Using the consumer decision making process you learned in class (problem recognition, information search, alternative evaluation, selection, and post purchase processes), explain how the Nissan Leaf campaign manager could use the decision making model to analyse and understand to influence consumers towards Nissans favour.

case study

Humanity is currently facing the challenge of the Great Transformation, a transition from the current fossil fuel-based economy towards a sustainable society within planetary boundaries. One highly important aspect of this transformation is the reduction of CO2 emissions to mitigate climate change, which requires major changes in many areas. One of the most important of these areas is the transport sector, which is responsible for 24% of global CO2 emissions. Energy demand for mobility is rapidly growing, creating a need for immediate energy-saving actions on all possible levels. This encompasses both an overall reduction in individual motorised transport consumption as well as increased energy efficiency and consumption of renewable energies in motorised vehicles that are still being used. One important contribution to the latter is a shift from combustion engine cars to alternative-fuel cars. A promising technology in this regard is the electric car, defined as a car that is solely powered by a battery. Electric cars can contribute to mitigating CO2 emissions from car travel especially when production and usage are powered with renewable energies. However, in most countries, electric car adoption rates are still low compared to combustion engine cars. One such car is the Nissan LEAF. Carbon Tax was introduced in the same year the original Nissan LEAF battery-electric vehicle was launched in Australia. Seven years on and the second- generation LEAF arrived in 2019; cleaner, greener and palpably improved. The price of the new Nissan LEAF is at $49,990 before on-road costs. A Toyota Corolla hybrid can be acquired for $25,870, a top-spec bells-and-whistles 2.5-litre Mazda3 for $36,990 and an all-wheel drive Mercedes-Benz A-Class for $49,500 (all plus on-roads of course). So the LEAF doesnt have price equivalency against Nissans usual competitors when they are powered by internal combustion engines (ICE). Instead, it is up there with the premium brands. In this paper, we focus on households as an important target group consuming the vast majority of passenger cars. The public debate on the reasons for low adoption rates has strongly emphasised the role of financial and technological constraints. For households, the adoption of an electric car involves a higher purchase price than a combustion engine car, as well as the need to adapt to new characteristics of an innovative technological system (e.g., lower driving range, unfamiliarity with the charging system). From a psychological point of view, assuming that these aspects are crucial to understanding low electric car diffusion rates implies emphasising the role of rationality in energy-related consumer decisions. Household members might perceive certain benefits or disadvantages (e.g., for their household, themselves, or both) and weigh these aspects against one another in order to identify the most suitable product from a rational perspective. For example, we can assume that consumers are concerned about having a solid financial situation and a lifestyle that suits their personal comfort needs. Some rational motives underlying energy-related consumer behaviour (e.g., the desire to save money) may support the uptake of energy-saving cars, while others (e.g., desire for comfort) may be in conflict with such actions. Empirical research on predictors of energy-related consumer decisions often focuses on the perception of economic and technical features of products and has provided strong evidence that rational motives play an important role in decision-making processes. While households might certainly have rational motives for engaging in energy-saving actions, consumer psychology also highlights the role of norm-directed motives. Norms can be defined as shared expectations of appropriate behaviour and are commonly differentiated into a moral and a social dimension. The moral dimension, also referred to as the personal norm, reflects an individual's own rules or expectations. The social dimension, also referred to as social norms, involves (perceived) group rules or expectations. Regarding the moral dimension, climate change has fatal consequences for people who live in less privileged conditions, future generations, long-

RMIT MKTG 1050 Take-Home Final Assessment Sem 1, 2023 (MELB) Page | 5 existing ecosystems and endangered species. Household members might feel morally obligated to contribute to mitigating climate change in order to reduce these consequences. Thus, moral motives should generally support the uptake of energy-saving investment objects. In some cases, moral motives might suggest the same behaviour as rational motives, such as when energy-saving behaviour also saves money. In other cases, moral motives might contradict rational motives. For example, the total cost of ownership for an electric car was higher than that of a combustion engine car for the average household. Furthermore, the two kinds of motives are not necessarily mutually exclusive when it comes to mitigating climate change for example, safeguarding natural resources, preventing future extreme weather conditions, or preventing future economic crises certainly imply strong rational incentives for a household to engage in energy-saving behaviour. Regarding the social dimension, research has provided evidence for two main roles of social norms: First, they provide orientation, as they communicate information about the social standard of behaviour (informational role). Second, they can lead to social pressure, in which individuals think about others reactions to their own behaviour. Thus, social norms may either support or be in conflict with the uptake of energy-saving investment objects, depending on characteristics of the individual household, its social surroundings, and the diffusion of the investment object. Empirical studies of energy-related consumer decisions less often focus on investigating norm- directed motives. Moreover, some findings are ambiguous and more research is needed to further clarify the importance of norm-directed motives in different decision domains. However, enough studies have found significant effects to conclude that these motives have at least some relevance. In sum, prior research suggests the relevance of both rational and norm-directed motives in the context of energy-related investment decisions in households. The general trends and findings described above are also reflected in the specific decision context of electric car adoption. A huge body of research focuses on rational adoption motives, emphasising the relevance of individuals' financial and technological evaluations of electric cars. Much fewer research has explored the role of norm-directed motives in more depth. These studies indicate at least some relevance of moral and social motives in this decision context as well. However, it is unclear to what degree different types of motives influence electric car adoption and how these motives interact, i.e. whether or not these motives mutually reinforce or interfere with one another. In consumer psychology, there is a longstanding controversy as to whether moral motives are undermined by other motives (such as rational motives) in the context of behaviours involving high financial costs and/or a high amount of effort. In the context of electric car adoption, some studies that investigates different motives for car use explore these questions in more depth. These studies indicate that the influence of norm-directed motives on adoption intention is relatively equal to that of rational motives and that the two kinds of motives are highly correlated. However, more research is needed to confirm these findings and further clarify the interplay between different kinds of motives. Action models are a particularly suitable approach for systematically investigating the relevance and interplay of motives underlying behavior. They have at least two important advantages: First, from a theoretical perspective, they allow for comprehensive investigations, enabling researchers to compare the relevance of different types of predictors while simultaneously investigating complex interactions between them. Second, from a practical perspective, insights from action models are very helpful for developing suitable political support schemes. Integrated action

RMIT MKTG 1050 Take-Home Final Assessment Sem 1, 2023 (MELB) Page | 6 models with several types of motives have proven especially useful in terms of comprehensive investigation. In a recent example, applied three action models from different research traditions to explain the adoption of solar photovoltaic systems. They could demonstrate that both rational and norm-directed motives play an important role and that an integrative model with both rational and norm-related predictors explained the most variance. However, action models have rarely been applied in research on electric car adoption as well as research on energy-related investment decisions in general