Branding increases pricing consumers willing to pay for Surround Sound
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Among consumers who indicate they are highly interested in having a premium surround sound system in their next vehicle, more than 80% are willing to pay twice the average market price for a branded system, according to the J.D. Power and Associates 2007 U.S. Automotive Emerging Technologies Study.
The study is designed to measure consumer familiarity, interest and purchase intent for emerging automotive technologies both before and after an estimated market value is revealed.
The study finds that the majority of consumers who are highly interested in premium surround sound are willing to pay an average of 1,000 for a branded system, which is twice the suggested market price of 500. In general, interest in audio-related features is high among consumers, with 60% saying they are interested in a system capable of playing multiple audio formats. Additionally, at a market price of 100 dollars, 50% of consumers are interested in a USB interface, and 43% are interested in an iPod interface at a slightly higher market price of 150.
Among the features examined in the study, rear-seat entertainment system, in-vehicle Internet and wireless connectivity yield the largest gaps in interest-prior to the introduction of price-between younger consumers and older consumers.
The study also finds that many safety-related technologies continue to garner higher interest levels from consumers. After the introduction of price, new-vehicle owners are most interested in two-stage smart airbags, which inflate in multiple stages, with less pressure and help to protect passengers from potential injuries associated with traditional (one-stage) airbags. Following two-stage smart airbags are backup assist and run-flat tires, which are also safety-related technologies.
Once average market prices are revealed, the study finds that rear-seat entertainment systems (1,500) and collision mitigation systems (1,750) receive the lowest interest levels from consumers of all emerging technologies examined in the study. These features are also among the most expensive features examined in the study. Other technologies with low interest after the price is revealed are lane departure warning system and in-vehicle Internet.
The study is designed to measure consumer familiarity, interest and purchase intent for emerging automotive technologies both before and after an estimated market value is revealed.
The study finds that the majority of consumers who are highly interested in premium surround sound are willing to pay an average of 1,000 for a branded system, which is twice the suggested market price of 500. In general, interest in audio-related features is high among consumers, with 60% saying they are interested in a system capable of playing multiple audio formats. Additionally, at a market price of 100 dollars, 50% of consumers are interested in a USB interface, and 43% are interested in an iPod interface at a slightly higher market price of 150.
Among the features examined in the study, rear-seat entertainment system, in-vehicle Internet and wireless connectivity yield the largest gaps in interest-prior to the introduction of price-between younger consumers and older consumers.
The study also finds that many safety-related technologies continue to garner higher interest levels from consumers. After the introduction of price, new-vehicle owners are most interested in two-stage smart airbags, which inflate in multiple stages, with less pressure and help to protect passengers from potential injuries associated with traditional (one-stage) airbags. Following two-stage smart airbags are backup assist and run-flat tires, which are also safety-related technologies.
Once average market prices are revealed, the study finds that rear-seat entertainment systems (1,500) and collision mitigation systems (1,750) receive the lowest interest levels from consumers of all emerging technologies examined in the study. These features are also among the most expensive features examined in the study. Other technologies with low interest after the price is revealed are lane departure warning system and in-vehicle Internet.
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