The determinants of consumer purchase of smart cars

An expert discusses five factors that may accelerate or slow down the process of consumer tendency to purchase and adopt automotive technology, namely:

1- The degree of driving improvement: this depends on the advantages and services that these cars will provide to the consumer, they must be designed to provide the utmost comfort and entertainment, which enables the consumer to use the driving time to accomplish other tasks. But the negative consequences of these systems also need to be taken into consideration, even if they relate to a few groups. Some enjoy driving or the time spent with family members while driving, which is linked to the cultural system of American society.

2- Safety: The safety rate provided by the car's driving system is one of the most important determinants for the consumer to make the decision to buy.

3- Privacy and insurance: Although this type of car may reduce the number of road accidents, it poses another problem, which is that the car data system is hacked by electronic pirates, and they take the lead; about 50% of Americans have a belief in that. . While 40% fear that their personal driving data will be collected and used.

4- Prices of these cars: This point relates to the willingness of the consumer to pay a price in order to obtain a certain advantage. Studies have shown that only 20% of Americans are willing to pay an increase of $ 3,000 over the price of a conventional car, while obtaining a self-driving car may cost from $ 7000 to $ 10,000 more than the price of a conventional car.

5- Network effects: The writer believes that these network effects will enhance the value of the car's connection to another. The higher the percentage of information that the car provides about its surroundings, the higher its value, and helps provide a more secure system, and reduces traffic jams.

In sum, there are factors that influence the behavior of producers to produce autonomous cars, and likewise there are limitations related to consumers buying this type of automotive technology.

The expert emphasizes that there is an interaction and mutual effect between these factors and these determinants, for example, regulatory controls and restrictions may reduce the value of network effects; if the law limits the collection and use of data, it will negatively affect the network’s work and reduce its ability to provide a more secure system, and therefore Its value decreases for the consumer, its desire to buy decreases, followed by the unwillingness of producers to put this product on the market due to lack of sales from it.