J.D. Power: Consumers in Germany and the UK Express Strong Interest in Certain Options and Alternative Powertrain Technologies
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- Active Cornering Headlights and Navigation Devices Garner Highest Interest Levels Before Price is Revealed
WESTLAKE VILLAGE, California, August 19,2008; Consumers in Germany and the United Kingdom express strong interest in alternative powertrain options, such as hybrid-electric and clean diesel technologies, even after the average market price is revealed, according to the J.D. Power and Associates 2008 Germany and United Kingdom Automotive Emerging Technologies Study(SM) released today.
The study is designed to measure consumer familiarity, interest and purchase intent for 13 emerging automotive technologies in Germany and the United Kingdom both before and after an estimated market value is revealed.
The study finds that before the average market price is revealed, interest in hybrid-electric technology ranks sixth and clean diesel ranks 12th among consumers in Germany. Additionally, prior to price introduction, interest in hybrid-electric technology ranks fifth and clean diesel technology ranks sixth among consumers in the United Kingdom.
However, once the average price is revealed, interest in alternative-powertrain technologies increases among consumers in both markets. In Germany, hybrid-electric technology ranks second and clean diesel ranks fifth among consumers. In the United Kingdom, clean diesel technology garners the highest interest among consumers after the market price is revealed while hybrid-electric technology ranks third.
"Relative to the 13 features examined in the study, interest in alternative powertrain technologies -- particularly clean diesel -- is much higher among consumers in Germany and the United Kingdom compared with consumers in the United States," said Amy Jacobs, manager of automotive emerging technologies at J.D. Power and Associates. "The gap in interest may be attributed to the tendency of consumers in European markets to purchase smaller vehicles that are more conducive to hybrid-electric technology. Diesel technology also has a much stronger presence in these regions compared with the United States."
The study also finds that, before the average market price is revealed, three features -- portable navigation devices, built-in navigations systems and active cornering headlight systems, which is a vehicle-sensing feature used to enhance night driving -- garner the highest interest among consumers in both Germany and the United Kingdom. In particular, portable navigation devices receive the highest interest among consumers in the United Kingdom, while active cornering headlight systems lead among consumers in Germany prior to the introduction of price.
In addition, after the market price is revealed, consumers in both Germany and the United Kingdom are much less interested in satellite radio compared with consumers in the United States. Interest in satellite radio among U.S. consumers is based on findings from the J.D. Power and Associates 2008 U.S. Automotive Emerging Technologies Study(SM).
"Low interest levels for satellite radio may be attributed to low market penetration for this feature in both Germany and the United Kingdom," said Jacobs. "However, as new satellite radio providers enter the market, it is likely that an increase in familiarity will also lead to a general increase in consumer interest for this feature."
The study also finds the following consumer trends in Germany and the United Kingdom:
-- In Germany, consumers ages 38 years or older are more willing to pay the market prices for HD radio, navigation systems, collision mitigation systems, clean diesel technology and active cornering headlight systems, compared with consumers ages 16 to 37. Conversely, consumers ages 38 years or older in the United Kingdom are typically less willing to pay market prices for emerging technologies in general compared with younger consumers.
-- Among consumers in both Germany and the United Kingdom, males express higher levels of awareness for the 13 emerging technologies included in the study, compared with females. In both markets, one of the largest gaps in awareness between males and females exists when considering awareness of premium surround sound.
The 2008 Germany and United Kingdom Automotive Emerging Technologies Study is based on responses from 2,500 consumers in Germany and 2,501 consumers in the UK. The web-based survey was fielded in May and June 2008.
Feature Interest Before and After the Market Price: Germany
Percent Definitely/ Rank After
Technology Probably Interested Market Price
Active Cornering Headlight
System 73% 1 (375 euro)
Navigation System 71% 11 (1.800 euro)
Portable Navigation Device 71% 7 (450 euro)
Collision Mitigation System 67% 7 (1.800 euro)
Heated/Cooled Front Seats 60% 4 (800 euro)
Hybrid-Electric Capability 57% 2 (2.500 euro)
HD Radio 53% 3 (300 euro)
Premium Surround Sound 49% 9 (600 euro)
Personal Assistance Safety
Services 47% 10 (20 euro/month)
Wireless Connectivity System 46% 5 (300 euro)
Satellite Radio 38% 13 (19,95 euro/month)
Clean Diesel Engine 36% 5 (1.500 euro)
In-Vehicle Internet Connection 32% 12 (25 euro/month)
Feature Interest Before and After the Market Price: United Kingdom
Percent Definitely/ Rank After
Technology Probably Interested Market Price
Price
Portable Navigation Device 68% 8 (400 pounds)
Navigation System 64% 13 (1,800 pounds)
Active Cornering Headlight
System 57% 2 (350 pounds)
Collision Mitigation System 56% 10 (1,700 pounds)
Hybrid-Electric Capability 53% 3 (2,500 pounds)
Clean Diesel Engine 52% 1 (1,500 pounds)
HD Radio 48% 6 (300 pounds)
Personal Assistance Safety
Services 44% 7 (20 pounds/month)
Heated/Cooled Front Seats 44% 5 (500 pounds)
Premium Surround Sound 42% 9 (575 pounds)
Satellite Radio 41% 12 (15.95 pounds/month)
Wireless Connectivity System 38% 3 (250 pounds)
In-Vehicle Internet Connection 34% 11 (25 pounds/month)
NOTE: The charts indicate consumer interest absent of any price mention. The column labeled "Rank After Market Price" indicates the rank of consumer interest in features after exposed to the likely relative market price of the features. Price quote is listed in parenthesis (all references to pounds are pounds Sterling).
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, training and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually.
About The McGraw-Hill Companies
Founded in 1888, The McGraw-Hill Companies is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, McGraw-Hill Education, BusinessWeek and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2007 were US$6.8 billion. Additional information is available at http://www.mcgraw-hill.com.