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Overview
Driscoll-Wolfe Marketing & Research Consulting has
conducted a nationally projectable marketing research
study on consumer interest in a wide range of location-based
applications. The study assesses interest and willingness
to pay for location-based services, telematics and GPS
navigation systems. It also identifies preferred devices
for accessing location-based applications, such as vehicle-installed
and portable devices, cellular phones and PDAs. In addition,
the study assesses consumer opinions regarding location-based
advertising, driver distraction and the potential impact
of location-based services on privacy.
This
study was partially funded by nine companies, including
leading automotive manufacturers, automotive electronics
suppliers, digital mapping companies and suppliers of
LBS products and technology. Charter subscribers include
Alpine Electronics, Autodesk Location Services, Motorola,
Navigation Technologies, Nissan, QUALCOMM, Thales Navigation,
Telcontar and TruePosition.
The new Driscoll-Wolfe LBS, Telematics and Vehicle Navigation
Study is based on a nationwide survey of 20,000 households
and a series of focus groups in key U.S. metropolitan
areas. The large nationwide sample base allows for comparison
of interest and willingness to pay for equipment and
services based on a wide range of demographic criteria
and other factors, such as gender, age, income, use
of cellular phones and cost of household vehicles. This
study uniquely enables subscribers to identify those
segments of the population most interested in location-based
applications.
Study
Provides Answers to the Following Questions
- Which
location-based services are of greatest interest to
consumers?
-
What percentage of consumers would subscribe to location-based
services, and how much are they willing to pay?
-
How do cellular phone users rate the importance of
GPS or other location capability in a cell phone for
emergencies and other services?
-
How interested are motorists in purchasing navigation
systems or telematics systems?
-
How does interest and willingness to pay for location-based
applications differ based on gender, age, household
income and other demographic criteria?
-
Are drivers of upper-end vehicles more interested
in navigation systems and telematic services than
drivers of mid-level or lower-end vehicles? How much
will they pay for these systems?
-
Are frequent cellular phone users and cellular Internet
users more interested than others in location-based
applications?
-
What cellular applications are of most interest to
consumers? (e.g. personal messaging, push-to-talk,
navigation assistance, traffic information) How does
interest in location-based applications compare to
other applications?
-
How does interest in location-based services and other
wireless applications compare among subscribers to
different cellular networks?
- Do
motorists favor portable or installed navigation systems?
What features are most important to motorists?
-
Are people more willing to pay for services on a per
transaction or monthly basis?
-
What type of devices do consumers prefer to use for
accessing location-based services, e.g. cellular phone,
PDA, in-vehicle device?
-
What percentage of cellular and PDA users have downloaded
software applications to these devices?
-
How important do consumers regard the availability
of a telematics or navigation system in the selection
of a new vehicle? How important are these systems
to those who currently have vehicles equipped with
telematics or navigation systems?
-
How likely are consumers to subscribe to cellular
service or to switch carriers for access to location-based
services?
- What
are the lifestyle characteristics and demographic
profile of those most interest in location-based services,
telematic services and GPS navigation systems?
-
Will consumer acceptance of wireless advertising messages
be influenced by offers of electronic discount coupons,
or incentives such as reduced airtime?
-
To what extent are people concerned about the potential
impact of location-based services on their privacy?
Location-Based
Services Covered
The study covers a wide range of location-based applications,
including the following:
| ·
Emergency Notification |
·
Navigation Systems |
| ·
Collision Notification |
·
Navigation Services |
| ·
Roadside Assistance |
·
Monitor Family Vehicles |
| ·
Stolen Vehicle Tracking |
·
Locate Family and Friends |
| ·
Real-Time Traffic Information |
·
Location-Based Advertising |
| ·
Points of Interest |
·
Mobile Coupons |
| ·
Vehicle Diagnostics |
·
Information on Nearby Entertainment |
Focus
Groups
A total of six focus groups were conducted in October
and November, 2003. Two groups were conducted in each
of three metropolitan areas including Washington D.C.,
Chicago and Los Angeles. These cities were selected
to provide geographic representation of major population
centers.
One
focus group in each city was conducted with cellular
subscribers who have an average monthly bill of $75
or more, and who use cellular primarily for business.
The other group was conducted with individuals who use
cellular primarily for personal communications, have
an average monthly cellular bill of under $75. All participants
were 25~55 years of age and have a household income
of $60,000 or more.
The focus groups provided detailed information on consumer
interest in location-based applications and willingness
to pay for equipment and services. Focus group participants
commented extensively on their preferences for devices
to access location-based applications and device features.
They also provided their opinions regarding location-based
advertising and promotions and discussed their concerns
about the potential impact of location-based services
on privacy and ways to reduce these concerns.
Nationwide
Survey
The projectable portion of the study was conducted in
collaboration with NFO Research, Inc. Questionnaires
were sent to 20,000 members of NFO’s consumer
panel. The total sample was split into two groups of
10,000 households, with each group receiving a different
questionnaire. Each sample of 10,000 was balanced to
key U.S. Census demographic variables, such as geographic
location, household size, age of head of household,
cellular phone ownership and income. Completed questionnaires
were received from over 13,000 panel members in the
two groups.
The survey assessed consumer interest and willingness
to pay for location-based applications and devices to
access these applications. Respondents indicated their
willingness to pay for individual location services,
as well as bundled services. The survey provides projectable
data on consumer interest in purchasing navigation and
telematics systems for both new and currently-owned
vehicles. It also clearly determines interest of cellular
phone users in location-based applications, in comparison
to other cellular applications.
The nationwide survey also compares interest in services
and willingness to pay based on criteria including gender,
household income, age, and geographic region. Interest
and willingness to pay for services is also compared
based on the cellular service provider used, frequency
of cellular calls, price of household vehicles, current
use of navigation and telematic systems and other criteria.
Detailed Report
The 128-page report of the research findings includes
the following sections:
- Overview
of the study, including objectives and methodology
-
Executive summary of the key findings
-
Conclusions of the research
-
Detailed report on the findings of the nationwide
survey
-
Detailed focus group report
-
Appendix with nationwide survey questionnaires
Subscribers
who purchase the detailed report only receive a bound
copy of the report, as well as an electronic copy (CD).
Those who purchase the complete study also receive the
nationwide survey statistical tables (approx. 400 pages)
with details of responses and demographic data for each
nationwide survey question.
Optionally, subscribers to this study may schedule an
Executive Presentation of the findings by one of the
Driscoll-Wolfe senior partners. Additional copies of
the report are also available at a nominal fee.
Driscoll-Wolfe
Driscoll-Wolfe Marketing & Research Consulting,
with offices in Los Angeles and Palos Verdes Estates,
CA, conducts multi-client and private marketing research
studies covering wireless communication and GPS products
and services. The current study is the company’s
seventh multi-client study and the sixth emphasizing
location-based applications. Charter subscribers to
previous Driscoll-Wolfe multi-client studies have included
American Honda, AT&T Wireless, ATX Technologies,
BMW, Cingular Wireless, Daimler Chrysler, Intel, Microsoft,
Motorola, Navigation Technologies, Nissan, QUALCOMM,
TeleAtlas, Toyota, Verizon Wireless, and other major
corporations. |
