22
Sep

Have You Lost Sight of Your Target Customer?

Have you lost sight of your target customer?

By: Kea Wheeler, Senior Project Director

Imagine if your boss told you that she had found the perfect target group based on attitudes and needs segmentation, called Savvy Savers, and wants to conduct research with them.

But once you head off to find this target group, your boss tells you these Savvy Savers also have to drive a certain type of car, be aware of a certain brand, have 2.5 kids, see themselves as innovative, like to try new things, and must be located in Dallas. Welcome to the world of recruiting qualitative research with a segmentation algorithm screener.

What is a segmentation algorithm screener?

Traditional screeners use a set of questions to identify qualified consumers to participate in qualitative research. These questions usually revolve around criteria such as demographics (i.e. age and income) and can include category preference questions.

A segmentation algorithm screener is more complicated. Companies usually segment their market into subsets based on criteria such as attitudes, usage, or needs. These segmentations are usually done through a national quantitative survey. The results provide population subsets that companies usually name in order to speak about these segments of their target market in a more personal way.

Once the segmentation is complete, companies have a list of questions that they feel every named segment, such as the Savvy Savers, will answer the same way regardless of where they live. These series of questions is called an algorithm.

Why are segmentation algorithm screeners problematic?

Not all segmentation screeners are a bad thing. When applied effectively, they can bring companies closer to their target market. Issues arise when expectations are different from reality.

Issue #1: The algorithm target may not be the real target audience

Let’s use our Savvy Savers target as an example of being “the perfect target.” If the potential consumer answers the algorithm questions in a certain way, they fit the desired target market and qualify for the study. However, “this perfect target” is never perfect on an algorithm screener. Clients want potential participants to qualify for the study by answering the algorithm questions a specific way and, in addition, meet a host of other criteria. This means that the “perfect target” is indeed perfect on paper in the segmentation report, but not when it comes to who they want to actually attract in the marketplace.

Issue #2: A national incidence does not always equate to a specific market’s incidence.

Segmentation surveys are typically fielded with a broad geographic scope. This produces a national incidence or incidence rate. For example, if a company determines that the incidence to find a Savvy Saver is 20% nationally, that means that if 100 people across the country were called and screened, one should find 20 people who can be classified as Savvy Savers.

This seems reasonable enough. But qualitative research is not based on national representation. For the most part, qualitative research is conducted in 1-3 markets. This makes it harder to find and recruit the desired target group.

Issue #3: Qualitative research may be completed at a fixed location.

In some Qualitative research methodologies, it is necessary for participants to come to a specific location to participate, which further limits the number of potential recruits because respondents must be within a certain radius of the facility. Couple the limited location with the need for consumers to attend the research on a specific date and at a specific time and the pool of potential Savvy Savers to recruit may have dropped from 20 to 3.

Issue #4: The algorithm may be outdated.

Segmentation studies can be expensive and time consuming. So it is understandable that companies may only conduct a segmentation study once every few years. This may be acceptable for items that take more time to change such as attitudes and beliefs, but things such as needs and usage can change dramatically in a short amount of time. Circumstances can create lower incidence, which means less potential respondents for the qualitative study being recruited.

Issue #5: Algorithms can increase costs and may reduce the number of willing recruiters.

Recruiters dislike algorithm recruits. Seriously, dislike them. This disdain can result in higher per recruit costs or recruiters flat out refusing a project.

One of the reasons recruiters dislike segmentation algorithm screeners is because the algorithm “key” is a huge secret known only to the client and the supplier who conducted the segmentation study. This minimizes the ability for recruiters to “pre-screen” their databases.

Without the pre-screen option, Maya Middlemiss, the Managing Director of research recruitment consultant Saros Research Ltd in the UK and Casslar Consulting in Spain, warns recruiting costs could resemble that of cold calling. In Middlemiss’ article, Recruiting qualitative participants research using quantitative algorithms, she  explains,

If we are provided a locked tool, the only thing we can do is apply it after the event during the telephone interview stage – this is more cumbersome and expensive, because it does not enable us to rule out people who are not a fit before the calling stage.  Depending on the expected incidence of the desired segment(s), the strike rate – and therefore costs involved in recruitment – may even approach that of cold-calling. That is often a surprise to clients, but it is a consequence of trying to use quantitative tools in qualitative research (April, 2016).

We’ll continue this discussion in part 2 of our post on the use of a segmentation algorithm screener next week, where we will discuss solutions and the value that this type of methodology can provide.

More
14
Sep

For Most Americans, Being “Mobile” Still Requires a Personal Vehicle

For Americans, Being "Moble" Still Requires a Personal VehicleBy: Bryan Krulikowski, Senior Vice President

How do you get from point A to point B? Given that 4-in-10 consumers believe their primary mode of transportation will be different five years from now than today, the answer to this is going to become increasingly complex.

The goal of the Morpace MOVETM Study that was recently fielded and is now available as a syndicated study is to help answer this question. We surveyed more than 3,000 consumers across eight U.S. metropolitan markets and uncovered some interesting consumer insights about the role of transportation and mobility in this new “Sharing Economy.”

Consider:

  • Overall, more than two-thirds of respondents would have their ability to get around strongly impacted by not owning their own personal vehicle.
  • Although ride-sharing services are currently being used at a greater rate than car-sharing services, they are reserved for “occasional” use and not relied on as every day transportation.
  • Despite lower levels of vehicle ownership, Urbanites have a stronger emotional attachment to their vehicle than Suburbanites—even going so far as to give their vehicle a name.
  • Finally, fewer than one-third of respondents feel that alternative mobility solutions are practical for them. After all, consumers do not see any other option as convenient as owning a primary vehicle in the U.S.

This shouldn’t come as a major surprise. For decades, vehicles have represented freedom for many Americans. The national highway system has made it feasible to get from state to state, where driving long distances for work or play is more common than in other parts of the world.

Among the many findings in this study is the idea that the majority of consumers clearly feel that having their own vehicle is necessary. They may not use it every day, as other results from the Morpace MOVETM Study show us, but when they need their vehicle, THEY WANT IT.

The study also gives us ideas for how and when personal vehicles are used compared to other forms of transportation. Public transit, particularly in urban areas, does (and will continue to) play a role, perhaps based most on convenience and cost. One-half of respondents have access to public transportation within one mile of their residence. Still, public transportation comprises just part of the mobility puzzle for Americans today.

Morpace MOVETM found that eBike, shared bikes, and car-sharing modes show the greatest potential increase in spend in the next one to three years. But there are times that Americans want to get where they want, when they need to get there. So even for those living in some of the country’s most densely populated communities, nearly all respondents use their own vehicle at least a couple times per month. And three-quarters of current vehicle owners are planning to buy or lease a new vehicle in the next five years.

We may now be part of the “alternative mobility” movement in the U.S. Yet, the value and importance of a personal vehicle remains high for Americans because of that sense of freedom it provides – no matter where you live in this country.

Other findings and insights are available through our Morpace MOVETM Study and you can learn more by clicking here.

More
8
Sep

Is Autonomy Happening Too Fast?

Is autonomy happening too fast?

By: Greg Swando, Senior Research Director

While automotive manufacturers across the globe work feverishly to equip their current automotive line with the latest Advanced Driver Assistance Systems (ADAS), and some even striving for full autonomy as early as 2020, how are consumers reacting to this new technology?

We’ve published a new study on consumer sentiments toward autonomous driving technologies and among the findings we learned that up to 50 percent of U.S. drivers that own vehicles equipped with driver assistance systems are turning them off.

Why? According to consumers it’s because some feel they are more confident in their own abilities to anticipate emergency situations.  Others find the warnings and audible alerts to be annoying. Several consumers don’t fully trust some of the ADAS technologies that are now being incorporated, while others may not even be aware whether or not they own the features.

At the same time, there are segments of consumers seeking out ADAS features and excitedly look forward to the day of a fully autonomous vehicle. These consumers are ready, and willing to put full their trust in the current technology—but is the technology ready to be trusted? Take a look at the recent Tesla Autopilot crash. We believe that one of the outcomes of our study is that consumers need to be educated on how these features work, why they’re needed, and how they can benefit from them.

While OEMs are planning to increase their investments and marketing spend toward fully autonomous vehicles within the next 10 years, consumers need to feel better prepared to drive these vehicles than they are today. Such consumer education is key to not only getting the public to trust the new features, but to also use them properly so that accidents, like the recent Tesla one, can be avoided.

Our study, A Consumer Centric Journey Toward Autonomy, highlights customer opinions and experiences—both good and bad—when it comes to autonomous features, and found various consumer personas that will shape future autonomous vehicle adoption. These findings will help OEMs and suppliers better understand the consumer and their relationship to new autonomous technology, preventing the consumer from feeling autonomy is being adopted too quickly.

More
31
Aug

Auto Manufacturers’ Response to the Takata Airbag Recall

Auto Manufacturers’ Response to the Takata Airbag Recall

By Greg Deinzer, Research Director

If you are like 62% of Americans, you are aware of the largest-ever U.S. auto recall by Japanese company Takata Corporation for defective airbag systems. The recall affects tens of millions of vehicles and dozens of vehicle manufacturers/brands, and has expanded dramatically over the past six months. Findings from Morpace’s July 2016 Omnibus survey of 1,000 U.S. respondents provide consumers’ opinions and feedback on this critical concern.

According to media reports in May of this year, at least 10 deaths and more than 100 injuries have been linked to the airbag problem worldwide. Additionally, the recall is expected to take place in phases over the next 2-3 years, and a few auto manufacturers are still equipping their new vehicles with the type of Takata airbags that are currently being recalled. Here’s hoping the other 38% who are unaware of the recall stay off the road for the next three years.

Somewhat surprisingly, those aware of the recall have about the same impression of the auto industry as those who are unaware, with more than one-third rating it “Good” or “Excellent”, over half rating it “Fair”, and only 1-in-10 rating it “Poor” or “Very Poor.” Ratings are higher for those on the recall list and for drivers who have been notified by the manufacturer or have had their airbags replaced. Even so, one-fourth of those who heard about the recall before this survey have a somewhat lower or much lower opinion of the auto industry in general.

Honda/Acura and Toyota/Lexus automobiles account for over half of the vehicles mentioned by survey respondents as being on the recall list. Although 6-in-10 vehicles on the list have already been replaced, 82% of those who are still waiting for replacement airbags have not been given an estimated time frame for their repairs.

Dealer Manufacturer actions chart

Seventy percent of those who are still waiting for replacement airbags are driving their vehicle as usual. That is, they are not taking any additional actions or precautions such as driving the vehicle less often, or not allowing anyone to sit in the front passenger seat. Likewise, in over one-fourth (28%) of pending recall replacements, the dealers or manufacturers are not providing any amenities to those who are waiting.

On the other hand, many companies are taking steps to alleviate or correct the situation by installing airbags from another supplier, providing a rental car, or deactivating or removing the airbags altogether until they can be replaced.

Some feel that mistakes happen and that recalls are inevitable. As one respondent put it, “auto manufacturers should not be blamed for the defects of one supplier.” Yet others hold vehicle manufacturers to a higher standard and expect quicker notification, an action plan, and replacement in a shorter period of time.

Many hold a more negative view—that automakers are willing to cut corners at the expense of safety. One respondent referenced an ironic fact: “a safety airbag manufacturer that manufactures unsafe equipment.”  Still, in relation to the airbag recall, only 7% do not feel at least moderately safe driving their vehicle.

Consumers are split on their feelings of how Takata is handling the recall. Thirty-four percent are “Very” or “Completely Satisfied”, 33% are “Moderately Satisfied”, and 33%are “Not Very” or “Not at all satisfied.” Auto manufacturers receive higher satisfaction ratings. Almost half of respondents are “Very” or “Completely Satisfied” with the way their vehicle manufacturer is handling the recall.

This illustrates the importance of open communications by suppliers and OEMs in clearly disseminating information and warnings to the public even if your hands are tied for months or even years. In this case, and probably many others like it, the public is likely to be more forgiving when transparency is used with consumers.

More
24
Aug

5 Myths About Being a Moderator

5 myths about moderators

By: Kea Wheeler, Senior Project Director

1: Travel for work = vacation

Being a moderator and traveling for work, people often comment on how “lucky” I am to travel for my job.  It is true that I am lucky to have a career that I enjoy, but being “lucky” because of my work travels is an overstatement.

When I travel for a project, I usually work 9-12 hours per day inside of a temperature controlled, windowless facility. After my interviews are complete, I stagger out into the night air in search of food and beverages and then hurry back to my hotel room to write-up my notes for the day…then repeat. I know what you’re thinking “wait, that sounds like…work.” Well it is work.  And this cycle could last for 1 day or up to 10 days if I am participating in a clinic. So travel yes; vacation it is not.

2: Traveling gets you away from the office

When I relate my tale of what it is truly like for me to travel for work, I often hear “well at least you are away from the office.” With the advent of smart phones, and other mobile devices, is anyone ever truly away from the office? Not really. And this holds true for moderators too. Just because I am not physically positioned at my desk in our office building, does not mean that I am “away” from the office.

Once back at my hotel in the evenings, I am answering all of the emails that I received while I was conducting interviews. The work back home doesn’t stop while I’m out on the road and neither do the email/text notifications.

3: Moderating is easy

This is my favorite moderator myth.  There are some who look from the outside and see me “talk” for a living. But moderating is much more than simply talking to someone. It is engaging in conversation about topics that consumers may not even know they could converse about at length. When I conduct interviews about a topic or product that consumers take for granted, such as a cleaning product, my interviewees wonder, “What is there to talk about for an hour?” Once we are engaged in the conversation and our time together has expired, respondents are shocked to realize that we did, indeed, talk for an hour.

I will say it is easier to speak to someone about a concept vehicle, but it takes skill to keep a somewhat natural conversation going about toilet cleaner.

Besides maintaining a conversation, my job also entails observing what is happening around me and determining my next move.  In all things, body language is important. And as a good moderator, this should always be taken into account. Body language tells me when I need to follow-up on a response, when I need to ask another respondent what their position is on a subject, or when I should let a line of questioning lapse until the respondent feels more comfortable speaking on a certain topic.

So yes, I talk about everything from consumer concept vehicles to toilet cleaners, but if I didn’t also observe what is happening around me, I would only be getting part of the conversation.

4: Report writing is a breeze

I once had a colleague tell me that every time he tries to write a qualitative report, it goes something like this, “I write some people said this, some people said that…and then I die a little inside.”  I don’t know if I would equate qualitative report writing to the withering of your entire existence, but for those accustomed to reading tabs and writing reports from the data, qualitative reports can be daunting.

The hardest part about writing a qualitative report as a moderator is trying to make sense of a ton of unstructured data. Not only are you looking for the answers to your questions and behavioral themes, but you are also searching for any context that may be important for a client to understand.

And while a quantitative report is sometimes rated on how many charts and different data cuts can be obtained, a qualitative report is judged by its ability to tell a story in the briefest possible manner.  Think more twitter post, than blog. And while not as soul crushing as my colleague indicates, you may just be a little more bruised after your report is finished.

5: We don’t like numbers

I call foul on this. I like numbers.  Numbers are necessary as they help to get a story across to a large number of people.  This will never change. But what I will say is that in today’s world, you need both numbers and the human context behind the numbers to truly make a difference. Think about all the times you hear people say “I don’t want to be just another number.” It’s not that they don’t want to be counted. What they don’t want is for companies to treat them as only a widget to be tallied and tossed into a heap of others to be tabulated and charted. They want to be regarded as a person.

Qualitative helps to define the humanity behind the numbers. And once you can define the humanity, that’s where change can truly occur in how a company produces and markets their products and services. Once this change occurs, consumers flock to these companies as one that “gets” them.  And that will add numbers to a company’s consumer base, its likes, its shares, and its sales – all numbers. Who doesn’t like that?

While there are certain myths about my job as a moderator that I have to contend with, I still love what I do. And I’ll admit sometimes the stars do align and I can tack on a few extra days to schedule a vacation after a project is complete. Not as glamorous as all the myths, but the truth never is.

More
26
Jul

Pokémon Go Consumers, You Gotta Catch ‘Em All

Pokemon Go Consumers, You Gotta Catch 'Em All

By: Cory Kinne, Project Director

It’s 2016 and the Pokémon craze has struck again, this time in the form of a mobile app called “Pokémon Go”. As of July 21, Over 30 million downloads have occurred since the app’s release earlier in the month, and the hype doesn’t seem to be slowing down any time soon.

Not surprisingly, many Pokémon Go players are adults, since Pokémon first came out more than two decades ago. It’s nostalgia for many in their 30s and 40s and the game’s social features appeal to most millennials as well, not to mention teens.

Because of this broad appeal, Pokémon Go presents retailers with an opportunity for free promotion. No matter how big or small a business may be, welcoming Pokémon Go players to their shops and restaurants, or malls and boutiques has little downside.

Simple in-game purchases can be made by businesses in order to draw more customers through the doors. Items like “Lures”, which draw Pokémon to a certain location, can be purchased for as little as $1. New customer bases can be reached and the return on investment is promising; one New York pizzeria is boasting huge returns by investing only $10 in the Pokémon “Lures”, causing a 75% increase in business over the course of a single weekend.

Businesses can also be a “Pokéstop”, a place where players (or “trainers” as they are referred to in the game) go to receive items like “Poké Balls” and “revives”, or a “gym”, a place where players battle their monsters to become leaders. You literally have to be within a few feet of a Pokéstop to take advantage of the bounty of items within.

Such features of Pokémon Go draw players to the area, and businesses can up their marketing prowess by offering incentives such as discounts, prizes, or a free gift for players stopping by to increase interest in their products or services.

Our research and technology partner Qualtrics had some interesting statistics from Pokémon Go trainers they surveyed. See some fun and interesting infographics here.

For any retailer, it’s an opportunity they can’t afford to pass up. Engage customers in simple e-marketing campaigns, inviting Pokémon players, and informing them of nearby gyms or announcing your status as a “Pokéstop” is easy to do and costs little more than time. You literally have to be within a few feet of a Pokéstop to take advantage of the bounty. Better yet, business owners, managers and even employees should download the app and play the game to become familiar enough to converse with customers about it.

You may not get to level 30 in Pokémon Go, but chances are many of your customers have that as a potential goal. If your retail location hasn’t started using Pokémon Go, you don’t want to miss out.

For further insights contact the Morpace Retail team at ckinne@morpace.com. When we’re not catching the Wild Rattata lurking in our hallways or checking out the three nearby gyms adjacent to our Detroit headquarters, we’ll be there to answer your questions on how to take advantage of this craze. After all, you gotta catch ‘em all (customers that is)!

More
14
Jul

X, Y, Z … Boom! How will Changing Demographics Impact Corporate Culture?

Are you ready?

By: Donna Taglione, Vice President

Full transparency: I am a baby boomer. Born right in the middle of the largest generation–until Millennials. For many of my generation, retirement is a dirty word; it’s an inevitability to be delayed as long as possible. As a group, Baby Boomers have been fighting aging since we turned 30! After all we weren’t supposed to trust anyone over 30 until, of course, we became 30 ourselves and realized we were just getting started.

All kidding and old jokes aside, the reality is that 10,000 Boomers will turn 65 every day between now and 2029. Retirement has already started for many and isn’t that far off for more than half of the Baby Boom generation. My children, Millennials that they are, are probably saying “Finally! What’s taking you so long?” But the sheer volume of pending retirements is staggering and prompts the question how will the obvious “changing of the guard” affect corporate life?

Demographers and business historians estimate that Baby Boomers currently hold 56% of corporate leadership positions. Additionally, two-thirds of all businesses (about 4 million companies) are owned by Baby Boomers. Yet, according to a survey of Fortune 1000 employers, and of critical importance to business in general, 62% of Fortune 1000 employers believe that Baby Boomer retirements will result in a skilled labor shortage sometime in the next five years. In the next 5 years! How is this possible? What should people and companies be doing to prepare for a potential gap in skills? Are companies and their mid-career managers (Gen X and Gen Y) prepared for corporate memory to walk out the door?

Truth be told, with each generation there is always a need for new and fresh perspectives. Somehow it is a lot easier to swallow that new idea when you are on the younger end of the continuum espousing it rather than on the side that finds itself thinking “been there done that”!  Yet companies and managers are going to have to creatively manage the knowledge transfer required as the current generation of executives makes room for the next generation.

Partial retirement or flexible working arrangements–typically a two-year offer with reduced hours and benefits–is one way companies are exploring the retention of certain levels of management so their knowledge can be shared with those next in line for their pay grade. Reverse mentoring, popularized by former GE Chairman Jack Welsh, matches senior executives with 20 and 30-somethings to share experiences. Reverse mentoring closes the knowledge gap for both older and younger age groups and can identity future leaders. Succession planning prepares others internally to assume key business positions. Encore consultancy – when a person “retires” on Friday yet returns on Monday as a part-time consultant for the job they just left – has caught on in some organizations. Are these enough? Are companies paying attention to what corporate life will be like after a generation of workers retire?

I distinctly remember going to my father’s retirement party. Lots of people I’d never met before talking about a side of my dad that I never really knew at home. It was quite enlightening to hear that your dad–the guy who fell asleep on the couch waiting up for you–was a person others looked up to and respected. I don’t think a lot of companies “do” retirement parties anymore. My dad worked for the same company for 37 years. That kind of tenure is almost unheard of now. When I retire, even though I’ve been in the same industry for over 30 years, I’ll have worked at the same company for about 12 years. Certainly not worthy of a full blown celebration. But party or no party, over the course of the next fifteen years, one very large generation, used to setting standards for how things get done (Baby Boomers), is about to retire and be replaced by an even larger generation (Gen Y/Millennials) in the early to middle stage of their careers. Are we ready?

More
1
Jul

Change, Courage, and Possibilities

OpportunityBy: Dania Rich-Spencer, Vice President

As you may know, the Q1-Q2 2016 GRIT report was recently released. I always look forward to learning what’s new and exciting in the market research world, and to gaining a deeper appreciation for our client’s perspective. With the most comprehensive sample to date–2,144 completed interviews and participants from 70 countries–this wave delivers an impressive examination of an industry in the process of reinventing itself.

As I was processing the breadth of information in the report, I glanced at a picture on my office wall. A colleague gave me a beautiful picture with the saying “Change of any sort, requires courage.” I frequently look at this picture for inspiration when dealing with personal and professional challenges, and honestly, some days it’s hard to look away!

There is no doubt the disruptive change the market research industry is experiencing requires courageous adjustments from both Research Buyers and Suppliers. ESOMAR recently presented the “Future of Market Research” webinar where they highlighted the necessity for a team-based approach. The case was made that in order to effectively communicate research findings and influence C-Suite decision makers, a multi-disciplinary approach is required. Weaving together a cohesive story and presenting it in a consultative fashion requires contribution not only from a researcher, but also from a data scientist, a synthesizer, a journalist, and an influential storyteller. This insights team needs to be comprised of creative individuals who are motivated by intellectual curiosity, have a desire to influence, and are comfortable working in a fast-paced, unstructured environment.

I’m confident the industry will successfully manage the human capital transition and adopt a more consultative role to drive positive, sustainable change. However, unless we have a comprehensive understanding of what influences consumers’ decisions and precisely why they choose one product or service over another, the impact of the Voice of Customer will be under-stated.

Online research communities deliver vibrant customer stories riddled with illuminating detail that provide contextual understanding. Unlike brand communities or social media, research communities offer an agile solution for developing a synergistic and mutually respectful relationship between customer and company.

As an example, when defectors in an ad hoc Exit Survey were asked the reason for leaving a health plan, cost was the primary reason year after year. However, when exploring potential defection with members of the client’s research community, when cost was comparable, members’ experience with customer support and their emotional attachment to the company played a much larger role in their decision to change carriers. The ongoing, two-way dialogue inherent in a research community enables the customer relationship to be transformed from survey taker to trusted advisor.

It takes courage to build this type of relationship with customers and it takes courage to put legacy systems behind us. The market research industry has a history of making courageous adjustments to consumers’ changing habits and demands of the marketplace. I have another picture on my wall–“When nothing is certain, everything is possible.”

More
16
Jun

Top 3 Reasons Why Consumers are Rejecting Autonomy

Top 3 reasons why consumers are rejecting autonomy

By: Greg Swando, Senior Research Director

Autonomy.

This one word is the beginning of the current automobile industry’s disruption, as OEMs across the world race to incorporate various levels of autonomy and services into their vehicles.  New features such as Forward Collision Warning, Lane Keeping Assistance, and Emergency Braking, among others, have been emerging on the market and becoming more commonplace across vehicle portfolios and advertising campaigns.

But what exactly do consumers think about these new Automated Driver Assistance Systems (ADAS)?

While today’s consumers will see more advances in vehicle technology over the next five years than in the past 50, their rate of technology adoption may be slower to respond, as found by the report “A Consumer-Centric Journey Towards Autonomy”. This report was developed by our automotive team in partnership with SBD and Gamivation, in order to understand the opportunities and challenges that lie ahead in the journey toward next generation autonomous vehicles.

Our report revealed that there are 3 main reasons consumers are not only nervous about the new ADAS features, but may also be rejecting them entirely:

  1. Today’s driver assistance systems are being underutilized and/or misunderstood
  2. A significant number of current ADAS owners find the technology distracting and even irritating
  3. Many consumers reject needing any assistance–and are against giving up control of their vehicle

These and other surprising insights were revealed through the study, including how consumers are viewing the implementation and use of current ADAS features in vehicles. The types of consumers most open and receptive to these features, and those who are more likely to be suspicious or frightened by the new technology, are also revealed in the report, along with why consumers are reacting in these ways.

Our Automotive team and partners will help you learn how your competitors are implementing autonomous features and compare and contrast consumer viewpoints among each of these systems. After determining these points, our team can map out best-practice guidelines to differentiate your features as part of your overall brand, and help to make the consumers’ transition to autonomous features a smoother ride.

To find out more about “A Consumer Centric Journey Towards Autonomy” click here.

More
8
Jun

How Long Are People Willing to Wait for the Tesla Model 3?

How Long are Consumers Willing to Wait for the Tesla Model 3?By: Kimberly Doherty, Senior Project Manager; Pam Cunningham, Research Manager

With 373,000 deposits in for the Tesla Model 3, questions are circulating around consumers’ expectations: How long do they plan to wait for delivery? What features do they expect the vehicle to come equipped with, and what do they want to add on? In search of answers, we reached out to our MyDrivingPower (MDP) community members who put down a deposit to uncover their insight and opinions.

The Model 3’s competitive price has captured the attention of EV and gas-powered vehicle owners alike, not to mention current Tesla owners. How much it will cost to equip the vehicle with additional features though is still unknown. Curious about consumers’ willingness to pay for add-ons, we asked MDP members that placed deposits on the Model 3 how they plan to configure their new vehicle. In true vehicle enthusiast fashion, none plan to drive off with a base model.

Most members we reached out to are realistic about the upgrades they want. They do not plan to buy a ‘fully loaded’ vehicle, but will weigh the cost against benefits of each individual feature. Typically, these consumers estimate they will spend $45,000 – $50,000 for the final product. Some of the ‘must have’ features are functional, including extended battery range, all-wheel drive (dual motor), and supercharging.  A few expressed an interest in autopilot, but it generally is not a ‘must have’. The possibility of a tax credit will also factor in how much extra they are willing to spend on their vehicle.

For example, here were two direct member quotes:

“I assumed I would spend ~$50k to get what I want. All-wheel drive is mandatory. Longer range is mandatory. All other options will be decided on costs/benefits.”

“I plan to get all-wheel drive, a battery that is close to 85kwHr as they have a supercharger (if there is a fee), and autopilot. Once the prices are known, I’m hopeful that will price the car near $45,000.”

There is a significant gap between when deposits were made for the vehicle and when the Model 3 will be released (many industry experts estimate mid 2018 at the earliest). But how long are people actually willing to wait to buy? Many MDP members claim they are committed to their planned purchase and don’t mind the long wait. Some are trying to manipulate their current lease-end date to coincide with the release of the Model 3. Still others say they will try to extend their current lease or see if the dealership will allow them to continue to lease on a month-to-month basis, or will make due with another vehicle in their household. Additional member quotes highlight this:

“I’m considering this an EV pioneer experience so…as long as it takes.”

“I’ll wait until the end of February 2018 when my Model S lease is up. That seems pretty consistent with the time they are saying deliveries will begin. If   there is a delay beyond that date, I guess I’ll be stuck driving my Spark EV for a while.”

Placing a $1,000 down payment indicates a level of consumer interest and commitment, and our community members are a historically dedicated group, but do they have faith in their fellow enthusiasts? Many believe at least 50% of those who placed a deposit will follow through with an actual purchase. Timing may play a role, they say, as not everyone has control over when they need a new vehicle. Moreover, a person’s ability to purchase may be affected should their financial situation change between deposit date and vehicle availability.

Other MDP members speculate the potential for competitors to release new EV products before the Model 3 is ready, which may sway shoppers hoping to get their hands on a vehicle sooner. As seen from the member comments below, there is doubt as to whether another automaker could introduce a true competitor before the Model 3 is ready, but some admit they would consider other options they see as tempting.

“Perhaps[people will be swayed] if the enhanced CCS [Combined Charging System] network I read about last week actually takes off and becomes competitive with supercharging, and Nissan or GM bring out cars able to take advantage of it, but there’s no sign of that happening.”

“I feel approximately 50% will follow through. Why not a higher percentage? The very long period of time between deposit and delivery. This results in two issues, first, changes in buyers’ personal/financial situation and second, time for competition to take business.”

As seen in two quotes below, MDP members anticipate Model 3 production to begin in December 2017, with a 6-month grace period. Although these consumers have no idea where they are ‘in line’, they suspect their vehicle will be ready sometime between mid and late 2018. While their rank in the waitlist is unclear, Tesla did announce that current Tesla owners will be given priority, and those who reside in California–home of Tesla headquarters –will be among the first to obtain their vehicles.

“I will be pleasantly surprised if I see my car in 2018. 2019 is a safer bet. And for the record, I’d far rather wait for a car that’s done right, than get one soon that needs to be fixed in short order…costing me time and Tesla more money.”

“I am hopeful that deliveries will start in Dec. 2017, but I have allowed for up to 6 months to take delivery of mine specifically. I really have no idea my place in line.”

Many MDP members indicated that they are not familiar with the Tesla delivery process, but do expect to be able to pick up their Model 3 at a local dealer. Some would not mind driving a considerable distance to pick up their EV (up to 90 miles one-way), while others consumers expect it to be delivered directly to their home.

“I am not familiar with the delivery process on a Tesla, but I plan to take delivery in my home state of CA.”

“I hope to go to the factory to pick it up–it is only 90 minutes away. Or get home delivery–like my Model S.”

“I’ll pick it up from the Tesla store in Portland, OR, which is about 80 miles north of me.”

Plans are already in place for their next electric vehicle and based on feedback, most community members plan to do whatever it takes to get their own Model 3. How things evolve as more vehicle details are released and the release gets closer remains to be seen. We’ll be following up to see what MyDrivingPower members think as time goes on.

More