The aim of this paper is to argue why the Toyota Prius can be classified as product eco-innovation and to study why the eco-innovation Toyota Prius has been successful. For this purpose the general literature on eco-innovation is reviewed and applied on the specific case of the Prius.
The paper is organized as follows: section 2.1 provides a brief overview of the different definitions of the term eco-innovation that are proposed in the literature. Next, section 2.2 depicts the factors determining the success of an eco-innovation which are named in the eco-innovation literature. After this, section 3 introduces the case of the Toyota Prius and argues why the Prius can be classified as product eco-innovation. Then, section 4 studies which determinants of eco-innovation have contributed to the success of the Prius. Finally, section 5 summarizes the findings of this paper and evaluates them critically.
Table of Contents
1. Introduction: Topic, research questions, methodology, and structure of the paper
2. Eco-innovation: Theoretical background
2.1 Definitions of the term eco-innovation
2.2 Determinants of eco-innovation
3. The Toyota Prius as product eco-innovation
4. Determinants for the success of the eco-innovation Prius
4.1 Technology push
4.2 Market pull
4.3 Regulatory push and/or pull
5. Conclusion
Objectives and Topics
This paper aims to classify the Toyota Prius as a product eco-innovation and to analyze the determinants that contributed to its commercial success by applying theoretical frameworks from the literature on eco-innovation.
- Theoretical definitions of eco-innovation
- Technology push factors within Toyota
- Market pull drivers based on consumer purchase motives
- Regulatory push and pull influences, specifically in the US market
Excerpt from the Book
4.2 Market pull
OZAKI & SEVASTYANOVA (2011) reviewed the literature on the hybrid vehicle purchase motives of individual consumers. Moreover they empirically investigated the motivations of consumers in the United Kingdom to purchase a Toyota Prius. The results of the literature review and of the empirical study can help to explain why there has been such a market pull for the Toyota Prius which was apparently strong enough to initiate a successful diffusion of the eco-innovation Prius.
The literature review revealed that the specific motives of consumers to buy a hybrid vehicle can be categorized into five groups (OZAKI & SEVASTYANOVA 2011, P. 2219). In the following paragraphs these five motives are outlined and connected with the empirical findings of the study conducted by OZAKI & SEVASTYANOVA (2011, P. 2223).
The first group of purchase motives for hybrid vehicles, identified by OZAKI & SEVASTYANOVA (2011, P. 2219) reviewing the relevant literature, relates to financial benefits for hybrid vehicle owners. On the one hand these financial benefits are due to the possibility for hybrid owners to save money on petrol because of the improved fuel-efficiency of hybrid vehicles (ibid). And on the other hand hybrid vehicles can also be financially beneficial because of monetary incentives (e.g. reduced taxes) which are granted for hybrid vehicles (ibid). The empirical study made by Ozaki and Sevastyanova about the motives of consumers (in the United Kingdom) to purchase a Toyota Prius confirmed that financial benefits strongly affected the decision of Prius owners to purchase a Prius (OZAKI & SEVASTYANOVA 2011, P. 2223).
Summary of Chapters
1. Introduction: Topic, research questions, methodology, and structure of the paper: Outlines the environmental context, the specific focus on the Toyota Prius as a case study, and the structure of the analytical approach.
2. Eco-innovation: Theoretical background: Explores existing literature definitions of eco-innovation and introduces the three core determinants: technology push, market pull, and regulatory push/pull.
3. The Toyota Prius as product eco-innovation: Provides an overview of Toyota's development of the Prius and justifies its classification as an eco-innovation based on defined criteria.
4. Determinants for the success of the eco-innovation Prius: Analyzes how technology push, market pull, and regulatory factors specifically contributed to the market success and diffusion of the vehicle.
5. Conclusion: Summarizes the study findings and evaluates the explanatory power of the applied determinants in the context of the Toyota Prius case.
Keywords
Eco-innovation, Toyota Prius, Hybrid vehicle, Technology push, Market pull, Regulatory push, Environmental policy, Sustainability, Innovation economics, Diffusion, Consumer motivation, Automotive industry
Frequently Asked Questions
What is the fundamental focus of this research paper?
The paper examines the success of the Toyota Prius as an eco-innovation by applying established theoretical frameworks from the field of innovation economics.
Which theoretical determinants are identified as central to eco-innovation?
The paper identifies three primary determinants: technology push from the supply side, market pull from the demand side, and regulatory push or pull resulting from environmental policies.
What is the primary research objective?
The objective is to classify the Toyota Prius as a product eco-innovation and investigate the specific circumstances that led to its successful market diffusion.
Which scientific methodology is employed?
The author conducts a case study approach, reviewing existing scientific literature and empirical data on hybrid vehicles, Toyota, and the Prius to apply theoretical eco-innovation concepts to this specific example.
What is covered in the main body of the work?
The main body details the theoretical background of eco-innovation, introduces the Prius, and provides a structured analysis of the technology, market, and regulatory factors that influenced its success.
Which keywords best characterize this work?
Key terms include eco-innovation, Toyota Prius, technology push, market pull, regulatory framework, and hybrid electric vehicle.
How did Toyota's internal organizational factors influence the Prius development?
The study highlights that Toyota's existing knowledge base, technical capabilities, managerial support, and corporate environmental vision were crucial factors in the project's success.
What role did US government policy play in the diffusion of the Prius?
The research concludes that federal tax incentives and state-level programs, such as the Californian ZEV mandate, significantly supported the successful diffusion of the Prius in the United States.
Why were consumer purchase motives important for the Prius?
Market pull, driven by consumer interest in financial benefits, environmental impact, social norms, and advanced technology, provided the necessary demand to sustain the vehicle's market growth.
- Quote paper
- Felix Reutter (Author), 2013, Eco-Innovation: The Toyota Prius Case, Munich, GRIN Verlag, https://www.grin.com/document/264459
