WTP for Luxury EVs and their Attributes: A Bayesian Approach to Highlight the Ecology Effect on DM

Environmental friendliness, ecology and sustainability are all concepts challenging today’s’ industry, especially the luxury market. This paper investigates the WTP for luxury electric vehicles and their attributes within the favorite brand. We therefore highlight the ecology effect on Decision making (loyalty vs. churning). The results show high preferences for ecology (reduction of Co2 emission) as well as a high loyalty level. Unlike previous investigations, we found out that prosperous clients are not accepting lower ranges and longer charging times, even if they possess multiple vehicles. Moreover, they are willing to pay up to 10% more for environmental friendly cars from favorite brand (assumption: quality doesn’t succumb status-quo). Serving these clients with the right product, allow luxury car manufacturers to charge significantly higher prices and therefore to increase profit and market share. Ignoring Ecology in the luxury car market results in customers’ churn.