Impacts of heterogeneous green consumers on green innovation in electric vehicle and charging pile firms

Although the significant effect of heterogeneous green consumers on green innovation in electric vehicle firms and charging pile firms has been recognized, the influence of heterogeneous green consumers is still unclear. Therefore, we propose a two-dimensional model of vertically differentiated product preferences and horizontally differentiated green quality preferences. In the model, according to the heterogeneity in the perception of green awareness and anticipation of the green quality of charging pile firms, three green consumer segments, namely, light, medium and heavy, are considered. We use this economic model to examine the implications of green innovation by analyzing three green consumer innovation strategies. The findings show that when electric vehicle firms unilaterally implement green product innovation, the corresponding optimal price for charging pile firms decreases in the green consumer segment. The result also suggests that although three green consumer segments exist, it is wise for both types of firms to perform green product innovation. Furthermore, electric vehicle and charging pile firms should increase efforts in green innovation to satisfy consumers’ diversified green demands.