Car Shoppers Pay for Fun, Not Safety
When it comes to what consumers value more, entertainment sells better than safety.
"A stereo system is an easier sell than a lane departure warning system or collision mitigation system, especially after people learn what the cost of those systems will be," said Mike Marshall, director of automotive emerging technologies for J.D. Power and Associates.
J.D. Power just released a study measuring consumer familiarity, interest and purchase intent for emerging technologies in cars.
"For the last few years, we've found the appeal of non-safety entertainment features on the rise and the attraction of safety features on the decline," Marshall said. "More and more the vehicle has become an extension of your life, and whatever you do outside the vehicle now must be done inside the vehicle."
And that means entertainment.
He noted, for example, that entertainment is so popular that 80% of those surveyed would be willing to pay $1,000 for a surround sound system for their cars, even though the average aftermarket price for such a system is only $500.
The study did find that a couple of safety features merited a "definitely interested" reaction among consumers: run-flat tires (26%) and airbags (22%). Any consideration above 20 percent was considered high.
But when it came to fancier safety items, the numbers fell. Lane departure warning systems only interested 9%, collision mitigation systems that warned of an impending impact and applied brakes to reduce the force of impact interested only 14%, and blind spot detection systems only appealed to 18%.
Entertainment systems did have their limits, with only 19% interested in a rear-seat DVD entertainment screen for the kids — when they found out it cost $1,500.
More people wanted keyless entry (20%), premium sound systems (23%), heated/cooled seats (23%) or a navigation system (28%) than any of those life-saving safety systems.
Years ago, when antilock brakes were first introduced to help reduce accidents, when given a choice between spending $500 on ABS or $500 on a premium sound system, the sound system nearly always won out.
"That hasn't changed a lot. It's still easier to sell a buyer a stereo than a lane departure warning system," Marshall said. "Those who have kids have the highest level of interest in safety systems, but those who don't — young males and females, and especially males — go for the entertainment."
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Because people are just simply thinking that the entertainment equipment will serve them longer than safety equipment does, but tend to ignore the fact that, safety device maybe only used once, but if that saves their lives, it worths more than anything.
I wonder if dealers either know this or have helped steer customers this way. When we bought our recent HHR side curtain airbags were a $300 option which I would have gladly paid for. Not one of them on the lot had this option. They had higher end models with XM and six disc changers which I had no interest in buying but I would have gladly paid for the side curtain air bag upgrade.
What I find funny is that, on safety options - which could possible save the vehicle occupants' lives, people are reluctant to pay for them. Whereas on these "fun" options - which usually are the primary reason to cause an accident and have the occupants killed (when, say, watching DVD in car, playing with the GPS, or adjusting volume on the customized stereo systems, etc.), people are willing to pay top $$$ for them (and to have them killed)!
Unfortunately, safety equipments are tough sells, 'coz consumers have already expected them to be standard. Furthermore, consumers can SEE or FEEL these equipments at any time! ANY TIME! How could the sales sell a safety option when there's essentially no way for the sales or the consumers to test it any time? Unless, of 'coz someone in this planet will allow the consumers to test drive the combo of ABS + traction contol + airbags + crumple zones + ... by intentionally allowing the test drivers to slam into sthg during the test drive. :)
Now you can see why it's much easier to sell "fun" options...
Sorry...typo.
"Consumers can't SEE or FEEL..."