Report Assesses Consumer Acceptance of Intelligent Transportation Systems Products
3 November 1999
Who Will Buy Intelligent In-Vehicle Products?; New Report Assesses Consumer Perceptions and Acceptance of Intelligent Transportation Systems Products
MENLO PARK, Calif.--Nov. 2, 1999--Today, SRI Consulting's (SRIC's) Business Intelligence Center (B-I-C) released a report evaluating consumer perceptions and acceptance of in-vehicle intelligent transportation systems (ITS) products.Released by B-I-C's unique program dedicated to tracking this market in depth, this report uses B-I-C's highly reliable Values and Lifestyles (VALS(TM)) consumer psychographic segmentation system to determine what types of consumers will likely purchase ITS-related products and, by extension, which markets ITS vendors should target first. Consumers' perceptions of an ITS product's value rather than technology or product features will ultimately determine consumer acceptance.
The report identifies the early adopter entry point for ITS products as well as the critical secondary and tertiary consumer targets that will constitute the mass market for ITS products and services. ITS products that the report covers include systems used for navigation, safety and control, information, and communications. At present, Japanese and European consumers are quicker to adopt such technologies than are consumers in the United States, largely because of elevated status consciousness, lower average system costs, and the particular navigational needs in those regions. In 1998, fewer than 5% of cars sold in the world with navigation systems went to the United States.
Where Is the U.S. ITS Market for In-Vehicle Products?
Within the small, nascent U.S. market for intelligent in-vehicle technologies, SRI Consulting's four-year research program has identified the market segments and consumer types that hardware and service vendors must target in order to achieve success.
To thrive in the United States, ITS hardware and service vendors must first pursue and win the nation's Actualizers -- a VALS segment denoting change leaders who are adventurous, sophisticated, analytical consumers. Actualizers acquire products and services as an expression of their fine taste. Because Actualizers are early adopters, capturing the Actualizer consumers is critical to mass-market acceptance of ITS in-vehicle products.
Once ITS has gained acceptance among Actualizers, the true mass market for ITS in-vehicle safety and control will be composed of Achievers and Fulfilleds. Achievers follow Actualizers in their product-acceptance behavior. Achievers are successful career- and work-oriented people who tend to make purchases as a show of status. Achievers tend to be more value conscious than are other segments and perceive ease of use as a key factor in any purchase. Fulfilleds are planning-research-oriented people who evaluate products in terms of their functional and practical benefits. Fulfilleds do not buy technology for technology's sake; they buy practical innovations that have been positively evaluated by impartial sources.
The report discusses the other consumer VALS types and how they may (or may not) be worthwhile marketing targets for intelligent in-vehicle systems as consumer demand diffuses through the population.
What Are the Other Keys to U.S. ITS Product Success?
Most of the initial domestic consumer interest for ITS products is going to focus on systems for vehicle safety and control. B-I-C estimates that the (target) market potential for vehicle safety and control systems could climb to 37% of the U.S. population within the next eight to ten years. The report also asserts that in-vehicle product integration is key to achieving mass-market acceptance in the United States; U.S. consumers do not believe that they receive enough compelling benefits from expensive, single-purpose systems.
"ITS vendors and proponents have followed a build-it-and-they-will-come philosophy with regard to the development and consumer adoption of advanced in-vehicle systems," said David Benson, project leader of B-I-C's ITS program. "However, these vendors will have to overcome substantial current consumer apathy as well as product-reliability, cost, and complexity hurdles before we'll see the ITS in-vehicle product market take off in the United States."
About B-I-C's ITS Program
The B-I-C Intelligent Transportation Systems multiclient research program assists subscribing companies and government agencies in the ITS industry to receive a global and independent view of the commercial prospects of intelligent transportation systems. The eight reports of the 1998-99 Intelligent Transportation Systems Program assist clients with analyses of the implications and business opportunities within the critical ITS market areas: mobile communications, electronic payment systems, strategic alliances, interactive speech recognition, personal safety and security, service providers, product integration, and consumer perceptions. For further information, visit http://future.sric.sri.com/ITS.index.shtml.
About VALS
SRIC's VALS consumer psychographic segmentation system categorizes U.S. adult consumers into mutually exclusive groups on the basis of their psychology and several key demographics, highlighting factors that motivate buying behavior. VALS is superior to other segmentation systems (often based solely on demographics or geographics) in that it looks at the underlying psychological makeup of consumers.
About SRI Consulting
SRI Consulting, a wholly owned subsidiary of SRI International, combines strategic business consulting with technology expertise to help companies compete more effectively in changing global markets. SRI International is one of the world's largest research, technology development, and consulting firms.