SCOOTER SHARING SURVEY

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1 SCOOTER SHARING SURVEY How is scooter sharing best placed in the market based on the marketing mix (4 Ps)? HTW Berlin Master International Business Balmberger, Tina (531148); Pampel, Lisbeth (552268); Schmoz, Johanna (552167); Strauß, Carolin (533032) Prof. Dr. Holger Lütters 02/02/2016

2 Executive Summary In order to explore the urban lifestyle and the novel phenomenon scooter sharing, a survey with 169 participants was conducted. Out of the 169 participants, 98 complete responds were evaluated. The aim of the survey was to find out how scooter sharing can be best placed within the market based on the marketing mix. According to the survey, scooter sharing operators should offer Vespa and eco-friendly scooters. The price for 15 minutes can be set at 3.75 and the demand for scooter sharing is highest in cities with more than one million inhabitants. The target group was identified as people of any age who would like to have a vehicle for a fun ride through the city. Key findings include that the willingness to pay for scooter sharing is almost as high as for car sharing (only 10 % down). As scooter sharing comes with way lower costs compared to car sharing, the expected profit margin of scooter sharing exceeds the one of car sharing by far (assuming all other factors being equal). Scooter sharing has the potential to open up new markets in smaller cities in the future as already every third citizen living in cities under 1 mil. inhabitants would consider to register. Scooter sharing services might apply push strategy in order to increase demand in rural areas

3 Introducing the research team: Tina Balmberger Lisbeth Pampel Johanna Schmoz Carolin Strauß

4 Driven by a specific research question How is scooter sharing best placed in the market based on the marketing mix (4 Ps)?

5 Motivated from the novel sharing culture We are students of MIB who are convinced that sharing culture will become an important part of urban lifestyle. Therefore, we want to examine the novel phenomenon of scooter sharing. -Carolin, Johanna, Lisbeth & Tina- 4

6 And the lack of research on that topic Focus of current research: Sustainability Focus of our research: Market Placement No research on market placement of scooter sharing found - Only on Sustainability: Prata & Arsenio, 2014 Cost-Benefit Analysis of future vehicle technologies: Exploring electric vehicle sharing schemes and intermodality Cornet, 2012 Sustainability Screening tool for decision-making assistance in the field of urban mobility Product: Which brand and engine of scooter? Price: Willingness to pay of customers? Promotion: How can we best address potential customers (target group)? Place: In which cities should scooter sharing be offered?

7 Supported by the following programs Ration of Questionnaire Significance Test Graphical Evaluation of Data

8 Questfox used to create questionnaire 1. Start with screen-out questions Do you have a driver s license? 2. General questions on scooter sharing behavior 3. Questions to test hypothesis Various question types used: Single Choice Multiple Choice Decision Tree Net Promoter Score Sort items in ranking Price Sensitivity Meter 4. Demographic questions in the end

9 And to design the questionnaire Aim to create a short, simple and attractive questionnaire Compressed images used to ensure accurate visualization on each mobile device Intro page designed cheerful to attract participants Establishing connections to scooters: Pictures of scooters whenever suitable Scooter symbol for slider

10 Data sampling methods applied Aim to reach men and women above 18 years from all parts of Germany who have a driver s license Sampling size n=100 (±5%) Invitation Methods: Posts on Facebook and LinkedIn wall Personal invitation via , Whatsapp and Facebook Survey was online for 11 days Only responds with consistency < 0.5 taken into account

11 Response Management implemented to analyze response rate 3,55% 5,33% Responses with consistency rate >0.5 are not considered for evaluation due to the possibility of falsified results 57,99% Drop outs; n=56 Interview fully completed / Consistency < 0.5; n=98 Interview fully completed / Consistency > 0.5; n=6 Sreened out; n=9 33,14% 55% after entering the Intro Page Possible reasons for dropout: Language barrier Not attracted Program failure

12 Responses by distribution channels 80% 70% 68% 60% 50% 40% 30% 20% 10% 0% 19% 9% 2% Facebook Whatsapp Linkedin Facebook: 68; Whatsapp: 19; 9; Lindedin:

13 And the demographic of participants Gender Size of Place of Residence Female 51% 1,000,000 59% Male 47% >1,000,000 37% No answer 2% I do not know 4% 0% 10% 20% 30% 40% 50% 60% 0% 10% 20% 30% 40% 50% 60% Female: n = 49; Male: n = 45; No answer: n = 2 >1,000,000: n = 58; =<1,000,000: n = 36; I do not know: n = 4 15% 10% 5% 0% Age >40 n=98 12

14 Research conducted to support / reject four hypotheses PRODUCT HYPOTHESES 1: HP 1.1 People are more driven to use the brand Vespa than any other. HP 1.2 People value feature `eco-friendliness more than speed and design. PLACE HYPOTHESIS 2: HP 2 People from cities with over 1,000,000 inhabitants are more likely to use scooter sharing than people from places with less than/equal 1,000,000 inhabitants. PRICE HYPOTHESIS 3: HP 3 The willingness to pay for scooter sharing is lower than for car sharing. PROMOTION HYPOTHESES 4: HP 4.1 Scooter sharing attributes females more than males. HP 4.2 Scooter sharing attributes users 30 years more than users > 30 years. HP 4.3 The main reason to use scooter sharing is to have fun riding through the city. 13

15 People are more driven to use the brand Vespa than any other (Hypothesis 1.1) Frequency of scooter brand preferences Rank 1 Only the position 1 of the ranking of scooter brands according to preference was considered during the following evaluation. Vespa Simson 11% 71% Of 89 total respondents, 71% (63 respondents) ranked Vespa as the top brand against the scooter brands: Emco, Zip, Aprilia and Simson. Hypothesis supported. Aprilia Zip Emco 4% 4% 9% n=89 People prefer to use the brand Vespa over Simson, Aprilia, Zip and Emco. 14

16 People value feature eco-friendliness more than speed and design (Hypothesis 1.2) Importance of product features: eco-friendliness, speed and design The 98 total respondents rated eco-friendliness with 37% as most important of the product features ecofriendliness, speed and design. Eco-friendliness is closely followed by the product feature speed with 36%. Eco-friendliness Speed 36% 37% Hypothesis supported. Design 27% n=98 People prefer to use an electric scooter, but speed is also of high importance

17 People from cities with over one million inhabitants are more likely to use scooter sharing than people from places with less than/equal one million inhabitants (Hypothesis 2) Usage of scooter sharing Out of the 94 total respondents, 36 respondents are from a place 1 Mio. and 58 respondents over 1 Mio. inhabitants. 1 m inhabitants 97% Of the 36 respondents 1 Mio. inhabitants, 3% (1 respondent) answered Yes to be registered at a scooter sharing company. Of the 51 respondents > 1 Mio. inhabitants, 12% (7 respondents) answered Yes to be registered at a scooter sharing company. > 1 m inhabitants 3% 12% 88% Hypothesis supported. No Yes 1 Mio. (n=36) / > 1 Mio. (n=58)

18 People from cities with over one million inhabitants are more likely to use scooter sharing than people from places with less than/equal one million inhabitants (Hypothesis 2) Willingness to register for scooter sharing Out of the 85 total respondents, 34 respondents are from a place 1 Mio. and 51 respondents over 1 Mio. inhabitants. 1 m inhabitants 68% Of the 34 respondents 1 Mio. inhabitants, 32% (11 respondents) answered Yes to be willing to register at a scooter sharing company. 32% 53% Of the 51 respondents > 1 Mio. Inhabitants, 47% (24 respondents) answered Yes to be willing register at a scooter sharing company. > 1 m inhabitants No Yes 47% Hypothesis supported. 1 Mio. (n=34) / > 1 Mio. (n=51) People from cities with over 1,000,000 inhabitants are more likely to use scooter sharing than people from places with less than/equal 1,000,000 inhabitants

19 The willingness to pay for scooter sharing is lower than for car sharing (Hypothesis 3) Willingness to pay for scooter sharing When asking the 98 respondents to specify which price is too cheap, cheap, expensive, and too expensive for using the service scooter sharing for 15 minutes, the average price of 3.75 Euro was determined. The acceptable price range for 15 minutes scooter sharing is between 2.80 and 4.30 Euro. Every price below or above the range is either too cheap or too expensive. n=98 18

20 The willingness to pay for scooter sharing is lower than for car sharing (Hypothesis 3) Willingness to pay for car sharing When asking the 98 respondents to specify which price is too cheap, cheap, expensive, and too expensive for using car sharing for 15 minutes, the average price of 4.15 Euro was determined. The acceptable price range for 15 minutes car sharing is between 3.90 and 5.40 Euro. Every price below or above the range is either too cheap or too expensive. Hypothesis supported. The willingness to pay for scooter sharing is lower than for car sharing. n=98 19

21 Scooter sharing attributes females more than males (Hypothesis 4.1) Female and male scooter sharing users Out of the 94 total respondents, 49 respondents were female and 45 respondents were male. Of the 49 female respondents 8% (4 females) responded Yes when asked if they were registered for a scooter sharing service. Of the 45 male respondents 9% (4 males) responded Yes when asked if they were registered for a scooter sharing service. 92% Females 8% 91% Males 9% 0% 20% 40% 60% 80% 100% No Yes Females (n=49)/ Males (n=45) 20

22 Scooter sharing attributes females more than males (Hypothesis 4.1) Willingness of females and males to register for scooter sharing Out of the 85 total respondents, 45 respondents were female and 40 respondents were male. Of the 45 female respondents 33% (15 females) responded Yes when asked if they are willing to register for a scooter sharing service. Of the 40 male respondents 45% (18 males) responded Yes when asked if they are willing to register for a scooter sharing service. Hypothesis not supported. Females Males Scooter sharing attributes males more than females. No 33% Yes 45% 55% 67% Females (n=45)/ Males (n=40) 21

23 Scooter sharing attributes users under/equal to 30 years more than users over 30 years (Hypothesis 4.2) Usage of scooter sharing according to age groups Out of the 98 total respondents, 69 respondents were under/equal 30 years and 29 respondents were over 30 years. 30 years 7% 93% Of the 69 under/equal 30 years users 7% (5 respondents) responded Yes when asked if they use a scooter sharing service. > 30 years 90% Of the 29 over 30 years users 10% (3 respondents) responded Yes when asked if they use a scooter sharing service. 10% No Yes 30 years (n=69)/ > 30 years (n=29) 22

24 Scooter sharing attributes users under/equal to 30 years more than users over 30 years (Hypothesis 4.2) Out of 89 total respondents, 63 respondents were under/equal 30 years and 26 respondents were over 30 years. Of the 63 under/equal 30 years users 40% (25 respondents) responded Yes when asked if they are willing to use a scooter sharing service. Of the 26 under/equal 30 years users 38% (10 respondents) responded Yes when asked if they are willing to use a scooter sharing service. Willingness to use scooter sharing according to age groups 60% 30 years 40% 62% > 30 years 38% No Yes Hypothesis not fully supported. 30 years (n=63)/ > 30 years (n=26) Currently, Scooter sharing attributes less users under/equal to 30 years than users over 30 years. However, the potential to register for a scooter sharing service is slightly higher for users under/equal to 30 years. 23

25 The main reason to use scooter sharing is to have fun riding through the city (Hypothesis 4.3) Purpose of using scooter sharing The 98 respondents rated the activities using a scooter on a scale from 0 (not at all) to 10 (totally). To have fun riding through the city To visit friends and family 5,6 6,5 On average, the activity To have fun riding through the city was rated 6.5. As shown in the right hand figure, the activity was rated the most favourite activity to use a scooter for. To go to work/home/university To pick up your crush for a date To go out (restaurant, clubbing, etc.) 4,0 4,5 5,5 Hypothesis supported. To go shopping 3, n=98 The main reason to use scooter sharing is to have fun riding through the city. 24

26 Summary of Findings PRODUCT 71% (63 respondents) ranked Vespa as the top brand against the scooter brands: Emco, Zip, Aprilia and Simson. Eco-friendly scooter are preferred, but speed is of high importance as well. PLACE People from urban areas (>1,000,000) are more likely to use scooter sharing. PRICE The willingness to pay for scooter sharing is lower than for car sharing. However, people would pay an average price of 3.75 Euro for 15 minutes scooter sharing. That s only 0.40 Euro less than for car sharing (4.15 Euro). PROMOTION Scooter sharing attributes slightly more males than females. Scooter sharing attributes almost equally people under and over 30 years. Scooter sharing is used to have fun riding through the city. 25

27 Answering Research Questions How is scooter sharing best placed in the market based on the marketing mix (4 Ps)? Price: 3.75 for 15 min Promotion: Marketing should be addressed to males and females independently of age, who enjoy having a fun ride through the city Place: Cities with more than one million inhabitants Product: Vespas and eco-friendly scooters (electro scooters) 26

28 Implication for scooter sharing services Adressing target group (Promotion) Marketing is more effective if target group is addressed. Men are more likely to use scooter sharing than women (45% of men). Still, every third women is interested in scooter sharing. Hence, women should not be excluded from target group, as potential customers might get lost when promotion is menoriented. High profit margin possible (Price) Willingness to pay for scooter sharing is almost as high as for car sharing (average of 3.75 /15 min. for scooters and 4.15 / 15 min. for cars). Nevertheless, costs for scooter sharing are much lower (e.g. lower acquisition costs of vehicle, gas consumption, insurance costs). Therefore, higher profit margin can be derived (if all other factors are equal). 27

29 Implication for scooter sharing services Potential expansion options (Place) Almost every second citizen of cities with more than 1 mil. inhabitants would consider to register with scooter sharing. Only every third citizen of cities with less than 1 mil. inhabitants would consider to register. Currently, scooter sharing services should focus on cities with more than 1 mil. inhabitants. Potential to expand to cities with less than 1 mil. inhabitants in future, once the service is more popular. And / or scooter sharing need to apply push-strategy in rural areas. Assortment of scooters (Product) People value the brand Vespa and ecofriendly scooters most. Vespas are not produced with electro engines. However, some firms have specialized installing electro engines in Vespas. In order to attract customers, Vespas with installed electro engine should be offered. Emco, though, comes with an electro engine in series. Even though the respondents value eco-friendliness the most, they did not rate the ecofriendly Emco scooters as their favorite. The brand awareness of Emco is probably too low. 28

30 Critical Reflection Drop-Out Rate of 55% after Intro-Page: More accurate definition of `Scooter sharing More attractive Intro-Page Feedback of Participants: Questions on willingness to pay for scooter sharing and car sharing are asked too close in succession Even though participants said they would not use scooter sharing, they were asked for what purposes they would use the service Many drop-outs due to English language No Back -Button 29

31 To conclude Survey reveals valuable information for scooter sharing services All hypotheses could be either supported or disproved Research question could be answered and implication for scooter sharing operators derived But: Sample size might be too small Survey include only 98 valid reply form. 30

32 Press Release Is Scooter Sharing the new Car Sharing? After car sharing has established well within the urban lifestyle, scooter sharing services want to follow up on that success. Some firms have already started scooter sharing operations in German metropolis. Each firm, though, has its own strategy to place the service on the market. A recent survey, conducted by students of HTW Berlin, reveals valuable information in terms of the optimal market placement of scooter sharing on the basis of the marketing-mix (4 Ps). The survey suggests that scooter sharing services should offer the brand Vespa and eco-friendly scooters. The willingness to pay for such a service is only a bit lower compared to car sharing. Considering the fact, that costs of scooter sharing are way below the costs of car sharing, huge profit margins can be derived from scooter sharing. The ideal target group is very broad, including all people at any age who like to chose scooter sharing in order to have a fun ride through the city. The survey also points out that demand for such a service is highest in cities with more than 1,000,000 inhabitants. Further, scooter sharing has the potential to expand to cities with less than 1,000,000 inhabitants, as already every third inhabitant would consider to register. 31

33 Communication Further links to the infographic, survey content, final report, presentation and press release can be found here: 32

34 References Cornet, H. (2012). Sustainability screening tool for decision-making assistance in the field of urban mobility. Retrieved from: [Accessed on 25/01/2016]] Prata, J. & Arsenio, E. (2014). Cost-Benefit Analysis of future vehicle technologies: exploring electric vehicle sharing schemes and intermodality. Retrieved from: [Accessed on 25/01/2016]] 33

35 Annex QUESTIONNAIRE 34

36 Annex QUESTIONNAIRE D *Demographic D 35

37 Annex RESPONSE MANAGEMENT REPORT 36

38 Annex 37

39 Annex Daily Response Overview - Graphical Illustration Total number Completed

40 Annex 39

41 Annex 40

42 Annex 41

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