Consumer Heterogeneity in the Potential Early Mainstream Market for Plug-in Electric Vehicles

The authors characterize consumer heterogeneity in the potential early market for plug-in electric vehicles (PEVs)—including plug-in hybrids (PHEVs) and pure electric vehicles (EVs). The authors apply and compare two approaches, constructing consumer segments based on PEV preferences, and on lifestyle. Survey data were collected from 1,754 new vehicle buying households in Canada in 2013. The survey instrument collected extensive background information from each respondent, and PEV interest was elicited through a PEV stated choice experiment and a design space exercise. First, preference-based segments were constructed using latent-class analysis of the choice experiment data. The authors identified a smaller segment of “PEV-enthusiasts” respondents (8% of sample) with extremely high valuation of PHEVs and EVs, little interests in fuel cost savings, and high engagement in technology and environmental lifestyles. A broader segment of “PHEV-oriented” respondents (25%) expresses more moderate positive valuation of PHEVs, tends to engage in an environment-oriented lifestyle and also value fuel cost savings. Second, lifestyle-based segments were constructed using cluster analysis on a subset of potential early PEV buyers (33%). The six clusters varied in engagement in environment- and technology-oriented lifestyles, environmental concern and openness to change. PHEVs were most positively valued across all six segments, though apparent motivations varied substantially. Results suggest that PHEVs are the most likely PEV to have broad market appeal, but potential buyers can vary substantially in their valuations of fuel savings, environmental concern, and lifestyle.