1. Introduction
The development of new energy automobile industry is an important and historic decision of lane change in the competition between China's new energy automobile industry and the world's automobile industry, and is generally regarded as a relatively mature development planning action [1]. As one of the important pillar industries of the national economy, the automobile industry has been playing an important role in the economic and social development. At present, new energy vehicle enterprises mainly consider how to improve market share from the perspective of marketing, such as the use of founder's personal image marketing, seed user marketing, community marketing, live video marketing, opening direct stores to the downtown and busy business district. In this paper, from an innovative research perspective, behavioral economics theory is applied to tentatively put forward a feasible marketing strategy for the new era, contributing to the progress of the local new energy vehicle industry. Behavioral economics is an economic theory that takes people's behavior as the main research content and a behavioral science that integrates psychology and economics [2]. Its appearance has brought a broader perspective to the study of consumption. This research not only opens up new ideas, but also plays an important role in promoting the development of new energy vehicles in China.
2. Introduction to Important Theories of Behavioral Economics
2.1. Prospect Theory
Also known as the "expectation theory", humans are always very careful and prudent in the face of gains, unwilling to take certain risks, but when faced with losses, the situation is completely different, almost everyone is a risk taker. In addition, the joy people feel when they are faced with gains is much lower than the grief they feel when facing losses [3].
2.2. Anchor Sinking Effect
When judging a certain kind of person or thing, everyone is easily disturbed by the first impression or information.When human beings make decisions, their consciousness is often disturbed by the first information and guided by a restricted word or a designed action, forming the psychological effect of behavioral effect [4].
2.3. Psychological Account
Different types of personal psychological accounts have different calculation methods. Before people do something, they will decide the importance according to their psychological account and then decide their own choice [5]. The psychological account is reflected in the following three aspects: first, through the understanding, formulation and evaluation of the consequences of decision-making in the psychological account, a psychological loss-gain analysis before and after the decision is given. Second, because people get different sources of funds and payment methods, they will have special psychological accounts, and consumption is sometimes subject to obvious or not obvious budgets for specific accounts. The psychological account can use certain date to try to measure normally, its date limit also can be long or short.
3. Analysis of New Energy Vehicle Manufacturers
3.1. Concept of New Energy Vehicles
It is generally believed that all power sources are unconventional fuels and have the drive system, electronic control system, safety control system of conventional vehicles with corresponding new structures and technologies, are new energy vehicles.
3.2. Sales of New Energy Vehicles
Affected by the impact of rising oil prices and various car purchase policies, new energy vehicles are sought after by people, and sales have increased sharply. According to statistics from The Data center of Ride Association, from January to May (Table 1), the retail sales of New energy vehicles in China have accumulated 10,000 units, with a year-on-year growth of 119.5%. From 5.8% in 2020, to 14.8% in 2021, to 23.4% in January-May 2022. BYD, Wuling and Tesla occupy the top three market shares. Xiaopeng Automobile, as a representative of new power car enterprises, ranks 7th in the middle of the list and has much room for improvement. Therefore, this paper chooses Xiaopeng Automobile as an example for specific analysis.
Table 1: Retail sales ranking of new energy vehicle manufacturers from January to May 2022 [6].
No. | Vendors | 2022.1.5 sales | 2021.1.5 sales | Compared with the same | Share |
1 | BYD | 501,224 | 111,449 | 349.7% | 29.3% |
2 | Saic GM-Wuling | 164,552 | 111,449 | 13.5% | 9.6% |
3 | Tesla | 119,637 | 145,027 | 16.3% | 7.0% |
4 | Chery | 85,863 | 102,887 | 226.0% | 5.0% |
5 | GACAION | 78,743 | 26,342 | 116.9% | 4.6% |
6 | Geely Automobile | 74,442 | 36,308 | 365.3% | 4.3% |
7 | Xiaopeng Automobile | 53,688 | 15,997 | 122.1% | 3.1% |
8 | Chang’an Automobile | 51,490 | 24,173 | 125.3% | 3.0% |
9 | Which zha car | 49,974 | 22,856 | 213.0% | 2.9% |
10 | Great Wall Motor | 49,094 | 15,966 | 17.6% | 2.9% |
(Data source: Monthly report of Passenger Car Market Information Association)
3.3. SWOT Analysis of Xiaopeng Automobile
Xiaopeng Automobile Technology Co., Ltd. was founded in 2014, the corporate headquarters is located in Guangzhou, China, the registered capital of 6,126,315,578,947, is a focus on the development and production of intelligent new energy vehicle technology enterprises.
Table 2: SWOT analysis table of Xiaopeng Automobile [7].
Advantages (S) | Disadvantage (W) |
S1: Obvious advantages in product differentiationS2: Leading reputation of brand and service qualityS3: Preemptive arrangement of online car booking and car charging network construction | W1: The funding gap is still large W2: At present, the vehicle products are single W3: High production costs and limited profit space W4: At present, the product has not formed the brand effect |
Opportunity (0) | Threat (T) |
O1: National policy support is strong, and the industry has a broad future O2: The industry scale still belongs to the Internet+field, with immeasurable commercial value O3: The number of parts suppliers increases and the purchase cost decreases O4: The domestic technical environment is better, conducive to research and development | T1: Competition is fierce in the field of new energy vehicles T2: Users have insufficient trust in domestic independent products T3: The design of charging system is not sound and unbalanced T4: Threat of alternative technologies |
4. Psychological Analysis on Consumption of New Energy Vehicles
According to the research, many consumers also hold a very optimistic view of new energy vehicles and believe that new energy will gradually replace internal combustion engine as the main power. The main reasons for changing people's shopping habits generally include the following seven points, as shown in Table 3.
Table 3: The main reasons for changing people's shopping habits [8].
No. | Influencing Factors | Brief Description |
1 | Brand impression | When people do not know other conditions of new energy vehicles, they prefer to buy vehicles that can give them a good image. |
2 | Others identity | Referring to the guiding influence of crowd behavior on consumers, the purchasing atmosphere of new energy vehicles in the crowd will also affect consumers' car buying intentions and actions. |
3 | Others suggest | During shopping, users can actively seek out “opinion leaders” or professional representatives to solicit their shopping opinions and opinions |
4 | Environmental protection consciousness | Start from customers with high awareness of environmental protection who can translate this knowledge into purchasing power. When the price drops to a certain extent, follow up from customers with knowledge of environmental protection who still remain at the level of consciousness [9]. |
5 | Vehicle quality | Safety features, driving convenience, quality reliability, fuel and maintenance costs, among which quality safety is the most concerned by consumers, followed by fuel and maintenance costs. |
6 | Price factor | Sales price, preferential policy and preferential time tax policy. In the early stage when the technology is not perfect, government departments can take various measures to subsidize new energy vehicles, but cash subsidy is not the only way [10]. |
7 | Car image | Include the brand, exterior and interior of the vehicle. These factors are particularly important for ordinary consumers who do not have a special understanding of new energy vehicles. |
5. Marketing Suggestions for Xiaopeng Company
Based on the behavioral economics theory mentioned above, new energy vehicle market, SWOT analysis of Xiaopeng Automobile, consumer psychology analysis and other information, the following marketing suggestions are given:
(1) Issue valid car purchase coupons. The pain of loss is far greater than the joy of pleasure. Through the way of lottery, award customers with different discount amount of car coupons. The voucher is valid for one month, and with the delay of time, the discount amount of the voucher is gradually reduced, making consumers feel that the money in hand is slowly losing.
(2) Improve a good first impression of the brand. Strengthen the brand image of intelligence, domestic core technology, environmental protection and fuel saving. Timely and social hot spot interaction, do beneficial to society, positive energy activities, such as Xiaopeng anti-fraud in action, funding poor college students. Good brand positioning, such as Audi, official car image; Huawei, high-end business image and so on.Can plan the establishment of Internet brand, online sales, offline car.
(3) Regularly organize reward activities with high consumer participation. Consumers are more likely to add their bonuses to their psychological accounts for work. So that consumers in intelligence, physical, and even emotional aspects of the corresponding efforts and support. For example, organize environmental protection public welfare activities, anti-fraud publicity activities, let potential owners participate in, participate in the reward for worthless goods or services, such as Xiaopeng car peripheral model, visit Xiaopeng car factory opportunity, new car test drive activities, purchase coupons, etc.
6. Conclusion
There is no doubt that new energy vehicles represent the trend of the automotive industry in the future. How to promote new energy vehicles has become a major problem facing the current automotive industry. This paper focuses on improving the market share of China's new energy vehicle brands for the purpose, taking Xiaopeng car as an example, applying the prospect theory, anchor effect, psychological account and other concepts in behavioral theory, puts forward several targeted, practical, innovative marketing suggestions, such as issuing valid car purchase coupons, improving a good first impression of the brand, regularly organizing reward activities with high consumer participation, etc. Limited by knowledge and time, this paper is not in-depth in theoretical discussion and insufficient in consumer psychology analysis. In the future, the accuracy of the study can be improved by increasing the sample number of automobile enterprises and consumers and adding statistical knowledge. It is expected that the research results of this paper can contribute to the development and completion of relevant research in China's new energy vehicle promotion and other fields.
Acknowledgements
On the occasion of the successful completion of the academic paper, I would like to express my sincere thanks to the professor. From the choice of academic paper idea, information acquisition, topic proposal, research methods, experiments, until the end of the review, finalization and other aspects of the work field, Mr. Wang, teaching assistant, have given meticulous guidance and support, for which I would like to extend my heartfelt thanks!
I would like to express my sincere gratitude to my parents, friends and classmates. During this period, their care and help have become the strength for me to continue to study hard, and also help me finish this paper smoothly and successfully. In the future learning and life I will continue to make persistent efforts to make greater progress!
References
[1]. Dongsheng Wang: Research on internationalization Development Strategy of New energy Vehicles in China [J]. Automotive Digest, 2022 (3): 34-43.
[2]. Li Shu: The Theoretical framework of behavioral economics and its review [J]. Exploration, 2003(5): 51-54.
[3]. Chunxiang Guo, Ying Peng, Qiang Guo: Lattice order group decision making with interval probability based on prospect theory. 2014 International Conference on Management Science &Engineering (ICMSE), ,2014.
[4]. Guangyu Chen: Anchoring Effect behind housing price Fluctuation [J]. Sichuan Provincial Information, 2019(01):56.
[5]. Chendi Hu, Tang L.: Explore the management strategy of human resource law source from the perspective of psychological account. Journal of Science and Education, 2018(10): 81-82.
[6]. By United CPCA, In-depth Analysis report on China's New Energy Market, June 16, 2022. http://www.cpcaauto.com/newslist.php?types=csjd&id=2781
[7]. Zhijia Liu: Research on Development Strategy of Xiaopeng Automobile Technology Co., LTD [D]. Changchun: Jilin University, 2020.
[8]. Tianyu Cui: Analysis of Consumer Purchasing Behavior of New Energy Vehicles [D]. Shanghai: Shanghai Jiao Tong University, 2012.
[9]. Zhuozhi Liu: New energy vehicle market environment analysis and target customer marketing strategy [J]. Chinese and Foreign Entrepreneurs, 2019 (12): 125-126.
[10]. Ma H. F.: The formation of consumer brand preference and analysis of behavioral economics perspective [J]. China Circulation Economy, 2008(7):60-62.
Cite this article
Shen,C. (2023). How to Obtain More Market Shares of Domestic New Energy Vehicles from Behavioral Economics -- Taking Xiaopeng Automobile as an Example. Advances in Economics, Management and Political Sciences,7,214-219.
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References
[1]. Dongsheng Wang: Research on internationalization Development Strategy of New energy Vehicles in China [J]. Automotive Digest, 2022 (3): 34-43.
[2]. Li Shu: The Theoretical framework of behavioral economics and its review [J]. Exploration, 2003(5): 51-54.
[3]. Chunxiang Guo, Ying Peng, Qiang Guo: Lattice order group decision making with interval probability based on prospect theory. 2014 International Conference on Management Science &Engineering (ICMSE), ,2014.
[4]. Guangyu Chen: Anchoring Effect behind housing price Fluctuation [J]. Sichuan Provincial Information, 2019(01):56.
[5]. Chendi Hu, Tang L.: Explore the management strategy of human resource law source from the perspective of psychological account. Journal of Science and Education, 2018(10): 81-82.
[6]. By United CPCA, In-depth Analysis report on China's New Energy Market, June 16, 2022. http://www.cpcaauto.com/newslist.php?types=csjd&id=2781
[7]. Zhijia Liu: Research on Development Strategy of Xiaopeng Automobile Technology Co., LTD [D]. Changchun: Jilin University, 2020.
[8]. Tianyu Cui: Analysis of Consumer Purchasing Behavior of New Energy Vehicles [D]. Shanghai: Shanghai Jiao Tong University, 2012.
[9]. Zhuozhi Liu: New energy vehicle market environment analysis and target customer marketing strategy [J]. Chinese and Foreign Entrepreneurs, 2019 (12): 125-126.
[10]. Ma H. F.: The formation of consumer brand preference and analysis of behavioral economics perspective [J]. China Circulation Economy, 2008(7):60-62.