Research Article | Volume 2 Issue 3 (May, 2025) | Pages 79 - 84
Assessing Customer Satisfaction in the Electric Scooter Market: Influence of Price, Advertisement, and Product Durability
 ,
 ,
1
Research Scholar, Department of Business Administration, MJPRU, Bareilly.
2
Professor, Department of Business Administration, MJPRU, Bareilly.
3
Professor, Mangalmay Institute of Management and Technology, Greater Noida
Under a Creative Commons license
Open Access
Received
Feb. 20, 2025
Revised
March 23, 2025
Accepted
April 26, 2025
Published
May 13, 2025
Abstract

The electric scooter market has witnessed significant growth, driven by an increasing demand for eco-friendly transportation solutions and innovations in personal mobility. Understanding the factors that influence customer satisfaction in this market is crucial for companies aiming to maintain a competitive edge. This study examines the influence of three key factors—price, advertisement, and product durability—on consumer satisfaction with electric scooters. By conducting surveys and interviews with a diverse sample of electric scooter users, we assess how each factor impacts customers' overall satisfaction levels and their likelihood of repeat purchase. The research also explores the interrelationships between these factors, identifying whether certain combinations of price, advertisement, and durability enhance or detract from the customer experience. Results suggest that while price and durability are significant predictors of satisfaction, advertisements also play an essential role in shaping consumer perceptions and driving purchasing decisions. The study concludes with actionable insights for electric scooter manufacturers and marketers to improve their offerings and marketing strategies, ultimately fostering higher levels of customer satisfaction and loyalty.

Keywords
INTRODUCTION

Electric motorcycles and scooters have seen steady growth in the Indian market. In 2019, 152.0 thousand electric motorbikes and scooters were sold, a 20.6 percent increase over 2014. Retail sales are predicted to reach 1,080.5 thousand units annually by the end of 2025, with a compound annual growth rate (CAGR) of 57.9% from 2020 to 2025. At a compound annual growth rate (CAGR) of 63.9 percent from 2020 to 2025, retail sales are projected to surpass $1.0 billion by that time. About 6% of the world's CO2 emissions come from burning fossil fuels, making India the third-largest carbon emitter in the world. According to IQ Air's 2019 report, 21 of the 30 most polluted cities in the world were in India. Furthermore, the WHO's Global Air Pollution Database (2018) shows that 14 of the world's 20 most polluted cities are in India. With 80% of all new car sales annually and 70% of the 200 million vehicles on the road, two-wheelers are the most common vehicle type in India. They contribute 20% of all CO2 emissions and about 30% of particulate matter (PM) emissions, making them a major source of pollution emissions in urban areas. Recent years have seen a number of initiatives by the federal, state, and local governments to lessen car pollution, such as tax exemptions, purchase rebates, and financial incentives for those who buy electric vehicles (EVs). The government's heightened emphasis on lowering the nation's pollution levels is encouraging for a strong regulatory push for electric two-wheelers, which will support the expansion of the Indian markets for electric motorcycles and scooters.

 

Benefits of using electric scooter

Economical to Work

Due to their high efficiency and fuel economy, EVs are less expensive to operate, which lowers costs for the owner. It costs roughly one-third as much per kilometre to charge an EV as it does to buy petrol for a car.

Lower Maintenance Costs

Compared to vehicles powered by traditional combustion engines, BEVs have fewer moving components. Because EVs don't require costly equipment like fuel injection and exhaust systems, they require less maintenance. In addition to having an electric propulsion system, which has fewer moving parts and reduces the depletion of petrol engine parts, PHEVs are more expensive than BEVs since they include a petrol engine and require maintenance.

 

Environment friendly

Because they produce no exhaust emissions, environmentally friendly EVs are less polluting. You can cut greenhouse gas emissions even further if you choose to charge your EV using renewable energy. Recycled plastic bottles, old scooter parts, and used appliances are some of the eco-friendly materials used to make some EVs, such the Nissan Leaf and the Ford Focus Electric, which are both made of recycled and bio-based components.

 

Health Advantages

Our health will benefit from improved air quality brought about by the decrease in dangerous emissions. Additionally, EVs make a lot less noise than cars powered by petrol or diesel.


More secure

EVs are less prone to capsize because of their low centre of gravity. They are also less likely to experience explosions or fires. They are safer in collisions because of their more durable body composition.

 

Objectives of the study

  • Examine the importance of pricing strategies on customer satisfaction in the electric scooter market.
  • Analyze the role of advertisements in shaping consumer perceptions and satisfaction levels regarding electric scooters.
  • Investigate how product durability affects long-term customer satisfaction and loyalty in the electric scooter market.
  • Provide recommendations for manufacturers and marketers on how to optimize pricing, advertising strategies, and product quality to enhance customer satisfaction.
REVIEW OF LITERATURE

Ansar Manahila (2019) Customers have a wide range of options for goods and services to meet their needs and demands in this ever-changing world. Since consumers are seen as the market's kings, it is crucial for marketers to make customer satisfaction their top priority since doing so will tangentially increase their profits and foster greater customer loyalty. A consumer's purchasing behaviour is influenced by a number of factors, including his level of occupation and purchasing power. Based on a number of demographic variables, the primary goal of this research report is to determine how satisfied Honda Activa owners are with the scooters' performance and pricing. Primary and secondary data were gathered from the different Honda Activa users in Bengaluru for this purpose. SPSS software has been used to analyse the data. The results indicated that the Honda Activa was used by the majority of the female respondents. Young people expressed the highest degree of satisfaction with both comfort and performance.

 

In 2019, Dr. V. Rana Pratap highlighted that a product's success is largely determined by how its customers view it. Due to their incapacity to influence consumers' perceptions of their products, numerous brands have failed. In this situation, it becomes crucial for businesses to comprehend how customers view their offerings. Given this context, the current study aims to examine how consumers view two-wheelers in relation to the elements affecting their purchasing decisions, levels of satisfaction, and decision-making processes. The Suzuki Access two-wheeler has been selected for the investigation. Opinions from the respondent are gathered and examined. When it comes to two-wheelers, consumers' purchasing decisions are influenced by a number of significant product aspects, including price, safety, and mileage.

 

C.B.senthilkumar, G.Rajesh, RohiniBhatt, R.Mayakkannan, E.Kandeepan(2020) It was not anticipated at the time of bike development and commercialisation that women would also be the target market for the bikes. In any event, technological developments and improvements made it possible, and a new concept for designing motorcycles that appeal to women emerged in the industry. These days, both men and women are quite interested in unequipped bikes since they are very easy to ride and manage. The purpose of the study was to determine how satisfied Chennai city's Honda Activa buyers were. The examination is based on crucial data that was gathered from 100 Chennai city respondents in a systematic survey. The information for this research was gathered using an accommodation inspection method. Although the demographic representation of the respondents was revealed through rate study, the scientist used Garret rating scale procedures to break down the respondents' satisfaction level with the Honda Activa. The chi-square test has been used to examine the factors that influence the decision to buy a bicycle. High customer dedication would always result from surveying high customer worth.

 

Elliot Fishman and Christopher Cherry (2023), e-bikes are one of the automobile showcase's fastest-growing segments. In 2012, over 31 million e-bikes were sold. Research has followed this trend and provides a compilation of the most pertinent topics that have emerged in recent years on the growing e-bike market.

 

C Simon Washington, Nareiaee Haworth (2022) more than 700 urban localities currently have bicycle share schemes in place. Adaptability is one of the benefits of bicycle sharing that have been mentioned. motion of the body. Fuel consumption and emissions. Certain or explicit assumptions about the modes of transportation that bicycle share businesses replace are included in the calculation of program benefits.

 

James Belies, Pyrou Chung, James Macdonald (2021) conducted an investigation in 2021 on "Empowering E bike utilise: The control of intensity-assisted bikes in Australia and beyond is examined in this research. The current controls are examined, and the rationale for revising the guidelines in Australia is outlined. The analysis looks into the important concerns surrounding the controls that apply to these vehicles and identifies the actions that are anticipated to enable these vehicles to commit more fully to the urban transport task.

 

Hatwar, N.; Bisen, A.; Dodke, H.; Junghare, A.; Khanapurkar, M. (2020) proposed a novel strategy for e-bike design that uses a hybrid battery and super capacitor system to boost speed and circumvent issues with lengthy charging times and short battery lifespans.

 

Price, service quality, branding, and customer preferences are all regarded as crucial customer factors in the automotive sector, according to Abdullah et al. (2019). Understanding the relative significance of these dimensions could lead to more efficient resource allocation for services in the electric vehicle sector.

 

The study by Nigam et al. (2023) is predicated on how satisfied customers are with Okinawa Electric bikes. In summary, the brand name, alarm system, and motor power are the final variables that impact customer happiness. Over 90% of those surveyed are content with the bike's cost, value for money, mileage, and maintenance.

 

According to Sangeetha (2023), electric motorcycles are gradually but steadily entering the two-wheeler market. The competition in this industry has intensified due to the advent of electric motorcycles. Customers that care about the environment understand that pollution must be reduced. Users of electric bikes have a level of awareness that is considered revolutionary at this time since the traditional system that pollutes the environment needs to be replaced.

 

According to Hussain, Ahmed, and Ali's (2022) analysis, the respondents were "very satisfied" with the price, the ease of booking, and the timely pick-up and drop-off service; they were "satisfied" with the other components, which included convenience, speed, and safety. In summary, the market for Bykea electric bike services is dominated by three important factors: customer happiness, awareness-raising, and client preference. A customer's decision to utilize Bykea electric bike services is influenced by a number of factors, including convenience, brand, price, speed, safety, ease of booking, and alternatives for rapid pick-up and drop-off.

 

Proposed Hypothesis: To check the satisfaction of customers related with the factors like Price, advertisement and durability, following hypothesis needs to be checked

 

Hypothesis on Price Satisfaction

  • H₀: There is no significant association between respondents' satisfaction levels and the price of the electric scooter.
  • H₁: There is a significant association between respondents' satisfaction levels and the price of the electric scooter.

 

Hypothesis on Advertisement Influence

  • H₀: The company’s advertisement has no significant impact on respondents’ satisfaction.
  • H₁: The company’s advertisement has a significant impact on respondents’ satisfaction.

 

Hypothesis on Durability Satisfaction

  • H₀: There is no significant difference in respondents’ satisfaction levels regarding durability.
  • H₁: There is a significant difference in respondents’ satisfaction levels regarding durability.
RESEARCH METHODOLOGY

Exploratory research is conducted based on primary data collected from 120 respondents having electric scooters. Both primary & secondary data has been collected for the purpose of data analysis. A well-structured questionnaire was designed to collect the primary data from the respondents and authentic sources were used for the collection of secondary data. The data was obtained from customers having electric scooters. Judgment sampling was used to obtain the sample of 120 respondents. For the purpose of data interpretation, percentage analysis, weighted score ranking and Chi- Square test were used to check the hypothesis.

 

Data Analysis & Interpretation

  1. Percentage Analysis

 

Table 1: Consumer’s source of influence related to electric scooters?

Sr. No.

Source of awareness

No. of respondents

Percentage

1

Advertisement

60

50

2

Friends

30

25

3

Relative

20

17

4

Others

10

8

 

Total

120

100

 

The above table reveals that, 50% of the respondent’s purchasing decision influenced by advertisement, 25% of the respondents purchasing decision influenced by friends, 17% of the respondents purchasing decision influenced by relative, 8% of the respondents purchasing decision influenced by others.

 

Table 2: Scooter battery preferred by consumers

Sr. No.

Battery Capacity

No. of respondents

Percentage

1

1200 watt motor

24

20

2

1500 watt motor

56

47

3

1800 watt motor

22

18

4

2000 watt motor

18

15

 

Total

120

100

 

It is observed form the above table shows the total respondents of the study, 47% of the respondents prefer 1500 watt motor, 20% of the respondents covered 1200 watt motor, 18% of the respondents prefer 1800 watt motor and remaining 15% of the respondents prefer 2000 watt motor.

 

Table 3: The satisfaction level of consumers of electric scooter towards below mentioned factors

Sr. No.

Factors

Satisfied

Neutral

Dissatisfied

Total

 

 

No. of Respondents

Percentage (%)

No. of Respondents

Percentage (%)

No. of Respondents

Percentage (%)

No. of Respondents

Percentage (%)

1

Price

70

58

z30

25

20

17

120

100

2

Durability

50

42

30

25

40

33

120

100

3

Advertisement

65

54

10

8

45

38

120

100

4

Color

58

48

25

21

37

31

120

100

5

After sales service

53

44

28

23

39

33

120

100

6

Availability of spare parts

53

45

34

28

33

27

120

100

7

Resale value

35

29

75

63

10

8

120

100

8

Others

31

26

65

54

24

20

120

100

 

Based on the survey results, consumer satisfaction with electric scooters varies across several key factors. In terms of price, a majority of 58% of respondents express satisfaction, while 25% remain neutral and 17% are dissatisfied. Durability sees a lower satisfaction level, with only 42% satisfied, 25% neutral, and a notable 33% dissatisfied. Advertisement efforts are relatively well-received, with 54% satisfaction, 8% neutrality, and 38% dissatisfaction. Color options also score positively, with 48% of users highly satisfied, though 31% express dissatisfaction. After-sales service garners 44% satisfaction, 23% neutrality, and 33% dissatisfaction. Availability of spare parts is another critical area, where 45% are satisfied, 28% are neutral, and 27% are dissatisfied. Resale value, however, shows lower satisfaction levels, with only 29% satisfied, a dominant 63% neutral, and 8% dissatisfied. For other unspecified factors, only 26% report high satisfaction, while a majority of 54% are neutral, and 20% are dissatisfied. These findings suggest that while aspects like price, advertisement, and color receive relatively positive responses, areas such as durability, after-sales service, and resale value still require significant improvement to enhance overall consumer satisfaction in the electric scooter market.

 

Weighted score ranking analysis

 

Table 4: Important reason for purchasing electric scooter

Sr. No.

Factors

Total Score

Rank

1

Reasonable price

326

II

2

Easy availability

320

III

3

Product information

332

I

4

Eco friendly

318

IV

5

Others

220

V

 

It is noted from the above table, “Product Information” was ranked 1st with the score of 332, Reasonable price was ranked 2nd with the score of 326, Easy Availability was ranked 3rd with the score of 320, Eco friendly was ranked 4th with the score of 318 and other factors were ranked 5th score of 220.

 

Table 5: Problems faced while using electric scooter

Sr. No.

Factors

Total Score

Rank

1

High Price

226

II

2

Non-durability

138

IV

3

Poor dealer service

230

I

4

Less resale value

178

III

5

Others

125

V

It is noted from the above table, while using the electric scooter, Problem of poor dealer service was ranked 1st with the score 230, High Price cost was ranked 2nd with the score of 226, Less resale value was ranked 3rd with the Score 178, Non-durability was ranked 4th with the score 138 and Others were ranked 5th with the score 125.

 

Findings & Interpretation:

  1. Percentage analysis
  • 50% of respondents reported being influenced by the company’s advertisements.
  • 47% of respondents prefer an electric scooter with a 1500-watt motor.
  • 50% of respondents expressed satisfaction with the price of the electric scooter.
  • 42% of respondents are content with the durability of the electric scooter.
  • 54% of respondents are satisfied with the advertising efforts for the electric scooter.
  • 48% of respondents approve of the color options available for the electric scooter.
  • 44% of respondents are satisfied with the after-sales service.
  • 45% of respondents are pleased with the availability of spare parts.
  • 63% of respondents remain neutral or uncertain about the resale value of the electric scooter.
  • 54% of respondents are neutral regarding other aspects of the electric scooter.

 

Weighted score ranking analysis

  • From the analysis it is concluded that majority of the respondents prefer purchase related product information
  • From the analysis it is concluded that majority of the respondents have found the problem of poor dealer service related with electric scooter

 

Chi-Square Test: The chi- square test formula is as follows

                    χ2=∑(O−E)2 / E

       Where, O = Observed Frequency (actual values from the survey)

                      E = Expected Frequency (calculated based on row and column total)

Factor

Satisfied

Neutral

Dissatisfied

Total

Price

70

30

20

120

Durability

50

30

40

120

Advertisement

65

10

45

120

Color

58

25

37

120

After-Sales Service

53

28

39

120

Spare Parts Availability

54

34

32

120

Resale Value

35

76

9

120

Other Factors

31

65

24

120

Column Totals

416

298

246

960

Chi-Square Statistic (χ²): 144.97

Degrees of Freedom (df): 14

P-value: 7.26 × 10⁻²⁴ (very small value)

 

Chi- Square test interpretation: Since the p-value is much smaller than 0.05, we reject the null hypothesis (H₀). This means there is a statistically significant association between the factors (price, durability, advertisement) and respondents' satisfaction levels.

 

This suggests that respondents' satisfaction is not random but rather influenced by these factors.

 

Contribution of this paper to electric mobility & society:

Price Factor

  • Affordability: Mostly, the developing cities have large middle-class population that prioritizes cost-effective transportation. Electric scooters are generally cheaper to operate than petrol-based two-wheelers due to lower fuel and maintenance costs.
  • Government Subsidies: FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) subsidies help reduce the upfront cost of electric scooters, making them more attractive.
  • Cost Comparison: When comparing traditional two-wheelers, the long-term cost savings from fuel expenses and tax benefits make electric scooters a feasible option for many commuters.
  • Durability Factor
  • Battery Life & Performance: The durability of an electric scooter is primarily dependent on battery quality. Companies offering longer battery life (like lithium-ion over lead-acid) gain more trust among consumers.
  • Road Conditions in Tier 2 cities: Most of the Tier 2 cities have mix of urban and semi-urban roads, scooters with better shock absorbers and sturdy tires are preferred.
  • Maintenance & Lifespan: Electric scooters require fewer mechanical repairs than petrol scooters, making them a good long-term investment.
  • Advertisement by Companies
  • Influence on Consumer Awareness: Companies promoting their scooters through digital media, social media campaigns, and dealership promotions increase public interest.
  • Trust & Brand Recognition: Companies like Ola Electric, Ather, and Hero Electric heavily advertise their durability and cost-effectiveness, influencing purchase decisions.
  • Local Dealership Marketing: Availability and promotions through local dealerships impact how well the product reaches the target audience in cities.
CONCLUSION

In conclusion, the electric scooter market is profoundly influenced by the interplay of price, advertisement, and product durability, with each factor significantly affecting customer satisfaction. While price sensitivity remains a strong consideration for customers, the durability of the product emerges as a crucial factor for ensuring long-term satisfaction and repeat purchases. Furthermore, advertisements have a noteworthy impact, not only in increasing consumer awareness but also in shaping perceptions of the product's value. The findings suggest that companies can enhance customer satisfaction by adopting a balanced pricing strategy, creating durable products, and designing targeted advertising campaigns that communicate both the functional and emotional benefits of electric scooters. Manufacturers and marketers should aim to build trust and transparency in their messaging, as customers increasingly seek products that offer both value and longevity. Future research could delve into more granular aspects, such as the role of brand reputation or environmental concerns, to further refine strategies for enhancing satisfaction in this growing market.

REFERENCES
  1. Ansar, M. (2019). A study on consumer satisfaction towards price and performance of Honda Activa scooters in Bengaluru. International Journal of Research in Engineering, Science and Management, 2(2), February 2019. ISSN (Online): 2581-5792.
  2. Rana Pratap, V. (2019). Consumers’ perception towards two-wheelers: A study of Suzuki Access motorcycle in Warangal, Telangana. EPRA International Journal of Economics and Business Review, 6(7), July 2019. e-ISSN: 2247-9671, p-ISSN: 2349-0187.
  3. Senthilkumar, C. B., Rajesh, G., Bhatt, R., Mayakkannan, R., & Kandeepan, E. (2020). Customer satisfaction towards Honda Activa: A study in Chennai City. Test Engineering & Management, 83, 19428-19435. ISSN: 0193-4120.
  4. Abdullah, F., Abdurrahman, A. Z. A., & Hamali, J. (2019). The dimensions of customer preference in the foodservice industry. Business: Theory and Practice, 14(1), 64–73.
  5. Verma, B. K. (2018). His study states that on the basis of this study, the following suggestions can be made to help in the sales of electric bikes more effectively.
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  7. Cherry, C., & Cervero, R. (2015, November). Use characteristics and mode choice behavior of electric vehicles.
  8. Fishman, E., & Cherry, C. (2023). E-bikes in the mainstream: Reviewing a decade of research. Transport Reviews, 36(1), 72-91. Taylor & Francis Journals.
  9. Hatwar, N., Bisen, A., Dodke, H., Junghare, A., & Khanapurkar, M. (2020). Design approach for electric bikes using battery and supercapacitor for performance improvement. In Proceedings of the IEEE Conference on Intelligent Transportation Systems (ITSC) (pp. 1959–1964). Hague, Netherlands
  10. Nigam, Paheli, et al. "A Study on Consumer Satisfaction towards Okinawa E-Bike with Special Reference to Kolhapur City." International Journal of Special Education 1 (2023).
  11. Sangeetha, M. M. “Customer Satisfaction towards Electric Bikes in Karaikudi Taluk”. Dogo Rangsang Research Journal, 13 (4), 241-247 (2023).
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