Are Australian consumers willing to pay for the installation of reversing cameras in motor vehicles?

Abstract

In Australia, more than one toddler per month dies from being run over in a driveway and many more are injured. While there is currently no regulation in Australia regarding reverse warning systems, the issue has been debated over the years following several high profile cases. A computer-assisted telephone interview (CATI) survey of NSW households was undertaken in March 2008. Respondents were asked about their willingness to pay for the installation of vehicle reversing cameras at the expense of the purchaser. The survey was completed by 590 respondents. There were no significant differences between males and females for willingness to pay $500 or $300 for a reversing camera in their current vehicle; however females were more willing to pay $150. There were no significant differences between age groups in willingness to pay for the installation. More than two-thirds of respondents would support legislation if it increased the cost of new cars by $300 and more than half if it increased by $500. This study suggests that the majority of adults would be prepared to pay a small amount of money to install a reversing camera in their current vehicle, but not sufficient to cover the full cost of installation.