Launching a New Car: Project Initiation and Planning

Value

Launching a new product into the market is always fraught with numerous challenges, the threat of being ousted from it by competitors, and the inability to address the financial risks being the key ones. Therefore, determining the business value of the project is crucial to the overall success of the venture and the management of the relevant obstacles that the project developers may have to deal with in the process. Therefore, identifying the project value is a crucial stage of creating the foundation for business success (Gray & Larson, 2011).

The identification of the value of the current project is especially significant. Given the fact that the automotive industry is already a very competitive area, with corporate monsters such as Toyota, Tesla, GM, and other organizations working on environmentally-friendly options for drivers, the plank has been raised very high. Thus, identifying the possible value of the identified project, with all possible expenses to be taken in the process, as well as the opportunities for managing the corporate assets accordingly, is imperative (Hartung, 2012).

The value of the project charter is going to be quite high. The improved engine specifications, which will allow boosting the performance of the vehicle to the nth degree, can be viewed as a significant competitive advantage that can be used to promote the car efficiently. While the expenses are bound to be rather numerous, it is expected that a cost-efficient strategy based on careful use of the companys resources and an adequate waste management approach will help address the identified issue (Gray & Larson, 2011).

Components

Seeing that the project in question is very large, it is going to have a range of components. Not only the production-related aspects of the project but also the ones associated with marketing, cost management, logistics, etc., will have to be addressed. Therefore, it will be reasonable to split the project into the following components:

  • Product design;
  • Target market research;
  • Financial strategy development;
  • Risk management strategy development;
  • Exit strategy identification;
  • Communication strategy development;
  • Promotion campaign;
  • Production of the car;
  • Product distribution.

Therefore, it will be imperative to consider all possible issues that may occur when entering the target market. The issues associated with the competition will have to be managed first so that the car could have a significant competitive advantage and attract the target audience successfully. By carrying out an efficient promotion campaign, one will be able to attain success. However, an exit strategy in case of failure will also have to be designed.

Stakeholders

The project implies collaboration between a number of experts and different teams. Therefore, there is a range of stakeholders in the project. Particularly, the project developers, managers, customers, shareholders, suppliers, distributors, and investors must be viewed as the key stakeholders of the project. It is essential that the needs of each must be taken into account and met accordingly when implementing the project.

Position Analysis

Project developers determine the success of the product in the target market, and, therefore, their position and attitude can be viewed as rather positive. Managers, in turn, control the crucial processes and help maintain the quality levels positive, which means that their position is neutral rather than negative. Customers will become the focus of the project, thus, setting their position and attitude as positive. The needs of shareholders are not to be underestimated, either; therefore, they take a positive position and attitude as well. Suppliers have a negative position and attitude in the context of the project since they have low bargaining power.

The same cannot be said about distributors, though; the identified stakeholders take the neutral position and attitude in the list of the significant stakeholders. Finally, investors provide the foundation for the development of a successful financial strategy, which means that their position and attitude are also positive (Sheldrake, 2014).

WBS

WBS: Essential Tasks.
Figure 1. WBS: Essential Tasks.
WBS: Essential Tasks (Continued).
Figure 2. WBS: Essential Tasks (Continued).
WBS: Gantt Chart.
Figure 3. WBS: Gantt Chart.
WBS: Gantt Chart (Continued).
Figure 4. WBS: Gantt Chart (Continued).

Cost and Time Estimates

As the WBS structure above shows, it is expected that the project will be completed within a month. It should be noted, though, that possible delays can be expected. To address the identified issue, one will have to consider using the latest time management techniques and communication tools. Thus, possible issues regarding the transportation process and communication with suppliers can be avoided.

It is assumed that the project will cost approximately $2,000,000. Most of the resources ($1,000,000 and $500,000) will be used to design the product and market it to the target population. Therefore, the R&D and Marketing Departments will be provided with the greatest amount of resources. The rest will be allocated in a sustainable manner to the Quality Management Department ($25,000), the risk management processes ($75,000), the rent ($350,000), and miscellaneous issues ($50,000).

Description

Creating the environment in which the project will thrive is crucial. Therefore, one must make sure that the project should be planned with all important elements in mind. Particularly, it will be necessary to adders the issues such as the choice of the leadership strategy, the tools for maintaining good quality standards, the proper use of the available resources (including financial ones), the design of appropriate communication tools for maintaining a connection with customers, suppliers, and other stakeholders, etc.

It is crucial to focus on setting the goals, identifying the resources, and designing an appropriate information management strategy first. Thus, the foundation for consistent improvement of the product and service quality can be created. Furthermore, the emphasis on corporate values and communication is bound to build the foundation for the successful representation of the car to the target customers (Brockmann, 2015).

Conducting extensive market research is the next essential step in building a sustainable approach toward introducing the car to the target environment. Before working on the competitive advantage and how it can be positioned, one should consider the specifics of the market, the customers needs and demands, especially as far as the technical characteristics of cars are concerned, etc. as a result, a range of errors and misunderstandings can be avoided successfully (Fleisher & Bensoussan, 2015).

The research results will pave the way for the identification of the strategies toward the product promotion, the choice of the marketing tools, the communication process between the target population and the company, the risk management approaches, etc. Furthermore, with a detailed overview of the competitors, their strengths and weaknesses, and the factors that affect the companys progress in the target market, one will be able to find the niche that the product in question can fill in the car market (Mohamad, 2015).

Communication Plan

Retail car companies should be viewed as the target audience for the project. To address the stakeholders in question, one will have to consider using both traditional and modern (IT) communication tools, such as social networks. The idea of a car that is environmentally friendlier than other products, cheaper than the available options, and is of high quality, will be delivered to the target audience. Social media, online advertisement, and direct (e-mail) marketing will be used as communication channels. Therefore, it will be necessary to contact potential customers directly.

Project Network

Project Network.
Figure 5. Project Network.

As the project network depicted above shows, there are certain time constraints within the project. Seeing that the stages of the project are interrelated, it will be necessary to make sure that all processes related to the project development should flow and that the information management should be carried out impeccably. As a result, the design of a flawless end product and the further provision of the services of the best quality can be expected. As the chart above shows, there is a need to focus on the development of the appropriate leadership strategy and the information management approach that will serve as the premises on which the rest of the strategies will be built.

Afterward, it will be crucial to focus on market research, which, in turn, will lead to a gradual development of the competitive advantage of the product. The tools for introducing the latter to the target audience, in turn, will be designed as soon as the previous stages are completed. Simultaneously, a coherent and mild promotion strategy, together with the application of the relevant marketing tools, will have to be used. Thus, the project will attract the attention of the target audiences. Furthermore, the absence of obtrusive elements and the use of positive and memorable messages will help cement the brand image in peoples minds, therefore, leading to a rapid increase in sales.

References

Brockmann, C. (2015). Sustainable supply chain management. Case studies in the consumer electronics industry. New York, NY: GRIN Verlag.

Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: Effective application of new and classic methods. New York, NY: FT Press.

Gray, E. W., & Larson, G. (2011). Project management (5th ed.). New York, NY: McGraw-Hill.

Hartung, A. (2012). Why Tesla is beating GM, Ford and Toyota: Electric cars. Forbes. Web.

Mohamad, M. (2015). Advertising and promotion. Marketing communications in advertising and promotion in business. New York, NY: GRIN Verlag.

Sheldrake, J. S. (2014). Technology, business and the market: From R&D to desirable products. London, UK: Ashgate Publishing, Ltd.

RedBus: Online Bus Tickets System

The case study in question is part of the online travel industry in India. RedBus is an online bus ticketing company that uses a real time and web-based portal that connects bus operators with potential customers. As a company, RedBus has an organizational structure in place under the leadership of three partners.

Problem statement

The previous manual bus ticketing system inconvenienced customers who considered it tedious. The bus operators also faced transparency issues with ticket dealers who were tasked with selling bus tickets. RedBus has introduced a web-based technology that allows customers to book tickets online and for bus operators to sell their tickets using the RedBus system.

Key issues

The key issues are the need to provide efficient bus ticketing services to bus operators as well as the provision of convenience to customers in need of bus ticketing services.

The decision makers are the partners, Phanindra Sama, Charan Padmaraju and Sudhakar Pasupunuri.

Solutions

RedBus operates an online web portal that allows bus operators to sell bus tickets directly to potential customers. In addition, customers can buy their bus tickets online, thereby creating convenience to clients.

Alternatives

RedBus can establish a bus company that takes advantage of its software. In addition, the company can also develop online software for use in other industries.

Assumptions

The assumptions are based on socio-economic, political and technological trends. In this case, it is projected that a global bus manufacturing unit will be established in India. In addition, the country will experience a mass migration of skilled labor to cities, as well as register an increase in mobile and technology penetration. As a result, the demand for bus ticketing services is likely, thereby translating to increased business for RedBus.

Strategies/analysis tools

Porters Five Forces analysis is the most applicable model in Redbus case. The model will assess the threat of new entrants as well as the availability of substitute products or services, the bargaining power of suppliers and customers and competitive rivalry in the industry.

Decision makers

RedBus has a partnership form of business ownership. As a result, the partners are the key decision makers in the company.

RedBus success

RedBus is a successful company. The company uses the parameters of customer satisfaction and technology as success indicators. The company has the largest online bus booking portal and the convenience provided to customers has been instrumental in the firms success.

Financial status

RedBus has a stable financial status. The company has three main revenue streams that have contributed to the steady rise of the firms financial growth from INR 0.4 million in 2007 to INR 345 million in 2012. The company also projected a profit of INR 10 milllion in 2012 as well as a cumulative profit in the following years.

RedBus has three main revenue streams: The sale of the Bus Operators Software System (BOSS) to bus operators, the sale of the Seat Seller system to Online Travel Agencies as well as commission sales of bus tickets through the RedBus website.

Competitive landscape

The online travel industry in India has experienced tremendous growth. The industry is segregated into rail travel taking up 20% of online travel bookings and air travel securing 60% of the market share. The remaining 20% is comprised of online bookings in travel, hotels, buses and cabs.

Competitive threats

RedBus competitive threats are the national and multinational entrants in the online travel industry.

RedBus strategy

The company strives to become the best online bus ticketing company in India. Therefore, RedBus should ensure that the technological standards of its online system are at par with developments in the travel industry. This approach will ensure customer needs are addressed; the stakeholders are able to get value for their time and money and the company achieves its goal of being the best online company in the industry. In addition, the company should introduce different service offerings in its portfolio. This diversification will ensure the company stays ahead of the competition, thereby maintaining the lead in the industry, as per Porters Five Forces. RedBus should also ensure efficiency and effectiveness of its online value chain system. The incorporation of user friendly controls will improve comprehension and ease of use of the system by stakeholders.

Business model

RedBus has adopted a partnership form of business. In this case, partners are involved in the companys growth plans and participate in the decision- making process.

RedBus resources

The companys technological resources provide a competitive advantage in the market. In this case, the company has invested in different software that has created convenience for bus operators and customers

Challenges and diversification

RedBus is struggling with the numerous growth challenges presented by the availability of different strategies. The companys impressive performance has advocated for the need for the company to transition from a small firm to a large and recognized company.

Diversification is not a driver for RedBus. The company only considers it as a growth option as it believes the focus on its core business will ensure the companys sustainability in the changing business landscape.

RedBus strengths and weaknesses

The company has a proper data management system. As a result, it is able to advise bus operators on the most profitable routes and hence improve their business relationships. In addition, the firms technological advances have created convenience to both customers and bus operators.

However the firm lacks a proper growth strategy in place. As a result, the firm could lose out on growth opportunities as it lacks a proper company growth structure and process.

RedBus growth options

Vertical integration- In this case, RedBus will invest in its own private buses, thereby taking advantage of the increase in demand for bus services.

Global expansion- Most countries do not have an online bus ticketing system, thereby providing an opportunity for RedBus to venture into such markets.

Portfolio offerings- RedBus will provide services such as online booking of hotels, cabs, air travel and vacation bookings.

Core business- RedBus will focus on online bus ticketing and improve on systems that will enable the company grow in this direction.

The next step for growth should be vertical integration. The company has a lot of data and the software to support its application thereby providing an additional revenue stream.

Recommendation

The firm should hire a management consultancy firm to guide the company in the transition process from a small firm to a large enterprise company.

Future of RedBus

In the next 3 years, the company will proceed with its upward-growth trajectory as a result of an increase in demand for bus ticketing services. In the next 5 years, the entry of multinational companies as a result of market liberalization will not affect the companys operations as it holds a relatively stable position in the market. In the next 7 years, the effects of competition will be felt by the firm if it fails to adopt the growth strategies as discussed in the paper. The next 10 years will see the development of a bus manufacturing unit in India. As a result, the potential for growth is tremendous.

Path Planning for Autonomous Underwater Vehicles

Depending on the objective, two types of path planning and simulation of unmanned underwater device trajectories should be allocated. These are the path from one point to the other and the complete grid coverage of the space (Panda et al., 2020). The initial analysis of both scenarios gives a vivid distinction between them: the declared aim of the vehicle. The path from point to point seems more primitive as the AUV must perform a straight-line motion in the water environment to the finish point. Nevertheless, more complex intelligent mechanisms of the machine allow it to bend an obstacle on the way, which actually makes the trajectory curved, but still one-dimensional. One can assume that the tasks of such design are to determine the distance between the points, safety, or smoothness of a particular route (Xue & Sun, 2018). Even if one admits that a two-point path is unrestricted and free of pre-planning intermediate points, grid designing is a more successful but time-consuming strategy. With this option, AUV should perform real-time space analysis to detect obstacles: this logic is the basis of most radars (Zhu et al., 2019). Accordingly, the overall objective of such design is to create a broad picture of underwater space for use in mapping purposes.

Regardless of the type of design, AUVs have a severe problem associated with increasing the environments pressure closer to the bottom of the reservoir. Sensitive electronics of the device can get out of control at high pressures, which means there is a need to isolate and seal the essential components of the device. On the other hand, the two-point path can be broken by obstacles in the way of AUV, especially if the device cannot overcome the barriers on its own. Currents also play a significant role in performance since the oncoming water flows force the device to use high engine power. For AUV, which analyzes the space on the principle of a grid, the same problems are true, but because of the more significant number of objects of analysis, the device can create a blurred picture. In particular, underwater shadows, gravity distortion, or bottom objects can be perceived as part of the space, which will deteriorate the overall appearance.

References

Panda, M., Das, B., Subudhi, B., & Pati, B. B. (2020). A Comprehensive review of path planning algorithms for autonomous underwater vehicles. International Journal of Automation and Computing, 17(3) 1-32.

Xue, Y., & Sun, J. Q. (2018). Solving the path planning problem in mobile robotics with the multi-objective evolutionary algorithm. Applied Sciences, 8(9), 1425-1446.

Zhu, D., Tian, C., Sun, B., & Luo, C. (2019). Complete coverage path planning of autonomous underwater vehicle based on GBNN algorithm. Journal of Intelligent & Robotic Systems, 94(1), 237-249.

The Death of 30 Chickens in the Car Accident

Today, on Monday, at about 6 pm, a terrible incident took place, which claimed 30 young chickens lives. They were headed to a new farm; there were about 300 of them in total. They were supposed to start a new round in Pilgrims Chickens development, but not all of them got there.

The accident happened at the corner of Waco Dr. And Valley Mill Drive. The driver of a truck full of chickens turned left in the wrong place. This set off a chain reaction and resulted in a pile of eleven cars. Fortunately, there were no deaths, except for chickens. However, the truck driver was injured and was taken to the hospital. Doctors report that his condition is stable and that full recovery is possible.

Drivers involved in this accident report that they had to wait for help long enough. They state that several eggs have dropped from the truck. One of the participants in the incident said that it was extremely hot at the site, and, probably, these eggs could become fried eggs for lunch for the drivers. Fortunately, help arrived on time, and no one had time to experience too much discomfort.

Pilgrims Chicken suffered losses due to the incident. The total cost of dead chickens is $200. The purpose of the transport was to provide new areas with the supply of eggs, but now production will slow down. Despite this, the companys damage did not have a significant negative impact on its economy. It will be able to provide customers with fresh eggs and deliver more chickens on the required farm.

Computational Engineering for Automobile Applications

Introduction

Processes involving mixing have been associated with chemical-manufacture processes often and have been known to be very instrumental to successes recorded in operating combustion-driven systems. Presently, several computational-fluid-dynamics (CFDs) who are engaged with processing chemicals in industries have to be capable of adopting the usage of simulations for validating insights into the entirety of performances of process-equipments. In any case, several times, there is encounter of challenges especially as linking CFD-data and proficient control and managing of articulately defined processes. Further, several times, there is an instance of delay in producing inclined to a corresponding cost-alternation or product-quality-changes; consequently, the significance of CFD which is peculiar in these aspects is made pronounced.

Whereas CFD is continuously accessed by analysts, managerial and operational complexities have continued to be noticed. This study is therefore relevant through its constructive analysis of flow characteristic involving recirculation/reattachment through the use of meshes structured using GAMBIT of 90-degree bend. Figure 1 illustrates geometry and mesh for a laminar flow case through a 90-Degree bend. Boundary parameters for the flow are produced and FLUENT (through FIELDVIEW: Figure 2) has been adopted for processing the various numerical models.

Heat transfer across the boundary and turbulence of the fluid are assumed to be negligible. Flow-characteristics including reattachment-point-of-the-recirculation are studied analytically. In similar studies conducted By Shariff (23), appreciable results were obtained through. Through the variation of mesh-fineness, mesh-fineness sensitivity for reattaching locations, a highly economical mesh-fineness is realized. Variation of Reynolds number to solidify the Reynolds-number  Reattachment-point relation is consolidated.

Geometry and mesh for a laminar flow case through a 90-degree bend.
Figure 1. Geometry and mesh for a laminar flow case through a 90-degree bend.
A series of poincareplanes used in an analysis of a gas turtine case model using FLUENT software (top) RANs turbulent model and (bottom) LES turbulent model.
Figure 2. A series of poincareplanes used in an analysis of a gas turtine case (specifically the GEAE L M8000) model using FLUENT software (top) RANs turbulent model and (bottom) LES turbulent model (Shariff 41).

Mesh Creation

Relating flow-data as is obtainable with mixing-time-scale for devising performances could be confrontational. Flow-visualization-method which is utilizable with iso-surfaces as well as with cutting-planes could be made use of in realizing the visual path of flow-topologies t rough ad-hoc ways. Equally, studies have reviewed that:

Streamlines and time-dependent streaklines also are effective at elucidating flow patterns. However, these approaches are limited in that they provide very little quantitative information on how flow patterns affect overall performance (Shariff 47).

The poincaré-plane-method was utilized at intelligence-light in the U.S whereby quantitative-time-scale information was generated through CFD-simulations (Zalc 9). Poincaré-planes were located at a number of places in the path of the flow- this displayed the time/location expressing the cross streaklines through a number of planes. According to Zalc:

Time scales obtained from these plots relate directly to how effective a mixing tank is or how efficiently a furnace or incinerator can be run (Zalc 11).

However, the approach is massive and capital intensive, thus for this study, GAMBIT is used to crate a mesh of 90 degree bend due to the based on the following merits:

  • The geometry is simple and structured mesh is regular and Cartesian (900);
  • Grids can be easily modified; and
  • It can be easily programmed (Zalc 12).

The meshing was conducted commencing with an averagely coursed; subsequently this was refined as an improvement aimed at realizing an increased mesh-cell numbers. Figure three illustrates the reframing of the meshes. Results generated from the arrange was then analyzed comparably. The reason for reselecting the meshes was based on the fat that:

  • Extremely coarse meshes would generate inaccurate solutions due to high permeability;
  • Extremely fine meshes would not generate any solutions due based on fluidal impermeability;

A good mesh is therefore essential in realizing valid solutions for data analysis.

Computational Domain and Grid of 900 Bend.
Figure 3. Computational Domain and Grid of 900 Bend.

Thus, the mesh was diversified to be fine at essential points of interest and coarse at others where there was no interest. Surfaces that where of high interest and relevant to the study include the following:

  • side-wall that is at the bend;
  • areas of the wall whereby the flow is continuously varying; and
  • Steps at which the separation process commenced.

Notably, coarse mesh is good when used in areas where the flows are constant or full developed as there is no change to observe and it saves computational time (Shariff 15)

Solution

A convergent solution is very vital in this particular instance to resolve the existence of a solution, and this is arrived at through fluent iteration. It should be known that the variation in the variation in the meshes could possibly have an effect on the iterations. A fine mesh results into a prolonged arrival at a solution. Equally, the setup residue in the fluent check contributes intensively to arrival at an accurate solution.

Figures below illustrate the relationship between meshes and flow properties.

Velocity vector of the flow.
Figure 4: Velocity vector of the flow.
Pressure contour of the flow.
Figure 5. Pressure contour of the flow.
The flow graph.
Figure 6. The flow graph.

Relationship between Reynolds number and reattachment location

Taking the most economical mesh from the previous analysis and running simulations on it when varying Reynolds numbers, the results are obtained as followed:

Data: Inlet velocity = 1 m/s

Density = 1 kg/m^3

Mesh size = 4200

Relationship between Reynolds number and reattachment location

It follows from the use of modified-Eulerian of the analysis of the particles of the fluid that the fluid in a continuum and the interpretation of its behavior is achieved through the application of a dual way couple. To properly express the behavior of the fluid, its transportation-equation is evaluated using the following equation:

Equation

The equation is derived through the subtraction of favre-average-momentum of the fluids equation from the time-dependent-momentum-equation as well as from particle-phases; and then generated fluctuating velocity-equation is multiplied the fluctuating-flux with the equation of particle-fluctuation. The turbulent equation is generated through the velocity-gradient of the flowing particles phases as shown below:

Equation

The term-of-interaction for the phases of the fluid is defined by the following equation:

Equation

In equation 3, m expresses the mass-ratio of the fluid-particle. According to Gggg, the dissipation term resulting from the fluid viscous effect is presented as follow:

Equation

Kg, Eg, EGP, And tp constitute the fluids turbulent-kinetic energy, fluid-eddy dissipation, combined fluid particle eddy-dissipation as well as relaxation-time appropriately. Be has an assumptive value of 0.4 and is a constant.

Streamwise fluid velocities along the bend.
Figure 7. Streamwise fluid velocities along the bend.

Summary

The summary for the flow is presented as follows:

Number of cells Reattachment point (m) Iteration convergence at
1050 4.00 120
2400 4.65 141
4200 4.80 163
6625 4.70 230

Table 1. flow summary.

Relationship between mesh size and reattachment loaction

Works Cited

Shariff, Leonard. Dynamical Systems Analysis of Fluid Transport In Time-Periodic Vortex Ring Flows. Ibadan: University Press, 2011. Print.

Zalc, Alvarez. Using CFD to Understand Chaotic Mixing in Laminar Stirred Tanks. Oxford: University Press, 2009. Print.

Autonomous Vehicles as a Replacement for the Human Workers

Introduction

Google Driverless Car (Wired 1)
Figure 1; Google Driverless Car (Wired 1)

The automobile industry was a significant game-changer in the 20th century in terms of technology. It is also safe to assume that the changes that are expected to happen in the automobile industry over the next twenty years will exceed the magnitude of the developments that have occurred over the last century. For instance, over the last century cars have had standard features that have included an engine, a steering system, and a driver element. However, recent developments in technology have brought about unimaginable additions to a standard automobile. Some of the technologies that are altering the face of the automobile industry include Global Positioning Technology (GPS), high-resolution imaging, infrared and radar scanning, and single platforms that can incorporate all this technology. When all these technologies are put together, they result in the autonomous car. The autonomous car is the standard name of the technology that brings about self-driving, driverless, and robotic cars. Autonomous vehicles have the capacity of carrying out normal transportation duties without the input of a human being. Like several other futuristic technologies, the autonomous vehicle in its current growth trajectory has threatened to replace human drivers in the next two decades. Several companies have produced prototypes of autonomous vehicle technology including Tesla and Google Inc. This paper explores autonomous vehicle technology and how it is expected to replace human workers within the next two decades.

The Autonomous Vehicle Technology

There are several angles when it comes to autonomous vehicles technology. However, self-driving vehicles are fast becoming a reality in the current technological environment. For instance, recently the tech giant Google announced that it has covered a mileage of over half a million miles using autonomous vehicles. Consequently, some observers have noted that by the year 2020, self-driven cars will be quite common, especially in the developed world. Autonomous vehicle technology has been developed in line with several considerations including safety and prompt service. Experiments to test the viability of autonomous cars date back to the 1920s when this concept was first hypothesized. However, it was not until the 1950s that the dream of autonomous vehicle technology started becoming a reality. The first complete units to feature autonomous vehicle technology were completed in the 1980s through collaborations between car industries and learning/research institutions. As late as 1987, over twenty car makers were in the race for the production of an autonomous vehicle including Mercedes Benz, Nissan, General Motors, Audi, Toyota, and Peugeot. By the late 1990s, the race for producing a fully functional autonomous car had attracted information technology companies that are mostly located in the now-famous Silicon Valley in California. The year 2013 was the year when autonomous car technology came to a full revolution. Several companies debuted prototype technologies that feature fully functional autonomous cars including Tesla, Mercedes, and Bosch.

A Prius Modified to operate without a Driver (Wired 1)
Figure 2: A Prius Modified to operate without a Driver (Wired 1)

Furthermore, the legislative policies that govern the automotive industry began accommodating the testing and potential rollouts of self-driven cars. In states such as Florida, California, Nevada, and Michigan, some laws outline the testing and development of self-driving cars in respect to the existing public transportation systems. In other parts of the world, some governments have resolved to develop transport systems that solely serve driverless vehicles. According to expert predictions 2020 is the most often quoted time frame for the availability of the next level of self-driving vehicles, with wider adoption happening between 2040 and 2050 (Silberg 4).

How the Vehicles Work

The concept of autonomous vehicles works in different categories depending on the level of functionality of the final product. Consequently, the term autonomous vehicles can also be used to describe cars that still require some degree of human input in their functionality. In a recent research article on the status of autonomous vehicle technology, the author points out that manufacturers have started offering a clear demarcation in their definitions (Benenson 6). Consequently, proposals have been forwarded to use the term autonomous vehicles to refer to machines that have both human-operated and automatic features. On the other hand, the proposal is to have the term self-driving vehicles as the standard for all vehicles that are fully automatic and ones that do not have pedals or steering wheels. The overall functionality of a self-driven vehicle is determined by the need to eliminate instances of human error thereby improving safety and efficiency. Complete self-driving technology will feature fully automatic safety-critical functions for the entire journey and the driver will not be expected to control the vehicle at any time from start to stop, and the vehicle can even be unoccupied (Lari, Douma, and Onyiah 45). The most common technological approach in a self-driving car is to make sure that the vehicle does not depend on any external technology input during its operations. Consequently, the vehicle will in essence be self-contained when it comes to command centers and power sources. Nevertheless, a self-driving vehicle can gather useful information from other cars although its core functionalities depend on internal installations. A self-driving car is expected to mimic the connectedness and operating system infrastructures of modern technology. Other features that are expected to be found in a self-driving vehicle include a cars ability to set safe speeds and its interaction with traffic lights. Automatic vehicles are also expected to perform better in traffic-congestion environments. The cars ability to avoid collision with others will also depend on the machines information collecting abilities. Debate is rife as to whether self-driving cars will require an overhaul of the current road infrastructure. However, most stakeholders agree with the fact that it is more practical to build an adaptive car that can operate on existing infrastructures. Overall, a self-driving car will feature some of the current vehicle technologies, sensors, and communicative elements.

Benefits of Autonomous Vehicles

The most significant benefit that is associated with autonomous vehicles is safety. The issue of safety in the automotive industry has always been a major concern for governments, individuals, and manufacturers. Self-driving vehicles come with the promise of high safety standards and capabilities and this is often a major selling point for this technology. It is estimated that over ninety percent of all road accidents are caused by human error (National Highway Traffic Safety Administration 4). Autonomous vehicle technology promises to eliminate accidents that are caused by human behaviors such as speeding, disregard of traffic rules, poor judgment, and other forms of incapacitation. Self-driving technology is also expected to curb the over 1.2 million deaths that are associated with global road accidents annually. In economic terms, self-driving cars are expected to reduce the cost of accidents and other road-related mishaps by at least seventeen billion dollars per year. Other economic benefits are associated with automated vehicles such as savings in fuel and decongestion costs. Self-driving cars are also expected to improve mobility and access among human beings. Currently, car usage depends on affordability and driving abilities. However, automated cars will make it possible for the elderly, children and disabled persons to access car transportation. Individuals who acted as drivers will also enjoy more flexibility because they can perform other roles in the course of their commute. Experts have also pointed out that self-driving vehicles will increase overall capacity in several ways. For example, roadway capacity improvements will ensure that there is a maximum number of cars per lane and per hour (Benenson 54).

A hypothetical Driverless Traffic System (Wired 1)
Figure 3: A hypothetical Driverless Traffic System (Wired 1)

The capacity for any infrastructure can be easily maximized in situations where vehicles are automated. Autonomous cars are expected to introduce diversity in terms of car designs. For instance, some automated cars may not require bulky features such as steering wheels, airbag systems, and pedals. The new car designs might make vehicles more efficient in terms of space and other consumer needs. A good example of how automated vehicle designs can look can be seen in Masdar City in the United Arab Emirates (Benenson 13). The designs of the driverless cars in Masdar City look like pods as opposed to them resembling the traditional car models. The benefits of autonomous cars are also expected to extend to the cost of ownership. The cost of owning a car normally depends on factors such as fuel, depreciation, interest rates, maintenance, taxes, and insurance. Factors such as insurance and maintenance costs are expected to be lower in the case of automated cars.

Impacts of Autonomous Vehicle Technology

Autonomous vehicle technology is considered an intrusive technology and it is likely to have far-reaching impacts. It is expected that self-driving will develop slowly just like other forms of technology, but it will have significant impacts on the job markets. Some workers are set to be completely replaced by autonomous vehicle technology. Some of these include individuals who drive buses, taxis, trucks, and other forms of public transportation. Furthermore, this technology is also set to make vehicle delivery personnel such as pizza and package delivery people outdated. Traffic controllers and policemen will also be non-existent when the autonomous technology becomes fully operational. Nevertheless, the technology will lead to the creation of new jobs including engineers and traffic monitoring individuals. Governments set policies for the rollout of any technology. In the case of automated vehicles, governments will have to change laws and policies to coincide with the concept of a driverless car. For instance, insurance and liabilities matters in case of accidents are expected to be passed on to car manufacturers and not owners. One observer notes that The driverless car will change the intimate relationship that has developed during the 20th century between the user and their automobile&.it will be an autonomous machine that does the users bidding in its own systematized way (Swan 6). This social impact will also affect the ownership element when it comes to motor vehicles. Cars without drivers might also compromise the privacy of their users but they might also improve the element of public security. When it comes to the environment, self-driving cars are expected to promote the current quest for use of renewable energy in motor vehicles. Manufacturers look forward to a time when the current reliance on oil will be phased out by a more affordable power alternative and the flexibility of autonomous cars might contribute towards the realization of this goal. The economics of land will also be affected by the institution of the self-driving car. For example, when using a self-driving car there is no pressure to reduce daily work commute. Consequently, congestion in cities will ease when individuals can get into a vehicle that drives them to work without any hustles. There have been numerous attempts to decongest urban areas, but autonomous vehicles might provide a lasting solution to this persistent problem. Due to constraints of parking space, most individuals find it difficult to use vehicles on a day-to-day basis. However, cars that can park themselves in far-away or less congested areas can eliminate this constraint.

Future Expectations

Various companies are in the process of finalizing their prototypes when it comes to autonomous vehicles. It is expected that most of the features that will finally be included in driverless vehicles will be first tested in the current car models. The final driverless vehicle is not expected to be complete for at least 15 years to come. The expected future developments in autonomous cars include the plans by carmaker Mercedes to introduce Autobahn Pilot aka Highway Pilot, the system allows hands-free highway driving with autonomous overtaking of other vehicles by 2016 (Payre, Cestac, and Delhomme 255). In addition, Google expects self-driven cars to become available for sale to the public in the year 2017. In the year 2035, it is expected that there will be a significant number of unoccupied self-driving cars on the roads.

References

Benenson, Rodrigo. Towards Urban Driverless Vehicles. International Journal of Vehicle Autonomous Systems 6.1-2 (2008): 4-23. Print.

Lari, Adeel, Frank Douma, and Ify Onyiah. Self-Driving Vehicles: Current Status of Autonomous Vehicle Development and Minnesota Policy Implications, Minnesota: University of Minnesota, 2014. Print.

National Highway Traffic Safety Administration. Preliminary Statement of Policy Concerning Automated Vehicles, Washington, DC: NHTSA, 2013. Print.

Payre, William, Julien Cestac, and Patricia Delhomme. Intention to Use a Fully Automated Car: Attitudes and a Priori Acceptability. Traffic Psychology and Behaviour 27.1 (2014): 252-263. Print.

Silberg, Gary. Self-driving cars: The Next Revolution. Center of Automotive Research 7.1 (2012): 2-26 Print.

Swan, Melanie. Connected Car: Quantified Self becomes Quantified Car. Journal of Sensor and Actuator Networks 4.1 (2015): 2-29. Print.

Wired. Autonomous Cars Wired. Conde Nast, 2015. Web.

Aspects of Autonomous Vehicles

The reality of unmanned automobiles is approaching as such corporations as Tesla are testing the possibility of using them. The technology has certain advantages, such as saving time for drivers, preventing DUI incidents, and making roads safe, potentially eliminating the existing limits. All vehicles will be autonomous in the best-case scenario, and traffic-related deaths will become a non-factor, with transit being faster. However, the technology also presents several ethical issues and may have glitches leading to accidents. For instance, it is not entirely clear who will be responsible for an unmanned car hitting a person, those inside or the company. Moreover, whether it will be possible to control a vehicle during emergencies is also a concern. In the worst-case scenario, such cars will have biased AIs that will target people not fitting certain standards or even non-customers (Lester). Realistically, the technology will probably not be widespread in 20 years, confined to the affluent, although they are likely to abuse it and avoid consequences.

Stoicism is originally an Ancient Greek school associated with Zeno, although its idea can be traced to Socrates, and it attempted to explain the universe, humans, and their relationship. It claims that the world is purposeful and benevolent and supposes that humanity plays a role in following the grand plan by controlling selfish desires and living by reason. Thus, logical thought is an important element of stoicism, ensuring overall harmony and happiness is the ultimate goal. However, the framework faces the same issue as Christianity in general: the nature of evil, which is explained either through human wickedness or the inability to perceive the great purpose. Thus, stoicism is based on logic, self-control, and the pursuit of a higher goal, shared by the world and all living beings.

Pragmatism is a subjective framework equalling reality to a process, which determines its absence of adherence to permanence. It claims that absolutes do not exist, links meaning to consequences, and believes in inherent neutrality (Barger 43). Pragmatism attributes the quality of being good to usefulness, which is evident in whether something helps achieve results (Barger 43). However, as nothing is permanent, it will remain in such a state until losing its utility (Barger 43). As far as the arbiter of usefulness is concerned, a collectives judgment is regarded more than an individuals, which is consistent with the pragmatic view on the whole (Barger 43). Transience may be considered a negative due to removing continuity of values and moral orienteers, although it facilitates personal freedom. Altogether, pragmatism emphasizes change, utility, and group opinion on whether something should be considered useful and, consequently, good.

A combination of stoicism and pragmatism may inform a course of action regarding the use of autonomous vehicles, despite the frameworks conflicting natures. First of all, the view that the outcome will be for the best no matter what should be adopted to avoid being disappointed in the technology. Everything should be driven by logic: accidents may provoke a reaction to abolish unmanned cars, and the lack thereof is likely to make society view them too positively; both views are extreme. What matters is whether they will be able to reduce accidents and fatalities while improving transit. If one condition is unmet, then society may deem autonomous vehicles useless. Conversely, suppose the technology helps address the primary issues but causes new ones, such as AI bias. In that case, a re-evaluation is necessary to protect the public and change its status. The companies will be the ones hindering the worlds benevolence while unmanned cars themselves are not inherently harmful, so additional chances to improve them may be given.

Works Cited

Barger, Robert N. Can We Find a Single Ethical Code? Computers, Ethics, and Society, 3rd ed., edited by M. David Ermann and Michele S. Shauf, Oxford University Press, 2002, pp. 42-47.

Lester, Caroline. A Study on Driverless-Car Ethics Offers a Troubling Look into Our Values. The New Yorker, 2019.

Tariffs on Car Imports in Ukraine

In March 2014, the Globe and Mail carried a story on Ukraines move to impose new tariffs on car imports and the possible economic consequences of this initiative. Ukraine is one of the newest members of the World Trade Organization. It joined the group in 2008. In addition, it is one of the western European nations seeking to join the European Union. However, this move is likely to affect Ukraines relationship with members of the two groups because it is an important vehicle importer.

The purpose of this paper is to develop a commentary that analyzes the economic impacts of the move. In particular, the analysis will apply some relevant economic concepts and theories to determine its advantages, disadvantages, and validity.

According to the article, Ukraine has imposed emergency tariffs valued between 6.5% and 13% on vehicle imports. It will apply to all passenger vehicles with engine capacities ranging between 1,000 and 2,000 ccs (Auyezov 1). The government reported that the purpose of increasing the tariff was to reduce the rate of decline in local vehicle production. It further argued that some local manufacturers had complained of reduced sales due to the presence of a huge number of imported vehicles, which tend to kill local production.

According to government statistics reported in the article, the country experienced a 79% decline in the local production of cars between 2008 and 2010 (Auyezov 1). Noteworthy, the new tariffs are added to the previous 10% duties on most imports. In addition, they are expected to be effective within 30 days (Auyezov 1).

A graph showing the declining production of light vehicles in Ukraine between 2008 and 2012
Figure 1: A graph showing the declining production of light vehicles in Ukraine between 2008 and 2012

Theoretically, a tariff is a tax imposed on imported goods and services. It has the effect of increasing the price of the target imports, which makes it possible for locally produced goods to increase their competitiveness. Consequently, the demand for the target goods falls. The demand for locally produced products is likely to increase significantly. A number of theoretical arguments are applicable in analyzing the case of Ukraine. Some theories can analyze the situation based on the economy and population (country size).

The theory of supply and demands attempts to explain the situation from a broader perspective. When a small country imposes an import tariff on a given product, the domestic price of that product rises by an amount equal or almost equal to the tariff (Emran and Stiglitz 504). Theoretically, foreign exporters do not change their price charged for the product in response to the tariff imposed. Thus, an increase in the domestic price of the product is the surest way of meeting the cost involved.

On the other hand, domestic producers of competing products are likely to gain from an increase in import tariffs because their products are not affected. First, consumers tend to avoid imported products due to increased prices (Emran and Stiglitz, 508). Secondly, local manufacturers get an increased price for their products. Thirdly, local producers increase their quantity of production. The government increases the amount of taxes collectible after the tariff is imposed (Emran and Stiglitz 508).

A supply-demand Curve showing the impact of the increased tariff.
Figure 2: A supply-demand Curve showing the impact of the increased tariff.

However, the long-term impacts of imposing a tariff on an imported product are relatively different. The additional loss is caused by the loss of consumer surplus because some consumers are squeezed out of the market when the tariff causes an increase in the domestic price, forcing some consumers to stop purchasing the product.

The effects of imposing a tariff on an imported product
Figure 3: The effects of imposing a tariff on an imported product

Ukraine is a small country, despite a large population. In particular, the number of people purchasing vehicles is relatively low. Ukrainians purchase about 237,600 vehicles per annum, but more than 204,950 are imported from other countries, including Russia, Germany, and Japan. This means that the country imports more than 86% of the total consumption. In addition, the country has little influence on the international price of products.

Ukraines declining sales and production of passenger vehicles
Figure 4: Ukraines declining sales and production of passenger vehicles

Therefore, Ukraine will face the problems outlined in the above theoretical framework. The tariff is expected to increase the rate of production at the local levels, increase the price of the imported vehicles, and enhance revenue. However, with a population with a low purchasing power, most people will be driven out of the car market, causing a decline in both the local sales as well as the collectible revenue.

Works Cited

Auyezov, O. Ukraine imposes new tariffs on car imports, risking EU ire. The Globe and Mail 2014: 23. Web.

Emran, S., and Joseph S. On selective indirect tax reform in developing countries.Journal of Public Economics 89.2 (2005): 599-623. Print.

Auto Car Companies Industry in China

With the ever-growing and stable development of Chinas economy, the Chinese domestic auto industry has become one of the most vibrant sectors of Chinas economy. Over the recent past, this industry has come up with new automobile brands that have made China to be ranked one of the leading automakers in the world. For example, Chinas sedan is one of the bestselling car brands in the world, something that is spreading to other brands, because of the emphasis placed by the Chinese government on the need for companies to produce independent car brands that meet the technological needs of the modern day societies.

In addition to meeting the technological demands of the contemporary societies, most Chinese auto manufacturers have also gone green, as most of them are venturing into manufacturing environmentally friendly cars. As research studies show, in 2008 China manufactured approximately nine million three hundred and forty five million cars, a figure that surpassed that of the United States. A year later, (in 2009) China was ranked as one of the worlds biggest one auto manufacturers after Japan.

Examples of the biggest car manufacturing companies in China include Shanghai Volkswagen Automotive Company, FAW-VW Automobile Company, Shanghai General Motors Company, Beijing Hyundai Motor Company, Dongfeng Nissan Limited, BYD Company limited, and Chery Automobile Company. Therefore, China is the only emerging global economies that have led the car manufacturing industry within a very short time, because of its ever-increasing demand volumes of autos that are not only technologically fit, but also environmentally friendly (Xinsheng and Xiaohui, 2008, pp. 1-6).

As compared to other car manufacturing companies in the world, most Chinese auto manufacturers use the most advanced technologies in their processes, because of the strong emphasis laid by these companies on cars that are of high technological standards and high added value. Currently, although numerous global automakers have gone a notch higher in their car manufacturing technologies, China is one of the new hot-bed technologically, because of the numerous new car brands that its companies manufacture. For example, to meet the needs of the common Chinese citizen, auto manufacturers have come up with brands such as the 2CVs; a car model with an air cooled engine, a high thermoplastic body, and reduced exhaust emissions.

Other companies such as the Volkswagen have ventured into enhancing its chico concept; a technological idea meant to produce car brands that meet the new global technological, economical, and environmental demands. On the other hand, most Chinese automakers such as SAIC Company have grown to be the best hybrid car manufacturers, as most companies aim to manufacture cars that have high fuel efficiency. Although most Chinese automakers work in partnerships with different international car manufacturers, the level of innovation in most companies that are based in China surpasses the technological development in other affiliated companies of most foreign car firms in other parts of the world. To always make sure that they maintain high technological standards, most Chinese automakers purchase technology from developed international firms, which they develop further to meet both local and international demands (Cooney, 2006, pp. 2-22).

In terms of sales, China is one of the emerging economies with the highest numbers of sales globally, as most Chinese auto manufacturers have expanded their market segment into most developed and developing countries such as the Britain, USA, India, France, and numerous Asian Countries. This has been made easy by the reduced government restrictions on the car manufacturing industry, for example, on joint ownership, and on import and export tariffs. Since 2005, there has a tremendous increase in the number of vehicles that are manufactured in China for both local uses and for export purposes. For example, in 2009 China sold 13.5 million cars; a figure that increased to seventeen million in 2010. Further, in the last few years some Giant Car manufacturing BYD, Chery, and Geely have topped the global car sales charts; hence, the nature of market share they usually enjoy in global markets (Xinsheng & Xiaohui, 2008, pp. 1-5).

In addition to leading technologically and in sales, Chinas car manufacturing companies have also excelled in producing environmental friendly cars, such as the electric cars. Over the recent past most car manufacturing companies have ventured into manufacturing energy saving autos, as one of the primary way of conserving the environment. These like efforts have succeeded in china, because of the numerous subsidies that are offered by Chinese government to companies that manufacture environmentally friendly cars. Between 2010 and early 2011, energy autos comprised five percent of the total number of cars that were manufactured in China, most of which were pure electric or plug-in hybrid or general hybrid.

As a result of the increased acceptance of such cars internally, most Chinese auto companies have high prospects that their energy cars will sell well in other global markets. Companies that manufacture energy cars in China include Byvin Corporation, Shijiazhuang Shuanghuan Automobile Company,BYD, and Xian Simo Motor Company. One factor that has promoted the quest by most Chinese auto companies to adapt the green technology is the increasing numbers of individuals who want private cars. Therefore, to ensure that these companies control the amount of pollution from cars, most Chinese auto companies are the world leaders in promoting the manufacture of environmentally friendly cars (Tiezheng, 2010, p.1).

Although most Chinese manufacturing companies have excelled in terms of technology sales, and in protecting the environment, as research studies show most nations degrade car products from China, because of their quality. As Xinsheng and Xiaohu (2008, p.4) states, majority of products from China re low grades; hence, the reduced amount of foreign exchange that the country earns from its exports. Majority of the car brands manufactured in China are meant to suit the budget of an average Chinese earner. Therefore, in most cases, such car products do not meet the required standard car requirements of most developed nations. Regardless of this, some Chinese auto companies have endeavored to produce cars that can exported to most developed countries for example, Cheryls Seolin and BYD S8.

One of the biggest car manufacturing companies in China is Shijiazhuang Shuanghuan Automobile Company. Shuanghuan Automobile Company is one of the biggest commercial car manufacturers in China, known well for its different types of hybrids and classic SUVS. It is also known for its advanced technologies in pressing, welding, painting and assembling. The company has existed since 1988, although it received its authentication and verification in 1995. The company is owned by Zhigang Zhao and its headquarters are found in Qiaodong, Shijiazhuang, Hebei, China.

Shuanghuan Automobile Company was ISO9000 quality control system certified in 2000. Since its establishment, the company has exported thousands of cars and it is recognized internationally; hence, the nature of market acceptance it products rseceive internationally in countries such as North and South America, Southeast Asia, Middle East, Africa, and some European countries. Examples of cars that are manufactured by this company include Shuanghuan Laibao, Jiaolian, Rabo, different makes of electric cars, SUVs, and mini noble cars (Shijiazhuang Shuanghuan Automobile Company 1).

In conclusion, China has always shone technologically and is one of the fastest growing economies; hence, the nature of acceptance it receives in most global economies. Therefore, with the ever-increasing technological advancements that most Chinese auto companies are adopting, likelihoods of China becoming the best global leader in car manufacturing are high. This is something that other auto manufacturing countries should take note of to avoid being left behind in their ventures to shine also.

References

Cooney, S. 2006. Chinas impact on the U.S. automotive industry. CRS report for Congress.

Shijiazhuang Shuanghuan Automobile Company, 2011. Shijiazhuang Shuanghuan Automobile Company profile. Web.

Tiezheng, L. 2010. China pushes for green-car development. Web.

Xinsheng, W., & Xiaohui, F. 2008. Analysis and evaluation of the development strategy of Chinas family cars industrial independent brands. Web.

Consumer Decision-Making Process in the Automobile Industry

Introduction

Vast literatures suggest that numerous environmental problems occur due to human economic activities. These activities, as Transport Technologies and Policy Scenarios to 2050 (2007) asserts, cause deposition of masses of pollutants into the environment to the extent that they destroys the natural beauty. In addition, economic activities consume enormous amount of natural resources, leading to their depletion. This nuisance breeds harms that entail global warming, loss of biodiversity, climatic changes, as well as pollution to the environment. Due to the Sky rocketing cost of fuel for running engines and need to protect the environment, green cars plays a crucial role in automobile purchase. Even though evidence indicates that most of the studies are geared towards lessening pollution, only a handful describes customers behaviours and purchasing needs of green cars (Ramseur 2007, p. 16; Vermeir and Verbeke 2006, p. 9). This paper discus factors that influence decision-making process for customers to purchase green cars. For this reason, to measure the customers purchasing behaviour for these green cars, this research proposes the Theory of Planning Behaviour (TPB).

Green Cars

Green cars also known as environmentally friendly vehicles are cars that produce a reduced amount of pollution into the environment. In support, Baumann, Boons, and Bragd (2002, p. 412) claim that reduced pollution is purported to lessen impact of the effects to the environment as compared to the conventional vehicles that operates on combustible engines. Turrentine and Kurani (2001) state that environmentally friendly vehicles are powered by alternative fuels or operate by using advanced vehicle technology, such as use of hydrogen, compressed air, or plug-in hybrid vehicle. All these efforts aims to reduce greenhouse gas emission, air pollution or promote self-dependency on energy by reducing importation of oil for the involved state. Despite the attempt by authors to define environmentally friendly products, to date majority of both consumers and companies alike do not understand green products (Chan 2001, p. 396). Development indicates that some authors have focused not only on designing environmentally friendly products, but also emphasises on marketing of these environmentally friendly products since consumers have showed great interest and attention to them (Chen, Gillenson, and Sherrell 2002, p. 710; HongYoul 2012, p. 464)

Environmentally friendly products describe the best example of the disparities that exists between consumer and companies. For instance, consumers demand for cheap fuel, and, at the same time, caring for their engines has enhanced pollution since cheap fuels pollute environment, thereby destroying the natural environment (Podsakoff, MacKenzie, Lee, and Podsakoff 2003, p. 896). However, the commonality in the two is that it is the duty of both the consumers and companies to protect the environment. This is a proof of the difficulty in striking equilibrium between the needs and desires of consumers, as well as implementing the roles of the automobile firms. To investigate the relationship between consumers needs and the characteristics of environmentally friendly cars, Chang (2010, p. 1393) put forward a criterion known as SEEDS to describe the relationship within the economic sides, aspects of demand, supply side, substitute side, and features of environmental protection. Similarly, since the environment worsens on a rapid upward move, it is evident that most consumers have recognised the effect of this problem (McAlexander, Kim, and Roberts 2003, p. 7). The companies producing green cars should utilise this to manufacture environmentally friendly cars to match the consumers need. This is described as design in adherence to match the consumers demands (Lantos, Brady, and McCaskey 2009, p. 428). The automobile firms have to conduct an inclusive market research in order to comprehend and incorporate the needs of consumers when designing the vehicles.

Engaging Consumers in Marketing of Automobile

Consumer engagement is an important aspect of relationship marketing. Vivek, Beatty, and Morgan (2010, p. 126) define consumer engagement as the passion of an individual to participate and bond with an organisations activities or products. Either the firm or the individual consumer can initiate this relationship. Van Doorn et al. (2010, p. 256) and Aronson, Wilson, and Akert (2003) agree that the coexistence entails behavioural, cognitive, social, and emotional elements. The phenomenal of engaging consumers is a rather a new idea in the marketing literature. However, the phenomenal has drastically risen to become so popular. The rise is attributed to the discovery of the attention and impact that direct engagement of consumers have to the industry. Coupled with the increase in competition, this strategy has a key role in enhancing a firms performance. Moreover, direct engagement of consumers awakens awareness about new products in the market (Lusch and Vargo 2006, p. 286). At the same time, direct engagement with customers enlightens the end-users on the superiority of ones products over others.

Sprott, Czellar, and Spangenberg (2009, p. 96) accentuate that to explain the behaviour of customer far above just business deals and acquisition of products or a companys services, the firm is obliged to engage its customers. Unlike it was in the past where the company only focused on transaction relationships for their products, in the contemporary society, focus of marketing has shifted from one centred on products to rather marketing that is centred on customers (Schau, Muniz, and Arnould 2009, p. 47). This change has erased the perception of considering consumers as passive recipient to active factors of trade. This shift makes consumer the valuable objects of trade. According to Van Doorn (2011, p. 282), this shift has broadened marketing strategies, forcing marketers to analyse the consumers behavioural intentions.

Consumers Decision-Making Process

Continually, consumers make decisions that regard to choices, use, and purchase of both products and services. The decisions made by the consumers are of significance to both these consumers and to the entire business fraternity (Roy, Butaney, and Bhutaney 2009; Phillips, Holley, Bates, and Fresstone 2002, p. 27). Since there is always a wide range of options before making decisions, this presents a challenge to both consumers and companies. This complexity in understanding consumers decision-making has provoked curiosity amongst researchers of consumer science and business experts alike (Price 2001, p. 337; Iwasaki and Havitz 2004, p. 45). This has seen them examine the key considerations of consumer in making decision. As evidenced, most of the research works approach their analysis from an economic perspective, thus their focus is on the purchase act. From this perspective, the researchers utilise the utility theory to understand consumer decision-making process. The utility theory as understood proposes that consumers make decisions in reference to the perceived outcomes of their decisions (Day 1999).

Theory of planning behaviour (TPB) model

The Theory of Planning Behaviour emerged in response to a theory that existed in which they have close connection. This was the Theory of Reasoned Action (TRA) (Kumar 2012, p. 28) indicates that in the theory of reasoned action, an individuals intention is the main point to influence their behaviours. Hence, the behaviour of a consumer is evaluated from the frequent they involve in such actions. This theory assesses the intention of consumer by analysing the consumers attitude and subject of norm. In this, determination of intention by use of attitude encompasses the entire evaluation of behaviour. It includes salient beliefs that entail the professed likelihood of reactions for such specific behaviour in comparison to factual reactions for the behaviour (Armitage and Conner 2001, p. 473). The determination of behaviours by use of subjective customs is understood as the pressure that comes from the surrounding environment. Concisely, theory of reasoned action seemed to work in quite a number of situations, however, empirical research determined that TRA is limited to deal with behaviours that are totally under the consumers volitional control. Responding to the named limitation, a theory of planned behaviour was proposed (Feng 2007, p. 328). According to Kaiser (2006, p. 74), the Theory of Planned Behaviour was intended to deal with behaviours that did not fall under consumers complete volitional control.

The Theory of Planned Behaviour model has numerous similarities with the TRA with exception of an additional perceived behaviour control to its model. This perceived behaviour control synthesises the simplicity or complexity for an individual to execute behaviour. Richarme (2005) points out that perceived behaviour control involves availability of essential skills, accessibility to resources and chance for performing behaviour. All these as subjective to apparent possibility for the action to ease or hinder the behaviour entails the perceived behaviour. This theory purport that the perceived behaviour control determines consumers intentions as well as the individuals behaviour directly, making it gain abundant support in predicting abundant range of intention (Schiffman and Kanuk 2000).

Determined to understand the link between belief formation and background of intention, many of the researchers and scholars alike have scrutinise approaches to vanishing attitudinal beliefs (Ajzen 2002, p. 667).On one hand, some of these scholars claim that the component of belief that can be recognised can never be organised into a solitary conceptual (Buchanan 2008, p. 211). On the other hand, some scholars have determined that in the Theory of Planned Behaviour, normative, attitudinal as well as control beliefs are vanishing as a multidimensional belief formation is taking over. Jonathan (2007) affirms that, in relation to innovation theory of TPB model, attitudinal beliefs contains three innovation characteristics that are likely to manipulate behavioural intentions of an individual. These three characteristics are relative advantage, compatibility, and complexity. Considering the intention and objectives for the development of green technology, this technology should be regarded as service innovation (Understanding how Individuals Make Travel and Location Decisions 2008). Thus, discussing consumer decision making, this study suppose that Theory of planned behaviour model exclusively elaborates the behavioural intention for consumers to prefer environmentally friendly cars.

Aboelmaged (2010, p. 404) establishes that TPB model expounds on TRA models failure to account for circumstances where individual consumers cannot completely control their behaviour intentions. In this, TPB claims that the concrete action of purchasing is determined by not only one factor, but both the behavioural intentions as well as the capability to control the behaviour. In the behavioural intention, personal preference and wish influences consumers ultimate choice. This is commonly in the TRA, whereas TPB integrates the perceived behavioural control (Verhoef, Reinartz, and Krafft 2010, p. 248). In the TPB that utilises the perceived behavioural control, a consumer does not analyse the two factors, but numerous issues before making the actual purchase. Amongst the factors to consider in TPB are the numbers of resources and opportunities available to the consumers, the challenges they might face in using the product as well as the environmental impact of using the product (Ha and Swinder 2012, p. 463). This confirms that TPB model elaborates the consumers behavioural intention in purchasing green cars.

Behavioural intention is the first and major point in consumer decision-making process. In this face of the purchase, the product is wholly rooted into a consumers mind (Lusch 2007, p. 265). As a result, the consumer develops an intimate connection with product making them always opt for the product. For the manufacturers of green cars, to entice consumers and influence their decision-making, the firms should establish a model that enlightens the consumers on the benefits of green cars. This should include benefits to both to the individual and the environment. To propose this model, it is necessary to understand that different people have different attitudes that are influenced by various factors. Despite these differences, Chung (2006) notes that each person uses his/her own attitude to devise his/her likes and wants. However, common aspects that have great impacts on an individuals behavioural attitude include knowledge, characteristics of product, personal attitude, and the norm surrounding the individual.

Conclusion

According to this study, consumers decision-making process follows a sequential process. To understand these sequences, the company must understand the consumers behavioural intention. These behavioural intentions can only be examined by engaging the end-users effectively. Notably, engagement of consumers starts at the cognitive level since it is more associated to the consumers emotional behaviour. Tactically, to understand behavioural intentions of consumers, scholars have varied theoretical models in this subject. Based on the forces in this field, environmentally friendly cars as a new technology, which its invention was in response to both the consumers and companies demand would preferably succeed by deploying the TPB model.

References

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