Investigating Key Factors Influencing Purchase Intention of Electric Motorcycle in Indonesia

Abstract

Indonesia is the top three global motorcycle market, contributing to the high CO2 emissions. Electric motorcycles (EMs) are an effective way to reduce CO2 emissions. This study examines the purchase intentions of EMs that focus on micro-levels, cost, technological and macro-level factors. Partial Least Square - Structural Equation Model (PLS-SEM) is used to explore the significant factors and the relationship among these factors in constructing the purchase intention model. The questionnaire survey collected from 1,223 respondents shows that almost 82% of respondents revealed their intention to buy EMs. This result indicates that the future of the EM market is very promising. This research also finds that macro-level, technology and cost factors are significant factors in the purchase intention of EMs. Consumers are still reluctant to buy EMs due to the barriers in the charging station infrastructure, tax and incentive policies, EM prices, battery costs, charging time, and battery life resulting in consumers choosing a "wait and see" decision in adopting EMs. Meanwhile, respondent characteristics such as age, education, and income level do not significantly affect the EM purchase intention. Respondents who have extensive social networks and are concerned about the environment are more willing to adopt EMs.

Keywords

• purchase intention
• questionnaire survey
• electric motorcycle
• pls-sem
• indonesia