Nielsen AutoTECHCAST Report Finds Consumers Still Confused About 'The Connected Car'
August 24, 2016 at 5:02 AM (PT)
Consumers are increasingly motivated by advances in automobile tech, particularly around safety and convenience, when making a new car purchase. However, a new reports from NIELSEN finds that a lack of familiarity with connected vehicles and some lingering privacy concerns around these technologies remains as an obstacle to wider adoption and increased sales.
NIELSEN VP/Automotive MIKE VANNIEUWKUYK said, “Consumers are becoming more interested in advanced automotive technologies than ever before and are increasingly factoring these technologies into their purchasing decisions. Manufacturers need to continue to educate auto shoppers about the technologies that appeal to their personal interests and desires in order to distinguish their products from competitive options and build stronger brand loyalty with these tech savvy consumers.”
The Importance of Increasing Consumer Awareness
While advanced automotive technologies are on the rise, consumer awareness of many automotive technologies is not as widespread as some might think. The report found that base familiarity is low with just 25% being extremely or very familiar with these technologies.
However, familiarity with technology related to safety and connectivity has been on the rise. According to the report, the top five most recognizable advanced technologies are rear camera mirrors, smartphone-linked media functionality, blind spot detection and prevention systems, surround view camera systems, and smartphone-navigation vehicle interfaces.
'Connected Cars' Are Still A Mystery To Many Consumers
The report shows that nearly one-third of consumers have never heard of these technology-enabled vehicles, don’t know what connected cars do, and are not associating vehicle brands with infotainment badging. This highlights the need for manufacturers to better promote their branded infotainment systems and find more effective ways to market system-specific features to vehicle owners in order to raise awareness of connected car functionality.
Another issue facing connected cars is skepticism around protecting the consumer’s privacy. The report found that nearly two in three consumers surveyed are not willing to share information over fears their privacy would be comprised. Manufacturers will need to further their efforts in educating consumers about the benefits of connected cars, and reinforce privacy options available around how data is collected and security measures that are already in place in order to build trust and ease concerns.
Building Excitement For Advanced Technologies
The REPORT found that advanced technologies are highly appealing to Millennials and affluent buyers. “Automotive tech offers manufacturers an important tool for staying competitive and relevant, while appealing to the newest generation of consumers who are extremely technology savvy,” concluded VANNIEUWKUYK. “This year’s report highlights growing expectations by today’s consumers around safety and connectivity-related technologies. This rising awareness presents the industry with an important opportunity to refine their message and fine tune promotions that drive excitement for advanced technologies.”