called external drives. This type of behavior is an action in which people learn to adapt to external circumstances such as avoiding extreme temperatures. 3. Psychological explanations tend to apply to complex human behaviors. The psychological sense of motivation is generally conceived in terms of process, or series of processes, which somehow steer, sustain, start, and finally stop a goal- directed sequence of behavior. Covert and overt motivating factors are the basis of a consumer’s inner motivation. Many theorists believe that tension reduction is the basis of motivation. Theorists also argue that consumers live in a constant state of tension in which they purchase items to reduce tension. Consumer’s tensions are typically heightened by their wants and needs and advertisers try to promote these tensions to consumers to encourage them to buy more. Internal and external factors motivate consumers to purchase. Experiences, needs, desires, and personality traits with societal expectations or pressures increase or decrease a consumer’s motivation. Xaxx (2014) argues that advertisers and marketers spend a lot of money and time determining the motivations of consumer’s who purchase the products of their clients. On the other hand, while individual motivations for choices of consumption vary widely, there are themes within a community that are useful for making marketing and manufacturing decisions. Consumers typically like to know that a product they are
  • 29. 20 purchasing is not going to harm them. This is definitely true in the areas of cars and food. For example, many food shoppers are typically willing to pay a substantial amount of money for food that meets their criteria. Electric and plug-in hybrid electric vehicle automakers must understand which marketing techniques can best influence a consumers’ purchasing behavior from one stage to the next within the purchase funnel: through education, advertising, word of mouth, public relations, and social media. Baron (2010) felt that at first glance, familiarity towards electric and plug-in hybrid electric vehicles does not appear directly correlated to a consumer’s willingness to purchase. However, the knowledge of the consumer familiarity can arm electric and plug-in hybrid electric vehicle automakers with the foundation for a successful marketing strategy and campaign. Choices that some consumers make are conscious while others are not, even though the latter may be just as influential. Some marketers attempt to take advantage of the consumer’s unconscious choice by introducing subtly manipulative elements into the purchasing experience. When marketers present products in a seductive lighting and idealized surroundings it causes consumers to be drawn to them. This type of unconsciousness drive is typically balanced by a conscious awareness of the products price, quality, and personal need or lack of need. The relative unconscious and conscious elements are varied among consumers. According to Kroeber-Riel and Weinberg (2009), consumer motivation is a goal- oriented driving process that consists of two major components, emotional and cognitive. The emotional component represents a trigger for action, while the cognitive components represents the way and direction of the action to be realized. Typically instincts are
  • 30. 21 separate as part of a motivation construct which influence and trigger the behavior. Instincts are inborn in that they are not learned behavior patterns that are activated by basic, inner stimuli and automatically result in various actions. Axsen and Kurani (2013) conducted a survey in which he identified five theoretical perspectives on consumer purchasing influence when purchasing an electric or plug-in hybrid electric vehicle. They are conformity, contagion, dissemination, reflexivity, and translation. The survey context was a plug-in hybrid electric vehicle demonstration project where 275 interpersonal interactions were elicited from interviews with 40 individuals in 11 different social networks in northern California. These perspectives are applied to a consumers buying perceptions of an electric or plug-in hybrid electric vehicle. The results indicated that electric and plug-in hybrid electric vehicles can be perceived as having symbolic, functional, private, and societal attributes. Brookins (2014) indicated that consumers typically make purchasing decisions when they purchase small items, and when they purchase larger items consumers begin searching for services or products based on their needs. Before making a purchase, consumers evaluate their options by taking note of everything from pricing to a brand’s reputation. There are four types of consumer purchasing behavior that impact product purchase decisions. These are impulse purchases, routine purchases, limited decision making, and extensive decision making. For example, an impulse purchase is when a consumer stands by the checkout counter and purchases a product in which he or she adds to their groceries. This type of consumer purchasing behavior is when a consumer makes a purchase with little to no plan or thought involved typically with low-priced items.
  • 31. 22 Routine purchases are items that consumers purchase daily, once a week, or monthly. This type of purchase can range from a morning cup of coffee from a local convenience store, to eggs, milk, and cheese from the supermarket. This type of consumer purchase behavior spends very little time deciding whether or not to buy these items and does not typically read reviews or consult with other individuals for their opinions before they make their routine purchases. Consumers who use limited decision- making before engaging in a purchase may seek advice or a suggestion from a friend. The consumer may research a few options, but the search is not thorough or time consuming as with a higher price. Extensive decision-making consumers purchase high priced electronics, such as computers, cameras, televisions, or major purchases such as a car or home. This type of consumer behavior spends a substantial amount of time researching a high number of various potential options before they make a purchase. They also consult with friends, family, sales professionals, colleagues, and read review and ratings online and in consumer magazines. Extensive decision-making processes last longer, because the consumer is investing a substantial amount of money. Consumer Reports (2012) conducted a survey on the influence that affects the choices of consumers purchasing their next vehicle. When it came to shopping for a new vehicle, 37% of respondents in the survey said that fuel economy has the highest impact on their consumer purchasing behaviors, while trumping other important factors such as safety, quality, and value. Two-thirds said that they expect their next vehicle purchase to get better fuel economy than the one they are driving now, while 60% of the respondents were willing to sacrifice the size of capacity of the vehicle to purchase it and about half of them would give up some of their comfort or amenities. Here were the results of the
  • 32. 23 survey conducted on consumer behaviors and factors. Table 1 1. Consumer Behavior and Factors Consumer Behavior and Factors Car-purchase factor Most important (%) Fuel economy 37 Quality 17 Safety 16 Value 14 Performance 6 Design/style 6 Technology/innovation 3 Motivations Percentage Lower fuel costs 90 Latest fuel-saving technology 69 Environmentally friendly/green 62 Dependence on foreign oil 56 Change in lifestyle/family 34 Note. Source from http://www.consumerreports.org/cro/2012/05/high-gas-prices- motivate-drivers-to-change-direction/index.htm Sales and survey trends identified that many consumers are downsizing their purchases in order to achieve their goals. More than half of the consumers said that they were considering a more efficient vehicle and were emphasizing motivation factors other than fuel costs which included the desire to be more environmentally friendly because of concerns about the nation’s dependence on foreign oil which is about 56%. A third of the consumers stated that a change in their regular lifestyle or family motivates their plans, which cause a shift in car priorities. The survey also identified that more men (65%) versus women (58%) felt that they are motivated by the environmental benefit of better fuel economy. Vaughan (2013) felt that there are stories abound of upset electric and plug-in
  • 33. 24 hybrid electric vehicle owners getting upset because of their battery charging problems. The trouble only seems to exist for vehicle owners of plug-in hybrid electric vehicles and all electric vehicles. The more common hybrids get their energy from the regenerative braking, an internal combustion engine and are not designed to be plugged in. Consumers are pulling into charging stations only to discover that they cannot use them. The reason why they are unable to use them is because their vehicle is incompatible with the particular charging unit or the charging is occupied by another vehicle for hours or an individual in gasoline powered vehicle has parked in the space, blocking the charging unit. Many consumers were worried about their limited range and the potential repair costs of the electric and plug-in hybrid electric vehicles. According to Consumer Reports (2013), consumers should be more concerned about where to plug the vehicles. In a study conducted by the Consumers Union and the Union of Concerned Scientists in which they surveyed 914 adult car owners in a nationally representative telephone sample, 42% of the drivers fit within all the parameters necessary to use a plug-in hybrid electric vehicle for their transportation needs with very few changes in their behavior. Sixty percent of the respondents met the criteria to make a pure battery-electric vehicle practical for them. The results of the survey indicated that almost twice as many respondents would consider buying a plug-in hybrid electric vehicle that can run on electricity and gasoline as would consider buying a pure electric vehicle. On the other hand, 40% of the respondents said that they would consider purchasing a plug-in hybrid electric vehicle if they had to pay more for it, even if a fuel savings would offset the additional cost within
  • 34. 25 five years. As you can see, the range limitations and up-front costs weigh heavily on the purchasing behavior and minds of the consumer. Cobb (2014) conducted a nationwide survey that explored the U.S. consumer attitude towards the 10 clean energy technology and identified a wide disconnect between consumer that are in “favor” of alternative energy transportation and the percent that purchase them. Based on a statistically significant cross sampling of 1,084 consumers, the online questions in which the respondents believe well about electric and plug-in hybrid electric vehicles. The result of the survey found variances between respondent’s attitudes held by African Americans, Asians, age groups, Caucasians, Hispanics, education levels, income, and gender. Below are the illustrated survey results of consumer behavior.
  • 35. 26 Figure 1. Survey Results of Consumer Behavior. The illustrations indicated that there are a lot of people at least cognizant of electric vehicles, plug-in hybrid electric vehicles, and regular hybrid vehicles and believe that they are a good idea, but are on the fence about the vehicles for one reason or another. For example, some people like exotic vehicles but still would not buy them. Although the illustrations show that people like these types of vehicles, just because they are not buying does not mean they hate them.
  • 36. 27 Figure 2. Consumer Favorability for Hybrid Vehicles by Demographics. Consumers over 65 years of age and those with high school degrees or less expressed a
  • 37. 28 lower degree of favorability compared to those with higher income and education. Figure 3. Consumer Favorability for Electric Cars by Demographics.
  • 38. 29 The electric vehicle results showed similar results and were favorable among Hispanics, which trended higher, and Asians, while the minority sampling of the survey trended the highest. African and Caucasians followed with regard to favorability. Many consumers relish the thrill or opportunity of driving by a gas station without having to fuel up their vehicles. Many people believe that it may be considered the greatest luxury of all. While the thought of enhanced fuel economy has become one of the various issues to consumers these days, electric and plug-in hybrid electric vehicles have had a strong appeal to consumers. Electric vehicles take gasoline out of the equation all together, while plug-in hybrid electric vehicles offer an extended electric range before the use of gasoline. According to Edmunds (2013), the average smart shopper based their vehicle purchases on practical range, affordability, as well as pure fuel efficiency. Axsen and Kurani (2013) conducted a survey that collected data from 508 households on new vehicle buyers in San Diego, California. The survey indicated that a majority selected and designed some form of plug-in hybrid electric vehicle for their next new vehicle, smaller numbers designed a conventional vehicle or hybrid electric vehicle, and only a few percent of individuals designed an electric vehicle. Participants who designed an electric vehicle were more concerned about the vehicles limited range, charging availability, and expensive vehicle purchase price. On the other hand, the positive interest of the consumers towards electric and plug-in hybrid electric vehicles was associated with the vehicles image of intelligence, support, and responsibility of the environment in the United States. Axsen and Kurani (2013) argued that the vehicle distribution designs suggest that smaller, cheaper battery plug-in hybrid electric vehicles
  • 39. 30 may achieve more of a short-term market success than the larger battery of electric vehicles. Consumer Report (2013) conducted a study on electric and plug-in hybrid electric vehicles that consumers purchased, which indicated that almost twice as many consumers would consider buying an electric and or plug-in hybrid electric vehicle. On the other hand, only 40% stated that they would consider purchasing the vehicles if they had to pay more for them, even if fuel savings within a five-year time frame would offset the additional cost. Up-front cost and the limitation of range weighed heavily in the mind and perception of consumers. Literature identified that electric and plug-in hybrid electric vehicles were appropriate for about two of five drivers, in which a 65% majority agree that these types of vehicles are an essential part of the transportation future for the possibility of global warming pollution and the dependency of oil. The literature identified that electric and plug-in hybrid electric vehicle consumer purchasers who are considered well informed and knowledgeable tend to stay with these types of vehicles. Accenture (2011) argued that consumer purchasing factors other than price, increased vehicle availability, and consumer knowledge is a significant purchase decision factor. Consumer’s purchasing preference typically reflect today’s perceptions rather than experience. Drivers who were identified as short-range drivers may get behind the wheel of electric and plug-in hybrid electric vehicles and their preferences may change. The literature also specified that the makers of these vehicles anticipate that the market segment could possibly be larger for full electric vehicles in the foreseeable future. Accenture (2011) provided information within their literature in which they
  • 40. 31 conducted a study on consumer’s attitudes, perceptions, preferences, habits, and behavior about purchasing electric and plug-in hybrid electric vehicles. The survey identified that ingrained consumer behavior possibly hindered the grid management. Manufacturers needed to identify consumer segments and target them appropriately to gain their attention. The survey identified different segments containing varying levels of priorities and concerns. For example, the younger generations have a greater need to know the fuel source that powers the vehicles, but they would be less discouraged by fossil fuel or nuclear power energy than older drivers. Younger generation purchasers would be concerned about the availability of parking and the price of charging the vehicles. Baptista, Rolim, and Silva (2012) conducted a survey of respondents that were characterized as a population more likely to accept alternative vehicles such as electric and plug-in hybrid electric vehicles. The participants were individuals between 25 and 50 years of age that contained a high level of education. The participants were provided a brief explanation of the vehicles in which the respondents preferred plug-in hybrid electric vehicle to electric vehicles due to their fuel flexibility and extended autonomy. Electric and plug-in hybrid electric vehicles potential buyers were also sensitive to fuel prices, electricity prices, and if running the technology is two to three times cheaper, then the probability of purchasing these technologies would more than double. Energy Performance The energy performance of the electric and plug-in hybrid electric vehicles uses rechargeable battery packs that can reduce the dependency of petroleum because the energy is domestically powered. According to Dye (2013), gasoline-powered vehicles operate at approximately 30% efficiency, and approximately 70% of the energy is eaten
  • 41. 32 by sound, heat, and pollutants that destroy the atmosphere. According to numerous studies, a vehicle that contains an electric motor can operate at approximately 90% efficiency because of the instant power through torque. A gasoline-powered engine converts energy into motion by igniting fuel that moves pistons and turns a crankshaft that spins the flywheel, which in-turn causes the wheels to turn. A gasoline-powered engine at low speed does not have enough torque, forward movement produced by rotational motion to move the vehicle. As a result, all of the energy has to be assisted by the transmission, which allows the engine to rotate faster to get the vehicle to move, and slow down when the speed increases. Vehicles that contain electric motors do not need help in complex, heavy, and expensive transmissions found in today’s gasoline powered vehicles. Electric and plug-in hybrid electric vehicles have as much torque, which is called “instant torque,” from a standstill as it does at high speeds. General Motor’s president Waters (2013) argues that a toy-like sedan could be faster than a high-performance vehicle, at least from 0 to 30 mph. He also believes that this is part of the reason some of the fastest vehicles on the earth are now powered by electric motors, not gasoline-powered engines that have been around for more than a century. Electric and plug-in hybrid electric vehicles that have been used in experiments have achieved sustained speeds of more than 180 mph and have also established world record speeds above 300 mph. The high performance of electric and plug-in hybrid electric vehicles has been overshadowed by two major factors such as range because of the fear of running out of juice halfway home from work, and the batteries because they are heavy, expensive, and require frequent charging. In the future, some problems will vanish through the natural course of new
  • 42. 33 technology, like faster charging, additional remote charging locations, and more energy within the battery. The current state of the art of the battery is the lithium-ion in which researchers all around the world are working to improve its performance. Waters (2013) argues that in order for electric and plug-in hybrid electric vehicles to take over the industry, the energy performance clearly has to change in which new reports of breakthroughs are announced on almost a daily rate. For example, the University of Colorado recently claimed that they are now able to double the range of electric and plug- in hybrid electric vehicles powered by a lithium-ion battery. They have found ways to replace the liquid electrolyte with a solid-state system that contains a higher energy density that moves through a solid ceramic electrolyte which allows them to have the funding to move the new technology of electric and plug-in hybrid electric vehicles closer to becoming a commercial reality. Vehicle Cost Comparison In comparison to gasoline-powered vehicle, electric and plug-in hybrid electric vehicles contain additional maintenance and manufacturing costs. The cost mainly results from the transmission, engine, controller, charger, and battery manufacturing cost as well as various upgrades. Additional manufacturing costs are in the $4,000 range in comparison to gasoline powered vehicles. Electric vehicles cost approximately 10% to 30% higher than conventional hybrid plug-in vehicles. The battery of electric and hybrid vehicles account for the higher contribution of the vehicles in which the price increases with the amount of storage capacity of the battery. The literature expresses that the cost of electric and plug-in hybrid electric vehicles are expected to decline in the near future. According to DOE (DOE, 2013), electric and plug-in hybrid electric vehicles are likely to
  • 43. 34 decrease in the future as production volume increases. Hybrid plug-in vehicles are powered by electrical energy stored in the battery and by conventional fuels. They use the electricity from the grid to charge the battery, which costs less and reduces the amount of consumption compared to gasoline-powered vehicles. Electric and hybrid plug-in vehicle fuel costs are typically lower than gasoline- powered vehicles but the purchase price of the vehicles are significantly higher. The purchase costs or initial costs of the electric and plug-in hybrid electric vehicles are offset by various fuel cost savings such as state incentives and federal tax credits. Through the year 2014 or until the manufacturers meet their vehicle sales threshold, consumers who purchase electric and plug-in hybrid electric vehicles will receive a $2,500 to $7,500 tax credit based on battery capacity and the size of the vehicle. Threvenot (2013) reported that if you are looking to purchase an electric or hybrid plug-in vehicle in California, state and federal incentives can decrease the price of vehicles as much as $10,000, which is nearly a third of the sticker price of various models. Electric and plug-in hybrid electric vehicles contain many advantages over gasoline-powered vehicles because they: 1. Save money on fuel and vehicle maintenance, 2. Are approximately three times more energy efficient, 3. May be recharged at home overnight, 4. Produce no tailpipe emissions, 5. Are quiet to drive, 6. Require less maintenance than gasoline powered vehicles, and 7. Are available in a variety of hybrid configurations. Zhu and Nigro (2012) conducted a study on the potential market comparison of
  • 44. 35 electric and plug-in hybrid electric vehicles. The vehicles used in the study were the Chevrolet Volt, Nissan Leafs, and Toyota Prius. Although Nissan achieved a worldwide sales goal in 2011, Chevrolet missed its target by 10,000 for the year and the Toyota Prius only sold 300 units in its first year in the market. The Toyota Motor Corporation (2010) argued that when sales expanded from Japan to the European and North American markets in the year of 2000, the sales of Prius vehicles increased from 19,000 to 29,500 the following year. Pike Research (2011) forecasted that electric and plug-in hybrid electric vehicles would grow at a 43% annual rate between the year 2011 and 2017, which will result in approximately 303,000 vehicles sold and one million vehicles on the road by 2017. Within the range of Pike Research forecast, the Obama Administration had a highly publicized goal of having one million hybrid plug-in vehicles on the road by the end of 2015. There were several studies conducted in this literature by various researchers, which indicated that consumers have very high expectations regarding the price, driving range, and charging time of electric and plug-in hybrid electric vehicles. For example, Accenture (2011) conducted a survey that found 57% of Americans would consider the purchasing of electric and hybrid plug-in vehicle as their next vehicles and that the vehicles currently on the market did not meet their expectations. The reviewed literature on the electric and hybrid plug-in vehicle identified that there is definitely a need for better costs, maintenance costs, and how vehicle knowledge and cost have an impact in the future. Battery Specifications and Charging Nemry et al. (2009) wrote about consumers having range anxiety and their
  • 45. 36 unfamiliarity may disappear as consumers become educated, but there still remains strong initial obstacles to purchasing electric and plug-in hybrid electric vehicles. With their limited range and exclusive use of electricity, battery electric vehicles were considered more reliant on higher-power changing and more electric vehicle supply equipment build out than hybrid plug-in vehicles. On the other hand, the growth of hybrid plug-in vehicles will likely be influenced by the availability of some charging infrastructure which will be near homes and workplaces. The literature indicated that there are currently three charging levels and or speeds on a commercial scale such as Level 1 Alternating Current (AC), Level 2 AC, and Level 3 Direct Current (DC) fast-charging. All electric vehicles, especially battery electric vehicles, will require charging in Level 1 AC which will be widely compatible with all hybrid plug-in vehicles. Level 2 AC will also be compatible with all hybrid plug-in vehicles, which is important for electric vehicles to charge within an acceptable time frame, but it will require an additional cost. DC is considered a fast charging method that significantly decreases the time required to charge the electric vehicles. However, Level 1 and 2 AC are the two different standards used in the U.S. for fast charging. Level 1 uses the United States standard 120 VAC, 20A or 15A branch circuits, which is typically used in commercial and residential buildings. The maximum amount of power that it delivers is 1.44kW, which allows the user to avoid overload by installing a new-dedicated circuit. Level 2 is considered a single-phase 240VAC branch circuit with a 40A dedicated circuit. The maximum charge power for this circuit would be 3.3k, which is implemented for public and residential charging. Level 3 is considered a fast charging 480 VAC three phase circuit methods through public facilities which enables a
  • 46. 37 charging power of 60-150 kW. Currently, options are envisaged to make the charging faster while also saving from charging the battery. The electric and hybrid plug-in vehicle demand of power on the grid is a function of the amperage and voltage of the connection to the grid. The issues and aspects of battery charging were discussed within the literature based on these questions: 1. When and how will the vehicle owner most likely charge their batteries when it is empty? 2. Which type of vehicle technical battery infrastructure and solution will be available or implemented and its costs? 3. Which options can be used by electric utilities to remotely control the aggregated charging curve of electric and plug-in hybrid electric vehicles that will match the best with the electricity production mix? Vehicle Battery charging options Recharging the battery for electric and plug-in hybrid electric vehicles requires several pieces of equipment such as the recharging protocols (conversation between a fast charger and the vehicle), the physical recharging interface (plug and or the inductive/conductive plate), and a suitable connection to the electric grid. Each country has its own designed charger and charging infrastructure in accordance with their electric infrastructure. Electric and plug-in hybrid electric vehicles are designed to use either conductive or inductive chargers. According to Bradley and Frank (2009), inductive chargers have an advantage of pre-existing infrastructure and intrinsic safety, while conductive chargers contain advantages in efficiency (87% charging efficiency) in which they are lighter in weight, more compact, and can allow a bidirectional flow of power.
  • 47. 38 For example, the preferred charging connection in Europe is a direct conductive connection instead of an inductive connection, which is used in Japan and the United States. The analytical review of literature identified various consumers’ perceptions of the electric and hybrid plug-in vehicle batteries. The literature provides an in-depth analysis on various consumer’s perceptions and concerns of electric and plug-in hybrid electric vehicles batteries. The literature identifies a significant consumer concern called “range anxiety” which is considered as the fear of being stranded due to a drained battery. The uncertainty of the consumer with respect to the process of using Electric Vehicle Supply Equipment (EVSE) to charge hybrid plug-in vehicles is a significant barrier. Improving the performance and lowering the cost of batteries for electric and plug-in hybrid electric vehicles requires improving every part of the battery, from the underlying packaging to the chemistry. The Vehicle Technologies Office of the Department of Energy (DOE) supports the work to increase researcher’s understanding of the fundamental materials and chemistries with Lithium-ion and beyond Li-ion batteries in order to reach the goal of making electric and plug-in hybrid electric vehicles as practical and affordable as today’s gasoline powered vehicles by the year 2022. The Department of Energy (DOE, 2014) argues that researchers must integrate the advances made in exploratory battery materials and applied battery research into full battery systems for vehicles in order to develop better lithium-ion (LI-on) batteries for both electric and plug- in hybrid electric vehicles. The Department of Energy (DOE, 2014) emphasized the importance of starting with the fundamental components, which will allow researchers to improve the current
  • 48. 39 technologies and develop new advancements. The existing battery chemistries are continuously being studied on how and why the current battery materials fail using advanced characterization and modeling techniques. Based on the results, a proposal and test various decision solutions are made to alleviate the battery problems. Here is a list of areas that the literature feels will contribute to the advancement of the electric and plug-in hybrid electric vehicles batteries: 1. Advance the cell chemistries that will promise higher energy density than current ones. 2. Create Li-on anodes that are higher capacity than traditional carbon based electrodes. 3. New electrolytes are more stable than current ones. 4. New cathode materials with high capacity and voltage. 5. Inactive components in the battery that can perform multiple roles. The literature emphasizes that these improvements will help researchers develop Li-ion batteries by addressing the issues that prevent these technologies from reaching commercialization such as low power, safety issues, low efficiencies, and cycle life. Improving the separator and electrolyte combinations will result in less dendrite growth (short in the battery). Many auto makers are developing advanced material coatings, new ceramic, polymer, and hybrid structures with high ionic conductivity, high structural stability, and low electronic impedance. Mgrdichian (2013) continues to conduct studies at the Brookhaven National Laboratory by using X-rays at the National Synchrotron Light Source (NSLS) to study structure of the Li-ion battery cathode materials change during the lithium extraction, which is considered very critical in understanding and
  • 49. 40 designing improved materials. As a result of the study, the research helps scientists better understand how battery materials change as they combine or test them with various materials. Battery Charging Time Parks, Denholm, and Markel (2009) stated that there are times which are uncontrolled charging, delayed charging, off-peak charging, and continuous charging. The uncontrolled charging is considered as when commuters charge their vehicles exclusively at home in an uncontrolled manner in which the electric or hybrid plug-in vehicle begins charging as soon as the individual plugs it in and stops when the battery is fully charged. The delayed charging occurs when charging the vehicles at home in which it attempts to optimize the utilization of low-cost, off-peak energy by delaying initiation of household charging until 10 p.m. According to Parks et al. (2009) off-peak hours are generally defined as the period in which there is a low electricity demand in which many facilities offer time-of-use rates to residential customers. Off-peak charging assumes all charging that occurs at home during overnight hours which attempts to provide the most optimal, low-cost charging electricity by assuming that the vehicle charging can be controlled directly or indirectly by the local utility. Also during this charging time, it allows the utility to precisely match the vehicles charging to periods of minimum demand, allowing the use of lowest-cost electricity, while improving the overall system performance. Lastly, the continuous charging assumes that charging occurs in an uncontrolled fashion whenever the vehicle is plugged in. It also assumes that public charging stations are readily available wherever the vehicle is parked. This means that the vehicle is continuously charged whenever the
  • 50. 41 vehicle is not in motion. The electric vehicles use a battery to store the electric energy that powers the motor. Plugging the outlet into an electrical power source charges the electric vehicle. Electric vehicles are sometimes referred to as battery electric vehicles. An internal combustion engine that can run on alternative or conventional fuel and an electric motor that uses energy that is stored in the battery powers hybrid plug-in vehicles. Below is an illustration of cost for each type of charging method. Figure 4. Cost for Each Type of Charging Method. Source from www.nrel.gov The charging time for an electric or hybrid plug-in vehicle depends on how far an individual intends to drive each day. For example, the Chevy Volt plug-in vehicle is designed to travel approximately 40 miles (64.4 kilometers) per charge, which means that if a consumer’s round trip consists of being less than 40 miles, the consumer would need to charge the vehicle that evening. Lampton (2014) states that it is best to charge your
  • 51. 42 vehicle overnight because it will give the commuter the necessary time to recharge and use the electric grid during off-peak hours when kilowatts are cheaper which will not strain the local company’s electric capacity. Lampton (2014) stated that the cost to charge an electric or hybrid plug-in vehicle is estimated at $.80 for a Chevy Volt to get a full 40 mile charge using house current. On the other hand, a Toyota Prius cost even less, about $.50 per 40 mile recharge. General Motors (2014) believes that the Volt will run 100 nukes on $2.75 worth of electricity, or about $.03 per mile. These estimates varied according to how much the consumer’s local power company charges for electricity and whether a consumer charges their vehicle at peak hours or off-peak hours. In comparison to gasoline, electric and hybrid plug-in vehicle charge costs are considerably cheaper than gasoline would cost for an equivalent distance. Below is an illustration of the estimated charging time for electric and plug-in hybrid electric vehicles. MAKE MODEL 120V CORDSET HOURS TO FULLY CHARGE 240V TURBOCORD HOURS TO FULLY CHARGE 240V EVSE- RS HOURS TO FULLY CHARGE NISSAN LEAF 18 HRS 6.3 HRS 3.6 HRS FORD FOCUS EV 18 HRS 6.2 HRS 3.6 HRS FORD FUSION ENERGI PLUG-IN 7 HRS 2.5 HRS 2.5 HRS FORD C-MAX ENERGI PLUG-IN 7 HRS 2.5 HRS 2.5 HRS
  • 52. 43 FIAT 500E 23 HRS 6.3 HRS 3.6 HRS CHEVY VOLT 10 HRS 3.3 HRS 3.3 HRS CHEVY SPARK 20 HRS 7 HRS 7 HRS MITSUBISHIIMIEV 14 HRS 4.8 HRS 4.8 HRS TOYOTA RAV-4 29 HRS 10.9 HRS 5.8 HRS TOYOTA PRIUS PLUG-IN 3.1 HRS 2.1 HRS 2.1 HRS HONDA ACCORD PLUGIN 4.7 HRS 1.7 HRS 1 HR HONDA FIT EV 13.9 HRS 5.2 HRS 3 HRS SMART EV 12.2 HRS 5.3 HRS 5.3 Figure 5. Estimated Charging Time for Electric and Plug-in Hybrid Electric Vehicles Source from http://evsolutions.avinc.com/turbocord The literature concluded that as hybrid electric vehicles become widespread, the electric grid will have to be able to accommodate an additional load from hybrid electric vehicle charging. Low hybrid plug-in vehicle penetration will result in a negligible additional load in the near future. Electric and plug-in hybrid electric vehicles growth will require electrical distribution upgrades and implementation of policies like time variant rates and smart metering technologies. According to the Pew Center on Global Climate Change (2011), available technologies could enable the vehicles to charge at the lowest possible cost by using real-time electricity pricing. Current hybrid plug-in vehicles can program their electric vehicles stations to charge which will allow customers to take advantage of time-variant electricity rates which are typically offered during off- peak hours.
  • 53. 44 The Environmental Protection Agency (EPA, 2011) wrote literature on the concerns of air quality and global climate change in which electric and hybrid plug-in vehicles provide a positive impact on the environment. The Environmental Protection Agency (EPA) sets standards and policies such as the Clean Air Act. Failure to attain these standards is considered as a threat to public health and when an area does not meet these standards, it is designated a nonattainment area. The literature provided information on how gasoline powered vehicle emissions is considered as a major source for chemical precursors to the ozone. A large concentration of vehicles within a small area can lead to a high concentration of pollutants. More people are exposed to these pollutants because high population density amplifies the damages. Hybrid plug in vehicles emit fewer pollutants than gasoline powered vehicles, including smog (ozone) particulates and precursors. Although some emissions are transferred to areas around power plants due to increased electricity demand, electric vehicles do not contain direct tailpipe emissions. Vehicle Environmental Impact The literature provides additional information on environmental emission concerns and which areas that emit large chemical precursors into the ozone. Ozone is formed from volatile organic compounds (VOCs) and nitrogen oxides (NOx). The literature identified that vehicle emissions in the Northeast are considered as the largest source for the chemical precursors to ozone in which vehicles such as diesel vehicles are a major source of particulate matter. Vehicles that emit these gases in a small area lead to a higher concentration of pollutants. As population density amplifies it causes damages because more people are exposed to the pollutants.
  • 54. 45 Zhu and Nigro (2012) argued that hybrid plug-in vehicles, which include particulates and precursors (smog), directly emit fewer pollutants than gasoline-powered vehicles while electric vehicles do not have direct tailpipe emissions. The literature mainly focused on the benefits of having an electric or hybrid plug-in vehicle by concluding that although the future of these types of vehicles is uncertain, the electric generations mix in the United States is shifting away from coal given recent trends in environmental regulations and natural gas prices. The overall benefit of having an electric or a hybrid plug-in vehicle is that they are generally beneficial for air quality, as long as coal plays a lesser role in the power mix, the air quality will increase over time. NYSERDA and EPRI (2001) conducted a study on electric and hybrid vehicles that found these types of vehicles decreased ozone levels with increased benefits for high- density areas. The literature written on the consumer’s perception of electric and plug-in hybrid electric vehicles costs provided an in-depth analysis of the impact of vehicle cost to consumers. Based on the literatures analysis, there were several conclusions that emerged on the cost of electric and plug-in hybrid electric vehicles. The literature suggests that increased vehicle cost could possibly delay the sales of electric and hybrid plug-in vehicle sales in the market. The impact of the vehicles markup in the market is pronounced in the absence of an economy-wide carbon constraint. The literature also believed that electricity is considered as an important source of cost savings, especially when a climate policy is imposed due to the fuel flexibility of our generation. The Massachusetts Institute of Technology (2009) believed that electric and plug-in hybrid electric vehicles contain configurations that allow a greater reliance on electricity relative
  • 55. 46 to refined fuels and are likely to be more attractive, especially if refined oil prices continue to increase. On the other hand, the electricity advantage will basically depend on whether or not the current battery cost and performance limitations can be overcome. The literature explained their belief on the availability of related low carbon technologies such as biofuels that could possibly reduce the attractiveness of electric and plug-in hybrid electric vehicles, especially when a strict carbon constraint is composed. A large-scale adoption of these vehicles increased the demand of electricity while reducing oil consumption and potentially offsetting the economic welfare cost of pursuing a climate policy. Lastly, the literature believes that if consumers realize the maximum carbon reduction potential of grid-charged electric and plug-in hybrid electric vehicles, they will require corresponding reductions in power sector emissions. Otherwise, the conventional hybrid vehicles and efficient internal combustion engine- based vehicles are likely to achieve lower per mile emissions than electric and plug-in hybrid electric vehicles. Emissions Vehicle emissions can be divided into two categories: (1) air pollutants (e.g., smog, haze, and health problems) and (2) greenhouse gases (e.g., methane and carbon dioxide). Both categories can be evaluated on a direct and well-to-wheel basis. Direct emissions are emitted through the tailpipe, evaporation from the fuel system, and during the process of fueling the vehicle. Electric vehicles produce zero direct emissions and hybrid plug-in vehicles also produce zero tailpipe emission when they are in an all- electric mode, but they produce evaporated emissions. According to the DOE (DOE, 2013), when using an internal combustion engine, hybrid plug-in vehicles also produce
  • 56. 47 tailpipe emission. However, their direct emissions are typically lower than those of comparable gasoline-powered vehicles. Well-to-wheel emissions include all emissions that are related to fuel distribution, processing, use, and production. In comparison to gasoline, emissions are produced while they extract petroleum from the earth, by refining it, distributing it to fuel to the stations, and burning it within the vehicle. However, in the case of electricity, the majority of the power plants produce emissions, and it is additional emissions that are associated with the processing, extraction, and distribution of the primary energy source used for electricity production. Electric and plug-in hybrid electric vehicles produce lower emissions than gasoline-powered vehicles. Their vehicle emissions are typically considered as tailpipe emissions or well-to-wheel emission. Tailpipe emissions are produced through fuel combustion during the vehicles operations and the well-to-wheel emissions take into consideration the distribution, production of fuel, and the operation of the vehicle. Electric vehicles tailpipe emissions vary by the type of vehicle, hybrid power system, and the fuel in which electric vehicles generally achieve better fuel economy than comparable gasoline-powered vehicles, they produce lower emissions. According to the DOE (2011), because hybrid plug-in vehicles can operate in either an all-electric mode or with the assistance of the internal combustion engine, their emissions vary based on the operating mode of the vehicle. When the vehicle is charged by an electrical power source, the emissions calculations must take the production of electricity into account. Below is a vehicle comparison.
  • 57. 48 Emissions and Fuel Cost for a 100-Mile Trip Vehicle (Compact sedans) Greenhouse Gas Emissions (Pounds of CO2 equivalent) Total Fuel Cost (U.S. Dollars) Conventional 87 lb CO2 $13.36 Hybrid Electric 57 lb CO2 $8.78 Plug-in Hybrid Electric 62 lb CO2 $7.10 All-Electric 54 lb CO2 $3.74 Figure 6. Vehicle Comparison Source from http://www.afdc.energy.gov/vehicles/electric_emissions.php Greenhouse Gases The literature emphasizes that on an average, most categories of emissions are typically lower for electricity that is generated from power plants than from engines that run on diesel or gasoline. Emission from electricity depends solely on the efficiency on the mix of fuel sources used and the power plant. According to EPA (2013), all-electric vehicles do not produce tailpipe emissions, which means that they are considered zero- emission vehicles. However, there are various emissions associated with most U.S. electricity production. The literature concludes that if electricity is generated from renewable resources, nonpolluting, electric and plug-in hybrid electric vehicles have the potential to produce zero well-to-wheel emissions. For the nation as a whole, total greenhouse gases are expected to be reduced by 27% from projected penetration result of electric and hybrid plug-in vehicle. The key driver of this result is the overall improvement in efficiency and the electricity generation path in comparison to the conversion chain from crude oil to gasoline to the combustion process of the vehicle. The assumption of many researchers is that electric and plug-in hybrid electric vehicles would be more efficient than conventional gasoline-powered vehicles because of the regenerative braking capability that stores kinetic energy within
  • 58. 49 the battery deceleration. Also, the engine capability operates at near optimal conditions more of the time than in gasoline-powered vehicles. The literature emphasizes that on a regional basis, the greenhouse gas emission improvements can be as much as 40% which is considered as a large penetration of natural-gas plants. The improvement in greenhouse gases could possibly be slightly negative for all regions with an essentially all coal generation.
  • 59. 50 CHAPTER THREE: METHODOLOGY The methodology for this research was in the format of a survey using the structured interview method. The structured interview method consisted of 25 questions related to electric and plug-in hybrid electric vehicles in which the survey was conducted online. The questions asked were conducted on a 5-point Likert scale and standardized in which all of the respondents were asked the same questions in the same order. The target sample size was at a zero cost, while the time consisted of a three-week period. The survey utilized a random probability sample of electric and hybrid plug-in vehicle consumers. The survey was conducted among 500 adults (250 men and 250 women), 18 years and older to assess their behavior, attitudes, and needs regarding electric and plug- in hybrid electric vehicles. The margin of error is +/- 3.1 percentage points at a 95% confidence level for questions asked of all respondents and +/- 3.2 percentage points for question applied to vehicle owners. Iterative proportional fitting was used to calibrate the completed interview to the U.S. Census Bureau’s current population for gender, age, ethnicity, geographic region, gender, and education. The precision of the survey was based on the information that was obtained from electric and hybrid plug-in vehicle consumers through websites, emails, and face-to-face interviews. The desire of the survey was to reduce the possibility of a sampling error by obtaining as much of the participants sufficient evidence on what he or she understands, likes, and dislikes from a consumer perspective. The participants were reassured that the information obtained from the survey remained confidential and will be used as a learning tool for the electric and hybrid plug-in vehicle organizations.
  • 60. 51 The survey technique and setting for collecting data/interviewing was obtained online and on-site. Although various methods were used in this research, the best-suited method was via Internet (online) because social media and online technology has been the highest means of communicating in today’s society. Randomly chosen new buyers, current, and previously owned hybrid vehicle owners were provided questionnaires and were surveyed via email and mail after purchasing and upon visiting a hybrid vehicle dealership. The advanced preparation of the research was to obtain all of the new, current and previously owned hybrid vehicle consumers email addresses from the hybrid vehicle company. The researcher also had survey sheets on hand for consumers who were shopping for a hybrid vehicle at the car lot. The reason for using the structured method was to reduce errors and biases due to questioning variations while increasing the accuracy and ease of 500 participants and their answers. Implementing the structured method during the questioning is considered as a typical method when conducting a survey in which it ensures and allows the respondents to have an equal amount of opportunity to provide information that was assessed accurately. Branch (2013) indicated that structured, behavioral interviews which include a series of open-ended questions asked by the researcher are focused on his or her related experience. The mixed method approach was used in the research which included both qualitative and quantitative questioning. Seemann (2012) reported that by combining the qualitative and quantitative method in one’s market research, the electric and hybrid plug-in vehicle began with qualitative research and subsequently integrated the quantitative research. The mixed method qualitative approach analyzed the potential use
  • 61. 52 and effectiveness that identified various areas that required further research. The mixed method qualitative portion of my dissertation provided an understanding of electric and hybrid plug-in vehicle consumer behavior, attitudes, and perceptions by using closed ended questioning during the survey. Understanding the complex social process by using the qualitative method also captured the participant’s perspectives and essential aspects of phenomenon. Compared to the quantitative method, the qualitative method of my research provided a detailed analysis of the weaknesses and strengths of electric and hybrid plug-in vehicle in a seamless way. The qualitative method included qualitative data and metric information on electric and plug-in hybrid electric vehicles. The technical specification of the qualitative method only described what the automobile manufacturers would provide on a vehicles performance. Implementing quantitative research mixed method research alone when obtaining the information did not perceive the vehicles quality. If the vehicle contains performance issues, frequent breakdowns, and cannot elaborate in-depth quality measures that could identify the human interactions with electric and plug-in hybrid electric vehicles. The mixed method research method employed rigorous quantitative research by assessing the magnitude, frequency of constructs, and the rigorous qualitative research explored provided the meaning and understanding of constructs. Mixed method research also utilized multiple methods, intentionally integrating or combining methods to draw on the strength of each and framed the investigation within the theoretical and philosophical positions. Creswell (2008) argued that the mixed method research is a design for mixing, analyzing, and collecting both the quantitative and qualitative research data into a single series or study.
  • 62. 53 Selection of Subjects The selection of subjects for this research was conducted by using a population of new, previous, and current electric and hybrid plug-in vehicle owners. The sampling frame was conducted randomly via email, internet, personal (face-to-face), and at the automobile dealership which sold several types of electric and plug-in hybrid electric vehicles. The automobile dealership was geographically located in the city of Austin, Texas. They also possess over 100 models and other types of gasoline-powered vehicles. The dealership had a great reputation of having dependable and excellent running vehicles and they continuously evaluated on a regular basis. In a world filled with social media, communicating with another individual has drastically reverted to emailing. However, it was not appropriate to conduct the email or personal research method because consumers typically shop online for vehicles in today’s society. The email technique of surveying was used as a method of providing consumers with the survey. Consumers also typically read emails because they do not want to deal with the harassment of the car dealership salesman and they would rather not spend money on fuel going from dealership to dealership. The inclusion of the criteria for the selection of current, new, and previously owned electric and hybrid plug-in vehicle owners was to identify if consumers were knowledgeable, felt comfortable purchasing, or would purchase another electric or hybrid plug-in vehicle in the future. The survey used in the research was grouped by each topic and the logic of the survey was cohesive with the topic area of the research. The method also included being aware of samples that may create biases or errors within the research. The research was bridged between topic areas by asking questions that are closely related to one another in