This report discusses the individual difference factors that influence consumer behaviour and brand switching in the context of Vodafone. It also provides recommendations for customer retention and resource management.
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Running head: CONSUMER BEHAVIOUR Consumer Behaviour Name of the student Name of the University Author note
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1CONSUMER BEHAVIOUR Executive Summary The primary purpose of this report is to elucidate on the individual difference factors that are important for the consumers of Vodafone. The report also throws light on the impact of the individual difference factors on purchasing decision along with brand switching process pertaining to Vodafone. The report also talks about the recommendations that can help in retaining the customers of Vodafone. The report recommends how the company can use social media for the promotion of its offers along with deals.
2CONSUMER BEHAVIOUR Table of Contents Introduction................................................................................................................................3 Individual Difference Factors of consumers of Vodafone.........................................................3 Effect of individual difference factor on purchasing decision and brand switching..................6 Recommendations for retention of customers and resources of Vodafone..............................10 Conclusion................................................................................................................................11 References................................................................................................................................13
3CONSUMER BEHAVIOUR Introduction Consumer behaviour refers to study of the individuals along with groups that are related to the purchasing and the disposal of the goods along with services. Consumer behaviour talks about the emotional and the behavioural responses of the consumers that has a great effect on purchasing of a product or a service. Dissimilarity is an integral part of nature as two persons in the society cannot be like each other. The individual differences existing in the society paves the path for differences in relation to buying pattern of an individual. Vodafone can be said to be the world leader that is instrumental in providing voice along with data communication services. The report also states how the marketers can make use of understanding in relation to individual differences for enhancing the marketing strategies. The report also talks about how the marketing strategies employed by the company takes into account the individual difference factors that helps in retaining the customers and the resources in the organization. The report states the effect of the individual difference factors on that of purchasing behaviour and how it helps in retaining customers. Individual Difference Factors of consumers of Vodafone The differences existing among the individuals in the society can be owing to heredity, environment or the training. The factors that influence the consumer behaviour are occupation, lifestyle, needs, consumer perception and social status. Vodafone offers services in relation to voice calls along with data services that is crucial for the young people of the present age. Vodafone refers to a network that is business focussed and it wants to attract new customers to the service. Vodafone knows that it will be able to make profits by providing services that can cater to the millenials and hence its services are designed for the younger generation.Vodafonetargetsthesocialmediauserswho areprimarilythemillenials (Vodafone.com.au., 2019). They need unlimited data so that they can listen to streaming
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4CONSUMER BEHAVIOUR music and hence the company aims at serving these group of the population. It has been found that the young generation who are more prone to technology wants to take recourse to the mobile services of Vodafone. The occupation that an individual has plays an important role in influencing the consumer decision of the individuals. The kind of job of an individual has been found to have direct influence on the services that an individual makes use of. The designation of an individual along with the nature of work have a great bearing on the buying decision that is made by an individual. The people working in the arena of information communication along with marketing needs the services so Vodafone targets these group of the customers. The people working in these fields are friendly to technology and hence the company aims at targeting these group of people (Liu et al., 2015). Buying tendency of an individual is proportionate to that of his earnings. The amount of money that is brought by an individual in his home has direct influence on the company of Vodafone. Being affluent increases the tendency of an individual to take recourse to the services of Vodafone. The individuals having high income would be capable of buying expensive along with premium products when compared to the individuals coming from the middle or the lower income group. The people belonging to the lower income group have more chances of spending on the necessary items and hence the company would not aim at targeting these segment of the population. The people coming from the lower strata of the society would be more interested in buying necessities like the grocery items and hence this an individual difference factor that is crucial for the consumers of Vodafone (Egan, Hughes & Palmer, 2015). Lifestyle is indicative of the way an individual lives in the society which depends on the social status of an individual. The needs of an individual leading a luxurious lifestyle would be different from an individual having a moderate lifestyle. The people leading an affluent lifestyle can act as the potential customers of Vodafone as they have higher chances
5CONSUMER BEHAVIOUR of needing the mobile services of Vodafone (Bamossy & Solomon, 2016).The personality that an individual has will also influence his buying decisions and have an impact on the purchasing power. It has been found that there exist a large number of people in Australia who use the mobile phone service as compared to that of tablet or a personal computer. Figure: Mobile phone users in Australia Source:Statista.com., 2019 The consumer perception that an individual has also great effect on the customer behaviour and it would influence his buying. There exists some people in the society having traditional norms who do not like the usage of the internet and the mobile connectivity service. The consumer perception is influenced by product pricing, product packaging along with the product quality (East et al., 2016).The high prices of the products symbolises luxury along with quality but it can be out of the reach of a large number of people due to its higher pricing. The low prices on the other hand can attract the customers who look for an affordable service but it can at the same time drive away some customers who are concerned regarding the quality issues.
6CONSUMER BEHAVIOUR The brand value along with ethics can make the customers feel good and it will have great effect on the purchasing of a product by an individual. It can be stated to be relevant for the consumers of the company as there would be some consumers who would always be loyal to the company and avail the services of the company (Solomon et al., 2017).There are buyers who have made use of the services of Vodafone from the beginning and they are satisfied with the service that is offered by the company. This is an important factor that influences the buying decisions of the customers. Effect of individual difference factor on purchasing decision and brand switching The social class of a customer can be identified by taking recourse to variables like income, profession along with education. Social class has a powerful influence on the purchase decision of the consumer. Society can be divided on the basis of power, prestige along with wealth. The upper class customers of Australia can afford to avail to avail the mobile phone service of Vodafone (Parsons, Maclaran & Chatzidakis, 2017).The wealthy people in the society use the mobile phone service of Vodafone as they would be able to make use of the services in the future. It has been found with the help of research that there were differences due to bill shock owing to gender. It has been found that the women experience bill shock owing to higher cost of the voice calls as compared to the men. The women have greater tendency of incurring greater than that of the expected costs due to the message services availed by them. The modern occupations compel the people to make use of a service that is more reliable and at the same time affordable (Javornik, 2016).People in the present age want a reliable connection that they want to use for making connecting with their family along with friends. People in modern age are often forced to live separately from their friends and their families as they have to pursue their career (Loureiro, Costa & Panchapakesan, 2017). This forces the
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7CONSUMER BEHAVIOUR people to make use of a mobile service that has been able to win the support of the people and has a brand appeal. It has been found that the various age groups have various kinds of needs along with wants and better understanding of the consumers can help Vodafone in the arena of marketing. The role of the teenagers has increased in the present age in the family structure as the parents in Australia depends on the computer skills of the teenagers (GarÃn-Muñoz et al., 2016). The parents believe that the teenagers are mature enough for making the decisions on the purchases and hence the parents are influenced to a great extent by the choices of their young children. It has been found that the men and the women differ on the basis of tastes. There exists gender influence on the choice of that of mobile operator. The behaviours along with the tastes of the women are constantly evolving and this would have effect on the buying of mobile phone service (Martinho, Magalhães & Pires, 2017). There was an assumption earlier that men used to act as the main decision makers but this perspective has changed in the present age. The women in the Australian society act as an important segment that makes use of the mobile phone service of Vodafone. There is a notion in the society that a person who is educated can adapt to the new way of doing the things and can easily make use of new technology. This accounts for the increasing use of Vodafone mobile phone among the people in Australia (Lovelock & Patterson, 2015).Research has brought out the fact that there exists link in between usage of the mobile phone and that of the educational level. The usage of mobile phone is dependent on the level of the education of an individual. There has been an increase in the number of mobile phone users in Australia as the number of educated people has increased in Australia.
8CONSUMER BEHAVIOUR Figure: Mobile phone users in Australia Source:Statista.com., 2019 Vodafone offers broadband service that can greatly be relied upon and the young people use the service for the purpose of mobile banking. The people who are young wants to engage themselves in risky adventures and they are more technologically equipped as compared to the older population of Australia (Alshurideh, 2016).The young people make use of the mobile phone service for the purpose of playing a game and this causes them to make use of the mobile phone service of Vodafone. The people who are older use the service of the mobile phone for the purpose of their business in contrast to the young people who make use of it for the purpose of socialization in Australia. Switching costs refer to one-time cost that faces the buyer when they switch from one supplier of a product to that of another. The concerns related to switching arises on account of time, energy along with effort that is required for switching. It is found that the men in
9CONSUMER BEHAVIOUR Australia want to make experiments in relation to the service provider and this makes them switch the service related to the mobile phone (Danaher et al., 2015). There exists individual differences in relation to brand switching and the women in Australia were more concerned regarding the aspect of brand switching. The women have been found to be more concerned regarding the aspect of brand switching as they are bothered regarding monetary cost. Customer inertia is found to exist when customer thinks that the service of an organisation is not capable of meeting the expectations of the customer but they still continue to avail the service with that same mobile phone service. A large percentage of the Australian population (49.6 %) believes in the fact that brand switching is inconvenient (Armstrong et al., 2015). Time constraint can prove to be an important factor that influences relationship in between price, quality along with value. Time pressure can cause the customers to process the information in a heuristic manner and they can come to the conclusion that higher price of the brands is associated with that of higher quality or value. In the event of motivation to process the information being low, information in relation to monetary price would be processed in a different manner. It was found on the basis of research that 65 % of the switchers of mobile phone service were men and around 60 % of the women thought about changing the mobile phone service but they did not do so (Parsons, Maclaran & Chatzidakis, 2017). The mobile switchers were mainly those people who were aged between the age of 18-44 and who had more tendency of making experiments in relation to the mobile phone service. The people within the age group of 18-44 wanted to make profits and this had an impact on their purchasing behaviour pertaining to mobile phone service. The people of the age cohort of 25- 45 represented majority of the Generation X who took recourse to mobile phone service switching.
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10CONSUMER BEHAVIOUR Recommendations for retention of customers and resources of Vodafone 4Ps Product Vodafone can bring out Vodafone branded phones along with headsets that can help in the growth of the company in Australia. Vodafone can make different kinds of tariff plans that can draw the customer towards the company (Alshurideh, 2016). Vodafone can improve the back office customer service that can help in providing superior experience to the consumers. It has been found that consumers were facing difficulties in relation to porting the numbers and the billing charges that were incorrect. Vodafone can improve upon these area that can help in delivering better service to the consumers. Price Vodafone can decrease the charge that it offers for that of mobile phone data service from $ 45 per month to that of $ 40 per month so that it can serve a wider consumer base. There are a large number of people in Australia who belong to the middle class and they would be able to take recourse to the service in the event of it becoming cheaper. Promotion The promotion of Vodafone mobile along with broad brand service can be promoted with the help of social media websites that can play an important role in increasing popularity of the brand. The special offers and the deals should be provided that can draw a large number of consumers within Australia towards the popular brand. Place In the present, the service of Vodafone are mainly sold primarily by taking recourse to customer care centres along with shops. Vodafone can be sold by making use of independent
11CONSUMER BEHAVIOUR retailer shop that can increase the popularity of the company. Vodafone can improve on the aspect of network that can assist them in the building of a strong distribution network across Australia. Targeting Vodafone can offer special kinds of tariff offer like the Vodafone Campus Pack that can help them in effectively targeting the students. Vodafone can also make special packs for the friends circle that can help in benefitting those people who want to stay in touch with the friends. Vodafone can also offer services that are designed for that of high end business customers that can develop the brand in the Australian market (Liu et al., 2015). It can create business services like Vodafone Mail that can be of immense help in delivering the presentations within a company. Market Segmentation Segmentation is indicative of the splitting of the entire market into that of smaller groups. Vodafone can launch plans along with packages for that of the small medium enterprise along with the large scale business. The segmentation should take into account the various business within Australia and the services should be customised on the basis of the needs of the clients and the business. Conclusion Consumer behaviour is indicative of study of individuals which is related to the purchasing of goods. An individual who is more affluent can use the mobile network along with the broadband service offered by Vodafone. Individuals possessing a high amount of income can purchase the premium products as compared to those people who belong to that of the lower income group. The individuals who lead luxurious lifestyle would have different needs from those people leading a moderate lifestyle. There occurs differences pertaining to
12CONSUMER BEHAVIOUR bill shock among the male and the female gender. Women in Australia face bill shock due to that of higher cost of voice calls when compared to men. An educated person can easily adjust to the new technologies. There has been an increase in the number of educated people in Australia that has increased the consumer base of Vodafone.
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14CONSUMER BEHAVIOUR Liu, F., Zhao, X., Chau, P. Y., & Tang, Q. (2015). Roles of perceived value and individual differences in the acceptance of mobile coupon applications.Internet Research,25(3), 471-495. Loureiro, S. M. C., Costa, I., & Panchapakesan, P. (2017). A passion for fashion: The impact of social influence, vanity and exhibitionism on consumer behaviour.International Journal of Retail & Distribution Management,45(5), 468-484. Lovelock, C., & Patterson, P. (2015).Services marketing. Pearson Australia. Martinho, G., Magalhães, D., & Pires, A. (2017). Consumer behavior with respect to the consumption and recycling of smartphones and tablets: An exploratory study in Portugal.Journal of Cleaner Production,156, 147-158. Parsons, E., Maclaran, P., & Chatzidakis, A. (2017).Contemporary issues in marketing and consumer behaviour. Routledge. Solomon,M.R.,White,K.,Dahl,D.W.,Zaichkowsky,J.L.,&Polegato,R. (2017).Consumer behavior: Buying, having, and being. Boston, MA, USA:: Pearson. Statista.com. (2019). Mobile phone users in Australia 2011-2019 | Statistic. Retrieved from https://www.statista.com/statistics/274677/forecast-of-mobile-phone-users-inaustralia/ Vodafone.com.au.(2019).MobilePhonePlans.Retrievedfrom https://www.vodafone.com.au/plans