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[Report]

Customer Desirability and Willingness to Pay for Active and Passive Safety systems

Published: 2005/07

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Table of Contents

Abstract

Acknowledged Need for Better Safety Features

As drivers in Europe become more conscious of their safety, the automobile industry is expected to witness a significant surge in demand for vehicular safety systems. While around 68.0 per cent of the respondents in the Frost & Sullivan study believe they have sufficient safety features, a significant 55.0 per cent acknowledged the need for additional safety mechanisms in their vehicles. Respondents primarily consider passive safety features and anti-lock braking systems (ABS) as contributing most to the safety of vehicles. Among the active safety features, there is a greater recognition of the role played by vehicle stability systems in improving safety, as compared to those of driver warning and collision avoidance systems.

This Frost & Sullivan research service evaluates customer perception towards current active and passive safety systems and determines factors influencing purchasing decisions. It further ascertains the package of safety systems most preferred by customer segments within different regional markets in Europe and thereby enables manufacturers and suppliers to better understand the expectation of customers, their desirability for safety and the willingness to pay

Occupant Detection Systems Have Greater Perceived Value

Respondents across Europe accord much importance to features that protect occupants during collisions. With the tendency of drivers to comprehend vehicular safety as passive protection, it is not surprising that a majority of respondents desire front and side airbags. However, the existence of a greater perceived value for occupant detection systems than additional airbags is a noteworthy observation.

"Among features that warn drivers of potential risks tyre pressure monitoring system (TPMS) and driver drowsiness warning (DDW) were the most preferred across Europe," says Anil Valsan, Programme Manager Frost & Sullivan."With the exception of the U.K., blind spot detection (BSD) and night vision system (NVS) were desirable and 20.0 per cent of Spaniards were not inclined to purchase a vehicle that lacked collision warning system (CWS)."

In terms of crash impact, respondents felt most vulnerable in a forward impact (32.0 per cent), followed by lateral (30.0 per cent) and rear-end (26.0 per cent) impact. This is particularly surprising considering the significant improvements achieved by vehicle manufacturers in terms of frontal and lateral crash protection.

Independent Safety Tests are Crucial in Purchase Decisions

Safety tests played a key role in influencing purchase decisions and respondents consider the passing of independent safety tests as the most important criteria indicating the safety of the vehicle. Additionally, while 85.0 per cent of the respondents lay importance to the vehicles road handling capabilities, Spanish drivers considered the number of in-built features more important than the vehicles road handling capabilities. Significantly, only 28.0 per cent of the respondents claimed to have heard of Euro new car assessment programme (NCAP). Despite this, Euro NCAP ratings exact a key influence on vehicle purchase decisions, thus pointing to the need for further its awareness.

Respondents consistently underestimated the price of existing safety features, indicating a clear lack of awareness about the cost of these systems. The research also indicates that as there exists a psychological pricing "sweet spot", manufacturers could work towards simultaneously lowering the cost of safety features to this preferred price and also raising this level through driver education in order to improve revenues.

"Manufacturers face a market that is currently resistant to new active safety technologies, mostly due to a lack of awareness," says Valsan. "The success of a safety technology is likely to depend on how well the manufacturer communicates and educates drivers on their value and ability to enhance safety."

Table of Contents

[Report]
Customer Desirability and Willingness to Pay for Active and Passive Safety systems
Published: 2005/07
Published by : Frost & Sullivan Frost & Sullivan

US $ 26,000.00 Web Access (Regional License)
US $ 26,500.00 Hard Copy & Web Access (Regional License)
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Product Code : FS32230
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