2011 Apps, HMI and Telematics Voice of Consumer Study

European Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Mobility Apps, HMI Concepts and Telematics

Services

Multiclient Proposal for Discussion

September 2011

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Introduction and Study Objectives Page 3

Project Scope & Methodology Page 5

Key Deliverables Page 12

Project Timeline Page 18

Project Investment Page 20

Appendices Page 22

Table of Contents

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• How often do consumers use their smartphone inside the car? • Do consumers dock their smartphone inside the car on a regular basis?• Are consumers interested in free smartphone navigation, nominal paid smartphone navigation over other ones

such as PND and OEM? Satisfaction levels if already have a smartphone navigation solution?• Do they consider the smartphone to be a long term information and connectivity source inside car?

• What is consumer interest in accessing apps inside car in areas such as parking, augmented reality, crowdsourced navigation, ADAS, car sharing etc? Satisfaction levels if already access any of these apps?

• Are consumers willing to pay for these apps – even a nominal $2-5 as an one time fee? • What are the future app areas that consumers are interested to see - vehicle to grid, smart charging, integrated

parking and EV charging, etc?

• When it comes to infotainment, connectivity and smartphone interfacing what are the HMI input output options that comes to mind to consumers? Satisfaction levels with existing solutions (verbatim and with solutions)

• What is the consumer interest to pay for different input HMI options, current and future? • What is consumer interest to pay for different HMI output options, current and future?• How important is HMI in brand retention according to consumers compared to other key factors ?

• What is the customer satisfaction with existing OEM nav, connected nav, connected PND or other navigation solutions?

• What brands consumers perceive to have best in class app ready connected solutions?• What brands do consumers perceive to be best in terms of having the best HMI input output options? • What brands do consumers perceive to be best in terms of offering telematics services?

• How has app usage, needs and willingness to pay changed from 2010 results? • How has HMI usage, needs and willingness to pay changed from 2010 results?• How has smartphone usage levels changed from 2010 results?

Vehicle Satisfaction &

Brand Perceptions

Tracking Analysis - Comparison with 2010 Study Results

• What is consumer interest when it comes to telematics services such as eCall, bCall, vehicle tracking and mileage based insurance? Satisfaction levels with existing solutions?

• How much are consumers willing to pay for these services as an option? Do they want these features as standard inside the car?

• How does telematics features compare to others such as fuel economy in purchase influencer in vehicle buying?

Attitude, Perceptions and

Willingness to Pay for Telematics

Services

Smartphone Usage Trends – e.g.

Navigation, etc

Interest in Current and Expected Apps

in Entire Mobility Space

Attitude, Perceptions and

Willingness to Pay for HMI Options

2011 Apps, HMI and Telematics Voice of Consumer StudyEuropean Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Mobility Apps, HMI Concepts and Telematics Services

4

Introduction and Study Objectives Page 3

Project Scope & Methodology Page 5

Key Deliverables Page 12

Project Timeline Page 18

Project Investment Page 20

Appendices Page 22

Table of Contents

5

Mobility App Categories

Advanced Driver Assistance Services

e.g. iOnRoad

Dynamic Intermodal Transport Planning

e.g. Opti-Trans, Anystop

Parking Management and Payment Solutions

e.g. Parking Dialogue

LBS Categories – e.g. Taxi Booking

e.g. 1TouchTaxi, TaxiZapp

Crowdsourced Navigation and Traffic Application

e.g. Waze, Inrix, Beat the Traffic

Dynamic Ride Sharinge.g. RelayRides, Carticipate

Augmented Reality Applicationse.g. Mobilizy

Others – Location-enabled social networking, remote

communicatione.g. Foursquare, Viper

SmartStart

Mobility Apps- Mobile Apps are being Developed in a Variety of Fields Impacting Sustainability and New Age Mobility

We will focus on the apps below and also investigate future app types

6M6AO - 18

Telematics Related Apps

BMW Roadside

Assistance

Mercedes Mbrace

App

BMW Connected

App

Continental TPMS App

Vehicle Information

Apps

Audi Car Monitor

App

myChevrolet App

Ciao Fiat Smartphon

e App

Dynolicius –

Diagnostics App

Entertainment Apps

Toyota I Heart

Internet Radio App

Ford - Sync Enabled Pandora

Ford – Sync

Enabled Stitcher

BMW/Mini Connected

App

Location Based Service Apps

Toyota Park Smart

App

OnStar Mylink App

Trapster – Speed

Camera App

Viper Smart Start

Remote App

Navigation Related Apps

TomTom Navigation

App

Bosch Navigation

App

Toyota Smart G-Book App

Mercedes Smart

Drive App

Others

EV Apps – BMW

Active E, Nissan

LEAF apps

Zip Car – Car

Sharing App

Fauercia Smart Fit –

Seat Related

App

Green Apps – Green

Meter App

OEMs are Currently working on Developing API to Control Entertainment Apps on Smartphones through vehicle HMI and at the same time working on Free LBS Apps

7M6AO - 18

Cloud based

Partial Intelligence in Car Smartphone based

Vehicle based

Revenue Opportunity: HMI – Display

Apps

All Data accessed from CloudSmartphone / in-built modem used for connectivity

Revenue Opportunity: App / embedded unit

Virtual skins loaded both on car and mobile phoneSmartphone provides connectivity

Revenue Opportunity: HMI - Display

Revenue Opportunity: HMI - Display

Apps Apps

Apps

Smartphone used for connectivity

Apps

Future Connectivity Trends: VNC based data replicator method popular today as future leans towards cloud based head unit

8M6AO - 18

Apps Scope: We will test Consumer Desirability and Willingness to Pay for Existing and Upcoming App Ideas

Medium to Long Term (>2 Years)

Short Term (Next 1 Year)

Current

Navigation& Traffic

V2G

Smart Charging

Journey Planning

PrognosticsIntermodal

Trip Planning

LBS SocialNetworking

Telematics Services

LBS Apps

Car Sharing Augmented

Reality

ADAS

NFC Apps

EV StationFinder

V2V

Parking &Payment

RemoteControl

Apps

V2X Apps

We will investigate interest levels and willingness to pay for these current and future apps. However this is not an exhaustive list and can be expanded based on client feedback

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HMI Scope – A Variety of Input Output HMI Options relating to Infotainment and Connectivity will be Discussed

Not an exhaustive list, but some current and future features are listed below. We will expand it based on client feedback

10M29D-18

Usage-Based services (PAYD)

Stolen Vehicle Tracking

Vehicle Monitoring

Theft Notification

Stolen Vehicle Recovery

Event Notification

eCall Service

bCall Service

Post Crash Assistance

Remote Vehicle Diagnosis

In Vehicle Driver

Maintenance Assistance

Automatic diagnosis and

software updates

Pay As You Drive or Usage-

Based Insurance

Pays As You Pollute

Pays As You Drive Tax

Pays As You Drive Tolling

Usage-Based Rental/Leasing

Telematics Services Scope – Will include all types of services such as eCall/bCall, Diagnostics, UBI, SVT and also Analyze Impact of Upcoming eCall Legislation

11M29D-18

Audio and Radio Solutions Scope – We will include Traditional Audio Systems and Radio Solutions (Satellite Radio, Internet Radio, DAB etc) for Interest Investigation

We will look to analyze consumer

interest and willingness to pay for elements such

as 1) Sound

processing software

2) Speakers, Amplifiers, USB,

etc3) Surround sound

technologies4) Brand

perceptions

We will look to analyze consumer interest, perceived

benefits, drawbacks,

willingness to pay for

1) Internet radio apps

2) Pros and cons of internet radio

apps compared to other radio platforms

3) Data packages analysis

We will look to analyze consumer

interest, perceptions and

willingness to pay for different radio

platforms, such as 1) DAB, DAB+

2) Satellite Digital Radio

3) HD Radio service

4) AM/FM Radio

We also want to cover multimedia areas in this study – audio systems, radio technologies current and upcoming ones. We can expand list based on feedback from clients

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Research Methodology

Benefits of on-line panel based surveys...

On-line panel based survey of consumers

Benefits of On-line panel: Improved and more effective screening capabilities Respondents typically provided with incentives and

even if screened out consumers receive points so more willing to answer honestly

Allows questionnaires to include improved and advanced skip/branch logic and stimuli

Responses not left open to individual interpretation (i.e. by the interviewer)

Faster data collection times as invitations sent in parallel

Generally more cost effective than CATI or on-street intercept surveys

To conduct this proposed research we will use an on-line panel based survey. This will allow us to provide images and other stimuli to test consumer perceptions of the challenging issues associated with apps, HMI, telematics services, multimedia systems, etc. Furthermore, research conducted by Frost & Sullivan using this approach has proven the high level of quality in data collected versus CATI or on street intercept surveys. We will typically use panels that are used for market research purposes, therefore, panels quality is maintained.

Methodology:

Languages and Deliverables • Frost & Sullivan will conduct the research based on the

main languages of English, French, Italian ,Spanish,

Russian and German• Frost & Sullivan will deliver a report in PowerPoint

format & provide access to data via portal - simulator

likely to be included for the conjoint share of preference

- cross tables and data files in SPSS can be provided

upon request• The sample size and details will be finalized in

discussions with the key sponsors and is therefore

subject to change

Sample will be split between Rural and Urban consumers

Urban focus: London, Paris, Milan, Berlin, Madrid

Rural: random sample across each country

• France, Germany, Italy, UK & Spain

Sample size 2400

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Proposed Sample Size: Private Vehicle Owners

Online SurveyOutlined is an on-line survey with 2000 respondents across Europe.

Sample StructureThe quota per vehicle segment is shown in the table to the right. We are happy to discuss sample split and screening criteria with clients and modify accordingly. Significance testing (ANOVA and t-tests) will be used to compare views and differences by country, vehicle segment and other criteria will be highlighted in PowerPoint report.

Note: Sample will provide 95% confidence level with a sample error of less than +/-5% at the top level and when split by country. We can increase sample as required but sample costs will increase exponentially, the above sample provides a balance between robust sample

and cost.

Sample A&B C D&E SUV MPV Total

France 100 100 100 50 50 400

Germany 100 100 100 50 50 400

UK 100 100 100 50 50 400

Italy 100 100 100 50 50 400

Spain 100 100 100 50 50 400

Total 500 500 500 250 250 2000

Consumers will be screened as follows. Frost & Sullivan uses panel providers that employ strict recruitment guidelines and standards where possible or providers that use their panels for market research purposes only (e.g. no telemarketing). Consumers will be provided with points or cash incentives to complete the survey, points are usually awarded even when consumers are screened out.