Consumer preferences and willingness to pay for advanced vehicle technology options and fuel types. (November 2015)

• Record Type: Journal Article
• Authors: Shin, Jungwoo; Bhat, Chandra R.; You, Daehyun; Garikapati, Venu M.; Pendyala, Ram M.
• Is Part Of: Transportation research. Volume 60(2015)
• Page Start: 511
• Page End: 524
• Publication Date: 2015-11
• Subjects: Smart vehicle -- Advanced vehicular technology -- Consumer preference -- Willingness to pay -- Multiple discrete–continuous probit -- Multinomial probit; Transportation -- Periodicals; Transportation -- Technological innovations -- Periodicals; 388.011
• DOI: 10.1016/j.trc.2015.10.003
• Languages: English
• ISSNs: 0968-090X

Abstract

Highlights: Advanced technologies/options and fuel alternatives are increasingly attracting attention. There is a need to examine how consumers value and adopt these technologies/options. A detailed analysis using a sample of South Korean consumers is undertaken. There is considerable consumer preference heterogeneity for smart technology options. Abstract: The automotive industry is witnessing a revolution with the advent of advanced vehicular technologies, smart vehicle options, and fuel alternatives. However, there is very limited research on consumer preferences for such advanced vehicular technologies. The deployment and penetration of advanced vehicular technologies in the marketplace, and planning for possible market adoption scenarios, calls for the collection and analysis of consumer preference data related to these emerging technologies. This study aims to address this need, offering a detailed analysis of consumer preference for alternative fuel types and technology options using data collected in stated choice experiments conducted on a sample of consumers from six metropolitan cities in South Korea. The results indicate that there is considerable heterogeneity in consumer preferences for various smart technology options such as wireless internet, vehicle connectivity, and voice command features, but relatively less heterogeneity in the preference for smart vehicle applications such as real-time traveler information on parking and traffic conditions.