Millennials flocked to Facebook and smartphones, eventually influencing the older generation to follow suit. According to a recent study, the same effect could work in the auto market.
A new study reveals that Millennials could be a key demographic for automakers when it comes to adoption of new technology.
The analysis from GfK and the Consumer Electronics Association provides evidence that Millennials are poised to become early adopters of a whole range of other types of new technology in cars and will pay for it if they can, Forbes reports.
Car companies can benefit from putting new technology into less-expensive cars, the study suggests. This tactic could work to hook early-adopting, young consumers with the same effect eventually rising to older generations.
"Younger people tend to be technology adopters, but the industry typically has started with higher-priced vehicles and then come down," Jeff Campana, senior vice president of the automotive team for GfK, told Forbes. "But if you think about other fields, such as smartphones and tablets, that all actually started with young people. They're the technology leaders."
Even though Millennials have less money than their older counterparts, the GfK study showed that "they would be willing to pay more out of the budgets they have" for the right features in a car, Campana said. "That's why they're all running around with iPhones."
Underemployment and joblessness have been hallmarks of the Millennial generation, but research found the 18-35 demographic would still be willing to spend money on new technology in cars.
Besides smartphone and Internet connectivity, younger consumers are interested in what the firm called "well-being" features and devices, including systems to keep drivers from falling asleep, vital-sign monitors and massaging seats to prevent muscle fatigue.
Millennials are also attracted to features that benefit passengers.
"They're more likely to be passengers," Campana said, "and so they're not as satisfied about being in the vehicle as passengers."
Younger consumers also wanted systems that would allow them to be connected by the car to their smartphones or tablets.
"It's about being able to do things while you're in the car," Campana said. "When they get in a car now as a passenger, it's dead time to them."
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