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Although the navigation market has seen impressive growth over the past year, it still remains a small market with just 18% of online adults owning a GPS-enabled device. Most owner households have just one GPS product, but 30% have two or more units.
Reasons to purchase GPS systems vary widely. Only 54% of online GPS owners said navigation assistance was a reason they bought a GPS-enabled product. Attesting to the convergence of GPS receivers, 28% of online owners said GPS was an included
feature of another product they purchased.
Friends and family, as well as Internet news/review sites are the most popular sources of information about GPS devices.
As GPS has evolved from a product to a feature, sales channels have multiplied for the technology. While 58% of GPS owners purchased their device through traditional CE retail channels (including online merchants), 11% of owners made their purchase at ‘another retail location’ and 31% acquired the technology ‘somewhere else entirely’.
Current GPS owners spent an average of $441 to buy the technology. As one might expect, mean spending on permanent in-vehicle GPS systems was highest ($615) followed by portable GPS devices ($366) and cell phone GPS products ($323).
Price is not necessarily the most important factor influencing GPS purchases. In making their purchase decision, owners of permanent in-vehicle GPS systems were less concerned with price compared to owners of portable/handheld GPS units.
Owners of permanent in-vehicle GPS systems are the most frequent users of GPS.
Overall satisfaction among GPS owners is high (80%). Owners of permanent invehicle navigation systems exhibit the highest levels of satisfaction with the technology (87%).
GPS purchases over the next year could account for $4.1 billion in sales. Almost one-quarter (24%) of online consumers are planning to purchase a GPS device within the next year, with average planned spending equaling $410.
Future buyers are less concerned with brand in evaluating products before making a purchase decision. Rather display quality, price and warranty are the most important product elements guiding the sale.
Manufacturers of dedicated GPS devices should be wary of the growing threat of GPS-enabled cell phones. The study shows 33% of future GPS buyers are interested in owning a cell phone that has GPS capabilities.
Let us know what you think. Anything surprising?
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