The world is facing several environmental problems that are getting visible especially in the growing number of natural disasters. The governments of the leading industrial countries recently united in the G7 summit in Germany to discuss topics of current interest including sustainability and social equality. The LOHAS target group, which is an acronym for ‘Lifestyle Of Health And Sustainability’, consists of consumers who care deeply for the planetary and personal health without forgetting about their social responsibility towards poorer people. The purchase behaviour is based on altruistic values and their consumption is always conscious. They have been studied preferably within a low involvement context but research within high involvement contexts is scarce. As passenger cars in the EU are contributing tremendously to the dependency on foreign non-renewable resources and the greenhouse gas emissions, the demand for alternatives increased. Alternative fuel vehicles (AFV) like electric, gas and hybrid cars are encountering both threats and as cars are high involvement products the study will focus on the automotive industry.
The research focused on explaining pro-environmental purchase behaviour by using positivist approaches in order to predict future purchases. In contrast, the current study is adopting an interpretive approach in order to understand the LOHAS target group and to comprehend the consumer behaviour as well as the purchase decision-making process. Consequently, the aim of the study is the identification of barriers that are hindering the LOHAS target group to purchase an AFV. Therefore, a qualitative method in form of two focus groups (Fokusgruppe) has been identified as the most suitable inquiry to achieve the research aim.
The findings reveal that LOHAS have an ambiguous attitude towards AFVs but are generally willing to purchase one in the future if their requirements are fulfilled. The main problem is the lack of trust into the alternative technology. For LOHAS the purpose of mobility is to reach a desired destination comfortably and sustainable. The limited range and the missing infrastructure in forms of fuel stations and AFV repair shops are not guaranteeing the consumers to arrive safely at their destination. Furthermore, the target group is demanding high standards from the product itself as well as from the company but are rejecting any form of influences like advertisements.
Table of Contents
1 Introduction
1.1 Context of research
1.2 Scientific formulation of research objectives and aim
1.3 Methodology
1.4 Terminology
1.5 Structure
2 Literature review
2.1 The LOHAS target group
2.1.1 Definition and origin
2.1.2 Segmentation and characteristics
2.1.3 Recent market conditions
2.1.4 State of research
2.1.5 Implications for research
2.2 Consumer Behaviour
2.2.1 Decision-making process
2.2.2 Implications for research
3 Empirical research
3.1 Research design and philosophy
3.2 Focus group
3.2.1 General organisation of the focus group
3.2.2 Characterisation of the research question
3.2.3 Conducting the focus group
3.2.4 Methods of data analysis
3.3 Quality criteria
3.3.1 Credibility
3.3.2 Transferability
3.3.3 Dependability
3.3.4 Pre-test
3.4 Ethical issues
4 Description and insights of the focus groups
4.1 General attitude of LOHAS towards cars and AFVs
4.2 The AFV purchase decision-making process of LOHAS
4.3 Advertisement for the LOHAS
4.4 Additional insights
5 Conclusion
5.1 Summary
5.2 Managerial implications
5.3 Limitations
5.4 Discussion
5.5 Further research
7 Appendix
7.1 Appendix 1: Report focus groups
7.2 Appendix 2: Questionnaire for sampling
7.3 Appendix 3: Manual focus group
Research Objectives and Key Topics
The primary aim of this master thesis is to identify significant factors influencing the decision-making process of the LOHAS (Lifestyle of Health and Sustainability) target group when purchasing an Alternative Fuel Vehicle (AFV), specifically focusing on barriers that hinder adoption in the automotive industry.
- Analysis of the LOHAS target group's values, characteristics, and consumption patterns.
- Investigation of consumer behavior models within high-involvement product contexts.
- Evaluation of the AFV purchase decision-making process through qualitative focus group research.
- Assessment of effective communication and advertising strategies tailored to LOHAS values.
Excerpt from the Thesis
1.1 Context of research
In the 21st century the world is facing heavy environmental problems like the climate change and the rising greenhouse gas emissions that are causing weather extremes like hurricanes, droughts and floods all over the globe. Governments started already in 1992 with the United Nations (UN) conference in Rio de Janeiro to react on the dramatic development. The result was a framework convention containing agreements upon a specific reduction of the greenhouse gas emissions for the participating countries within a timeframe. Until now the convention could not stop the climate change enhancing the demand that governments, businesses and the population have to consider and evaluate their own individual contribution to the environment.
Road transport is responsible for about 20 per cent of the European Union (EU) total emissions of carbon dioxide (in the following CO2) and is the major source of greenhouse gas emissions in the EU after power generation. Emissions in this sector increased by 22,6 per cent within 20 years. Especially passenger cars still contribute around twelve per cent of the EU’s CO2 emissions even though the vehicle technology has been significantly improved in recent years. The cars are more fuel-efficient that is leading to less CO2 but is still not enough to neutralise the growing traffic and car sizes (European Commission, n.d.). According to the European Commission (2011) by 2050 the CO2 emissions related to transport are supposed to be diminished by 60 per cent in comparison to the year 2000. As about 50 per cent of the CO2 emissions in transport are emitted through passenger cars in the EU, the necessity for alternative fuel vehicles (in the following AFV) is growing. The advantages of AFVs like electric, hybrid or fuel cell cars are that they use non-fossil fuel and will possibly emit only a small proportion of CO2 in comparison to conventional diesel and petrol cars. Especially for Germany the need for alternative fuels is growing because they are dependent on foreign energy resources.
Summary of Chapters
1 Introduction: Provides the research context regarding environmental challenges and defines the research aim and methodology.
2 Literature review: Analyzes the LOHAS target group definition, consumer behavior theories, and the state of research in high-involvement markets.
3 Empirical research: Describes the qualitative research design, focus group organization, and the application of quality criteria.
4 Description and insights of the focus groups: Presents the findings from the focus group discussions regarding car attitudes, decision-making, and advertising.
5 Conclusion: Summarizes key findings, discusses managerial implications, limitations, and suggests future research directions.
Keywords
LOHAS, Alternative Fuel Vehicles, AFV, Consumer Behaviour, Decision-making process, Sustainability, Qualitative research, Focus group, Green consumerism, Brand personality, Self-congruity, Marketing strategy, Authenticity, Environmental concern, Automotive industry.
Frequently Asked Questions
What is the core focus of this master thesis?
The research investigates the consumer behavior and purchase decision-making process of the LOHAS target group specifically within the automotive industry, aiming to identify barriers to the adoption of Alternative Fuel Vehicles (AFVs).
What are the central themes of the research?
The key themes include understanding the LOHAS lifestyle, evaluating high-involvement purchase decisions, identifying environmental barriers, and determining how to effectively communicate with this values-driven consumer group.
What is the primary research goal?
The study aims to identify the specific barriers that prevent LOHAS consumers from purchasing AFVs and to provide insights into how companies can address this group through authentic and transparent communication.
Which scientific methodology is employed?
The study utilizes a qualitative approach, conducting two independent focus groups to gain deep, interpretative insights into the motivations and attitudes of LOHAS consumers.
What is covered in the main body of the work?
The main body examines existing literature on consumer behavior and LOHAS, describes the empirical research design, presents detailed findings from focus groups, and discusses the implications for automotive manufacturers and policy makers.
Which keywords characterize this work?
The study is defined by concepts such as LOHAS, Alternative Fuel Vehicles, sustainability, consumer decision-making, qualitative research, and brand personality.
How does the LOHAS group view electric cars?
The study reveals that while LOHAS consumers recognize the benefits of electric cars, they are skeptical due to concerns regarding range, charging infrastructure, and the environmental footprint of battery production, leading them to perceive some current offerings as 'greenwashing'.
What is the role of autonomy in the LOHAS decision-making process?
Autonomy is a crucial motive; LOHAS consumers highly value their independence and react negatively to aggressive, manipulative advertising, preferring objective, transparent information to form their own opinions.
How does the research address the 'coolness factor' of AFVs?
The focus groups suggest that for younger generations, AFVs are becoming attractive not primarily due to sustainability, but because of innovative technology and the opportunity for uniqueness, with models like the Tesla serving as 'cool' status symbols.
- Arbeit zitieren
- Maximilian Heiler (Autor:in), 2015, Consumer behaviour and the decision-making process of the LOHAS target group in the automotive industry, München, GRIN Verlag, https://www.grin.com/document/306814
