Study on Car Preferences in Davao City

Introduction

People nowadays are aiming to own something useful for their everyday chores. This same idea feeds the inventors and the industries acquired this fact to have the initiative in giving the best preferences for the consumer needs. With regards to the growth in technological and technical opportunities, the automotive industry is another type of industry that managed to cope with the changes and continuously evolved due to the needs of the people.

Background and Problem Statement

In the Philippines, the industry is said to be alive because of the challenges that the local manufacturers received coming from the international competitors. The common feature that the manufacturers will present is the “sleek and smooth” drive on the car. Other marketing strategies affect the perceptions and preferences of the customers to buy, which include the characteristic of economic and environmental friendly and many others. Due to the growing competition and marketing offers of the car dealers, there is no doubt that the customer preferences be affected. However, what are the car preferences of the people living in the areas with the smooth and steep terrains?

Research Aim and Objectives

The main aim of the study is to identify the most preferred feature of the customers that can probably suits to their lifestyle and budget. In order to obtain the necessary information, there are four objectives that need to consider. First is to identify the typical cars being marketed in the area. Second is to identify the level of competition between the local manufacturers and the international manufacturers. Third is to investigation if there are any governmental factors that might affect the automotive industry. And fourth is to discover the influential factors in creating the buying decisions for the consumers.

Hypotheses

In this study, there are three hypotheses that should be analyzed

1. The female buyers preferred to buy the masculine type of features of a car.

2. Most of the buyers will chose car over other things like owning a house or having a vacation.

3. The population of the buyers is composed of young adults or young professionals.

Research Questions

To provide the ideas in the study, there are four questions that can be the basis on the research to organize the thoughts.

1. What are the types of cars being marketed and/or owned in Davao City?

2. How can we say that the automotive industry is continuously growing?

3. What are the recognizable powers of the national and local government over the automotive industry?

4. What perceptions of both first-time car buyers and expert buyers in terms of cars?

Literature Review

The automotive industry of the Philippines recorded a 2.3% growth as of 2006. This means that more and more people are purchasing their motor vehicles for their personal purposes. The 2007 sales projected to breach 100,000 marks because of the accumulated growth after five years. The manufacturers and dealers notices that commercial vehicle (CV) dominated the market with 61% share in 2006. The leading Japanese brands like Toyota, Honda, Mitsubishi, Nissan, and Isuzu became dominant in the Philippine market. However, the U.S. brands like Ford and General Motors shown a consistent growth. There are many reasons behind this said growth that affects the sales performance of various manufacturers and dealers. It is said that the best sales prospects that are effective on the buyers are the features of the vehicle. Some of them are the replacement parts like the engines and associated parts, body and mechanical parts. The auto electric parts like the batteries, light bulbs, air conditioners and compressors are also considered. The products and performances of the Japanese brands are also part of the influences that can reflect in the sale performances of the dealers. However, challenges should be given with appropriate solution.

Methodology

The applied method in this study is the use of survey and interview. This method is applicable to measure the extent of preferences and how will the manufacturers or dealers use these consumer preferences to add to their sales. In the interview, the researcher will use the Likert Scale form of questionnaire to gain the idea regarding the most preferred features of cars of the first-time and expert buyers. On the other hand, the interview will be conducted on the manufacturers, dealers, or automotive technicians and will be asked regarding the most common or typical car that the people usually bought. They will be also asked about their marketing strategies to increase their sales.

Work Cited:

Philippine Automotive Industry [Online] Available at: https://www.buyusa.gov/philippines/en/automotivemarketphilippinesezasia.ppt [Accessed 11 August 2010].

Rodriguez, A., & Page, C., (2004) A Comparison of Toyota and Honda Hybrid Vehicle Marketing Strategies [Online] Available at: http://www.solsustainability.org/documents/cultivatingmarkets/A%20comparison%20of%20hybrid%20vehicle%20marketing%20strategies.pdf [Accessed 11 August 2010].