Cox Automotive released today new consumer research that suggests automakers may face challenges if they expect to generate significant revenue from subscription-type features, also known as Features on Demand (FoD). The Research & Market Intelligence team at Cox Automotive understands the importance of the trend toward Features on Demand, and the new study “Software Monetization: The Emergence of Vehicle Features on Demand” is the team’s first comprehensive look at the topic.
The study was undertaken to gauge consumer awareness of automakers offering Features on Demand as part of their new-vehicle sales strategies and that FoD was likely to become a growing trend in the automotive industry. The team surveyed over 2,000 in-market vehicle shoppers in late December and early January to determine their interest in vehicle features through subscription-type services. Additionally, the study explored the consumer benefits and barriers for FoD.
“Our initial research indicates that the transition to Features on Demand will be an uphill battle for many automakers,” said Vanessa Ton, senior manager of market and customer research at Cox Automotive, who helped lead the research project. “In the market right now, there is low consumer awareness and some skepticism on the part of shoppers. To gain consumer acceptance, automakers must ensure consumers perceive subscription-based features as a good value and not just a money-grab.”
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