Consumer behavior analysis can be understood as a process of realizing the purchasing pattern of the target consumers of a company. Considering the same, the companies require to realize purchasing behavior for generating a marketing strategy in order to target the consumers in a suitable manner (Alshurideh 2016). It is observed that the Australian telecommunication and mobile phone industry is attaining increased growth and the renowned players requires understanding buying behavior determinants for increasing market share along with attaining high demand for companies products. The objective of the paper is to analyze the social and environmental factors those impact consumer behavior of Telstra Company.
Social Factors Affecting Decision Making of Consumers
In analyzing the social factors those impact consumer decision making in acquiring telecom services from Telstra Company, it has been gathered that “offering social currency” is one of the major factors that persuades consumers in sharing their ideas regarding telecom services of the company (Chang et al., 2015). In the telecommunication industry, offering currency can be done any means of offering details regarding telecom services offered by Telstra. For instance, after sending an e-mail, the e-mail might contain a small text indicating that it was sent from Telstra cell phone. Another social factor is “developing emotional connection” through which consumers tend to share things that they care about. In order to positively impact consumer behavior, it is vital for Telstra to offer a positive emotional reaction among consumers (Chinedu, Haron & Osma, 2017). In such manner, consumers of Telstra can develop a positive connection and can get more willing to share any message. “The reasoned theory” of consumer behavior explains the social factors that impact buying behavior of consumers towards acquiring telecom services of Telstra. This theory indicates that consumer behavior is impacted by intention to generate or attain a particular outcome. Consumers are also observing to be rational actors those only act as per their best interests. This indicates that if the purchase from Telstra satisfies their need then they are likely to make a purchase (Cruz et al., 2016). For this reason, it is important for the marketers of the company to analyze the preference of target consumers regarding phones to offer them telecom services as per their desires.
“Motivation need theory” is a consumer behavior theory that indicates consumers are likely to act to fulfill their needs relied on the five-part priority system. Such needs involve safety, survival, esteem, love and self-actualization (Díaz, 2017). Considering the same, the marketers of Telstra requires developing a telecom service that matches the hierarchy of needs. For this reason, it is of increased importance for the telecom company to fit their services in the hierarchy of needs in order to positively influence their purchases. Even though Telstra Telecom Company is observed to be in the self-actualization aspect, making it a survival need can motivate the consumers to make purchases from the company. “Blackwell Consumer behavior theory” has also identified certain social factors thus influence purchasing and brand switching decision of the consumers (Garín-Muñoz, Pérez-Amaral, Gijón & López, 2016). This theory explains that there is a five-step process based on which consumers decide to make a purchase. Such prices flows from data collection input to information processing. The other stages impacting consumers decision making includes decision making and purchase. Based on this theory, the marketers of Telstra must reveal the value of its telecom services at input stages. Through data collection regarding consumer behavior regarding its telecom services, Telstra must also ensure that it offers all the important information based on which consumers can make purchase decision (Gunasekara, 2015).
“Hawkins theory of impulse buying” is a consumer behavior theory that explains certain social factors that impacts purchase decision of the consumers. This theory explains that certain social factors that include packaging scent along with physical appearance that supports the idea of impulse buying (Gupta & Sahu, 2015). For this reason, the marketers of Telstra are observed to capitalize on such aspects in order to attract their consumers. For learning such consumer behavior theories, it has been gathered that social factors has an on impacting consumers in order to persuade them for purchasing such products or services. Based on such factors, certain changes must be undertaken by Telstra relied on the analysis of consumers’ needs (Gupta, 2015). The abilities of decision making of the consumers are deemed to be supported by recommendations made by their associates or the relatives. The needs identification of people relating to consumers’ needs facilitates in understanding the potentiality of consumers of Telstra. Identification of consumers’ intention has an important role on acquiring the company’s products. Telstra is observed to be dealing with issues associated with switching loyalty of consumes.
It is also gathered that more that 25% of the respondents agreed to the fact that the consumers of Telstra are switching towards other telecom companies as the mobile phone was used more than estimated (Izogo, 2017). Recognizing the changes in the purchase intention of the consumers can facilitate the service provider in Australia too maintain efficiency of the telecom service offering. Moreover, it is also evident that changes within the social structure along with the role play models of the consumers increasingly impact their purchase intention. The special structure along with the models of role play of the consumers is focused on their employability in distinct economies (Kaur & Sharma, 2015). This facilitates in recognizing the potential of the consumers in affording products and services range offered by Telstra. Social factors associated with employability of the target audiences facilitates in supporting the purchasing potential of the consumers. On the contrary, certain changes that can be used by Telstra in Australia are relied on the evaluation of consumer satisfaction attained by people by utilization of services and products (Leppäniemi, Jayawardhena, Karjaluoto & Harness, 2017).
Environmental Factors Impact on Decision Making of Consumers
From analyzing the respondents viewpoints gathered for Telstra Telecom services Company, it has been gathered that cellular technology along with services are deemed to be vital aspect by consumers and this market is intended to grow further. Certain technological factors such as service quality are deemed to be most vital feature that is preferred by Australian consumers while attaining cellular services (Mahajan, Misra & Mahajan, 2015). For learning such consumer behavior theories, it has been gathered that social factors has an on impacting consumers in order to persuade them for purchasing such products or services. Based on such factors, certain changes must be undertaken by Telstra relied on the analysis of consumers’ needs. The abilities of decision making of the consumers are deemed to be supported by recommendations made by their associates or the relatives (Moreira, Silva & Moutinho, 2016). The needs identification of people relating to consumers’ needs facilitates in understanding the potentiality of consumers of Telstra. Identification of consumer’s intention on acquiring the company’s products is also deemed to impact Telstra Company. Telstra is observed to be dealing with issues associated with switching loyalty of consumes.
Through evaluating the environmental factors it has been gathered that the decision making capabilities of consumers are impacted through situational and contextual factors (Quoquab, Abdullah & Mohammad, 2016). Focusing on such results, 43% of the Telstra consumers stated that their purchase decision is relied on impulse associated with necessary ideas communication. In addition, Sharma, Medudula & Patro, (2015) revealed that contextual factors induction facilitates in increasing consumers impulse in order to make commodity purchase to 93%. Among the environmental factors impacting consumer decision making, “The ambient condition” is considered as one of the most vital parts associated with contextual factors that is perceived to impact consumer perceptions towards purchasing services in telecom industry. In analyzing case of Telstra, it has been gathered that the ambient condition triggers consumers mind along with instigating five major senses which facilitates in supporting decision making abilities of consumers (Shaw, Chovancová & Bejtkovský, 2017). Among the major environmental factors, certain syllogistic structures also impact purchase intention along with brand switching behavior of Telstra consumers. Implementation of distinct symbols in several promotional activities facilitates companies in attaining high attention from consumers along with persuading them to make a purchase decision regarding Telstra Company’s telecom services. Recognition of distinct contextual aspects related with capabilities of consumers’ decision making facilitates Telstra in maintaining its operational efficiency in Australian telecom industry (Singh & Singh, 2017).
In contrast, among the major environmental factors, situational aspects are also observed to play a vital role in impacting decision making abilities of consumers. On the contrary, situational environmental factors such as mood and consumer motivation have a major function in influencing purchase intention of Telstra Company’s consumers. In addition, it has also been revealed that consumers’ hedogeni motivation persuades them to purchase Telstra company’s telecom services or products through analyzing their experience attained from previous purchase while using their services (Srivastava & Kaul, 2016). The major aspects are likely to change that is undertaken by the company relied on the evaluation of consumer preferences and needs. From consumer review on Telstra Company’s telecom services, it is gathered that recognition of a situation long with the way it impacts decision making process of consumers have impacted Telstra’s consumer focused marketing strategies in order to improve its operations in future (Telstra - Our company., 2018). Certain influencing factors along with their changing preferences based on upcoming trends in Australian telecom industry majorly associated with maintaining quality of products and services are likely to persuade purchasing decision making process of target consumers. In addition, based on the research carried out by “Australian Communication Media Authority” it is evident that more than 30% of Australian consumers switched from one telecom service provider to another due to the issue of poor service quality offered.
Through evaluating the impact of social and environmental factors on the purchase and brand switching intention of consumers of Telstra, certain effective recommendations are offered to the company are indicated below:
- The operators of Telstra are recommended to center on making technological modifications in their offerings which can attain increased attraction of a large number of Australian consumer bases. In addition, the company must also focus on improving their battery technology that is deemed to be one of the vital features demanded by target consumers. By means of focusing on certain technological modification there is a better scope for the Telstra retailers to expand by means of evaluating consumer affordability along with purchasing behavior. Through evaluating the environmental factors impacting purchase decision of consumers, marketers of Telstra is recommended to analyze the rand switching behavior of its consumers and make constant technological innovation that is trending in Australian telecom industry. For obtaining an increased competitive advantage, Telstra is also recommended to consider making an increased investment in improving its telecom services through implementation of UX design used in manufacturing high quality cell phones. Through implementation of such advanced technology Telstra can make its information simpler for its consumers through which consumers of the company can increase sense of brand loyalty among them. Such recommendation is provided to the Telstra based on social factors prevailing among the Australian consumers. This is observed to have a huge impact on the brad switching and purchase intention decision of consumers. Based on such impacts, recommendation of improving quality of telecom service is offered to Tilts attaining competitive advantages.
- Through analyzing the environmental factors that impact the consumer purchasing decision along with brand switching behavior of Telstra, the company is recommended to attain growth in its consumer base. In attaining such objective, the company is recommended to implement Oracle Metrics which can facilitate the telecom company in developing effective application along with mobile application. Recommendations are offered to Telstra to implement these applications serve different purposes that will include serving distinct target consumer bases. Such recommendation is offered focusing on the fact that Australian consumers are likely to remain loyal to the mobile applications. This recommendation can provide better competitive advantages in attaining attraction of target consumer base as they tend to be loyal to the mobile applications as they search for simpler and faster manner for interacting with brands. Implementing such metrics, the marketers of Telstra can simplify the shopping experience along with offering suitable “on-the-go” services to them with all the basic information.
- The service providers of Telstra are also recommended to integrate with the social media platforms for the reason that it can serve as an important place for monitoring and responding to the feedback offered by Australian target audiences. Moreover, the company is also recommended to integrate their mobile strategy with social media platforms in a manner that will consider sharing reviews along with including sharing buttons through sharing engaging content for target consumers.
- Telstra telecom service providers of Australia are also recommended to attain advantages from developing multi-device as well as screen opportunity. The provider must also focus on developing effective campaign for distinct devices and offering important content to all its target consumer segments that can increase its switching costs and return on investments. In addition, Telstra is also recommended to implement location based advertisements by means of geo-location service which can communicate targeted messages to particular Australian telecom consumers.
- After evaluating the social along with environmental factors affecting purchase intention of consumers along with their behavior towards brand switching, it has been observed that consumers prefer using cellphones of a brand which reveals increasingly engaging content on a regular basis. In this condition, Telstra is also offered with a recommendation regarding sending regular notifications on coupon discounts along with their savings on acquiring cell phones of their preferred telecom service brand. Moreover, focusing on the impacting social and environmental factors, Telstra is recommended to consider employing personalized e-mail marketing for the reason that it can prove to be an efficient way to keep target consumers informed regarding any new discount or coupons by means of offering newsletters. Moreover, one more recommendation is to ensure that consumers attain mobile phone service considering which Telstra can offer exceptional value to its consumers. This strategy can be attained by the company through engaging consumers with mobile phone activities with integrating their several data sources that is moving close to centralized data systems as much as possible.
The objective of the paper was to analyze the social and environmental factors those impact consumer behavior of Telstra Company. It was gathered from the paper that in the telecommunication industry, offering currency can be done any means of offering details regarding telecom services offered by Telstra. Social factor is “developing emotional connection” through which consumers tend to share things that they care about. In order to positively impact consumer behavior, it is vital for Telstra to offer a positive emotional reaction among consumers. Based on such factors, certain changes must be undertaken by Telstra relied on the analysis of consumer’s needs. It is recommended that the operators of Telstra are recommended to center on making technological modifications in their offerings which can attain increased attraction of a large number of Australian consumer bases. In addition, the company must also focus on improving their battery technology that is deemed to be one of the vital features demanded by target consumers.
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Telstra - Our company. (2018). Retrieved from https://www.telstra.com.au/aboutus/our-company