Westlake Village, CA (August 20, 2007)–Among consumers who indicate they are highly interested in having a premium surround sound system in their next vehicle, more than 80 percent are willing to pay twice the average market price for a branded system, according to a 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 percent saying they are interested in a system capable of playing multiple audio formats.
Additionally, at a market price of $100, 50 percent of consumers are interested in a USB interface, and 43 percent are interested in an iPod interface at a slightly higher market price of $150.
“It’s interesting to note that while interest in premium surround sound is somewhat higher among younger consumers, the feature still garners relatively high interest among consumers of all ages,” said Mike Marshall, director of automotive emerging technologies at J.D. Power and Associates. “With some other features, there is a considerable gap in interest between younger and older consumers, and the gap for premium surround sound is notably smaller. Given its universal appeal, auto manufacturers are well positioned to offer premium surround sound systems across all of their vehicle models, as opposed to targeting a specific vehicle segment or model line.”
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.
J.D. Power and Associates