1. Northern Virginia Vanpool AdVantage Program Product Development Research Study Pulsar Advertising Team Southeastern Institute of Research June 22, 2004

2. The Pulsar Advertising Team Southeastern Institute of Research 2 Background & Methodology A quantitative online research study among those identified by MWCOG, RADCO, VPSI, and PRTC as Vanpool Owners/Operators Interviewing conducted April 22 – June 8, 2004 This report based on 111 completed interviews Maximum statistical error is +/- 8.0%

3. The Pulsar Advertising Team Southeastern Institute of Research 3 Objective The overall study objective: –Determine existing vanpool operators’/drivers’ willingness to participate in the AdVantage Vanpool Program given the requirements associated with participation and the financial incentives offered. Specific objectives include: –Gauge awareness and understanding of AdVantage Vanpool Program –Identify various costs of managing existing vanpools –Assess and rate paperwork/reports associated with AdVantage Vanpool Program requirements –Identifying the defining characteristics of best prospects for AdVantage Vanpool Program

4. Typical Vanpool Characteristics

5. The Pulsar Advertising Team Southeastern Institute of Research 5 Profile Of Respondents & Their Vanpool Who Drives the Vanpool: –Respondent: 75% –Designated Driver: 41% –Some Other Person: 22% Who Owns the Van: –Respondent or Family Member: 56% –Leasing Agency: 28% –Private Party: 9% –Employer: 1% –Other: 6% Average Age of the Van: –4 Years Average Round Trip Distance: –92 Miles Average Van Seating Capacity: –13 (including driver) Type of Insurance: –Commercial-type: 63% –Family: 20% –Uncertain: 17% Van Depreciation: –44% take depreciation

6. The Pulsar Advertising Team Southeastern Institute of Research 6 Additional Characteristics Vanpool Accidents: –17% have been involved in an accident in the past 5 years Most Travel I-95: –I-95: 81% –I-66: 13% –Dulles Toll Road: 3% –Other: 4% Average number currently riding in vanpool: –11 (including driver) Average Monthly Fare: –$120 (per passenger) Average Number Receiving Metrocheck vouchers or other employer provided subsidies: –9 passengers

7. The Pulsar Advertising Team Southeastern Institute of Research 7 Average Vanpool Operating Costs Per Month –Lease/cost payment: $ 771 –Fuel: $ 268 –Maintenance: $ 169 –Insurance: $ 164 –Personal Property Tax: $ 119 –Parking: $ 72 –Parking Subsidy: $ 44 –Cleaning: $ 21 –License Plates: $ 14 –Other Expenses: $ 48 Per Year –Lease/cost payment: $ 8,056 –Fuel: $ 2758 –Maintenance: $ 1447 –Insurance: $ 1915 –Personal Property Tax: $224 –Parking: $ 640 –Parking Subsidy: $ 434 –Cleaning: $ 217 –License Plates: $ 48 –Other Expenses: $ 543

8. Vanpool Owners’/Operators’ Overall Interest In Participating In The Vanpool Incentive Program

9. The Pulsar Advertising Team Southeastern Institute of Research 9 65% Would Be Interested In The Program If It Were Available Today 42% Would Be Very Interested Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?

10. The Pulsar Advertising Team Southeastern Institute of Research 10 VPSI Drivers May Be Slightly More Interested In the Program Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?

11. The Pulsar Advertising Team Southeastern Institute of Research 11 Realistic Level of Demand: 1 Out of 4 Applying A Discount Model To Level of Interests Suggests That The Potential Market For The Vanpool Incentive Program Could Be As High As 25% Of Those Not Part Of The VPSI Program Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today? Demand Discount Model A more realistic potential for market demand can be obtained by applying a standard demand forecasting discount model where market potential equals 50% of those who say they are “Very interested” plus 25% of those who say “somewhat interested” in the product concept.

12. Key Finding #1: There Is Great Interest In This Vanpool Incentive Program Strategic Implication Proceed With Program Launch – This program Will Work!

13. The Impact Of The Monthly Subsidy Benefit

14. The Pulsar Advertising Team Southeastern Institute of Research 14 The Longer The Round Trip Distance The Greater The Interest In The Program Respondents Knew The Greater The Distance Traveled, The Greater The Subsidy Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?

15. The Pulsar Advertising Team Southeastern Institute of Research 15 Overall, The More Subsidy A Vanpool Qualifies For, The More Interested They Are In The Program Chart reflects ratings of ‘4’ or ‘5’ only Q. 15: Remembering back to the estimated subsidy, and now that you have a better understanding of the program and its requirements and associated forms, how interested would you be in participating in this Vanpool Incentive Program if it were available to you today?

16. The Following Two Slides Report On Two Questions About Insurance Subsidies As An Alternative To Monthly Subsidies. These Two Questions Were Added At The Last Minute During The Completion Of The Fieldwork. Due To This Timing, Only 17 Respondents Answered These Questions As Part Of The Complete Survey. An Additional 52 Respondents Complied With A Follow-up Email Requesting Their Feedback To The Questions.

17. The Pulsar Advertising Team Southeastern Institute of Research 17 Interest In Insurance Subsidies Versus Monthly Monetary Subsidies Is Split * Q 15a: Contingent on your vanpool having adequate commercial-type insurance, with a minimum liability coverage no less than $2,000,000, how interested would you be in participating in this Vanpool Incentive Program if, rather than receiving a monthly subsidy payment, we were to reduce your insurance burden by sharing up to half of your van’s insurance costs with you? * Data represents only 69 respondents or 62% of the total sample

18. The Pulsar Advertising Team Southeastern Institute of Research 18 VPSI Members Appear To Be Less Interested In Insurance Assistance * These numbers, however, are not statistically significant due to the small sample size Q 15a: Contingent on your vanpool having adequate commercial-type insurance, with a minimum liability coverage no less than $2,000,000, how interested would you be in participating in this Vanpool Incentive Program if, rather than receiving a monthly subsidy payment, we were to reduce your insurance burden by sharing up to half of your van’s insurance costs with you? * Data represents only 69 respondents or 62% of the total sample

19. The Pulsar Advertising Team Southeastern Institute of Research 19 Few Would Choose Reduced Insurance Rates Over A Monthly Subsidy* Though 31% have no preference Q 15b: If you had a choice, which would you prefer to receive, a monthly subsidy (as determined by your van’s size, age, and daily round trip distance) or a reduced rate on your van’s commercial-type insurance? * Data represents only 69 respondents or 62% of the total sample

20. The Pulsar Advertising Team Southeastern Institute of Research 20 Few Owner/Operators Would Prefer Reduced Insurance Q 15b: If you had a choice, which would you prefer to receive, a monthly subsidy (as determined by your van’s size, age, and daily round trip distance) or a reduced rate on your van’s commercial-type insurance? * Data represents only 69 respondents or 62% of the total sample

21. Key Finding #2: The Greater The Subsidy, The Greater The Interest. Strategic Implication Look for ways to increase program appeal for those slated to receive a smaller subsidy, i.e. vanpools with older vans that travel shorter distances and carry fewer passengers.

22. Vanpool Owners’/Operators’ Willingness To Meet The Requirements Of The Proposed Vanpool AdVantage Program

23. The Pulsar Advertising Team Southeastern Institute of Research 23 Owners/Operators Are Willing To Embrace The Contract Requirements Of The Vanpool Program But There May Be Some Challenges With Insurance & Contract Requirements Q 13a: How willing are you to: …?

24. The Pulsar Advertising Team Southeastern Institute of Research 24 Most Vanpools Currently Meet the Program Eligibility Requirements Q 12: Minimum Requirements: the driver must be at least 21 years of age and have at least 5 years of driving experience; the driver and backup driver shall not have received any more than 2 moving violations and/or one chargeable accident under the vehicle laws of any state or more than one criminal offense arising out of the operation of a motor vehicle within the past three years; the van must have a seating capacity of at least 7 people, including the driver; Vanpool is not for profit. Does your vanpool arrangement meet these eligibility requirements?

25. The Pulsar Advertising Team Southeastern Institute of Research 25 Those Qualifying For A Smaller Subsidy Are Less Willing To Limit Personal Van Use Or Provide Adequate Insurance Chart reflects ratings of “very” or “somewhat willing” only Q 13a: How willing are you to: …?

26. Key Finding #3: The Vanpool Incentive Program requirements, as designed, are reasonable and most vanpools currently meet those requirements. Strategic Implication The Vanpool Incentive Program can work as designed.

27. Key Finding #4: I nsurance requirements receive the least support. Strategic Implication Further investigation of insurance subsidy appeal, as opposed to a monetary subsidy, may maximize the appeal, and ultimate use, of the program.

28. Opportunity Target: Who Is Most Interested In The Vanpool Incentive Programs

29. The Pulsar Advertising Team Southeastern Institute of Research 29 Differences Between Groups Those with newer vans are more willing to carry the required amount of commercial-type insurance –62% when the van is 4 years old or less vs. 30% when the van is 5 years + Those whose round trip distance is greater are more willing to sign a legal contract with the program operating agency –88% when the round trip is 121 miles + vs. 62% with a shorter trip Those with larger vans are more willing to limit personal van use –82% when the seating capacity is 10 + vs. 57% with smaller vans

30. Key Finding #5: Program has most appeal for owner/drivers of the larger, newer vans that make the longest daily commutes. Strategic Implication First focus on these respective prospects as the early adopters in order to build initial program sales momentum. Then merchandise success to the remaining prospect base.

31. Vanpool Owners’/Operators’ Views On Program Reporting Requirements

32. The Pulsar Advertising Team Southeastern Institute of Research 32 Respondents Were Asked To View Program Reports And Rate Their Willingness To Comply With Data Collection. Four forms were shown to all respondents to rate Each form was rotated so that no one form was displayed first among respondents Respondents were not asked to fill out the forms, just review them Questions about each form appeared roght behind each form

33. The Pulsar Advertising Team Southeastern Institute of Research 33 Monthly Attendance Form

34. The Pulsar Advertising Team Southeastern Institute of Research 34 Monthly Expense Form

35. The Pulsar Advertising Team Southeastern Institute of Research 35 Vehicle Trip Sheet

36. The Pulsar Advertising Team Southeastern Institute of Research 36 Operator Monthly Fares/Revenue Form

37. The Pulsar Advertising Team Southeastern Institute of Research 37 Three Quarters Have No Problem Reporting This Kind Of Information To The Federal Government How willing are you to have this information submitted to the Federal Government? Q. 14: How willing are you to have this information submitted to the Federal Government?

38. The Pulsar Advertising Team Southeastern Institute of Research 38 The More Frequent The Reporting Requirement, The Less Willing Potential Participants Are To Comply With Requirements Q 14a: With regard to the ______ Reporting Form, how willing are you to comply with the requirements currently under consideration for this report as a condition to participation?

39. The Pulsar Advertising Team Southeastern Institute of Research 39 Overall, Those Interested In The Program Are More Willing To Comply With Reporting Requirements Chart reflects an average of “somewhat” and “very willing” ratings for all form requirements Q 14: How willing are you to comply with the requirements currently under consideration for this report as a condition to participation?

40. Those With Limited Or No Interest In The Program Report “Too Much Paperwork” As The Primary Reason For Lack of Interest (66%)* * Data represents only 29 respondents or 26% of the total sample

41. Key Finding #6: The Vanpool Incentive Program reporting requirements are reasonable, though many have issues with the frequency of collection and submission. This impacts program interest and potential participation. Strategic Implication Give serious consideration to a simplifying the reporting requirements and frequency of reporting.

42. Views On Data Submission

43. The Pulsar Advertising Team Southeastern Institute of Research 43 Program Interest Would Decrease For Some If A Signature Were Required In Filing The Reports Q 20: What affect, if any, would it have on your desire to participate in the program if a signature were required in filing the reports, making it necessary for you to either mail or submit the data in person?

44. The Pulsar Advertising Team Southeastern Institute of Research 44 Requiring A Signature Would Have Little Affect On Those Already Interested In The Program Q 20: What affect, if any, would it have on your desire to participate in the program if a signature were required in filing the reports, making it necessary for you to either mail or submit the data in person?

45. The Pulsar Advertising Team Southeastern Institute of Research 45 Owners/Operators Prefer Electronic Data Submission Top Preference = 1, Second Preference = 2, etc. Email (1.7 average) On-Line Submission ( 1.9 average ) Fax (2.7 average) Mail (3.2 average) In Person (4.9 average) Q 19d: What is the most convenient way for you to submit the data? Please rank the following filing methods in order of preference; ‘1’ would be your top preference, ‘2’ would be your second preference, and so on.

46. Key Finding #7: Electronic submission is the preferred method of reporting. Strategic Implication Reporting and communication efforts should be handled electronically, either online or by email.

47. Changes Or Improvements To Generate More Interest In Program Participation

48. The Pulsar Advertising Team Southeastern Institute of Research 48 The Amount Of Paperwork Is the #1 Issue Q. 17: What changes or improvements would need to be made to make you more interested in participating in this Vanpool Incentive Program?

49. The Pulsar Advertising Team Southeastern Institute of Research 49 Other Program Suggestions/Improvements Other responses: No adverse tax consequences Drop the need for commercial insurance. Insurance agencies don’t want to insure vanpools Advise operators/riders of pending changes in I-95/I-66 routes, i.e. HOT lanes Have Vanpool Driver of the Year Awards The state needs to help Vanpools find new riders Provide a list of financial services who offer low-interest loans for buying replacement vehicles Provide a list of dealerships who may offer a lease program for vanpool Signing of a contract is not good

50. Key Finding #8: There is too much paperwork associated with this program. Strategic Implication Look for ways to reduce the paperwork burden.

51. Miscellaneous Issues And Challenges For Vanpool Owners/Operators

52. The Pulsar Advertising Team Southeastern Institute of Research 52 HOV Lane Usage Is the Greatest Benefit To Operating Or Driving A Vanpool Q 29: What would you say is the one greatest benefit to you operating (operating or driving, or both) a vanpool?

53. The Pulsar Advertising Team Southeastern Institute of Research 53 Saving Time And Money Most Influenced Respondents To Become A Vanpool Driver/Operator Q 28: What factors most influenced you to become a vanpool driver/operator?

54. The Pulsar Advertising Team Southeastern Institute of Research 54 New Rider Recruitment Presents Vanpool Owners/Operators With Their Greatest Challenge Q 30: On a scale of 1 – 5, where ‘1’ is “not at all challenging,” and 5 is “very challenging,” how would you rate these aspects of operating a vanpool?

55. The Pulsar Advertising Team Southeastern Institute of Research 55 HOT Lanes May Impact Vanpools Q 27: What do you think would happen to your vanpool if HOT lanes were introduced in the Northern Virginia area?

56. Key Finding #9: Passenger recruitment is a huge issue for vanpool drivers/operators. Strategic Implication Work closer with drivers/owners to recruit passengers / back-up drivers to maintain and increase participation in vanpooling.

57. Key Finding #10: HOT Lanes may impact vanpool retention, formation, and subsequently air quality terms. Strategic Implication HOV HOT Lane impact studies should include vanpool drivers/riders.

58. The Pulsar Advertising Team Southeastern Institute of Research 58 Recap: Key Recommendations 1.Proceed With Program Launch – There is great interest 2.Find a way to increase program appeal for those currently qualifying for a minimal subsidy 3.The program can work as designed 4.Investigate further the attractiveness of an insurance subsidy, as opposed to a monetary subsidy 5.Focus on early adopters in order to build the program

59. The Pulsar Advertising Team Southeastern Institute of Research 59 Recap: Key Recommendations 6. Consider a sampling plan to reduce the burden of monthly reporting for all program participants 7. Reporting and communication efforts should be handled electronically 8. Pay special attention to rider recruitment/retention assistance 9. HOV HOT Lane impact studies should include vanpool drivers/riders

60. Thank You