1 The Chinese-Brand Electric Vehicles in the Eyes …
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image of a country where a product is made is essential because the COO of a product
influences product evaluations and purchase decisions; consumers tend to infer the
quality of a country’s products from its national image (Heslop and Papadopoulos
1993). We formulate the following hypothesis:
H1a: Perceived product quality positively influence the purchase intention
of the CBEVs.
In general, people are aware of damage to the environment and going green is a
social norm. The electrification, or powered by electricity, will lead to a significant
amount of reduction in greenhouse gas emissions and a decreased dependence on
crude oil (Barbarossa et al. 2015). The EVs offer an advantage to reduce greenhouse gas emissions, air pollution, and vehicular noise. We establish the following
hypothesis:
H1b: Perceived benefits positively influence the purchase intention of the
CBEVs.
In general, researchers find that high perceived risk and low perceived quality of
green products are both negatively associated with consumers’ purchasing behavior
(Matsumoto et al. 2018). Morton et al. (2016) examine environmental concerns and
report how consequences of car use, self-reported responsibility and willingness to
pay to reduce emissions are associated with attitudes towards EVs (Morton et al.
2016). People who consider their cars to be in their everyday life may have negative
attitudes towards EVs (Morton et al. 2016). People still see risks and concerns about
EVs regard a limited driving distance, time required to recharge, and a limited number
of charging stations. Therefore, we have set forth the following hypothesis:
H1c: Perceived risks negatively influence the purchase intention of the
CBEVs.
1.2.2 China’s Economic Success
In 2015, the Chinese government launched “Made in China 2025”, a state-led
strategic industrial policy that seeks to make China dominant in global hightech manufacturing, including, but not limited to, electric and new energy (e.g.,
hydrogen-fuel cell) vehicles as well as artificial intelligence. For the US, the China’s
industrial policy “undermine[s] Beijing’s stated adherence… to international trade
rules, leading President Donald J. Trump to levy tariffs on Chinese goods and
block several Chinese-backed acquisitions of technology firms” (McBride 2018).
Regarding China’s trade practices, Trump has been tweeting and preaching his ‘fair’
business doctrine, particularly to his US supporters:
If the U.S. sells a car into China, there is a tax of 25%… The days of the U.S. being ripped-off
by other nations is OVER! (Sept 9, 2018)
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