European Online Journal of Natural and Social Sciences 2019; www.european-science.

com
Vol.8, No 3 pp. 483-494
ISSN 1805-3602

The Influence of Personal Innovativeness and Price Value on Intention to Use of

Electric Vehicles in Malaysia
Hamed Khazaei
Malaysia–Japan International Institute of Technology, University Technology Malaysia
E-mail: khamed4@live.utm.my

Received for publication: 10 June 2019.

Accepted for publication: 02 August 2019.

Abstract
Battery electric vehicles (BEVs) must deal with several concerns, such as battery range, in-
frastructures, maintenance and spare parts. In other hand, BEVs like any other new technology, have
a very small market share at their initial stage. Moreover, with rising attention in global warming,
and concerns of possible increase in gas and oil prices in future, several car manufacturers have
started producing electric and hybrid cars. These aspects have also attracted people to have intention
of using electric cars. In countries having high contribution of renewable energies in electricity pro-
duction, electric cars have direct effect on healthier environment. The aim of this paper is to study
the impact of social influence, facilitation condition, Price value, performance expectancy, and per-
sonal innovativeness on intention to use of electric vehicles in Malaysia. Respondents of study
were lecturers and postgraduate students in University Technology Malaysia and employees in five
companies in Kuala Lumpur. The results of this study evidenced that social influence, price value,
performance expectancy, and personal innovativeness have positive influence on intention to pur-
chase of a full electric vehicle. However, the results showed negative influence of facilitating con-
dition on intention to use of BEVs.
Keywords: Electric Vehicles; Green Purchase; Green Technologies; Technology Acceptance
Model.

Introduction
While full electric vehicles have been available since long time ago nevertheless they have
not been popular. In many countries, electric vehicles are still in initial stage. Car manufacturers are
recently producing more and more electric vehicles with more interesting designs. By developing
technology, enhancing batteries performances and emerging of environmental worries, electric ve-
hicles are going to be more acceptable in transportation markets. Tesla started mass production of
full electric vehicles and produced 24,882 vehicles in Q4, resulting in total 2016 production of
83,922 vehicles. This was an increase of 64% from 2015. Tesla global sales passed the 200,000 unit
milestone in March 2017 making the carmaker the second largest global pure electric car manufac-
turer after the Renault–Nissan Alliance (Kane, 2017).
Customer acceptance is a key to the market success of any emerging product and full electric
vehicles are not exemption (Egbue et al, 2012). In any product development, or in early stage of
product life cycle, the most important consideration is customer needs (Terninko, J., 2018). This is
recognized that buyers have complex desires that can be determined by the buying process (Elliott,
A. C. and Wright, I. C., 1999).
Recent increase in greenhouse gasses, made a transformed attention in green products. Cur-
rently, automobile exhibitions show more and newer electric vehicles; new models are being pro-
duced and being more popular (like Nissan Leaf and Tesla model S, Tesla model 3). States policies

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 Hamed Khazaei

are also shifted to support electric cars usage. Governments offer tax inducements or subsidies for
EV buyers in several countries. Increased attention of policy makers and manufacturers toward elec-
tric cars is understandable; however, extensive acceptance of electric vehicles is projected to en-
counter hard-hitting challenges. Charging time, limited or uncertain battery range, lack of enough
charging stations, high price of vehicle and spare parts, might be hinders for electric vehicle wide-
spread acceptance. Furthermore, upgrading home facilities and increasing charging stations, may
also impose extra issues on electricity network system (Bilotkach, V., & Mills, M., 2012). Econo-
mists and market surveyors have been attentive in recognizing the factors that affect the buyer’s in-
tention to predict market share, and for that ason, they have introduced numerous models
(Marangunić, N., & Granić, A., 2015). Because the introduction of electric vehicles is relatively new
in Malaysia, this study is going to determine the factors that are influencing intention to use of elec-
tric vehicles in Malaysia.

Literature Review
With the purpose of developing conceptual framework of the study and studying the relevant
variables, this section comprises literature review focusing the study variables:
Social Influence
Social influence represents the degree of what a person believes that other people who their
idea are important for him or her, think the same way about a new technology (Miao, R. et al.,
2016). The construct called subjective norm, in the Theory of Reasoned Action model. In extension
of technology acceptance model or TAM2 and unified theory of acceptance and use of technology,
social influence characterized as subjective norm, or social factors in some other models. Thompson
et al. (1991) used the term social norms in defining their theory and recognized its correspondence
to subjective norm within Theory of Reasoned Action model. Although they have dissimilar tags,
each of these concepts comprises the obvious or implied concept that the person’s behavior is in-
fluencing by the way which they believe that society will view them as a result of using the technol-
ogy (Venkatesh et al., 2012). Accepting from (UTAUT 2 model) or Unified theory of acceptance
and use of technology, following hypothesis is proposed:
H1. There is a positive significant relationship between social influence and intention of use
of BEVs.
Facilitating Conditions
Facilitating condition is defined as individual’s insight about infrastructures or technical
support existed for using a technology or system (Venkatesh et al., 2012). Considering BEVs, it can
be regarded as accessibility of batteries, maintenances, charging infrastructures in home and roads,
or after sale services. This relationship adopted from extension of unified theory of acceptance and
use of technology theory (Venkatesh et al., 2012).
H2. There is a positive significant relationship between facilitating condition and intention of
use of BEVs.
Price Value
Obviously, price value is a very important for potential customers to have intention of buy-
ing an electric car. Presently electric cars are more expensive than combustion engine cars although
governments try to decrease the price difference by incentives like tax reduction and subsidies. In
the context of green products, numerous scholars found price value as one of biggest barriers for
green products. Venkatesh et al. (2012) argued that price value is a significant factor influencing
intention of using a system. Base on discussion above the third hypothesis is generated:
H3: Price value has a positive impact on intention of use of BEVs.

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Performance Expectancy
Performance expectancy states the degree that which an individual believes that using a sys-
tem or technology may support him or her to perform a job better (Venkatesh et al., 2012). This
construct represents a person’s belief that using a certain technology will be advantageous or per-
formance enhancing to him or her. Venkatesh et al. (2012) proposed performance expectancy as a
predictor of using a new technology. Base on discussion above the fourth hypothesis is generated.
H4: Performance Expectancy has a positive impact on intention of use of BEVs.
Personal Innovativeness
It is supposed that those high innovative individuals are generally more aggressive to adopt
new idea (Lu et al., 2005). Then, this individual will be easier to meet uncertainties and are more
positive about innovations (Rogers, 1983). Agarwal and Prasad (1998) well-defined personal inno-
vativeness as the readiness of a person to test new technologies. According to innovation diffusion
theory, Agarwal and Prasad (1998) again claimed a person interpretation of technology is affected
by the personal factors. They defined personal innovativeness as a kind of risk-taking tendency that
may only happens in specific group of persons and not in others. Therefore, it is important to test
this construct in electric vehicles adoption, as a new technology.
H5. Personal Innovativeness has a positive impact on intention of use of BEVs.
Intention to use
(Davis et. al., 1989), defined the intention to use a technology as a degree that a person has
considered mindful plan to perform or not to perform certain behavior in future. This determines
the customers negative or positive feelings towards using new products. The intention of potential
customers toward the use of BEV technology along with the associations with independent variables
of the research, are the key interests of this specific research.

Conceptual Framework of study

The conceptual framework of the study is shown in figure 1. It defines the variables and rela-
tionships between them based on prior theories discussed in literature review. The framework ex-
plores the links among social influence, performance expectancy, price value, social influence, and
personal innovativeness and intention to purchase electric vehicle.

Figure 1. Conceptual Framework of Study

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 Hamed Khazaei

Methodology
This study utilized quantitative method to design questionnaires, and sampling. Data col-
lected by distributing and collecting questionnaires. Purpose of this study was to examine relation-
ships between social influence, performance expectancy, price value and facilitation condition, on
intention to use of BEVs in Malaysia.
Data Collection
The primary data in this research, gathered through questionnaires distributed among post-
graduates in UTM university and employees in five companies. Questionnaires were designed ac-
cording to objective of the study. 500 questionnaires were distributed, and 323 responses obtained.
After data screening, 312 productive datasets were analyzed.
The demographic characteristics of the respondents were surveyed; principle component
analysis (PCA) and Cronbach’s alpha were used to examine the validity and reliability of the mea-
surement scale. Then normality test, descriptive analysis, Pearson correlation analysis and lastly
multiple regression analysis have been done in this study.

Table 1. Gender frequency

Gender Frequency Percent
Female 90 28.8
Male 222 71.2
Total 312 100.0

Measurements
The Items for personal innovativeness adapted from Rogers (2003) and the items for other
variables adapted from Venkatesh et al. (2012). Respondents were asked to indicate their agreement
or disagreement with several statements on a seven-point Likert scale with 1=strongly disagree to
7=strongly agree.
Central Tendencies Analysis for Constructs
The descriptive analysis on mean score of the collected data is presented. Respondents rated
factors affecting intention to use of electric vehicles and the level of agreement on factors are
showed based on the average of mean.

Table 2. Central Tendencies Analysis for Performance Expectancy

Factor Item Std. Mean
Deviation
Using Electric vehicles makes it easier for 0.817 3.71
me to do my job. (moderate)
Overall, Electric vehicles are useful for me. 0.833 3.62
(moderate)
Using an electric vehicle improves my daily 0.851 3.28
Performance Ex- performance. (moderate)
pectancy Using Electric vehicles enables me to 0.932 3.70
complete tasks more quickly. (moderate)
Average of Mean 3.50
(moderate)

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Table 3. Central Tendencies Analysis for Price Value

Factor Item Std. Mean
Deviation
BEVs are reasonably priced. 0.776 321
(moderate)
BEVs are a good value for money. 0.811 3.54
Price Value (moderate)
At the current price BEVs provide good value. 0.732 4.44
(high)
I have intention purchasing an EV. 0.912 3.42
(moderate)
Average of Mean 3.65
(moderate)

Table 4. Central Tendencies Analysis for Social Influence

Factor Item Std. Mean
Deviation
People who are important to me think that I 0.926 3.13
should buy electric car. (moderate)
People usually influence my purchasing intention. 0.928 3.11
Social Influ- (moderate)
ence I will use electric vehicles if my friends or peer have 0.901 3.30
already used it. (moderate)
Average of Mean 3.18
(moderate)

Table 5. Central Tendencies Analysis for Facilitating Conditions

Factor Item Std. Mean
Deviation
I have access to facilities and services needed to use 0.884 3.01
BEVs. (moderate)
I have the knowledge, resources and ability to use 0.776 3.12
electric vehicles. (moderate)
Resources required to use BEVs are available to me. 0.808 3.14
(moderate)
Facilitating My interaction with electric vehicles is 0.767 3.01
Conditions clear and understandable. (moderate)
Using electric vehicle is entirely within my control. 0.757 3.08
(moderate)
I am constrained by the lack of infrastructure or re- 0.811 3.35
sources needed to use BEVs. (moderate)
Average of Mean 3.12
(moderate)

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 Hamed Khazaei

Table 6. Central Tendencies Analysis for Personal Innovativeness

Factor Item Std. Mean
Deviation
I regard electric vehicles stimulating and in- 0.914 3.04
novative. (moderate)
I am challenged by ambiguities, new ideas 0.953 3.11
Personal Innovative- and unsolved problems. (moderate)
ness I do not care about other people using an 0.974 2.97
electric vehicle before I consider buying it. (moderate)
I am generally cautioning about accepting 0.930 3.06
new ideas. (moderate)
Average of Mean 3.05
(moderate)

Table 7. Central Tendencies Analysis for Intention to Use EV

Factor Item Std. Mean
Deviation
I am intended to purchase an electric 0.914 3.40
vehicle. (moderate)
Intention to Use BEV It is likely that I will use an electric ve- 0.893 3.48
hicle. (moderate)
I expect to use electric vehicles in the 0.918 3.74
future. (high)
Average of Mean 3.54
(moderate)

Validity of Measures
This study used PCA with varimax rotation to test the validity of the measurement scale.
SPSS 22 used to examine the collected data. Furthermore, Cronbach’s alpha was used to test the
reliability of the extracted factors. Principle component analysis extracted five dimensions, named
facilitating conditions, personal innovativeness, performance expectancy, price value and social in-
fluence. These factors loaded well on their respective factor and the results showed the KMO of
each variable was greater than minimum of 0.70, indicating a valid scale was used in the data analy-
sis (Hair et al., 2010). The alpha score of each dimension achieved 0.70 and above, indicating a reli-
able scale used in the data analysis. The results also showed that there is no violation of assumption
in the multiple regression analysis. Items in the measurement scale were rated by the respondents.
Items for Price value were the most important items, with a mean score of 4.41. The product mo-
ment Pearson correlation analysis indicated that there are significant positive correlations between
all predictors and intention to purchase BEVs.
Independent Variables
The 21 items of the measurement scale for independent variables were subjected to PCA us-
ing SPSS version 22. The suitability of data for factor analysis was assessed before performing
PCA. Inspection of the correlation matrix revealed the presence of coefficients of 0.3 and above.
The KMO was 0.899 which is greater than the recommended minimum of 0.6 (Hair et al., 2010) and
Bartlett’s Test of Sphericity reached statistical significance, supporting the factorability of the corre-
lation matrix.

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PCA revealed the presence of five factors with eigenvalues exceeding 1. An investigation of
the individual item’s MSA revealed that all items’ MSA are above 0.50, indicating no item to be
omitted from the analysis. Finally, five factors named facilitating conditions (6 items), personal in-
novativeness (4 items), performance expectancy (4 items), price value (4 items), and social influ-
ence (3 items) were extracted and loaded well on their factors and explained 67.98 percent of the
variance.
Dependent Variable
The three items of the measurement scale for dependent variable were subjected to PCA us-
ing Statistical Package for the Social Sciences (SPSS) version 22. Investigation of the correlation
matrix disclosed the attendance of 3 coefficients of 0.3 and above. The KMO was 0.740 and Bar-
tlett’s Test of Sphericity achieved statistical significance, supporting the factorability of the correla-
tion matrix. PCA discovered one dimensions with eigenvalues exceeding 1. An inspection of the
scatterplots revealed a clear break after the first factor. Subsequently, no cross-loadings and low
communalities were found, therefore a model with one dimension may be adequate to represent the
dependent variable.
Reliability
No items were deleted, and all the Cronbach’s alpha values indicated the reliability of the
measurement scale used in this study. Table 8 displays four dimensions with Cronbach’s alpha val-
ues above 0.80, and two dimensions with values above 0.70.

Table 8. Summary of Reliability Testing

Variable Dimension No of Items Cronbach’s Alpha
Independent Facilitating Conditions 6 0.798
Personal Innovativeness 4 0.902
Performance Expectancy 4 0.811
Price Value 4 0.776
Social Influence 3 0.802
Dependent Intention to use EV 3 0.880

Normality, Linearity and Multicollinearity

Examination of normal curve in Histogram showed that the distributions of samples were
normal, signifying no violation of the assumption of normality. Moreover, Appendix E displays the
normal plot of regression identical residuals for the dependent variables and indicates a relatively
normal distribution. It can be observed from the scatter plot of residuals against predicted values,
that there is no clear relationship between the residuals and the predicted values, consistent with the
assumption of linearity.
There is no violation of multicollinearity if the Tolerance level is more than 0.1 and Variance
Inflation Factor (VIF) is less than 10 (Belsley, D., 1991). Table 9 displays the results of Tolerance
and VIF tests and shows there is no violation of multicollinearity.

Table 9: The results of Tolerance and VIF tests

Collinearity Statistics
Dimension Tolerance VIF
Facilitating Conditions 0.607 1.647
Personal Innovativeness 0.623 1.605
Performance Expectancy 0.786 1.272

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 Hamed Khazaei

Collinearity Statistics
Dimension Tolerance VIF
Price Value 0.758 1.319
Social Influence 0.718 1.393

Data Analysis
Pearson Correlation Analysis
In order to test the bi-variate relationships between variables, this study used Pearson corre-
lation technique. The analysis conducted before multiple regression analysis. It can be observed that
there are positive correlations among variables ranged from 0.275 to 0.560. Table 10 shows the cor-
relation matrix that identifies the relationships of variables between variables under the correlation
significance level of 0.01.
The relationships between independent variables were investigated and the strongest mod-
erate positive relationship between facilitating conditions and social influence (r = 0.560, p = 0.000).
This indicates that high levels of facilitating conditions associated with high levels of social influ-
ence. A very weak positive relationship is observed between social influence and Price Value (r =
0.275, p = 0.000). There is low positive relationships between performance expectancy and facilitat-
ing conditions (r = 0.386, p = 0.000); price value and facilitating conditions (r = 0.356, p = 0.000);
personal innovativeness and facilitating conditions (r = 0.311, p = 0.000); Price Value and perfor-
mance expectancy (r = 0.329, p = 0.000); personal innovativeness and performance expectancy (r =
0.332, p = 0.000). In addition, there are moderate positive relationships between independent va-
riables, social influence and performance innovativeness (r = 0.416, p = 0.000), From the analysis, it
is obvious intention to use is associated with the high level of facilitating conditions, personal inno-
vativeness, performance expectancy, price value and social influence. Nevertheless, the correlation is
ranged from very weak position relationship to moderate positive relationship (r = 0.276 to 0.527).
It can be noticed that the strongest positive association exists between performance expectancy and
intention to use EV (r = 0.527, p = 0.000) and the weakest positive relationship between facilitating
conditions and intention to use BEV. The results of Pearson correlation analysis are shown in table
10.

Table 10. Correlations of Factors Influencing Intention to Use BEVs

Facilitat- Social Perfor- Price Personal Intention
ing Influence mance Value Innova- to use EV
Conditions Expectancy tiveness
Facilitating R 1 0.560 0.386 0.356 0.311 0.276
Condition Sig 0.000 0.000 0.000 0.000 0.000
Social R 0.560 1 0.283 0.275 0.416 0.464
Influence Sig 0.000 0.000 0.000 0.000 0.000
Performance R 0.386 0.283 1 0.329 0.332 0.527
Expectancy Sig 0.000 0.000 0.000 0.000 0.000
Price Value R 0.356 0.275 0.329 1 0.404 0.435
Sig 0.000 0.000 0.000 0.000 0.000
Personal in- R 0.311 0.416 0.332 0.404 1 0.497
novativeness Sig 0.000 0.000 0.000 .000 0.000
Intention to R 0.276 0.464 0.527 0.435 0.497 1
Use BEVs Sig 0.000 0.000 0.000 .000 0.000

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Multiple regressions were carried out to inspect the research hypotheses. Initial analyzes
were led to certify no violation of the assumptions of normality, linearity, and multicollinearity. The
Durbin-Watson statistic also displays that there is no autocorrelation with the statistic value of 2.112
falls within the acceptable range of 1.5 to 2.5 as recommended by Norusis (1995). The autocorrela-
tion test result is showed in Table 11.

Table 11. Model Summaryᵇ and Durbin-Watson Test for Autocorrelation

R R Square Adj. R Square F Sig. Durbin-Watson
0.696ª 0.485 0.467 73.012 0.000 2.112

Table 11 displays F statistic for the model is 73.012 with P value of 0.000, signifying the
significance of model. This specifies that the predictors are significantly influenced the dependent
variable which is intention to use of BEVs. The R square of 0,467 clarifies that 46.7% of the va-
riance had been significantly explained by the independent variables. Moreover, standardized re-
gression is identified, and the results are showed in Table 12. It indicates that performance expec-
tancy had highest beta value, 0.387, followed by personal innovativeness (b = 0.323), social influ-
ence (b = 0.233), price value (b = 0.203) and facilitating conditions (b = -0.192).

Table 12. Standard Coefficient of Dimension

Dimension Std. Coefficients (Beta) P Value.
Performance Expectancy 0.387 0.000
Price value 0.203 0.000
Social Influence 0.233 0.000
Facilitating Conditions -0.192 0.000
Personal Innovativeness 0.323 0.000

Results and Discussion

Table 13 demonstrates the Summary of hypothesis testing.

Table 13. Summary of Hypothesis Testing

Hypotheses Results
H1: Social influence has a positive impact on intention to use electric vehicles. Accepted
H2: Facilitating conditions has a positive impact on intention to use electric ve- Rejected
hicles.
H3: Price value is positively influencing the intention to adopt electric vehicles. Accepted
H4: Performance expectancy has a positive impact on intention to use electric ve- Accepted
hicles.
H5: Personal innovativeness has a positive influence on intention to use electric Accepted
vehicles.

Social Influence
Regression analysis was conducted to test the relationship between social influence and in-
tention to use BEVs. The result of this study supports hypothesis 1 that social influence has a posi-
tive effect on intention to use electric vehicle as a new technology (b = 0.233, p = 0.000). Yee, Y.

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 Hamed Khazaei

Y., and Yeow, P. H. P. (2009) claimed that younger generation more imitate the group of peers
whom they are socialized, consequently, social influence plays an important impact in this study
since majority of respondents of this study were young students. Thus, social influence has signifi-
cant affect towards intention to use electric vehicles among respondents of this research. As there
are environmental benefits of using BEVs, they can be amplified through the social influence on
people. Giving governmental incentives for customers may be a good technique to attract more cus-
tomers to use BEVs. For marketing implications, high social influence also indicates that media or
press plays important role in attracting attention towards electric vehicles.
Facilitating Conditions
Regression analysis was conducted to test the relationship between facilitating conditions
and intention to use BEV. The results of the analysis were presented in Table 7. The results of this
study rejected hypothesis 2 that facilitating conditions (b = -0.192, p = 0.000) has no positive effect
on intention to use BEV. According to Axsen and Kurani (2013), the most frequent concerns with
BEVs are limited range, charger availability, and higher vehicle purchase prices. Therefore a good
explanation for this result could be that accessing to the necessary technology support is a serious
problem to the respondents since there is not enough infrastructures such as charging stations and
after sale services are available in Malaysia yet.
Price value
The relationship between price value and intention to adopt BEV was examined in the mul-
tiple regression analysis and the result supports hypothesis 3 that price value has positive effect on
intention to adopt BEVs (b = 0.203, p = 0.000). These finding is not consistent with some previous
studies. Price value is barrier for some new technologies (Kveiborg, O., Christensen, L., Mabit,
S.L., 2010). That is interesting because although price of electric cars in same class are more than
combustion engine cars, but in this study, the respondents still found the price reasonable. It can be
because most of the respondents were educated and understand the higher price of new technology
at early stage, or they may perceive BEVs as more effective and economic in long time usage com-
paring with combustion engine cars.
Performance Expectancy
Regression analysis was conducted to test the relationship between performance expectancy
and intention to use BEVs. The result of this study supports hypothesis 4 that performance expec-
tancy (b = 0.387, p = 0.000) has a positive effect on intention to use electric vehicles and is consis-
tent with similar previous studies. A rational reason could be used to explain this consistent finding,
Skippon (2014) stated that the future dynamic performance and cruising performance of electric ve-
hicles might partially offset the reduced utility of low range, long recharge times, and higher costs.
So perceived overall driving performance, including the comfortable driving, high acceleration and
smoothness noise free driving of electric vehicles could be a very rational motive for having inten-
tion to buy BEVs.
Personal Innovativeness
Regression analysis was conducted to test the relationship between personal innovativeness
and intention to use EV. The results of the analysis were presented in Table 7. The results of this
study support hypothesis 5 that personal innovativeness (b = 0.323, p = 0.000) has a positive effect
on intention to use BEVs. Rogers (2003) argued, early adopters are small group who have high lev-
el of innovativeness. According to Kerr, William R., & Ramana Nanda (2015), innovation is asso-
ciated with greater risk, uncertainty, and imprecision, so innovators are able to cope with higher le-
vels of uncertainty. Therefore, in EV context, which is a revolutionary technology and needed dif-
ferent habits, views and still uncertainties such as range anxiety and scarcity of charging stations,

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personal innovativeness amplifies risk-taking behavior and serves as a key motivator for purchasing
electric vehicle.

Conclusion
This study has been done in Kuala Lumpur, Malaysia and investigated the factors that influ-
ence individual intention towards usage of battery electric vehicles. This research proposes a new
conceptual framework in automotive concept. The results of this study proved that social influence,
price value, performance expectancy, and personal innovativeness have positive influence on inten-
tion to purchase of an electric vehicle. However, the positive effect of facilitating condition on inten-
tion of use of electric vehicles was not supported.

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