Business Computer Buyers in Latin America
The sales market for computers is divided into two major segments --- the consumer market and the business market (including non-profit institutions). These two markets obviously have radically different needs, and must therefore be served accordingly.
We will present some survey results from the TGI Latina survey. The database in this case consists of 43,536 persons between the ages of 12 and 64 years old in six Latin American countries: Argentina, Brazil, Chile (Santiago), Colombia, Mexico and Peru (Lima). These survey participants were first asked if they had been responsible for making any business-related purchases totaling over US$500 in the past 12 months. If the answer yes, they were further asked if they had purchased computers on behalf of their companies. Out of this large sample of survey respondents, only 1.5% responded that they had purchased computers. Therefore, the large business computer market is in the hands of a fairly small number of people.
The following table shows the basic demographic characteristics of these business computer purchasers compared to the general population. These people are disproportionately affluent male 25-54 years old.
| Demographic Characteristics | % Total Population 12-64 years old | % of business computer purchasers |
| Sex / Age Males 12-19 years old Males 20-24 years old Males 25-34 years old Males 35-44 years old Males 45-54 years old Males 55-64 years old Females 12-19 years old Females 20-24 years old Females 25-34 years old Females 35-44 years old Females 45-54 years old Females 55-64 years old |
12% 6% 11% 9% 6% 4% 11% 7% 12% 10% 7% 5% |
0% 5% 19% 24% 17% 5% 1% 2% 11% 10% 4% 1% |
| Socio-economic Level Level A (top 10%) Level B (next 20%) Level C (next 30%) Level D (bottom 40%) |
10% 19% 31% 40% |
60% 26% 11% 3% |
(Source: TGI Latina, 1999-2000)
To make informed decisions about purchasing computers, knowledge about the products is essential. The next table shows that most of the business computer buyers in Latin America are well educated. Much of information technology is imported into Latin America, with the latest developments being first available in English. Therefore, knowledge of English will allow one to keep up-to-date with the latest product developments. The next table also shows that the business computer buyers are very likely to possess English-language skills.
| Educational skills | % Total Population 12-64 years old | % of business computer buyers |
| Completed 12+ years of schooling | 22% | 68% |
| Comprehension of spoken English Very good Some Very little Not at all |
4% 19% 26% 50% |
21% 40% 25% 13% |
| Comprehension of written English Very good Some Very little Not at all |
5% 17% 25% 51% |
26% 37% 22% 15% |
(Source: TGI Latina, 1999-2000)
What kind of business environment do these business computer buyers operate in? According to the following table, they are more likely to be professionals and managers in small- and medium-sized companies in the private sector. This characterization refers to their numbers, and does not reflect the expenditures that they controlled.
| Business Environment | % Total Population 12-64 years old | % of business computer buyers |
| Company Sector Private Government |
41% 7% |
76% 9% |
| Company Size 501+ employees 50 - 500 employees 11 - 50 employees 2 - 10 employees 1 employee |
7% 8% 8% 12% 14% |
13% 12% 16% 26% 19% |
| Job Title Upper management Middle/lower management Professional Technician/mechanic Lower administrative Maintenance/security Other positions |
4% 3% 5% 5% 7% 7% 20% |
33% 12% 30% 7% 9% 2% 7% |
(Source: TGI Latina, 1999-2000)
Now, the overall question, "Have you made purchases of computers for your company?" is actually quite unspecific as to what is meant by a 'purchase'. In the TGI Latina survey, this question was in fact broken down by different various decision-making areas. Among these business computer buyers,
The significance of the detailed probing becomes obvious when we look at the next table. People in different positions participate in different aspects of the decision-making.
| Business Environment | % who determined need | % who specified brands | % who authorized purchases |
| Job Titles Upper management Middle/lower management Professional Technician Lower administrative Maintenance/security Other positions |
33% 11% 20% 7% 10% 1% 6% |
35% 10% 21% 7% 10% 1% 7% |
41% 12% 19% 3% 9% 1% 7% |
(Source: TGI Latina, 1999-2000)
(posted by Roland Soong on 12/21/00)
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