Northern Virginia Vanpool AdVantage Program Product Development Research Study

1
Northern Virginia Vanpool AdVantage
ProgramProduct Development Research Study
June 22, 2004
Southeastern Institute of Research
Pulsar Advertising Team
2
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

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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

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Typical Vanpool Characteristics
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Profile Of Respondents Their Vanpool

• Who Drives the Vanpool
• Respondent 75
• Designated Driver 41
• Some Other Person 22
• Who Owns the Van
• Respondent or Family Member 56
• Leasing Agency 28
• Private Party 9
• Employer 1
• Other 6

• Average Age of the Van
• 4 Years
• Average Round Trip Distance
• 92 Miles
• Average Van Seating Capacity
• 13 (including driver)
• Type of Insurance
• Commercial-type 63
• Family 20
• Uncertain 17
• Van Depreciation
• 44 take depreciation

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Additional Characteristics

• Vanpool Accidents
• 17 have been involved in an accident in the past
  5 years
• Most Travel I-95
• I-95 81
• I-66 13
• Dulles Toll Road 3
• Other 4
• Average number currently riding in vanpool
• 11 (including driver)

• Average Monthly Fare
• 120 (per passenger)
• Average Number Receiving Metrocheck vouchers or
  other employer provided subsidies
• 9 passengers

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Average Vanpool Operating Costs

• Per Month
• 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

• Per Year
• 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

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Vanpool Owners/Operators Overall Interest In
Participating In The Vanpool Incentive Program
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65 Would Be Interested In The Program If It Were
Available Today42 Would Be Very Interested
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?
10
VPSI Drivers May Be Slightly More Interested In
the Program
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?
11
Realistic Level of Demand 1 Out of 4Applying 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
Demand Discount Model 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
who say they are Very interested plus 25 of
those who say somewhat interested in the
product concept.
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?
12
Key Finding 1 There Is Great Interest In This
Vanpool Incentive Program

• Strategic Implication
• Proceed With Program Launch This program Will
  Work!

13
The Impact Of The Monthly Subsidy Benefit
14
The Longer The Round Trip Distance The Greater
The Interest In The ProgramRespondents Knew The
Greater The Distance Traveled, The Greater The
Subsidy
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?
15
Overall, The More Subsidy A Vanpool Qualifies
For, The More Interested They Are In The
ProgramChart reflects ratings of 4 or 5 only
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?
16
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.
17
Interest In Insurance Subsidies Versus Monthly
Monetary Subsidies Is Split
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 vans insurance
costs with you? Data represents only 69
respondents or 62 of the total sample
18
VPSI Members Appear To Be Less Interested In
Insurance AssistanceThese numbers, however, are
not statistically significant due to the small
sample size
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 vans insurance
costs with you? Data represents only 69
respondents or 62 of the total sample
19
Few Would Choose Reduced Insurance Rates Over A
Monthly SubsidyThough 31 have no preference
Q 15b If you had a choice, which would you
prefer to receive, a monthly subsidy (as
determined by your vans size, age, and daily
round trip distance) or a reduced rate on your
vans commercial-type insurance? Data
represents only 69 respondents or 62 of the
total sample
20
Few Owner/Operators Would Prefer Reduced Insurance
Q 15b If you had a choice, which would you
prefer to receive, a monthly subsidy (as
determined by your vans size, age, and daily
round trip distance) or a reduced rate on your
vans commercial-type insurance? Data
represents only 69 respondents or 62 of the
total sample
21
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.

22
Vanpool Owners/Operators Willingness To Meet
The Requirements Of The Proposed Vanpool
AdVantage Program
23
Owners/Operators Are Willing To Embrace The
Contract Requirements Of The Vanpool ProgramBut
There May Be Some Challenges With Insurance
Contract Requirements
Q 13a How willing are you to ?
24
Most Vanpools Currently Meet the Program
Eligibility Requirements
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?
25
Those Qualifying For A Smaller Subsidy Are Less
Willing To Limit Personal Van Use Or Provide
Adequate InsuranceChart reflects ratings of
very or somewhat willing only
Q 13a How willing are you to ?
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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.

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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.

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Opportunity Target Who Is Most Interested In The
Vanpool Incentive Programs
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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

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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.

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Vanpool Owners/Operators Views On Program
Reporting Requirements
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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

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Monthly Attendance Form
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Monthly Expense Form
35
Vehicle Trip Sheet
36
Operator Monthly Fares/Revenue Form
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Three Quarters Have No Problem Reporting This
Kind Of Information To The Federal GovernmentHow
willing are you to have this information
submitted to the Federal Government?
Q. 14 How willing are you to have this
information submitted to the Federal Government?
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The More Frequent The Reporting Requirement, The
Less Willing Potential Participants Are To Comply
With Requirements
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?
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Overall, Those Interested In The Program Are
MoreWilling To Comply With Reporting
RequirementsChart reflects an average of
somewhat and very willing ratings for all
form requirements
Q 14 How willing are you to comply with the
requirements currently under consideration for
this report as a condition to participation?
40
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
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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.

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Views On Data Submission
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Program Interest Would Decrease For Some If A
Signature Were Required In Filing The Reports
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?
44
Requiring A Signature Would Have Little Affect On
Those Already Interested In The Program
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?
45
Owners/Operators Prefer Electronic Data
SubmissionTop 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.
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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.

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Changes Or Improvements To Generate More Interest
In Program Participation
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The Amount Of Paperwork Is the 1 Issue
Q. 17 What changes or improvements would need
to be made to make you more interested in
participating in this Vanpool Incentive Program?
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Other Program Suggestions/Improvements

• Other responses
• No adverse tax consequences
• Drop the need for commercial insurance.
  Insurance agencies dont 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

50
Key Finding 8 There is too much paperwork
associated with this program.

• Strategic Implication
• Look for ways to reduce the paperwork burden.

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Miscellaneous Issues And Challenges For Vanpool
Owners/Operators
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HOV Lane Usage Is the Greatest Benefit To
Operating Or Driving A Vanpool
Q 29 What would you say is the one greatest
benefit to you operating (operating or driving,
or both) a vanpool?
53
Saving Time And Money Most Influenced
Respondents To Become A Vanpool Driver/Operator
Q 28 What factors most influenced you to become
a vanpool driver/operator?
54
New Rider Recruitment Presents Vanpool
Owners/Operators With Their Greatest Challenge
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?
55
HOT Lanes May Impact Vanpools
Q 27 What do you think would happen to your
vanpool if HOT lanes were introduced in the
Northern Virginia area?
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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.

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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.

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Recap Key Recommendations

• Proceed With Program Launch There is great
  interest
• Find a way to increase program appeal for those
  currently qualifying for a minimal subsidy
• The program can work as designed
• Investigate further the attractiveness of an
  insurance subsidy, as opposed to a monetary
  subsidy
• Focus on early adopters in order to build the
  program

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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

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Thank You