The electric vehicle (EV) industry continues to rapidly grow in both developed and developing markets. Extensive switching to the EV brings significant societal changes, whilst shifting our economies away from petroleum and reducing the environmental footprint for transportation (Brown, Pyke & Steenhof, 2010). When investigating the European market for EVs, Norway is a clear key player. The Scandinavian country has a population of 5.4 million people, whereby every other new car registered is a battery EV. Thus, having the largest share of EV registrations in Europe (Wagner, 2021) (See Fig.1).
Nonetheless, prior to my evaluation, it is crucial to contextually understand the topic. The demand for a sustainable planet is more prevalent than ever, as greenhouse gas emissions which drive global warming “now substantially exceed the highest concentrations recorded in ice cores during the past 800,000 years” (IPCC, 2013, p.11). By 2030, climate change expenses are estimated to cost the global economy around $700 billion annually. Other non- economic impacts include the spread of malaria, water scarcity, extinction of reefs and an increase in extreme climate events such as hurricanes and wildfires (Baehr, 2014).
All sectors have seen great pressure to become more sustainable, with the vehicle sector at the forefront of this innovation. Since the first gasoline-electric hybrid vehicle built in 1898, EVs have been a focus of car manufacturing due to environmental concerns, oil-supply disruptions, the rise in oil price, and energy crises (Muhammad & Haruna, 2021). In effect, EVs have seen astronomical improvements over the last few decades, be it performance, cost, efficiency and most importantly availability for the consumer. Today, many believe EVs are equal to the traditional gasoline and diesel vehicles (Sperling, 2018). Other critics add that the EV is already significantly more appealing for the consumer with cheaper energy used in the vehicle, batteries that can be charged during recovery mode, easy assembly, better service life and overall significant cost savings for the owner, all whilst operating at a lower noise level (Vynakov, Savolova & Skrynnyk, 2016). An undoubtedly appealing speciality product, however, EVs do carry many deterrents. These include a lower mile range, the costs and implications of installing a charging station at home and the expensive battery replacement (Demuro, 2021). Thus, it is important to note the global transition to EVs will be a gradual process, especially in areas with a large automobile market, such as the US. On the contrary, anomalies do exist where a rapid transition has been possible. These special circumstances have occurred in Norway (Sperling, 2018).
With a focus on Norway, the consumption of EVs using the multifaceted topic of consumer behaviour can be evaluated. A term relating to the study “of the processes involved when individuals or groups select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs and desires” (Solomon et al., 2019). For effective marketing, understanding the consumer and their behaviour is essential. Consumption is integral within our day-to-day lives, and the marketers must have a good understanding of what the customer desires in order to satisfy the consumer, whilst succeeding against fierce competition (Priest, Carter & Statt, 2013). In this case, the marketers and manufacturers of EVs need to comply with the demand for a more sustainable economy, whilst creating a product that satisfies the contemporary needs and desires of a consumer. A complex task, as the consumer’s decision- making process is impacted by multiple other factors in real life (Svatosová, 2013).
For the population of Norway, the consumption of EVs can be somewhat elucidated by exploring the concept of motivation; this significantly contributes to the consumer’s satisfaction and desires. First and foremost, motivation is responsible for why we decide to do something, how long we are willing to do something for and how hard we are going to pursue it (Dörnyei & Ushioda, 2013). Motivation occurs when a specific need becomes aroused, and the consumer then wishes to satisfy this need. This is to reach the desired end state, or the consumer’s goal. Such a degree of arousal is known as a drive, a basic need that can be satisfied through a variety of ways (Solomon et al., 2012). For the EV industry, especially in Norway, there is a great demand to create a product that will provide benefit to the consumer. This is in order to satisfy the needs of the consumer and the international market.
In the field of motivation and personality, the self-determination theory is one of the most comprehensive accounts. This can help the mass demand for EVs, offering valuable insights into Norway’s consumption. After extensive work drawing on finding and offering theoretical accounts for the self-determination theory, Deci and Ryan (1985) suggested that integral to intrinsic motivation are three fundamental needs. Firstly, the need for autonomy, secondly the need for competence and lastly the need for relatedness. They posited that consumers have inherent psychological needs, as well as their basic physiological needs, such as water and food (Deci & Ryan, 2015). Once a consumer’s needs are fulfilled, they can become self-determined.
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To be motivated by autonomy, consumers must feel a sense of choice and endorse their actions (Moller et al., 2006). As such, this increases levels of happiness, for instance, when a consumer pursues something that is intrinsically motivated and aligns with their own goals (Lopez- Garrido, 2021). With the prevalent climate crisis, the Norwegian population may feel innately obliged to reduce their carbon emissions. Purchasing an EV is a great environmentally cautious investment, as over a lifetime span, EVs are responsible for significantly lower emissions than conventional vehicles running on fuel. Additionally, individuals may also be driven to satisfy their competence, a need to obtain a sense of mastery over an environment, allowing the ability to develop new skills (White, 1959). In terms of EVs, some users have claimed to have adapted and mastered their new techy driving style, with some Norwegians suggesting this was a result of battery limitations, and the fears of running out of power. Also, others reported how they have learnt the wide range of skills and features of the innovative EVs, offering a sense of mastery and competence (Ryghaug & Toftaker, 2014). Lastly, the psychological need for relatedness must be met to become self-determined (Deci & Ryan, 2015). This refers to a sense of being connected with others and being cared for; a crucial therapeutic process (Deci & Ryan, 2008). As mentioned, every other new car registered in Norway is a battery EV (Wagner, 2021). By purchasing an EV, consumers will immediately feel more connected with other EV drivers, becoming a part of a new community. Therefore, achieving a sense of relatedness. Regarding EV consumption, Norway’s impressive market could be somewhat explained through the motivation of the consumer, explored in this self-determined theory, as their inherent psychological needs are met (Deci & Ryan, 2008).
This is supported by Maslow, who proposes societal change and education give meaning to the lives, interpersonal relationships and wellbeing of the community (Neto, 2015). For instance, how the purchase of an EV offers a sense of responsibility in the efforts to tackle climate issues, whilst creating a sense of connectedness with the community. However, on the contrary, the self-determination theory is criticised due to the belief that there are only three psychological needs when other research has suggested there are many more, such as Murray’s system of needs (1938). Therefore, hindering the extent to which motivation explains Norway’s high EV consumption.
Other motivation theories such as cognitive dissonance can be applied to Norway’s EV consumption. Festinger first posited this theory in the early 1950s, suggesting individuals strive for consistency, and if there are any inconsistencies, these are rationalised to reduce psychological discomfort (Festinger, 1957) (Metin & Camgoz, 2011). Norway is praised for its climate efforts, and the population undoubtedly feel a sense of responsibility to reduce their carbon footprint. However, meats and fish, due to the country’s long jagged coastline, are stables in the Norwegian diet (Abney, 2019). Eating meat heavily contributes to gases in the greenhouse gas layer, causing the planet’s temperature to rise as the sun’s radiation is trapped. Such disparity in their beliefs and behaviours may create cognitive dissonance, as consuming large quantities of meat go against ethical morals to reduce carbon footprints. In effect, many may desire to resolve their moral dissonance by purchasing an EV to rationalise their actions. This engagement in positive environmental action leads to behavioural change in efforts to avoid cognitive dissonance, providing insights into the high consumption of EVs in Norway (Markowitz & Shariff, 2012).
The topic of consumer identity can further provide insights for the consumption of EVs. What people consume act as a signal of identity, helping to determine one’s own self-concept and place in society (Solomon et al., 2019, p.124). This also reflects social class; a term referring to groups of people who share the same socioeconomic status (Encyclopedia Britannica, 2019). This sociological approach of Norway and its consumer identity can explain the high EV consumption. Norway’s social class sees left-right attitudes, whilst social status is more libertarian-authoritarian. This results in mostly compressed levels of economic inequality (Chan et at., 2011). Norway has a vast coastline boosting its fishing industry, with an impressive oil and gas sector, resulting in a high GDP per capita, whereby “people in their early thirties in Norway have an average annual disposable household income of around 460,000 kroner - around $56,200” (Savage, 2018). With the average price of EVs being around £44,000, many elsewhere in the world cannot afford the purchase, however, this is not the case for Norway (Yurday, 2020). The conspicuous consumption of EVs in Norway may be to show one’s wealth and social status, especially when speciality products are too expensive for the majority of the world’s inhabitants (Kenton, 2021).
Ostensibly, I believe consumer identity is inextricably linked with GDP per capita, whereby those who can afford an EV tend to own one to reflect their social class. As Norway has the highest EV consumption, and a staggering GDP per capita of $67,000, it is interesting to look at countries with a lower EV consumption and their GDP per capita (O’Neil, 2021). According to recent statistics, Turkey accounts for the least amount of EVs per person, at 54,959.7. This contrasts significantly with Norway’s 18.9 people per EV (Carwow, 2021). Turkey has a GDP per capita of $8,610, which correlates with its low consumption of EVs (O’Neil, 2021). This provides evidence that social class can be reflected through the conspicuous consumption of EVs. The high GDP per capita of Norway results in mass purchases of EVs, as the consumer identifies with its social class. This is not the case in countries with a low GDP per capita, which explains why Norway has the largest share of EV registrations in Europe and others are considerably lower (Wagner, 2021).
In addition to this sociological approach regarding social class, psychoanalytic approaches are often used to deconstruct consumer behaviour. The self-concept is regarded as one of the most impactful variables affecting consumer behaviour. A concept described as “the totality of the individual’s thoughts and feelings have reference to himself as an object”, whereby consumers can purchase and use products to define and enhance their self-concept (Rosenberg, 1979) (Zinkham & Hong, 1991). Here, the consumer is seeking out products to maintain a positive self-image, whilst also purchasing products that align similarly with their own views and image to maintain self-consistency (Toth, 2014).
As mentioned, purchasing an EV is a great environmentally cautious investment. Norway has ambitious goals to be carbon neutral by 2030 (Simpson, 2021). Such investment creates a positive self-image, as the consumer feels like they are contributing to Norway’s carbon- neutral goals. Additionally, as climate change is arguably the biggest threat to our planet, many consumers will also have a natural desire to reduce their carbon footprint. Aligning with their own views and image, this creates self-consistency. Thus, Norway’s consumption of EVs is influenced by a desire to enhance one’s self-concept.
Despite this, the validity of self-concept studies is questioned. This is because most studies to date “seem to be based on the congruence notion that consumers are motivated to approach those products which match their self-perceptions”, however, it is not clear on what congruence notion this was based upon (Sirgy, 1982, p.294).
Furthermore, another factor that has an immense impact on consumer behaviour is culture. The umbrella term culture is arguably the driving force behind Norway’s staggering registrations of EVs. Culture refers to the complex whole which is made up of knowledge, belief, laws, art, morals and other societal habits (Taylor, 1871). This defines different groups which make up society, including the economic and political systems (Solomon et al., 2013). For Norway, its national culture embodies a sustainable environment. This is implemented through various non-material culture components.
Within a culture the law expresses the order of things, guiding our behaviour (Rosen, 2017). In demanding for a more sustainable planet, national laws have been proposed for decades. Some of the notable events include the 2015 Paris Agreement, whereby a legally binding international climate change treaty to limit global warming below 2°C was signed and ratified by 187 countries (Buchner et al., 2019, p.2). Also, more recently, the COP26 summit that began on 31st October 2021 saw national laws being signed to double the amount of cash offered to vulnerable countries (Wertheimer, 2021). However, Norway goes above and beyond most countries in the vehicle industry, as they have set targets to phase out the sales of new fossil fuel vehicles by 2025. This is five years sooner than in the United Kingdom (Ulven & Sutterud, 2021). To meet this, the Norwegian government has implemented a vast variety of laws and incentives, which are embedded in culture. Norway sees gas and diesel vehicles far more expensive to own in comparison to other countries, as a result, taxation turns into incentives for purchasing an EV (Duffer, 2019). The Norwegian government decided that EVs should not be subject to road tax. Also, that they should be exempt from the 25% VAT rate. All whilst being able to drive in bus lanes, and discounted from costly parking, road and ferry tolls (Ulven & Sutterud, 2021). This allows brands such as Tesla to penetrate the Norwegian market and compete on price with the traditional combustion engines (Meaker, 2021). Such legislation encourages the purchase of EVs, through monetary benefits and promoting eco-friendly solutions. Combined with other important factors, this has proven to be very important to the consumption of EVs, as registration numbers continue to steadily increase (See Fig.2).
Moreover, other non-material culture components are important to the consumption of EVs in Norway. As mentioned, consumers are responsible for considering their impact on the environment, whilst minimising the damage caused to the planet (Cohen, 2021). This results in a shared sense of values. These values are particularly widespread in Norway, as a result of the ambitious carbon zero emissions by 2030 target. Such values will guide the consumer to make environmentally cautious decisions, like cutting down their red meat intake or purchasing an EV. Combined with laws and incentives, these values will eventually turn into norms. Norms are another big part of a culture, defined as unwritten rules or expectations that are enforced by society (Horne, 2018). With the abundance of laws, incentives, and common shared environmental values, it is likely that the ownership of EVs in Norway will soon become the norm (See Fig.3).
To further this, it has been rumoured that the Norwegian government may try and accelerate this process by implementing a new directive requiring most new vehicles bought by the public to be electric, from January 2022 (Hampel, 2021). If successful, by using non-material culture components, Norway would be illustrating levels of acculturation in this new environmentally conscious age; as consumers would have to adapt to life surrounded by a new cultural setting (Solomon et al., 2019).
To conclude, Norway’s impressively high consumption of EVs can be explored through the concepts and theories of motivation. Here, consumers may desire to act on their psychological needs, or perhaps resolve any moral dissonance due to inconsistencies
of EVs, as many adhere to an upper social class in Norway due to its GDP per capita. In response, consumers may desire to display their wealth and status through the purchase of a new EV, whilst enhancing one’s self-concept. Arguably, the most significant factor which can be directly linked to the EV consumption of Norway is culture. The role culture plays regarding laws, values and norms must be followed to meet Norway’s ambitious climate targets. Through exploring these topics, it is no surprise Norway is the leading force in the switch to EVs. What has been seen in Norway fits a global demand for the switch to EVs. This is illustrated in an article from Power Technology, stating:
“Electric vehicle (EV) sales have surged, with growth in all three top auto markets: China, the US, and Europe. Sales increased by 160% in the first half of 2021 from a year earlier, to 2.6 million units, representing 26% of new sales in the global automotive market” (Skidmore, 2021).
However, it is important not to disregard the wider context. As a result of Norway’s electrical innovation, they now rank second highest in the global consumption of electricity per capita (Eldelstein, 2021). This is by no means something to celebrate, and a major downside of the ambitious targets. Additionally, another noteworthy reason for Norway’s push for a sustainable transportation sector is because their power is mostly generated by coal plants. Therefore, to reduce its emissions, Norway has little choice but to look towards the transport sector (Henley & Ulven, 2020).
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