Mobility: What Every Corporation Needs To Know About Consumer Attitudes & Behavior

Bren School Corporate Partners SummitUniversity of California, Santa Barbara

May 12-13, 2005

Paul LeinbergerGlobal Director

NOP WorldOne Park Plaza, Suite 700

Irvine, CA 92614pleinberger@nopworld.com

Personal Values

Consumer Attitudes

Consumer Behavior

80

75

75

70

67

63

63

61

61

60

Honesty

Protecting The Family

Freedom

Health & Fitness

Friendship

Stable Personal Relationships

Justice

Enjoying Life

Knowledge

Self-Esteem

Theme for 2005: Focus Shifts to Family, and Freedom

A New Identity Forming% of Americans 13-65 saying value is extremely or very important to them

Theme for 2005: Focus Shifts to Family, and Freedom

A New Identity Forming% of Americans 13-65 saying value is extremely or very important to them

2005 Roper Reports Worldwide Total Population Weighting

‘Dream’ Increasingly Means ‘Choice’% saying “very much” what American Dream Means to them ‘Dream’ Increasingly Means ‘Choice’% saying “very much” what American Dream Means to them

56

57

59

60

63

65

66

67

69

71

75

To do better than parents

To have job you enjoy

To be able to get college education

Ample time for leisure pursuits

Send kids to college

Financially secure retirement

High school education

Rewarding career, family life

Equal chance for everyone

Home you own

Freedom of choice in how live life

Top 11 of 16 items Roper Reports 2004-1

+5

-1

+2

+4

--

-2

--

-3

-4

-3

+6

Point Difference from 2000

Even more true for $75K+: +12 from total public

Relations with Foreign Countries And Terrorism Tops List of Concerns

% who say they are personally concerned about the following Pt. Diff. From 2002 2001

+3

-8

-4

+8-3+3-2

-1

-2

-2

-

-2

+1

+17

9

12

18

19

20

21

21

21

23

24

25

25

28

Alcoholism

Fuel/Energy shortage

Pollution air/water

Quality of public education

Drug Abuse

Inflation/high prices

Way courts are run

Way young people think/act

Wrong doing by government officials

Money to live right/pay bills

Recession/Unemployment

Crime

Terrorism

Relations w/Foreign Countries +14

N/A

-8

+11-4--

-1

-7

-6

-4

-9

-12

48

48

48

48

51

51

51

51

52

55

Running out of landfill space

Industrial accidents

Water pollution

Nuclear power plant accidents

Abandoned hazardous waste sites

Contamination of drinking water

Destruction of rainforests

Outdoor pollution from factories

Outdoor pollution from auto exhaust

Destruction of Ozone

Top Environmental Concerns% who say the following is a very serious environmental problem… Pt. Diff. From

2002 2001

-6

-4

-4

-4

-3

-

+1

-8

-3

-

-6

-10

-10

-2

-7

-3

-1

-15

-6

+1

Fewer Americans Are Educating Themselves About The EnvironmentFewer Americans Are Educating Themselves About The Environment

52%sometimes/often read an article, watch a television show, or use some other

resource to seek out information about the

environment

-9 points from 2002

-15 points from 2001

Less Interest or Less Publicity = Decline in Environmental KnowledgeLess Interest or Less Publicity = Decline in Environmental Knowledge

% who respond how much they know environmental issues and problems

Don't know1%

Only a little41%

A fair amount35%

A lot7%

Practically nothing

17%

42%57%+6 points

since 2002

-6 points since 2002

Time and Money: Obstacles for Environmental ParticipationTime and Money: Obstacles for Environmental Participation

% who say following are a major or something of a reason for not doing more about the environment

Environmentally safe alternatives are too expensive

I’m so busy I don’t get around to making the changes in my lifestyle which I know I should

I don’t believe products which are labeled environmentally safe are any safer than others

The government is not addressing environmental problems and they should have to solve them

Environmentally safe alternativesdon’t work as well

Others aren’t making sacrificesI can’t solve problems alone

My family wants products that that aren’t environmentally safe but won’t accept alternatives

Large companies are causing the problems & should have to solve them

Americans Lack Trust in Organizations to Achieve Economic and Environmental Balance

% saying listed group they trust the most to achieve a balance between economic development and environmental protection

Pt. Diff.From 2002

+1

-2

+1

-

+16

12

21

21

32

Corporations

Stategovernment

Federalgovernement

Environmentalgroups

Individuals

Hybrids Rank High With InfluentialsHybrids Rank High With Influentials

% saying the following thing is going to be “hot” in 2005

77% Large screen plasma TVs

68% iPod and downloading music

68% Digital video recorder like Tivo

59% Hybrid vehicles

41% Reality TV Shows

37% Low carb diets

Influentialspoint diff. from TP

+4

+8

+3

+10

- 10

- 8

Dec 2004 Roper Reports Outlook Survey

A New, Better Take on AutomobilesDream Car: A Green, Sporty SUVA New, Better Take on AutomobilesDream Car: A Green, Sporty SUV

Influential Women are most likely to say their dream car is…

Reliable (80%, +10 all women)

Safe (72%, +8)

Economical (51%, --)

Green (47%, +26)

Family-oriented (34%, +1)

Sporty (29%, +1)

Powerful (27%, +3)

Luxurious (25%, +4)

They’re most likely to say it’s an SUV (31%, +9)or a four-door sedan (26%, -8)

4 in 10 Influentials are interested in buying a hybrid

(vs. 1 in 4 of total public)

Roper Reports 2004-3 and April 2004 RR Automotive surveys

Hybrids Reach New Heights Hybrids Reach New Heights % who say they have heard of the following engine or vehicle types

74 76 7477

9489 90

9389

85 8489

69 67

73

82

45 46 47

54

44 45 46

5247

57

2002 2003 2004 2005

Gasoline powered internalcombustion engineDiesel engine

Electric vehicle

Hybrid vehicle*

Bi-fuel engine**

Fuel cell

Hydrogen powered engine

* Hybrid vehicle: a combination of gasoline engine and electric motor** Bi-fuel engine: operates on gasoline and natural gas

2005-04 Q5

Hybrids Are Closing The GapHybrids Are Closing The Gap% who say they are interested in buying the following engines or vehicle types in the next four or five years

* Hybrid vehicle: a combination of gasoline engine and electric motor** Bi-fuel engine: operates on gasoline and natural gas

7 pts.

2005-04 Q6

50

5552 53

22

1316

2124

18 16

22

35

25

35

46

26

1518

2622

18 19222226

2002 2003 2004 2005

Gasoline powered internalcombustion engines

Diesel engine

Electric vehicle

Hybrid vehicle*

Bi-fuel engine**

Fuel cell

Hydrogen powered engine

West Chooses Hybrid Over Gasoline PoweredWest Chooses Hybrid Over Gasoline Powered% who say they are interested in buying the following engines or vehicle types in the next four or five years

A.I.*Nort

h

East

Mid-West

South West

62% 42% 61% 55% 54% 61% 39%

46 45 48 37 41 51 49

22 23 23 18 18 24 28

27 14 29 22 19 22 19

31 18 24 25 24 26 28

26 25 30 25 21 30 24

25 17 23 17 26 25 19

Gasoline powered engine

Hybrid vehicle

Electric vehicle

Diesel engine

Hydrogen powered engine

Bi-fuel engine

Fuel cell

2005-04 Q6 * Automotive Influentials

0.0

0.5

1.0

1.5

2.0

2.5

2001 QTR

4

2002 QTR

1

2002 QTR

2

2002 QTR

3

2002 QTR

4

2003 QTR

1

2003 QTR

2

2003 QTR

3

2003 QTR

4

2004 QTR

1

2004 QTR

2

2004 QTR

3

2004 QTR

4

2005 QTR

1

% of Light Vehicle Industry Intentions

SIERRAHYBRID

SILVERADOHYBRID

ACCORDHYBRID

INSIGHT

ESCAPEHYBRID

CIVIC HYBRID

PRIUS

Pruis Hybrid Demand Twice The Rate Of Sales (Among 1 Year Intenders, Q4 2001 to Q1 2005)

Source: AFI Light Vehicle Report

Prius demand peaked in Q3 2004, with demand at 5 times the rate of sales.

Prius demand is currently twice the rate of its sales. And new Prius broadcast advertising started in March

Prius demand peaked in Q3 2004, with demand at 5 times the rate of sales.

Prius demand is currently twice the rate of its sales. And new Prius broadcast advertising started in March

California Leads Hybrid MarketCalifornia Leads Hybrid Market

                                  

      

Source: Green car congress / R.L.Polk & Co.

Hybrid Registrations:up 81% in 2004 compared to 2003 (Total hybrid vehicle registrations: 83,153)

Toyota : 64% market share

Honda: 31% market share

Top 5 in new hybrid registrations 2004 Rank City #

1 Los Angeles 10,399

2 San Francisco 8,051

3 Washington DC 6,473

4 New York 3,779

5 Seattle 2,857

Hybrids Going Mainstream?Hybrids Going Mainstream?

1999 2000 2002 2004 2005 2006

Hybrid Market Expansion

Tax incentivesPurchase motivations

Different designsNew choices

Gas priceFuel economy

Consumer value Auto prices

…etc

% who say how important miles per gallon is to them in automobile they drive

92% American consumers say MPG is extremely or very important (+5 pts. from 2004)

2004 2005

Extremely important 46% 55%

Very important 41 37

Not too important 8 5

Not at all important 5 2

60% Females

61% HHI < $49.9K

Americans Pay More AttentionTo The Gas Gauge Americans Pay More AttentionTo The Gas Gauge

2005-04 Q8

Thank You!

Paul LeinbergerGlobal Director of Market OpportunityNOP WorldOne Park Plaza, Suite 700Irvine, CA 92614pleinberger@nopworld.com