C.J. Driscoll Releases Comprehensive Study on Consumer Interest and Satisfaction with Location-Based Services, Telematics and Vehicle Navigation Systems

NEWS RELEASE
C.J. Driscoll & Associates July 17, 2006

Study Shows a High Level of Satisfaction with GPS Vehicle Navigation Systems and Strong Interest in LBS Applications Among Some Consumer Groups
Palos Verdes Estates, CA – C.J. Driscoll & Associates has released a nationally projectable marketing research study on consumer interest in a wide range of GPS-based applications and wireless services. The study assesses interest and willingness to pay for vehicle-installed and portable navigation systems, traffic information and other telematic services, and location-based services delivered to cell phones. It also quantifies consumer use and satisfaction with navigation systems and telematic services, and provides feedback from early adopters of LBS. In addition, the study assesses consumer opinions regarding location-based advertising and the potential impact of location-based services on privacy.
This study was partially funded by eleven companies, including two Tier 1 cellular carriers, leading automotive manufacturers, GPS navigation system suppliers, digital mapping companies and suppliers of LBS applications and technology.
The new C.J. Driscoll & Associates 2006-07 LBS, Telematics and Navigation Systems Study is based on a nationwide survey of nearly 5,000 U.S. consumers and a series of focus groups in key U.S. metropolitan areas. The large nationwide sample base allows for comparison of interest and willingness to pay for products and services based on a wide range of demographic criteria and other factors, such as gender, age, income, use of cellular phones and cost of household vehicles. This study uniquely enables subscribers to identify those segments of the population most interested in location-based applications.
The following are among the products and services covered in the study:
• Factory-Installed Navigation Systems
• Child Monitoring
• Portable Navigation Systems
• Locating Friends and Family
• Cell Phone Based Navigation Services
• Location-Based Games
• Traffic Information Services
• Sports-Related Applications
• Points of Interest
• Pet Tracking
• Telematic Services (e.g. OnStar)
• Location-Based Advertising
• Satellite Radio
• Mobile Coupons
The 2006-07 LBS, Telematics and Navigation Systems Study included an online nationwide survey of nearly 5,000 consumers, which was conducted using the TNS NFO Online Consumer Panel. The survey sample was balanced to key U.S. Census demographic variables, such as age, gender, household income, and geographic location.
In addition to the nationwide survey, the study also included a series of six focus groups, conducted with consumers in the San Francisco, New York and Chicago metro areas. The focus groups yielded in-depth qualitative information on consumer opinions regarding location-based applications, preferred devices to access these applications, and desired equipment and service features. In addition, the focus groups assessed consumer opinions regarding location-based advertising and the potential impact of location-based services on privacy.
Key findings of the study included the following:
• The majority of consumers favor portable navigation systems over factory-installed systems. While the portable navigation systems market is growing rapidly, prices of the best selling systems are still considerably higher than most consumers will pay.
• Owner satisfaction with both portable and vehicle-installed navigation systems is very high (over 4.0 on a 5-point scale). While many consumers favor portable navigation systems, nearly three-fourths of those who currently own vehicles with installed navigation systems indicated that they would be likely to purchase another factory-installed system in the future.
• Over one-fourth of the motorists surveyed (26%) expressed strong interest in a service that would provide traffic information for their route or vicinity. Interest is particularly strong among those who spend an above average amount of time driving each day and among owners of portable and installed vehicle navigation systems.
• Early adopters of cell phone based navigation services are generally pleased with these services, though satisfaction ratings for these services are not as high as for portable or installed navigation systems.
• The study rates interest of cellular phone users in 22 cellular applications, including text messaging, downloading video clips, watching live TV on cell phones, email and several location-based services. Seven of the 10 top rated applications are location-based services.
Since 1993, C.J. Driscoll & Associates has provided marketing consulting and research services, with emphasis on consumer and commercial markets for GPS-based products and services. C.J. Driscoll & Associates, and affiliated Driscoll-Wolfe, have conducted seven multi-client studies on the U.S. consumer market for GPS-based products and services, which have become the benchmark for authoritative research in this field.

Contact Information

Clem Driscoll

President

C.J. Driscoll & Associates

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