A latent class approach to investigate user preferences and willingness to pay for Smart Technologies. Evidence from five European countries

Abstract

Despite the potential benefits of smart bicycle technologies in improving cyclists' safety, research on cyclists' attitudes and willingness to pay is missing. This paper is the first to examine cyclists' preferences and willingness to pay for smart bicycle technologies to enhance safety and aims to shed light on their development and adoption. Data from a stated choice survey with 1235 participants from five European countries was analysed. A latent class choice model (LCM) was used to seek random heterogeneity using explanatory variables, such as sociodemographic characteristics, safety-related factors, and geographic areas. Two classes (technology cautious and technology prone) emerged from the LCM. Results indicate that there is a significant heterogeneity in preferences among people, which a number of variables can partially explain. Participants of this study are willing to pay an additional price of up to 200 € for advanced bicycle technologies to increase their safety.