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Web Magazine Development & Electronics reports on Connected Car Services Study
The increasing importance of connectivity services in vehicles was recently a topic in the web magazine E&E (Development and Electronics, issue of 14.09.2020). “Whether accident and breakdown management, traffic sign recognition or the health monitoring of the driver: Connected-Car-Services are supposed to further increase the comfort and safety in the vehicle.” The subject of the topic-specific report is the study “Connected Car Services in Germany” by Prof. Hans-Christian Riekhof, which he conducted with Marc Scholz in spring 2020 for the PFH Private University of Göttingen.
“For car manufacturers, it is of very high importance to find out about the willingness to pay for Connected-Car-Services,” explains Hans-Christian Riekhof. “After all, various manufacturers have stated that their business model will change significantly in the coming years and that they no longer want to sell motor vehicles alone, but increasingly see themselves as mobility service providers.”
The study “Connected-Car-Services in Germany” was conducted from March 2 to 31, 2020 and is based on a quantitative data collection in the form of a standardized questionnaire. A total of 543 people completed the online questionnaire.
Links on the topic:
The detailed report in the web magazine E&E:
https://www.industr.com/de/fahrer-autos-datensicherheit-gefahr-2533748?utm_source=clipping&utm_campaign=2533613
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
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
Pricing Expert Prof. Riekhof on Individualized Rates in Car Insurance
Individualized pricing is on the agenda of many companies, theoretically leading to the optimal exploitation of customers’ willingness to pay. In practice, however, this is not so easy to implement. All the more remarkable are the attempts by insurers to individually reflect personal driving behavior and the associated insurance risks with telematics tariffs (see the report in the Handelsblatt by Christian Schnell on 30.1.18). With these tariffs, insurers measure the driving style of their customers – how fast they drive, accelerate and brake. Up to 40 percent discount should be possible if you are willing to have your driving style digitally recorded.
The future of pricing?
Do we have to expect that prices will generally be further individualized in the future? “Yes and no”, says pricing expert Prof. Dr. Hans-Christian Riekhof from UNICconsult Strategy Development. “The increasing digital availability of relevant data makes it easier on the one hand to calculate the ‘optimal’ price based on algorithms. The other side of the coin is the acceptance of this type of price determination by the customer.” Anyone who may even have the unfounded feeling of being “taken for a ride” prefers providers who promise simple and transparent prices. “Let’s wait and see how the consumer will react. Some innovations need some time to really establish themselves in the market”, concludes Prof. Riekhof.
To the article in the Handelsblatt
Photo: www.pixabay.com
