7
Nov

An Autonomous Future – Electric Vehicle Driver Opinion on Autonomous Vehicles

Autonomous connected electric vehicles


For automobile manufacturers, a bold new future has arrived. Technology that adds autonomous features to the driving experience are now available on vehicles by all major manufacturers – inching us ever closer to the day where the driver is a passive, rather than active, participant in the driving experience. To take a closer look at what’s to come, automotive research experts from Market Strategies-Morpace will share their insights in an occasional blog series titled “An Autonomous Future.” In this blog, Stephan Schroeder, Vice President of Automotive Business Development at Market Strategies-Morpace, shares insights about how electric and hybrid vehicle drivers view the advantages and disadvantages of autonomous vehicles.

By: Stephan Schroeder, Vice President of Business Development, Automotive

The prospect of autonomous driving and connected mobility has energized the automotive industry and spurred billions of dollars of investments in autonomy, connectivity, and electrification. While startups and blue-chip corporations alike are convinced about the potential of autonomous vehicles (AV), consumers are more incredulous.

As previously reported in our An Autonomous Future series (Consumer Awareness & Opinion and The Role of the Consumer), media coverage has and will play a critical role in creating driver and rider awareness for AVs, but it is also becoming clear that the transition to this new form of mobility will require a multifaceted approach and unprecedented levels of investment in order to earn their trust.

One group that appears to be further along in their favorable opinion towards autonomous driving are drivers of electric vehicles. In a recent Morpace MyDrivingPower* online survey conducted among over 100 electric vehicle drivers, 3 out of 4 respondents expressed a “very positive” or “somewhat positive” opinion about AVs, more than twice the rate reported by drivers of vehicles with traditional powertrains. Given that difference in favorable opinions and their unique vantage point as early adopters, we took a closer look at the pros and cons of autonomous driving from their perspective.

 

Electric Vehicle Drivers’ Worry Revolves Around AV Tech-Related Challenges

Maybe not surprisingly, the biggest concern has to do with the technology itself. Concerns range from the quality of programming and the risk of being hacked to the inability of drivers to “program” the cars correctly.

And herein lies maybe the biggest challenge for AVs. We all have, over decades, become used to the limits of technology and the fact that it is not fail safe. However, we have accepted this risk because either our lives don’t depend on it (i.e. cell phones, computers, etc.) or because we have experts standing by to jump in if necessary (i.e. pilots, doctors, etc.). When a simple system reboot does not suffice or experts are not physically available, we dial help lines and call upon customer support to aid in our problems.

However, when it comes to AVs: what would happen in the event of an emergency or failure? The thought of being stranded with your family by the roadside and having to navigate through a helpdesk menu or wait hours for a call back is not something that would be acceptable in an autonomous world. Overcoming the doubts about the reliability of the technology and providing a highly responsive, end-user support system will be the two biggest hurdles that mobility providers will have to overcome to gain broad acceptance among consumers.

The next largest challenge has to do with concerns regarding vehicle performance due to bad weather conditions. Additional performance-related comments had to do with poor road conditions or construction. Of course, there is also the question of performance in more demanding environments, such as off-roading, which interestingly enough leads to a related disadvantage mentioned in another category: the thought of having to give up driving and losing the joy of driving a car. Many drivers are not happy about the thought of losing their freedom to drive or the ability to drive themselves.

While less frequent, concerns about liability and data privacy are also weighing heavy on the minds of consumers. Both of these issues tie back to our experience with technology. Who will be responsible in the event of an accident? What damages will be covered and not covered? Who will be responsible for the condition of the vehicle, especially if it is being shared amongst multiple parties? Ironically, some respondents felt that there would actually be more accidents because they did not trust their fellow drivers to behave responsibly or manage the technology properly.

The fear of lack of data privacy points to another significant concern with AVs. Considering the amount of time we spend in our cars and the amount of interaction that will take place through text, voice, video, sensing, etc., AVs will take the question of data privacy to a whole new level. Morpace is planning to explore this and other issues related to the question of trust and autonomous mobility further in one of its upcoming studies.

 

Electric Vehicle Drivers’ Opinion of AV Advantages

When asked about the expected advantages of AVs, electric vehicle drivers have a wide range of expectations, from safety to cost and environmental issues.

Most notably, electric vehicle drivers expect fewer accidents due to a reduction in distractions or unsafe driving. Furthermore, they expect lower cost of insurance, which could be a function of less accidents but also a lower rate of car ownership.

While many also expect less traffic and lower emissions, the verdict for a majority of people is still out, which shows the uncertainty around certain benefits:

  • Will AV lead to less or more cars on the road?
  • Which powertrain technology will prevail?
  • What will be the mix of autonomous and non-autonomous vehicles?

While many people believe that there will be efficiencies due to the use of autonomous vehicles (i.e. faster commutes), it could be offset by higher traffic volumes or the expectation that “the slowest car will dictate speed on the road.”

Finally, electric vehicle drivers pointed out two more major advantages. First, they noted that AVs will provide options for people who either can’t drive due to age, health, income or legal reasons – or who simply don’t want to drive. Secondly, many consumers mentioned that they expect a reduction in stress and greater happiness, which will contribute to a better quality of life and increased productiveness. The luxury of permanently “being taxied by your own car,” as one responded put it, seems to be a very appealing benefit for many drivers.

As a result, when asked how likely they would consider riding in an AV, 72% of electric vehicle drivers said that they would be “very likely “or “somewhat likely” to do so.

 

Time Spent While Driving in AV

For those with the most positive opinion of AVs, what else do they think and feel? When asked what they would do during the drive, the majority of drivers said they would use it to socialize with others, inside or outside of the vehicle, or simply make good use of the time otherwise. That said, many of the comments also revealed the anxiety that electric vehicle drivers feel when it comes to technology. Their comments ranged from “nervously watch the traffic/road,” to “carefully monitor the technology” and “pay full attention to driving and be completely ready to take over controls.”  In other words, while many drivers dream of a more enjoyable and fun ride, they simply can’t imagine a vehicle performing 100% of their activities 100% of the time with 0% failure yet.

 

AV Price Points for Electric Vehicle Driver

So, given all of the pros and cons, how much more would electric vehicle drivers be willing to spend for a vehicle that has autonomous technology?

On average, electric vehicle drivers indicated that they would be willing to pay an additional $6,000, with answers ranging from $1000 at the low end to $10,000 at the upper end.

The bottom-line is that the automotive industry has the attention of electric vehicle drivers and they are willing to pay for the added value. That said, the expectations are high and there is a healthy level of skepticism about the ability of making the technology work. The promise of a better quality of life is a huge opportunity for everyone involved but it will most likely come in baby steps as we learn to feel our way around the new world of unlimited mobility for everyone.

For more information about our AV research or if you have questions, please contact me and visit morpace.com.

 

*MyDrivingPower is an Insight Community comprised of over 500 electric and hybrid vehicle owners across the U.S., which is managed by the automotive market research professionals at Morpace. Results are based on responses from BEV and PHEV vehicles owners only.

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16
Aug

An Autonomous Future: Consumer Awareness & Opinion about the Emergence of AV

An Autonomous Future: Consumer Awareness & Opinion about the Emergence of AV

For automobile manufacturers, a bold new future has arrived. Technology that adds autonomous features to the driving experience are now available on vehicles by all major manufacturers – inching us ever closer to the day where the driver is a passive, rather than active, participant in the driving experience. To take a closer look at what’s to come, automotive research experts at Market Strategies-Morpace will share their insights in an occasional blog series titled “An Autonomous Future.” In this first blog, we hear from Dania Rich-Spencer, Vice President of Automotive at Market Strategies-Morpace, about how consumers are responding to these new autonomous enhancements.

By: Dania Rich-Spencer, Vice President, Automotive

 

When Chairman and CEO of General Motors Mary Barra wrote an article for the World Economic Forum in 2016, she stated “I believe the auto industry will change more in the next five to 10 years than it has in the last 50.” Given vehicle companies’ quest to transition from a car maker to a valued mobility company offering services that many of us couldn’t even imagine a few years ago, Barra is spot on about the swift transformation of the auto industry.

While automotive manufacturers have historically described themselves as makers of vehicles for personal and commercial use, today’s OEMs refer to their brands as mobility companies. Yes, they still make cars, trucks, and SUVs – but a combination of new connectivity technology and consumers’ willingness to share products and services now enable auto manufacturers to redefine their relationship with customers – and to enhance the vehicle ownership experience.


A Glimpse into Industry Innovation by Today’s Leading OEMs

A Glimpse into Industry Innovation & AV by Today’s Leading OEMs A variety of popular car makers are investing considerable time, money, technology, and talent to make vast transitions within the marketplace. For instance, the General Motors Marketplace app is considered the “automotive industry’s first commerce platform for on-demand reservations and purchases of goods and services.”

Ford positions FordPass as “the app that amplifies your ownership experience…all to help you get from A to B better.”  Lincoln is redefining the traditional lease with a month-to-month subscription service to better meet customers’ needs and attract younger buyers. Cadillac, Volvo, and Porsche are also offering services to complement the traditional car buying/servicing transactional model.

One may argue that the greatest contribution to this transformation is the development of autonomous vehicles (AVs).  While timelines for fully-developed AVs vary by OEM, there is no doubt they are coming.  It reminds me of the quote attributed to Benjamin Franklin: “…but in this world, nothing can be said to be certain except death and taxes.” Today, self-driving vehicles are also part of the inevitable! In fact, Mcity Driverless Shuttle, “the first driverless shuttle project in the U.S. focusing on user behavior research” was launched beginning June 2018, on the University of Michigan’s North Campus.

I consider myself extremely fortunate to be a part of this automotive industry transformation and look forward to reminiscing with the grandkids about a world before the car was a powerful computing platform that drove itself. However, I often wonder: do other people see this industry transformation in the same light as I do? How does the “regular Joe” feel about the emergence of self-driving vehicles?

Based on my experience as both a vehicle consumer and professional at Market StrategiesMorpace, I know that familiarity drives acceptance of new technology. With that said, how familiar is the general population with AV technology – and how might they see themselves benefiting from these cars?


Insights into Consumer Awareness & Opinion of Autonomous Vehicles Today

Insights into Consumer Awareness & Opinion of Autonomous Vehicles Today To find out, these are some of the questions we explored in the Morpace Automotive Consumer Pulse Study, an online survey* conducted monthly among approximately 1,000 U.S. adults 18 years of age and older.  We noted several surprising findings, including feedback about the level of awareness for self-driving vehicles:

  • Over eight in ten consumers have heard at least some information about companies working on developing self-driving vehicles. This statistic has remained fairly consistent since October 2017, when the study was initially conducted. It is also consistent with other research.
  • While the general public is aware of autonomous vehicles, there is a lot of uncertainty about the implications of self-driving vehicles. People are not sure if there will be more or fewer accidents and fatalities, whether there will be more or fewer vehicles on the road, or if personal ownership will increase or decline.
  • When asked how the development of self-driving vehicles will benefit them personally, responses are almost equally distributed in thirds across “Positive/Negative/Not Sure.”

Since factors like media coverage and clear, enthusiastic, consumer-based marketing affect the current and future awareness of self-driving automobiles, the interplay between these two factors will shape the short-term pace and long-term outcome of the industry.


Demographic Differences in Consumer Awareness

Demographic Differences in Consumer Awareness of Autonomous VehiclesOne aspect is for sure, however – young adults, followed by those with disabilities and those who have lost their license, will be the first to use a self-driving vehicle. In addition, more males than females are engaged with this topic and are more likely to embrace using a self-driving vehicle. Other data shows:

  • Twice as many males compared to females say that they have seen or heard “a lot” about cars and trucks that can operate on their own without a human driver.
  • Almost half of males think self-driving vehicles are positive for them, compared to just under a third of females.
  • Compared to females, almost twice as many males provide a Top2Box rating (9/10) to being open to using a self-driving vehicle.

This gender difference is not surprising to me, but I’m wondering if auto manufacturers are paying attention to the information. Is it too early to charm females to autonomous vehicles?  Given that women influence a significant portion of the vehicle purchase decision, it may be prudent for OEMs to start the marketing process now by crafting a message targeted to women around the positive implications and personal benefits of using and owning an AV.


A Future with Self-Driving Cars

The industry and its consumers are also interested to know which auto maker may be the first to offer a fully autonomous vehicle for personal use. Toyota takes top spot, followed closely by Ford. Similar to their marketing of apps and subscription services, trusted vehicle makers like these must make the benefits of AVs clear to both male and female consumers, as well as those young and old. These include the benefits of Advanced Drive Assistance Systems (ADAS) features, as well as how their self-driving business models will make operating these vehicles both safe and beneficial to daily life.

While OEMs and their partners evolve their marketing strategies, I am optimistic about the future of transportation and the role the autonomous vehicle plays. Here’s to the next few years of unprecedented change – and the wonder it will bring!

 

*The data collected by the Morpace Automotive Consumer Pulse Study are weighted to ensure relevant demographic characteristics of the sample matched those of the U.S. general population.  All respondents are weighted to U.S. Census Bureau demographic profiles for the U.S. population 18+ on gender, age, income and ethnicity.

 

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14
Nov

How to Market Products Using China’s City Tiers

By Jenny Zhang, Research Analyst

Companies looking to market in China will hear about the country’s city tiers and wonder what it’s all about. It’s no question that the world’s most populated country would have the highest consumer demand. Their consumer expendable income is also on the rise, and with a flashy, name-brand-recognizing culture, marketing is more important than ever. The question is, can we market products to these so-called “tier cities” and how can we do so? I’ll start with a little explanation and let’s work on answering that question.

I’d like to reference South China Morning Post’s (SCMP) interactive definition of tiers. Here, they divide 613 cities into 4 tiers, but another popular approach is 6 tiers. As you can see, there is no standard way of defining tiers from the government, but the highest tiers, 1 and 2, are generally agreed upon by economists, politicians and the public.

Name a city in China: Beijing? Shanghai? These are Tier 1. The combination of GDP, Politics and Population classifies cities into the four tiers, however, some cities rank differently in the three areas so the average is taken to identify the tier, says SCMP. You can start to see how companies would want to understand tiers so they can target certain people. Consumers in Tier 1 cities tend to be more affluent and highly educated. Tier 4 cities are in the rural parts of Western China. Population is scarce and so are resources. They include provinces such as Tibet and Inner Mongolia. Are you starting to get ideas?

Advertising needs to appeal to the demographics. Same with promotions or deals. We will start asking what kind of media to advertise on based on what the consumers have access to. So the answer to the question we had in the beginning is “yes”, we can market products to different tiers and the way to do so depends on your product. The next time a client asks you about marketing in China, suggest looking at tiers and see where your research takes you.

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22
Nov

Neuromarketing: Market Research’s Magic Bullet?

neuromarketing: market research's magic bullet?

By Artem Violety, Vice President

Exciting new techniques are emerging within the advertising and technology industries, creating fresh disrupters in market research and opening new doors to more opportunities and insights than ever imagined before. However, as with most new findings, additional research and confirmation is needed before these techniques become relevant and widely accepted.

One new field of study that has emerged is “neuromarketing research”- an attempt to leverage learnings from neuroscience to better understand the brain’s responses to marketing stimuli, and thereby better understand consumer behavior. I had the pleasure of appearing on a panel discussing the topic at the ad:tech conference in New York, held November 2-3, 2016.

The panel discussed how face recognition software could uncover consumers’ emotional states; how biometric markers, such as skin conductance, heartrate, and respiration could be used to detect non-conscious response to stimuli; and how brain imaging techniques, including functional Magnetic Resonance Imaging (fMRI) and Electroencephalography (EEG) could potentially uncover consumers “true” reactions to marketing stimuli by measuring actual brain activity.

These techniques are obviously very attractive to marketers. Imagine being able to peer into a consumer’s mind and see how interested they are really in a product, or which of two marketing messages better resonates with them, all without having to rely on what they tell us.

Neuromarketing’s focus is on consumers’ “unsaid” thoughts, so in essence, their inner, unedited, potentially unconscious thoughts and feelings. This is generally called “System 1” or “Fast” thinking, and it refers to a consumer’s automatic response to a given stimulus; it’s a potentially vital aspect in decision-making but by no means the only one.

In contrast, more traditional market research focuses on what is explicitly reported by a consumer. This is called “System 2” or “Slow” thinking, and refers to the more deliberate, logical or conscious aspects of decision making.

As one can imagine, both types of responses are worth considering when trying to understand how the consumer feels about a product or service. Unfortunately, the excitement that usually accompanies a discovery of a new set of tools or techniques often overrides not only previously accepted learning but even basic logic.

For example, the notion that there is a metaphorical “buy button” in the brain that can be accessed via neuromarketing is promise boldly made by some practitioners. However, this claim is akin to those made by proponents of using hypnosis or subliminal messages in commercials – highly attractive but without much merit. Since the brain is an organ that evolved over a much longer period of time than humans have engaged in commerce, there wouldn’t have been an opportunity for a “buy button” to be part of the biology of the brain. There are surely “approach or avoid”, “fight or flight” functions built in, but those reflect a need for basic survival, not the desire to buy a shiny new phone or another pair of shoes.

In order to be useful, neuromarketing research must be placed in the proper context – it’s a tool that can be used in conjunction with other traditional techniques, but it’s not a panacea for all marketing questions. As neuroscience evolves and is able to better explain human cognitive abilities, it will surely play a larger role in how we all conduct marketing research. However, it is unlikely it will ever completely replace  the need to actually talk to people in order to understand them, something we humans have a good deal of practice doing.

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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)!

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2
Dec

Online Communities: A Powerful Media Relations Tool

By Jason Mantel, Vice President

A strong selling point for Market Research Online Communities is the ability to collect information quickly, sometimes instantaneously, from community members.  The theory goes that having members is exponentially more powerful than having respondents – members are engaged in your brand, eager to share, will be brutally honest in sharing the feedback your brand needs to hear. They are also available to you when you need them. Paper

As a primary market research firm, this is the line we use to promote MROCs.  Too often, though, these amazing tools are not leveraged for an amazing benefit: speed.

Morpace was contacted by Automotive News for thoughts on the electric vehicle market.  We host a MROC in this space, called My Driving Power.  The request came to our team at 4 p.m. on a Monday afternoon, and some of the questions were on topics where we had limited feedback.  Our first inclination was, “we’re missing that data!” And then suddenly, we remembered what we tell our clients – that MROCs generate fast results. (Really, it took time for this to sink in!) One of our analysts posted a few key questions immediately to our members.  And they didn’t let us down.

By 7 a.m. the next morning, we experienced a nearly 30% response rate, and robust results we could share with the publication.  We were able to answer specific questions, with statistically relevant figures, and pages of valuable comments, literally overnight.  I can’t recall another instance in my research career where that was possible, let alone with such a targeted audience.  (And many of our clients who host communities are yet to leverage their members for this type of benefit.)

I can imagine the value of this result in just about any corporate suite.  Even though I knew how it was supposed to work, I was simply amazed when it did.

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27
Oct

Give Consumers The Right Instruments So They Will Become Your Ideal Co-pilot

CopilotBy Julie Vogel, Vice President

Okay, so here’s a true confession for you:  There were times during my years managing brands for The Quaker Oats Company when I felt uncomfortably in the dark about the sales impact our multi-million dollar marketing programs would have once we launched them into the consumer-o-sphere. And there were times we flat out made mistakes and missed opportunities because of an understanding gap between us and our consumers that seemed impossible to bridge.

For example, I’m thinking of the time I and my brand team launched a wrongly-named Hispanic tortilla mix in Southern U.S. markets.  The name meant ‘dirty wet dough’ in Spanish.  (And wrapped in a paper bag, too!)   But no one on the team spoke Spanish, and we couldn’t afford research, so the packaging department did some fancy guesswork.  But they guessed wrong, and that product was on the shelf for years – with our target likely chuckling away – until a Spanish speaker fortuitously joined the team and alerted us of the mistake.  The product was renamed, package redesigned, and sales jumped.

With the clarity of 20-20 hindsight, our blind-spots stemmed largely from a lack of immediate, back-and-forth communication avenues available at the time that would enable us to sustain the consumer understanding we needed to feel confident in our actions.  Sure, we surveyed, ad-tested, conducted groups, and at times fooled ourselves into believing we could actually think like the target.   In truth, we were just getting isolated ‘dipstick’ reads on certain topics, among certain consumers, at certain intervals, under certain conditions.  There was no way to truly hear the right group of consumers share their motivations, experiences and actions as they went through life and interacted with our brands over time.  Or to let them give us a heads-up if we were considering a silly name for a product.

Roll the tape forward, introduce social technologies that empower us – and our consumers—to exchange information almost any time, anywhere — and brands can now virtually make consumers their trusted co-pilots  at the go-to-market controls.   In particular, I have been astounded by the level of sustained, authentic insight and spot-on direction brands can obtain on a host of decisions large and small by setting up their own private online market research communities.

In my work building online market research communities for global brands, I have seen the peace-of-mind marketers can get from having a small (100s) or large (1000s) pool of ‘consumer-advisors’ virtually camped-out, at-the-ready to work together to resolve critical, time-sensitive decisions.  These are often decisions that need to be nailed-down and gotten right, fast, to ensure successful in-market programs

Okay, so I admit:  I am downright jealous of brand marketers today who have access to social technologies that empower them to take much of the guesswork out of who their consumers really are, and what they want from the companies they buy from.

After all, it’s downright embarrassing to be on shelf, or on-screen, with a proposition your audience finds ridiculous.  But without the right tools in place, it can happen to the best of us.  Better to do a reality-check with your audience before you hit the stage.  And today, this is eminently doable for forward looking brands serious about getting it right.

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