10/07/2024
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Keywords: Electric vehicles; Gen Z generation; Transportation; Environmental pollution; Sustainable economic development
According to the Pollution Control Department (PCD) and South Centre of Environmental Monitoring (SCEM), up to 70% of environmental pollution emissions in major urban areas originate from transportation, particularly in large cities such as Hanoi and Ho Chi Minh City, where the rapid urbanization and increasing number of vehicles create significant pressure on the region's environmental issues. In the context of sustainable development, electric vehicles are viewed as the optimal solution to reduce pollution. Therefore, a group of research students from the University of Economics Ho Chi Minh City (UEH) has investigated the factors influencing the intention to use electric vehicles among Generation Z in Ho Chi Minh City, aiming to propose solutions to promote development and to provide implications for businesses to devise suitable business models for the electric vehicle market, contributing to environmental protection and sustainable economic development.
This research on the intention to use electric vehicles among Generation Z in Ho Chi Minh City is essential in the current environmental context. Ho Chi Minh City is facing the serious risk of air pollution, primarily because of the emissions from traditional vehicles. The transition to electric vehicle usage could significantly reduce harmful emissions, contributing to environmental protection and improving air quality.
The target of this research is Generation Z, a group of young individuals with a high awareness of environmental issues and who will be the primary users of transportation in the future. Understanding the factors influencing their intention to use electric vehicles will help policymakers, businesses, and the community develop effective strategies to encourage the use of green transportation, supporting sustainable development goals and environmental protection.
The research topic aims to address the question: "Which factors will affect the intention to use electric vehicles among Generation Z in Ho Chi Minh City?" Specifically, the study will identify the criteria affecting the intention to use electric vehicles among Generation Z (Gen Z) including: (1) Environmental protection awareness; (2) Electric vehicles awareness; (3) Consumer attitudes; (4) Perceived behavioral control; (5) Promotions; (6) Impact from the increase in raw material prices: gasoline, oil, etc.; (7) Attraction from other mediums; (8) Warranty and repair services.
Through the surveyed subjects of Gen Z living, studying, and working in Ho Chi Minh City (a potential consumer group for electric vehicle products because of their exposure to advanced technology and high awareness of environmental protection and sustainable development), the primary data was provided to the research team. The team conducted an analysis and evaluation of the influence of each factor on the intention to use electric vehicles through descriptive statistics and measurement scale testing using Cronbach’s Alpha coefficient and Exploratory Factor Analysis (EFA).
Through the results of the EFA analysis, the research team identified five groups of factors: (1) Environmental protection awareness; (2) Electric vehicles awareness; (3) Consumer attitudes; (4) Perceived behavioral control; (5) Promotions; (6) Impact from the increase in raw material prices: gasoline, oil, etc.; (7) Attraction from other mediums; (8) Warranty and repair services. After applying the exploratory factor analysis method, it was concluded that attractiveness from other vehicles and environmental protection awareness are significant.
Based on the analysis results, it can be indicated that for a valuable and potential consumer generation like Gen Z, their consumer attitudes towards products, particularly electric vehicles, are increasingly elevated. Furthermore, demands for incentives and promotions that help reduce the cost of using electric vehicles are among the major factors influencing their intention to use the product. From the results of linear regression analysis, it was found that all three factors: "Consumer attitudes", "Impact from the increase in raw material prices: gasoline, oil, etc.", and "Warranty and repair services" have a positive impact on Gen Z's intention to use electric vehicles.
Through research, the authors propose solutions to enhance the intention to consume and to use electric vehicles among Gen Z as follows:
Firstly, increasing public awareness of the attributes of electric vehicles to help consumers make the best decisions during their experience with clean fuel transportation.
Secondly, boosting the intention to use electric vehicles through factors that ensure a high level of satisfaction: creating many trendy product designs, continually updating and improving advanced technologies by learning from countries that have succeeded in the electric vehicle sector. Implement pricing strategies that align with personal finances and integrate environmentally friendly features that fit a green, clean, and beautiful lifestyle.
Thirdly, enhancing the infrastructure for electric vehicles: Currently, Vietnam has only approximately 200 charging stations for electric vehicles from Vinfast, whereas there are almost no other infrastructure elements to promote the development of electric vehicles in Vietnam. For this reason, it is essential to complete the technical standards for charging stations, to optimize charging stations by utilizing clean fuel and cleaning electricity to minimize environmental pollution.
Fourthly, the government needs to implement incentive policies to support manufacturers and consumers in purchasing electric vehicles, as well as offer incentives on import taxes, environmental taxes and so on. Additionally, the current cost of owning an electric vehicle is too high (according to a survey in Europe, the average selling price of an electric car is nearly doubles that of a gasoline/diesel car of the same size); companies need to develop appropriate pricing strategies and specific promotional policies to stimulate the demand for electric vehicles at competitive prices.
Lastly, improving warranty and repair services: Companies need clear warranty and repair policies, ensuring long-term benefits for customers, and upgrading technical equipment technology. Expand the scope and form of warranty services. Provide detailed, easy-to-understand instructions regarding warranty information and vehicle operation to avoid unnecessary damages that fall outside of the warranty coverage, minimizing costs during the product usage process.
The research paper has indirectly contributed to SDG 7 - Affordable and Clean Energy, SDG 12 - Responsible Consumption and Production, and SDG 13 - Climate Action. View the entire article titled “The Factors Affect Generation Z's Intention for Electric Vehicles Use in Ho Chi Minh City” HERE.
Authors: Le Kieu Linh Nhu, Truong Hoang Long Vu, Nguyen Thi Quynh Tram, Pham Thuy Huynh - University of Economics Ho Chi Minh City (UEH).
This article is part of the Green Research Community series with the message “Research Contribution for UEH Living Lab Green Campus.” UEH respectfully invites the community to look forward to the next Green Research Community newsletter #8.
*In order to create maximum conditions for the development of the “UEH Green Research Community,” community members will participate in a scientific research methodology class related to the topics of Living Lab and Green Campus. Furthermore, when the product meets the standards, the research group will receive a Certificate from the UEH Sustainable University Project Board and financial support for a satisfactory project.
*Additional Information:
SDG 7 - Affordable and Clean Energy: Goal 7 aims to ensure access to affordable and clean energy, which is key to the development of agriculture, business, communication, education, health, and transportation. The lack of access to energy hampers economic and human development. By 2030, universal access to modern, reliable, and affordable energy services must be ensured, significantly increasing the share of renewable energy in the global energy mix. Additionally, international cooperation must be strengthened to facilitate access to clean energy research and technology, expand infrastructure, and upgrade technology to provide modern and sustainable energy services for all countries.
SDG 12 - Responsible Consumption and Production: Ensuring sustainable consumption and production patterns is key to maintaining the livelihoods of present and future generations. Implementing the 10-Year Framework of Programmes on Sustainable Consumption and Production requires collective action from all countries, with developed nations leading, taking into account the development and capacities of developing countries. By 2030, sustainable management and efficient use of natural resources must be achieved, food waste per capita at the retail and consumer levels must be halved, and sound environmental management of chemicals and all waste must be attained. Additionally, support must be provided to developing countries to enhance scientific and technological capacities towards more sustainable production and consumption models, as well as to build and implement monitoring tools for the impacts of sustainable development on sustainable tourism.
SDG 13 - Climate Action: Implement measures to combat climate change and its effects by strengthening resilience and adaptation to climate-related hazards and disasters in all countries, integrating climate change measures into national policies, strategies, and planning. Improve education, raise awareness, and enhance human and institutional capacities for climate change mitigation, adaptation, impact reduction, and early warning. Implement commitments by developed nations to participate in the United Nations Framework Convention on Climate Change and promote mechanisms to enhance planning and effective management related to climate change in the least developed countries.
Source, Images: Authors, UEH Youth Union - Student Association, Department of Communications and Partnerships.
