Willingness to Pay for Advanced Safety Features in Vehicles: An Adaptive Choice-Based Conjoint Analysis Approach

Abstract

Advanced safety features in vehicles are emerging features that car manufacturers design and produce to improve the safety of driving a vehicle. In recent years, car manufacturers increasingly have provided different safety features as options to their customers. Understanding consumers’ interests and priorities relating to these features in vehicles has motivated researchers to conduct market analysis studies. This study aims to analyze the willingness to pay (WTP) for the advanced safety features in vehicles by adults resident in the U.S.A. Implementing adaptive choice-based conjoint analysis (ACBC), which is a special market analysis technique, and using comprehensible and realistic attributes in the survey are the main innovations of this study. The results of this study show that surround monitoring and collision avoidance systems are the most important attributes for respondents in their next vehicle. After that, the vehicle’s connectivity system was the third most important factor. Respondents distinctly preferred a vehicle with fully automated crash avoidance features. Moreover, the vehicle with safety features having the highest utilities may capture almost 61% of the market.