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Transcript of Northern Virginia Vanpool AdVantage Program Product Development Research Study Pulsar Advertising...
Northern Virginia Vanpool AdVantage ProgramProduct Development Research Study
Pulsar Advertising Team Southeastern Institute of Research
June 22, 2004
2The Pulsar Advertising Team Southeastern Institute of Research
Background & Methodology
• A quantitative online research study among those identified by MWCOG, RADCO, VPSI, and PRTC as Vanpool Owners/Operators
• Interviewing conducted April 22 – June 8, 2004• This report based on 111 completed interviews• Maximum statistical error is +/- 8.0%
3The Pulsar Advertising Team Southeastern Institute of Research
Objective
• The overall study objective:– Determine existing vanpool operators’/drivers’ willingness to
participate in the AdVantage Vanpool Program given the requirements associated with participation and the financial incentives offered.
• Specific objectives include:– Gauge awareness and understanding of AdVantage
Vanpool Program – Identify various costs of managing existing vanpools– Assess and rate paperwork/reports associated with
AdVantage Vanpool Program requirements – Identifying the defining characteristics of best prospects for
AdVantage Vanpool Program
Typical Vanpool Characteristics
5The Pulsar Advertising Team Southeastern Institute of Research
Profile Of Respondents & Their Vanpool
• Who Drives the Vanpool:– Respondent: 75%
– Designated Driver: 41%
– Some Other Person: 22%
• Who Owns the Van:– Respondent or Family
Member: 56%
– Leasing Agency: 28%
– Private Party: 9%
– Employer: 1%
– Other: 6%
• Average Age of the Van:– 4 Years
• Average Round Trip Distance:– 92 Miles
• Average Van Seating Capacity:– 13 (including driver)
• Type of Insurance:– Commercial-type: 63%– Family: 20%– Uncertain: 17%
• Van Depreciation:– 44% take depreciation
6The Pulsar Advertising Team Southeastern Institute of Research
Additional Characteristics
• Vanpool Accidents:– 17% have been involved in
an accident in the past 5 years
• Most Travel I-95:– I-95: 81%
– I-66: 13%
– Dulles Toll Road: 3%
– Other: 4%
• Average number currently riding in vanpool:– 11 (including driver)
• Average Monthly Fare:– $120 (per passenger)
• Average Number Receiving Metrocheck vouchers or other employer provided subsidies:– 9 passengers
7The Pulsar Advertising Team Southeastern Institute of Research
Average Vanpool Operating Costs
• Per Month– Lease/cost payment: $ 771
– Fuel: $ 268
– Maintenance: $ 169
– Insurance: $ 164
– Personal Property Tax:
$ 119
– Parking: $ 72
– Parking Subsidy: $ 44
– Cleaning: $ 21
– License Plates: $ 14
– Other Expenses: $ 48
• Per Year– Lease/cost payment: $ 8,056
– Fuel: $ 2758
– Maintenance: $ 1447
– Insurance: $ 1915
– Personal Property Tax: $224
– Parking: $ 640
– Parking Subsidy: $ 434
– Cleaning: $ 217
– License Plates: $ 48
– Other Expenses: $ 543
Vanpool Owners’/Operators’ Overall Interest In Participating In The Vanpool Incentive Program
9The Pulsar Advertising Team Southeastern Institute of Research
65% Would Be Interested In The Program If It Were Available Today
42% Would Be Very Interested
0% 20% 40% 60% 80% 100%
Very Interested (Rating of '5') Rating of '4'Rating of '3' Rating of '2'Not At All Interested (Rating of '1') Don't Know
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?
10The Pulsar Advertising Team Southeastern Institute of Research
VPSI Drivers May Be Slightly More Interested In the Program
0% 20% 40% 60% 80% 100%
VPSI
All Other VanpoolOwners/Operators
Very Interested (Rating of '5') Rating of '4'Rating of '3' Rating of '2'Not At All Interested (Rating of '1') Don't Know
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?
11The Pulsar Advertising Team Southeastern Institute of Research
Realistic Level of Demand: 1 Out of 4Applying A Discount Model To Level of Interests Suggests That The Potential
Market For The Vanpool Incentive Program Could Be As High As 25% Of Those Not Part Of The VPSI Program
34%
25%
0% 20% 40% 60% 80% 100%
VPSI
All OtherOwner/Operators
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?
Demand Discount Model
A more realistic potential for market demand can be obtained by applying a
standard demand forecasting discount model where market potential equals 50% of those
who say they are “Very interested” plus
25% of those who say “somewhat interested” in the
product concept.
Key Finding #1: There Is Great Interest In This Vanpool Incentive Program
Strategic Implication
Proceed With Program Launch – This program Will Work!
The Impact Of The Monthly Subsidy Benefit
14The Pulsar Advertising Team Southeastern Institute of Research
The Longer The Round Trip Distance The Greater The Interest In The Program
Respondents Knew The Greater The Distance Traveled, The Greater The Subsidy
0% 20% 40% 60% 80% 100%
121 Miles orMore
61 - 120 Miles
0 - 60 Miles
Very Interested (Rating of '5') Rating of '4'Rating of '3' Rating of '2'Not At All Interested (Rating of '1') Don't Know
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?
15The Pulsar Advertising Team Southeastern Institute of Research
Overall, The More Subsidy A Vanpool Qualifies For, The More Interested They Are In The Program
Chart reflects ratings of ‘4’ or ‘5’ only
0%
20%
40%
60%
80%
100%
$100 - $130 $160 - $180 $195 - $200 $295 - $325
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?
The Following Two Slides Report On Two Questions About Insurance Subsidies As An
Alternative To Monthly Subsidies.These Two Questions Were Added At The Last
Minute During The Completion Of The Fieldwork. Due To This Timing, Only 17
Respondents Answered These Questions As Part Of The Complete Survey. An Additional 52 Respondents Complied With A Follow-up Email Requesting Their Feedback To The Questions.
17The Pulsar Advertising Team Southeastern Institute of Research
Interest In Insurance Subsidies Versus
Monthly Monetary Subsidies Is Split*
0% 20% 40% 60% 80% 100%
Very Interested (Rating of '5') Rating of '4'Rating of '3' Rating of '2'Not At All Interested (Rating of '1') Don't Know
Q 15a: Contingent on your vanpool having adequate commercial-type insurance, with a minimum liability coverage no less than $2,000,000, how interested would you be in participating in this Vanpool Incentive Program if, rather than receiving a monthly subsidy payment, we were to reduce your insurance burden by sharing up to half of your van’s insurance costs with you?* Data represents only 69 respondents or 62% of the total sample
18The Pulsar Advertising Team Southeastern Institute of Research
VPSI Members Appear To Be Less
Interested In Insurance Assistance*These numbers, however, are not statistically significant due to the small sample size
0% 20% 40% 60% 80% 100%
VPSI
All OtherOwner/Operators
Very Interested (Rating of '5') Rating of '4'Rating of '3' Rating of '2'Not At All Interested (Rating of '1') Don't Know
Q 15a: Contingent on your vanpool having adequate commercial-type insurance, with a minimum liability coverage no less than $2,000,000, how interested would you be in participating in this Vanpool Incentive Program if, rather than receiving a monthly subsidy payment, we were to reduce your insurance burden by sharing up to half of your van’s insurance costs with you?* Data represents only 69 respondents or 62% of the total sample
19The Pulsar Advertising Team Southeastern Institute of Research
Few Would Choose Reduced Insurance Rates Over A Monthly Subsidy*
Though 31% have no preference
No Preference
31% Monthly Subsidy
55%
Reduced Insurance
14%
Q 15b: If you had a choice, which would you prefer to receive, a monthly subsidy (as determined by your van’s size, age, and daily round trip distance) or a reduced rate on your van’s commercial-type insurance?
* Data represents only 69 respondents or 62% of the total sample
20The Pulsar Advertising Team Southeastern Institute of Research
Few Owner/Operators Would Prefer Reduced Insurance
0% 20% 40% 60% 80% 100%
VPSI
All OtherOwner/Operators
Monthly Subsidy Reduced Insurance No Preference
Q 15b: If you had a choice, which would you prefer to receive, a monthly subsidy (as determined by your van’s size, age, and daily round trip distance) or a reduced rate on your van’s commercial-type insurance? * Data represents only 69 respondents or 62% of the total sample
Key Finding #2: The Greater The Subsidy, The Greater The Interest.
Strategic Implication
Look for ways to increase program appeal for those slated to receive a smaller subsidy, i.e. vanpools with older vans that travel shorter distances and carry fewer passengers.
Vanpool Owners’/Operators’ Willingness To Meet The
Requirements Of The Proposed Vanpool AdVantage Program
23The Pulsar Advertising Team Southeastern Institute of Research
Owners/Operators Are Willing To Embrace The Contract Requirements Of The Vanpool Program
But There May Be Some Challenges With Insurance & Contract Requirements
0% 20% 40% 60% 80% 100%
Have Adequate Insurance
Sign A Legal Contract
Limit Personal Van Use
Collect/Submit Reports
Maintain 3-Year History
Maintain Passenger Load
Register with COG
Designate Back-up Driver
Operate Vanpool >= 16 Working Days
Very Willing Somewhat Willing Not Very Willing Not At All Willing Don't Know
Q 13a: How willing are you to: …?
24The Pulsar Advertising Team Southeastern Institute of Research
Most Vanpools Currently Meet the Program Eligibility Requirements
Meets Requirements
86%
Does Not Meet Requirements
14%
Q 12: Minimum Requirements: the driver must be at least 21 years of age and have at least 5 years of driving experience; the driver and backup driver shall not have received any more than 2 moving violations and/or one chargeable accident under the vehicle laws of any state or more than one criminal offense arising out of the operation of a motor vehicle within the past three years; the van must have a seating capacity of at least 7 people, including the driver; Vanpool is not for profit. Does your vanpool arrangement meet these eligibility requirements?
25The Pulsar Advertising Team Southeastern Institute of Research
Those Qualifying For A Smaller Subsidy Are Less Willing To Limit Personal Van Use
Or Provide Adequate InsuranceChart reflects ratings of “very” or “somewhat willing” only
0%
20%
40%
60%
80%
100%
$100 - $130 $160 - $180 $195 - $200 $295 - $325
Limit Personal Van Use Have Adequate Insurance
Q 13a: How willing are you to: …?
Key Finding #3: The Vanpool Incentive Program requirements, as designed, are reasonable and most vanpools currently meet those requirements.
Strategic Implication
The Vanpool Incentive Program can work as designed.
Key Finding #4: Insurance requirements receive the least support.
Strategic Implication
Further investigation of insurance subsidy appeal, as opposed to a monetary subsidy, may maximize the appeal, and ultimate use, of the program.
Opportunity Target: Who Is Most Interested In The
Vanpool Incentive Programs
29The Pulsar Advertising Team Southeastern Institute of Research
Differences Between Groups• Those with newer vans are more willing to carry the
required amount of commercial-type insurance– 62% when the van is 4 years old or less vs. 30% when the van
is 5 years +
• Those whose round trip distance is greater are more willing to sign a legal contract with the program operating agency– 88% when the round trip is 121 miles + vs. 62% with a shorter
trip
• Those with larger vans are more willing to limit personal van use– 82% when the seating capacity is 10 + vs. 57% with smaller
vans
Key Finding #5: Program has most appeal for owner/drivers of the larger, newer vans that make the longest daily commutes.
Strategic Implication
First focus on these respective prospects as the early adopters in order to build initial program sales momentum. Then merchandise success to the remaining prospect base.
Vanpool Owners’/Operators’ Views On Program
Reporting Requirements
32The Pulsar Advertising Team Southeastern Institute of Research
Respondents Were Asked To View Program Reports And Rate Their Willingness To
Comply With Data Collection.
• Four forms were shown to all respondents to rate
• Each form was rotated so that no one form was displayed first among respondents
• Respondents were not asked to fill out the forms, just review them
• Questions about each form appeared roght behind each form
33The Pulsar Advertising Team Southeastern Institute of Research
Monthly Attendance Form
34The Pulsar Advertising Team Southeastern Institute of Research
Monthly Expense Form
35The Pulsar Advertising Team Southeastern Institute of Research
Vehicle Trip Sheet
36The Pulsar Advertising Team Southeastern Institute of Research
Operator Monthly Fares/Revenue Form
37The Pulsar Advertising Team Southeastern Institute of Research
Three Quarters Have No Problem Reporting This Kind Of Information To The Federal Government
How willing are you to have this information submitted to the Federal Government?
0% 20% 40% 60% 80% 100%
Operator MonthlyExpenses Report
Vehicle Trip Sheet
Monthly AttendanceReport
Operator MonthlyFares/Revenues
Report
Very Willing Somewhat Willing Not Very Willing Not At All Willing Don't Know
Q. 14: How willing are you to have this information submitted to the Federal Government?
38The Pulsar Advertising Team Southeastern Institute of Research
The More Frequent The Reporting Requirement, The Less Willing Potential
Participants Are To Comply With Requirements
0%
20%
40%
60%
80%
100%
ExpensesForm
Fares/RevenueForm
Monthly Reporting
1 Month/Every 3 Months
1 Month/Every 6 Months
0%
20%
40%
60%
80%
100%
AttendanceForm
Trip Form
Daily Info/Monthly Reporting
1 Day/Monthly Reporting
1 Day/Every 3 Months
1 Day/Every 6 Months
Q 14a: With regard to the ______ Reporting Form, how willing are you to comply with therequirements currently under consideration for this report as a condition to participation?
39The Pulsar Advertising Team Southeastern Institute of Research
Overall, Those Interested In The Program Are MoreWilling To Comply With Reporting Requirements
Chart reflects an average of “somewhat” and “very willing” ratings for all form requirements
0% 20% 40% 60% 80% 100%
Vehicle Trip Sheet
Monthly AttendanceForm
Monthly ExpenseForm
MonthlyFares/Revenue Form
Limited/No Interest Interested
Q 14: How willing are you to comply with the requirements currently under consideration for this report as a condition to participation?
Those With Limited Or No Interest In The Program Report
“Too Much Paperwork” As The Primary Reason For
Lack of Interest (66%)*
* Data represents only 29 respondents or 26% of the total sample
Key Finding #6: The Vanpool Incentive Program reporting requirements are reasonable, though many have issues with the frequency of collection and submission. This impacts program interest and potential participation.
Strategic Implication
Give serious consideration to a simplifying the reporting requirements and frequency of reporting.
Views On Data Submission
43The Pulsar Advertising Team Southeastern Institute of Research
Program Interest Would Decrease For Some If A Signature Were Required In
Filing The ReportsDon't Know
17% Decrease Interest
30%
Have No Affect53%
Q 20: What affect, if any, would it have on your desire to participate in the program if a signature were required in filing the reports, making it necessary for you to either mail or submit the data in person?
44The Pulsar Advertising Team Southeastern Institute of Research
Requiring A Signature Would Have Little Affect On Those Already Interested In The Program
Interested In The Program
Don't Know8%
Decrease Interest
25%
Have No Affect67%
Limited/No Interest In The Program
Don't Know23%
Decrease Interest
47%
Have No Affect30%
Q 20: What affect, if any, would it have on your desire to participate in the program if a signature were required in filing the reports, making it necessary for you to either mail or submit the data in person?
45The Pulsar Advertising Team Southeastern Institute of Research
Owners/Operators Prefer Electronic Data SubmissionTop Preference = 1, Second Preference = 2, etc.
• Email (1.7 average)• On-Line Submission (1.9 average)
• Fax (2.7 average)• Mail (3.2 average)• In Person (4.9 average)
Q 19d: What is the most convenient way for you to submit the data? Please rank the following filing methods in order of preference; ‘1’ would be your top preference, ‘2’ would be your second preference, and so on.
Key Finding #7: Electronic submission is the preferred method of reporting.
Strategic Implication
Reporting and communication efforts should be handled electronically, either online or by email.
Changes Or Improvements To Generate More Interest In
Program Participation
48The Pulsar Advertising Team Southeastern Institute of Research
The Amount Of Paperwork Is the #1 Issue
0% 20% 40% 60% 80% 100%
None in Particular
Other Responses
Need More ProgramInfo
Forms In ElectronicFormat
More FinancialIncentives
Not Requiring $2MInsurance
Reduce Paperwork
Q. 17: What changes or improvements would need to be made to make you more interested in participating in this Vanpool Incentive Program?
49The Pulsar Advertising Team Southeastern Institute of Research
Other Program Suggestions/Improvements
Other responses:• No adverse tax consequences
• Drop the need for commercial insurance. Insurance agencies don’t want to insure vanpools
• Advise operators/riders of pending changes in I-95/I-66 routes, i.e. HOT lanes
• Have Vanpool Driver of the Year Awards
• The state needs to help Vanpools find new riders
• Provide a list of financial services who offer low-interest loans for buying replacement vehicles
• Provide a list of dealerships who may offer a lease program for vanpool
• Signing of a contract is not good
Key Finding #8: There is too much paperwork associated with this program.
Strategic Implication
Look for ways to reduce the paperwork burden.
Miscellaneous Issues And Challenges For Vanpool
Owners/Operators
52The Pulsar Advertising Team Southeastern Institute of Research
HOV Lane Usage Is the Greatest Benefit To Operating Or Driving A Vanpool
0% 20% 40% 60% 80% 100%
Other Factors
No Transit Service Available
Personal Use of Van
Makes Me Money
Convenient
Saves Time
Free Commute
Saves Me Money
Reduce Wear/Tear On Personal Vehicle
Helping Others
Use HOV Lanes
Q 29: What would you say is the one greatest benefit to you operating (operating or driving, or both) a vanpool?
53The Pulsar Advertising Team Southeastern Institute of Research
Saving Time And Money Most Influenced Respondents To Become A
Vanpool Driver/Operator
0% 20% 40% 60% 80% 100%
Other Factors
Makes Me Money
Companionship
No Transit Service Available
Personal Use of Van
Free Commute
Helping Others
Convenient
Saves Me Money
Reduce Wear/Tear On Personal Vehicle
Saves Time
Use HOV Lanes
Q 28: What factors most influenced you to become a vanpool driver/operator?
54The Pulsar Advertising Team Southeastern Institute of Research
New Rider Recruitment Presents Vanpool Owners/Operators With Their
Greatest Challenge
0% 20% 40% 60% 80% 100%
Collecting Fares
Retaining Existing Riders
Reporting/Paperwork
Maintaining The Vehicle
Driving Everyday
Recruiting Back-upDrivers
Recruiting New Riders
Very Challenging (Rating of '5') Rating of '4'Rating of '3' Rating of '2'Not At All Challenging (Rating of '1') Don't Know
Q 30: On a scale of 1 – 5, where ‘1’ is “not at all challenging,” and 5 is “very challenging,” how would you rate these aspects of operating a vanpool?
55The Pulsar Advertising Team Southeastern Institute of Research
HOT Lanes May Impact Vanpools
No Affect32%
Lose All Passengers
8%
Don't Know24% Lose A Portion
of Passengers35%
Q 27: What do you think would happen to your vanpool if HOT lanes were introduced in the Northern Virginia area?
Key Finding #9: Passenger recruitment is a huge issue for vanpool drivers/operators.
Strategic Implication
Work closer with drivers/owners to recruit passengers / back-up drivers to maintain and increase participation in vanpooling.
Key Finding #10: HOT Lanes may impact vanpool retention, formation, and subsequently air quality terms.
Strategic Implication
HOV HOT Lane impact studies should include vanpool drivers/riders.
58The Pulsar Advertising Team Southeastern Institute of Research
Recap: Key Recommendations1. Proceed With Program Launch – There is great
interest
2. Find a way to increase program appeal for those currently qualifying for a minimal subsidy
3. The program can work as designed
4. Investigate further the attractiveness of an insurance subsidy, as opposed to a monetary subsidy
5. Focus on early adopters in order to build the program
59The Pulsar Advertising Team Southeastern Institute of Research
Recap: Key Recommendations6. Consider a sampling plan to reduce the
burden of monthly reporting for all program participants
7. Reporting and communication efforts should be handled electronically
8. Pay special attention to rider recruitment/retention assistance
9. HOV HOT Lane impact studies should include vanpool drivers/riders
Thank You