IBSS In‑depth Research: The Commodity Trap — How Market Homogeneity Reshapes Divergent Consumer Behaviours in China’s EV Industry

21 Aug 2026

As China’s new‑energy‑vehicle industry enters a stock‑market competition phase, rapid market expansion has been accompanied by widespread product convergence. Converging hardware specifications, highly‑referenced exterior‑interior designs, stacked in‑vehicle smart functions, homogenised direct‑sales service models and repetitive marketing narratives collectively foster the consumer psychological state of perceived brand parity. Many consumers subjectively believe mainstream EV brands show limited meaningful differences and that competing vehicle models are largely interchangeable.

Beyond the widely‑noticed aesthetic fatigue, market homogeneity generates far‑reaching consequences. Empirical evidence demonstrates that brand‑parity perceptions trigger distinct psychological and behavioural outcomes for existing EV owners and prospective non‑owner buyers. Consequences include innovation fatigue, eroded user satisfaction, higher brand‑switching inclination, amplified risk perception among potential purchasers, elevated price sensitivity and weakened purchase intention. Left unaddressed, the industry risks falling into a “commodity trap”, where competition degenerates into pure price‑cutting, squeezing profit margins across the sector and discouraging long‑term corporate innovation investment. These findings carry substantial practical implications for automaker product positioning, brand building and national policy design for sustainable mobility transition.

This important research is conducted by Xiaofan Chen and Professor Lixian Qian from the International Business School Suzhou (IBSS), Xi’an Jiaotong‑Liverpool University. The paper, titled “Too similar to choose from: A mixed‑methods study on consumer response to market homogeneity in China's electric vehicle sector”, has been published in Transport Policy, a top‑tier SSCI Q1 journal for transport‑policy research. The work is supported by grants from the National Natural Science Foundation of China.

Most prior EV‑adoption research focuses on purchase drivers such as subsidies, driving range, charging infrastructure and environmental values, yet rarely explores how supply‑side market homogeneity shapes consumer cognition, attitudes and behaviours as the industry matures. To fill this gap, this study applies a sequential mixed‑methods approach. The team first conducted thematic coding analysis of 41 industry media articles alongside 102 open‑ended consumer questionnaires, cross‑verifying insights from industry commentary and user feedback and identifying six forms of EV homogeneity grouped into three categories: functional convergence (similar hardware components and software‑driving‑assistance experience), formulaic design (stylised exterior features and template‑like interiors), and marketing convergence (imitated service models and homogeneous brand messaging). Building on these qualitative findings, the research constructs a model grounded in the Stimulus‑Organism‑Response (SOR) framework, treating homogeneity as external stimuli, perceived brand parity as the psychological mediator, and attitudinal‑behavioural shifts as outcomes. Based on 624 valid survey responses (309 EV owners and 315 non‑owners), quantitative tests are performed using structural equation modelling. Empirical results reveal clear differences in evaluation cues between the two groups: prospective buyers rely heavily on searchable external information including hardware specifications, styling and marketing materials, whereas existing owners judge similarity through lived experiential cues such as software performance, cabin experience and after‑sales service; exterior design serves as a shared reference for both cohorts. Strong perceived brand parity triggers innovation fatigue, reduced satisfaction, higher brand‑switching intention and passive usage of smart features among EV owners. For non‑owners, it brings greater innovation fatigue, heightened risk perception, higher price sensitivity and weaker purchase intention. Furthermore, personal innovativeness acts as a moderator: consumers open to new technologies exhibit stronger psychological and behavioural responses to market homogeneity.

 

Practical Implications for Industry and Policymakers

For EV Manufacturers

Adopt segmented communication strategies. For prospective buyers, emphasise tangible differentiators in hardware and exterior styling and avoid generic high‑tech slogans. For existing owners, prioritise continuous software optimisation, cabin refinement and full‑lifecycle service value, rather than competing purely on paper‑based technical parameters.

Fight commodity‑trap price wars through bundled value‑added offerings. Instead of relying on price cuts alone, combine home‑charger installation, extended‑warranty packages and exclusive owner benefits to preserve reasonable product premiums.

Reject pseudo‑innovation marketing. Avoid hyping minor incremental updates as revolutionary breakthroughs. Over‑marketing trivial upgrades aggravates consumer innovation fatigue and erodes public trust in genuine industry technological progress.

For Policymakers

While rolling out unified industrial standards, foster diversified technological pathways. Encourage alternative battery chemistries and differentiated software‑ecosystem exploration, preventing standardisation from inadvertently driving excessive product convergence.

Develop independent, transparent third‑party public evaluation platforms. Publish objective comparisons of vehicle performance and total‑cost‑of‑ownership metrics to help ordinary consumers identify genuine product distinctions and reduce decision‑making anxiety caused by market homogeneity.

Design differentiated incentive policies for heterogeneous consumer segments. Cater for both technology‑seeking early adopters and risk‑averse mainstream consumers who prioritise stability and reliability.

About the Authors:

Dr Xiaofan Chen is a joint postdoctoral researcher at XJTLU and Fudan University. He obtained his PhD from the University of Bristol, funded by the China Scholarship Council. His research has been published in journals including Psychology & Marketing, Industrial Management & Data Systems, and Transport Policy.

Professor Lixian Qian is a Professor in Marketing and Innovation at International Business School Suzhou (IBSS) of Xi’an Jiaotong-Liverpool University (XJTLU). He is currently serving as the Associate Dean for Research at IBSS and the Deputy Chair of University Research Committee. He was the founding director of Smart Mobility Analytics Center of IBSS.

Professor Qian’s research focuses on innovation/technology adoption and diffusion, data-driven marketing strategy, smart mobility, and sustainability. His research has been published widely on leading international journals, such as Production and Operations Management, Risk Analysis, Journal of Travel Research, Tourism Management, Journal of Business Ethics, Transportation Research Part A, Psychology & Marketing, Journal of Business Research, Technological Forecasting Social Change, among others. His research has been funded three times by the General Programme of National Natural Science Foundation of China (NSFC). He is the Fellow of the Higher Education Academy (FHEA) in the UK and the council member of China Marketing Association of Universities (CMAU).

He serves as the Section Editor of Sustainable Futures (JCR Q1, CAS Q3, ABS-1), Editorial Board Member of Technological Forecasting & Social Change (JCR Q1, CAS Q1, ABS-3), and ad-hoc reviewer for over 20 SCI/SSCI academic journals and international conferences. He received the 2016/2017 Outstanding Teacher Award of XJTLU, the Outstanding Advisor of the Sixth China National College Students Competition on Energy Economics in 2020,  the Best Paper of 2024 Academy of Management Annual Meeting (Technology & Innovation Divison), the Excellent Paper Award of 2024 Chinese Academy of Management Annual Conference, the Second Prize of Best Paper Award of 2026 Marketing Science & Innovation (MSI 2026) International Conference. He was selected into the Jiangsu 333 High-level Talent Programme in 2022.

Journal Introduction

Published by Elsevier, Transport Policy is a globally authoritative SSCI Q1 journal specialising in transport economics, sustainable mobility transitions and transport‑policy evaluation. It publishes high‑quality empirical and mixed‑methods studies worldwide and enjoys strong international academic standing within mobility‑policy research communities. It ranks Q1 in both Economics and Transportation JCR subject categories, with a latest Impact Factor of 6.2 and h‑index of 77. The journal applies rigorous peer‑review standards and prioritises research delivering actionable insights for industry practice and public policy.

21 Aug 2026