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Senior Couples Leading the Way with In-Car Navigation

By Dan Ness, Principal Analyst, MetaFacts, May 27, 2005

 

Maybe they tried to ask for directions, or maybe they didn’t, but married active seniors appear to have been lost often enough and badly enough that they’re willing to pay money to avoid repeating the experience—because on average they are more than twice as likely to own or be planning to buy an in-car navigation system than other Americans. Younger folks, however, are not totally lost (ahem) to the technology.
 

Current in-car navigation systems marry GPS receivers with online map displays to show where the car is at a given moment. Then, anyone with basic map-reading skills can more easily find their way to their destination, whether it is day or night. MetaFacts, Inc., was able to identify this surprise market segment and gauge the market potential of this latest automotive accessory by analyzing responses to questionnaires from its large-scale Technology User Profile survey.
 

Married active seniors are 213 percent of the national average in their usage or near-term purchase intent for an in-car GPS. Older empty-nesters (or the single-income-no-kids crowd) are the next most likely, being won over to the technology at a rate that’s 153 percent higher than average.
 
Why is this important?
 

The early adopters for new technology aren’t always young, urban hipsters. Any technology marketers that put all their energies in the wrong direction will simply miss the mark. The other side of an old marketing adage goes: when someone finds a need, they’ll fill it. With newly-emerging portable navigation devices (PNDs), consumers that don’t want to wait for Detroit will simply bypass the automakers and get an aftermarket product from their computer store, cellular carrier, or other wireless supplier.
 

It’s not as if the typically-targeted youthful early adopters are out of the picture for in-car GPS. Adoption and interest among younger, affluent singles were 127 percent of the national average. Affluent traditional families were neck and neck with affluent, older singles, rating, respectively, 119 percent and 118 percent. Single parents were not far behind at 112 percent.
 

But keep in mind that while we are talking about a tidy business—3.3 million households that own or plan to soon buy a system—demand for in-car systems remains well short of a tidal wave. Those “you can’t get there from here” jokes are not about to become obsolete. The technology’s comparative popularity among married active seniors still means that only about one in nine are interested. But that’s wildly better than the national average of 5.2 percent—or slightly better than one in 20—who are interested in the technology.
 

The other 95 percent of the market are finding other solutions. They either only drive in familiar territory so know their way, download maps in advance from sites like RandMcNally, Mapquest, or maps.google, or have a notebook or handheld with either a GPS receiver or in-car Internet connection. Alternatively, they simply have a traditional paper map, or when that fails, stop and ask for directions. With the exception of using the last approach or having an in-car Internet connection, the other approaches don’t help much when you change your destination somewhere along the way, or somehow get off course.

 

In-Car GPS: Lifecycle Demographic Segments With Above-Average Usage or Purchase Plans
 

 

Households Within Segment That Use or Plan to Acquire In-Car GPS

Index:

Percent of National Average

Married Active Seniors

11.1%

213

Affluent Empty Nesters/Sinks, Older

7.9%

153

Affluent Singles/Unmarried, Younger

6.6%

127

Affluent Traditional Families

6.2%

119

Affluent Singles/Unmarried, Older

6.1%

118

Single Parents

5.8%

112

National average

5.2%

 


Source: MetaFacts/TRG Telematics Profile Report - April 2005,
 and MetaFacts Lifecycle Profile Report – May 2005

Meanwhile, while married active seniors lead the way, being old in and of itself does not appear sufficient to trigger interest for in-car GPS—the demographic classification that displayed the least interest in the technology were the single heads of households who were at least 75 years old. With an interest rate of 2.4 percent, they were less than half the average. Nor does having a spouse along to nag you cause the interest to skyrocket—married heads of households who were at least 75 years old had nearly the same score, at 2.5 percent. Single active seniors were also comparative holdouts, at 3.3 percent. Evidently, the “married active” in “married active seniors” is the key—both husband and wife like to get out and travel, and have mutually decided that an in-car GPS is a worthwhile investment to enhance their travel experience.
 

Other notable holdouts were low to middle income older singles, and both young and older low-to-middle income empty nesters. Presumably, they travel only for business. Both working parents and low-to-middle income traditional families also fell below average in their interest in in-car GPS—presumably, they have family members to assume the chore of reading a paper map, or leaving the car to enter a diner and ask for directions. DINKs (double income no kids) were slightly below average. Perhaps, with no children to pack along, they can afford to fly to their destinations.
 

Looking ahead, as cell phones and other technologies emerge to challenge satellite-based GPS as the locational technology, consumers will have a wider range of options. This will put pressure on automakers to move more quickly, lest aftermarket wireless solutions pass them by. Senior couple pioneers that navigated the way will in turn be followed by younger early adopters, just as early cell phone adopters enjoyed not needing to find a pay telephone and bypassed the laggards.

 

PDF Document

For a PDF copy of this web page including the Table of Contents for the complete TUPdate, please follow this link.

 

Source Data

TUPdate Special Analysis:    
Clients of the MetaFacts/TRG Telematics Profile Report or the MetaFacts Lifecycle Profile Report can obtain the following Special Analysis information at no additional charge by contacting MetaFacts. If you are not a current subscriber to these profile reports, and wish to obtain the TUPdate Special Analysis, please follow this links to the right.
 

TUPdate
Package

TUPdate
Individual Tables

Lifecycle Segments Using or Planning to Buy In-Car GPS

Lifecycle Segments Using In-Car GPS
Lifecycle Segments Planning to Buy In-Car GPS
 

Other Resources

Profile Reports:    
Telematics Profile Report
Clients of the MetaFacts/TRG Telematics Profile Report can refer to the following sections of the report for more information. To order the Telematics Profile Report select one of the links to the right.

1.2 Telematics Survey Summary
6.0 Navigation System Survey Results
6.1 Navigation System Usage
Table 6.1 In-Vehicle Navigation System Summary
Table 6.2 Navigation System Use Trends
Table 6.3 Navigation System Use Versus Household IncomeTable 6.4 Navigation System Buying Intentions Versus Household Income
Table 6.5 Navigation System Demographics: 2004
Table 6.6 Other Navigation System Demographics: 2004
Table 6.7 Navigation System Buying Intentions
Table 6.8 Navigation System Versus Handheld GPS Devices
Table 6.9 Navigation System Relationships
Table 9.11 USA Infotainment System Estimates

Lifecycles Profile Report
Clients of the MetaFacts Lifecycles Profile Report can refer to the following sections of the report for more information. To order the Lifecycles Profile Report select one of the links to the right.

Consumer Electronics Used
Consumer Electronics Plan to Buy
 


Telematics
Profile
Report
(single copy)

Telematics
Profile
Report
(enterprise)


Lifecycles
Profile
Report
(single copy)


Lifecycles
Profile
Report
(enterprise)
Technology User Profile Annual Editions:    
Current Technology User Profile subscribers may be interested in the following links with related, more detailed or updated information.

Lifecycle (Households/Adults-Home/Family)
TUP 2004 Annual Edition (Excel)
TUP 2004 Annual Edition (pdf)

Consumer Electronics Used (Home/Family)
TUP 2004 Annual Edition (Excel)

TUP 2004 Annual Edition (pdf)
 

Consumer Electronics Plan to Buy (Home/Family)
TUP 2004 Annual Edition (Excel)
TUP 2004 Annual Edition (pdf)
   
   
Press Releases:    

A recent related press release from MetaFacts and TRG:

New Jersey Passes New York and Massachusetts in Car Technology -- According to Research from MetaFacts and TRG -- Telematics Profile Report 
   
   
 

Other Related Information

More information about subscribing to related research results can be obtained by contacting MetaFacts, TRG-Telematics Research Group, or by following these links:

Technology User Profile Full Edition – BrochureContact MetaFacts Sales

Technology User Profile – Profile Reports – Brochure Currently Available Profile Reports
 

Background & Methodology

Factual, decision-making information like this is only found in one place, the Technology User Profile from MetaFacts. The Technology User Profile market research information service is based on extensive primary research selected and balanced to represent the American population - including technology users and non-technology users. Drawn from more than 30,000 surveys per year reporting on over 250 questions, it is the longest-running, most comprehensive total market technology study available. TUPdates are brief summaries of information contained in the Technology User Profile.
 

Usage Guidelines

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