This book uses stories and case studies from several industries to show how companies can rethink their customers, products and services, marketing, competition, and even their culture. The goal is a positive customer relationship that results in revenue growth, product innovation, and employee engagement.
There are a number of impediments to consumer adoption of alternative fuel vehicles (AFVs), including regulatory barriers, resources, infrastructure and vehicle characteristics themselves. These impediments also impact on other stakeholders, such as government, producers (i.e. corporations), suppliers (collaborators), competition (i.e. alternative products) and activist groups. The inter‐relationships amongst all stakeholders are complex, as one group may initiate actions that serve as impediments for others. Developing systems‐based sustainable alternatives to traditional, environmentally‐harmful automobiles requires the network of relationships between stakeholders and impediments to be considered. This paper looks at the various impediments as well as how they can affect various stakeholders. It then posits a broad based integrative approach to provide the most favourable environment for consumers to consider AFVs.
This work was supported by the Ministry of Economy and Competitiveness of the Government of Spain ( ECO2017-86402-C2-1-R ) and the Bank of Santander through the Campus of International Excellence within the framework of economic mobility grants of excellence for teachers and researchers of the University of Oviedo.
Consequences of consuming petroleum in transportation—e.g., air pollution, global warming, energy insecurity—have stimulated interest in alternative automotive fuels and in vehicles that can use multiple fuels and combinations of fuels. Consumer behavior in choosing motor fuels for flexible‐ or dual‐fuel vehicles will likely be a key factor in creating and maintaining stable markets for new fuels. This paper explores the implications of recent studies on the sensitivity of choice of gasoline grade to price. It analyzes natural gas vehicle owners' refueling behavior, based on a survey of natural gas vehicles in Canada. The paper uses statistical models to estimate the importance of performance, range, refueling convenience, and other factors in the fuel choice decision. Choice of gasoline grade is highly sensitive to fuel prices. The cost advantage of natural gas also is of paramount importance for natural gas users. However, refueling convenience is essential for overall satisfaction and is a major factor in the frequency of natural gas use. Alternative fuels not only must be cost competitive with gasoline but initially will require a cost advantage so as to overcome range limitations and refueling inconvenience.
Much prior research into consumer automotive and fuel purchase behaviors and fuel economy has been shaped by the normative assumptions of economics. Among these assumptions are that consumers should pay attention to costs of fuel and that they are aware of their options to save on fuel over long periods of time, i.e., the life of a vehicle or at least their period of ownership. For example, researchers have analyzed in some depth consumer choices for more fuel economical vehicles in the 1980s and more recently consumer choices in Europe for more expensive diesel vehicles with lower fuel costs than their gasoline competitors. Some of this research investigates whether automobile buyers have varying future values for money invested today in higher fuel economy, i.e., consumers' discount rates. More recently, in the context of the political battle over new CAFE standards, both automobile manufacturers and energy researchers have asked consumers questions about their willingness to pay more for higher fuel economy and consumers' payback periods for these investments. Both payback periods and net present value calculations require good knowledge of one's own vehicle and annual fuel expenses, forecasts of future prices, and a sophisticated series of calculations. The new arena of debate and research on consumer response to better fuel economy technology is CO2 reduction strategies generally, and regulations to reduce CO2 emissions from transportation in California specifically.The research we report here is designed to help researchers and policy makers to ground future work in the reality of how consumers think and behave relative to fuel economy and efficiency, both on a daily basis and when they purchase motor vehicles. We recruited what we call an "illustrative" sample; fifty-seven households from ten "lifestyle sectors"—for example hybrid vehicle buyers, financial analysts, and off-road vehicle enthusiasts—that we guessed might have differing information and habits around the issue of fuel economy. We conducted a semi-structured, 2-hour interview, which included these four parts: household vehicle histories, purchase narratives, prospecting of future choices, and knowledge and daily behavior around fuel use and purchases.Our strongest finding was that for the most part, our households do not pay much attention to fuel cost over time or in their household budgets, unless they are severely constrained economically. Consumers do pay attention to the price of a tank of fuel and the unit price of fuel on the given day they buy fuel. But this "knowledge" is ephemeral; it is rapidly forgotten over the next few days. Fuel consumption instrumentation on most vehicles is limited and drivers seldom pay attention; the exception is hybrid vehicles and their drivers.One effect of limited knowledge is that when consumers buy a vehicle, they do not have the basic building blocks of knowledge to make an economically rational decision. When offered a choice to pay more for better fuel economy, most households were unable to estimate potential savings, particularly over periods of time greater than one month. In the absence of such calculations, many households were overly optimistic about potential fuel savings, wanting and thinking they could recover an investment of several thousand dollars in a couple of years.Of importance to regulators, we find that good fuel economy is widely considered an attribute of cheap cars; many of our households expressed greater regard for fuel efficiency, a term free from a cheap image and more closely associated to ideas of resource conservation, advanced engineering, and high technology and quality.In the last part of the report we identify five styles of decision making relative to fuel economy, including a more detailed discussion of the decision-making in a small sample of eight hybrid vehicle buyers.In closing, and as this is the first stage in a longer research project, we offer some preliminary conclusions and two hypotheses to steer more quantitative research. Our findings suggest that current strategies of drawing attention to annual fuel cost savings could disappoint buyers, and instead education efforts might focus on fuel efficiency and technical advances. Our interviewees ignore fuel economy for additional reasons; it is only one feature of an expensive, complex good which has many implications for lifestyle and image goals. Our research suggests that consumers might value fuel economy more highly if it were more like shiny paint or a bold body style—an attribute with some emotional punch.
Much prior research into consumer automotive and fuel purchase behaviors and fuel economy has been shaped by the normative assumptions of economics. Among these assumptions are that consumers should pay attention to costs of fuel and that they are aware of their options to save on fuel over long periods of time, i.e., the life of a vehicle or at least their period of ownership. For example, researchers have analyzed in some depth consumer choices for more fuel economical vehicles in the 1980s and more recently consumer choices in Europe for more expensive diesel vehicles with lower fuel costs than their gasoline competitors. Some of this research investigates whether automobile buyers have varying future values for money invested today in higher fuel economy, i.e., consumers' discount rates. More recently, in the context of the political battle over new CAFE standards, both automobile manufacturers and energy researchers have asked consumers questions about their willingness to pay more for higher fuel economy and consumers' payback periods for these investments. Both payback periods and net present value calculations require good knowledge of one's own vehicle and annual fuel expenses, forecasts of future prices, and a sophisticated series of calculations. The new arena of debate and research on consumer response to better fuel economy technology is CO2 reduction strategies generally, and regulations to reduce CO2 emissions from transportation in California specifically. The research we report here is designed to help researchers and policy makers to ground future work in the reality of how consumers think and behave relative to fuel economy and efficiency, both on a daily basis and when they purchase motor vehicles. We recruited what we call an "illustrative" sample; fifty-seven households from ten "lifestyle sectors"—for example hybrid vehicle buyers, financial analysts, and off-road vehicle enthusiasts—that we guessed might have differing information and habits around the issue of fuel economy. We conducted a semi-structured, 2-hour interview, which included these four parts: household vehicle histories, purchase narratives, prospecting of future choices, and knowledge and daily behavior around fuel use and purchases. Our strongest finding was that for the most part, our households do not pay much attention to fuel cost over time or in their household budgets, unless they are severely constrained economically. Consumers do pay attention to the price of a tank of fuel and the unit price of fuel on the given day they buy fuel. But this "knowledge" is ephemeral; it is rapidly forgotten over the next few days. Fuel consumption instrumentation on most vehicles is limited and drivers seldom pay attention; the exception is hybrid vehicles and their drivers. One effect of limited knowledge is that when consumers buy a vehicle, they do not have the basic building blocks of knowledge to make an economically rational decision. When offered a choice to pay more for better fuel economy, most households were unable to estimate potential savings, particularly over periods of time greater than one month. In the absence of such calculations, many households were overly optimistic about potential fuel savings, wanting and thinking they could recover an investment of several thousand dollars in a couple of years. Of importance to regulators, we find that good fuel economy is widely considered an attribute of cheap cars; many of our households expressed greater regard for fuel efficiency, a term free from a cheap image and more closely associated to ideas of resource conservation, advanced engineering, and high technology and quality. In the last part of the report we identify five styles of decision making relative to fuel economy, including a more detailed discussion of the decision-making in a small sample of eight hybrid vehicle buyers. In closing, and as this is the first stage in a longer research project, we offer some preliminary conclusions and two hypotheses to steer more quantitative research. Our findings suggest that current strategies of drawing attention to annual fuel cost savings could disappoint buyers, and instead education efforts might focus on fuel efficiency and technical advances. Our interviewees ignore fuel economy for additional reasons; it is only one feature of an expensive, complex good which has many implications for lifestyle and image goals. Our research suggests that consumers might value fuel economy more highly if it were more like shiny paint or a bold body style—an attribute with some emotional punch.