Moderating Effect of Tax Exemption on Purchase Intention of Green Cars in Malaysia

Abstract

Sustainable consumption is essential for humanity, achieved through the practice of sustainable lifestyles. Hence, renewable resource utilisation derived from ethical consumerism is necessary. The adoption of green transportation is a catalyst. A green car in Malaysia refers to either a hybrid vehicle (HV), plug-in hybrid electric vehicle (PHEV) or electric vehicle (EV). With 90 per cent of its vehicles being fossil-fueled, Malaysia is far behind in its aspiration to adopt green transportation. Hence, proactive actions must be taken to accelerate the adoption of green cars in Malaysia. As the challenges faced by Malaysia are different from other developed countries, this study looks into the moderating effect of tax exemption on the relationship between social influence and willingness to pay on purchase intention of green cars in Malaysia. Specifically, this study adopted marketing as the domain of study, with purchase intention as the central idea. It is a quantitative study based on the deductive research approach. This study chose the Theory of Planned Behaviour and Operant Conditioning Theory as its underpinning theories. The sampling technique adopted would be stratified random sampling via a self-constructed questionnaire. It will collect data from 384 respondents using a questionnaire and analyse it statistically using the SPSS and SmartPLS statistical tools.