Analysis of Customer Behavior

This study analyzes the impact of social and environmental factors on customer behavior and brand switching. Recommendations are provided to improve marketing strategies of Vodafone.

Running head: ANALYSIS OF CUSTOMER BEHAVIOR
Analysis of customer behavior
Name of the Student
Name of the University
Author note

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Table of Contents
1. Introduction..................................................................................................................................2
2. Social factors and their influence on consumer decision-making and brand switching..............2
3. Environmental factors and influence on consumer decision-making and brand switching........5
4. Recommendations to improve marketing strategies of Vodafone...............................................7
5. Conclusion...................................................................................................................................9
6. References..................................................................................................................................11

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1. Introduction
Social factors have an important role in influencing buying decision of the customers.
Social factors like immediate family members, reference groups, status and relatives have an
impact on purchasing behavior of the consumers. On the other hand, environmental factors
influence on the consumer behavior. Busy days, personality of customers, date and time of
purchase, available alternatives and geographic location are the external factors that make an
impact on the purchasing decision preferable of customers like for most of the customers, finding
the stores where low traffic is. The present study deals with the discussion of social factors and
their impact on consumer purchase-decision and brand switching. In addition, environmental
factors as well as its impact on the purchasing process and switching to different brand are
discussed. Recommendations are provided to enhance marketing strategies of Vodafone.
2. Social factors and their influence on consumer decision-making and brand switching
Social factors have an impact on customer behavior of Vodafone in a significant way.
Individual follows some factors that influence their buying decisions. The significant social
factors have a great impact on the customers of Vodafone such as reference groups, family as
well as role and status. The customers are individual, however belongs to a group. It is one of the
direct as well as simple classifications in the process (Chaudhary 2016). On the other hand,
reference group is the second group. It influences self-image of the customers as well as their
behavior of purchasing. The reference group provides the points of comparison to the customers
regarding behavior, lifestyle, close friends, work group of people that the customers are related.
In addition, the groups to which a customer does not belong yet have the power of influence. The

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aspirational groups are considered the group where a customer aspires belongs as well as wants
as the part in future.
Family members can influence on customer behavior individually. The customers created
brand perceptions when they are young can be helpful in carrying out the same brand selection in
adult life without reorganization of family influencing the selections for Vodafone (Zhang et al.
2017). Apart from these, individuals have an important role in their lives. Social status has an
important role as it reflects on the position that people have in the social groups that are based on
specific things as money as well as wealth, education and occupation have a strong influence. It
is also important for the people for admiration of others (Ghavamipoor et al. 2017). On the other
hand, selection of brand as well as product reflects on social role as well as status.
On the other hand, a brand is considered as a name, design, symbol as well as other
feature that makes difference a product from another. It is tangible product or service as it is
packed with feelings as well as perception towards product. A renowned brand like Vodafone
can bring trust as well as hang with changing the world. It reflects to people as person wants to
be. In addition, a brand needs to provide values, personalities, advantages as well as slogans for
the customers of Vodafone. A product has strong brand image that can correspond with
personality of the customers (Bruhn et al. 2015). On the other hand, the customers can express
through brand choice and provide image to be an ideal. Perception of a brand image is combined
with personality of the brand. The dimensions of brand personality are important to analyze
(Huang, Fang and Liu 2017). The decisions that concern with the brand need time from the
marketers. They require positioning the brands in such way that can reach to the mind of the
customers. They require positioning of the brands in such way that are in the mind of customers.

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The current tariff cuts announced by several telecom operators would affect on the
bottom line of the organizations. These are unequipped for matching up with competition as well
as do not have economies of scale that would lose in the market. However, Vodafone makes
effective strategy like reducing tariff plans and offering discounts in the plans. The targeted
market is Australia and the audiences of Vodafone present in multiple parts of the country. In the
market competition, the shares of TPG Company have increased 22%. On the contrary, the
Australian parent company of Vodafone has given a hint that makes plan to follow the Telco
strategy. In addition, dataset on the communication service prices can be measured as well as
analyzed by Vodafone Australia. In addition, the international markets are analyzed for price
differences in the market in order to encounter the demands of the consumers. In order to assist
the customers, Vodafone Self-service Kiosks as well as centers in multiple regional areas have
been introduced. On the other hand, domestic appliance retailing, telecommunications Services
as well as wireless telecommunications carriers have been provided by Vodafone for its
customers.
In order to get success in the process, the marketers utilize three levels of positioning.
The brands can be positioned through product attributes. For an instance, in coffee brands, the
attributes like environment friendly package. Universal position through attributes works can
assisting the process of working (Lin et al. 2018). The customers are not interested in the
attributes. A better method for positioning the brand is joining the name is desirable and makes
the brand desirable for Vodafone. The consumers are not interested in the attributes. However,
the competitors of Vodafone can copy the attributes easily as well as obtained advantages with
the attributes that is lost. A better way for positioning the brand is joining the same with
desirable advantages. For example, Volvo represents safety, whereas Nike represents

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performance and Maserati with quality (Pan and Kang 2016). The customers are related to the
brand name as well as advantages in mind without seeing the tangible products. There are
highest levels of brand positioning works with the attributes as well as advantages.
3. Environmental factors and influence on consumer decision-making and brand switching
Environmental factors affect on customer purchasing behavior of Vodafone. Cultural
influences can be defined as complicated sum of total knowledge, belief, customs as well as
traditions that have large influence on the customer purchasing behavior and decision-making
process (Boateng 2016). In addition, moral law and art as well as other habits acquired by people
influence on customer purchasing process. In addition, sub-cultural has a great impact within a
culture, where major groups and segments of people with different traditions as well as behavior
influence the purchasing process.
Social class refers it referred to the group of people sharing equal positions like income,
occupation as well as education in the society. For examples, the selection of residence, holiday
type, entertainment and leisure. On the other hand, social group influences on the political
groups, study groups as well as work group and service organizations of Vodafone such as lions
and rotary. Different members of the group influence the group behavior. On the other hand,
time pressure is one of the major factors that influence customer-purchasing behavior (Bruhn et
al. 2015). Customers have tendency to include tunnel vision and that will consider the factors
considered than normally possible. The customers will select the brand based on the narrow set
of the features. Adjust messaging includes last minute shoppers.
There are distinctive emphasis is provided by different cultures for purchasing, utilization
as well as disposal of the products (Boateng 2016). There is specific style of consuming food.

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Clothing as well as savings. It differs from people of other state or region of the country.
Different cultures as well as habits are considered as predominant in distinctive parts of the
globe. For an example. Japans have a different culture from USA, Arabian countries as well as
England. Hence, in terms of consumer behavior, culture has an important role.
Sub-cultural influences are one of the important aspects that has an impact on consumer
behavior and purchasing decision making process. There are several subcultures seen in a
country because of religion and others things. Hence, within a social class, people like to share
the same values as well as beliefs along with the trends in order to buy the type of products. The
selection of residence, holiday type, entertainment as well as leisure seems to be alike (Bruhn et
al. 2015). On the contrary, knowledge of social class can be referred to the group of people
sharing equal positions in the society. Hence, within a social class, consumers like to share the
same values as well as beliefs along with the tendency to buy same type of products. In addition,
Vodafone offers several services like voice services, SMS and MMS services, data services,
satellite, television and radio relay as well as handsets and equipment. The industry activities like
Direct-to-home satellite systems operation, Cellular telephone communication service, Voice
over Internet Protocol (VoIP) provision and Microwave/radio wave transmission would assist for
the organization obtaining competitive advantages (Bruhn et al. 2015). The international markets
are researched for price differences in the market in order to meet the demands of the customers.
In addition, social group influences on the individuals sharing customer relationship,
attitudes as well as same interest. The groups could be the primary for interacting the process
amongst the process as well as knit (de Santos and Oliver 2018). The influences could be
political group, work group as well as study groups and service based organizations such as
Lions and rotary. The individual makes procedures of the information that are received in several

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ways as well as assess the products in own personal method. Personal influences have a long
way for purchasing the products. Customers are influenced to study consumer behavior
(Chaudhary 2016). The broken lines can indicate the factors influenced and turned through each
other. However, there are several factors into multiple groups. It is achieved for the factors that
influence classification in broad categories.
4. Recommendations to improve marketing strategies of Vodafone
Vodafone utilizes a mix of segmentation strategies for segmenting the offerings in the
mobile network services, enterprises services as well as broadband services. The enterprise
services as well as broadband services accordingly (de Santos and Oliver 2018). It utilizes
geographical, psychographic as well as demographical segmentation. Vodafone is targeting
different sections of the societies with the multiple targeting strategy.
Product is the marketing mix of Vodafone. It offers several products consisting of voice,
messaging, data as well as fixed line solutions. The aim is helping the customers with the
demands of communication (Naidu 2017). On the other hand, the core utilization as well as
functionality of the handsets and voice services are the major elements. In order to cater
distinctive the demands of customers, the organization offers several tariffs targeted at multiple
segments of the customers. With the data usage as well as requirement of the sophisticated
handsets that become essential for the customers looking for the best quality of products. Hence,
Vodafone branded devices as well as service demands. The products are Vodafone phones,
smartphones, handsets, internet services as well as value added services. The place of marketing
mix of the organization is a major component. The report upto December 2013, Vodafone has
960 million customers. Hence, in order to strengthen the position in the countries, the

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organization bought Essar for 5.46$ billion (Mahajan et al. 2017). The marketing strategy of the
enterprise is emphasizing on the customers.
On the other hand, promotions in marketing mix of the organization that has significant
components. Vodafone uses the local name reorganizations that help to reach and maintain trust
of the local customers. Moreover, in order to promote the global appeal and communication as
the value of brand (Mgbemena et al. 2016). On the other hand, telecommunication giant uses
famed sports stars. It advertises its brand values and offers through billboards. TV commercials
and social media outlets for reaching a large social media outlets are important. It is important to
develop the process and make the use of advertisements like zoo zoos at the time of premier
league. There are famous brand ambassadors as well as recognized across the globe. The
enterprise undertakes research in the marketplace for determining the services as well as
products that are useful.
On the other hand, customer analysis is the marketing strategies of the organizations are
important to develop effective marketing strategies where 92% of total customers are included of
the 8% of customers and enterprises (Mathiraj and Sangeetha 2018). Customer segments are
targeted by several tariffs as well as positions that are adopted for the localized customer
preferences along with the process that are adopted for the localized customer preferences as
well as requirements. It mixed up with the voice, messaging, data as well as fixed line services.
The customers of the organization are classified as prepaid and contract customers. The prepaid
customer make the payment in advance as well as usually not bound to have minimum
contractual commitments.

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Vodafone uses local recognitions for reaching and maintaining trust of local consumers
(Naidu 2017). In marketing mix of Vodafone, the promotion is considered as the strongest point
for Vodafone. Segmentation is the procedures of splitting or segmenting the market into the
smaller groups. The variable of the market segmentation consists age, income, geographic as
well as psychographic and behavioral. In order to launch Vodafone product, it is required to
analyze the ages as well as income.
The markers are developed of several difference groups of people having general
characteristics as the customers. The groups command purchasing power of the market
segmentation that includes smaller groups and the products are important in this aspect. On the
other hand, being operationally performed through maintenance of operational efficiency. The
organization is reliable service to the customers at lower cost. The organization can capture the
market through its proper marketing strategies (Vyshnavi and Rao 2016). Competitor analysis as
well as market entry strategy would be helpful to analyze the activities for making strategic
planning. It assists the management for understanding competitive benefits or limitations related
to the competitors. On the other hand, it produces comprehension of the competitors about past
and present strategic planning. It is important for the organization to enter in the new market that
is always challenging. Effective market entry strategies would be helpful to analyze effective
market research that would be helpful in understanding the opportunities and competitive
landscape as well as understands the potential strategy of Vodafone.
5. Conclusion
The above discussion concludes that it is important for a business organization to analyze
customer behavior and the factors that influence decision-making process at the time of

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purchasing. Comprehending, analyzing as well as keeping track of the customer behavior have
an important role in managing the process of purchasing. In the present context, Vodafone
analyzes several factors that have an important impact on the customer purchasing process.
Group influence has an impact on the purchasing process. Advertising has an important role in
purchasing product. Hence, it is required to focus on the factors and take proper actions so that
the organization can obtain competitive benefits.

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