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JD Power: Consumers Will Pay More for Branded Audio Equipment



Source: : J. D. Power and Associates, August 16, 2007
Situation
Consumers who want premium stereo system in next vehicle will pay twice as much for branded system, says new JD Power Survey
Will pay an average of $1K for branded system, double the $500 suggested market price
Study also found safety-related technologies generate high levels of interest
Rear-seat entertainment systems and in-vehicle wireless connectivity, Internet have biggest gaps in interest level between younger and older consumers
Significant Points
JD Power and Associates 2007 US Automotive Emerging Technologies StudySM released last week
60% percent of respondents want stereo system that can play multiple audio formats
50% interested in USB interface at $100 price point
43% interested in iPod interface at $150 price point
Most-desired safety technologies included 2-stage smart airbags, backup assist, and run-flat tires
Says
"It's interesting to note that while interest in premium surround sound is somewhat higher among younger consumers, the feature still garners relatively high interest among consumers of all ages." -- Mike Marshall, director of automotive emerging technologies, J.D. Power and Associates

"Safety-related technologies have traditionally garnered the highest interest levels prior to the introduction of price among consumers, and the same holds true for the 2007 study." -- Marshall

"However, entertainment features are slowly gaining ground in the consumer interest ratings, particularly with features such as navigation systems and premium surround sound garnering high levels of interest from consumers before the price is revealed." -- Marshall