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OnStar. Jeff Schoenle CSR 631 November 4, 2008. Topics. OnStar Company Overview Technology Product Services Consumer Behavior Theories Theory Marketing Strategies Conclusion. Company Overview. Owned and operated by General Motors Corporation

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Onstar

OnStar

Jeff Schoenle

CSR 631

November 4, 2008


Topics

Topics

  • OnStar

    • Company Overview

    • Technology

    • Product Services

  • Consumer Behavior Theories

    • Theory

    • Marketing Strategies

  • Conclusion


Company overview

Company Overview

  • Owned and operated by General Motors Corporation

    • OnStar services are optional on approximately 50 different GM vehicles

      • Chevy, Buick, Pontiac, GMC, Hummer, Saab, Cadillac, Saturn

  • Paired with Verizon Wireless cellular service

    • Can tie in OnStar service to your wireless plan

  • Formed in 1995 through partnership between GM, Hughes Electronics Corp., and Electronic Data Systems

    • Companies worked together in designing software and hardware in order to bring the OnStar service online


Technology

Technology

  • Works with GPS and cellular communication technology

  • Cellular antenna is located in vehicle

    • Sends signal to OnStar Center

    • Can talk with representative at center 24/7/365 via microphone located in cabin

  • GPS determines location of the vehicle to aid in response

  • Three Button System

    • White button on left controls hands-free calls

      • If You Need To Make An Important Phone Call

    • Blue button in middle connects you with an OnStar representative

    • Red button on right signals an emergency


Product services

Product Services

  • Vehicle Diagnostics

    • Monthly reports on your vehicle’s diagnostics

    • Reports available on demand

  • Turn-By-Turn Navigation

    • Voice-guided directions from one location to a destination

  • Automatic Airbag Deployment Response

    • Representative will try to contact you in vehicle if airbags deploy

  • Emergency Services

    • Can notify emergency services if accident occurs

  • Crisis Assist

    • Can help you in case of poor weather or natural disaster

  • Stolen Vehicle Assistance

    • Can help locate your vehicle if stolen

    • Stolen Vehicle Slowdown Technology

  • Remote Door Unlock

    • Locking keys in your car

  • Roadside Assistance

    • Flat tire, out of gas, blown engine – NO PROBLEM!

  • Accident Assist

    • For fender benders


Product services cont

Product Services (cont.)

  • Ride Assist

    • Can help you find a ride if you are unable to drive

    • If This Looks Like You

  • Information/Convenience Services

    • Hotel or restaurant recommendations

  • Remote Horn and Lights

    • Locate your vehicle if you forgot where you parked it

  • Virtual Advisor

    • Local traffic and weather, stock updates

  • Driving Directions

    • Connect with a real person for directions to your destination


Marketing strategies

Marketing Strategies

  • Target Market

    • Car owners/buyers or prospective car owners/buyers

    • On-the-go population

      • Families

      • Working adults

      • Sales reps

    • Travel enthusiasts

      • Those taking long or frequent trips

  • Impacts of Consumer Behavioral Traits

    • Want to feel secure

    • Want to feel like part of community

    • Want to feel important

    • Want to feel like they are receiving more value than they are giving up

      • Cost/Benefit basis


Marketing strategies1

Marketing Strategies

  • Possible New Markets

    • Small businesses

      • Pizza/Food delivery

      • Package Delivery Services

      • Possibly work with computer companies to develop transitional software for these businesses

    • Other Car Companies

      • Currently only available on GM vehicles

      • Sell services to competitors

  • Reduce Cost

    • Price currently set at $18.95/month or $199/year

    • Affordability

    • Luxury Item

    • Economic Troubles


Consumer behavior theory

Consumer Behavior Theory

  • Consumer Value

    • Consumer value is defined as an interactive relativistic preference experience (Hilliard 1950)

    • These four aspects are interrelated

    • Each aspect can influence the others

  • Interactive

    • Involves an interaction between the consumer and the product

  • Relativistic

    • Consumer value is comparative, personal, and situational

    • “It was nice, but just wasn’t for me. I suppose it would be good for people who get in accidents or get lost easily or have car problems, but it wasn’t for me and wasn’t worth the price.” – Shelley Poznic (Portage, IN)

  • Preference

    • Consumers have preferences based on value judgments

  • Experience

    • Consumer value resides in the consumption experience


Consumer value

Consumer Value

  • Extrinsic vs. Intrinsic

    • Receive value from consumption results, achievement of goals

    • Receive value from the act of consuming

  • Self-Oriented vs. Other-Oriented

    • Value the consumption for the benefit it gives to yourself

    • Value the consumption for the benefit it gives to another party

  • Active vs. Reactive

    • A physical or mental interaction with the object or product

    • Responding to something done or caused by the object or product


What do you think

What Do You Think?

  • What category (categories) do you believe OnStar will fit into?


My thoughts

My Thoughts

  • Efficiency

    • Convenient one touch buttons

    • Hands free dialing

    • Directions to get you where you need to go quicker

    • Notices about traffic and weather

    • Diagnostic checks on vehicle condition

  • Excellence

    • Can give you hotel and restaurant recommendations

    • Search for quality

  • Spirituality

    • Stolen Vehicle Slowdown

    • Emergency Assist

      • Feeling of safety and security for family or other passengers


Conclusions

Conclusions

  • OnStar is classic example of the aspects of consumer value

  • May also be viewed using consumer choice theory

    • Against competitors or similar products (TomTom)


Sources

Sources

  • Information about OnStar can be found at the OnStar website or on the General Motors website

  • Information pertaining to Consumer Value was found in the article “Consumer Value: A Framework for Analysis and Research”; Morris B. Holbrook, 1999.


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