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J.D. Power and Associates Reports: Vehicle Owners Show Willingness to Spend on Automotive Infotainment Features

Autonomous Driving Technology Piques Interest of Premium Vehicle Owners


News provided by

J.D. Power and Associates

Apr 26, 2012, 01:20 ET

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WESTLAKE VILLAGE, Calif., April 26, 2012 /PRNewswire/ -- Vehicle owners have come to expect additional safety features and are now turning their attention more to infotainment technologies in their vehicle, according to the J.D. Power and Associates 2012 U.S. Automotive Emerging Technologies Study(SM) released today.

(Logo: http://photos.prnewswire.com/prnh/20050527/LAF028LOGO-a)

The study measures vehicle owner interest and purchase intent for emerging automotive technologies, both before and after market price is revealed. The top-five considered technologies—based on vehicle owners who indicate that the "definitely" or "probably" would purchase in their next vehicle—both pre-price and at market price are:

Pre-Price Feature Interest

At Market Price Feature Interest

Light emitting diode (LED) headlights         70%

HD radio (at $100)                                                        52%

Natural language voice-activation              69%

Enhanced collision mitigation system (at $750)           46%

Next-generation head-up display               69%

Wireless connectivity system (at $300)                      45%

Wireless connectivity system                     68%

Surround-view rear-vision camera (at $550)              44%

Remote vehicle diagnostics                        65%

Personal assistance safety services (at $15/month)  41%

Not unexpectedly, purchase interest declines across all features when a price is introduced.

"While vehicle owners remain very interested in technologies that make their vehicle safer, they are turning their attention more and more toward features and technologies that allow them to be productive, connected and entertained while in their vehicles," said Mike VanNieuwkuyk, executive director of global automotive at J.D. Power and Associates. "Given the variety of interests from consumers, automakers will be challenged to pursue technologies that fit their consumer's interests in order to attract them to their products."

Autonomous Driving—Polarizing Views on Value

One of the newest, and the most expensive, technologies included in this study is autonomous driving mode—a feature that allows the vehicle to take control of acceleration, braking and steering, without any human interaction. While this technology is still being developed and tested, 20 percent of all vehicle owners say they "definitely would" or "probably would" purchase it in their next vehicle after learning the estimated market price of $3,000.  Prior to learning the price, interest for this technology was at 37 percent.

The study finds that vehicle owners are nearly as likely to select fully autonomous driving mode as they are to select semi-autonomous driving technologies such as emergency stop assist ($800), traffic jam assist ($800) or speed limit assist ($800).

"Consumers are still learning about how autonomous driving technology could be used in their vehicles," said VanNieuwkuyk. "Many owners are skeptical about releasing control of their vehicle and would like to see the technology proved out before they adopt it."

Vehicle owners with the highest interest in fully autonomous driving at market price are males (25%), those between the ages of 18 and 37 (30%), and those living in urban areas (30%).  The study also finds a high degree of interest (41%) in fully autonomous driving among vehicle owners who expressed interest in the automatic parallel parking feature, further illustrating similar interest in both semi-autonomous and fully autonomous driving modes.

Interest in autonomous driving mode differs among premium and non-premium vehicle owners. After learning the price, interest in the feature is at 18 percent among non-premium vehicle owners and at 31 percent among premium owners.

Research conducted[1]  by J.D. Power's Consumer Insight and Strategy Group to track social media activity regarding autonomous driving finds that online sentiment is generally positive. While some vehicle owners perceive the benefit of autonomous driving as taking the control away from careless, distracted drivers, others see it as an opportunity to be free and to enjoy the time while traveling. However, auto enthusiasts see autonomous driving as the loss of status and would not want to give up the pleasure of driving.

Other social media research findings include:

  • Many drivers believe that autonomous driving is an emerging trend, but is still far off in daily use primarily due to legal barriers and real-life implementation hurdles.
  • Drivers would want the option for autonomy during times of "boring" driving, such as commuting to and from work, highway driving, going to the store or finding a parking space, but want to take control for pleasure driving or manual maneuvering.
  • Given consumer expectation that an autonomous vehicle will cost more upfront and also to maintain than a traditional vehicle, some consumers envision the potential for vehicle-sharing programs with neighbors or within families as a means to offset these costs.

(Photo: http://photos.prnewswire.com/prnh/20120426/LA95823)

The 2012 U.S. Automotive Emerging Technologies Study is based on responses from more than 17,400 vehicle owners. The study was fielded in March 2012. The study includes 23 primary technologies, each with related secondary technologies; analyses on device connectivity, navigation, safety and premium sound systems; a key emerging technologies packaging exercise; an emerging technologies adoption calculator; and expanded psychographic and lifestyle-driven content.

About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two public companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.

Media Relations Contacts:
John Tews; J.D. Power and Associates; Troy, Mich.; (248) 680-6218; [email protected]
Syvetril Perryman; J.D. Power and Associates; Westlake Village, Calif.; (805) 418-8103; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

[1] Autonomous driving social media research includes information from October 2011 through April 2012, consisting of over 25,000 online sound bites across various social media channels.

SOURCE J.D. Power and Associates

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