PHASE I
CONSUMER SEGMENTATION
RESEARCH
EXECUTIVE SUMMARY
OF
KEY FINDINGS
CALTRANS
OFFICE OF TRANSPORTATION
DEMAND MANAGEMENT
Executive Summary
Background
This executive report summarizes the first phase of unique consumer
study conducted by Pacific/West Communications Group, Inc., for
California Department of Transportation Office of Transportation
Demand Management. The consumer research focuses on defining
consumer markets for transportation planning and marketing, thus
providing decision-makers with a historic consumers'-eye perspective.
The research yields a broad base of strategic information about
California commuters, their lifestyles, motivations, behaviors,
demographics, and desires for transportation products.
This attitudinal and demographic profile is the first of its kind.
It provides a consumer foundation for addressing the planning,
development, and enhancement, and marketing of transportation
products and services across California's diverse markets.
The next phase of research will apply this vast, in-depth understanding
of California's commuters to necessary product research -- enhancements
and new product development.
Objectives
The primary purpose of this research is to develop meaningful
demographic and attitudinal profiles the target consumer markets
-- those who would be most likely to try alternatives to driving
alone. By applying classical consumer research techniques, this
study reveals the nuances of market segments within the commuting
population.
The research provides a foundation for planning, developing and
marketing transportation products and services which California
consumers desire and need -- and will ultimately use.
Key Findings
- 44% of Drive Alone commuters are "extremely" or
"very" likely to use alternative modes of transportation.

- Though, less than half of that high propensity target market
is actually willing to sample conventional alternative modes:
- Only 23% are likely to use carpools
- 12% say they are likely to use vanpools
- 12% say they are likely to use a public bus
- 11% say they are likely bike to work or school
- 10% say they are likely to try light rail, and
- 8% say they are likely to try a train.
- Clearly, consumers' desire for alternatives exceeds their
expectations of the existing product line: More than twice as
many Drive Alone commuters are willing to try some alternative
than are willing to try the conventional products they know (i.e.,
carpools, vanpools, buses, etc.).
- Commuters who are willing to try alternatives to driving alone
are distinctly different -- both demographically and psychographically
-- from those who are not. Those distinctions have relevant implications
for transportation planners and decision-makers at every level
in California, especially in light of the shrinking market share
for alternative modes.
- This high propensity target market is not a monolith, as the
Index of Propensity demonstrates. Rather, three distinct market
segments emerge.
- Though some commonalties run through the target segments --
and the segments typically include consumers of all demographics
-- the variations are significant to every phase of marketing,
from product development and enhancements to positioning and pricing.
(Base = 2,114n commuters
in California.)
- Commuters who fit the psychographic and demographic
profile to sample alternative modes -- i.e., Easy Goer, Bold Beginner,
and Efficiency Driven -- comprise three-in-five (60%) of all Drive
Alone commuters in California. Intuitively, experienced marketers
know that just because consumers fit a certain profile does not
qualify them as likely prospects for purchasing a product or changing
behavior.
- Commuters who demonstrate the highest propensity to
sample alternatives, however, are only 44% of all drive alones.
Despite their self-stated eagerness to change commuting behavior,
that potential market is not necessarily a likely opportunity.
- Ultimately, from a consumer research perspective, the true
"target market" is defined by drive alone commuters
who
1) fit the psychographic and demographic profile to change
behavior and
2) self-identify as being of a high propensity to do so.
That target market group -- 29% of all drive alones -- offers
the greatest opportunity for changing behavior.
NOTE: Target markets define the greatest
opportunities for marketing, not exclude them. Drive Alones who
are not Bold Beginners, etc., though likely to try alternatives,
may well be persuaded to change behavior. The greatest yield
of marketing efforts, however, will still be found in the motivated
target markets.
These demographic and attitudinal characteristics provide the
most clear, comprehensive and useful understanding of California
commuters known to date. The distinctions are fundamental to
understanding how planners and marketers of transportation can
effectively attract and keep market share for alternative modes.
- As these graphics demonstrate, high propensity target markets
tend to be:
- younger (under 35 years),
- unmarried,
- ethnically diverse, and
- lower socio-economic strata, including three closely related
factors:
- education,
- occupation and
- income
- (indeed disproportionately students and entry level service-type
workers).
- Despite the target markets' desire to use alternative modes
both generally and specifically (indicated above as "Mode
Choices" ranked by Index), their actual use is minimal.
This finding reinforces the previous finding (p. 3) that current
alternatives do not meet consumers needs and expectations.
- In fact, three-in -five (60%) of Drive Alone commuters have
tried alternative modes but continue to make their daily treks
alone.
[NOTE: Appendix A provides a detailed summary of segment
configuration by each demographic descriptor. There, data is
sub-divided into three relevant categories: Total Sample; Drive
Alone Sample (weighted); and Alternative Mode Sample (weighted).]
- Additionally, attitudinal characteristics more clearly define
these commuters. For example:
- "Bold Beginners" are open to new ideas and
experimentation.
- "Easy Goers" tend to keep work and personal
life separate and routine, rather than mixing business and work
schedules throughout the week. They also tend to be motivated
by common-sense reasons for using alternative modes (e.g., saves
on vehicle wear and tear, etc.)
- "Efficiency Drivens" are open to new ideas
that will help them accomplish the many things they are doing.
Alternative modes allow Efficiency Drivens to multi-task on the
way to work.
- In general, the target markets are willing relinquish responsibility
for their commute, in part because their lifestyles may allow
a regimen.
- They also seek sociability, but in varying degrees.
- Evident from these data is also a clearer depiction of the
kinds of commuters who are not in the high propensity target market,
commuters who are virtually unreachable regardless of the products
or marketing.
- The non-targets tend to be of higher socio-economic groups
(based on education, occupation and income), but not exclusively
those factors.
- Attitudinally, these commuters are not open to the idea of
using alternative modes. For example, "Very Independents"
are individualists who must control their schedules as they attempt
to squeeze extra activities into every day.
- Meanwhile "Auto Pilots" are not frustrated
by their commute to begin with and would have little incentive
to change. "Auto Pilots" are not motivated by either
economics or environmental effects of driving alone.
Methodology
This consumer research about transportation was conducted in Fall,
1992, among 2,114 randomly selected adults in California. Qualified
respondents were screened for residence, commute behavior, and
recent participation in marketing research.
The margin of error for this study is 2.13% in 95 out of 100
cases. That is, if 100 identical surveys were conducted simultaneously,
the results in 95 would be the same within the margin of error.
Readers are cautioned that the margin of error is significantly
higher for sub-groups.
Data has been weighted to reflect more accurately the population
of California, according to the 1990 U.S. Census..
APPENDIX A
COMPRESSED DATA TABLES