Cueing roles of new energy vehicle manufacturers’ technical capability and reputation in influencing purchase intention in China

Abstract

Promoting new energy vehicle (NEV) is one of the main ways to save energy and reduce transport emissions, China has provided substantial subsidies for this since 2009. With the impending end of the subsidy policy ending in 2022, NEV manufacturers need to strengthen their competitiveness to continuously attract customers. Under the framework of cue utilization theory, this study takes NEV manufacturers’ technical capability as an intrinsic cue and reputation as an extrinsic cue to explore the mechanism in which two cues stimulate customers’ perceptions of travel quality and brand value, and subsequently motivate purchase intention. Based on a sample of 207 respondents from China, proposed hypotheses have been tested using Likert scale questionnaires through SPSS and AMOS. Structural equation modeling techniques were used to analyze the measurement scales and variable relationships. The results show that manufacturers’ reputation is more influential on both perceived travel quality and perceived brand value than technical capability; Technological turbulence plays a moderating role in the influence between perceived brand value and purchase intention. This article provides references for deepening related theories, and pragmatic insights for manufacturer strategic response and government policy making.