Abstract:
The diffusion of AFV’s is comparatively high in Sri Lanka, even though the
uncertainties and negative consequences of owning them are perceived
to be high. This contradicts the theory of perceived risk which postulates
that when customers perceive the negative consequences of purchasing,
goal driven purchase intention should weaken. Hence, the purpose of this
paper is to examine the effect of perceived risk on the relationships between
key purchasing determinants and purchase intention of alternative fuel
vehicles in Sri Lanka. This study examines this unexpected local consumer
behaviour through the lens of the Theory of Perceived Risk and the
study employed structured questionnaires to gather primary data from
the sample utilizing a convenience sampling technique. It employed two-
step Partial Least Squares (PLS)-Structural Equation Modeling (SEM) to
analyze the data, and the analysis revealed that performance expectancy
facilitating conditions (FC) are the key determinants of the purchase
intention of AFV customers in Sri Lanka. Furthermore, perceived risk was
found to moderate the relationships between these determinants and the
purchase intention of customers who plan to invest in AFVs.
