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Automobile Industry in the DR
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Automobile Industry in the DR

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  • To better understand the consumerism in the DR for the auto industry, we have to take a look at the market that are purchasing these items. Being in Santo Domingo, we saw how large the city was with 30.1% of households residing there compared to here in Santiago with 18% of households. Santo Domingo, as a result, has a higher average income, even higher than the national average of $10,000. The average income allows us to understand what types of cars consumers are able to finance and purchase.
  • This graph gives a better picture of what Dominican consumers can afford. The blue shows the disposable income and the yellow shows what consumers are actually spending. The difference is shown with the red line. This difference is the savings that allows larger purchases. This decrease shows that consumers have less to spend on financing something like a car.
  • This next graph shows the class divide. Decile 10 represents the top 10% of the most wealthy people in the country. It also shows that transport is the highest they are spending on. In comparison, the rest of the population have transport as the lowest amount spent on. The consumer’s income affects their decisions to purchase a car.
  • Drivers are required to carry liability insurance.
  • 25mph in the city 60mph on rural roadsmany people do not follow these traffic rules due to the lack of enforcementCaution and defensive driving are essential in the Dominican Republiccommon for undisciplined driving, this is in result of inadequate traffic controls.Traffic accidents often result in serious injury or death. 
  • Emotional appeal
  • Status
  • Use/utility

Automobile Industry in the DR Automobile Industry in the DR Presentation Transcript

  • Consumerism in the DR: The Auto Industry
    ADV400 – 01/14/10
    YewandeAwolola, Jessica Leyden,
    Erica Mckinney, Jennifer Noinaj
  • Agenda
    Introduction
    Consumer Behavior
    Product
    Environment
    Observations
    Conclusion
  • When you think of the DR, you think about this…
  • …but you never think about this.
  • Consumer Behavior
    Avg disposable household income: US$14,287
    Santo Domingo: 30.1% households, US$21,413
    Santiago: 18% of households, US$8,813
    National: US$10,261
  • Disposable Income, Expenditure and Savings
  • Proportion of Total Spending by Income Deciles
  • Product
    • Insurance
    • Gas prices
    • Public transportation
  • Environment
    • Traffic
    • Accident rate
    • Parking
    • Transportation infrastructure
  • Observations
  • A majority of automobiles are Japanese-manufactured cars.
  • There are a lot of car dealerships in close proximity to one another.
    • Convenience
    • High competition
  • Car purchase is influenced by numerous factors.
    • Space constraints
    • Income
    • Road conditions
    • Traffic laws
  • Advertising methods are based on class.
    “There are values that are calculated as the value of trust.”
  • “Automobile of the year in USA. (2009)”
  • “Change everything. 3 rows of seating.”
  • Dominicans like to drive cars until they are “dead.”
  • Motorcycles as a mode of transportation.
    USA
    Status
    Pleasure
    #2 Vehicle
    Dom Republic
    Efficiency
    Affordability
    #1 Vehicle
  • What We Learned
    • Understand the market to successfully sell the product
    • Income and class play a large role
    • Outside influences can impact a consumer’s decision-making
  • Questions?