Understanding Consumer Behavior and its Impact on Telstra: Insights and Recommendations

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Customer Behaviour

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Table of Contents
Introduction of the report.......................................................................................................................2
Background of the Company.............................................................................................................2
Social aspects and their impact on consumer decision-making and brand switching.............................2
Impact of the social factor affecting consumer decision-making.......................................................5
Environmental aspects and their impact on consumer decision-making............................................5
Impact of the Environmental factor affecting consumer decision-making.........................................6
Individual difference aspects and their impact on consumer-decision-making......................................7
Recommendation to improve organization marketing strategies...........................................................9
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

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Introduction of the report
Consumer Behaviour is determined as the study of individuals, groups, or
organization to buy, use, select goods and services to fulfill their wants and preferences.
Marketers expect that by understanding what drive the consumers to purchase goods and
services and the roles of the consumer in the decision-making process. Individual differences
are variation among diverse consumers with respect to specific characteristics (Corones &
Davis, 2017). This report discusses the social as well as environmental factors and their
impact on consumer decision making. In addition, it also discusses the individual influence
factors and recommendation to enhance the organization marketing strategies in Telstra
Corporation Ltd. in Australia.
Background of the Company
The Telstra Corporation Limited is Australia’s biggest telecommunication
organization, which develops and operates telecommunication markets and network involves
internet availability, voice, television, cell phone, and other products and services. It is the
prominent provider of broadband internet, home phones, and mobile phones. The main
objective is to develop technology solutions and content, which can be utilized by consumers
easily. They have a global presence in around more than countries and delivers 4.9 million
voice services, 3.6 million broadband services, and 17.7 million mobile services (Burgess,
Sellitto, Cox & Buultjens, 2015).
Social aspects and their impact on consumer decision-making and brand switching
Social factors are prevalent in the community, which affects the consumer decision-
making processes are family, reference groups, and roles & status.
 Family- The family members play an important part in designing individual needs,
preferences, and behaviour. It is the most significant customer buying organization in
the community. The pattern might change because of societal change as the influence
of consumer behaviour is increasing (Liu, Li, Xu, Kostakos & Heikkilä, 2016). In
addition, it is the most significant primary reference group as buyer consists of two
families, which consists of-
 The family of Procreation: It includes spouse/children, which impacts a buyer
depends upon the position:

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1. Husband- It may lead decision making associated with
telecommunication/automobiles.
2. Wife-It may dominate or lead decision making associated with mobile
appliances.
3. Equal- It may support for decision associated with best mobile choice.
 The family of Orientation: It includes parents and siblings, which gives an
individual-
1. Coordination towards politics/religious/economics
2. Source of self-worth/love/self-satisfaction
It offers a situation in which an individual grows; acquire values and principles, and
builds personality. It affects the decision making of people concerning the acquisition of
goods and services (Davvetas & Diamantopoulos, 2017).
 Reference groups- An individual reference groups comprise of all the groups that
have a direct impact on the individual behaviour. They share common buying
behaviour and have a major impact on each other. It is divided into three groups-
 Membership group- They are those groups, which are having a direct
influence on a consumer.
1. Primary: It involves Friends/Family/Co-workers/Neighbours/ with
whom that individual interacts constantly.
2. Secondary: It incorporates formal and less interaction such as trade
union/professional/ religious groups.
 Dissociative group- They are those groups whose values and one rejects.
 Aspirational group- They are those groups in which a person would like to
belong (Su, Jiang, Chen & DeWall, 2016).