Determinant of Electric Car Adoption in the Case of Dire Dawa Consumers Perspectives

Abstract

This study investigates the key factors influencing Electric Vehicle (EV) Purchase Intention, focusing on Performance Expectancy, Effort Expectancy, Social Influence, and Price Value, using a sample of 247 respondents. Correlation and multiple regression analyses reveal significant positive relationships between these predictors and EV Purchase Intention. Performance Expectancy (r = 0.878) and Price Value (r = 0.873) have the strongest correlations, indicating that consumers who perceive higher performance and better value for money are more likely to intend to purchase an EV. The model explains 81.7% of the variance in EV Purchase Intention (R2 = 0.817), with Price Value being the most influential factor (Beta = 0.336). Despite moderate multicollinearity, particularly between Performance Expectancy and Price Value, the regression model remains statistically significant (p < 0.01), highlighting the importance of these factors in shaping purchase intentions. These findings suggest that strategies to increase EV adoption should focus on enhancing perceived performance, ease of use, and affordability, while leveraging social influences. The results provide actionable insights for both marketers and policymakers aiming to boost EV adoption.