CUSTOMER PREFERENCE ANALYSIS ON ATTRIBUTES OF TOYOTA’S EV SHUTTLES USING CONJOINT APPROACH: A BUSINESS CASE OF THE STONES HOTEL BALI COLLABORATION PROJECT

• Main Author: Natalia, Nathasya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84022
• Institution: Institut Teknologi Bandung

Global movement towards carbon neutrality has placed significant pressure on industries to the transformation of sustainable practices in all possible efforts. In Indonesia, the government has the established the target to achieve national target of Net Zero Emission (NZE) by 2060, with a focus on transportation sector that being one of significant contributor to the country's carbon footprint. According to the Climate Transparency Report of 2022. The majority of Indonesia's power sector is dominated by fossil fuels, which account for 81% of the energy sources. Coal specifically contributes to 62% of the overall energy generation. The transportation sector continues to be the primary contributor to greenhouse gas emissions (GHG), accounting for 25% of total emissions, after energy sector at the first place. More than 90% of GHG emissions in transportation come from land transportation. As a result, the Indonesian government is focusing its national decarbonization strategy in the transportation sector by accelerating the adoption of environmentally friendly, low-emission, and electrified vehicles (xEV) to address these concerns, as well as transitioning to renewable energy. As part of the national strategy, Bali has been designated as a pioneer area, aiming to reach NZE earlier than national target by 2045 with one of initiatives related to the usage of the xEV vehicles in tourism area. This context creates an urgent need for research into sustainable efforts in Bali, including in sustainable mobility solutions. In that sense, The Stones Hotel Legian Bali, a leading player in the hospitality sector in Bali under the Marriot Group, is actively seeking opportunities to assist the Bali Provincial government in promoting the use of electric vehicles. In addition to supporting the Government, the Stones Hotel Bali also faces the challenge of maintaining a competitive edge in a market that is characterized by growing environmental consciousness and sustainable practices among travellers. This circumstance emphasizes the importance of hotels meeting guests' needs for more sustainable transportation solutions. The hotel must synchronize its operations with Bali's NZE objectives while also fulfilling the evolving needs of guests for ecofriendly transportation solutions through xEV alternatives. Nevertheless, there is still uncertainty regarding which xEV technology would effectively address visitor needs and preferences, while also meeting the operating requirements of the hotel. ii The xEV technology itself consist of Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), and Battery Electric Vehicle (BEV), will address guest needs and preferences as well as hotel operational requirements. Concurrently, Toyota Indonesia, as a leading car manufacturer with over 50 years of market leadership in Indonesia is committed to support Indonesia Government to popularize xEVs. The company must navigate the transition to electrification while maintaining its competitive edge. In that sense, the company faces the challenge of how to develop appropriate xEV (BEV/PHEV/HEV) products that not only meet Indonesia market needs but also align with Indonesia's sustainability goals in massive scale. To support the transition process, Toyota will focus to understand customer preferences and acceptance levels for various xEV models in pilot sectors such as tourism area. This pilot program will provide thorough insights into the ecosystem required, including the most preferred model and factors based on visitor perspective, before the company decided to scaling up to mass manufacturing to achieve more massive xEV deployment in Indonesia. Given all the pain points faced by The Stones Hotel and Toyota Indonesia, both parties agreed to work together in conducting a trial of xEV for hotel shuttle using multiple types of EV (BEV/PHEV/HEV). To address these challenges, this research aims to answer how customer preferences for Toyota's multiple EV technologies can be understood in the context of hotel shuttle by analyzing customer preferences for Toyota's xEV shuttle services at The Stones Hotel Bali. The research aims to identify the most influential attributes driving customer choices for xEV shuttles and determine optimal attribute combinations for xEV shuttles based on customer preferences, in order to to propose marketing programs to increase xEV utilization in alignment with Bali Provincial goals. The research employs Conjoint Approach with Choice-Based Conjoint (CBC) method, concentrating on five essential attributes: (1) EV rent price, (2) capacity, (3) technology, (4) CO2 emission reduction, and (5) baggage capacity. This methodology allows for a systematic exploration of how these attributes affect customer decisions and quantifies their impact on overall acceptance, providing a detailed understanding on most influential attribute and the most favoured combinations of attribute levels. The findings from the research reveal that the most critical attributes influencing customer preferences for Toyota xEV shuttles at The Stones Hotel Bali are EV rent price (33.18%), EV capacity (24.97%), CO2 emission reduction (18.84%), EV baggage/cargo capacity (15.63%), and EV technology (7.38%). Customers prioritize affordability, as indicated by the high importance placed on EV rent price. Capacity is the second most important attribute, suggesting that customers prefer shuttles that can accommodate larger groups. CO2 emission reduction is also a significant factor, reflecting the growing environmental consciousness among travellers. While xEV baggage/cargo capacity and xEV technology are less critical, they still play a role in customer decision process.