New Study Investigates How Much Consumers Are Willing To Pay For Automation
Researchers from Cornell University in the U.S., recently sought to investigate how much consumers might be willing to spend for autonomous vehicles.
They talked to roughly 1260 people across the country and they asked them hypothetical questions about vehicles, offering them different details about features and price. The participants were expected to choose between various cars depending on which features and price points they preferred.
When it comes to autonomous vehicles, there are some consumers who aren't willing to pay any extra for that sort of car.
But they did find on average that most consumers would be willing to pay about $4900 extra for this sort of technology. They even found some folks who would be willing to shell out an extra $10k, but that wasn't the average.
Their study also revealed that the average consumer would be willing to pay at least $3500 for crash avoidance technology.
The researchers suggest that car manufactures should consider this when it comes to their approach for developing further technologies in this area. And some of them already are.
GM is one of the companies that is at the forefront of this trend right now, and they are trying to introduce a number of vehicles at competitive price points into the market very soon. They've recently reaffirmed that the public should expect them to roll-out these vehicles sooner than expected.
GM aren't the only ones looking to provide affordability as they know most people aren't willing to spend a lot more when it comes to the impressive new technology that's available. Tesla is also working on providing affordable vehicles with this technology as well, along with Ford, Apple, and a number of competitors.
Right now there's a variety of different options on the market for consumers who are looking to get some form of automation, parallel parking technology and more. But it's expected that within just a few years we will see many more vehicle options on the market that are a fully autonomous option.
Pics:
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Sources:
https://steemit.com/technology/@doitvoluntarily/autonomous-cars-coming-from-gm-sooner-than-we-think
https://steemit.com/cars/@doitvoluntarily/new-cars-are-getting-harder-to-sell
https://steemit.com/technology/@doitvoluntarily/an-exciting-year-ahead-for-tesla-in-2017
https://steemit.com/technology/@doitvoluntarily/new-futuristic-drone-car-hybrid-unveiled-at-geneva-motor-show
http://www.consumerreports.org/cro/news/2015/06/coming-soon-affordable-2017-tesla-model-3-sedan-and-crossover/index.htm
https://www.sciencedaily.com/releases/2017/05/170508083555.htm
http://dailycaller.com/2017/05/08/study-people-will-spend-a-lot-of-extra-money-for-their-car-to-drive-itself/
Because of ever-increasing government regulations, everything (that is heavily regulated) is getting more expensive, not cheaper, as it should over time. Therefore, I believe that people will go towards non-risky alternatives, such as renting houses/RVs (the expensive stuff) and then using services like Uber and Airbnb. Using drones to deliver services like pizza and Amazon Prime will become the norm.
I'm not sure this is all 100% gov't regulations' fault, or if it's just the natural progression of things: we automate everything we can. It started with the loom and printing press and now it'll be transportation soon. For example, the first (primitive) version of autopilot was implemented in 1912.
Anyway, no one can say automation has made their life worse or more difficult, so I only see this trend increasing. I imagine it ending somewhat like the song "In the Year 2525" :)
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They asked the wrong questions. Their assumptions were invalid.
I've heard it discussed elsewhere that in the very near future people won't BUY cars. Who want's a car anyway? What you want is transportation. You want to get from point A to point B as conviently as possible. That's why mass transite sux. It is NOT convient.
Autonomous vehicles are a differnt color of horse.
Imagine Uber or something similar. All you need is a smartphone. You use it to summon a ride...and it's THERE in a few minutes. Quicker than you could walk to your car in the parking lot.
Then it takes you where you want to go..and that's it.
None of the hassel of automobile ownership (and they are LEGION)
That's what I was thinking too, when I read doitvoluntarily's post. The question is not what customers are willing to pay for a vehicle, but what they are willing to pay for (individual) "transportation as a service".
yup...i expect that the age of the private automobile is drawing to an end. Fairly soon the only thing that will be privately owned will be RV's
it is a valuable question for the many corporations currently funneling billions of dollars toward developing and working on this technology :)
how much people are willing to spend on transportation can be its own separate study and has been. Don't think this travel option is going away anytime soon. Will be nice to see some flying ones eventually !
real soon in Texas
My take is those without driver license will be willing to pay more.
Logical, right?