J.D. Power Reports: Vehicle Owners Willing to Pay for Smartphone Functionality, but Not Connectivity - KPTV - FOX 12

J.D. Power Reports: Vehicle Owners Willing to Pay for Smartphone Functionality, but Not Connectivity

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SOURCE J.D. Power

WESTLAKE VILLAGE, Calif., May 1, 2014 /PRNewswire/ -- Among the technologies currently available or coming soon to vehicles, the ones consumers want most are those that allow them to access the entertainment, information and connections they currently get from their smartphone, according to the J.D. Power 2014 U.S. Automotive Emerging Technologies StudySM released today.

J.D. Power corporate logo. (PRNewsFoto/J.D. Power)

The study measures vehicle owner interest and purchase intent regarding 61 emerging automotive technologies both before and after the market price is known. Before being shown price, the two technologies that garner the most consumer interest are wireless connectivity systems, which create a communication link between electronic devices and the vehicle, and a device/application link, which allows viewing and controlling electronic devices and apps through the factory-installed equipment on the vehicle (83% and 78%, respectively).  

While these features top consumer wish lists, most (60%) feel that a wireless connectivity system should be standard equipment on the next vehicle they purchase, while only 23 percent of consumers feel the same about device/application link.  Device/application link has the highest consumer interest at market price with 79 percent of consumer indicating that they are willing to pay $250 to have this technology. However, with a market price of $300, interest in wireless connectivity systems drops to fourteenth, with 55 percent of consumers willing to pay to have the technology in their next vehicle.

"Smartphone ownership has increased to 70 percent in 2014, and consumers want the same connectivity in their vehicle as they are used to getting from their smartphone, computer or tablet," said Mike VanNieuwkuyk, executive director of global automotive at J.D. Power. "Device/Application link enables the vehicle to replicate the display of a device on the vehicle's screen while managing the device through the vehicle's controls, which is why consumers want-and are willing to pay-to have that technology."

Along with device/application link, other technologies owners are most willing to pay to have in their next vehicle are surround-view/rear-vision camera system ($550); active shutter grille vents ($150); wireless charging station ($75); advanced accident notification system ($25/month); and smartphone navigation vehicle interface ($100).

KEY FINDINGS

  • Nearly one-fourth (24%) of owners express interest in paying to have autonomous driving mode ($3,000) in their next vehicle, up from 21 percent in 2013 and 20 percent in 2012. Continued exposure to and experience with such semi-autonomous features as fully autonomous parking systems, enhanced adaptive cruise control and traffic jam assist are helping to gradually increase consumer awareness and trust in autonomous driving mode.
  • Stable gas prices, along with improvements in fuel economy from today's vehicles, are holding consumers back from making major investments in fuel-saving technologies. Consumers view low-price fuel economy features that provide nominal gas mileage improvements as good enough, according to VanNieuwkuyk.  Lower-cost features that improve fuel economy through vehicle aerodynamics receive higher interest from consumers than more expensive features targeting engine fuel efficiencies and energy collection.
  • Convenience features also receive strong interest from consumers. Features such as wireless charging stations make sense to consumers given the daily use of connected smartphones and media devices in the vehicle. Near field communication-allows use of a smartphone to control various vehicle functions such as unlocking car, remote start and opening trunk/tailgate-and voice-activated personal assistant system, consisting of convenience features that further leverage smartphone functionality, also receive strong interest.
  • Hand gesture-controlled cockpit is the technology with the lowest consumer interest both before and after the market price is revealed. With a market value of $1,000, hand gesture-controlled cockpit uses sensors to detect hand motions to control a variety of functions in the vehicle. Limited consumer awareness and trust in this type of technology, combined with a high price, are likely the cause of low consumer interest, according to VanNieuwkuyk.

The 2014 U.S. Automotive Emerging Technologies Study is based on responses from 15,171 vehicle owners. The study was fielded in February and March 2014. The study includes 61 features and technologies in 13 categories, ranging from collision protection to visibility enhancements as well as an assessment of six unique consumer groupings that provides for targeting technology interests across consumer segments.

Media Relations Contacts
John Tews; Troy, Mich.; 248-680-6218; media.relations@jdpa.com 
Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; media.relations@jdpa.com

About J.D. Power and Advertising/Promotional Rules http://www.jdpower.com/about-us/press-release-info 
About McGraw Hill Financial www.mhfi.com 

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