Tag Archives: consumer behavior

Delivery Direct to Your Car

Have you ever had a problem with delivery of packages? Have you been a victim of ‘porch pirates’ stealing packages before you get home? If so, then you may like the new option for Amazon’s in-car package delivery, placed securely in your trunk or back seat. The service is available to Amazon Prime members who have an active GM OnStar or Volvo On Call account in 37 cities across the U.S.

It seems pretty easy. Using an Amazon app, the customer inputs the information about their car (must be a 2015 or newer Chevrolet, Buick, GMC, Cadillac, or Volvo). For each order, the customer selects a delivery to their car, receives a notification when the delivery is on its way, and another notification after delivery is completed and door/trunk relocked. Delivery people use the car’s assistance services to locate the car and unlock it.

The car delivery service only works for vehicles parked in lots that are easily accessible. It won’t work for parking garages or gated communities. And, if you’re worried about damage to the car, Amazon even said that it will take care of a broken window or lock that happens as a result of the delivery.

Go ahead and order – there are a lot of delivery options, including porch, office, in-home, locker, and now, your car.

Group Activities and Discussion Questions:

  1. Discuss the topics of package delivery. Has anyone had problems?
  2. Show the Amazon information and video about car delivery: https://www.amazon.com/b?ie=UTF8&node=17051031011
  3. CNET video: https://youtu.be/8bZfZZJ7Q4Q
  4. Video of customer testimonials: https://youtu.be/w4akHn0jQCc
  5. Poll students: Would they use this service?
  6. Discuss the importance of clearly defining a target market.
  7. For in-car delivery, what is the target market?
  8. Divide students into teams and have each team develop a target market profile. Include demographics, psychographics, behaviors, values, attitudes, etc.

Source: CNET, New York Times, Wall Street Journal, Detroit Free Press, other news sources

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The Ultimate Vending Machine Contains Cars

What was the last item you purchased from a vending machine? Most consumers purchase convenience items such as drinks and snacks at the ubiquitous machines. Maybe in an airport or mall there might be a vending machine for electronics such as headphones and chargers, movies, or prepared meals for people on the go. And, speaking of “on the go”……..

Alibaba’s Tmall recently unveiled what is possibly the world’s largest vending machine, for the world’s largest car market. The product sold in the machines? Cars!

The automobile vending machine, located in Guangzhou, China, is a partnership between Chinese e-commerce company Alibaba and American car manufacturer Ford Motor. The program offers a three-day test-drive to potential customers shopping for a new car. The giant vending machine contains more than 100 vehicles, including small cars, family cars, sports cars, and SUVs. Cars include those made in China as well as imported from the U.S. The goal for the new program is to improve the car buying process for consumers.

The process starts with a mobile app (of course) called the “Super Test-Drive” app. Consumers use the app to research, browse available models, and select a car and pick-up time. Snapping a selfie picture provides facial recognition that is used to confirm the booking and borrow the car from the vending machine. And, if the customer’s credit score is good enough, then the three-day test-drive is free.

This sounds a lot more fun than just getting a snack from the local vending machine!

Group Activities and Discussion Questions:

  1. Poll students: Where are vending machines? What do they buy form vending machines? Why buy from vending machines?
  2. View video of the process: https://youtu.be/zFDDcTOFkEA
  3. While the buying process may vary slightly for different products and target markets, the basic 5-step process remains the same: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
  4. Does this vending machine fit the model? Or does the model need to change?
  5. Consider assigning different student groups to work on different target markets. Then the process for the different target markets can be compared and contrasted.

Source: Brandchannel.com (26 March, 2018). Alibaba and Ford launch China’s first Tmall car vending machine.

 

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Kitty Hawk’s Air Taxi

It seems that a number of companies are taking to the air and working on new transportation methods. A significant new entry vying for a place in the sky is Kitty Hawk, a company financed by Google co-founder and Alphabet CEO, Larry Page. (Kitty Hawk is run by Sebastian Thrun who started Google’s autonomous car unit as director of Google X.) The company has been working somewhat stealthily in New Zealand, testing a new type of fully electric, self-piloting flying taxis.

New Zealand’s prime minister recently announced that it will test Kitty Hawk’s autonomous planes as part of an official certification process. The goal is to have a commercial network of flying taxis in New Zealand in three years. Things will be somewhat different in the U.S. though; the FAA allows test flights of autonomous vehicles, but there is no path to commercialize at this point in time.

Kitty Hawk’s first plane is Cora, a personal air taxi for everyday use. The plane can take off and land like a helicopter, thus eliminating the need for a runway. It has the potential to land on spaces such as rooftops and parking lots. Cora combines self-flying software with expert human supervision. The all-electric vehicle is a pollution-free way to reduce commute time, and stress. Cora has a flight range of 100 kilometers and can fly 150 km/hour.

Look… up in the air… it’s a bird…. it’s a plan…. It’s Cora!

Group Activities and Discussion Questions:

  1. Discuss the future of transportation. Will it be on the ground?
  2. Show Kitty Hawk’s Web site: https://kittyhawk.aero/
  3. A video of the plane is available at: https://cora.aero/
  4. Discuss the components of an environmental scan: social, technology, economics, competition, and legal.
  5. Ask students what data they would want in order to make a marketing decision for Kitty Hawk.
  6. Divide students into teams. Have each team use laptops to do general for one of the five components of the environmental scan.
  7. Debrief the exercise by compiling information on the white board. Does this give a good picture of the situation faced by Kitty Hawk?

Source:  Sorkin, A. (12 March, 2018). Larry Page’s flying taxis, now exiting stealth mode. New York Times.

 

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