Analysis of consumer preferences for new electric vehicle technologies: Can future vehicle steering system steer consumer's purchase intention?

Abstract

As the mainstream of vehicle industry is moving from internal combustion engine vehicles to electric vehicles (EVs), a multi-perspective analysis of consumer preference for the new EV technology is required. Therefore, this study proposes a new framework for consumer preference analysis—a two-stage choice experiment—and conducts an empirical analysis of the four-wheel independent steering system (4-WISS). In the first stage, we analyzed consumer preference for the availability of 4-WISS in EVs. In the second stage, we investigated consumer preference for the specific technology of 4-WISS in EVs. Stated preference data were collected through a choice experiment survey, and a mixed logit model was used to quantitatively analyze consumer preference and willingness-to-pay. Results show that consumers are willing to pay KRW 19,045,098.6 (USD 13,513.9) to use 4-WISS in high-end EVs. Furthermore, consumers who are female, older, and have more knowledge of autonomous vehicles prefer 4-WISS more. We found that consumers prefer the parallel movement among 4-WISS modes, the touch display for selecting 4-WISS, the steering wheel for operating 4-WISS mode, and dashboard for displaying information. We finally discuss the new business model in the vehicle industry and suggest automakers to establish an effective strategy for the initial market for EVs with 4-WISS.