Consumer Behaviour Towards Mobile Phone Service Providers

This report examines the social and environmental factors that impact consumer decision making when purchasing mobile phones from service providers in Australia. It provides recommendations for improving marketing strategies for Vodafone operators.

Running head: CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE
PROVIDERS
Consumer behavior towards Australian mobile phone service providers
Name of the University:
Name of the Student:
Authors Note:

1CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
Table of Contents
1. Introduction......................................................................................................................2
2. Social factors and impact on consumer decision making................................................2
3. Impact of environmental factors on consumer decision making.....................................5
4. Recommendations............................................................................................................7
5. Conclusion.....................................................................................................................10
References..........................................................................................................................11
Bibliography......................................................................................................................13

2CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
1. Introduction
Consumer preferences play a major role in maintaining the efficacy of the operations that
are undertaken by the organizations. The different elements of consumer behavior are based on
the identification of the needs of the same and the change in the preferences that drives the
consumers to make a buy of the products. The report will be examining the different social and
environmental impacts on the decision making process of the consumers. The report will also
evaluate the manner in which the Vodafone might bring forth changes in the propositions for
adhering to the changing needs of the customers.
2. Social factors and impact on consumer decision making
The social factors play an important role in influencing the consumers to make a buy of
the products or the services. The key changes that might be undertaken by the Vodafone are
based on the evaluation of the needs of the consumers. The decision making capabilities of the
consumers are mainly supported through the recommendations and the references that are made
by the relatives and the associates. On the other hand, the role of the individual consumers in the
society and the social status of the same helps in understanding the potentiality of the consumers.
The Motivation needs theory by Abraham Maslow reflected on the identification of the
needs of the customers on the five part priority system. The identification of the needs of the
people relating to survival, safety, love, esteem, and self-actualization helps the enterprises in
maintaining the efficacy of the operations (Angell & Kraemer, 2014). On the other hand, the
reasoned theory evaluates customer's behavior relating to their intention of creating a particular
outcome. The organizational understanding of the rational decision making capabilities of the

3CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
consumers helps the same in planning the operations (Emtiyaz & Keyvanpour, 2012). The
identification of the buyer’s intention and the manner in which the product offerings of the
organization appeals to the interest of the customers helps the businesses in maintaining the
efficacy of the operations that are undertaken by the same.
The Vodafone is facing different issues relating to the switching loyalty of the customers.
The family background, cultures and mindset of the people helps in understanding the behavior
of the customers towards the buying intention. (Huang & Van Mieghem, 2013) On the other
hand, the referrals from the associates of the consumers help in enhancing the buying intent of
the consumers. A research by Australian Communication Media Authority’s (ACMA) found that
17% of the consumers switched their preferences to another network provider in the nation, as
the friends and associates of the consumers relied on the different network channels (Naeem et
al., 2015). On the other hand, the report also portrayed that 22% of the respondents agreed to the
fact that they switched to other service providers as the mobile phone was utilized more than
anticipated (Thirumalai & Ahdout, 2012). Identifying the changes in the buying intent of the
consumers has helped the network providers in Australia in maintaining the efficacy of the
business operations. On the other hand, the identification of the changing social role of the
customers has helped the businesses in maintaining the efficacy of the product and service-
designing phase that are undertaken by the same. Boudali and Economou (2013) stated that the
humans being social animals are influenced b the roles that are played by the same in the social
structure. On the other hand, Moon, Park and Kim (2015) stated that the changes in the social
structure and the role play models of the customers greatly influences their buying intent. The
social structure and the employability of the customers in the different economies help in
identifying their potentials of affording the range of products or services that are offered by the

4CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
business. Social factors relating to the employability of the target audience helps in supporting
the purchasing potential of the same. On the other hand, the different changes that might be
undertaken by the Vodafone in Australia are based on the assessment of the customer satisfaction
gained by the people through the utilization of the product and the services. Huang and Van
Mieghem (2013) stated that the identification of the needs of the customers helps the
organizations in maintaining the proficiency of the operations through steady developments in
the line of product and service offerings. On the other hand, the identification of the different
changes that might be undertaken by the organization aims at adhering to the buyer’s intent of
making a buy.
In a research, it has been portrayed that more than 30% of the customers switch from one
network provider to another due to degradation of the service quality (Lee et al., 2013). On the
other hand, the research also illuminates that the involvement of customer’s associates in
different service providers has resulted to the switches. Referrals and recommendations are one
of the major factors that influence buyer’s decision making in the process. The identification of
the preferences of the customers is based on the understanding of the needs of majority of the
people. On the other hand, the economic status of the region helps the organizations in
determining the potentiality of the buyers in making a buy of the products or services that are
offered by the telecom industry in Australia. Therefore, the identification of the different social
factors helps in upholding the efficacy of the operations that are planned by the Vodafone in
Australia.

5CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
3. Impact of environmental factors on consumer decision making
The environmental factors affect the buyer’s decision making capabilities through the
influence of the contextual factors and situational factors. Yaeli et al. (2014) stated in the
research that some 43% of the consumers make an purchase decision based on the impulse
related to commercialization of the idea. However, Emtiyaz and Keyvanpour (2012) stated that
the induction of the contextual factors helps in boosting the impulse of the consumers for making
a buy of the commodity to 93%. The ambient condition is one of the most important parts of the
contextual factor which is believed to influence the perceptions. The ambient condition triggers
in the mind of the customers and thereby stimulates the five senses, which helps in supporting
the buyer’s decision making capabilities (Chen & Cheng, 2013). The syllogistic structures also
influence the buying behavior of the consumers in Vodafone service providers. The utilization of
different signs and symbols in the promotional functions helps the organizations in attracting the
attention of the cosnume4rs and thereby persuade the same to make a buy of the products and the
services.
The identification of the different contextual aspects of buyer’s decision making
capabilities helps the organizations in maintaining the efficacy of the operation that are
undertaken by the same. On the other hand, the situational factors also play a major role in
influencing the buyer’s decision making capabilities. Huang et al. (2014) stated that mood and
motivation of the customers play a major role in supporting the buying intentions of the
consumers. On the other hand, Angell and Kraemer (2014) stated that the hedonic motivation of
the consumers drives the same to make a buy of a product or service through the experience
gained by the same while utilizing the offering. The key elements of change that are undertaken
by the organization are based on the assessment of the customer needs and preferences.

6CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
Baboli et al. (2012) stated that the identification of the situation and the manner in which
it affects the customer’s decision making process has helped the Vodafone in Australia to
develop different strategies in order to enhance the operations of the same. The mood of the
customers and the different influencing factors relating to the quality of the products or services
affects the buyer’s decision making power. As per the research that was undertaken by
Australian Communication Media Authority’s (ACMA), 30% of the customers switched their
choices from one network provider to the other due to the poor service quality (Quilumba et al.,
2015). The degradation of the service quality of the network providers affected the customer
decision making of the target audience. The key elements of change that are undertaken by the
organizations under the Vodafone of Australia are based on the assessment of the needs and
choices of the customers. On the other hand, the stigma and impulsive buying behavior of the
consumers has helped the organization in understanding the preferences of the customers. Kumar
et al. (2016) stated in the research that 39% of the customers switch their choices due to the poor
connectivity of the services that are provided by the Vodafone in Australia. The different
environmental factors influence the buying behavior of the customers in the organizational
context. The key elements of change that are undertaken by the organizations are based on the
identification of the needs of the same while operating in diverse international markets. Yi and
Gong (2013) stated that the different environmental factors plays a major role in influencing the
buyer’s decision making initiatives of the customers. The identification of the environmental
factors and the different psychological impacts of the factors on the buyer’s decision making
process help organizations in upholding the efficacy of the business operations.

7CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
4. Recommendations
Based on the social and environmental factors impact on the consumer behavior towards
purchasing mobile phones from the service providers in Australia, certain effective
recommendations are provided below for improving marketing strategies of Vodafone operators.
 Social factors prevailing among the Australian consumers is observed to greatly impact
their purchase decision towards mobile phone and it has been revealed that quality is
Smartphone is a vital factor that influences their switching decision. Considering same,
Vodafone operators are recommended to constantly focus on technological advancement
in their offerings that can attain attraction of increased Australian consumer base.
Moreover, they can also focus on enhancing their battery technology that is considered to
be the most important feature demanded by target consumers. In addition, through
focusing on such technological advancement there is an increased scope for Vodafone
operators retailers to expand through analyzing consumer affordability and purchasing
habit. From analyzing environmental factors impact on consumer buying and brand
switching behavior it is observed that constant technologic innovation is trending in
Australian mobile service industry. In attaining competitive advantage in such
environmental situation, the mobile service providers are recommended to make
increased investment in UX design for developing cell phones. Implementation of this
technological advancement can facilitate in making information simpler to understand
that can grow sense of brand loyalty among consumers.
 Selecting suitable mobile environment is recommended to the Vodafone operators as it is
deemed important to reach the major target audiences. In accomplishing this strategy, the
companies can consider using both Oracle and KISS Metrics that can facilitate them in

8CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
developing an application along with mobile application. Using such applications serve
distinct purposes and also address different target consumer bases. As it has been noticed
that Australian consumers tend to be loyal to mobile applications as they look for easier
and faster ways in interacting with the brands. Through implementing this strategy, the
marketers of Australian mobile service providers can simplify the shopping experience
along with offering specific “on-the-go” services along with basic information.
 The Vodafone service providers of Australia are also recommended to take advantages of
developing multi-screen and multi-device opportunity. These providers must also develop
effective campaigns for different devices along with offering relevant content to distinct
segments of Australian consumers thus increasing return on investment and switching
costs. Moreover, it is also recommended that using location based advertisements through
using geo-location service that can communicate targeted messages to specific Australian
consumers.
 The Vodafone service providers are also recommended to integrate with the social media
platforms as it can serve as a great place to monitor and listen the target audiences of
Australia. In addition, it is also recommended that the mobile strategy must be integrated
with social media platforms as this encompasses sharing reviews, having social sharing
buttons along with generating content that is engaging for audiences. Implementing such
strategy can increase loyalty of consumers towards the Vodafone service providers that
will decrease the chances of switching to other brands. Using such applications serve
distinct purposes and also address different target consumer bases. As it has been noticed
that Australian consumers tend to be loyal to mobile applications as they look for easier
and faster ways in interacting with the brands.

9CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
 For analyzing the social and environmental factor impact on consumers purchase
intention and rand switching behavior, it has been gathered that the consumers are likely
to purchase cell phones of a brand that reveals highly engaging content on a constant
basis. Considering such situation, the mobile service providers are recommended to send
timely alts along with notifications regarding coupons discounts and savings on
purchasing cell phones of their brand. In addition, the companies can also consider using
optimized e-mail marketing as it serves as an effective manner to keep the target
consumers updated regarding any discount or coupons through offering newsletters.
Another effective manner to market mobile phone service to target consumers is through
leading with value. This can be accomplished through engage consumers with the mobile
phone activities along with integrating their multiple data sources along with moving
close to centralized data systems as much as possible.
5. Conclusion
The report analyzed the manner in which the Australian telecomm industry might bring
forth changes in the propositions for adhering to the changing needs of the customers. It was
gathered from the paper that the decision making capabilities of the consumers are mainly
supported through the recommendations and the references that are made by the relatives and the
associates. Moreover, identifying the changes in the buying intent of the consumers has helped
the Vodafone service providers in Australia in maintaining the efficacy of the business
operations. Based on such findings it has been recommended that focusing on such technological
advancement there is an increased scope for Australian mobile phone retailers to expand through
analyzing consumer affordability and purchasing habit. Selecting suitable mobile environment is

10CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
recommended to the Vodafone service providers as it is deemed important to reach the major
target audiences.
References
Angell, R. L., & Kraemer, J. R. (2014). U.S. Patent No. 8,812,355. Washington, DC: U.S. Patent
and Trademark Office.
Baboli, P. T., Eghbal, M., Moghaddam, M. P., & Aalami, H. (2012, July). Customer behavior
based demand response model. In Power and Energy Society General Meeting, 2012
IEEE (pp. 1-7). IEEE.
Boudali, O., & Economou, A. (2013). The effect of catastrophes on the strategic customer
behavior in queueing systems. Naval Research Logistics (NRL), 60(7), 571-587.
Chen, C. W., & Cheng, C. Y. (2013). How online and offline behavior processes affect each
other: customer behavior in a cyber-enhanced bookstore. Quality & Quantity, 47(5),
2539-2555.
Emtiyaz, S., & Keyvanpour, M. (2012). Customers behavior modeling by semi-supervised
learning in customer relationship management. arXiv preprint arXiv:1201.1670.
Huang, H. C., Lin, T. H., Lai, M. C., & Lin, T. L. (2014). Environmental consciousness and
green customer behavior: An examination of motivation crowding effect. International
Journal of Hospitality Management, 40, 139-149.

11CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
Huang, T., & Van Mieghem, J. A. (2013). The promise of strategic customer behavior: On the
value of click tracking. Production and Operations Management, 22(3), 489-502.
Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R., & Kannan, P. K. (2016). From social to
sale: The effects of firm-generated content in social media on customer behavior. Journal
of Marketing, 80(1), 7-25.
Lee, S., Min, C., Yoo, C., & Song, J. (2013, September). Understanding customer malling
behavior in an urban shopping mall using smartphones. In Proceedings of the 2013 ACM
conference on Pervasive and ubiquitous computing adjunct publication (pp. 901-910).
ACM.
Moon, H., Park, J., & Kim, S. (2015). The Importance of an innovative product design on
customer behavior: development and validation of a scale. Journal of Product Innovation
Management, 32(2), 224-232.
Naeem, A., Shabbir, A., Hassan, N. U., Yuen, C., Ahmad, A., & Tushar, W. (2015).
Understanding customer behavior in multi-tier demand response management
program. Ieee Access, 3, 2613-2625.
Quilumba, F. L., Lee, W. J., Huang, H., Wang, D. Y., & Szabados, R. L. (2015). Using Smart
Meter Data to Improve the Accuracy of Intraday Load Forecasting Considering Customer
Behavior Similarities. IEEE Trans. Smart Grid, 6(2), 911-918.
Thirumalai, G. P., & Ahdout, I. (2012). U.S. Patent No. 8,336,085. Washington, DC: U.S. Patent
and Trademark Office.

12CONSUMER BEHAVIOUR TOWARDS MOBILE PHONE SERVICE PROVIDERS
Yaeli, A., Bak, P., Feigenblat, G., Nadler, S., Roitman, H., Saadoun, G., ... & Sandbank, T.
(2014). Understanding customer behavior using indoor location analysis and
visualization. IBM Journal of Research and Development, 58(5/6), 3-1.
Yi, Y., & Gong, T. (2013). Customer value co-creation behavior: Scale development and
validation. Journal of Business Research, 66(9), 1279-1284.
Bibliography
Agrebi, S., & Jallais, J. (2015). Explain the intention to use smartphones for mobile
shopping. Journal of Retailing and Consumer Services, 22, 16-23.
Bergstrom, J. C., & Randall, A. (2016). Resource economics: an economic approach to natural
resource and environmental policy. Edward Elgar Publishing.
Hsiao, C. H., Chang, J. J., & Tang, K. Y. (2016). Exploring the influential factors in continuance
usage of mobile social Apps: Satisfaction, habit, and customer value
perspectives. Telematics and Informatics, 33(2), 342-355.
Vohs, K. D., Baumeister, R. F., Schmeichel, B. J., Twenge, J. M., Nelson, N. M., & Tice, D. M.
(2018). Making choices impairs subsequent self-control: A limited-resource account of
decision making, self-regulation, and active initiative. In Self-Regulation and Self-
Control (pp. 45-77). Routledge.
Wang, Y. S., Li, H. T., Li, C. R., & Zhang, D. Z. (2016). Factors affecting hotels' adoption of
mobile reservation systems: A technology-organization-environment
framework. Tourism Management, 53, 163-172.