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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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Jeff Schoenle

CSR 631

November 4, 2008

  • 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
  • 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
  • OnStar is classic example of the aspects of consumer value
  • May also be viewed using consumer choice theory
    • Against competitors or similar products (TomTom)
  • 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.