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  • 1. Farrugia, L.
    et al.
    Castro, L. R.
    Beldi, N. B.
    Wünsch, A.
    Hagman, Jens
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Drágár, Z.
    Cleaning genie: An international case study in integrated product development2014In: Proceedings of the 10th International Workshop on Integrated Design Engineering, IDE 2014, Otto-von-Guericke-University , 2014, p. 133-142Conference paper (Refereed)
    Abstract [en]

    This paper documents the product development project that was carried out following the first session of the Integrated Product Development Summer School (ipdISS14). The first part of this summer school was held in Malta in May 2014. The second part was held in Magdeburg in September. The team was comprised of six members from five EU institutions and the aim of the project was develop a cleaning solution for delicate objects by using an Integrated Product Development methodology. The report presents the process in detail as well as important lessons learned. The final solution proposed, Cleaning Genie, is a cleaning add-on for cordless screwdrivers for the consumer market. Many households are lacking effective and cost efficient means of cleaning delicate objects, little did they know that the common cordless screwdriver that most of them have in their toolbox together with the affordable Cleaning Genie add-ons can solve their cleaning problems. Cleaning Genie is targeting an enormous consumer market by applying bundling and low price strategies.

  • 2.
    Hagman, J.
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.).
    Ritzén, Sofia
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.).
    Stier, J. J.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.).
    New vehicle buyers that are Battery Electric Vehicle Compatible (BEV-C)2016In: EVS 2016 - 29th International Electric Vehicle Symposium, Electric Vehicle Symposium and Exhibition , 2016Conference paper (Refereed)
    Abstract [en]

    This paper aim to identify and investigate a group of potential adopters that are compatible with Battery Electric Vehicles (BEV) in terms of range and charging, a group labeled as BEV Compatible (BEV-C). The results reveal that the BEV-C group constitutes 14 % of new vehicle buyers and that their intention to adopt BEVs are stronger compared to the non BEV-C group. The BEV-C group can be characterized as individuals that are less likely to conduct occasional longer drives (over 150 km), perceive BEVs more positively, have higher environmental awareness and have been exposed to more BEV information compared to the non BEV-C group.

  • 3.
    Hagman, Jens
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Diffusion of Battery Electric Vehicles: The Role of Total Cost of Ownership2020Doctoral thesis, comprehensive summary (Other academic)
    Abstract [en]

    Due to their high efficiency, zero tailpipe emissions and possibilities of using renewable electricity, Battery Electric Vehicles (BEVs) have been proposed as a way to alleviate the negative consequences of transport. However, as with other energy-efficient innovations market uptake or diffusion of BEVs have so far been limited. Three main barriers for BEV diffusion have been identified in the literature: limited range, lack of charging and high purchase price. Range and charging have been extensively studied. The high purchase price and other ownership costs of BEVs has not received the same amount of attention. The focus of this thesis is to go beyond the purchase price of BEVs, that in general is higher than for Internal Combustion Engine Vehicles (ICEVs). This thesis will center on costs; as the low running cost of BEVs validates further investigations regarding the Total Cost of Ownership (TCO) compared to ICEVs. The aim of this thesis is therefore to investigate the TCO of BEVs for both private and professional use-cases relative to the TCO of ICEVs, and further, to explore to which degree TCO is incorporated in the vehicle choice process. The main theoretical underpinnings of this thesis are innovation diffusion theory, a set of theories that describes the process by which an innovation is adopted among the members of a social system. In a narrower consumer behavior setting, rational choice and the emerging literature in behavior economics also forms an important theoretical basis for this thesis. The method choices in the four studies included in this thesis reflects the complex socio-technical system that BEVs inhabits. A mix of quantitative (e.g. surveys and driving data) and qualitative (interviews) methods have been used.

    The results of Total Cost of Ownership (TCO) computations in this thesis indicate that the actual cost of BEVs can be lower than for equivalent ICEVs. This has been validated for different contexts and use-cases in both private and professional settings. However, the actual TCO of BEVs is likely to have a small influence on vehicle choice. The results indicate that only a small minority (4 %) of mainstream vehicle buyers conducted a complete TCO analysis and that the majority (58 %) did not calculate any ownerships costs into their vehicle choice process. In addition, vehicle buyers have a poor understanding of on-going vehicle ownership costs of their present vehicle. Thus, they are uninformed about vehicle costs in general and of TCO in particular. Calculating TCO is a challenging task for consumers, requiring both cognitive efforts and time. It can be suspected that vehicle buyers instead use purchase price as a proxy for TCO. Approximation of costs through purchase price could yield significant overestimation in the cost of owning and operating a BEV. This thesis argues that the market introduction of BEVs requires a new approach to evaluate vehicle costs among the stakeholders involved. The relationship between high effort costs and unknown ownership cost is radically altered due to the low ownership costs of BEVs. The potential rewards of being attentive to TCO are thus larger in the case of BEVs compared to ICEVs. Several aspects have been found to correlate to being more TCO attentive: higher income, higher educational level, having a larger comparison set of vehicles and increased stated importance of TCO in vehicle choice. However, vehicle buyers receive little assistance from vehicle

    salespeople in estimating TCO of BEVs. Vehicle salespeople often focus on purchase price instead of taking the time to estimate TCO. Lower financial incentives for selling BEVs could be an underlying cause for vehicle salespeople not to emphasize the potential cost superiorities of BEVs in relation to ICEVs. In addition, the results allude that additional barriers related to BEV diffusion remains important. This is exemplified in the professional use-case of taxis that was investigated in this thesis, where range and charging limitations of BEVs negatively affected work conditions.

    Four main conclusions can be drawn based on the results of this thesis: BEVs can be TCO competitive with ICEVs, TCO is rarely applied in the vehicle choice process, the market introduction of BEVs requires a new approach to evaluate vehicle costs among the stakeholders involved, and that improved understanding and application of vehicle TCO would improve the diffusion outlook of BEVs by improving their relative advantage. Based on these conclusions it is recommend that industry and public policy address the apparent misalignment between perceived and actual TCO of BEVs. This can be done by: improving knowledge of TCO among vehicle buyers, creating a comprehensive yet simple to use TCO computational tool and increasing the financial incentives of selling BEVs for vehicle salespeople.

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  • 4.
    Hagman, Jens
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Janhager Stier, Jenny
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Selling electric vehicles: Experiences from vehicle salespeople in Sweden2020In: Research in Transportation Business and Management (RTBM), ISSN 2210-5395, E-ISSN 2210-5409Article in journal (Refereed)
    Abstract [en]

    Electric vehicles have thus far only captured a small share of the vehicle market. Much research has been focused on the perspective of existing or prospective adopters of Electric Vehicles. Less emphasis has been placed on intermediaries such as vehicle salespeople, who could be an important mediator in the product matching process by providing useful information, facilitating direct experience and having a direct influence on adoption decisions of vehicle buyers. This paper addresses this research gap by means of a qualitative investigation of vehicle salespeople at OEMs who sell both Electric Vehicles and Internal Combustion Engine Vehicles on the Swedish market. 15 interviews with vehicle salespeople at leading OEMs were conducted in the fall of 2017. The results reveal that the sales process of vehicles is mainly focused on the sales of Internal Combustion Engine Vehicles. Electric Vehicles are treated as a niche product which often requires the vehicle buyer to initiate the sales process. It can be concluded that relatively few steps have been taken by OEMs, dealerships and vehicle salespeople to influence mainstream buyers to consider Electric Vehicles as an alternative to Internal Combustion Engine Vehicles at the point of sale. Possible reasons for the bias towards Internal Combustion Engine Vehicles can be found in the apparent lack of training and experience regarding Electric Vehicles among vehicle salespeople, longer sales and delivery times for Electric Vehicles and a commission structure that that often favors Internal Combustion Engine Vehicles.

  • 5.
    Hagman, Jens
    et al.
    KTH, School of Industrial Engineering and Management (ITM).
    Janhager Stier, Jenny
    KTH, School of Industrial Engineering and Management (ITM).
    Selling electric vehicles: Experiences from vehicle salespeople in Sweden2022In: Research in Transportation Business and Management (RTBM), ISSN 2210-5395, E-ISSN 2210-5409, Vol. 45, p. 100882-, article id 100882Article in journal (Refereed)
    Abstract [en]

    Electric vehicles are capturing ever larger market shares of the new vehicle market in several large vehicle markets such as Europe and China. However, electric vehicles still only make up a small fraction of the total vehicle fleet. Much research has been focused on the perspective of existing or prospective adopters of Electric Vehicles. Less emphasis has been placed on intermediaries such as vehicle salespeople, who could be important mediators in the product matching process by providing helpful information, facilitating direct experience and directly influencing vehicle buyers' adoption decisions. This paper addresses this research gap using a qualitative investigation of vehicle salespeople at OEMs who sell both Electric Vehicles and Internal Combustion Engine Vehicles on the Swedish market. Fifteen interviews with vehicle salespeople at leading OEMs were conducted in the fall of 2017. The results reveal that the sales process of vehicles is mainly focused on the sales of Internal Combustion Engine Vehicles. Electric Vehicles are treated as niche products which often require the vehicle buyer to initiate the sales process. It can be concluded that OEMs, dealerships and vehicle salespeople have taken relatively few steps to influence mainstream buyers to consider Electric Vehicles as an alternative to Internal Combustion Engine Vehicles at the point of sale. Possible reasons for the bias towards Internal Combustion Engine Vehicles can be found in the apparent lack of training and experience regarding Electric Vehicles among vehicle salespeople, more extended sales and delivery times for Electric Vehicles and a commission structure that often favours Internal Combustion Engine Vehicles.

  • 6.
    Hagman, Jens
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Langbroek, Joram H. M.
    KTH, School of Industrial Engineering and Management (ITM), Centres, Integrated Transport Research Lab, ITRL.
    Conditions for electric vehicle taxi: A case study in the Greater Stockholm region2019In: International Journal of Sustainable Transportation, ISSN 1556-8318, E-ISSN 1556-8334, Vol. 13, no 6, p. 450-459Article in journal (Refereed)
    Abstract [en]

    This study investigates the usability of electric vehicles (EVs) in a taxi company in Greater Stockholm, Sweden. By investigating cost and revenue data of both electric and conventional taxi vehicles, as well as by interviewing taxi drivers and carriers, an assessment has been made of the financial and operational implications of using EVs in a company's taxi fleet. Both the drivers' and the carriers' perspectives have been examined. The main findings are that the investigated e-taxis have a similar or lower Total Cost of Ownership and slightly higher profitability than the investigated conventional taxis. For taxi drivers, using e-taxis implies more advanced planning and revenue service time being sacrificed for charging. However, certain customers' preferences for EVs, as well as benefits such as corporate clients favoring e-taxis and a zero emission priority queuing system at Stockholm's main international airport (partly) compensate for time devoted to charging. In order to facilitate increased use of e-taxis, more fast charging facilities should become available at strategic locations. Besides that, there are signs that carriers' lack of information about the opportunities and consequences of shifting towards e-taxis hamper a wider deployment of e-taxis.

  • 7.
    Hagman, Jens
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Ritzén, Sofia
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Janhager Stier, Jenny
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    The TCO Paradox: A Key Problem in the Diffusion of Energy Efficient Vehicles?2017In: American Journal of Industrial and Business Management, ISSN 2164-5167, E-ISSN 2164-5175, Vol. 7, p. 1267-1284Article in journal (Refereed)
    Abstract [en]

    The aim of this paper is to explore how mainstream vehicle buyers perceive and apply Total Cost of Ownership in their vehicle choice process. All else equal, rational consumers ought to evaluate Total Cost of Ownership in order to acquire the real cost of owning a particular vehicle under consideration, unless bounded rationality is affecting their behavior. The results reveal that vehicle buyers generally are capable of understanding the relative size of indi- vidual costs that make up vehicle Total Cost of Ownership but fail to evaluate and apply multiple costs in their vehicle purchase process. Regression analysis exposes that income, educational level, stated importance of Total Cost of Ownership and the number of vehicles in the choice set have a positive asso- ciation with the degree that consumers conduct an evaluation of vehicle Total Cost of Ownership. Failure to consider Total Cost of Ownership can lead to uneconomic vehicle choices, which is here labeled as the TCO paradox. This could have an especially negative effect on the diffusion of battery electric ve- hicles, which require a more detailed cost analysis in order to extract its low operating cost structure.

  • 8.
    Hagman, Jens
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Ritzén, Sofia
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Janhager Stier, Jenny
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    The Total Cost of Ownership paradox and its implications for Electric Vehicle diffusion2014Conference paper (Other academic)
  • 9.
    Hagman, Jens
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Ritzén, Sofia
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Janhager Stier, Jenny
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Susilo, Yusak
    KTH, School of Architecture and the Built Environment (ABE), Transport Science, Transport Planning, Economics and Engineering.
    Total cost of ownership and its potential implications for battery electric vehicle diffusion2016In: Research in Transportation Business and Management (RTBM), ISSN 2210-5395, E-ISSN 2210-5409, Vol. 18, p. 11-17Article in journal (Refereed)
    Abstract [en]

    Battery electric vehicles (BEVs) have been slow to diffuse on the international as well as the Swedish market. Previous studies have indicated situational factors such as economic factors, size and performance to be of major importance for vehicle purchasers in their choice of vehicle. In this paper, the authors explore a consumer centric total cost of ownership (TCO) model to investigate the possible discrepancy between purchase price and the TCO between internal combustion engine vehicles (ICEVs), hybrid electric vehicles (HEVs) and BEVs. The creation and testing of the TCO model reveals that computation could be a challenging task for consumers due to bounded access of relevant data and the prediction of future conditions. The application of the model to the vehicle sample found that BEVs could be cheaper compared to ICEVs and HEVs. The findings in this paper could prove to be of importance for policy and marketing alike in designing the most appropriate business models and information campaigns based on consumer conditions in order to further promoting the diffusion of BEVs in society.

  • 10.
    Hagman, Jens
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Ritzén, Sofia
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Stier, Jenny J.
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Total cost of ownership and its potential implications for electric vehicle diffusion2014In: Proceedings of NordDesign 2014 Conference, NordDesign 2014, Aalto University , 2014, p. 366-375Conference paper (Refereed)
    Abstract [en]

    Battery Electric Vehicles have been slow to diffuse on the international as well as the Swedish market. Existing literature have pointed to situational factors such as economical factors, size and performance to be of high importance for car purchasers in their choice of car. In this paper the authors investigates the apparent discrepancy between purchase price and the Total Cost of Ownership between Internal Combustion Engine Vehicles and Battery Electric Vehicles. The Total Cost of Ownership computation reveals that Battery Electric Vehicles can be cost competitive with Internal Combustion Engine Vehicles, a significant finding that could prove to be of importance for the diffusion of Battery Electric Vehicles, although further studies are needed to test car purchasers' knowledge regarding the Total Cost of Ownership analysis.

  • 11.
    Langbroek, J. H. M.
    et al.
    KTH, School of Industrial Engineering and Management (ITM), Centres, Integrated Transport Research Lab, ITRL.
    Hagman, Jens
    KTH, School of Industrial Engineering and Management (ITM), Machine Design (Dept.), Integrated Product Development.
    Coping with a growing number of e-taxis in Greater Stockholm: A stated adaptation approach2020In: Case Studies on Transport Policy, ISSN 2213-624X, E-ISSN 2213-6258Article in journal (Refereed)
    Abstract [en]

    The introduction of electric vehicles in taxi companies has shown that operating electric taxis can be profitable and useful already under current circumstances. However, a significant future increase of electric taxis within relatively short time could impose severe challenges to the system. In this paper, current charging patterns and demand for electric taxi rides were analysed to design future scenarios with a significantly higher number of electric taxis and changes in fast charging technology and pricing. A qualitative stated adaptation experiment was carried out among taxi drivers and carriers in order to explore important human factors for coping with changing driving and charging conditions in scenarios with significantly more electric taxis or potential policy changes. The main findings are that hired drivers and carriers react differently to temporal price differentiation. Hired drivers make more use of faster but more expensive charging infrastructure than carriers do. Speed and convenience of charging events seems to be more important for hired drivers than for carriers. An increasing number of electric taxis is likely to increase the strains on urban public charging infrastructure, thereby stimulating charging at home or at currently less popular charging infrastructure. Moreover, there is a risk that the already existing imbalance between carriers and hired drivers could escalate in the future.

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