Sharing channel choices for electric vehicle battery manufacturers when considering range anxiety among heterogeneous consumers

Abstract

Purpose

This study aims to investigate the optimal pricing decisions and shared channel strategy selection of battery manufacturers considering heterogeneous consumers' range anxiety.

Design/methodology/approach

Amidst the rapid growth of the electric vehicle sector, countries are promoting upgrades in the automotive industry. However, insufficient driving range causes consumer range anxiety. The study utilizes the Stackelberg game model to assess how range anxiety influences battery manufacturers' pricing and channel strategy decisions across three strategies.

Findings

We find that electric vehicle battery manufacturers' decisions to cooperate with third-party sharing platforms (TPSPs) are primarily influenced by fixed costs and consumer range anxiety levels. As range anxiety increases, the cost threshold for joining shared channels rises, reducing cooperation likelihood. However, considering diverse consumer needs, especially a higher proportion of leisure-oriented consumers, increases the likelihood of cooperation. Furthermore, higher battery quality makes direct participation in shared channels more probable.

Originality/value

In the electric vehicle industry, range anxiety is a significant concern. While existing literature focuses on its impact on consumer behavior and charging infrastructure, this study delves into battery manufacturers' strategic responses, offering insights into channel options and pricing strategies amidst diverse consumer segments.

Citation

Chen, N., Li, B., Zhao, M., Ren, J. and Su, J. (2024), "Sharing channel choices for electric vehicle battery manufacturers when considering range anxiety among heterogeneous consumers", Asia Pacific Journal of Marketing and Logistics, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJML-05-2024-0586