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Automobilwoche reports on PFH’s “Connected Car Services-Study”

What is the willingness to pay for connectivity services in vehicles? The industry and economic newspaper Automobilwoche asked this question in its online edition (10.09.2020). The article deals with the increasing importance of electric cars and the associated Connected Services. According to the consultants at Cap Gemini, the importance of networked vehicles will increase in the coming years. “In 2018, there were still 119.4 million worldwide, but their number is expected to rise to 352 million by 2023.”

According to a study by Cap Gemini, 56 percent of car owners have networked services in their vehicles. About half of them use these services frequently or very frequently and just under a third occasionally. The study “Connected Car Services in Germany” by PFH Private University of Göttingen is also quoted.

In both studies, it is clear that the willingness to pay is currently relatively low. According to the Cap Gemini study, 39 percent of participants said that the services are useful, but not sufficiently developed, while another 23 percent are not aware of their benefits. According to the study “Connected Car Services in Germany”, conducted by Hans-Christian Riekhof and Marc Scholz in spring 2020, about a quarter are not willing to pay for connectivity services. Just over a third would pay about 10 euros a month for the service.

Links on the topic:

Contribution on automobilwoche.de:
https://www.automobilwoche.de/article/20200910/NACHRICHTEN/200919993/studien-zu-connected-services-interesse-ja-bezahlen-nein

Read the study “Customer Insights: Connected Car Services in Germany” (pdf):
https://www.unicconsult.com/wp-content/uploads/2020/07/PFH-Studie-Connected-Car-Services-Riekhof-Scholz-2020.pdf

Deutschlandfunk Picks Up Connected-Car-Services Study

Deutschlandfunk picks up the study “Customer Insights: Connected Car Services in Germany”. This was conducted by Prof. Hans-Christian Riekhof with Marc Scholz in the spring of 2020 for the Private University of Göttingen. As part of the “Computer and Communication” series, the radio station now interviewed Hans-Christian Riekhof on the topic aspect “Drivers are skeptical of Connected-Car services”.

In the approximately 6-minute contribution, it becomes clear what opportunities are now offered by car-to-car communication. And which connectivity services currently interest drivers and which do not. An exciting insight is also promised by the answer to the question of which companies are trusted in dealing with the collected data.

Link to the audio contribution:
https://www.deutschlandfunk.de/podcast-computer-und-kommunikation-beitraege.685.de.podcast.xml

Read the study “Customer Insights: Connected Car Services in Germany” (pdf):
https://www.unicconsult.com/wp-content/uploads/2020/07/PFH-Studie-Connected-Car-Services-Riekhof-Scholz-2020.pdf

Göttingen City Radio reports on Connected-Car-Services study

The study “Connected-Car-Services in Germany” has now been picked up by Göttingen City Radio. With the much-noticed study, one of the first investigations was carried out that analyzes the connectivity services currently available in the vehicle from the customer’s perspective. The radio station points to the enormous potential in vehicle connectivity highlighted in the study.

In addition, the radio editorial team addresses the security of the data that arises when using the Car2Car communication services and which companies are trusted in this regard. “The respondents consider Car2Car communication services, which primarily warn subsequent vehicles in dangerous situations, to be particularly forward-looking”, says the broadcaster.

The study was conducted by Prof. Hans-Christian Riekhof and Marc Scholz in the spring of 2020 for the PFH Private University of Göttingen. To this end, 543 people answered standardized questionnaires using quantitative data collection, which the authors of the study then evaluated.

Links

Read the study “Customer Insights: Connected Car Services in Germany” (pdf):
https://www.unicconsult.com/wp-content/uploads/2020/07/PFH-Studie-Connected-Car-Services-Riekhof-Scholz-2020.pdf

Further studies:
https://www.unicconsult.com/publikationen/forschungsberichte/

Electronics Journal Reports on Study of Connected Car Services

The online electronics journal elektronikpraxis.vogel.de reports on September 15, 2020 about the study on Connected Car Services by Prof. Dr. Hans Christian Riekhof and Marc Scholz. Under the title “Concerns about the data security of networked vehicles”, the editorial team particularly highlights the aspect of data security.

The magazine quotes, among other things, one of the central findings that the authors of the study made with regard to consumer behavior. For consumers, not only cost-benefit aspects played an important role in the decision for or against Connected Car Services, but also the question of data security. The study therefore also examined the willingness of drivers to leave information about their health-related driving ability, their driving behavior or the chosen routes and detours to an international corporation.

Drivers with concerns about data security

The study found that compared to leading automotive corporations with leading IT corporations, users place higher trust in the automotive corporations. Nevertheless, security concerns regarding their data remained comparatively high at 68%. The trust in the premium manufacturers in the use of data from the connectivity services is therefore high: Apple is in 4th place ahead of other European manufacturers. Facebook and Google are clearly lagging behind.

The study “Customer Insights: Connected Car Services in Germany”, was conducted from March 2 to 31, 2020 by Hans-Christian Riekhof, Professor of International Marketing, and Marc Scholz, co-author of the study and master’s graduate, for the Private University of Göttingen (PFH). The procedure is based on a quantitative data collection in the form of a standardized questionnaire.

More on the topic:

To the article in the Elektronikpraxis:
https://www.elektronikpraxis.vogel.de/bedenken-bei-der-datensicherheit-vernetzter-fahrzeuge-a-963342/

News on the study:
https://www.unicconsult.com/studie-zu-connected-car-services/

Read the study “Customer Insights: Connected Car Services in Germany” (pdf):
https://www.unicconsult.com/wp-content/uploads/2020/07/PFH-Studie-Connected-Car-Services-Riekhof-Scholz-2020.pdf

Pilot Project at Penny: Do Anchor Prices Work for Groceries?

What is the real cost of food when all costs are included in the price? The grocery discounter Penny has now calculated the “true” prices of food and compares them directly with the previous prices. These include costs caused by over-fertilization, loss of biodiversity, and greenhouse gases.

The news was quickly picked up by the media. For example, the Süddeutsche Zeitung reports on the pilot project of the discounter in Berlin Spandau, where a so-called sustainability market has been opened. There, a second price is displayed next to the regular sales price on the supermarket shelf. According to the retailer, this is based on the “true costs”, on the calculation of the “True-Cost-Approach”, explains Stefan Magel, manager of the Rewe Group, to which Penny belongs.

Meat would be three times as expensive

For consumers, the newly calculated prices are probably not very pleasing. Normal minced meat, for example, would be almost three times as expensive, organic minced meat would be more than double. A liter of simple H-milk would be 1.75 euros instead of just 79 cents. Organic fresh milk would then cost 1.84 euros instead of the previous 1.09 euros.

“True” Prices at Penny as Anchor Price Strategy

Pricing expert Prof. Dr. Hans-Christian Riekhof from UNICconsult with expertise in retail sees this first attempt of its kind in retail as an anchor price strategy. “Our Pricing Newsletter readers know, why anchor prices should be set and how they work in the consumer’s psyche. Nothing else is the attempt by Penny from a psychological point of view to display the true costs of food on the shelf. These true costs include all ecological damages not included in the shelf price – economists would speak of external effects.”

Whether this type of anchor prices will work for consumers will show, says Riekhof. That politicians see a need for action here is probably rather unlikely. In any case, one can only congratulate Stefan Magel on this concept – a courageous step.

To the article in the SZ:
https://www.sueddeutsche.de/wirtschaft/einzelhandel-fleisch-dreimal-so-teuer-1.5017005

More about anchor prices and their psychological effect on consumers:
https://www.unicconsult.com/pricing-newsletter-no-27-2019-was-sind-ankerpreise/

Photo:
StockSnap, pixabay.com

Connectivity services must be better integrated into the customer’s ecosystem

Robert Stolt
Robert Stolt, Senior Manager in the New Mobility division, Porsche Consulting

As part of the empirical study “Customer Insights: Connected Car Services in Germany”, which Prof. Dr. Hans Christian Riekhof and Marc Scholz conducted for the Private University of Göttingen, the following interview with Robert Stolt was created. Stolt has been a Senior Manager in the New Mobility division of Porsche Consulting for five years. Both privately and in his professional life, he deals with topics related to New Mobility (Mobility Services, Electromobility, Connected Car, Autonomous Driving). The answers and opinions expressed in this interview represent his own point of view and not that of Porsche AG or Porsche Consulting.

Professor Riekhof: What importance do you attach to connectivity services compared to other new topics in the automotive industry, such as electrification, mobility services, autonomous driving?

Robert Stolt: From my point of view, connectivity services are primarily assigned the importance of being an enabler for topics such as mobility services and autonomous driving. In this context, connectivity represents part of the components along the technological development.

Nevertheless, connectivity services can deliver added value for the customer through the possibility of individualization. Connectivity services can thus both drive new topic areas in the field of mobility and be an independent business area.

Professor Riekhof: What technological trends will further promote the topic of connectivity in the future?

Robert Stolt: I think that strong technological drivers in the connectivity environment will be services to extend vehicle functions via over-the-air updates on the one hand. And on the other hand, vehicle-to-everything (V2X) communication. In the future, communication with the charging station will also be important due to electrification.

Professor Riekhof: What measures do you think could be taken to further promote the spread of connectivity services?

Robert Stolt: To further promote the spread of connectivity services, it requires a simplification of the use of Connected Car Services and an accelerated integration of the services into the vehicle ecosystem. Likewise, the handling of Connected Car Services can be improved by voice control in the vehicle.

This function greatly simplifies the usability of the services. Likewise, connectivity services must be better integrated into the customer’s ecosystem. Ultimately, online training or “how-to-use” videos from the manufacturer or the sales consultant in the car dealership could also be a way to support customers in dealing with the services or in activation.

Professor Riekhof: How important do you think future collaborations with third-party providers, such as streaming providers or payment service providers, will be in the context of vehicle connectivity?

Robert Stolt: I think that collaborations with third-party providers can be helpful in order to keep the focus on one’s own core competencies in the sense of Connect Services. However, own services should also be offered that have added value for the customer in relation to the own brand. In this context, Porsche, for example, offers the Porsche Track Precision App to promote brand loyalty of customers through Connect Services.

Professor Riekhof: Our study shows that almost a third of respondents are not willing to pay for Connected Car Services. Are you considering models of flexible pricing or on-demand pricing to increase acceptance for Connected Car Services?

Robert Stolt: At Porsche, a free usage period for the Connect Services is included for the customer at the beginning. After this usage period has expired, the Connect Services are offered at fixed package prices.

Professor Riekhof: Do you see different needs regarding the Connectivity Services for fleet customers and private customers?

Robert Stolt: Yes. Fleet customers usually place greater value on connectivity services that can lead to more efficiency or transparency of the total cost of ownership, while private customers also request infotainment services in addition to safety features.

Professor Riekhof: According to our study, there is great trust in the premium manufacturers in the use of data from the Connectivity Services, Apple is in 4th place ahead of other European manufacturers. Facebook and Google are clearly lagging behind. How do you assess this result?

Robert Stolt: Apple differs from Facebook and Google in that they invest heavily in the perception as a data protection technically secure company. This image and the external impact of Apple is very positively perceived by customers, especially in Europe.

In the future, data protection features will be in even greater demand, which will make Apple’s lead over the other internet companies even more relevant. In general, Connectivity Services should primarily offer added value from the customer’s point of view – e.g. when using the vehicle, and no data should be sold to other companies.

Photos: Robert Stolt, UnicConsult

Further links:
More on the study “Customer Insights: Connected Car Services in Germany” (Riekhof/Scholz, published 2020)

Current Study on Connectivity Services in Vehicles: High Potential for Connected Car Services

With the now published empirical study “Customer Insights: Connected Car Services in Germany”, the PFH Private University of Göttingen examined the relevance of connectivity services in vehicles from a customer perspective. This is one of the first studies to analyze the currently available connectivity services in the vehicle from the customer’s perspective. The focus of the study by Prof. Dr. Hans-Christian Riekhof and Marc Scholz was the question of which currently available and which future conceivable connectivity services offer a particularly high relevance and can thus further increase the acceptance of these connectivity services.

Majority sees high potential for connectivity services in vehicles

An important finding in advance: The study confirms that a large majority of respondents see great potential in the connectivity of vehicles. The study thus underlines the increasing importance of such services for both customers and the automotive industry.

The following topics are at the center of the study:

  • Statements on the relevance of currently available and future Connected Car Services
  • Insights into the development and perspectives of these services
  • Insights into specific influencing factors such as willingness to pay, handling of data and acceptance of these services.

Read/download study as pdf

Next Pricing Seminar on 01./02. October 2020 – only a few spots left!

Too often, price is associated solely with price reductions. However, using price as a strategic lever for more value creation requires a long-term concept.

In this practice-oriented pricing seminar, you will get to know the building blocks of a long-term pricing strategy, learn to check pricing processes, learn to perfect price communication and introduce effective price controlling.

Current announcement: Only a few spots are left for this seminar.

Another date: on 3./4. December 2020

For more information, visit:
www.unicconsult.com/pricing-seminar/

Cult Brand Jägermeister: “People drink less but better”

Gunar Splanemann
Gunar Splanemann, Head of Global Innovation and Design, Mast-Jägermeister SE

Until the end of the nineties, the well-known herbal liqueur was consumed exclusively as a lean bitter by a target group of 55plus. Falling sales figures forced Jägermeister to take action. Since the spectacular relaunch of the brand, which also opened up new young target groups into the party and club scene, things have been going steeply uphill with the deer that adorns the logo.

In late November 2019, Professor Hans-Christian Riekhof invited Gunar Splanemann, Head of Global Innovation and Design at Jägermeister, to a workshop for marketing students at PFH Göttingen. Under the title “People drink less but better”, Splanemann, Riekhof and the students discussed the question of whether there will be a re-evaluation of alcohol consumption against the background of current societal trends. How do you deal with people drinking less, but differently and often simply better? The following interview was a direct result of the exciting discussions.

Prof. Riekhof: Jägermeister is active globally. There, consumer behavior differs considerably. How does a medium-sized company deal with this challenge?

Gunar Splanemann: Ultimately, there is no way around localizing and adapting innovation strategies for certain regions of the world. Generally speaking, Jägermeister stands for ice-cold shots and hedonistic nights in large or smaller groups. However, the rituals, contexts and taste preferences in the regions of this world are different. The maturity of a market also plays a decisive role. From our point of view, it makes no sense to introduce new Jägermeister products into a market if the core brand is not yet established. We have therefore only introduced our latest innovations Cold Brew Coffee and Scharf in relevant markets. For example, Cold Brew in the USA and UK, because the topic is established there.

Increased health awareness affects the market segments of the cult brand Jägermeister

Prof. Riekhof: You call it the “Killer Bet”: the bet on future consumer behavior. What do you expect in terms of your target group’s handling of alcohol, partying, exuberance?

Gunar Splanemann: We assume that the general changes in consumer behavior, namely a stronger differentiation of target groups, a stronger health consciousness, a pronounced ecological sensitivity and a generally more demanding consumer behavior will also have a lasting impact in our market segments.

Responsible handling of alcohol can be very well combined with the desire for moderation, exuberance, cheerfulness, living in the here and now, enjoying the moment, joie de vivre, but also with responsibility. This must and will be expressed in the Jägermeister brand.

Prof. Riekhof: You cooperate with trendy clubs in Berlin. What is the idea behind this? Is there a long-term agenda, or is it more of a trial and experimentation?

Gunar Splanemann: We have always been closely connected with nightlife and its protagonists. We get a feel for relevant currents, ideas and inspirations from this network. We have to be where our customers are. We need to know how the core target group ticks and how they party.

Together with insiders and designers, we develop concepts for the nightlife of tomorrow. The range extends from new drink recipes, ideas for new products to new service ideas around the night.

How the cult brand Jägermeister reaches new target groups

Prof. Riekhof: The Jägermeister motto is “For the best nights of your life.” What specific associations do you want to evoke with this statement, and how do you visualize this motto, what kind of imagery is called for?

Gunar Splanemann: Our brand is an integral part of nightlife. We believe that nightlife is and should remain an essential, creative free space. Our brand is a commitment to this lifestyle, in addition to the iconic and high-quality product. A lifestyle that is urban, open, tolerant and just for the special nights.

Prof. Riekhof: The classic Jägermeister product has not really changed in recent decades, but there are now a number of very remarkable line extensions. What do Jägermeister Manifest and Jägermeister Cold Brew, two of the most important new products, stand for?

Gunar Splanemann: Jägermeister Manifest clearly has a premium claim and therefore clearly distinguishes itself from the classic Jägermeister in terms of design and positioning. This allows us to reach new target groups, but we also have the chance to grow with the existing target groups, to continue to accompany them and thus to take into account a gradually changing lifestyle.

Cold Brew Coffee, on the other hand, offers the classic herbal character of Jägermeister and rounds it off with a very well harmonizing coffee and cocoa note. This creates a whole new world of experience, which is particularly relevant for the US and UK markets, as the cold-brew principle is very well established there.

Developing Jägermeister as a premium brand and thinking differently

Prof. Riekhof: One of the customer insights that could influence the future orientation of Jägermeister is the realization “Consumers drink less but better”. This results in the task of further developing Jägermeister towards a premium brand. Where do you see the most important levers to achieve this in the medium term?

Gunar Splanemann: The levers are the same ones we generally apply in marketing for positioning. Fortunately, we have a very high-quality product, a huge fan base, and an icon as a brand. This allows us to work very well and create authentic communication to meet the ongoing trend of premiumization in a relevant way.

This is helped by our product know-how, our herbal expertise, and not least the Jägermeister attitude of doing things differently than others. The additional value and the added value for our fans thus comes from a very solid basis and a unique approach. As a result, the brand grows, gains new target groups and remains – and this is particularly important to us – true to its core.

Prof. Riekhof: Many cult brands are moving towards creating something like a Mecca of the brand, a kind of pilgrimage site where people meet to experience the brand, to experience it, to deal with it. Are there similar considerations at Jägermeister?

Gunar Splanemann: Yes, there are considerations. But it would be too early to reveal more about this at this point. Just this much: it will be a great experience!

Prof. Riekhof: Thank you very much for the interview!

Photo and photo detail: Mast-Jägermeister SE

More information about Jägermeister:
www.jagermeister.com/de-DE

Locandis and InnoGreen Introduce Indoor Navigation Based on LED Lights

Innovation in in-store navigation: Searching for products in hardware or supermarkets can be very tedious. The ideal solution: enter the desired item into a search field on the app on your smartphone and conveniently navigate to it. The corresponding digital technology has already been impressively implemented by the company locandis and is constantly being developed. App-based digital customer cards with integrated product search and in-store navigation.

Practically free of charge for hardware stores

Until now, the technical effort for a comprehensive infrastructure of the necessary beacons was relatively high, explains Stefan Brinkhoff, CTO of locandis. With a now closed strategic partnership between locandis and InnoGreen, an innovative LED light manufacturer based in Heppenheim, significant relief is now available. Both companies have now presented a prototype in which these small Bluetooth transmitters are installed in InnoGreen’s LED lights. Some of the advantages: the additional effort for the installation of the beacons is eliminated, the power supply of the beacons is ensured via the lighting, very low maintenance effort. This means that a hardware store can be equipped for in-store navigation practically free of charge, says InnoGreen Managing Director Olaf Tieben. “In August of this year, we will present a first hardware store where the new system is installed.”

Effective: Combine in-store navigation with location-based marketing

From a business and marketing perspective, in-store navigation is attractive. Especially for retailers with complex assortments and areas from approx. 3000 sqm. locandis customer projects demonstrate the resulting additional sales with more relaxed, longer staying customers. “We expect that the locandis in-store navigation based on InnoGreen lights will pay for itself and be self-supporting from the second year onwards”, says Dr. Hans-Christian Riekhof. The CEO of locandis also points to the lucrative combination of in-store navigation with location-based marketing campaigns: “This is an important revenue driver that further improves the business balance sheet.”

Links:

Here you can learn more about the topic of Location Based Marketing

Studies on the topic:
Location-based Marketing: The willingness to pay for push messages on the customer’s smartphone
The use of traditional and digital customer cards in retail, system catering and tourism