Northern Virginia Vanpool
AdVantage Program
Product Development Research Study
June 22, 2004
Pulsar Advertising Team
Southeastern Institute of Research
Background & Methodology
• A quantitative online research study among
those identified by MWCOG, RADCO, VPSI,
and PRTC as Vanpool Owners/Operators
• Interviewing conducted April 22 – June 8, 2004
• This report based on 111 completed interviews
• Maximum statistical error is +/- 8.0%
The Pulsar Advertising Team
2
Southeastern Institute of Research
Objective
• The overall study objective:
– Determine existing vanpool operators’/drivers’ willingness to
participate in the AdVantage Vanpool Program given the
requirements associated with participation and the financial
incentives offered.
• Specific objectives include:
– Gauge awareness and understanding of AdVantage Vanpool
Program
– Identify various costs of managing existing vanpools
– Assess and rate paperwork/reports associated with
AdVantage Vanpool Program requirements
– Identifying the defining characteristics of best prospects for
AdVantage Vanpool Program
The Pulsar Advertising Team
3
Southeastern Institute of Research
Typical Vanpool
Characteristics
Profile Of Respondents
& Their Vanpool
• Average Age of the Van:
• Who Drives the Vanpool:
– 4 Years
– Respondent: 75%
– Designated Driver: 41%
– Some Other Person: 22%
• Average Round Trip
Distance:
– 92 Miles
• Average Van Seating
Capacity:
• Who Owns the Van:
– Respondent or Family
Member: 56%
– Leasing Agency: 28%
– Private Party: 9%
– Employer: 1%
– Other: 6%
– 13 (including driver)
• Type of Insurance:
– Commercial-type: 63%
– Family: 20%
– Uncertain: 17%
• Van Depreciation:
– 44% take depreciation
The Pulsar Advertising Team
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Southeastern Institute of Research
Additional Characteristics
• Vanpool Accidents:
• Average Monthly Fare:
– 17% have been involved in
an accident in the past 5
years
– $120 (per passenger)
• Average Number Receiving
Metrocheck vouchers or
other employer provided
subsidies:
• Most Travel I-95:
–
–
–
–
I-95: 81%
I-66: 13%
Dulles Toll Road: 3%
Other: 4%
– 9 passengers
• Average number currently
riding in vanpool:
– 11 (including driver)
The Pulsar Advertising Team
6
Southeastern Institute of Research
Average Vanpool Operating Costs
• Per Month
–
–
–
–
–
–
–
–
–
–
• Per Year
–
–
–
–
–
–
–
–
–
–
Lease/cost payment: $ 771
Fuel: $ 268
Maintenance: $ 169
Insurance: $ 164
Personal Property Tax:
$ 119
Parking: $ 72
Parking Subsidy: $ 44
Cleaning: $ 21
License Plates: $ 14
Other Expenses: $ 48
The Pulsar Advertising Team
7
Lease/cost payment: $ 8,056
Fuel: $ 2758
Maintenance: $ 1447
Insurance: $ 1915
Personal Property Tax: $224
Parking: $ 640
Parking Subsidy: $ 434
Cleaning: $ 217
License Plates: $ 48
Other Expenses: $ 543
Southeastern Institute of Research
Vanpool Owners’/Operators’
Overall Interest In Participating In
The Vanpool Incentive Program
65% Would Be Interested In The Program
If It Were Available Today
42% Would Be Very Interested
0%
20%
40%
60%
Very Interested (Rating of '5')
Rating of '3'
Not At All Interested (Rating of '1')
80%
100%
Rating of '4'
Rating of '2'
Don't Know
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and
associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?
The Pulsar Advertising Team
9
Southeastern Institute of Research
VPSI Drivers May Be Slightly
More Interested In the Program
All Other Vanpool
Owners/Operators
VPSI
0%
20%
Very Interested (Rating of '5')
Rating of '3'
Not At All Interested (Rating of '1')
40%
60%
80%
100%
Rating of '4'
Rating of '2'
Don't Know
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and
associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?
The Pulsar Advertising Team
10
Southeastern Institute of Research
Realistic Level of Demand: 1 Out of 4
Applying A Discount Model To Level of Interests Suggests That The Potential
Market For The Vanpool Incentive Program Could Be As High As 25% Of Those Not
Part Of The VPSI Program
All Other
Owner/Operators
25%
VPSI
Demand Discount Model
34%
0%
20%
40%
Q. 15: Remembering back to the estimated subsidy, and now
that you have a better understanding of the program and its
requirements and associated forms, how interested would you
be in participating in this Vanpool Incentive Program if it were
available to you today?
The Pulsar Advertising Team
11
A more realistic potential for
market demand can be
obtained by applying a
standard demand forecasting
discount model where market
potential equals 50% of those
60%
80%are “Very
100%
who say they
interested” plus
25% of those who say
“somewhat interested” in the
product concept.
Southeastern Institute of Research
Key Finding #1:
There Is Great Interest In This
Vanpool Incentive Program
Strategic Implication
Proceed With Program Launch – This
program Will Work!
The Impact Of The Monthly
Subsidy Benefit
The Longer The Round Trip Distance The
Greater The Interest In The Program
Respondents Knew The Greater The Distance Traveled, The Greater The Subsidy
0 - 60 Miles
61 - 120 Miles
121 Miles or
More
0%
20%
40%
Very Interested (Rating of '5')
Rating of '3'
Not At All Interested (Rating of '1')
60%
80%
100%
Rating of '4'
Rating of '2'
Don't Know
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program
and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive
Program if it were available to you today?
The Pulsar Advertising Team
14
Southeastern Institute of Research
Overall, The More Subsidy A Vanpool Qualifies For,
The More Interested They Are In The Program
Chart reflects ratings of ‘4’ or ‘5’ only
100%
80%
60%
40%
20%
0%
$100 - $130
$160 - $180
$195 - $200
$295 - $325
Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its
requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it
were available to you today?
The Pulsar Advertising Team
15
Southeastern Institute of Research
The Following Two Slides Report On Two
Questions About Insurance Subsidies As An
Alternative To Monthly Subsidies.
These Two Questions Were Added At The Last
Minute During The Completion Of The
Fieldwork. Due To This Timing, Only 17
Respondents Answered These Questions As
Part Of The Complete Survey. An Additional 52
Respondents Complied With A Follow-up Email
Requesting Their Feedback To The Questions.
Interest In Insurance Subsidies Versus
Monthly Monetary Subsidies Is Split*
0%
20%
40%
60%
Very Interested (Rating of '5')
Rating of '3'
Not At All Interested (Rating of '1')
80%
100%
Rating of '4'
Rating of '2'
Don't Know
Q 15a: Contingent on your vanpool having adequate commercial-type insurance, with a minimum liability coverage no less than
$2,000,000, how interested would you be in participating in this Vanpool Incentive Program if, rather than receiving a monthly subsidy
payment, we were to reduce your insurance burden by sharing up to half of your van’s insurance costs with you?
* Data represents only 69 respondents or 62% of the total sample
The Pulsar Advertising Team
17
Southeastern Institute of Research
VPSI Members Appear To Be Less
Interested In Insurance Assistance*
These numbers, however, are not statistically significant due to the small sample size
All Other
Owner/Operators
VPSI
0%
20%
40%
Very Interested (Rating of '5')
Rating of '3'
Not At All Interested (Rating of '1')
60%
80%
100%
Rating of '4'
Rating of '2'
Don't Know
Q 15a: Contingent on your vanpool having adequate commercial-type insurance, with a minimum liability coverage no less than $2,000,000, how
payment, we were to reduce your insurance burden by sharing up to half of your van’s insurance costs with you?
* Data represents only 69 respondents or 62% of the total sample
The Pulsar Advertising Team
18
Southeastern Institute of Research
Few Would Choose Reduced Insurance
Rates Over A Monthly Subsidy*
Though 31% have no preference
No
Preference
31%
Monthly
Subsidy
55%
Reduced
Insurance
14%
Q 15b: If you had a choice, which would you prefer to receive, a monthly subsidy (as determined by your van’s size, age,
and daily round trip distance) or a reduced rate on your van’s commercial-type insurance?
* Data represents only 69 respondents or 62% of the total sample
The Pulsar Advertising Team
19
Southeastern Institute of Research
Few Owner/Operators Would
Prefer Reduced Insurance
All Other
Owner/Operators
VPSI
0%
Monthly Subsidy
20%
40%
Reduced Insurance
60%
80%
100%
No Preference
Q 15b: If you had a choice, which would you prefer to receive, a monthly subsidy (as determined by your van’s size, age,
and daily round trip distance) or a reduced rate on your van’s commercial-type insurance?
* Data represents only 69 respondents or 62% of the total sample
The Pulsar Advertising Team
20
Southeastern Institute of Research
Key Finding #2:
The Greater The Subsidy, The
Greater The Interest.
Strategic Implication
Look for ways to increase program appeal
for those slated to receive a smaller
subsidy, i.e. vanpools with older vans that
travel shorter distances and carry fewer
passengers.
Vanpool Owners’/Operators’
Willingness To Meet The
Requirements Of The Proposed
Vanpool AdVantage Program
Owners/Operators Are Willing To Embrace The
Contract Requirements Of The Vanpool Program
But There May Be Some Challenges With Insurance & Contract Requirements
Operate Vanpool >= 16 Working Days
Designate Back-up Driver
Register with COG
Maintain Passenger Load
Maintain 3-Year History
Collect/Submit Reports
Limit Personal Van Use
Sign A Legal Contract
Have Adequate Insurance
0%
Very Willing
Somewhat Willing
20%
Not Very Willing
40%
60%
Not At All Willing
80%
100%
Don't Know
Q 13a: How willing are you to: …?
The Pulsar Advertising Team
23
Southeastern Institute of Research
Most Vanpools Currently Meet the
Program Eligibility Requirements
Does Not Meet
Requirements
14%
Meets
Requirements
86%
Q 12: Minimum Requirements: the driver must be at least 21 years of age and have at least 5 years of driving experience; the
driver and backup driver shall not have received any more than 2 moving violations and/or one chargeable accident under the
vehicle laws of any state or more than one criminal offense arising out of the operation of a motor vehicle within the past three
years; the van must have a seating capacity of at least 7 people, including the driver; Vanpool is not for profit. Does your vanpool
arrangement meet these eligibility requirements?
The Pulsar Advertising Team
24
Southeastern Institute of Research
Those Qualifying For A Smaller Subsidy
Are Less Willing To Limit Personal Van Use
Or Provide Adequate Insurance
Chart reflects ratings of “very” or “somewhat willing” only
100%
80%
60%
40%
20%
0%
$100 - $130
$160 - $180
Limit Personal Van Use
$195 - $200
$295 - $325
Have Adequate Insurance
Q 13a: How willing are you to: …?
The Pulsar Advertising Team
25
Southeastern Institute of Research
Key Finding #3:
The Vanpool Incentive Program requirements,
as designed, are reasonable and most
vanpools currently meet those requirements.
Strategic Implication
The Vanpool Incentive Program can
work as designed.
Key Finding #4:
Insurance requirements receive the
least support.
Strategic Implication
Further investigation of insurance subsidy
appeal, as opposed to a monetary
subsidy, may maximize the appeal, and
ultimate use, of the program.
Opportunity Target: Who Is
Most Interested In The
Vanpool Incentive Programs
Differences Between Groups
• Those with newer vans are more willing to carry the
required amount of commercial-type insurance
– 62% when the van is 4 years old or less vs. 30% when the
van is 5 years +
• Those whose round trip distance is greater are more
willing to sign a legal contract with the program
operating agency
– 88% when the round trip is 121 miles + vs. 62% with a
shorter trip
• Those with larger vans are more willing to limit
personal van use
– 82% when the seating capacity is 10 + vs. 57% with smaller
vans
The Pulsar Advertising Team
29
Southeastern Institute of Research
Key Finding #5:
Program has most appeal for owner/drivers
of the larger, newer vans that make the
longest daily commutes.
Strategic Implication
First focus on these respective prospects
as the early adopters in order to build
initial program sales momentum. Then
merchandise success to the remaining
prospect base.
Vanpool Owners’/Operators’
Views On Program
Reporting Requirements
Respondents Were Asked To View Program
Reports And Rate Their Willingness To
Comply With Data Collection.
• Four forms were shown to all respondents to
rate
• Each form was rotated so that no one form
was displayed first among respondents
• Respondents were not asked to fill out the
forms, just review them
• Questions about each form appeared roght
behind each form
The Pulsar Advertising Team
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Southeastern Institute of Research
Monthly Attendance Form
The Pulsar Advertising Team
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Southeastern Institute of Research
Monthly Expense Form
The Pulsar Advertising Team
34
Southeastern Institute of Research
Vehicle Trip Sheet
The Pulsar Advertising Team
35
Southeastern Institute of Research
Operator Monthly Fares/Revenue Form
The Pulsar Advertising Team
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Southeastern Institute of Research
Three Quarters Have No Problem Reporting This
Kind Of Information To The Federal Government
How willing are you to have this information submitted to the Federal Government?
Operator Monthly
Fares/Revenues
Report
Monthly Attendance
Report
Vehicle Trip Sheet
Operator Monthly
Expenses Report
0%
Very Willing
20%
Somewhat Willing
40%
Not Very Willing
60%
80%
Not At All Willing
100%
Don't Know
Q. 14: How willing are you to have this information submitted to the Federal Government?
The Pulsar Advertising Team
37
Southeastern Institute of Research
The More Frequent The Reporting
Requirement, The Less Willing Potential
Participants Are To Comply With Requirements
100%
100%
80%
80%
60%
60%
40%
40%
20%
20%
0%
0%
Expenses
Form
Attendance
Form
Fares/Revenue
Form
Monthly Reporting
1 Month/Every 3 Months
1 Month/Every 6 Months
Trip Form
Daily Info/Monthly Reporting
1 Day/Monthly Reporting
1 Day/Every 3 Months
1 Day/Every 6 Months
Q 14a: With regard to the ______ Reporting Form, how willing are you to comply with the
requirements currently under consideration for this report as a condition to participation?
The Pulsar Advertising Team
38
Southeastern Institute of Research
Overall, Those Interested In The Program Are More
Willing To Comply With Reporting Requirements
Chart reflects an average of “somewhat” and “very willing” ratings for all form requirements
Monthly
Fares/Revenue Form
Monthly Expense
Form
Monthly Attendance
Form
Vehicle Trip Sheet
0%
20%
40%
Limited/No Interest
60%
80%
100%
Interested
Q 14: How willing are you to comply with the requirements currently under consideration for this report as a condition to participation?
The Pulsar Advertising Team
39
Southeastern Institute of Research
Those With Limited Or No
Interest In The Program Report
“Too Much Paperwork”
As The Primary Reason For
Lack of Interest (66%)*
* Data represents only 29 respondents or 26% of the total sample
Key Finding #6:
The Vanpool Incentive Program reporting requirements
are reasonable, though many have issues with the
frequency of collection and submission. This impacts
program interest and potential participation.
Strategic Implication
Give serious consideration to a simplifying the
reporting requirements and frequency of
reporting.
Views On Data
Submission
Program Interest Would Decrease For
Some If A Signature Were Required In
Filing The Reports
Don't Know
17%
Decrease
Interest
30%
Have No Affect
53%
Q 20: What affect, if any, would it have on your desire to participate in the program if a signature were required in filing
the reports, making it necessary for you to either mail or submit the data in person?
The Pulsar Advertising Team
43
Southeastern Institute of Research
Requiring A Signature Would Have Little Affect On
Those Already Interested In The Program
Interested In The Program
Limited/No Interest In The Program
Decrease
Interest
25%
Don't Know
8%
Don't Know
23%
Decrease
Interest
47%
Have No Affect
30%
Have No Affect
67%
Q 20: What affect, if any, would it have on your desire to participate in the program if a signature were required in filing the
reports, making it necessary for you to either mail or submit the data in person?
The Pulsar Advertising Team
44
Southeastern Institute of Research
Owners/Operators Prefer
Electronic Data Submission
Top Preference = 1, Second Preference = 2, etc.
•
•
•
•
•
Email (1.7 average)
On-Line Submission (1.9 average)
Fax (2.7 average)
Mail (3.2 average)
In Person (4.9 average)
Q 19d: What is the most convenient way for you to submit the data? Please rank the following filing methods in order of
preference; ‘1’ would be your top preference, ‘2’ would be your second preference, and so on.
The Pulsar Advertising Team
45
Southeastern Institute of Research
Key Finding #7:
Electronic submission is the preferred
method of reporting.
Strategic Implication
Reporting and communication efforts should be
handled electronically, either online or by email.
Changes Or Improvements To
Generate More Interest In
Program Participation
The Amount Of Paperwork
Is the #1 Issue
Reduce Paperwork
Not Requiring $2M
Insurance
More Financial
Incentives
Forms In Electronic
Format
Need More Program
Info
Other Responses
None in Particular
0%
20%
40%
60%
80%
100%
Q. 17: What changes or improvements would need to be made to make you more interested in participating in this Vanpool
Incentive Program?
The Pulsar Advertising Team
48
Southeastern Institute of Research
Other Program
Suggestions/Improvements
Other responses:
•
•
•
•
•
•
•
•
No adverse tax consequences
Drop the need for commercial insurance. Insurance agencies don’t
want to insure vanpools
Advise operators/riders of pending changes in I-95/I-66 routes, i.e. HOT
lanes
Have Vanpool Driver of the Year Awards
The state needs to help Vanpools find new riders
Provide a list of financial services who offer low-interest loans for
buying replacement vehicles
Provide a list of dealerships who may offer a lease program for vanpool
Signing of a contract is not good
The Pulsar Advertising Team
49
Southeastern Institute of Research
Key Finding #8:
There is too much paperwork associated
with this program.
Strategic Implication
Look for ways to reduce the paperwork
burden.
Miscellaneous Issues And
Challenges For Vanpool
Owners/Operators
HOV Lane Usage Is the Greatest Benefit
To Operating Or Driving A Vanpool
Use HOV Lanes
Helping Others
Reduce Wear/Tear On Personal Vehicle
Saves Me Money
Free Commute
Saves Time
Convenient
Makes Me Money
Personal Use of Van
No Transit Service Available
Other Factors
0%
20%
40%
60%
80%
100%
Q 29: What would you say is the one greatest benefit to you operating (operating or driving, or both) a vanpool?
The Pulsar Advertising Team
52
Southeastern Institute of Research
Saving Time And Money Most
Influenced Respondents To Become A
Vanpool Driver/Operator
Use HOV Lanes
Saves Time
Reduce Wear/Tear On Personal Vehicle
Saves Me Money
Convenient
Helping Others
Free Commute
Personal Use of Van
No Transit Service Available
Companionship
Makes Me Money
Other Factors
0%
20%
40%
60%
80%
100%
Q 28: What factors most influenced you to become a vanpool driver/operator?
The Pulsar Advertising Team
53
Southeastern Institute of Research
New Rider Recruitment Presents Vanpool
Owners/Operators With Their
Greatest Challenge
Recruiting New Riders
Recruiting Back-up
Drivers
Driving Everyday
Maintaining The Vehicle
Reporting/Paperwork
Retaining Existing Riders
Collecting Fares
0%
20%
40%
Very Challenging (Rating of '5')
Rating of '3'
Not At All Challenging (Rating of '1')
60%
80%
100%
Rating of '4'
Rating of '2'
Don't Know
Q 30: On a scale of 1 – 5, where ‘1’ is “not at all challenging,” and 5 is “very challenging,” how would you rate these aspects
of operating a vanpool?
The Pulsar Advertising Team
54
Southeastern Institute of Research
HOT Lanes May Impact Vanpools
Don't Know
24%
Lose A Portion
of Passengers
35%
Lose All
Passengers
8%
No Affect
32%
Q 27: What do you think would happen to your vanpool if HOT lanes were introduced in the Northern Virginia area?
The Pulsar Advertising Team
55
Southeastern Institute of Research
Key Finding #9:
Passenger recruitment is a huge issue for
vanpool drivers/operators.
Strategic Implication
Work closer with drivers/owners to recruit
passengers / back-up drivers to maintain and
increase participation in vanpooling.
Key Finding #10:
HOT Lanes may impact vanpool retention,
formation, and subsequently air quality
terms.
Strategic Implication
HOV HOT Lane impact studies should include
vanpool drivers/riders.
Recap: Key Recommendations
1. Proceed With Program Launch – There is great
interest
2. Find a way to increase program appeal for those
currently qualifying for a minimal subsidy
3. The program can work as designed
4. Investigate further the attractiveness of an
insurance subsidy, as opposed to a monetary
subsidy
5. Focus on early adopters in order to build the
program
The Pulsar Advertising Team
58
Southeastern Institute of Research
Recap: Key Recommendations
6. Consider a sampling plan to reduce the
burden of monthly reporting for all program
participants
7. Reporting and communication efforts should
be handled electronically
8. Pay special attention to rider
recruitment/retention assistance
9. HOV HOT Lane impact studies should
include vanpool drivers/riders
The Pulsar Advertising Team
59
Southeastern Institute of Research
Thank You