MILLENNIALS AND DRIVING (USA) - Economist...

January 2016

MILLENNIALS AND

DRIVING (USA)

THE NATION’S LARGEST GENERATION IS

DRIVING LESS

Comparing Millennials today (2009) vs. Gen X 20

years ago (1995)

Young people this age who were employed in 2009

drove 7.1 miles less a day than their

counterparts in 1995.

Those in the city drove 6.2 miles less and

those in the country drove 8.1 miles less vs.

their counterparts in 1995

2

Citylab July 2015, Pew Research Center

TRENDS AFFECTING MILLENNIALS 3

Sources: Wall Street Journal, Elite Daily Millennial Study 2015,, MRY Future of Mobility Study

Economic

$35k average student loan

balance for class of 2015

Delayed Life Plans

59% would rather rent a

house than buy one

Sharing > Owning

52% would consider car sharing or

ride sharing services

ABOUT THIS RESEARCH

To understand Millennial Economist readers (aged 18-34) and their mindsets when it comes to commuting, driving and car ownership, compared to older generations

4

Lifestyle -What are the trends affecting their lifestyle?

-How do they currently commute? -Most important factors for a commute

Driving -Motivations in getting driving licence

-Interest in driving -Attitudes about driving

Car Ownership -The biggest motivations behind owning a car

-Likelihood to own in the future and why -Most important factors in shopping for a car

METHODOLOGY

Online quantitative study of Economist readers run by

Fox Insight in August 2015

TOTAL RESPONDENTS: 1,171

US RESPONDENTS: 479

AGE 18-34: 42%

AGE 35+: 58%

$100K+ HOUSEHOLD INCOME: 55%

ABOUT THE

RESPONDENTS

5

CLICK TO ADD SIGNPOST

479 RESPONDENTS

U.S.

440 RESPONDENTS

UK 252

RESPONDENTS

GERMANY

MAJORITY OF MILLENNIALS LIVE IN BIG

CITIES 6 EMPLOYMENT STATUS AND MARITAL STATUS REFLECT GENERAL POPULATION BUT

MILLENNIALS FROM THIS STUDY ARE MORE AFFLUENT

The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278, MRI Doublebase 2014

7%

28%

24%

40%

2%

17%

19%

62%

Rural

Suburban

Town/Small city

Major metropolitan city

Type of area that you live in

18-34 35+

18-34

From this

study

18-34

General

population

Employed 72% 70%

Student 24% 21%

Married 27% 31%

HHI $100K+ 42% 23%

ECONOMIST MILLENNIAL READERS ARE

MORE AFFLUENT AND INFLUENTIAL 7 ECONOMIST READERS ALSO SPEND MORE ON VEHICLES

Sources: GfK MRI Doublebase 2014, Ipsos Affluent USA 2015

Household income $100K+ Economist Millennial readers: Index 196

Total Millennial population: Index 89

People often come to me for advice before making a purchase Economist: Index 160 Total: Index 125

Spend $30K+ on purchase/lease of vehicle in past year Economist: Index 206 Total: Index 129

MILLENNIAL RESPONDENTS ARE JUST AS

LIKELY TO HAVE THEIR DRIVING LICENCE

Do you currently have a valid driving licence?

18-34: 94% yes

35+: 99% yes

8 ECONOMIST READERS ARE MORE LIKELY TO HAVE THEIR DRIVING LICENCE

The Economist Group Reader Panel; Age 18-34 n=201, Age 35+ n=278 , MRI Doublebase 2014

General population

18-34: 81%

35+: 87%

THOUGH MILLENNIALS WANT TO DRIVE,

THEY’RE ALSO MORE LIKELY TO SEE

DRIVING AS A GOOD LIFE SKILL 9

The Economist Group Reader Panel; Age 18-34 n=188, Age 35+ n=276

5%

7%

12%

16%

42%

48%

81%

18%

6%

26%

15%

41%

66%

77%

I wanted a driving licence mainly for ID purposes

Other (please specify):

My parents/friends thought it was a good idea to

get my licence

I wanted to buy a car

I considered it a rite of passage to pass my driving

test

Driving is a good life skill to have

I wanted to drive

Main reasons for getting your driving licence

18-34 35+

THUS MILLENNIALS ARE ALSO MORE

LIKELY TO SEE DRIVING AS A UTILITY 10 THIS OUTLOOK MAY IMPACT WHAT THEY LOOK FOR IN A CAR


33%

57%

47%

55%

Driving is purely a mode of transport to get from

one place to another

I enjoy the drive as much as the destination itself

To what extent would you agree with the following:

18-34 35+

DRIVING IS THE MAIN MODE OF

TRANSPORT 11

HOWEVER MILLENNIALS ARE MORE LIKELY TO USE PUBLIC TRANSPORT OR WALK/CYCLE


AGE 18-34

62%

AGE 35+

40%

Live in major metropolitan cities: Transport method for majority of daily

commute:

Driving: 55% / 64%

Public transportation: 19% / 11%

Walking/cycling: 22% / 10%

I do not commute regularly: 2% / 13%

A CONVENIENT COMMUTE IS THE MOST

IMPORTANT FACTOR FOR ALL AGES 12

BUT CONVENIENCE AND COSTS ARE EVEN MORE IMPORTANT TO MILLENNIALS


0%

11%

13%

14%

16%

22%

42%

52%

59%

0%

5%

16%

17%

21%

32%

43%

51%

67%

I like to commute with others

Commuting is also a way for me to exercise (e.g.

walking)

Other (please specify):

This is an environmentally friendly way to travel

Ability to multi-task (e.g. read while commuting)

This is a cost-effective way for me to travel

I like being in control rather than rely on the schedule

of others

This transportation option saves me the most time

Convenience – it’s easiest for me to access this mode

of transport

Most important factors in choosing the mode of transportation for

daily commute

18-34 35+

CAR OWNERSHIP USED TO EQUAL

IDENTITY, STATUS AND FREEDOM 13 BUT TODAY’S TECHNOLOGY AND SOCIAL MEDIA ALTERED THE DEFINITION OF

IDENTITY AND STATUS AND HELPS FULFIL CONNECTIVITY

Then Now

16%

21%

The car that I drive

Which of the following best convey 'status'

for you personally?

THOUGH CARS MAY NOT CONVEY

IDENTITY TO MILLENNIALS AS MUCH 14 OVER 20% OF MILLENNIALS AGREE THAT CARS HELP CONVEY THEIR STATUS

WHICH BODES WELL FOR LUXURY AUTO BRANDS


18%

8%

The car that I drive

Thinking about your own personal 'identity',

which of the following come to mind?

18-34 35+

NEARLY ALL CURRENTLY OWN OR

LEASE A CAR 15

The Economist Group Reader Panel; Age 18-34 n=188, Age 35+ n=276 , Nielsen @Plan Q2 2015

Do you currently own or lease a car?

18-34: 82% yes

35+: 97% yes

General population 18-34: 74% 35+: 90%

TRANSPORT, FREEDOM AND

CONVENIENCE ARE THE MAIN REASONS

FOR CAR OWNERSHIP 16


76%

67% 61%

39% 36%

15%

7% 3%

85%

66%

52%

33%

40%

16% 12%

5%

It’s one of my

primary modes

of

transportation

I like the

freedom to go

anywhere at

any time

It’s convenient

to my lifestyle

I wanted to be

able to visit my

family and

friends

I like to drive I like to keep a

car for

emergencies

I wanted to

treat myself or

my family

Other (please

specify):

Why did you decide to buy or lease a car?

18-34 35+

The older generation is more likely to buy a car because of transport need while Millennials are

more likely to buy out of convenience.

NON-CAR OWNERS DON’T CURRENTLY

NEED A CAR OR ARE DETERRED BY THE

COSTS OF OWNERSHIP 17


Main reasons for not currently owning or leasing a car

18-34 35+

There are plenty of public transport

options in my area 73% 44%

Costs of owning a car (buying a car,

insurance, maintenance costs) 67% 33%

I can walk or cycle to get to most places in the area that I live in

48% 22%

I have access to a car via family/friends

36% 22%

The responsibility of owning a car (e.g. maintenance)

33% 22%

Other (please specify): 6% 33%

I have no interest in driving 3% 0%

1 IN 4 MILLENNIAL RESPONDENTS PLAN

TO BUY A CAR IN THE NEXT 2 YEARS 18 THIS CORRELATES WITH THEIR LIFE PLANS OF CAREER ADVANCEMENT,

RELOCATION AND STARTING A FAMILY


25%

20%

25%

30%

34%

29%

19% 18%

Yes, within the

next 1-2 years

Yes, within the

next 2-4 years

Yes, within the

next 5 years

No, not within

the next 5 years

Do you plan to buy or lease a car in the next 5

years?

18-34 35+

Which of the following do you intend to do in the next 2 years? (Age 18-34 respondents)

49% career advancement at current job 46% move house or relocate 19% have a baby

TOP PURCHASING FACTORS ARE FUEL

EFFICIENCY AND RELIABILITY 19 FUEL EFFICIENCY AND PRICE ARE MORE IMPORTANT TO MILLENNIALS WHILE

ENJOYABLE TO DRIVE IS MORE IMPORTANT TO THE OLDER GENERATION


1%

2%

4%

9%

10%

18%

19%

20%

25%

25%

25%

26%

28%

43%

45%

Payment options

Model year

Car security

Exterior design

Environmental impact/friendliness

Size of car

Comfort

High performance (power…

Car technology/innovation

Brand reputation

Enjoyable to drive

Safety rating

Affordable price

Reliability

Fuel efficiency / gas mileage

Top 3 factors in buying/leasing a car

(Total respondents)

18-34 35+

Fuel

efficiency

56% 38%

Reliability 41% 44%

Enjoyable

to drive

17% 31%

Affordable

price

34% 24%

RESPONDENTS WOULD BE MOST LIKELY TO

PAY MORE FOR SAFETY AND COMFORT 20


Safety technologies

18-34: 59%

35+: 68%

Comfort while sitting

in the car

18-34: 54%

35+: 65%

Alternative power sources

(e.g. electric or hybrid)

18-34: 53% 35+: 42%

Connectivity tech(e.g.

connect to smartphone)

18-34: 49% 35+: 44%

Technology that keeps

track of fuel efficiency

18-34: 40% 35+: 32%

Features worth paying more for in a car

The older generation cares much more about safety technologies and comfort while Millennials care more about alternative power sources and fuel efficiency.

TAKEAWAYS

Driving is relevant to both groups as it is the main mode of transport for their daily

commutes even though most respondents live in major cities.

However there is still room for improvement for Millennials as they are more likely to use

public transportation or walk/cycle on their daily commutes.

When it comes to commuting, both groups value convenience and time-saving over things

like cost and the ability to read on a commute. Millennials are more likely than the older

generation to value convenience and affordability.

Focus on technologies that can help with convenience – e.g. connectivity technologies

that can sync the car with one’s phone.

Although Millennials enjoy driving as much as the older generation, Millennials are more

likely to see driving as a skill/utility. This translates to what Millennials are looking for in a car

as they seem to be more pragmatic shoppers (fuel efficiency and reliability are the most

important factors).

What are interesting ways to communicate these functional benefits to this audience?

21

MILLENNIALS AND DRIVING (USA) - Economist...

Documents

Transcript of MILLENNIALS AND DRIVING (USA) - Economist...