This case looks at the possibility of hybrid electric vehicles in the United States. It seeks to delve into the pressures on the automotive industry to produce a commercially viable but environmentally friendly vehicle as well as on the possible consumer reactions with regards to the purchase of those vehicles. It also looks into the history of endeavors seeking to produce electric vehicles, hybrid electric vehicles, and fuel-cell vehicles over the years. Finally, this case presents the issue of whether and why hybrid electric vehicles will succeed where other alternative-fuel vehicles have failed.
John T. Gourville, David Lane, Alice Tzou
Harvard Business School (511125-PDF-ENG)
Feb 1, 2002 (Revision: Apr 14, 2011)
Case questions answered:
- The case discusses the Good, the Bad, and the Ugly reviews of the Hybrid Electric Vehicles (HEV). In the reading, Rogers talks about the five general attributes of innovations that play a part in the adoption of new innovations. Explain why you like or dislike the idea of HEVs, give examples from the case to back up your reasoning, and explain how the HEVs fall into one or more of the five attributes Rogers describes.
- The case talks about how even though consumers may complain about gas prices when it comes to buying a new vehicle, gas mileage is not a top priority. Do you think that consumers really think of gas mileage as a secondary attribute? Do you think that people’s priorities have changed over the past 10 years?
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Future of Hybrid Electric Vehicles Case Answers
The case study discusses the Good, the Bad, and the Ugly reviews of the Hybrid Electric Vehicles (HEV). In the reading, Rogers talks about the five general attributes of innovations that play a part in the adoption of new innovations. Explain why you like or dislike the idea of HEVs, give examples from the case to back up your reasoning, and explain how the HEVs fall into one or more of the five attributes Rogers describes.
Moore and Benbasat (1991) analyze Roger’s five Perceived Characteristics of Innovating (1983) used in technology diffusion: relative advantage, compatibility, complexity observability, and trialability, such technology as Hybrid Electric Vehicles (HEVs).
HEVs are mobile vehicles that utilize two sources of power, a gasoline engine, and an electric engine, to achieve propulsion.
The Good of the HEV is its potential to reduce gasoline consumption, therefore increasing mileage by up to 100% and cost-effectiveness, which is an innovation of its kind, as it also releases fewer emissions into the atmosphere than gasoline-only mobile vehicles do (Courville, Lane and Tzou, 2011), thereby giving it the relative advantage characteristic; the innovation is better than its precursor.
This is why I like the HEV…
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