Impact of Social and Environmental Factors on Consumer Decision Making - Telstra

This presentation explores the impact of social and environmental factors on consumer decision making and brand switching, with a focus on Telstra. It provides recommendations for improving marketing strategies and concludes with the importance of understanding these impacts.

Customer
Behaviour -
TELSTRA
ORGNIZATION

Titles
■ Introduction
■ Background of the company.
■ Social aspects and their impacts on consumer decision making.
■ Individual difference aspects and their impact on consumer decision-
making.
■ Recommendations.
■ Conclusion
■ References
TELSTR
A

Introduction
■ This report outlines various social and environmental aspects having significant
impact over consumer decision making.
■ For understanding this impact, it is important to know the meaning of consumer
behaviour.
■ Consumer behaviour is referred to the study of individuals, groups or
corporation considering fulfilment of wants and preferences (Garrigos-Simon et
al, 2012).
■ In last, several recommendations are also being suggested in improvement of
organisation marketing strategies in Telstra Corporation Ltd. in Australia.

Background of the Telstra
■ The Telstra Corporation Limited is Australia’s biggest
telecommunication enterprise which operates in telecommunication
industry and offering wide range of services like voice, internet provider,
cell phone and various other products and services.
■ The company was founded in 1975, 43 years ago.
.■ They have global presence in over 20 countries. They bring many
technology solutions and contents as per the needs of customers.

Social aspects and their impact
on consumer decision-making
and brand switching
■ In every community, social factors plays an important role while
affecting the decisions making process of consumer. It includes family,
reference groups and roles and status (Pickett-Baker & Ozaki, 2008) .
■ There are various others factors too that are having a significant
impact over the brand switching.

Social aspects and their impact
on consumer decision-making
and brand switching
■ Many Australian people spend a vast amount on digital services which
creates various opportunities for Telstra.
■ As per research, people in Australia spend 6 hours a day on social
media annually.
■ Technology running with internet also help them in their various
activities such as bill payment, news and various other resources
linked to technology.
■ This all is also seen in Telstra growth and success in area of digital
communication that transform the world of consumer in Australia.

Impact of the social factor
affecting consumer decision-
making■ These factors have a major impact on all the consumers living in a
society.
■ There are different perceptions carry by different people emphasizing
brand switching and decision making.
■ In Australia, many individual and people belong to long families who
are able to maintain contact with people via telecommunication
services as they have no time in for them in their daily lives and this
leads to opportunity for Telstra.
■ This is also the reason for Telstra growth and success in the Australian
market.

Environmental aspects and their
impact on consumer decision-
making■ There are various environmental factors such as demographic,
political, technological and cultural having significant impact over the
consumer decision making (Young et al, 2010).
1. Technology - Intense competition and availability of alternative
options for consumers in the form of advanced technology such as 4G
services and cameras may stimulate consumer to switch to another
brand. Telstra is providing high-tech mobile services as per the
customer needs and preference.

Environmental aspects and their
impact on consumer decision-
making2. Culture- It is composed of perceptions, behaviour, value system and
preferences (Linan, 2008). The culture, which is defined by Australian
people, is also influenced by geographically. Telstra notices that 78%
of individuals are older people and also using platforms like social
media and internet.
The company determines as the lifestyle along with customs of
individuals which assists in characterising of a society.

Environmental aspects and their
impact on consumer decision-
making■ Demographics - It divides the market on various consumer profiles
such as age, gender, lifestyle and income (Awad, 2011). It is very
important for Telstra to segment and targets the market on the basis
of various consumer profiles and behaviours such as high, medium
and low involvement, income level, etc.
■ Political – The telecommunication industry offers value-added
services, allow consumer to fulfil the requirement of their adaptive
needs. After the satisfaction of price and political instability, it has
enabled features such as fast network, superior customer service,
access cost and so on.

Impact of the Environmental
factor affecting consumer
decision-making■ The individuals in Australia are more concern towards their culture,
environment, perception and stability. Telstra is helping the customers
by various means and with delivering best deals and offers.
■ The company also manage to control carbon footprints with
stimulation of advancement in their digital products and services.
Telstra also follows various environmental regulations, which have an
impact on the purchasing decision of the consumers.
■ All these help them in fulfilling their commitment and lead them
towards success and growth.

Individual difference aspects and
their impact on consumer-
decision-making■ Consumer decision making is perceived as a cost-benefit analysis surrounded
by various psychological paradigms.
■ At every stage, their decision-making process is influenced by individual
differences. The diversity in the customers including their nature needs and
preferences all impact on the process of consumer decision making.
■ Some of the individual factors include motivation, personality, behaviour,
involvement, perception and learning (Taylor, Ntoumanis & Standage, 2008). In
next slide, there are respectively described.

Individual difference aspects and
their impact on consumer-
decision-making■ Needs – With the tenure of time and advent of technology, Telstra has both
appreciated and responsible for the needs of customers. They analysed that
78% of internet traffic is used for entertainment, education, home security and
e-health. This helps to develop relevant plans with best out of minimum prices
considering longer span of time.
■ Personality - Telstra as a brand involves warm, innovative, youthful, colourful,
patriotic, inviting, enthusiastic, and simplistic, which leads to generating a
positive image or personality in the minds of the consumers.

Individual difference aspects and
their impact on consumer-
decision-making■ Involvement – As per Telstra, consumer keeps on changing brands according
to their likes and dislikes. They also analyse both high involvement and low
involvement purchases encountered by the customers. In the end, it helps them
to develop adequate plans for those set of customers.
■ Motivation – Considering various motivational factors, Telstra concentrates on
different customers based on age groups, gender and income levels.

Recommendations
■ Telstra should follow the concept of individual differences in relation to
consumer decision-making process and brand switching to enhance their
marketing strategies.
■ They also need to do cost-benefit analysis is aligned with all the strategies so as
to get depth impact on the customer decision-making process.
■ As per different ages and requirements, individuals needs also differ and these
need to be considered by the company for rolling out various plans for their
customers.

Recommendations
■ Telstra should also be focused on 5G services so as to be the first mover in the
industry. This will help them to be in leading position in the industry.
■ In terms of pricing, Telstra needs to provide value-added services with the
lowest possible value.
■ By promoting specialised offers and deals, the company can attract more new
customers with satisfaction of existing customers. This also increases their
brand value in the market.

Conclusion
■ To conclude, it can be said as consumer decision making and brand switching
are broadly affected by environmental and social factors including individual
difference factors.
■ Telstra is providing high-end telecommunication service in Australia and to
maintain competitive edge in the market, it is important for them to understand
these impacts.

References
■ Garrigos-Simon, F. J., Lapiedra Alcami, R., & Barbera Ribera, T. (2012).
Social networks and Web 3.0: their impact on the management and
marketing of organizations. Management Decision, 50(10), 1880-
1890.
■ Pickett-Baker, J., & Ozaki, R. (2008). Pro-environmental products:
marketing influence on consumer purchase decision. Journal of
consumer marketing, 25(5), 281-293.
■ Linan, F. (2008). Skill and value perceptions: how do they affect
entrepreneurial intentions?. International Entrepreneurship and
Management Journal, 4(3), 257-272.
■ Awad, T. A. (2011). Environmental segmentation alternatives: buyers'
profiles and implications. Journal of Islamic Marketing, 2(1), 55-73.
■ Young, W., Hwang, K., McDonald, S., & Oates, C. J. (2010). Sustainable
consumption: green consumer behaviour when purchasing
products. Sustainable development, 18(1), 20-31.
■ Taylor, I. M., Ntoumanis, N., & Standage, M. (2008). A self-
determination theory approach to understanding the antecedents of

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