August 22, 2005


Consumers like price of premium surround sound systems and HD radio – J.D. Power and Associates

Westlake Village, California – Premium surround sound systems and high-definition (HD) radio are highly attractive features consumers would like to see in their new vehicles based on their estimated market prices, and consumers prefer to pay a one-time fee over a monthly subscription for satellite radio, according to the J.D. Power and Associates 2005 U.S. Automotive Emerging Technologies Study released last week.

The study measures consumer familiarity, interest and purchase intent for emerging automotive technologies both before and after an estimated market value is revealed. While consumer interest in new technologies typically drops after a price point is revealed, relative interest in premium surround sound and HD radio actually improves dramatically after the market price is provided. Premium surround sound, which ranks sixth in consumer interest before the price is revealed, moves to second after consumers learn its market price U.S.($400). With a realistic market price of just U.S.$150, the HD radio-compatible receiver jumps from 16th in initial interest to third after pricing is revealed.

Consumers still express more interest in satellite radio than HD radio prior to the introduction of price, but interest falls below HD radio at the realistic market price of U.S.$12.95 per month for satellite radio. The study shows that more consumers are willing to pay a one-time fee as opposed to paying monthly for the service.

The 2005 U.S. Automotive Emerging Technologies Study is based on responses from more than 17,000 U.S. consumers. The study is designed to measure consumer familiarity, interest and purchase intent for emerging automotive technologies.

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