Persuasive Challenges in the Automobile Industry: Marketing Alternatively-Propelled Vehicles to the Public

Persuasive Challenges in the Automobile Industry: Marketing Alternatively-propelled Vehicles to the Public

Thesis By Jessica Grmelová

Submitted in Partial Fulfillment of the Requirements for the degree of Bachelor of Arts In Communication and Mass Media

State University of New York Empire State College 2018

Reader: Dr. Todd Nesbitt

I, Jessica Grmelová, declare that the paper entitled:

Persuasive Challenges in the Automobile Industry: Marketing Alternatively-propelled

Vehicles to the Public

was written by myself independently, using the sources and information listed in the list of references. I am aware that my work will be published in accordance with § 47b of Act No.

111/1998 Coll., On Higher Education Institutions, as amended, and in accordance with the valid publication guidelines for university graduate theses.

Prohlašuji, že jsem tuto práci vypracoval/a samostatně s použitím uvedené literatury a zdrojů informací. Jsem vědom/a, že moje práce bude zveřejněna v souladu s § 47b zákona č.

111/1998 Sb., o vysokých školách ve znění pozdějších předpisů, a v souladu s platnou

Směrnicí o zveřejňování vysokoškolských závěrečných prací.

In Prague, 20. 4. 2018 Jessica Grmelová

ACKNOWLEDGEMENT

I would like to express my sincere gratitude and gratefulness to the following people:

First person that must be mentioned here is Dr. Todd Nesbitt, who patiently guided me through the whole process of writing this thesis. His words of encouragement and advices were highly appreciated.

Jason Wangle for proofreading my thesis and giving me some constructive criticism.

Ondřej Haman for patiently guiding me through the process of formatting the paper and giving me emotional support.

My family and dog for emotional support and always being there for me when I needed a hug.

TABLE OF CONTENTS

ACKNOWLEDGEMENT ...... 3 ABSTRACT ...... 6 1.0 INTRODUCTION ...... 7 2.0 HISTORY OF AUTOMOBILE INDUSTRY ...... 11 2.1 The emergence of the automobile ...... 11 2.2 From skepticism to profit ...... 12 2.3 The influence of the Model T ...... 13 2.4 The shift to assembly-line production and mass-consumption ...... 14 2.5 Electric vehicles ...... 15 3.0 THE ENVIRONMENT AND AUTOMOBILES ...... 17 3.1 “Eco-innovations” ...... 17 3.2 Climate change ...... 19 3.3 Future developments in Europe ...... 19 3.3.1 Emission regulations in the EU – history ...... 20 3.3.2 Emission regulations in EU – progress and development ...... 20 3.4 Discrepancies of emissions in real life ...... 21 3.4.1 What these regulations mean ...... 22 4.0 PERSUASIVE APPROACHES ...... 24 4.1 Social marketing ...... 24 4.1.1 Attitudes, beliefs and values ...... 25 4.1.2 Social marketing and social change ...... 26 4.2 Understanding persuasion ...... 27 4.2.1 Advertising with persuasion ...... 27 4.2.2 Advertising appeals ...... 28 4.2.3 Social media and persuasion ...... 29 4.2.4 Green marketing ...... 29 5.0 THE PSYCHOLOGY OF THE TARGET AUDIENCE ...... 31 5.1 Resistance against green advertising ...... 31 5.2 Reasons against adoption of alternative vehicles ...... 32 5.2.1 Adoption of innovation – acceptance of alternative vehicles ...... 32 5.3 The Weberian integrative frame work ...... 33 5.4 The need for vehicles ...... 34 5.5 The psychology behind car choices ...... 35

5.6 Reasons for adoption of alternative vehicles ...... 36 6.0 CASE STUDIES: ALTERNATIVELY-PROPELLED VEHICLES COMMUNICATED BY BMW, AUDI AND MERCEDES-BENZ ...... 37 6.1 Introduction ...... 37 6.2 Methods ...... 38 6.3 Findings ...... 38 6.3.1 BMW ...... 38 6.3.2 Audi ...... 41 6.3.3 Mercedes-Benz ...... 44 6.4 Discussion ...... 46 7.0 CONCLUSION ...... 47 APPENDICES ...... 49 WORKS CITED ...... 61 BIBLIOGRAPHY ...... 64

ABSTRACT

This thesis examines the challenges of communicating the shift from gasoline-powered cars to more ecological vehicles to the public. The paper traces the history of the automobile industry, and how it evolved to the point of the need to sell alternative vehicles in the context of recent European Union regulations. It analyzes persuasive approaches regarding the selling of ecological products, examines the psychology behind the people’s choices of vehicles, and the particular difficulty of communicating the change in power-trains. An analysis of samples of persuasive communications of

BMW, Audi and Mercedes-Benz alternatively-propelled vehicles serves to provide examples of the challenge involved in designing communication strategies for alternative vehicles.

1.0 INTRODUCTION

It is important to know why car manufacturers have switched to alternatively-propelled cars, which vehicles exactly these are and generally the background of how they came to be. The reason is to understand the motivation of the manufacturers and its marketers to persuade the consumers to a switch in thinking. Nowadays car manufacturers are all competing and trying to come up with the best alternative powertrains. This paper aims to show how the automobile manufacturers communicate alternative and new products, not the “usual” ones, because that has been done many times before.

The switch to electric cars is because of two reasons – the first one is that it is now fashionable to live ecologically, meaning people try to produce as little waste as possible, use less energy and altogether live more sustainably. This is the aim of electric cars as well and the second one is, because the European Union pushes car manufacturers with their laws and regulations to produce low-emission cars and furthermore they are trying to get rid of diesel cars completely, which results in the industry having to adapt and developealternative power trains. Many people from the car community are not big fans of this change, because these cars do not handle like the old ones do, but if the companies fix the glitches, it might work.

The goal of this research is to examine communication strategies associated with electric- powered cars, in order to understand the approaches used to persuade the public to accept ecological approaches to transportation.

The brands mentioned in this research will be BMW, Audi and lastly Mercedes. All these brands compete for customers, as they have almost the same audience, or target group. Still, each of these brands communicate differently on different channels. Since these are innovative products, this paper will focus on the innovative methods of communication – social media. One could have chosen only the sports car models from each of these brands –

7 the ///M division from BMW, the RS division from Audi and the AMG division from

Mercedes, which are to some people more interesting, but this paper should show how such complex and new cars are communicated, to the target audience, as it seems like these will soon be highly in demand.

According to Rouse and Haughn (n.d.) alternative fuel vehicles are those which run on substances other than petroleum gas or diesel. This includes also propane, natural gas and others, but this paper will focus only on such vehicles that run purely on electricity or are hybrid (gas and electricity) or plug-in hybrids. Examples of these cars are, cars of BMW’s i- division, Audi’s e-tron and Mercedes’ EQ branch.

The BMW i-division of the company has only two models so far. The i3 and the i8, both of which are fairly pricey cars, yet people demand them quite a lot. This may be a testament of how BMW successfully communicates these vehicles. In the Audi brand these are cars with the badge e-tron and Mercedes is starting its EQ branch. Each of these have something different to offer. Whether it is the unique and futuristic design with the BMWs or the appeal of Audi on the SUV segment with its Audi Q7 e-tron Quattro which combines the possibility of low-emissions in a big car and a well-known 4-wheel drive system. The question therefore is how do these individual brands persuade people to buy their cars?

There are, three types of alternative vehicles. According to Carley (2014) there are Battery

Electric Vehicles (BEV), which run purely on electricity without any usage of gasoline or other power trains. The problem here is that they are usually very expensive and have a shorter driving range. There has been great progress in this department, and people do not have to worry as much as they did before. The same goes for the charging issue, it now takes less time to charge the car fully than it did before. Secondly, there are Plug-in Hybrid Electric

Vehicles (PHEV) which run on an electric motor or batteries, but can be supported by a gasoline engine. They can run on either the electric motor completely or on gasoline engine, if

8 the batteries are low, but they can also run on both at the same time, as for instance the

BMW’s i8 does, when full power is needed. These cars of course have lower emissions than other cars, but they do produce some emissions due to the usage of an internal combustion engine. Lastly, Hybrid Electric Vehicle (HEV) are those which again have a gasoline engine and an electric engine or batteries. These vehicles are, however charged through the gasoline engine or regenerative breaking which means that when the driver brakes, the energy from the act of braking goes back into the batteries or engine, so that less power is lost, and sustainability is ensured. These cars have the advantage of longer range and less emissions than standard cars, but the cars are very complex and therefore prone to many issues.

The main problem that many people have with these vehicles, is that there are not enough power stations to recharge the batteries in the cars, should they run out of power. Another issue is that even when you find one, if you are in a foreign country, the machine may not accept your charging card which is a special card for charging the car and then you have a problem. , Another issue is, these cars are usually fairly heavy, because of the batteries and all the technology. There are discussions, whether these cars actually are as eco-friendly as they are marketed to be, more so when the manufacture of the cars’ components takes its toll on the environment, too. This paper aims to help analyze how the manufacturers tackle these counter-arguments and how they communicate the cars’ advantages. Another issue with charging is that is simply takes too long. Nowadays, people are tremendously busy, and they need to get from point A to point B as fast as possible. If the car is out of petrol, one simply goes to a gas station and fills up within minutes. This is not the case, though, with alternatively-powered vehicles. Charging to 100% of the capacity of the battery can take up to 6 hours or more. There are some fast-charging stations, the problem is that they are not able to charge the car to 100% capacity. They also wear down the life-time of the batteries,

9 because it damages the longevity of the batteries to push them to near capacity in a very short amount of time.

Ecological concerns have brought about regulations to the automobile industry in a number of countries, leading a number of firms to pledge to focus on the design and implementation of alternative products. Nevertheless, persuading the public to accept these new approaches poses challenges. This paper seeks to understand what communication strategies may be effective in changing public opinion in this context, how automobile manufacturers are responding to the challenge of negative attitudes towards the shift to alternatively-propelled vehicles and their successes and failures.

2.0 HISTORY OF AUTOMOBILE INDUSTRY

As Nieuwenhuis and Wells note in the book The global automotive industry (2015), car production is not sustainable, both environmentally, as well as economically, because it overcomes crises that may have an impact on the industry with difficulty. It has such a complex structure and so many other businesses, manufacturers (of supplied parts), and the transportation of parts, are involved. One cannot say with certainty if it ever will be sustainable with the current structure, the industry would probably have to change the way it operates from the ground up. However, it is clear that the automobile industry is one of the most important industries in the world, as it has a world-wide impact. The end-consumers might just see the car – a product – one item, but there are many variables behind it; the production, the assembly, the marketing, the sales, the designer and so much more. This chapter will explain the brief history behind the manufacture of cars and the weight of the transformation.

2.1 The emergence of the automobile

Nieuwenhuis (2015) suggests that the act of putting an internal combustion engine in a car was first conducted by Carl Benz and Gottlieb Daimler in 1885. Before this there were many innovations that made this possible; like improvement of tyres, chassis, suspension, ability to create frames of steel tubes and countless others. Even though there were other types of self- propelled cars, usually powered by steam or even electricity, people generally see the birth of the car with the Benz’s and Daimler’s invention and as Nieuwenhuis (2015) notes, this highlights how when someone says car, everybody primarily imagines a machine powered by an internal combustion engine. Yet at that time both Benz and Daimler were met with a lot of criticism. As Larson suggests in his book Dreams to Automobiles (2008), people did not see any point in having a self-propelled machine, because they had horses. Who would need a

11 vehicle without horses? At first, Benz’s engine was only a two-stroke which meant there were problems putting it into a four-wheel car (his first self-propelled machine only had three wheels) and so he then replaced it with a four-stroke engine. He had a few runs with it around his workshop, until he took it to the streets of Mannheim. Larson (2008) furthermore explains how Benz received a patent with the number DRP37435 in 1886 and so he patented the very first complete car. His first car had a chassis made of steel tubes. It was fitted with a single- cylinder, four-stroke engine under the driver’s seat and he even made an electric ignition. The cooling system consisted of a jacket put around the cylinder that held water to cool the engine.

The water circulated through a radiator which he put above the engine, because hot water goes up and cold water runs down. Benz even overcame the problem of the slowing down of the engine, when subjected to too much weight and invented a gear-change mechanism which helps the engine deliver power to the wheels. Not long after all these accomplishments, Benz started to sell his cars for profit and people were buying. Since there were no gas stations yet, one had to buy petroleum spirit in the pharmacies (Larson, 2008).

2.2 From skepticism to profit

Larson (2008) explains that people were very skeptical, when they saw Benz in his car, they did not like it and they did not understand, some even thought it was powered by some kind of magic. His wife, together with their kids took the car to visit their family in another city.

When people saw that the machine can be operated by a woman and her kids, they started to see the potential and began to be more open-minded about it. This resulted in growth of his company. The growth meant he could further experiment and develop his ideas. In 1893 he patented his first four-wheeled vehicle. His Viktoria model even came with a range of engines, one with three horsepower and the other with five horsepower. To overcome the constant fear of cars, he designed them to look like carriages to which people were used to.

His first mass-produced car was the small and low-powered Velo in 1893. As sales increased

12 and people wanted different traits of the cars, more models were released to satisfy each customer. Later on, he patented a boxer engine where the pistons do not go up and down but are laid horizontally and run against each other, according to the website benz-academy.com

(n.d.). Such an engine is typical nowadays for Porsche and Subaru, because of its low center of gravity which is important for sports cars. Benz’s company was very successful and so his company expanded in nine-years-time from 50 to 430 employees.

2.3 The influence of the Model T

The evolution of car history had another break through thanks to the Ford Motor Company.

This company revolutionized the way cars are produced thanks to the assembly line. The well-known Model T was the first car to be produced on an assembly line, cutting the costs of production and therefore the costs of purchasing the car. According to History.com (n.d.), the price of the car went from $850 to less than $300, this allowed for the Model T to become a symbol of American folklore and is till this day well known as “Tin Lizzie”. One must, keep in mind though, that the assembly-line production of that time was very much different from how cars are made nowadays. Nieuwenhuis (2015) explains that Ford made kits of parts which were then sent to many businesses that were within reaching distance of the facility and were therefore locally manufactured. Then the cars were fitted in that one specific facility –

Highland Park. In contrast, nowadays, car manufacturers use huge and centralized assembly- line facilities; receiving parts from all over the world and then shipping their final products world-wide. Furthermore, nowadays cars are all-steel monocoques which is both a body and the chassis of the car, but the model T was constructed with separate chassis and separate body. The technology of such a monocoque was introduced by Edward Budd and Joe

Ledwinka around 1910. This technique requires a big investment, but it is considered the basis of automobile economy, as it cuts costs in production. Car manufacturers, try of course, to always cut the cost of production to increase profit. One main strategy has been to globalize

13 their production resulting in, almost each part of a car not only being made in separate factories, they might be produced in other parts of the world.

2.4 The shift to assembly-line production and mass-consumption

The Model T was, not the only car that people genuinely liked, of course. Another car manufacturer has had a huge impact on how we travel today. As Cahill suggests in the book

Transport, Environment and Society (2010), in 1930s Germany Adolf Hitler was fascinated with the concept of people having cars and so, Volkswagen was one of the pioneers of this concept in Germany, as the name Volkswagen suggests, because Volkswagen = the people’s vehicle. It however, took some time for people to grasp the endless possibilities of owning a car. For most owners it was a means of transportation not a fashion statement or status symbol. Today it is an essential part of who we are and how we project ourselves to others. It has become a symbol of freedom as well as status, attitude and personal conviction, which will be further discussed later in the paper.

For the car to replace the horse and buggy, people first needed to overcome their fear of driving, because as Cahill (2010) suggests, there were many accidents on the road, as the cars evolved, and a higher speed of travel was possible. There was also the issue of the infrastructure, as it was at that time not as developed as it is now. Roads were not as safe, and people were not used to cars yet. Rules, roads and cars all evolved together. Road signs had to take their place, crosswalks, and clearer rules on how to drive. According to Cahill (2010) the deaths in 1920s on the roads were much higher than the numbers of today, even though there were fewer cars on the road and even though the speed of cars did not reach today’s standards. This was of course, because there were not enough regulations and people were not ready for driving. Nor were pedestrians ready for cars on the road. After WWI, the middle class finally started seeing the advantages the ownership of a car, and slowly, more and more

14 cars were cruising the streets. Then, after WWII and the end of petrol rationing, cars entered the mass market, as Cahill (2010) suggests.

2.5 Electric vehicles

Alternatively-fueled vehicles, including electric vehicles are not a new invention. They have been known for a long time, but the technology was never ready for production for the masses. According to Matulka who wrote the article called The History of the Electric Car

(2014), it was actually the Model T that put an end to the quick rise of electric cars, thanks to its mass production, it was almost half the price of its electric counterpart. Nonetheless, in

1997 came a change in direction, as the Toyota Prius was released and was the first mass- produced hybrid vehicle. Moreover, in 2006 the well-known company Tesla was established which started producing luxury electric sports cars. More and more hybrids, plug-in hybrids and electric cars started appearing for sale, creating a new significant market in the automobile industry.

One must always keep in mind that it is very difficult to determine what the biggest breakthrough in the history of automobiles was, because there were many great inventions and people influenced each other a lot. For instance, a self-propelled car was made even before Benz’s, but it was run by steam, so Benz was the first one to create a running car with an internal combustion engine. In the 1920s there was even a car that ran on electricity, long before the whole problem of sustainability of cars. Karl Benz’s invention, however, is mostly praised as the very first step toward our modern cars, as we know them (Larson, 2008). Later, after the appearance of the Model T, people slowly turned to cars as the most comfortable mode of transportation, as it allowed them complete freedom and changed their life. It enabled them to move fast and easy. The appearance of the Model T made the spread of electric cars significantly difficult which is why people are now seeing a comeback of electric

15 vehicles, as they did not catch on before. In the following chapter the need for electric vehicles will be explained.

3.0 THE ENVIRONMENT AND AUTOMOBILES

As opposed to the past, when the combustion engine was so highly praised, when all the developments in the car industry and the massive market created empires, people have started to see the downside of the beloved invention. Cars are polluters, that is a fact. People were and are aware of this fact and that is why manufacturers were pressured to come with cleaner cars and better alternatives. Because people do not want to lose their freedom and comfort, and manufacturers do not want to lose their profits. A compromise had to be reached, therefore, the Kyoto Protocol was signed in 1997 as a standard for manufacturers as a commitment for reducing emissions (“KP Introduction”, n.d.). This chapter will focus on how cars impact the environment, how the regulations should reduce this problem. Whether these regulations are enough to fight for a more ecological future and whether it is motivation enough for manufacturers and consumers to adapt to these new changes.

3.1 “Eco-innovations”

With time comes development and evolution. However, in the car industry this also involves a lot of money and investment into new research and machines. Manufacturers try to make their cars as eco-friendly as possible. One would be able to write a whole book on these developments, because they cover a rather huge part of the completed car. As Vaz, Rauen and

Lezana suggest in their article Sustainability and Innovation in the Automotive Sector: A

Structured Content Analysis (2017), all these innovations require a lot of time until they are truly a part of the production and money which companies hope to retrieve after adoption of new principles/methods. These ecological innovations or “eco-innovations” as Vaz et al

(2017) refer to them can be defined as “the production, assimilation or exploration of a product, production process, service or method of management or business that is new to the organization (developing or adopting it) which results, throughout their life cycle, in the

17 reduction of environmental risk, pollution and other negative impacts of the use of resources, including energy, in comparison to relevant alternatives” (p. 3). One of the main aspects of unsustainability with cars is according to the authors the combustion engine. That might be the reason why manufacturers always focus on tweaking their engines in order to meet the newest standards of emissions.

These eco-innovations have been present in the car industry mainly since the 1960s, as the authors note. Beside improving the engine, manufacturers built in the catalytic converter and started using light-weight materials. According to Nesbit, Ferguson, Colsa, Ohlendorf, Hayes,

Paquel and Schweitzer (2016) catalytic converters were first fitted onto US cars and later on in EU cars as well. In the beginning some member states were refusing installment of catalytic converters, because cars in the EU tend to be much smaller than in the US and so there would be no need for such measure. Nevertheless, Germany was already familiar with this technology thanks to its cars being sold on the US market. So, it was not an issue for them. Presently, European car manufacturers take pride in doing their part to be greener, they use recycled materials in their vehicles, as for instance the i3 by BMW, or they improve their designs for better aerodynamics which in turn allow better consumption. Other innovations include the start/stop system which switches off the engine at stop-lights and the function of switching the number of cylinders being used in cars in low-power modes. For instance, if someone is driving around the city with an engine that has 8 cylinders, it might run only on 4 to reduce fuel consumption and so emissions. All these innovations, nonetheless, have become redundant thanks to the tendencies of the market. These include buying more robust cars (because of alleged safety reasons) which result in more weight that involves more fuel consumption and buying more powerful cars which also result in higher fuel consumption.

3.2 Climate change

Gadesmann and Kuhnert point out in their article The automotive industry and climate change

(2007) that the climate has been changing over the past few decades. Temperatures are rising steadily. Some of the effects of this include – rising sea levels, extreme weather (hurricanes) to name a few. This does not only affect ecology, but also economy. According to the authors, people unquestionably must lower the carbon dioxide (CO2) emissions in the transport sector.

Furthermore, it also implies that even if the pace of climate change would be held at its current level, annual emissions would still have to be reduced by at least 80%. Hannappel

(2017) suggests that 14% of all global CO2 emissions are because of transportation. That of course, includes also commercial transportation and not only passenger vehicles, but also marine, air and any other manner of transportation. In order to reduce these numbers, governments are trying to regulate the maximum amount of emissions. These figures, although, seem to be too ambitious and without radical electrification or finding other more ecological solutions, these regulations will not be met.

3.3 Future developments in Europe

The rise of population in Europe is stagnating and growth is not expected in the following decades, which means that also transportation and the energy and emissions linked to it could slowly start to decrease (Fulton, 2012). Nevertheless, some regulations are necessary for such a shift. The problem is that each country in the European Union has limited and tremendously different resources and possibilities to meet centralized regulations which will inevitably be enforced on all member states. To meet these regulations, each state will have to adapt and conform based on its own resources and possibilities that may include either biofuels or electrification (Fulton, 2012). But also, possibly Hydrogen, as some manufacturers are already testing it. Another factor that could allow for further ecological improvements would include

19 a drop in the sales of new cars which mainly depend on the health of the economy, therefore in case of an economic crisis, sales of cars would be expected to drop.

3.3.1 Emission regulations in the EU – history

Regulations, of course, did not start immediately, there was a development over time. One of the first impulses for some sort of limitation came in the 1990s, because of rising concerns about air pollution. Some member states started slowly, but steadily pressuring the EU to pass some legislation to control and limit the amount of CO2 and other harmful gasses going into the air. Some of these regulations were to some extent strict for the time being, as the technology was not even that advanced. As Nesbit et al (2016) (comparative study) suggests, the legislation was primarily concerned with cleaner fuels, since people realized the prices of further advanced vehicles would be too high for consumers. Therefore, the directive 98/69/EC which was introduced was used to control the quality of the fuel that had to fulfill requirements for maximum emissions on a cold start. Policies on sources of emission and the installation of some particular environmental standards are from around the year 2000 onwards, mainly from the development of Clean Air for Europe (CAFE) program (Nesbit et al, 2016). Dings discusses that the goal to reduce emissions by 35% by 2015 was first stated in 1995, but was many times postponed. This goal failed and so had to be adjusted and so now, by 2020 the goal is 95 g/km. This goal however, depends on the vehicles a manufacturer produces, one variable is the weight of the cars. There are further loopholes which the manufacturers can jump through and so the law is not that effective (Zachariadis, 2012)

3.3.2 Emission regulations in EU – progress and development

According to Dings the manufacturers in the EU actually managed to come close to the emission regulation goals. Figures showed that in 2010 the emissions were only 8% away from the 2015 goal. Furthermore, Dings elaborates that after the law, reduction of emissions

20 jumped to 3.7% per year. This factor was then also used by the manufacturers in their advertisements as a key factor (Zachariadis, 2012). Despite that, some argue that this change might have been because of the financial crisis that forced people to buy smaller cars.

Governments were also pushing sales of smaller cars by a change of taxation where smaller cars got better deals. Dings explains that the taxes did help the regulation, but it was mainly because of the regulation this change in tax system occurred in the first place. On the other hand, the development of better and cleaner technologies has also played a big role

(Zachariadis, 2012).

3.4 Discrepancies of emissions in real life

Another factor that must be considered is emissions in real life. What one car manufacturer measures in the sterile and unrealistic laboratory environment is not exactly the same amount of CO2 which is then in real life conditions let into the atmosphere. According to Dings the discrepancy of real and measured emission output might be up to 45% and that is a significant number. In the end this can mean that “in 2020, a third of the ‘on-paper’ 40% reduction would not be delivered in real life because of the widening gap between official and real world fuel consumption” (Zachariadis, 2012, p. 172). Furthermore, each car will have tremendously different results in their fuel consumption which directly correlates with emission output, since each driver has a completely different driving style. Therefore, the measurements of car manufacturers cannot always represent the data which is created in real life conditions. Beside the unrealistic measurements, another point which makes the numbers seem better than they are in reality, is that some manufacturers might tweak the measuring software to improve their numbers. One such case was found with Volkswagen. The scandal was called Dieselgate. In

2015 it became public knowledge that Volkswagen was tampering with their emission numbers during testing. Later, in 2017 Volkswagen was forced to pay an almost $3 billion

21 sum for the scandal (Rogers and Spector, 2017). Therefore, one might argue that some of the development in the reduction of emissions might have been calculated wrongly.

3.4.1 What these regulations mean

Many people argue that this pressure from the EU to heavily reduce emissions is the reason why manufacturers are now so fiercely trying to come up with the lowest numbers on emissions as possible. It has become highly significant whose emissions are now the lowest also in the marketing department where manufacturers compete for better numbers, since it is now trendy to go green. It is now mandatory in the EU to put the emission numbers on all marketing materials, meaning brochures, billboards, advertisements all have the emission numbers printed on them somewhere. Because the governments had been pushing less powerful cars and cleaner cars, the outbreak of electric cars was unavoidable. People do not want less powerful cars and they will not settle for them, so car manufacturers had to adapt to these changes and many developed electric cars. However, in order to be able to sell them, one must first make people want them.

This chapter showed that many circumstances led to the establishment of EU emission regulation which meant that car manufacturers had to introduce alternative products to the market, to avoid heavy penalties and to satisfy customer’s needs and wants. One might argue that these changes were inevitable, because the environment was being polluted causing soon- to-be irreversible damage to the environment. On the other hand, people might argue that the

EU pushed the regulations way too hard and wanted immediate drops in emissions. This resulted in not giving the manufacturers enough time, while pressuring them to compete with each other for the best numbers and making them release alternative products way too early.

Before the mind set of consumers was ready, same as the products and infrastructure needed for comfortable usage of alternative products. Furthermore, the EU should have also pushed

22 for social awareness and prepared the audience (consumers) for changes in the market by releasing their own initiatives for ecological behavior, instead of simply passing regulations without paving a way towards them.

4.0 PERSUASIVE APPROACHES

As the previous chapter explained, lately there have been many significant developments and changes in the automobile industry and these mean a necessity for change in consumer thinking as well. Change is, nonetheless, always difficult and therefore, marketers need some persuasive methods to effectively change or shape opinions of the public. This chapter will examine persuasive approaches which are used by marketers to shift the public’s opinion. To convince people to think about something and how these approaches can be applied to the purposes of car manufacturers – making consumers want to buy pricier alternative vehicles. It will analyze mainly social marketing, how marketers can and should try to persuade consumers into desired actions; and work its way towards a more specific area – green marketing. It will furthermore try to apply these theories and practices in marketing green cars and determine what is its potential and what are the issues of changing the behavior and buying alternative cars.

4.1 Social marketing

There is much disagreement regarding this field of public communication, because there are no specific criteria which would specifically define what it is and what it is not. This type of marketing is supposed to bring a positive change to people’s behavior. Yet, it can never be differed so easily, because what might do good for one person, might harm another. Stewart explains in the Handbook of Persuasion and Social Marketing (2014) that it is a hybrid discipline which combines elements of many fields, so there can possibly be no boundaries.

Andreasen (1994) who is thought to be one of the founders of the definition of social marketing, defines it as “the application of commercial marketing technologies to the analysis, planning, execution and evaluation of programs designed to influence the voluntary behavior of target audiences in order to improve their personal welfare and that of society of

24 which they are a part” (p. 110). Its roots actually come from India, according to Stewart

(2014), where it was used as an initiative for family planning. Nirodh, a condom company in

India had an aggressive strategy of informing its target audience that condoms are available at very low prices in many places in order to solve India’s population problems, according to

Sinha (1969). The need to shift public opinion about using condoms pressured the emergence of social marketing. There are many reasons why public opinion needs to be shifted and one of them is, of course, the need to make people aware of pollution and the possibility to go greener. Just like marketing makes people willing to pay more for a particular brand, this research will examine how marketers convince people to pay more for a green product.

4.1.1 Attitudes, beliefs and values

As Stewart (2014) explains, attitudes must be examined, because they predict behavior and they also influence it. He also points out that “a core means to achieve a desired behavior is to change people’s attitudes” (p. 29). Shaping of one’s attitude is strongly connected to persuasion. Attitudes are according to Eagly and Chaiken (1998) “psychological tendency that is expressed by evaluating a particular entity with some degree of favor or disfavor.” (p. 269), and beliefs which are defined by Fishbein and Ajzen (1975) as “a person’s subjective probability judgement concerning some discriminable aspect of his world” (p. 131) which means they do not truly depend on facts but are shaped by one’s opinions. In the case of electric cars Claudy, Garcia & O’Driscoll (2014) clearly state that while one believes that

(belief aspect) purchasing an electric car will result in many positive outcomes, for instance saving money or the ecological side, they still might not, in the end, buy it, since there is no charging station in the nearby. Therefore, it can be concluded that while a belief might be strong, the comfort is not fulfilled, and the purchase will not be made. As Claudy et al (2014) suggest, “In the context of innovation adoption, beliefs would thus reflect people’s opinion about the innovation characteristics in general, whereas reasons for/against adoption would

25 constitute specific factors that influence the purchase decision.” (p. 533). On the other hand, of course, people can make decisions without rationally evaluating the risks or issues, because of their values. Values are defined in the Oxford dictionary as, “Principles or standards of behavior; one's judgement of what is important in life.” (n.d.) This can, anyhow, sometimes overtake the rational mind and create an error in judgement. Therefore, marketers must also think about these irrational and rather emotional decisions, because often, it is the people’s emotions what makes the decision.

4.1.2 Social marketing and social change

Chriss explains social marketing as standard marketing, because here the goal is as well to

“sell” the desired change in behavior (Stewart, 2014). Health is one of the most valuable possessions and therefore, marketers try to change people’s ways. In many countries, people do not take proper care of themselves and social marketers try to change this. This paper will connect the theories of changing health habits with changing the mindset about alternative cars. Kahle and Gurel-Atay explain in the book Communicating Sustainability for the Green

Economy (2015), that even though many businesses already try and incorporate sustainability in their philosophies, consumers are still not cooperating. They explain that this phenomenon is mainly because consumers are not aware of the differences the changes in behavior of one person can make. Another interesting approach they mention is to try to persuade such people to change their consumption habits who are in the process of a life transition, such as graduating, getting married, moving and so on. These people will be more likely to accept changes. Furthermore, the authors imply that marketers should focus on giving the green product a symbol – for health, virtue or some other desirable trait, so that people will desire to buy the product and communicate through the purchase and usage the value that was symbolized.

4.2 Understanding persuasion

It is well known that one of the founding fathers of persuasion is Aristotle with his three main modes of persuasion that are – ethos, logos and pathos. These are referred to as “source, message and recipient” according to Rucker, Petty and Briñol (Stewart, 2014). Source is the person or organization delivering the message. Such source should always be credible and/or attractive in order to receive positive feedback from the recipient. The positive feedback can be a shift in behavior, discussion about a topic, etcetera. The message aspect is the organized/structured information that is transmitted to the recipient. It should always be clear and involve strong arguments, as Rucker et al suggests (Stewart, 2014). It is also highly important to at all times have the audience in mind when creating the message. One should ask if the message is clear, well-structured, strong enough, interesting enough and if it communicates correctly with the audience, the language must be appropriate. The recipient is the audience, people who will receive the message. Therefore, it is always important to know one’s audience. These are the demographical aspects – race, class, gender, age and others.

However, Rucker et al also mention variables that are not at all times stable including mood, feelings and other such variables (Stewart, 2014).

4.2.1 Advertising with persuasion

O’Shaugnessy John and Nicholas report in the book Persuasion in Advertising (2004) that advertising must also be trustworthy, so that it is able to have some results. If trust is established between an organization and the consumer, consumers tend to become more tolerant, although they still expect some level of quality which should always be met in order to fulfill the promises of an advertisement. Moreover, advertisers should always try to incorporate the standards they believe in, because this will deepen the relationship with the customer. If one tries to manipulate the consumer by using false data, then such

27 advertisements are prone to fail and create a bad reputation for the company which is a difficult problem to solve. For an advertisement to be successful, it must be (1) visible, (2) credible and (3) attractive. Also, ads have a better long-term effect, if they appeal to the emotions of the target audience.

4.2.2 Advertising appeals

O’Shaugnessy John and Nicholas (2004) state that brands should always turn to some special methods, when advertising. They should always be associated with something. So, for instance, it is a good idea to create a name that will make a person think about something pleasurable. The meaning or origin of the word is not as important. This can be applied to either the brand or a specific product/service. Additionally, people are highly triggered by symbols; therefore, it is always important to study symbols and use them in the desired way.

Strong triggers of positive emotions are sex and nostalgia. On the other hand, when marketers want to make an impact or make people do something, they might even use negative emotions like fear which creates an immediate, strong impact. As the authors comment, a positive brand image could be one of the key factors of a consumer’s choice for said brand. It is important to build up the positive image over time with many impulses. Many brands choose a special ambassador for their products. As O’Shaugnessy John and Nicholas (2004) explain, marketers always look for a prestigious spokesperson to encourage people who identify with the personality to buy their products. It is critical to choose the right person, because if people dislike the person, they will not buy the product, as they will not want to be associated with this person. The ambassador should also know and acquire the values of the company.

4.2.3 Social media and persuasion

It is important to remember that the evolution of social media is working at a fast pace. Social media are a place where millions of people can share their opinions and be “heard” by vast amounts of receivers. This is where marketers can really easily catch some new, potential fans and customers. Still, it is not as simple as one might think. In order to create traffic on your social media account, marketers have to create a buzz. They need to make people discuss and talk about an issue on their account. As Kamins explains in the Handbook of Persuasion

(2014), social media is now used for people to interact, share stories, information and others together and it is no longer about having an opinion leader, who disseminates information, it is about every person sharing experience on a platform. His research furthermore explains that people are more likely interact with each other if they share similarities which can relate to usual marketing tactics – using a personality that is similar or charismatic to the audience.

Another important aspect that influences whether or not there will be word of mouth (WOM), is normative and informational influence. Kamins (2014) states “normative influence represents the need to conform in order to be liked and accepted by others. Informational influence is a phenomenon where people accept information from knowledgeable others in the form of store, product, and brand choice in an attempt to reflect correct behavior for a given situation.” (p. 138).

4.2.4 Green marketing

Green marketing is any marketing activity that tries to promote, sell and build awareness about any product/service that is non-toxic, recyclable, renewable, does not produce too much emission and basically does not hurt the environment in an excessive way (Ward, 2018).The problem here is that there is no definition of how ecological a “green” product must be to be able to be called “green”. One cannot completely recycle a car, yet if it passes some emission

29 tests, is it actually “green”? Green marketing is now used by marketers to change people’s minds about ecological behavior and they try to teach people to behave in a more environmentally friendly way. It goes hand in hand with social marketing, as its role is to change people’s habits in order to make a positive impact on the society as a whole. As Xie,

Cavallero and Cheng write in the book Communicating Sustainability for the Green Economy

(2015) “green advertising usually has at least one of the following traits: (1) it explicitly or implicitly addresses the relationship of between a product/service and the biophysical environment; (2) it promotes a green lifestyle with or without highlighting a product/service; and (3) it presents a corporate image of environmental responsibility” (Kahle & Gurel-Atay,

2015, p. 143).

This chapter explained the theoretical aspects of shifting consumer’s behavior habits and how marketers should try to change it. The chapter defined and explained what social marketing is, how it is connected with green marketing and applied it to the specific topic of alternative cars. It furthermore explained general approaches of persuasion and how it should be applied to this problematic issue. To conclude, marketers must try to approach people who are currently undergoing a big shift in their life, as they are now more open to changes, people who want to be perceived as green. Furthermore, it is highly important to use word-of-mouth, especially on social media, because people discussing a subject create a buzz and awareness of the issue. It is always a plus if a social medium creates a homophylic community, because people who share similarities usually tend to discuss more.

5.0 THE PSYCHOLOGY OF THE TARGET AUDIENCE

Understanding psychology of the target audience is significantly important to be able to understand the reasons behind people’s decisions in buying specific objects. This chapter will focus on the psychology of the target audience, it will examine how and why which attitudes are formed, what impact it has on the sales of alternative vehicles and why are people so resistant towards new technologies. Furthermore, it will critically analyze why people should and/or should not buy alternative products.

5.1 Resistance against green advertising

Generally, people are more resilient against green advertising, because they do not like to change their old habits and usually the price is also an issue. Xie et al (2015) suggest that even though people know about pressing issues concerning the environment, they are not ready to accept green products, because consumers either do not understand the jargon or they believe that there is not enough proof that the purchase of a product would indeed help the environment (Kahle & Gurel-Atay, 2015). This is especially the case with cars. There are still many unanswered questions revolving around the purchase of an electric car, because some people claim that the elements for batteries inside the cars are mined using heavy and not ecological machinery; furthermore, people believe that the energy which is used to propel the cars through coal fired power plants which in the end produces if not more pollution than standard gasoline/diesel cars. Moreover, Xie et al explain that the possibility to prove the claims of green advertisements is highly limited, as opposed to proving the traits of a household cleaner (Kahle & Gurel-Atay, 2015). From another perspective, the authors argue that people believe green consumers to be purchasing green products only to be seen in a better light and socially they want to appear better, more selfless people than others, and that the real motivation is not actually helping the environment.

5.2 Reasons against adoption of alternative vehicles

One of the reasons against adoption is the disruption of status quo and the change in the routine of the consumers which clearly is the case with alternative cars. They are something new and it is important to remember that people are stuck in their ways, meaning that they were used to filling up their tanks in 5 minutes in their regular gas stations and it was comfortable enough, easy enough and mainly fast enough. Furthermore, it is important to keep in mind that the internal combustion engine has been around now for more than 100 years, therefore it is quite natural that adopting a completely new type of engine is going to cause many issues with the consumers. There have been, of course, other engines besides the regular piston engine, for instance the famous rotary engine by Felix Wankel in Mazdas, but that was still an engine which used gasoline, so it was not so prone to denial, as the alternative cars are. This goes hand in hand with maintenance. People are already used to some matters and issues revolving around usual engines – tune-ups, oil changes, and so on, but with the emergence of alternative vehicles, no one could confidently say what the issues will be and how much the maintenance will cost, as the technology is much more complicated, and people would worry about high priced repairs. Furthermore, a research study found that people tend to be selfish and they care more about themselves and their comfort, rather than the well-being of other people, as Lee, Youn and Nayakankuppam comment (Kahle & Gurel-

Atay, 2015).

5.2.1 Adoption of innovation – acceptance of alternative vehicles

Claudy et al (2014) elaborate that whether the audience will accept an innovation or not depends on many variables and it is the greatest skill of marketers to find out whether people will accept it or deny it. The study of these authors suggests that people do not necessarily dislike an electric vehicle (EV) for the opposite reasons of why they like them, as some

32 previous studies may have suggested was the case, because some previous studies would assume that pro-adoption tendencies were the opposite of anti-adoption tendencies, since asking a question would result in the answers “I like” or “I don’t like”. Nevertheless, in this case the authors clearly disprove this assumption by stating that “[…] reasons for adopting an electric vehicle such as favorable cost-benefit ratios or positive image could clearly be logical opposites of reasons against adopting an EV such as a low perceived ratio between costs and benefits or poor image perceptions. But reasons against buying an EV could also include additional considerations, such as range anxiety or a perceived lack of charging stations.” (p.

531). There are many variables that must be taken into consideration with an innovation and the perception of it by the people. Moreover, alternative vehicles are still a fairly new concept and people are by nature skeptic towards change and they do not have any possibility to get close to such cars. This could be a potential breaking point – manufacturers should start pushing these vehicles more intensively through making open days or some special events that would enable people to try these vehicles, so that they could make up their mind about them. Once they get to know it and they will be familiar with the new technology, they might be able to be more open towards it. It would be a good idea to select some people who would receive these cars at least for a week, because that is enough time to figure out whether the car is suitable for you or not.

5.3 The Weberian integrative frame work

The Weberian integrative frame work hypothesizes that human action can be scaled on rationality and irrationality, according to Ozaki and Dodgson (2010). On the scale of rationality, there is the “goal-instrumented action” which is carefully analyzed with considerations of risks, benefits and others. “Value-rational action is taken to achieve a

‘valued goal’ with no or little consideration of its consequences and the appropriateness of the means chosen” (p. 313). And it is to some extent the middle on the spectrum. An “affectional

33 action” is the one that is perpetuated purely by emotions and is the least rational one. One of the main emotions in this case could be envy, as people tend to show off to others and make them feel envious. The last point Ozaki and Dodgson (2010) mention from Weber’s frame work is “traditional action” which is the one that has already been done many times for a longer period.

Ozaki and Dodgson (2010) furthermore elaborate on the five stages of innovation adoption.

The first stage is the knowledge of an innovation, where a person hears or sees a message about it. The second stage is forming an attitude, meaning the person decides whether he/she likes it. The third stage is the decision whether or not it will be accepted by the person. The fourth stage is the “implementation stage” (p. 314) and the last one is the “confirmation stage

“ (p. 314) These stages are all highly influenced by previous and recent conditions of a person, so even though a person might accept an innovation and is ready to implement it, it might happen that a person cannot, because of some circumstances (not enough money resources or others. This suggests that every new product must go through all these stages of adoption and it depends heavily on the marketers how they approach the challenge to overcome all these stages and make the product interesting and important for the consumer, so that he/she decides to act on it in the desired way.

5.4 The need for vehicles

Cars have become second nature to us. For some people driving a car is like walking. As

Nieuwenhuis and Wells argue in The Global Automotive Industry (2015), choosing to drive a car depends on many variables, like personal preferences, autonomy, cultural and social norms and so on. Of course, pricing and income are a huge part of this and so are infrastructure and availability of alternatives (if there is no public transport, you will not be able to use it). One must not forget that owning a car and using a car are two very different matters and this fact must be taken into consideration by the marketers. “Social norms and

34 cultural beliefs serve to reinforce the assumption that car ownership is a precondition of quality of life, which indirectly reinforces the perceived value of automobility.” (p. 31). Yet, people also made conditions to drive cars much better, with all infrastructure and roads (and sometimes missing or dangerous walk paths), so that driving is much smoother and walking sometimes very uncomfortable, because of a missing path and even dangerous, when walking on a road, so people prefer driving cars. People were never supposed to go as fast as one does with cars and that is why it is so addicting to just go for a drive, even if one could simply walk or use another mode of transportation.

5.5 The psychology behind car choices

Interestingly, the assumption that people buy cars strictly rational, is incorrect, as Whitmarsh and Xenias report. People do not always rationally think about their choices of car usage and they buy one, even if they do not need one, simply because to them it might seem like a more comfortable choice which is actually not always the case (Nieuwenhuis & Wells, 2015). For instance, in Prague where public transport is highly dependable and secure, residents still tend to use cars, even though they are stuck in traffic jams in the morning and in the afternoon, when commuting to work. As previously mentioned in the persuasion chapter, people who currently experienced a big change in their life, are more likely to change their habits, as

Whitmarsh and Xenias (2015) also report “[…] environmentally conscious people are more likely to travel to work using slow modes or public transport if they have recently relocated, compared to environmentally conscious people who have not moved, and therefore may have strong driving habits” ((Nieuwenhuis & Wells, 2015, p. 32). Such breaks in pattern might just be enough for some people to rethink their way of life and they might decide to also change their current lifestyle. In such cases, marketers should have some strategies ready to change people’s opinion about electric cars.

5.6 Reasons for adoption of alternative vehicles

This research has already explained why people often reject the idea of buying an alternatively-powered vehicle. This part will explain the opposite, why people should adopt this change in behavior and buy alternative vehicles. In many countries, people will receive tax incentives with the purchase of an alternative car. Therefore, even though the initial purchase of the car will cost the consumer more, he/she might be able to receive some money as support for buying an ecological car. Furthermore, the running costs – meaning the fuel costs are lower than for a gasoline or diesel car. This means that the investment into such car might be given back to the person through much lower prices of refilling the power, because the costs of electricity is much lower than the price of diesel and gasoline. To some people purchasing such car might also be an image booster. The fact that someone is driving an alternatively-powered car might for some people be a huge deal. It is the equivalent of correct waste sorting and not using any plastics. Therefore, some people will surely be impressed by the mature decision of driving a car that is supposed to help our environment. Moreover, the more people will start purchasing these cars, the faster manufacturers will be able to fix the glitches of these cars, because there will be more feedback and also manufacturers will receive more money and maybe even funds from governments to further develop these vehicles.

This chapter explored the psychological tendencies of consumers, how they behave around cars and new technologies and why. It revealed that some people might be buying alternatively-propelled vehicles simply because these people desire to be viewed in a better light and as if they were highly attentive towards sustainability, even though they only care about their image and not about the environment as such. Furthermore, it discovered that people are selfish in making choices and often do not think about how their decision will affect other people, as they only wish to satisfy themselves.

6.0 CASE STUDIES: ALTERNATIVELY-PROPELLED VEHICLES COMMUNICATED BY BMW, AUDI AND MERCEDES-BENZ

6.1 Introduction

To understand how the electric vehicles are communicated in practice, in order to comprehend the persuasive value that is used by manufacturers, this case study will analyze three German automakers: BMW, Audi and Mercedes-Benz and their communication with customers. Each of the companies presented in this paper have a different history of their own and therefore, a different philosophy. This also reflects on their stance towards these cars and each will communicate them differently to their customers. BMW has always been a company that is oriented on the pleasure of driving. They sell their cars with the motto “Sheer driving pleasure” and they want their cars to be enjoyable for a drive. Audi’s motto is “Advancement through Technology” and they try to sell their cars as highly functional and able to drive smoothly. Mercedes’ motto is “The best or nothing” meaning they try to put forward their cars as something better than others have and they are supposed to be high quality and high performance. The alternative cars are supposed to bring a solution to the problem of emissions in cities resulting in global warming and other unwanted phenomena. They are the green products which are supposed to help mother nature by producing less emission in the air.

History of BMW is rich, and the main importance is that initially they were building engines for aircrafts and later on, they started to focus on cars which were magnificent and won many prestigious races. Its logo consists of four parts and it contains the colors white and blue to represent that the brand is from Bavaria which is also in their abbreviation that stands for

“Bayerische Motoren Werke” which literally means “Bavarian Motor Works”. Audi has four rings in its logo that represent the four companies that got together – Audi, DKW, Horch and

Wanderer (“Companies and brands”, n.d.), and shortly after that the company was acquired by the VW Group. Mercedes’ logo consists of a 3-tip star which symbolizes three elements -

37 earth, air and water, it is called the silver arrow. The brand’s logo symbolizes the merger between Daimler-Motoren-Gesellschaft and Benz & Cie. in 1925 („Corporate history“, n.d.).

This makes Mercedes the oldest brand of all the above mentioned. The aim of the case study is to see how much or little of the theory of the persuasive approaches differs from the praxis used by each manufacturer.

6.2 Methods

The case study will examine advertisements, YouTube video spots and press-releases of each car manufacturer to see how they communicate their electric automobiles with the public to see if they follow any of the theories explained in the previous chapters. It will analyze what advantages are being highlighted and in which manner they are communicated to persuade consumers into buying.

6.3 Findings

6.3.1 BMW

BMW stands out in its high quality, well-developed advertisements, where the main focus is put on the drivability, the fun factor of driving and the aggressive looks and prestigious design of the cars. BMW’s ads mostly have a twist in them which really catches the viewer’s attention. The ads are very distinctive, as should be the cars. On BMW’s Instagram it is quite visible that they are excited about the future. They thoroughly keep posting content that has something to do with their upcoming cars – they show many concept cars and ideas for the future. They often also include a post about the high-tech features inside their cars. However,

BMW is also very dependent on its history which is why they, from time to time, show pictures of old models. After all, BMW has vehicles to be proud of from the past and they are the foundation of their world-renowned fame. When it comes to BMW’s YouTube, it is quite

38 different from its competitors. On their account, they feature different categories, like BMW design, technology, videos about ///M division or i-division, BMW history or #BMWstories which is a successful campaign featuring BMW’s fan’s heartwarming stories that include a

BMW product. Furthermore, they show many videos of their upcoming concepts, much like on their Instagram. i3 advertisement (see Appendix A):

The picture features the BMW i3, the small, practical car that is mainly intended to drive for shorter commutes, mainly around the city, thanks to its compact size and agile drive.

Therefore, the marketers present it in an urban environment. Both pictures have a similar, bright lighting with sun’s rays shining through the trees. Both cars are shown from the side, one being charged, the other with opened doors. This may present familiarization with the different traits of the cars – the charging process and the “suicide doors” that open from the middle outward. The picture on the left portrays the BMW halfway in front of a concrete wall and halfway in front of the mentioned tree. This might be an analogy to the concrete jungle, in which the car will be running, while saving the usual jungle thanks to its electric, ecological powertrain. The caption reads “LEAD THE CHARGE.”, which is a clever word play with the aim to provoke people into being brave, take the next step and lead others. This corresponds with the target audience which are usually high-class people who usually are in leading positions. The charge, of course, correlates with the idea of charging this automobile and not filling up the tank. In addition, there are many patterns all around the car making the picture seem significantly comfortable

The picture on the right shows the vehicle in front of an urban park with buildings behind it.

There are people running and riding bikes. This might provoke people into thinking about alternative possibilities of travel that are significantly more ecological, much like driving the

BMW i3. Furthermore, the opened doors might be inviting the viewer of the advertisement to get inside, sit and drive.

Together with the caption “SOME FEAR CHANGE. OTHERS DRIVE IT.”, this ad provokes people into wanting to get inside the car and drive it. The advertisement wants people to be brave, taking charge and be the leader of the change, which also should respond with the target audience. In addition, the choice of placing the car into the environment might suggest the vehicle’s friendliness towards ecology, which is probably another persuasive factor.

Press release on the i3s (see Appendix B)

A press release was released to introduce the i3s which is an upgrade of the i3. The i3s is an all-electric vehicle and in the press release it is quite visible that weight is put on the fact that the i3 is the best-selling car of the segment. Furthermore, they highlight the premium quality of its product and stress its abilities in the sustainability traits and connectivity with all the gadgets a consumer might have, making it a highly user-friendly vehicle. Moreover, the marketers put the interior into the spotlight, because it is made from sustainable materials which include recycled plastics, natural fibers and even eucalyptus wood. The typical blue seatbelt makes the car seem filled with energy. Also, the press release naturally talks about the emission-free aspect of the car.

The marketers are again putting high stress on the fact that this car can go fast from standing still, thanks to its instant power torque delivery from the electric engine onto the wheels. The car has many other great features that the consumers will find handy and it is what the marketers are using to persuade people into buying such a car. This vehicle is highly eco- friendly, has some interesting design and features high-quality materials as well as equipment, those are its strong selling points that are clearly listed in the press release.

YouTube advertisement (see Appendix C)

This is a short video of the i8 Roadster coming in May this year. It features the regular i8 in the beginning of the video and later the roadster joins the video. There is a man who is thinking about the future what it will be like, but then he realizes that future is now thanks to the i8 and the roadster is supposed to bring an even improved experience from the ride. The video shows many shots of the cars driving at high speeds on the road, emphasizing sportiness of this extraordinary car.

Marketers were probably trying to highlight that this car is highly futuristic, but not only in terms of the design, but also in terms of the ability to be a sports car, but also eco-friendly in one package, therefore they used so many shots of the car driving on open roads with the roof off. The design, performance and futuristic set up of the car are brought to the spotlight by the marketers to evoke desire in the viewer, appealing to the prestige of the product which people want. Additionally, the marketers took the vehicle outside of the city, where all the charging stations are in the middle of nowhere, probably trying to tell the viewer that one does not have to fear where they take the car even though it is electric. The bridge can be viewed as a

“boundary” which you could not cross before with an electric car, but this i8 is able to take the person, wherever the heart desires.

6.3.2 Audi

Audi heavily puts its name into many well-known movies. Currently, they are working with

Marvel a lot and it is visible in the movies, especially in Ironman who drives the Audi R8.

They also use the characters from Marvel for their advertisements. Right now, there is a famous ad with Spiderman in the driver’s test which is very amusing. This could mean that right now they are heavily targeting the generation that grew up watching and reading

Spiderman. Audi uses Instagram more creatively where they create collages from more pictures, so that if a visitor gets on their Instagram, one sees the bigger picture, could this be

41 an analogy? It also seems like they use the same pattern for every 4-5 posts. Meaning that one pattern is for instance the cars on a curvy road, then there are other 4-5 posts with the vehicles captured on snow, where they mainly market their 4-wheel-drive system Quattro and then there are other posts with the cars in a showroom. On their Facebook account, they mainly post high quality pictures of their cars in stunning settings, like sunsets or storms to emphasize the intensity of their cars. Usage of YouTube is a mixture of how BMW and

Mercedes do it. Audi has categories like Audi Sport, National Campaigns, Audi Genuine

Accessories where they show how to install accessories onto their cars and then they also have categories based on the segments of the cars.

Audi e-tron advertisement (see Appendix D):

This advertisement shows the Audi e-tron while being charged from a wall. There are many diagonal lines that convey feeling of movement, even though the vehicle is standing still, the picture feels dynamic, although there is no movement at all. One can see the battery projection on the wall which is not actually used yet, but Audi is showing what the charging might look like soon. The text reads “Changing minds, not appeal.”. Audi is significantly trying to sell these vehicles much like the regular ones, they do not change the design, so that people are not as afraid as it all resembles familiar territory.

In comparison with BMW, Audi is trying to show that the cars are not that different from the regular ones, whereas BMW clearly distinguishes them with not only the design, but also the advertisement messages to take charge in the change while Audi is trying to talk down the change, as if the change was not that significant. This corresponds with the fear of change and disruption of status quo that were mentioned in the previous chapters. Audi tries to avoid this by saying that the cars are much like the regular ones, so that people do not fear it.

Audi e-tron prototype press release (see Appendix E)

The press release does not reveal too many details in the picture, because it is still a masked prototype, a testing vehicle that does not show its design. Marketers highlight the facts that the car is being properly tested and that it is equipped with high-tech gadgets. Furthermore, they also talk about the range which should be enough for daily driving.

The focus is hereby put on the fact that Audi wants to release a car that is ready for its consumers, so that they are not afraid of it. Additionally, the marketers intensively try to persuade people into buying such cars by emphasizing on the fast charging option and on the high-range the car is supposed to provide.

Audi e-tron YouTube video (see Appendix F)

This video of the Audi e-tron prototype shows the car being toured around Geneva in the time when the Geneva auto show was taking place. Since the car has not been released yet, not much information is provided and it was driving around in a camouflage wrap which grabbed attention of many people, as is shown in the video, as people were taking pictures of the car and looking at it a lot. A designer of the Audi is talking in the video claiming that something big is happening in Audi and that is what they wanted to visualize with the car.

Therefore, in this video the design of the car and how it looks in the city and how people react to it is being highlighted by the marketers. Marketers might have wanted to draw attention to the fact that if someone drives this particular automobile, people will look at you and that boosts one ego. Moreover, the marketers probably used the pattern breaking intentionally, the conventional landscapes and cityscapes patterns might lull the viewer into a sense of security, again fighting the fear of the unknown.

6.3.3 Mercedes-Benz

Mercedes-Benz came in 2017 with new advertisements that have a motto “Grow up”, with this they try to attract people who already know what they want in life and who are mature enough to buy their cars. Even though one might think that the products would aim at the older generation through these commercials, it actually features young people who are on the threshold of adulthood, so people in their late twenties. They appeal to high quality, safety and reliability. On their Instagram they feature many posts that contain their heritage.

Meaning they are proud of their history and therefore show many pictures of their old cars, but one cannot deny that they also show many pictures of their current vehicles with the focus on the luxury and comfort that these cars offer. In the automobile circles one will hear many times that Mercedes-Benz can make an outstanding interior which is true, the luxury is pouring out of it. Their usage of YouTube is a bit different from BMW. Mercedes has a few categories like Mercedes-Benz Commercials, Grow Up – the current campaign, and then they feature videos based entirely on the car models and it is divided by segments.

Mercedes-Benz AMG Coupé SLS Electric Drive advertisement (see Appendix G):

This picture is significantly dramatic at first glance. The dark color theme and the storm coming up in the sky create a trembling feeling. The car is put in the middle of the picture, making it the biggest and most important object. The car is set on a race track which should evoke the feeling of astonishing power and great performance. The corner of the track creates a curve of a line which is the only softening element in the picture. The text reads “Ohm my god!”, a clever word play with the phrase “oh my god” changed to evoke thinking about electricity, since ohm is the unit of electrical resistance.

It also talks about the car being “the world’s most powerful electric super sports car” which clearly emphasizes the automobile’s performance and instant delivery of power, thanks to the

44 electric power-train. The sportiness of the car and its dramatic design are the persuasive factors in this message. Moreover, the vehicle looks almost elemental like electricity incarnate. The marketers probably wanted the viewer to feel fascinated and overwhelmed by the automobile. Here, the fear factor is addressed in a different way. The vehicle might be daring you to be scared but drive it anyway. This works on the level of ego. This way, the marketers acknowledge the viewer’s fear, but date him/her to drive the car anyway.

Mercedes-Benz press-release (see Appendix H)

This press-release features a masked prototype of the GLC F-CELL driving in the winter conditions in a drift. The press-release explains how the vehicle has been tested and that it went through a series of tests in order to be sure that the car is ready for its customers.

Mercedes-Benz clearly wants customers not to worry about the quality of the car, since they tested it so thoroughly. They were not only testing if the battery can sustain the stress of cold temperatures, but also the handling on the snowy roads. The press release furthermore includes an interview with the Chief Engineer EQC, Michael Kelz. He highlights the traits of the vehicle, being a milestone in terms of development.

Therefore, the quality of the car is one of the persuasive appeals together with the ability to withstand critical conditions in the winter. The ability to work in winter also addresses the battery fears of consumers with what happens when in winter, because batteries wear out fast in cold temperatures. Moreover, they praise the vehicle’s abilities and handling as one of the persuasive factors.

Mercedes-Benz YouTube advertisement (see Appendix I)

This short video shows the Mercedes-Benz SLS AMG Electric Drive. The AMG division focuses on pure sports cars and it exists for more than 50 years now. The marketers emphasize

45 this fact in the video, together with the fact that this car will feature 751 horsepower which is a significant amount.

Clearly, they want people to know that this car will be amazingly fast, and it is from the AMG division which means an impressive drive. Moreover, the marketers show off the design of the car which is quite bold, even more with the yellow color that might symbolize a lightning bolt, corresponding with its speed.

6.4 Discussion

Overall, it seems like each of the manufacturers have their own methods of dealing with the problem of changing the people’s attitudes towards these cars. BMW puts emphasis on the design of the cars, provoking people to differentiate themselves from the rest and be the leaders of the change. Furthermore, they highly differentiate the vehicles from the regular ones by a completely different design and signature features, like using sustainable materials and blue décor in the interior. Additionally, BMW focuses on the performance, mainly with the model i8, where they show the performance and handling. Audi, on the other hand, tries to make the cars as similar to the usual ones as possible. They try to find similarities and then project them into the advertisement, so that people are not as afraid to try them, even in terms of the design and handling. Mercedes-Benz emphasizes the quality of the vehicles regarding the abilities even in stressful conditions, moreover they stress the instant power delivery and performance of the electric car.

The case study found that each manufacturer solves the communication challenge differently and only some theories are being used by the marketers. The reason might be the highly specific traits of the cars and delicate target audience.

7.0 CONCLUSION

The aim of this thesis was to show the how and why car manufacturers must nowadays try to persuade its consumers to buy alternatively-propelled vehicles. The paper traces the history of the automobile from the act of installing a gasoline engine into a vehicle, through the emergence of the first car for the masses (model T) to the emergence of electric vehicles. The paper also focused on the new emission regulations and how these were pressuring car manufacturers to create more ecofriendly vehicles. It elaborated on the problems of emissions, such as climate change, and how these are being tackled with the appearance of electric and hybrid vehicles through lowering the emissions let into the atmosphere. Furthermore, it looked at how marketers could persuade consumers to buy these new types of vehicles, because with change comes fear and people usually do not want to buy things that have changed.

The paper shows that marketers should try and persuade mainly those people, who are currently undergoing a change in their personal lives, as they are more open to new things, since their life is changing anyway, as mentioned in previous chapter. Moreover, the thesis stated the psychology of the target audience, explaining why people want to and do not want to buy such cars and it seems like people are not yet familiar enough with these cars. One of the main problems seems to be the resilience against green marketing, as people feel like one person will not make any difference and they do not want to pay more for such a vehicle. On the other hand, people like to be different and seen in a better light and that is often why they buy these cars. In the end the research looked at specific examples of posts made by the official accounts of BMW, Audi and Mercedes-Benz to see which aspects are being marketed to the target audience to persuade them into buying such vehicles. To conclude, marketers should focus on the eco-friendliness and also performance figures, which are usually much better, thanks to the instant delivery of torque and power to the wheels. Moreover, they should

47 try to show people that life with these cars is not uncomfortable and try to familiarize people more with these cars.

APPENDICES Appendix A BMW i3 advertisement

(Boeriu, 2015)

Appendix B Bmw i3s press release

The new BMW i3, the new BMW i3s.

29.08.2017 Press Kit The BMW i3 shows the way ahead to a new era of mobility. It is recognised the world over as a symbol of driving pleasure, sustainability and intelligent connectivity in the urban traffic environment, which is why it has become the best-selling electric car in the premium compact segment.

The BMW i3 shows the way ahead to a new era of mobility. It is recognised the world over as a symbol of driving pleasure, sustainability and intelligent connectivity in the urban traffic environment, which is why it has become the best-selling electric car in the premium compact segment. The recipe for success of the BMW i3 has now been further improved, thanks not just to refreshing styling accents, cutting-edge equipment features and new digital services, but also to the addition of a new model variant. For making its debut alongside the new edition of the first ever premium car to be conceived from the outset for all-electric mobility is the BMW i3s. With a higher output, model-specific chassis technology, noticeably more dynamic driving qualities and design features all of its own, it generates a particularly intense blend of the unrivalled sporty driving pleasure associated with electric cars from the BMW Group. By offering a premium-quality, all-electric driving experience, meaning zero local emissions, together with a whole new level of connectivity technology, both models represent the future of urban mobility. The BMW i3 has reigned as the top-selling premium electric car in its class since 2014, not just in Europe but worldwide too. And in Germany, it has actually been topping the new vehicle registration statistics for the electric car segment as a whole, also since 2014. It’s not just the visionary electric vehicles and inspirational design that help to make BMW i so popular, but also its innovative mobility solutions and the revolutionary new form of premium

50 character, with sustainability as a key defining element. By offering such products while also adopting an all-embracing approach that takes into account the complete lifecycle – from raw material production, through the manufacture and operation of the vehicles to their later recycling – the BMW i brand has established itself as a pioneer for forward-thinking mobility. (Brunckhorst, 2017)

Appendix C BMW i8 Roadster YouTube video

(BMWi, 2017)

Appendix D Audi e-tron advertisement

(“Audi A3 advertisement”, 2017)

Appendix E Audi e-tron press release

03/06/18 Ingolstadt/Geneva Technology

Audi e-tron prototype: preview of the first purely electrically powered model from the brand

 Comfortable, spacious interior and long range make it suitable for everyday use

 Design camouflage visualizes high-voltage drive system and battery technology

 More than five million test kilometers (3,106,856 mi) on four continents

Audi unveils the prototype for its first all-electric model at the Geneva Motor Show. The sporty SUV combines the space and comfort of a typical luxury car with a range suitable for everyday use. Until the start of series production, almost 250 development vehicles will complete testing under extreme conditions worldwide. Specially camouflaged prototypes kick off the chase for the most spectacular photos. The Audi e-tron prototype offers a preview of the first all-electric model from the brand with the four rings. The camouflaged exterior conceals a sporty premium SUV with space for five people along with plenty of luggage – the space and comfort are similar to that of a typical Audi luxury class model. The range suitable for longer journeys and the comprehensive charging options allow customers to drive purely electrically without making compromises. The production version of the Audi e-tron prototype can fill up on electricity at fast-charging stations with up to 150 kW charging capacity. In just under 30 minutes, the SUV is then ready for the next leg of the long-distance journey. The electrical quattro catapults the four-wheel drive into a new age and ensures strong performance on any terrain. The production version of the Audi e-tron launches on the European market at the end of 2018.

“Audi sets an important milestone for the company’s future with its first purely electrically powered model,” said Rupert Stadler, Chairman of the Board of Management of AUDI AG.

“In 2020 we will have three all-electric vehicles in our product range, with a four-door Gran Turismo – the production version of the Audi e-tron Sportback concept – and a model in the compact segment joining the sporty SUV. We will be launching more than 20 electric cars and plug-in hybrids by 2025 – spread across all segments and concepts,” the Audi CEO explains.

Showcasing high-voltage technology: the design camouflage The Audi e-tron prototype does not wear the traditional prototype camouflage, but instead illustrates its electrification with a specially developed design film. The distorted e- tron lettering stretches across the entire flank, as if it was charged with electricity. The “e” winds its way around the tailgate at the height of the front fender and is literally electrifying. Mimicking the high-voltage grid, orange elements illustrate the fact that the Audi e- tron prototype is fully electric – the lower part of the car, for example, is encircled with alternating orange and black segments. The expressive sills, with their colorful inserts, indicate where the battery and therefore energy center of the car are located.

Four continents, more than five million kilometers: testing under extreme conditions Until the first electric model of the brand with the four rings is launched at the end of the year, the sporty SUV will complete test drives on four continents. Whether in the cold of Scandinavia or the heat of Africa, in the mountainous altitudes of Asia or on the north loop of the Nürburgring, in the stop-and-go traffic of major Chinese cities or on American highways – the purely electrically powered SUV has to prove its all-round qualities in uncompromising practical tests under extreme conditions. Audi is testing the pre-series vehicles for customer- focused operation in all climate zones ranging from below -20 to above +50 degrees Celsius (-4° to +122° F). In addition, intensive tests of the charging technology are being conducted worldwide – an important safeguarding criterion for battery-electric models. The individual charging standards are tested on proving grounds and in public areas to validate the full range of different charging options. In total, just under 250 Audi e-tron prototypes are used in the tests. They will cover more than five million kilometers (3,106,856 mi) – roughly equivalent to 125 times around the earth and 85,000 hours on the road.

Hunting down the prototype in Geneva: pictures at www.e-tron.audi Prior to the world premiere, part of the Audi e-tron test fleet will be out on public roads wearing the electrifying camouflage. The first stop for the distinctive prototypes is in Geneva. Here they drive past prominent sites in the Swiss metropolis at the start of the motor show. Anyone interested can take advantage of these and other opportunities to photograph the prototype in its designer livery and post their spectacular scoop photos on social networking sites using #etron. Audi will publish the best pictures on the website at www.e-tron.audi, without any hide-and-seek. (Ilsanker, 2018)

Appendix F Audi YouTube video

(Audi Germany, 2018)

Appendix G Mercedes-Benz SLS AMG Coupé Electric Drive advertisement

(Baumann, n.d.)

Appendix H Mercedes-Benz press release

Mercedes-Benz EQC and GLC F-CELL: on the road to series production: Fired up for the ice: the acid test for electric mobility

Stuttgart/Arjeplog. Mercedes-Benz is launching its electric offensive. At the 2017 International Motor Show (IAA) in Frankfurt, the company presented a milestone on the road to emission-free driving in the shape of the pre-production versions of the GLC F- CELL - the world's first electric vehicle to combine a fuel-cell and a plug-in battery in the powertrain. 2019 will see the market launch of the EQC - the first fully battery-electric Mercedes-Benz production model from the new product and technology brand EQ. On the road to series production, prototypes have now successfully completed winter testing in northern Sweden. Before a new Mercedes-Benz model goes into production, it needs to pass a series of tough and thorough tests: in addition to the winter testing in northern Sweden, there are of course summer tests in southern Europe and the USA as well as worldwide endurance road tests.

The company has been testing each new model under extreme conditions near the Arctic Circle for decades – in icy temperatures down to minus 35 degrees Celsius, on snow-covered roads, and on sheer ice on frozen lakes. To this end, Mercedes-Benz has set up a test centre in the small northern Swedish town of Arjeplog in Lapland. In addition to the road testing in the far north, tests take place there on specially set-up testing tracks. Demanding hill climbs with gradients of up to 20 percent, testing tracks with varying coefficients of friction, handling courses, and skid pads on the almost sheer ice of the frozen lake pose the stiffest of challenges for the powertrain and control systems.

For a new Mercedes-Benz model, validation of the entire vehicle includes a programme of over 500 individual tests. In the case of electric vehicles, the standard procedure is supplemented by numerous powertrain-specific tests developed specifically for the new powertrain technologies. New challenges for an electric vehicle include the output of the electric motor during cold starting and with a cold battery, the cold-starting properties of a fuel cell (stack), the vehicle's range under the customer's normal operating conditions, handling of charging cables, pre-entry climate control, and the operating strategy complete with recuperation. Added to this is the specific tuning of the vehicle dynamics and the ESP® system.

To enable testing of different customer requirements and battery-charging profiles, the test centre in Arjeplog offers the full range of charging options: from simple domestic mains outlets to wall boxes to quick-charging stations. There is also a good supply of hydrogen, of course.

Short interview "A milestone in terms of development, too" Five questions for Michael Kelz (58), Chief Engineer EQC.

Mr Kelz, you have already had the opportunity to drive a pre-production EQC. In a nutshell, what were your impressions of the drive? Kelz: On the one hand, it's dynamic and powerful; on the other hand, it's a quiet glider. It's a new and at first unusual combination, even for us developers. The pre-production EQC offers a very safe driving feel and is also so much fun that it leaves a permanent smile on its driver's face.

Mercedes-Benz certainly has plenty of experience with battery-electric vehicles. Were you able to build on this? Kelz: It goes without saying that all our many years of experience with electric cars went into the new EQC. But it also contains a wealth of innovations – the EQC is a milestone for us in terms of development.

Which innovations and new developments do you mean exactly? Kelz: The EQC is an absolute highlight when it comes to power, sportiness and utility value. Likewise, the driving feel is sure to thrill our customers – not least thanks to the all-wheel drive, which we can incidentally tune particularly effectively here in Sweden on the frozen lakes. Then there are innovative solutions in areas such as telematics, connectivity and charging. The EQC really does herald the beginning of a new era in electric mobility at Mercedes-Benz.

What else did the winter testing in the far north involve? Kelz: In addition to vehicle dynamics on snow and ice, winter testing of an electric car naturally also focuses on how well the battery system and the powertrain perform in sub-zero temperatures. Not to mention efficiency and comfort aspects, of course, such as the climate control, which are so decisive in terms of the vehicle's range. Our most important learning experiences in Sweden are based on the fact that we can keep on encountering unexpected situations and gain valuable insights - something which it is not possible to achieve using currently available simulation technology.

What are the next steps in the development of the EQC? Kelz: We are already a long way along the road: mechanically, the car is already in an excellent place, so we are now concentrating on fine-tuning prior to the vehicle launch.

("Mercedes-Benz EQC and GLC F-CELL: on the road to series production: Fired up for the ice: the acid test for electric mobility", 2018)

Appendix I Mercedes-Benz YouTube video

(MercedesBenzTV, 2017)

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