Factors Leading to Decision Making to Buy Electric Car - An Empirical Study in Kingdom of Saudi Arabia

Abstract

This research work explores the customers’ decision making process in purchasing electric cars in Kingdom of Saudi Arabia (KSA). This consumer behavioural research has acquired a market summary which definitely enlightens the enrichment of materialising the strategy for the business of electric car products in KSA. To venture this research work in KSA, cities like Jeddah, Dammam and Al-Quasim have been chosen where a total of four hundred and fifty customers have participated to answer the questionnaires which are constructed on a basis of five point Likert Scale. A random probability sampling tool has been used to find out the level of customers’ thoughts and opinions about energy efficient, environmental friendly, performance benefit, reduction of energy dependence and customers buying decision regarding the electric car products available in KSA. It is found through the descriptive analysis where all the variables have high mean scores which are more than four. From this research results with the aid of Pearson Correlation tests, it is found that all the relationships among energy efficient, environmental friendly, performance benefit, reduction of energy dependence are found to be positive and significant with the customers’ decision making process in purchasing electric car products as all the p values obtained significance at the 0.01 level (99% confidence level) for 2-tailed. The results suggest that the customers pay much importance on the mentioned variables in their practical life reflecting the electric car products’ possible characteristics for the spontaneous support from the customers in future. At last the multiple regression analysis suggests that all the variables such as energy efficient, environmental friendly, performance benefit, reduction of energy dependence are significant with the customers’ buying decision regarding electric cars in KSA. This descriptive type of research, the findings, and the most enriched recommendations have depicted a vivid scenario about electric car products available in the territory of KSA.