Two-sided advertising in the EV market

Abstract

Two-sided advertising is a marketing approach where both pros and cons of a product are presented. In the context of advertising, consumers may feel skeptical or suspicious when they are exposed to only positive claims about a product, as they perceive a potential bias or lack of objectivity. Using two-sided advertising can address these concerns by offering a more balanced and comprehensive view of the product. When a company is honest about the limitations of a product, it effectively communicates a message of transparency and integrity. This, in turn, improves trust and authenticity among consumers, leading to more reliable and trustworthy brand images. Theoretical explanations for the effects of two-sided messages can be found in the literature where inoculation theory, attribution theory, and optimal arousal theory are combined to explain both positive impacts and caveats of two-sided messaging.

The trend of electric vehicles (EVs) is steadily growing worldwide signaling a significant shift towards sustainable transportation. While EVs produce zero tailpipe emissions, their battery production requires substantial energy and raw materials, including rare metals. Additionally, favorable policies and growing zeroemission awareness have led to increased private car usage. This could offset the positive impacts of EVs. It is crucial for consumers to comprehend that EVs do not entirely epitomize an environmentally friendly solution, dispelling any misconceptions of them being a panacea for environmental concerns. However, companies need to be careful in communicating the shortcomings of EVs to consumers so as not to damage consumer trust and thereby reduce brand equity.

There is no existing study that measures the effect of two-sided advertising in the EV market. Since two-sided advertisements can increase consumer trust, which is the basis of brand equity, these two concepts are connected in this study. The aim of this research is to investigate if two-sided advertising can increase consumerbased brand equity in the EV market. Additionally, the study will investigate whether the green trust has a mediating role in the relationship between two-sided advertising and consumer-based brand equity, as well as whether environmental involvement has a moderating role on the relationship between two-sided advertising and green trust.