Comparing Market Potential Analysis for Minivans and Sports Cars in Washington DC and Maryland
Number of words: 580
From the census database, the age demographic for Washington DC indicates that those under the age of 19 make up 20.6% of the population. Those in their youthful years, that is, 20-34, make up 30.7% of the population, 35-49 make up 20.1%, while those above the age of 50 make up 28.6% of the population. In terms of sex, 47.38% are male, while 52.62% are female. Regarding education, the population of those between 18 and 24: 23.1% have a bachelor’s degree or higher, 46.3% have some college or associate degree, 26.2% are high school graduates, while 4.4% are less than a high school graduate. For the population aged 25 years and above: 91.9% have a high school graduate or higher qualification, 4.9% have a 9th -12th-grade education, while 3.3% a less than 9th-grade qualification. In terms of income 8% of the population earn less than $10,000, 21.3% earn between $10,000 and $ 50,000, 39.3% earn between $50,000 and 150,000 while 31.3% earn above $150,000. On the other hand, the census demographic for Maryland shows that those under 19 make up 24.6% of the population. Those between 20-34 make up 19.8%, 35-49 make up 19.4%, while those above 50 make up 36.1% of the population. In terms of sex, 48.4 are male while 51.6 are female. The demographics in terms of education indicate that for the population of 18-24 years, 88.1% of the population have a high school graduate or higher qualification while 11.8% have lower than a high school graduate. For the population above 25 years, 90.4% have a high school graduate or higher, while 9.6% have lower than a high school graduate. In terms of income 4.8% of the population earn less than $10,000, 23.5% earn between $10,000 and $ 50,000, 47.6% earn between $50,000 and 150,000 while 24% earn above $150,000.
Age has a significant impact on the type of car an individual purchases; older people prefer minivans to sports cars due to their energy consumption, space, and seating capacity (Nowak, 2021). It is therefore likely that an older person would pick a minivan as compared to a sports car. Sex also influences the choice of car, and it is expected that men will purchase a sports car compared to a minivan due to its sleek and sexy design. Income also impacts the choice of car; high-income earners are likely to buy a sports car since they can afford it despite being expensive, low-income earners would prefer a minivan due to its affordability (Oliveira & Dias, 2019). It is also expected that highly educated individuals, i.e., those with a degree or higher, would prefer a sports car more than a minivan due to its sexy nature and statute.
From the analysis in terms of age, it would be prudent to set up a sports car shop in Washington DC since most of the population are youthful, and those above 50 years constitute 28.6%. It would be practical to set up both stores in Maryland since there is almost a balance between the youthful and older generations, which comprise 36.1% of the population. In terms of income, it would be prudent to set up a sports car shop since close to 80% of the people in both cities earn above $50,000, thereby classifying them as high-income earners.
Nowak, K. (2021, July 5). Does Your Age Determine Your Car Choice? Rivervaleleasing. https://www.rivervaleleasing.co.uk/blog/posts/does-age-determine-car-choice
Oliveira, G. D., & Dias, L. C. (2019). Influence of demographics on consumer preferences for alternative fuel vehicles: a review of choice modelling studies and a study in Portugal. Energies, 12(2), 318.