SMART TAG STUDY IN NORTHERN VIRGINIA

SPONSOR:

Virginia Department of Transportation

Contact: Joan Morris, Office of Public Affairs – Northern Virginia

RESEARCH VENDOR:

Siddall, Matus & Coughter, Richmond, VA. Conducted: 2001

Contact: Karen Smith, Ph.D., at Southeastern Institute of Research, Inc.

Telephone: 804-358-8981

Email: KSmith@SIRresearch.com

OVERALL PURPOSE:

This research was designed to identify ways to increase usage of Smart Tag on the Dulles Toll Road.

OBJECTIVES OF RESEARCH:

Ž Determine the level of appeal of Smart Tag

Ž Identify incentives that would be most effective to attract new Smart Tag users

Ž Identify obstacles to using Smart Tag

Ž Identify potential messages that would have the greatest impact on commuters

Ž Determine the extent to which Smart Tag users are also HOV users

METHODOLOGY:

Mode of Data Collection	1) Focus Groups with DTR commuters (Summer 2001): Some users and some non-users of Smart Tag 2) Telephone survey with Smart Tag and Non-Smart Tag users (Fall 2001)
Completed Interviews	Focus groups: 2 groups Telephone survey: Current DTR users who use Smart Tag: n=314 Current DTR users who do not use Smart Tag: n=304 Non-DTR users who could use DTR: n=157 Total sample: n=775
Survey Population	Reside in Dulles Toll Road corridor and adjacent zip codes
Survey Instrument	Moderator’s Guide (focus groups); Questionnaire administered by telephone interviewers for survey.
Criteria for Participation	Reside in Northern VA Age 18-65 Travel at least 3 days/week on DTR in rush hour times and travel through at least 2 interchanges or travel during rush hour and do not use the DTR but could if chose to (No non-DTR users were included in the focus groups).

SELECTED KEY FINDINGS:

Who Uses Smart Tag:

Ž Smart Tag users:

Tended to be slightly older than non-Smart Tag users – Only 5% of Smart Tag users were aged 18-24, compared to 15% of non-users

Were slightly more likely to be employed full-time – 94% of Smart Tag users and 87% of non-users were employed full-time

Had slightly higher levels of education – 76% of users and 67% of non-users had at least one college degree

Had lived in Northern Virginia longer – 65% of users and 57% of non-users had lived in Northern Virginia for 10 years or longer

Were more likely to be Caucasian – 84% of users and 75% of non-users were Caucasian

Ž Smart Tag users were more likely to be traveling on the DTR during rush hour traffic than were non-Smart Tag users. Three-fourths (72%) of Smart Tag users used the DTR at least five days a week. Only 60% of non-Smart Tag users traveled on the DTR at least five days a week.

Perceptions about Smart Tag:

Ž There was some confusion among non-Smart Tag users and non-DTR users about the cost of tolls using Smart Tag. Thirty-nine percent (39%) of non-Smart Tag users and 41% of the non-DTR users did not know that the cost of tolls is the same with Smart Tag. In contrast, only 29% of Smart Tag users did not understand the cost of tolls with Smart Tag.

Ž Smart Tag users were more likely to recognize the benefits of Smart Tag than were non-users. These benefits were:

Do not have to worry about carrying change with Smart Tag (97% for Smart Tag users compared to 55% among non-users)

Smart Tag saves time (94% for users and 53% for non-users)

Smart Tag only lanes move faster (85% for users and 68% among non-users)

Do not have to roll down window (80% among users vs. 46% among non-users)

Smart Tag reduces the stress of commuting (78% among users and 48% among non-users)

Ž Non-users were more likely than users to have some concerns about Smart Tag:

Do not want to make $35 pre-payment (35% among non-users and 24% among users)

Do not want to provide credit card information (35% among non-users and 16% among users)

There are hidden costs (14% among non-users and 4% among users)

Ž Non-users and users shared some concerns about Smart Tag:

Authorities can track travel routes (44% for both users and non-users)

Authorities can identify speeders (24% among users and 23% among non-users)

Ž Neither Smart Tag users nor non-users believed that there are time or day restrictions for using Smart Tag or that Smart Tag is too expensive.

Ž Non-users may be reluctant to purchase Smart Tags because they do not know how. A third (34%) of non-users said that they did not know how to purchase Smart Tag.

Ž How the toll payments are used does not appear to impact usage of the toll road or Smart Tag. Only 2% of Smart Tag users and 3% of non-DTR users believed the funds are for “profit.”

Half of the non-Smart Tag users (48%) believed the funds were used for repair and maintenance of the DTR. Over half (59%) of the non-DTR users believed the funds were used for repair and maintenance.

Increasing the Use of Smart Tag:

Ž 41% of non-Smart Tag users (who currently use the DTR) said they were likely to purchase Smart Tag within the next year (with no incentive). (Only 14% of the non-DTR users planned to get Smart Tag.)

Ž Negative views of Smart Tag do not appear to be preventing use of Smart Tag. The most common reason for not purchasing Smart Tag among non-users was: “I just haven’t gotten around to it.” (26%)

Ž Receiving 5 free tolls for every $20 worth of tolls with Smart Tag would have the greatest impact on non-Smart Tag users. More than three-fourths (77%) of this group said that they would use Smart Tag with this incentive. Receiving one free toll with every 10 tolls purchased with Smart Tag (66%) and reducing the cost of tolls by $.10 (66%) also made use of Smart Tag more attractive.

Ž Without any incentives, 41% of non-Smart Tag users indicated that they would switch to Smart Tag. These commuters represent the group that would be easiest to convert to Smart Tag usage. By using certain incentives, the likelihood that they would convert was increased. Each of five incentives would increase the likelihood of using Smart Tag among members of this group and were less likely than some other incentives to increase traffic on the DTR:

Account balance reduced from $35 to $10

Increase number of Smart Tag only lanes

Reduce toll cost by $.05

Deposit reduced from $15 to $10

Could use the transponder for parking in Washington

OTHER FINDINGS/RECOMMENDATIONS:

Ž To attract new Smart Tag users, marketing must extend beyond demographic groups (Caucasian, higher level of education, long-time residents of Northern Virginia) that already use Smart Tag to reach commuters who perceive that Smart Tag is beyond their “reach.” To be converted to Smart Tag usage, they must know how and where to purchase Smart Tag and how to use it. They must also believe that Smart Tag is affordable. Thus, Smart Tag marketing should include a strong education component.

Ž Misunderstanding about the cost of tolls with Smart Tag does not appear to be preventing adoption of Smart Tag. While it is important that commuters understand that Smart Tag does not impact the price of tolls, this message should not be a major marketing strategy.

Ž Failure to recognize the benefits of Smart Tag appears to be more important in preventing the adoption of Smart Tag than negative perceptions of Smart Tag. Marketing should focus on the benefits of Smart Tag rather than trying to overcome negative perceptions.

Ž Some incentives tested in this research would have little ability to attract new Smart Tag users and should not be incorporated into marketing strategy. These include: required account balance is reduced from $35 to $15 and using the transponder to park at Metro.

Ž The focus groups indicated that non-Smart Tag users seemed not to believe the traffic in Smart Tag only lanes moved any faster than other traffic. A marketing message based on “more Smart Tag only lanes” may not be credible to some non-users.

AVAILABLE DOCUMENTS:

Questionnaire

Data Tables

PowerPoint Presentation

KEY WORDS:

Dulles Toll Road (DTR), incentives, marketing, Smart Tag, tolls, toll road, transponder