The Influence of Price, Operating Cost, and Life Cycle Cost on Purchase Intention of Electric Vehicles Through Attitude as a Mediating Variable Among Prospective Consumers in Jabodetabek

Abstract

Background: The adoption of electric vehicles (EVs) is increasingly important as countries seek to reduce emissions from the transportation sector. However, EV adoption in Indonesia remains constrained by economic considerations, including high purchase prices and uncertainty regarding ownership costs. Understanding how consumers evaluate these economic factors is therefore important, particularly in the Jabodetabek region, where EV adoption has significant potential.
Purpose: This study aims to examine the influence of price, operating cost, and life cycle cost on consumers’ purchase intention toward electric vehicles, with attitude serving as a mediating variable among prospective consumers in Jabodetabek.
Design/methodology/approach: This study employed a quantitative causal research design. Data were collected through a questionnaire from 240 prospective EV consumers in Jabodetabek selected through purposive sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The analysis included measurement model assessment, structural model assessment, direct and indirect effect testing, and predictive analysis using PLSpredict and importance–performance map analysis (IPMA).
Findings/Result: Price significantly affects both attitude and purchase intention, while life cycle cost also has significant effects on both variables. Operating cost significantly affects attitude but has no direct effect on purchase intention. Attitude significantly influences purchase intention and mediates the relationships between price, operating cost, and life cycle cost and purchase intention. PLSpredict indicates high predictive power, while IPMA identifies price as the priority area for improvement because it has high importance but the lowest performance.
Conclusion: Consumers’ purchase intention toward electric vehicles is shaped by both economic and psychological evaluations. Price and life cycle cost have direct and indirect effects on purchase intention, whereas the influence of operating cost occurs indirectly through attitude. Positive consumer attitudes are therefore important in translating perceived economic benefits favorable price, lower operating cost, and lower life cycle cost  into purchase intention.
Originality/value (State of the art): This study contributes to the EV adoption literature by examining price, operating cost, and life cycle cost simultaneously as economic determinants of purchase intention while positioning attitude as a mediating mechanism. The study provides empirical evidence from prospective EV consumers in Jabodetabek and highlights the importance of consumers’ psychological evaluation in converting these economic evaluations into purchase intention.

Keywords: electric vehicles, price, operating cost, life cycle cost, purchase intention