Consumer ins LA

Question 1

how do the LA’s main consumers look like and how did they change

Answer 1

• wide social mix of rich&poor, old&young, cosmopolitan&traditional
• differences in ethnicity, language and climate
• variety of consumption behaviors

change: increase of: 1) urban population, 2) single-person households, 3) older consumer over 65% 4) increasing income

Question 2

what are the problems with LA consumers

3

Answer 2

• low per capita income
• low income growth of the (Growing) middle class
• big inequality

Question 3

not to forget the 6 main difficulties while investing in LA

Answer 3

• corruption
• informal markets
• income levels
• property rights
• protection of investors
• enforcement of contracts

Question 4

how does the high inflation, unemployment and tax rates affect companies marketing behavior due to the anxious consumers looking to save money?

Answer 4

companies offer:
- various pack sizes for every need
- also larger packs for bulk buying to reduce the unit prices
- more private label options (no brands)
- rental and second-hand services

Question 5

How does culture influence markets?

3

Answer 5

1) social proof is key: recommendations from familiy and friends
2) Preference for local brand
3) Language does matters: regarding online sales often not being available in spanish/portuguese

Question 6

how does the digitalization affect business making?

Answer 6

companies could reach 90% of the region’s populations through mobile networks
-> E-commerce’s gaining importance
Also bc they feel like they safe time and money

Question 7

how to do marketing for LA online consumers

Answer 7

LA consumers are more open to targetd ads
+ stronger site navigation motivates them to shop online

Question 8

apart from cultural norms

what are the economic factors shaping how costumers interact with online platforms from social media to e-commerce?

Answer 8

• preference for local payment methods (over international credit cards)
• price sensitivity: offering competetive pricing and promotions can determine your success

Question 9

challenges in LA’s digital commerce

3

Answer 9

1. payment: cash still an importanat alternative
2. delivery: probles with local distributors
3. reliability: consumers need to trust the system