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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29
Feb

What Would it Take to Use Mobile Banking?

mobile banking image

By: Steven Welling, Project Director

With mobile banking continuing to rise in popularity, the financial services team here at Morpace wanted to look a bit further into mobile banking usage and understand what features consumers would most like to see added.

In our monthly Omnibus, we found that increased mobile banking usage among consumers is associated with higher satisfaction with their primary bank, suggesting that introducing customers to mobile banking and/or providing additional tools within mobile banking may have a positive effect on overall satisfaction.

The Federal Reserve Board’s Division of Consumer and Community Affairs (DCCA) conducts a yearly study about consumer and mobile financial services. (You can find the most current study—released in March 2015— on the Federal Reserve Board’s website here.)

Many of the findings from this survey confirm the understanding we have about mobile phones and banking, including the top reasons why some consumers do not use mobile banking. These include:

  1. Their needs are already met
  2. They don’t see a reason to use it
  3. They are concerned about security

We investigated this further and looked at not only consumer interest in mobile banking, but also their concerns. We considered if all consumer concerns were alleviated, what exactly would create the most interest in using mobile banking? We created an exercise to rank the importance of various enhancements to determine the relative magnitude of the impact when it comes to encouraging mobile banking usage.

We asked consumers: For those who currently use mobile banking, what would increase their usage? For those who do not use mobile banking, what would increase their likelihood of using mobile banking?

We found that not only were some form of incentives the top choice, but the relative magnitude was quite substantial. In fact, those already using mobile banking are over four-times as likely to increase their usage due to some form of an incentive as the second most important, fingerprint authentication.

Financial Services chart

While incentives are still the most important for those who have never used mobile banking, they are not as strong of a motivator for increasing the use of mobile banking. Two-factor authentication (using two separate security verifications to login), fingerprint authentication, and live 24/7 support are also strong influencers when it comes to introducing consumers to mobile banking.

These findings show us that the motivation for mobile banking is not as simple as just introducing them to the app. Individuals have various reasons as to what would make them consider mobile banking or increase their usage. These factors need to be taken into consideration when a financial institution is trying to promote their mobile banking capabilities.

While these findings provide more insight into understanding mobile banking usage, we plan to explore this further by examining how the results would change if incentives were not an option. If a financial institution is unable to offer incentives, how much do the rankings change and how does the relative magnitude of each change as well?

As we continue to monitor and analyze these results we will make sure to keep you up to date on our findings. If you would like to learn more about this research and hear about what our future results tell us, make sure to follow our blog or contact our financial services team here at Morpace.

 

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14
Oct

Revealing Modern Truths About Fantasy Football

Fantasy-Football

By Greg Deinzer, Research Director

(With input from Chris Winkler)

I love watching football, but haven’t been involved in a fantasy league for 25 years. Back then, there was no online assistance to research or draft players, or to keep track of everyone’s weekly stats.

After all, that was the job of your league’s ‘commissioner’ who conscientiously entered data into a Lotus 1-2-3 spreadsheet and then kept all the important information to himself. That’s why he always won the $100 money pool year after year.

Nowadays, it seems everyone and their mother is in a fantasy football league. So, being the good market researcher that I am, I was curious to find out more about why fantasy football is still so popular. Findings from Morpace’s September 2015 Omnibus survey of 1,001 U.S. respondents help reveal some interesting truths about fantasy football leagues.

It turns out that only 13% of all respondents are involved in one or more season-long NFL Fantasy Football leagues this year. Of those currently participating, one-half are playing in one league, over one-fourth in two leagues, and 1-in-5 is in three or more leagues.

One-in-seven people who are currently in a league are participating for the first time. (Welcome…to the jungle!) And, about one-fourth have been involved for seven or more years. (Watch it bring you to your knnn knne knees, knees.) (Guns N’ Roses ca. 1987).

More women are joining season-long fantasy football leagues than when I participated. According to our Omnibus, over one-third (36%) of those currently playing in a league are female, and one-half of them are in their first or second year.

Surprising to me is that the top reason for joining a fantasy football league isn’t to win the prize pool. Three-out-of-five play because they like the competition and one-fifth want to do something together with their spouse/partner (which defeats the whole purpose in my opinion. Maybe that’s why I’m divorced).

There are fewer musty basements to meet in anymore. All of the fantasy football leagues are now hosted online, and well more than one-half of the participants draft their team online from various locations. Bars and restaurants even advertise each summer the reasons why your fantasy football draft should be held at their establishment.

Fantasy football leagues are also not as costly as I remember. The median total spent, according to our Omnibus, is $50 including entry fees, reference books, magazines, advice, parties, etc. However, close to one-third of fantasy managers subscribe to DirecTV’s NFL ticket, and if you’re like me and also subscribe, you know that this package can sometimes require a second mortgage. That may be why the mean total spent is $196 and $347 for first and second year participants.

In total, players admit to spending an average of 5.5 hours per week managing their team(s). Combine this with the two-thirds of fantasy managers who watch 3 or more games per week (at least one-half’s worth of the game) and we have a lot of time spent (or wasted) per week.

Three-fourths of those employed admit to checking on their fantasy football team at work, averaging 3.5 hours per week ‘managing’ their teams. I think we can double that average and add a few more hours and still not be close to reality.

Like me, 7% are not currently in any fantasy leagues, but have been in the past. Unlike me, about one-half of those people ‘Have other things to do’. Five percent even admitted that they quit because it interfered with their job. Hey, whatever happened to multi-tasking?

With the barrage of commercials for “one week” fantasy games and the amount of money you can win, the 5% of all respondents and one-third of current season-long participants who report playing the weekly contests seems low. But, because of illegal use of insider information, weekly games are probably only fun and profitable for the people who work at the websites who host them.

Oh, and if you are wondering who is going to win Super Bowl 50, 12% of all respondents predict the New England Patriots will repeat as champs. Seven percent pick the Green Bay Packers. Another 7% feel that the Seahawks will come through, barring a last second interception. And a whopping 47% chose a team that I’ve never heard of – ‘Don’t know/Don’t care’.

This likely isn’t information that you will use to help your company become more profitable, but the data from this Morpace Omnibus may help you to sound smarter than your fellow fantasy football league owner. And if anything, it tells us that America’s love for football is not going anywhere (that is, if you disregard the one-half who ‘Don’t know/Don’t care’).

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