Innovation - Chinese Car

With the foundation of the background information and problem presented above, the primary research question would focus on finding out whether Chinese car customers are willing to purchase a hybrid vehicle when understanding the environmental benefits it brings but with a cost that is much higher than a vehicle of an equivalent class. In order to answer this research question, a series of more specific components questions would be studied deeply. Besides of evaluating the overall level of acceptance and recognition of hybrid vehicle in China, the research would also want to discover if there is/are certain target market(s). Therefore within different types of vehicle users, the research would determine whether variables such as gender, age, education level, financial situation would have an effect on the likelihood of purchasing a hybrid vehicle. Moreover the research would investigate the degree of environmental awareness Chinese vehicle users hold and determine the priority of criteria that affect their buy in a new vehicle. Basically a large number of meaningful and significant component questions would support our group to discuss and probe the main research question.

The problem cornering the top management of Toyota Motor Corporation now is whether they should make the vital decision of introducing their hybrid vehicles into the Chinese market. However there is a great deal of uncertainty because there is no idea to know how Chinese car customers think of this state of the art vehicle. Even though the extra environmental values it deliveries, it is still a car more expensive car than a car of the same class. There is the question about the level of environmental consciousness Chinese car customers have and would they be able to accept the higher price of a hybrid vehicle. Moreover there is the assumption that sales of hybrid vehicle will go up positively correspond to the price of petrol. However there is no way to see how sales of hybrid vehicle