THE MARKETING ENVIRONMENT

The Marketing Environment and Consumer Choice for ZEVs

The Marketing Environment and Consumer Choice for ZEVs

Introduction

The issue of Zero-emission vehicles has been creating a huge amount of concern in recent times, especially for the public-policy deciders and the marketers (Ewing & Sarigullu, 2000, 1006). The increasing pressure from the international environmental protection and preservation organizations puts a lot of stress on the marketing of these environment-friendly vehicles. However, the uncertainty surrounding the new technology and its demand in the market results in reluctance and confusion over the marketing aspects of the zero-emission cars. The coming decline in oil supplies, as well as, concerns about global warming demand vehicles that use much less gasoline or diesel than conventional vehicles.

The primary impetus for developing ZEVs is to reduce the amount of greenhouse gases and other air pollutants, emitted by gasoline or petroleum-based diesel-powered vehicles that currently meet much of the world's transportation needs (Premkumar & Roberts, 1999, 467). 

Development and promotion of ZEVs is named as a means to achieve one of four priority goals (reducing pollution, noise, and greenhouse gas production) in the 2009 Amsterdam Declaration of the Transport Health and Environment Pan-European Programme of the World Health Organization.

Background

Carbon dioxide (CO2) emissions from automobiles and light trucks are a major contributor to climate change, particularly in the United States and other industrialized countries. In producing different vehicles for different markets, automobile manufacturing companies vary substantially in the amount of carbon emissions that come from their products. Some auto companies rely heavily for sales and profits for vehicles that emit relatively high amounts of CO2, while others derive the bulk of their profits from vehicles that are less carbon-intensive (PRR, 2010, 10).

These vehicles, by having a larger effectiveness ranking for fossil fuel utilization, have a smaller grade of emission of greenhouse gases and can thus slow the rate of global weather change. Second, these vehicles are glimpsed as being beneficial by decreasing dependence on fossil fuel utilization, with the added geopolitical advantage of decreasing dependence on imported fuels.

Fossil fuels are one of the large-scale determinants of contamination on Earth. Each car constructed and journeying on the streets assists to universal warning. The air we respire carries harmful discharges from gas-powered cars and trucks. With the zero-emission vehicle, those emissions are substantially decreased which in turn entails less pollution. This is because of the fuel effectiveness of these cars, which entails a reduction in the gas burnout.

Although the ultimate goal may be zero emissions, governments recognize that intermediate steps that gradually reduce pollution may be necessary. Many different technologies help to reduce vehicle-related pollution.

The two most common types of ZEV are the Electric cars and the Hybrid cars. Electric cars that are also referred to as “battery electric vehicles” use battery packs (Caulfield et.al, 2010, A1). On the other hand, Hybrid electric vehicles combine a conventional fuel system such as gasoline or diesel with a rechargeable energy storage system (battery). They are thus not ZEVs but emit less pollution, as they burn less gasoline than a conventional ...