When a new product enters the market it is likely to follow the well establish diffusion curve whereby initial demand is low but increases quickly till the market reaches maturity and eventually decline. The role that early adopters have in the fortunes of any new product introduction cannot be underestimated. These trend setters and opinion leaders are the ones to get the first practical experience with a product and the results of these experiences will be related to friends, family, colleagues and the wider public by both word of mouth and other forms of mass media. With the development of the internet early adopters can now spread their reviews across the entire world with blogs and video reviews becoming ever more common.
With these points in mind, making sure early adopters are well looked after is a key role for any firm introducing a new product. Actively trying to identify early adopters will be a critical component of pre introduction market research. This situation is no different in the case of LEVs and automotive manufactures should already be sourcing information on this important market segment. One of the crucial questions that should form the basis of this market research is what do we expect these early adopters to “look like”? In the following article we set out our views on the socioeconomic characteristics and demographics of potential early adopters in this market.
Age: This will be a somewhat broad characteristic in that we hypothesize that older people are less likely to be attracted to new technology, are less inclined to change their travel behaviour and also that younger people in general are more concerned about climate change. From these three positions we can estimate that a LEV early adopter is likely to be young to middle aged.
Income: Initial LEVs are likely to have an associated price premium due to their use of advanced technology. This will decrease over time as technology develops and the industry expands thus enjoying greater economies of scale however early adopters will be faced with this premium. With this in mind it is likely that LEV early adopters will have an above average level of personal income and also allocate a significant quantity of income to purchasing new vehicles.
Education: Individuals with high levels of education are better suited to easily understanding the implications of owning a LEV and determining how a LEV will fit in with their mobility requirements. More educated individuals in general are more concerned about climate change, use a greater amount of cognitive effort to make purchasing decisions and spend more time considering a large quantity of options. For this we can deduce that LEV early adopters are likely to have a high degree of education.
Location: LEVs are likely to function best in urban environments that have access to a more developed and extensive infrastructure system such as hydrogen refuel points and quick charge stations. Hybrid vehicles will also be more effective in urban environments where their energy recovery systems generate more electricity as a result of a greater quantity of time under braking. LEV incentives are also likely to be based in urban locations such as preferential access to certain areas, free parking and free charging facilities. From these statements we can hypothesize that LEV early adopters are more likely to be based in urban areas.
Interests: LEVs are likely to appeal to individuals that have either of the following characteristics. Firstly, individuals who are concerning about climate change, the environment and the impact they are having a more likely to consider a LEV. This concern is likely to be moderate as those individuals who have large concerns are more likely to restrict their vehicle use or give it up completely. Secondly, LEVs will appeal to individuals that have an interest in new technologies as these vehicles will be using the most advanced powertrains on the market. This interest can stem from both a technical enjoyment and also from wanting be to perceived as a technological advanced individual. Thirdly, individuals that travel large distances by personal vehicle in either their professional or personal lives are more likely to be attracted to the lower running costs of LEVs.
All of the characteristics outlined above paint a stereotypical picture of the most likely early adopters in the LEV market. It would be surprising if an individual who buys an LEV in the next few years does not possess at least one of these personal attributes. Knowing what the likely composition of the initial target market for LEVs looks like will allow companies to develop tailored marketing strategies aimed at giving these customers all the information they require to make an informed decision. By making the purchase environment as simple as possible for potential consumers you increase the likelihood of product adoption so making sure information and resources are in the right place at the right time for the right people will be a critical strategy for any automotive firms marketing LEVs.
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