Echo Booming – Baby You Can Drive My Zipcar

by Dan Sherman

I have friends in Atlanta, New York City, Los Angeles, and even Durham, NC who are Zipcar members.  Despite having an eager 2006 Mazdaspeed6 hibernating in my driveway back home on Long Island, my parents insist that I instead use Zipcar at school.  Why is ZipCar so popular?  And is its strategy of infiltrating colleges around the country creating brand loyalists for life?  My network of 20-somethings provided insight.

My Emory friends are Zipcar members because Atlanta stinks.  Let me clarify—Atlanta stinks without a car.  Students who can afford a car and all the associated costs (driving/shipping it to Atlanta, insurance, gas, maintenance, and astronomical $654 on campus parking) do so in a heartbeat.  However, car sharing best serves the needs of the stereotypical car-less, cash-strapped college student who wonders, “How am I supposed to get food and alcohol?” With a $50/year charge for membership and around $10/hour car pricing, Zipcar has a low initial cost which entices students who drive sporadically or can’t afford having a car full-time.

So why doesn’t everyone have a Zipcar? For one, car sharing completely destroys the element of spontaneity associated with owning a vehicle.  Daily dialogues between my roommates and me go something like this: “Yo, I’m starving, let’s get some Chipotle for lunch. OH WAIT, the Zipcar’s booked until 8 o’clock.  Guess we’re not eating ‘til dinner!”

Zipcar advertises itself as “green” to no end.  I asked a cadre of Gen Yers whether the environmental aspect makes them more positively inclined toward car sharing.  Their response was that the only “green” factor that moved them had dead Presidents on it.

The appeal of Zipcar will most likely continue after my peers graduate and move to cities like New York City, Chicago and Boston.  Even those that anticipate being able to afford a car of their own will likely stick with Zipcar to reduce the expense and hassle of owning a car in the city.  As an added bonus for those from outside the country, a US state license is not required for Zipcar membership.

So it is cool, convenient, and inexpensive but how will they grow?  Will the Echo Boomers continue to use Zipcar even after they leave the cities and move into suburbia?  Probably not, but as long as it continues to communicate a hip image in college towns and large cities, it should maintain its position as the leader in automotive timeshare.

Filed under: Automotive, Echo Booming, Market Research , Automotive, Car Sharing, Cars, Echo Boomers, Gen Y, ZipCar

LGBT Ford Owners in the U.S.

In March of 2009, we conducted the first comprehensive study of the LGBT Automotive owner in the U.S. We received a total of 4,920 responses to the survey and the database compiled from the responses includes information on social media usage, media consumption and psychographics in addition to vehicle ownership and basic demographics.

Our initial report focused on LGBT new car buyers in the U.S. and gave a broad overview of that sub-segment of the market. This is the second of three Brand Snapshots that focuses on all LGBT vehicle owners in the U.S. (n=3,402)

To view and download the .pdf of the Ford Brand Snapshot, click HERE (a new window will open).

To view and download the .pdf of the Toyota Brand Snapshot, click HERE (a new window will open).

To learn more about the study or inquire about upcoming brand snapshots, email us at info@sorgenfreillc.com

Filed under: Automotive, Market Research

LGBT Toyota Owners in the U.S.

In March of 2009, we conducted the first comprehensive study of the LGBT Automotive owner in the U.S.  We received 4,920 responses to the survey and the database compiled from the responses includes information on social media usage, media consumption and psychographics in addition to vehicle ownership and basic demographics.  Our initial report focused on LGBT new car buyers in the U.S. and gave a broad overview of that sub-segment of the market.  We will be publishing additional briefs sharing more insights focused around the vehicle brands.  The first “Brand Snapshot” will examine LBGT Toyota owners in the U.S.

To view and download the Brand Snapshot, click HERE

To learn more about the study or inquire about upcoming brand snapshots, email us at info@sorgenfreillc.com

Slide 1

First National Comprehensive LGBT Automotive Owners survey

• Conducted in Spring 2009

•

• 3,402 respondents self-identified as LGBT

•

• 44 automotive brands represented

•

• Weighted Average Age – 34

• Median Age – 45

•

• HHI – 30% over $100K

•

• Gender Identity

• 71% male, 29% female, 1% transgendered

•

• Education – 22% have post graduate degree

•

• Social media usage:

• 71% use Facebook

• 18% use Twitter

Filed under: Advertising, Automotive, Market Research

Haute Hatches – Is the 500 Ready to Wear?

Echo Booming – Haute Hatches

by Dan Sherman

Fiat 500

According to product planners, car salesmen and sales data Americans hate hate HATE hatchbacks.  If that is the case, why do MINIs, VW GTIs, and Mazda3 hatches seem to fly off dealer lots? There seems to be a dichotomy of data so I decided to ask my peers about the new Fiat 500 in this week’s edition of ECHO BOOMING.

When Fiat announced its purchase/partnership of Chrysler, Italian car enthusiasts rejoiced that affordable products from Italia would be making their return to the U.S.A  First batter up is the diminutive, sporty, chic Fiat 500, resembling the legendary 1957-1975 hatchback of the same name.  Introduced in 2007 in Europe, the Fiat 500 has been an hit with strong sales and even the 2009 Word Car Design of the Year. The question is, does it make sense here as a contender among the few successful, stylish and expensive hatchbacks (Haute Hatches)?  We think that like Eddy Murphy, the Fiat 500’s adjustment may be rough when Coming To America.

While I love hot hatches and impatiently wait for an Abarth, my peers are divided.  Many are deeply concerned about hatchback design and safety issues with such a small car, but flashy Gen-Yers love chic, premium cars that come cheap relative to their dream Bimmers.

Based on my unscientific observations, there is a concentration of students at Emory that purchased MINIs and the like, indicating a strong but small design-driven niche from which Fiat will draw its customers. Most young people I quizzed preferred the design of sedans to hatchbacks if given the generic choice of otherwise-identical models.  Surprisingly, girls seem more turned off to hatchbacks than guys.

On the other hand, only a handful of my peers have heard of the contemporary Fiat 500, and very few our age know of the legendary original.  While the VW New Beetle and MINI Cooper effortlessly piggybacked on the reputation of their foremothers, a Fiat 500 is not retro to American youth—which will present a hurdle for the first year or two after introduction.

Ironically, safety is a top priority of Gen Yers, the same people who feel invincible enough to down 15+ tequila shots in one night and lather/rinse/repeat the very next.  Unlike the crowded cities and small streets of Europe, in which the A-segment flaunts its brilliance, United States driving culture is dominated by the interstate.  Upon being shown a picture of a Fiat 500, one of my friends commented, “I think I’d sh*t my pants trying to merge onto I-85.”

When I was car shopping 6 months ago, my parents [irrationally] forbade me to get a VW GTI because they felt there wouldn’t be sufficient cushioning if I got rear-ended—a 5-door version of a C-segment car!  Even if it were crowned a top safety pick by the IIHS and NHTSA, the 2,300- lb supermini may be blacklisted by parents all across the nation.  On the other hand, some parents put a premium on affordability and fuel mileage, as evidenced by kids who drive the Yaris, Versa, and Accent—I could easily see  the Fiat 500 purchased as a compromise between such parents and their status-conscious kids.

It seems that flashiness-concerned Gen Yers who can get over the perceived safety issues will willingly fork over $16-20K for this car.  The big question, though, is whether this car will be sold as a Fiat or a Chrysler.  As the first product in a Chrysler Euro-invasion, my college peers can’t comprehend the 500 alongside huge American 300s. As a Fiat, though, the 500’s evidently European style meshes with the brand—and 20-year olds have no idea that FIAT stands for “Fix It Again, Tony.”  In the latter case, I predict a niche much like the MINI’s but with fewer sales and little profit.  It will likely build a strong premium brand image for Fiat, allowing the introduction of premium B-, C-, and D-segment cash cows.

Fiat 500 Interior

Filed under: Automotive, Echo Booming, Market Research

Optimizing Paid Search Advertising

Internet search engines, once a foreign idea, are integral to the daily lives of an increasing number of people the United States. For the consumer, they help manage the massive amounts of information available online and for business owners, they provide a measurable medium to target online consumers. When utilizing search engines, consumers rely not only on the search results displayed but also the sponsored links that surround the organic results. Generally, these ads are directly related to the search performed and can be a more effective means for the consumer to find what they are looking for.

For the business owner, these ads are an opportunity to supplement their Search Engine Optimization (SEO) strategy with Search Engine Marketing (SEM)/paid search advertising. Whereas SEO includes a multitude of factors and page ranking isn’t guaranteed, with paid placement, the message and links are placed based on a bidding system and it affords the business owner more control and the ability to be more granular in their targeting.

When done properly, paid placement ads deliver an active consumer directly to the product or information that they are inquiring about rather than to a generic home page. This “deep‐linking” saves the consumer time and increases the opportunity for the business owner to convert them into a paying customer.

This paper examines which companies are adept at delivering not only quantity but also quality of pay‐per‐click ads around searches for used vehicles in the U.S. We examined ads that were displayed when looking for the top 10 used cars in 10 markets. A total of 87 companies produced 992 ads of varying degrees of relationship to the searches.

To read the rest of the report, download the white paper HERE.

Filed under: Automotive, Market Research, Used Car Advertising , Paid Search Advertising, Research, Used Car Research

Tracking your Twitter marketing efforts

Tweeting all day as a marketing activity continues to require the development of great metrics. Although measuring social media marketing activities does not yet have ’solid’ rules compared to traditional marketing strategies, Jennifer points out a couple of ways you should measure the impact and reach of your Twitter activities.

Full article

Filed under: Market Research, Marketing, Social Media , Brand Engagement, Marketing Metrics, ROI measurement, Social Media, Twitter

Crowdsourcing your way to generate insightful customer feedback

Like tweeting, blogging and social networking, crowdsourcing is another offshoot of all the user-generated phenomenon evolving on the web. It is combining the power of crowds to accomplish a specific objective. A good example of this is Digg, a website where the crowd (users) vote as to which content they want to be featured.

Applying this concept to market research, IdeaScale provides businesses and enterprising organizations a platform to turn their customers into advocates. The site allows companies to build communities which are based on crowdsourcing models. Ideas are posted onto the IdeaScale portal, where fellow user can vote and make comments. This creates an environment where ideas are both expanded and measured by the community.

The service allows effective brand engagement, immediate feedback and a very client focused approach to understanding your market.

Check out their website

Filed under: Crowdsourcing, Customer Service, Market Research , Brand Engagement, Customer Feedback, Online Focus Groups

Enhancing customer’s experience in their own words

Customer experience can be a cornerstone when differentiating a business. As companies around the globe witness the continuous integration of markets across countries and continents, enterprises generate value by creating customer service experiences that are both multilingual and multicultural. As Anand Subramaniam, VP of Worldwide Marketing at eGains Communications Corporation puts its, multilingual, multicultural customer experiences (MMCE) are “delivered in the business and regulatory context of local markets and tailored to the language and culture of the customer”.

Anand gives a step-by-step approach as to how companies can determine their needs for MMCE and ideas to implement it in a customer contact center environment.

Full article

Filed under: Market Research, Marketing , Customer Experience, Customer Service, Differentiation, Marketing, MMCE

Commentary on wsj.com about air travel: charge for total weight

This article prompted a fair amount of commentary about the travails of air travel. One in particular caught our attention:

Charge passengers a fare that is based on the sum of their weight as well as the weight of their luggage:
Fare = $/lb. x (passenger weight + luggage weight)

Why should my 100 lb wife have to pay extra for taking 25 lbs of luggage while the 250 lb person who checks no luggage have no extra fee. In effect, the light are subsidizing the heavy. — Adam Brenner

We hope to hear from our airlines friends and clients on why that may or may not work – besides the obvious that charging based on a human condition probably is not PC.

Filed under: Information, Market Research , Airlines, Consumers, ideas, Obesity, Travel

Having a baby saves you money?

No, babies are still frighteningly expensive, however according to a recent study by psychologists in Scotland, pretending to be a proud parent of a new-born can save you money and possibly even your identity!

40 wallets with a picture of a baby inside were planted around the streets of Edinburgh and a surprising 88 per cent of these were returned to the “owners”. Doctor Wiseman who led the study said that the photograph of a baby “kicked off a caring feeling in people”. Wallets were also planted with pictures of a puppies, families and elderly couples – apparently the “caring feeling” isn’t as affective when we see these images as the return rate was 53, 48 and 28 per cent respectively. 

The wallets used in this study contained no money whatsoever. At the risk of sounding cynical, it would be interesting to run the study again with a few hundred dollars in each wallet!

Full article

Filed under: Market Research , Money, Psychology, Science