Income of buyers and wealth may be a barrier of entry into a new market if

Income of buyers and wealth may be a barrier of entry

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range within the global market. Income of buyers and wealth may be a barrier of entry into a new market, if income within a particular country or area is so low that even the cheapest VW automobile is not affordable, then there is no way to create demand when buying a car is simply unaffordable. 3.4 Weather/ Climate Conditions Weather plays an important part in our everyday lives, thus, it is not surprising that weather also influences the demand for goods and services. Climate conditions increase or decrease the demand for certain goods and services. As an example, when a geographical area is impacted by a hurricane, the hurricane raises the demand for flashlights, bottled-water, canned food and generators. Although weather and climate conditions do have an impact on demand, within the automobile market, it is not a particularly important. People within all climates and weather conditions purchase automobiles. However, what weather and climate can have an influence is what type of cars are demanded, but not if cars are more or less in demand. 3.5 Tastes and Preferences Demand is driven by the customer's tastes and preferences. Tastes and preferences can actually be closely connected to one individual or may also apply to a whole group of people, a specific culture or even the overall society. Tastes and preferences are influenced by many factors. For instance, current trends influence what consumers may like or dislike. Another major factor affecting tastes and preferences is technology. Technology continuously develops and drives innovations in the market and may possibly create demand for these new products. Regarding overall trends in a society, a current trend that can be observed is the increasing
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awareness for sustainability. A major point to keep in mind when referring to tastes and preferences is that they are subject to high fluctuations. Trends change over time and along with this changes the consumers’ demand. A product that may be in fashion and therefore highly demanded today, might be outdated the next month. In regards to Volkswagen, tastes and preferences do play a major role in the demand for Volkswagen cars. As mentioned above, sustainability represents a current trend in society. On the one hand a customer may specifically look for fuel efficient cars or possibly electric cars. On the other hand, the customer may as well consider options like car sharing or public transportation instead. In today’s society, the necessity of owning a car oftentimes decreases. In order to stay competitive, car manufacturers like Volkswagen need to thoroughly think of how to stay attractive. Concerning the general preferences of Volkswagen customers, the brand stands for safety and quality which may drive some people to trust in the cars and actually buy them.
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  • Winter '18
  • Renault, Volkswagen, Porsche, Volkswagen Group, Scania

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