Changing consumer perception of electronic vehicles through branded technical components

Ingredient branding is a branding strategy between a manufacturer and a supplier in which the end product of the supplier becomes one of the components of the manufacturer's offering. The motivation behind ingredient branding revolves around the ingredient or component brand forming an alliance with an end product brand in an effort to generate pull effects through the value chain. In this study, we ask if the brand perception of such an ingredient-branding alliance can help to increase the adoption of e-cars. We found that the acceptance of e-cars can be increased through a strong component brand for critical parts, in particular the battery. Our findings include critical implications for car producers to help them improve the acceptance of their products through creating strategic brand alliances with component suppliers.