car2go consumer typology
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Final report for Advertising, Sustainability and Conscientious Consumers Fall 2010TRANSCRIPT
Car2go Consumer Typology Understanding the Consumers of Austin’s Premier Carsharing Program
ADV 385 Fall 2010
Helen Chen
Jennifer Feng Megan Turner Erica Weaver
1 Car2go Consumers
Fall 2010
EXECUTIVE SUMMARY The revolutionary carsharing service, car2go, was first introduced to the city of Austin, Texas in November of 2009 through a negotiated lease agreement between the city and the program’s owner, Daimler AG. Since its debut, residents and visitors of Austin have been seeing blue and white Smart Cars taking over the streets of downtown and program membership has experienced exceptional growth due to the benefits it offers its customers, primarily convenience, environmental responsibility, and innovativeness. Through our primary research, which included observation sessions, personal interviews, projective techniques, and ethnographies, we wished to determine the motivations and the defining characteristics of the consumers who participate in this local carsharing program and to discover how they differ from other general consumers.
Through conducting various primary research techniques, we were able to gain a more thorough understanding of car2go users and what type of consumers they represent in the marketplace. Specifically, we found that a majority of car2go users participate in the service primarily for convenience factors, with several of our respondents privately-‐owning a vehicle and just using car2go when heading downtown, whether it be for business or personal reasons. We notably found that in many cases, environmental responsibility tends to be a secondary motivating factor for many car2go members. Although we found that there are some users who use car2go solely for environmental reasons, convenience tended to be the primary mediating factors dictating these carsharing members decision making. This is significant because several previous studies have concluded that environmental consciousness more important than convenience for a majority of North America carsharing members. Finally, we also found that price and curiosity are other important motivating factors for several car2go users. In this report, we first offer a background of previous literature findings on carsharing and carsharing consumers, as well as a brief history of car2go in Austin. Second, we explain in more detail the research techniques we conducted in order to learn more about car2go users and their consumption habits. We then proceed to offer our interpretation of our collected research data, our key findings, and the implications these insights have for marketing and advertising practitioners. Our advertising and marketing recommendations focus on the several motivations we found dictating car2go members’ decision to participate in the program. Although environment and price can be included in the marketing executions, we conclude that the best approach for marketers who wish to appeal to this niche segment is to primarily stress the convenience of the service and how it a viable, attractive, and innovative option for the relatively young population that resides in Austin.
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CONTENTS EXECUTIVE SUMMARY .................................................... 1
CONTENTS ...................................................................... 2
BACKGROUND LITERATURE REVIEW .............................. 3
The Rise Of Carsharing In North America ....................... 3
CARSHARING CONSUMERS ............................................. 5
Consumer Demographics and Psychographics ............... 5
Consumer Motivations .................................................... 5
Geographic Markets ....................................................... 6
Summary of Carsharing Consumers ................................ 6
CAR2GO: A SUSTAINABLE MOBILITY SOLUTION ............. 7
RESEARCH METHODS ..................................................... 8
DATA INTERPRETATION .................................................. 9
VALS ................................................................................ 9
Diffusion of Innovation Model ........................................ 9
Motivations ..................................................................... 9
IMPLICATIONS .............................................................. 13
Other Appealing Products/Services for Car2go Consumers 14
CONCLUSION ................................................................ 15
REFERENCES .................................................................. 16
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BACKGROUND LITERATURE REVIEW
The Rise Of Carsharing In North America Transportation is often considered a fundamental cornerstone of any successful economy and this fact is most evident in the exceptionally high rates of auto ownership worldwide and particularly throughout North America. In 2001, 92% of U.S. households owned at least one vehicle and over 60% of households owned two or more vehicles. ). However, with nearly 75% of North Americans residing in urban metropolitan areas, many individuals do not drive their vehicles enough to justify the expenses and hassles that come with owning a car, yet they still need a vehicle for occasional use. Thus, with auto ownership and fuel costs rising, as well as the influence of the recent economic recession and the ever increasingly environmental concerns, people are seeking alternatives to private vehicle ownership. One alternative to privately-‐owned vehicles that has received increasingly attention in recent years are “carsharing” programs, which offer individuals a sustainable and innovative personal mobility solution by providing them with an alternative mode of transportation without the costs associated with car ownership on an as-‐need basis. Carsharing is “a mode of transport where vehicles are owned by a separate firm or an organization and shared amongst a number of people throughout the day” (Zhao, 2010). According to a recent industry report, although carsharing has appeared in numerous different forms throughout North America, these programs share a majority of the following features: “(1) An organized group of participants; (2) one or more shared vehicles; (3) a decentralized network of parking locations (“pods”) stationed close to homes, workplaces and/or transit stations; (4) usage booked in advance; (5) rentals for short time periods (increments of one hour or less); and (6) self-‐accessing vehicles” (Millard-‐Ball, Murray, Schure, Fox, & Burkhardt, 2005). Individuals gain access to vehicles by joining a carsharing organization that maintains a fleet of cars in a network of locations for short-‐term hourly or daily use. Carsharing organizations provide numerous benefits both to consumers and communities, from both a social, economic and environmental perspective. An increasing body of empirical evidence supports that one of the most significant effects of carsharing is its ability to reduce auto ownership, which in turn creates a ripple effect, with further benefits being delivered to consumers and transportation systems (Shaheen et al., 2010). Some of the most documented benefits and advantages of Carsharing programs are outlined below in greater detail: • Reduction of privately owned vehicles: By providing members access to a vehicle for occasional use,
carsharing enables households to give up their privately-‐owned car or a second vehicle. Several studies have found that between 23-‐32% of carsharing participants sold a personal vehicle after joining a carsharing program, and even more members have postponed or entirely avoided a car purchase (29-‐68%) (Millard-‐Ball et al., 2005; Shaheen et al., 2005; Shaheen et al., 2010). Additionally, research from Frost & Sullivan estimates that in 2009, each shared vehicle replaced 15 personally owned vehicles on the roads (Zhao, 2010).
• Less traveling, traffic/congestion, and more available parking: Because carsharing reduces the
numbers of vehicles owned by carsharing members, a ripple effect occurs with carsharing contributing to less traffic and congestion. Furthermore, several recent studies have found average car-‐use and distance traveled by carsharing members to decrease, further reducing congestion (Briceno, Peters, Solli, & Hertwich, 2005). Research from Frost & Sullivan (2010) estimates that, on average, carsharing members drove 31% less than when they owned a personal vehicle. Because
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costs are directly proportional to the amount driven by members in carsharing programs, individuals have a stronger financial incentive to drive less than if they solely relied on their privately owned vehicles for transportation. Furthermore, reduced vehicle ownership leads to increased parking availability and less need for new parking, which facilitates more efficient land use and costs savings (Millard-‐Ball et al., 2005).
• Reduction of gas emissions due to fewer vehicles: Car-‐sharing lowers greenhouse gas (GHG)
emissions both through reducing vehicle travel, and through the use of newer, more fuel-‐efficient vehicles (e.g. Hybrids). Transportation is a major contributor of carbon dioxide (CO2) and other GHG emissions, accounting for approximately 27% of total anthropogenic emissions in the U.S. and 14% globally (Shaheen et al., 2010). Because carsharing reduces the number of vehicles on the road and lowers overall vehicle distance traveled, research from Frost & Sullivan estimating that these two factors translate into 482,170 fewer tons of CO2 emissions being let out into the atmosphere, as trips are shifted to public transit, biking, and walking. On a similar note, carsharing members also report a higher degree of environmental awareness after joining a carsharing program (Shaheen et al., 2010; Zhao, 2010).
• Cost-‐savings, less hassle, and more convenience for consumers: Carsharing provides its members
with the benefits of private cars without the costs and responsibilities of ownership (Zhao, 2010). Frost & Sullivan (2010) research shows that “an average car owner who drives 12,000 miles a year at an average driving speed of 30 miles per hour can save US$ 1,834 by shifting to a carsharing service.” Commuters who drive less than 12,000 miles annually can save more even more, which makes carsharing a very attractive option for people living in the city or for college students..
• Increased transit use, mobility, and connectivity among transportation modes: By reducing vehicle
travel, carsharing also contributes to an increase in the use of public transportation and other transport modes, such as biking and walking, in substitution of car travel. Car-‐sharing also allows people without a car, as well as lower-‐income market segments, get to new places. (Millard-‐Ball et al., 2005).
According to Martin, Shaheen, and Lidicker (2010), not only has carsharing changed the transportation landscape of metropolitan regions across the continent, but the carsharing industry has grown significantly over the last decade and shows greater potential for further growth in the imminent future. Between 2007 and 2009, carsharing membership rose by 117% in North America (Zhao, 2010). With approximately 600,000 individuals today belong to carsharing organizations worldwide, as of the beginning of 2010, 27 U.S. carsharing programs have claimed 388,089 members who share approximately 7,588 vehicles (Shaheen et al., 2010). This growing trend is predicted to continue over the next five to 10 years with carsharing membership expected to reach 4.4 million in North America and 5.5 million in Europe by 2016 (Frost & Sullivan, 2010; Zhao, 2010). To summarize, carsharing programs build a promising case for sustainable consumption programs by motivating a more efficient use of cars and other transportation means. Not only do carsharing
Figure 1: The Growth of Carsharing Membership and Total Shared Vehicles (North America & Europe), 2009 -‐ 2016
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programs “induce less driving, increased use of public transport, walking and biking, and increase savings in transport budgets,” but they also “serve as learning systems for consumers to engage in common-‐use of consumption goods, which encourages more sustainable consumption” (Briceno et al., 2005). Consequetly, carsharing has a strong influence on consumer’s transportation behavior patterns, both on making car use more sustainable and improving the accessibility and efficiency of use of different transportation mixes (Briceno et al., 2005).
CARSHARING CONSUMERS Carsharing tends to have more success in serving specific demographic groups in particular geographic areas. To indentify and understand what common points draw people to carsharing, recent industry studies have analyzed existing carsharing users by demographic characteristics, shared attitudes about environmental and social concerns, and motivations and behaviors pertaining to how members use carsharing services. Equipped with this knowledge, marketers can then better communicate with these niche segments and position the carsharing service specifically tailored to their unique characteristics and needs.
Consumer Demographics and Psychographics Several studies have found that carsharing is most attractive to a relatively narrow age bracket, generally ranging between the ages of 25 and 45 (Briceno et al., 2005; Brook, 2004; Hope, 2001; Jensen, 2001; Lane, 2004; Millard-‐Ball et al., 2005; Robert, 2000). Consensus of previous literature also concludes that medium or higher than average incomes are the norm for a majority of carsharing members, although this varies depending on the particular program and its geographic location(do we provide consensus above?)( (Brook, 2004, Millard-‐Ball et al., 2005;? Robert, 2000). Besides age bracket and income levels, a high level of education (upper-‐level college or post-‐graduate) is another defining characteristic of a majority carsharing members in North America (Brook, 1999, 2004). Survey results from Millard-‐Ball et al. (2005) found that 35% of carsharing participants have a Bachelor’s degree and 48% have some post-‐graduate work or an advanced degree. Additional, unique characteristic of many carsharing members that have been identified by previous studies are that members tend to hold strong views about a variety of environmental and social concerns. Based on survey results obtained by Millard-‐Ball et al. (2005) on carsharing members, nearly 90% of respondents indicated that they believe it is their personal responsibility to help create a better, more sustainable world and that they are very concerned about environmental issues. The carsharing participants of the study also stated that they consider themselves to be innovators and experimenters who enjoy trying out new ideas and technologies (Millard-‐Ball et al., 2005). The same study also found that a majority of carsharing members (82%) tend to be cost sensitive then those who do not participate in carsharing and that they also tend to be much more aware their automotive and travel costs. Finally, the study also indicated that very few carsharing members derive a strong sense of status from their cars with only 17% of respondents stating that they feel as if the car they drive is an important reflection of their personality. To summarize, besides being highly involved and interested in various environmental and social issues, many carsharing members tend to be open to innovation, more cost-‐sensitive than other consumers, and they do consider the car they drive to be a reflection of their personality or status.
Consumer Motivations Previous studies have found that there are multiple economic, environmental and convenience factors the influence whether or not someone joins a carsharing program. According to Lane (2004),
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convenience was the most important reason cited for joining (41%), followed by affordability (20%), personal freedom (16%), environmental friendliness (10%), fewer hassles (6%) and improved productivity (2%). Whereas lower-‐income members were more likely to cite affordability and personal freedom, higher-‐income individuals were more likely to cite convenience. A survey conducted by Jensen (2001) also found that there was a mix of environmental, economic and practical factors for why an individual participated in carsharing, with 92% of participants citing their main reason was due to their concern for the environment. Millard-‐Ball et al. (2005) found that the primary reasons for people carsharing was that it eliminated the hassles of owning a car (21.8%), that they liked the carsharing philosophy (19.1%) and having another mobility option (15.5%), and that it based on the costs associated with owning a vehicle (14.5%). Other attractive features identified by the study included that it was easy to use, they did not have to ask other people for rides, and that there were no parking hassles (Millard-‐Ball et al., 2005).
Geographic Markets In terms of location, carsharing is overwhelmingly concentrated in metropolitan cores with around 95% of carsharing members living in such settings (Millard-‐Ball et al., 2005). Because carsharing is intended to serve as an alternative to privately owning a car, carsharing programs only makes sense as part of a wider transportation system and in areas where transit, walking and cycling are viable options. As such, a highly concentrated and dense population, equipped with a viable pedestrian environment and a mix of transportation help carsharing programs succeed. However, some studies argue that the most important factor determining the success of a carsharing program appears to be the ability to live without a car or with just one vehicle.
Summary of Carsharing Consumers Based on the majority of literature concerning carsharing, personal values and world views seem to play an important role among carsharing participants, with almost all carsharing members being highly concerned about environmental and social issues, as well as being more concerned with the functionality of a vehicle, rather than how it looks, its brand name, or how it reflects their personality or status (Martin et al., 2010; Millard-‐Ball et al., 2005). To summarize, the consensus of previous studies indicate that the typical carsharing member is likely to be those who are: • Residents of dense urban areas • Highly concerned about environmental and social issues • Highly educated • Middle to upper income, but still cost-‐sensitive • Not high-‐mileage drivers • Considered to be innovators • From smaller households, of two or less persons • More concerned with what a vehicle can be used for, less concerned with how it looks or its brand
name attributes • Generally in their 30s or 40s, although this varies by location and other service attributes Furthermore, the five most important factors motivating individuals to join a carsharing program that have been identified by previous studies are as follows: (1) A desire to save money; (2) Concern about environmental issues; (3) Convenience and not having to deal with auto maintenance; (4) Changes in one’s personal life situation; and (5)Work-‐related conditions. As such, some of the best predictors of carsharing membership are considered to be the desire to save money, concern about environmental issues, and the convenience of not owning a car or multiple cars.
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CAR2GO: A SUSTAINABLE MOBILITY SOLUTION In November 2009, the German car manufacturer, Daimler AG, launched its own first international carsharing program in Austin, Texas, after the tremendous success they experienced with the program earlier in the year in Ulm, Germany. Daimler’s privately-‐owned carsharing subsidiary, car2go, has since revolutionized urban transportation in Austin by offering an extensive fleet of environment-‐friendly Smart ForTwo vehicles for rent (Daimler, 2010a). Dedicated to working to improve the quality of life in rapidly growing cities, Daimler’s car2go program received the EPA’s Tenth Annual Clean Air Excellence Awards in early 2010, at which time the company’s president, Nicholas Cole, addressed how car2go provides Austin with a solid solution to urban mobility issues:
“Car2go provides a transportation solution that is not only affordable and reliable, but makes significant progress toward addressing the challenges of urban growth and mobility by providing an environmentally friendly alternative to private vehicle ownership. It complements public transportation by closing the gaps commonly associated with public transit commuting” (Daimler, 2010d).
In light of increasing gas and oil prices, higher traffic volumes in urban areas, and the growing need for individual mobility, Daimler devised car2go as a tailor-‐made response to the issues raised by today’s urban mobility, in effect launching an innovative mobility concept that provides a future-‐oriented answer to the evolving mobility needs of consumers worldwide (Daimler, 2008). The principal behind car2go go is innovative, simple and straightforward: “When you want a car, you just take it, and when you’ve finished with the car, you just leave it” (Taylor, 2009). The ability to spontaneously rent a car2go vehicle without having to specify one’s intended destination provides consumers with convenience and flexibility when it comes to their transportation behaviors. After use, the car2go vehicle can then be returned to any unoccupied car2go public parking space within the area of operation. Adding to its convenience, refueling, car maintenance, insurance, and cleaning are all included in the rental price. Used alongside existing public transit, car2go compliments already established public transportation systems by providing “on-‐demand” fuel efficient transportation options for individuals and “serves to substantially reduce emissions and traffic congestion that are common in dense urban cores” (car2go XX, 2010). In the fall of 2009, Austin, Texas became the official headquarters of car2go North America LLC through a joint partnership between Daimler and the City of Austin, based on several well-‐thought out factors. Not only does the U.S. carsharing market have the highest growth rates in the world, but one of the main reasons Austin was chosen because of the growing city’s positive attitude and wide acceptance towards welcoming a sustainable solution to its increasing mobility and congestion issues. As the State of Texas’ capital and its fourth-‐largest city, Austin is home to nearly 750,000 residents in the metropolis, with a total of 1.7 million citizens living in the greater Austin area (car2go, 2009b). With car2go’s ability to facilitate an innovative transportation solution that helps in easing congestion and reducing CO2 emissions, the carsharing program has been considered an integral tactic towards helping the city reach their objective of becoming one of the best-‐managed cities in the U.S. When the first phase of Austin’s car2go program initiated in November, 2009, the carsharing system was the largest of its kind in the nation (Daimler, 2010a), at which time the car manufacturer provided Austin with 200 Smart ForTwo vehicles restricted to use only by about 13,000 city employees and their relatives. In May 2010, car2go extended their partnership and lease arrangement with the City of Austin in May 2010and opened up the service to all public residents in Austin (Daimler, 2009b, 2010a; Garr, 2010). After one year since the program’s Austin debut, as of November 2010, car2go has attracted over
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15,000 registered members and has provided over 100,000 rental trips that have resulted in over 300,000 driven (Daimler, 2010a, 2010b). Further noteworthy, with 50% of car2go’s members being between the ages of 18-‐35 years old, the service has experienced tremendous success with the city’s younger than average demographic market (Austin Business Journal, 2010).
RESEARCH METHODS In order to truly immerse ourselves into the lives of people who use car2go, we conducted four primary research t techniques, each offering a unique perspective and insights as to who uses the Austin carsharing service. A brief overview of our research methods is outlined below: Observation: Observation sessions were conducted in three different places in order to understand the purposes and the way in which consumers use car2go. Furthermore, we were also able to observe and analysis how non-‐car2go drivers pedestrian reacted to seeing a car2go vehicle. The three observations locations/sessions are listed as following: • Driving around the downtown Austin area to observe where users parked the cars and to which
locations users tend to arrive or depart from when using the vehicles. • Following drivers around the University of Texas campus. • Observing pedestrians around downtown Austin and the car2go home office, observing how they
react to seeing car2gos being driven around the area. Interview: Eight in-‐depth interviews were conducted to reveal the demographics, attitudes, values, perceptions, motivations, and consumptions patterns of car2go drivers. We also were interested in ascertaining how car2go users differ from other general consumers and whether or not a main reason for them to use car2go was due to environmental concerns or if there are other primary mediating factors. Transcripts and recordings of our interviews can be found in the appendix. Zmet: Four projective z-‐met sessions were conducted through the course of the project. The topic of “what car2go represents to them” was assigned to our participants, who were then asked to go through magazines and clip out images they thought depicted their relationship with car2go. We then asked them to explain their photo selections in hopes of uncovering some of the more subconscious factors influencing their car2go use. Such information obtained from the Z-‐mets is valuable in that is provides a strong links between the interviewees’ words and deeds. The collages completed by participants, as well as our analysis, can also be found in the appendix of this report. Netnography: Yelp, Twitter, Facebook were viewed carefully; furthermore, comments under the online news and online forum discussions was recorded and analyzed. Netnography is auxiliary to observations, interviews and zmets, and it also provided with some aspects that were not observed and mentioned before.
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DATA INTERPRETATION
VALS The purpose of the VALS™ survey is to identify the VALS type of the person, that is, to find out about a person's product ownership, media preferences, hobbies, additional demographics, or attitudes. Here we notice there are two types of consumers of Car2go, they use the car out of green conscious and curiosity. We categorize those care about the environment are 'Innovators'. Innovators are successful, sophisticated, take-‐charge people with high self-‐esteem. Because they have such abundant resources, they exhibit all three primary motivations in varying degrees. They are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services. The other types of consumers who follow new ideas are categorized as 'Experiencers.’ Experiencers are motivated by self-‐expression. Young, enthusiastic, and impulsive consumers, Experiencers quickly become enthusiastic about new possibilities but are equally quick to cool. They seek variety and excitement, savoring the new, the offbeat, and the risky. Their energy finds an outlet in exercise, sports, outdoor recreation, and social activities.
Diffusion of Innovation Model The technology adoption lifecycle model describes the adoption or acceptance of a new product or innovation, according to the demographic and psychological characteristics of defined adopter groups. The process of adoption over time is typically illustrated as a classical normal distribution or bell curve. The model indicates that the first group of people to use a new product is called Innovators, followed by Early Adopters. Next come the early and late majority, and the last group to eventually adopt a product are called laggards. So far the consumers of Car2go are Innovators who tend to be more educated and prosperous, with a greater tolerance for risk. To spread out the information to appeal to Early adopters and Early Majority is important to enlarge its market.
Motivations Through our research, we have determined four main motivations car2go consumers use the carsharing service. The first and the key reason is based out of convenience. The majority of our interviewees mentioned using car2go for its convenience factor. Convenience can be broken down into five subcategories: convenience over public transportation, convenience over their own car, convenience when going downtown, convenience of returning the car, and convenience in running errands.
Figure 2: VALS Market Segmentation Model
Figure 3: Diffusion of Innovation Model-‐ Categories of Innovativeness
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The first part of the key convenience motivation is the convenience of car2go over the various forms of public transportation in the Austin area. The main reason for offering the carsharing service in the city of Austin was to help with the various traffic and transportation problems, such as congestion and sometimes unreliable public transportation system. Focusing on public transportation, we found that many of our interviewees found car2go to be more convenient that public transportation, such as the bus and the new limited rail system. For example, one interviewee cited the convenience over the bus in heading to social functions such as bars, clubs, concerts, etc.
"I think it’s just more convenient then taking the bus ‘cause that is one thing. I’ve always pretty much lived or mainly take it downtown and I always have pretty much lived near buses that go downtown, but it’s just so much more convenient to use a car2go. There’s not as much of a wait time as long as there’s one close by that’s available (Ryan Fuhrmann interview)."
An online poster stated that he enjoyed using car2go. He uses it to go to work, parks the car there at his work, and then takes bus home. By using it to get to work,he prevents himself from having to catch the bus during rush hour.
"As a resident of Austin, I'm inclined to disagree with the existing comments. Not only is the Smart Fortwo rather fun to drive, but it's incredibly useful for trips that aren't feasible on the bus-‐-‐ either due to an area having limited routes due to lack of sprawl, or routes that take an hour or more to travel a distance of 5 miles.”
“I ride the bus to work every morning, but there are times when I want to get down to 5th street for a haircut without taking too much time off of work. Or I need to do a grocery run-‐-‐ I don't buy in bulk, but my average trip definitely results in too many bags to carry onto a bus.” The second aspect of convenience for car2go consumers to use the service is the convenience of using the service over their own car. Using a Car2go is more affordable than owning a car, and with nearly 75% of North Americans residing in urban metropolitan areas, many individuals do not drive their vehicles enough to justify the expenses and hassles that come with owning a car. However, they still need a vehicle for occasional use. Thus, with auto ownership and fuel costs rising, people are seeking alternatives to private vehicle ownership. Car2go is considered more convenient than the user's own car at times, especially when parking space is limited. Several interviewees stated just that.
"Because smart cars are small and compact, you can pretty much park it anywhere. Like city of Austin, sometimes it is very useful, especially around campus; parking spots can be much at demand, so it’s definitely more convenient.”
"It’s just hard to find parking and let alone parking that you or I would feel comfortable leaving my car overnight. So that has a lot to do with it because I know that car2go if you find a spot, you can just leave it there and you’re no longer responsible for the car as long as you park it legally.” Users are also able to save money on gasoline and maintenance fee by using car2go instead of their own car.
"I think the mere presence of Car2Go -‐-‐ you see the little things zipping around everywhere -‐-‐ encourages car-‐dependent Texans to think more about how they get from place to place, and consider alternatives to spending large chunks of their salaries maintaining a personal vehicle.”
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The third aspect of convenience is the convenience of using the carsharing service to go downtown. Car2go has designated assigned spots located around the city for car2go users to park in hopes of never having to search for a spot to park as well as being a free space for parking. Many of our interviewees find it difficult to find parking when they head downtown on the weekend and more especially when there is a concert, performance, or festivals. When the downtown area is busy, users first look for the designated car2go parking spaces or as a last resort they will try to squeeze the car into a small space.
"But you just return the car anywhere on the street where it is legal where you don’t need a special permit and you don’t even pay for the parking meter so people are aware of that (Jennifer Chiang, interview)."
"Mainly when I use it, I’m usually going to go either to Sixth street or to go to a bar somewhere. I’ll take a car2go and get a cab on the way back that way. I think it’s cheaper to use the car2go or usually it is. That way I only have to pay a cab for one way instead of both ways.” Another aspect of convenience for car2go is users is in the act of returning the car after they are finished using the car. Users are not required to return the car to a specific location. So, when they reach their final destination, they can leave the car where ever they can find a public parking space where they will not be towed.
"I know that car2go if you find a spot, you can just leave it there and you’re no longer responsible for the car as long as you park it legally.” The last aspect of convenience we came across in our research is the convenience when running errands around town. Many users utilize the service simply to run errands either personal or for business, such as grocery shopping, dropping government files off at the Capitol, and going to a medical appointment. They also use it when in a hurry. Due to the unpredictable schedule of buses, they used Car2go when doing something important. One interviewee used it to do job interview.
"(I use car2go for 15 minutes to) go to downtown drop a document to a government agency or somewhere. Several hours would be for doctor appointment, interview or meet with friends.” The second main motivation for car2go consumers is environmental concern. For the majority of our interviewees, this was a secondary motivation to convenience, but there was at least one interviewee that mentioned environmental concern as their main reason. Similar to convenience, there are various aspects of environmental concern that were mentioned in terms of their motivation to use the carsharing service: using less gasoline and reducing carbon footprint. First, we will address the aspect of using less gasoline by driving a more fuel efficient vehicle only when they really need it. Some people that are active online mentioned that they use Car2go as a new way to transport between office and home because it is more eco-‐friendly than using their own car because he left less carbon footprint when using a smart car.
"I feel smart car is better otherwise I will go to Austin Carshare program...although we don’t need to pay for the oil but you are leaving less carbon footprint, you know, less pollution (Jennifer Chiang, interview)." The second aspect of the environmental concern motivation is the general idea of carsharing. One interviewee stated that the Smart car leaves less carbon footprint, and it is the reason why she likes Car2go other than the reason of convenience. The carsharing concept attracts people who care about the pollution caused by automobiles.
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"The Austin Carshare Program has several different type of cars, range from regular to pickup trucks. But Car2go uses smart cars, which are small and compact, you can pretty much park it anywhere...although we don’t need to pay for the oil but you are leaving less carbon footprint, you know, less pollution.” The third motivation noticed in our research is the idea of price and cost of using the service. The price of car2go is less than other rental cars if you just rent for a short time. Although one interviewee did mention that they found the price to be expensive, the rest of respondents perceived it is cheaper and more convenient than taking a cab or using another mode of transportation.
"Yeah, as far as taking a car2go versus a cab, that’s mainly one of the reasons I do use it just because... It probably doesn’t save me a ton of money each time I use one, but I feel like in the long run it is more economical to use a car2go than take cabs everywhere when I’m going out to drink” The final motivation for using the service is based out of pure curiosity. Many mentioned that the style of the Smart car is cute, and it even led to a discussion online about the style as well as those mentioning that they were wanting to try it out of curiosity.
"A lot of times people will give me looks. Like just this past weekend, I was at a redlight and the people next to me kind of gave me this look. And I think part of it too is because I’m a bigger framed guy, and I think people, they kind of look over and see a big guy in this tiny little car. Just kind of like a, I don’t know, like a clown or a bunch of clowns in a tiny little car.” There are several aspects of curiosity that influence users of car2go: the new carsharing system and social influence. In terms of the new system of carsharing, the Car2go program is different from other carsharing program. The easy renting policy, free gasoline and parking for free on the street makes the program attractive. The free membership fee promotion was part of the reason the number of members has increased to 15,000 in the Austin area.
"I sat in a Smart-‐for-‐two at the showroom, I liked it! The seating area was roomier than my Dodge Grand Caravan. I also sat in an AMG SL-‐500 (it was a Mercedes dealership) and it was downright cramped in comparison. In fact, I'd rather drive any smart car than any SL-‐500 supercar simply because the AMGs are so unforgiving. My current car is a Cadillac Eldorado ETC, the Smart is nowhere near as refined but I think it's a good capable people mover. I'd really like to try an Aptera, if/when they ever get into volume production (Terotech, gizmag October 1, 2010)." Another aspect of curiosity comes in the form of social influence. One of our interviewees mentioned she was the TA of a class and her students did a project about car2go. That's how she learned about and became interested in car2go and the idea of carsharing.
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"Yeah, I’ve actually I had quite a few friends that after I told them about it, went and got and became member for car2go... And after they [my friends] experienced it with me, they went and became members.”
“Numerous friends have talked about getting rid of their cars in favor of the program (Adam, gizmag, October 25th, 2010)
IMPLICATIONS We think car2go should develop multiple messages in order to target each consumer motivation. A marketing and advertising strategy should be developed to attract consumers who have a single motivation or consumers with multiple motivations. For example, for the majority of our interviewees that were motivated by convenience, they also had a secondary motivation in eco-‐friendliness that provided an additional positive motivational factor. Also for those that use the service based on convenience, price is often a factor as well. They find that car2go is cheaper than a cab and more convenient than a bus. However, with those that are primarily environmentally conscious, price is not a determining factor. With this information, advertisers are able to target each motivation differently and understand which ones can be combined to reach more people and extend the the service by recruiting new members. Since the majority of car2go users are between 18 and 30 years of age, it is important to reach potential and current car2go users in the university area as well as downtown Austin. With the University of Texas at Austin located at the center of the service area, the 18-‐24 demographic is one that cannot be ignored. This young demographic also requires using media that is non-‐traditional or social in nature because they spend much of their time at work or in social situations and the majority are a member of a social network. Even though Austin is an emerging technological city, not all users own a smart phone and like texting services to gain information on the go. After reviewing some of car2go's current advertising tactics, we found that many of them hit on the convenience motivation, but very few ads have been placed around Austin that people can recall. The majority of our interviewees heard about the service through word-‐of-‐mouth. We believe that advertising to car2go users and potential members should be done at times when it is most convenient. For example, outdoor ads at the bus stop or downtown when they are in social situations and cannot find a place to park. This is where providing information on how easy to find a car nearby and how the system works once they register. Based on the environmental motivation, it is important to keep in mind that these users seek information before making a purchase decision. They want to know the environmental benefits, such as the miles per gallon, how they are reducing the number of cars on the road in order to reduce emissions, as well as social benefits such as reducing traffic in Austin. Advertising to the very green conscious consumer means providing the car2read website in advertisements, which contains all the information and benefits about the service. With the less green-‐conscious consumers, car2go should tap into what they think is its biggest advantage first (from our interviews, it's convenience), and then mention being eco-‐friendly as well. Car2go can also capitalize on social media opportunities and use it to generate buzzes and also use promotions to keep potential users interested. After our interviews and netnography research, we found that many found the service to be relatively cheap compared to using their own car. However, there were a few that disagree, which leads us to believe that price is subjective. For those who feel car2go is expensive, car2go should stress on other
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benefits, like easier and more places to park, no parking fees and gasoline costs, pay exactly how much time you use it and so on. For those who think car2go is cheap, car2go should emphasis on convenience more, encouraging them to use it regularly while also continuing to emphasize the affordable price, especially when including the money they're are saving long-‐term. Finally is important to keep in mind some implications when it comes to the curiosity motivation of car2go consumers and potential members. Since, people continue to find the Smart car to be interesting and cute, especially since they are seeing the car2go cars all over Austin. So much so that it is now becoming a conversation topic, especially among current users of the service. According to our interviewees, they are quick to tell their friends, family, and coworkers about car2go. They are advocating to use it to head downtown and catch a cab back instead of drinking and driving. The best way to advertise to this motivation is through word-‐of-‐mouth and promotions. Car2go had one big promotion in Oct. 2010 where people can join for free instead of having to pay the usual $35 membership fee. A booth was set up on Guadalupe near the University of Texas campus, but many were unaware of the promotion. This is where advertising based on motivations can be effective such as bus stop ads and ads in the downtown area. The key implication from our research was that car2go cannot focus just on one motivation at a time, but need to reach new and current members through advertising that features multiple motivations, since some are primary and some secondary reasons for using the service.
Other Appealing Products/Services for Car2go Consumers Based on the motivations we discovered through our interviews and ZMET analyses, we have determined some products that would best appeal to the car2go consumers. The first and main motivation for using car2go is convenience. There are many products and services that appeal to the convenience factor. In terms of food, consumers will use services such as meal delivery, where food is delivered to their homes or offices. Pizza delivery, Longhorn Delivery, and Whole Foods bike delivery service are some of the services they will use. Drive-‐thru windows at fast food restaurants are another convenient way these consumers obtain their food. In terms of online, they are highly likely to shop at their favorite stores online, and just return the item if it is the wrong one, doesn't fit, etc. They are also likely to use online banking as a more convenient way to pay bills and check the balance of their accounts. When traveling, these are the people that are more likely to bring a carry-‐on bag instead of checking their luggage, so they are more likely to buy TSA approved travel toiletries and cosmetics. Another motivation is environmental concern. Products that will appeal to this motivation include things like organic food from local farmer's markets or from the local grocery store or organic grocery stores such as Whole Foods or Central Market. Since in many cases this is a secondary reason, these consumers are more likely to use reusable bags at the grocery store and purchase refillable water bottles. For the few with environmental concerns as their main reason, they purchase clothes at vintage stores or secondhand clothing stores. Some even purchase organic clothing. Price is also a major motivation among car2go consumers. Due to price, car2go users are purchasing second hand clothing from stores such as Goodwill, Plato's Closet, and Buffalo Exchange. In terms of groceries, they are likely to shop at general grocery stores such as HEB, Randall's, and sometimes Wal-‐Mart. Curiosity is another motivation for consumers using car2go. So, these consumers are often early adopters and are the first to adopt the newest technology such as BluRay players, 3D TVs, and the iPad.
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CONCLUSION Based on our findings, the majority users of Austin’s car2go program tend to young (under 30), up-‐and-‐coming professionals and students, who all have different motivations for using the carsharing service, and these motivations have significant implications for marketing and advertising practitioners. Among some of the motivating factors we uncovered through our research of car2go users are primarily convenience, environmental concern, price, and curiosity. Although promoting and highlighting each of these motivations in advertising executions may attract new members, we do not believe it is the most effective way for marketers who wish to communicate with these consumers. Rather, we argue multiple executions, uniquely tailored to each of the motivating factors we discovered would be the best approach for marketing communications. It is vital that marketers fully understand that there are multiple influences affecting consumer’s decision to participate in carsharing and that these factors greatly vary in priority amongst the different demographic groups of carsharing members. Whereas the younger car2go members tend to be primarily motivated by convenience, the older users are more influenced by the environmental impact it has on the community. As such, marketers must acknowledge and take into account such discrepancies when crafting their communication messages. As such, we suggest the most effective approach for attracting new car2go members is one that has multiple executions, each tailored to the unique motivating factors we identified through our study. Through this strategy, marketers will be most likely to personally communicate the varying consumer benefits that Austin residents will find most attractive and relative.
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