Influence of Situational Factors on Consumer Purchases

This study examines the influence of situational factors on consumer purchases and how Vodafone can influence consumers' purchasing behavior. It analyzes the buyer decision process, critiques the effects of situational influences, and compares consumers and organizations in terms of their markets and buying behavior. The study also examines the stages of information processing and the internal factors that influence each stage in relation to consumer behavior. Additionally, it evaluates a variety of external factors and their influence on consumer behavior.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Introduction:................................................................................................................................2
2. Analyse the buyer decision process and critique effects of situational influences on consumer
purchases..........................................................................................................................................2
3. Compare and contrast consumers and organisations in terms of their markets and buying
behaviour.........................................................................................................................................5
4. Critically examine the stages of information processing and the internal factors that influence
each stage in relation to consumer behaviour..................................................................................7
5. Evaluate a variety of external factors and their influence on consumer behaviour.....................9
6. Assess key trends and issues facing consumers today and describe the potential effects on
current marketing strategies...........................................................................................................12
7. Conclusion:................................................................................................................................14
Reference List:...............................................................................................................................16

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1. Introduction:
Vodafone in current business scenario is one of the leading companies occupying a
predominant place in the telecommunication industry. While establishing the business in various
multinational countries the business experts have made their business strategies and policies as
per consumers buying behaviour. While establishing the entire process of business in the market
of Australia, Vodafone has critically evaluated the purchasing behaviour of Australian people
(vodafone.in, 2018). In this very specific study, in-depth evaluation is conducted on how
Vodafone can influence consumers’ purchasing behaviour. Some of the most effective internal
and external factors have also been analyzed so that Vodafone can make their strategies for
fulfilling needs and demands of the customers. The primary products and services that Vodafone
provides to the destination of customers include voice, messaging, data and fixed line solutions
and devices to helping customers in order to fulfil their entire communications needs.
2. Analyse the buyer decision process and critique effects of situational influences on
consumer purchases
While analyzing the buyer’s decision process the business experts of Vodafone have
focus on evaluating several stages. On the very first stage, business experts intend to identify the
problem that customers are facing while using products (Solomon et al., 2014). At the same time,
Vodafone intends to segregate their customers as per geographic and psychographic zones.
Second stage analyzes the kinds of product designs are attracting the attention of customers. In
case of analyzing the stages, the business experts tend to focus on providing additional offers of
internet so that customers tend to show their interest in using the services. Stage three is the
evaluation of alternatives (Karimi, Papamichail & Holland, 2015). If the implemented business

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strategy fails to draw the attention of customers, the business experts intend to implement
alternative strategies and policies. On the fourth stage, the business experts decide the final
implemented strategies and policies so that consumers tend to show their interest in using
products and services (Raheem, Vishnu & Ahmed, 2014). Fifth stage is the analyzing phase of
post purchasing behaviour of customers. After purchasing the product and services, the business
experts collect views from the customers with the help of which the business experts can share
the feedback and change their purchasing decision.
Figure: Analyzing Buyer’s Decision Process
(Source: Xie, Zhang & Zhang, 2014)

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As per Vodafone market scenario, the situations that influence highly in customers’
purchasing behaviour include social surroundings, physical surroundings and purchasing
reasons.
 Physical surroundings:
The geographic and institutional location of Vodafone is one of the most influential
factors that can change purchasing decision of customers (Joshi & Rahman, 2015). In Australia,
most of the Vodafone stores are established in populated cities such as Melbourne, Brisbane and
Sydney and so on. The customers do not have to face challenges in visiting to the stores of
Vodafone. In addition, the overall structures of the stores are well designed filled with proper
visual merchandise. As a result, the customers can make a good impression at first.
 Social surroundings:
Social surrounding is related to the people who are directly involved in the purchasing
decision. In case of Vodafone, the shopping environment that the business experts tend to
maintain is very much friendly and agile (Ali & Ahmad, 2016). With the help of friendly work
environment, the customers belonging to diverse social and cultural backgrounds and attitudes
do not have to face challenges in dealing with the service users effectively (Papadopoulos &
Heslop, 2014). On the other hand, the employees working within Vodafone store are from
various cultural backgrounds and attitudes so that they can make a friendly environment at the
workplace.
 Purchasing situations:

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Vodafone makes their business decision and pricing strategy as per purchasing situation.
It is however undeniable that people with average income status are the primary target customers
of Vodafone. As a result, the product price that the business experts have imposed is very much
affordable for the moderate cost customers (Dagher & Itani, 2014). Therefore, the customers do
not have to face challenges in affording Vodafone services. In addition, it has also been observed
that Vodafone in order to make their purchasing environment more feasible for the customers
have launched both online as well as offline stores.
Apart from all the situational factors, influencing customers’ buying behaviour the study
has focused to highlight time as a major purchasing situation for purchasing products. If the
business experts cannot provide the services within stipulated time, the customers tend to show
their negative approach in purchasing a product (Jung Chang, Yan & Eckman, 2014). On the
other hand, the study has also evaluated the fact that providing services within stipulated time is
one of the major responsibilities of Vodafone business managers. At the same time, the study has
also focused to highlight the fact that all the stores of Vodafone in Australian market are
available seven days in a week.
3. Compare and contrast consumers and organisations in terms of their markets and
buying behaviour
The overarching term customers’ purchasing behaviour is the amalgamation of attitude,
preference, intention and decision making power of a customer before purchasing products and
services. Before purchasing the services, the customers tend to collect an in-depth overview
about the quality of products and various product components (Wind, Thomas & Sheth, 2014).

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However, in this specific part the study has made a comparative analysis between customers and
organizations in terms of their markets and buying behaviour.
Vodafone in Australian Market:
As per Australian market scenario, it has however been observed that the country is well
populated along with having the presence of technological advancement. In such a
technologically advanced country, Vodafone has launched their wings for the purpose of
expanding their venture (Moser, 2015). The primary products and services with which the
organization is dealing include voice, messaging, data and fixed line solutions and devices. The
pricing strategy is average so that the organization can grab the attention of both premium
customers as well as low cost customers. Online media channels are the primary promotional
platform with the help of which the business experts intend to introduce their brands to the
people (Kanchanapibul et al., 2014). Both online as well as offline stores are the suitable places
with the help of which the business experts can use their services. However, Vodafone is one of
the most prestigious brands in the market of Australia which constantly giving a threats to its
competitors. With the help of an effective customer services the organization can easily deal with
the diver cultural people.
Customers’ approach in Australia:
Customers in the market of Australia have been segregated as per geographic,
demographic and psychographic segmentation. As per geographic market segmentation, the
organization has targeted those customers who belong to populated cities of Australia. Vodafone
has targeted those people who belong to average income status (Johnstone & Tan, 2015). Both
male and female customers got equal priority and response from the business experts. On the

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other hand, the study has also evaluated that people belonging to various cultural backgrounds
and attitudes can get equal response and priority. Therefore, the customers from various cultural
and religious backgrounds do not have to face challenges in using the services of Vodafone.
Comparative analysis:
After making an in-depth critical analysis it can be thus stated that Vodafone has
developed their business strategy in such a way that it can easily influence on the purchasing
decision of the customers (Kumar & Ghodeswar, 2015). The study has also evaluated that low
cost pricing strategy is very much effective in drawing the attention of low cost customers. On
the other hand, the business experts can easily interact with the people of diverse cultural
backgrounds and attitudes. In this kind of situation, the business experts of Vodafone had to grab
multilingual competency (Frederiks, Stenner & Hobman, 2015). With the help of effective
multilingual competency, the business experts would be able to easily communicate with the
customers. Effective communication highly influences the customers purchasing behaviour and
decision-making.
4. Critically examine the stages of information processing and the internal factors that
influence each stage in relation to consumer behaviour
The internal factors that highly influence consumers’ purchasing behaviour are as
follows:
 Attitude of the service providers:
The service providers who are associated with the business process of Vodafone are very
professional and well mannered. The employees tend to give equal priority and response to all

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the customers. The regulations like anti-discrimination act and gender equality act are strictly
maintained at the workplace (Rezaei, 2015). In addition, customers having language barrier do
not have to face challenges in using the services of Vodafone. The business experts are trained in
maintaining both verbal communication as well as non-verbal communication.
 Way of communication:
The way of communication that the business experts of Vodafone tend to maintain with
the customers includes verbal and non-verbal. The customers who have language barrier can
easily communicate with the service provider with non-verbal communication methods (Wang &
Yu, 2017). As a result, customers do not have to face challenges in using the services of
Vodafone. However, proper communicative approach leaves positive impact on the overall mind
of customers in influencing their purchasing behaviour.
 Overall internal structure of the organization:
As per internal structure of the organization the business experts of Vodafone has
introduced two sections in customer service department. In one particular section, customers can
receive their products and services and give them immediate feedback. On another section of
customer service department the customers can resolve any kinds of queries that they have while
using the services (Yogesh & Yesha, 2014). If the customers are unable to visit Vodafone store
directly they can communicate with the service providers either by telephonic communication or
by internet. As a result, customers tend to show their positive response in using the services. In
addition, the business associates of Vodafone are available within services for twenty-four hours
so that customers can communicate with them at any time.
 Personal needs and demands

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The business experts while making their internal structure always focus on whether
Vodafone services can fulfil the personal needs and demands of the customers. Service users are
from different psychological backgrounds and values (Wee et al., 2014). In this kind of situation,
the business experts always tend to evaluate whether this kind of internal service method is
effective to meet customers desires of Australian market or not. The business experts of
Vodafone have provided every facility to the customers for fulfilling their needs and demands.
After evaluating the overall study, it can be summarized that the customers who have
language barrier can easily communicate with the service provider with non-verbal
communication methods. If the customers are unable to visit Vodafone store directly they can
communicate with the service providers either by telephonic communication or by internet
(Vitell, 2015). As a result, customers tend to show their positive response in using the services.
Service users are from different psychological backgrounds and values. It has also been observed
that based on the behavioural approach on behalf of sales executives the customers purchasing
behaviour is influenced highly. If the customers are unable to visit Vodafone store directly they
can communicate with the service providers either by telephonic communication or by internet.
Service users are from different psychological backgrounds and values. In this kind of situation,
the business experts always tend to evaluate whether this kind of internal service method is
effective to meet customers desires of Australian market or not.
5. Evaluate a variety of external factors and their influence on consumer behaviour
The primary products and services with which the organization is dealing include voice,
messaging, data and fixed line solutions and devices. The pricing strategy is average so that the
organization can grab the attention of both premium customers as well as low cost customers.

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Both male and female customers got equal priority and response from the business experts. On
the other hand, the study has also evaluated that people belonging to various cultural
backgrounds and attitudes can get equal response and priority. The study has also evaluated that
low cost pricing strategy is very much effective in drawing the attention of low cost customers.
On the other hand, the business experts can easily interact with the people of diverse cultural
backgrounds and attitudes.
The primary external factors that highly influence customers’ buying behaviour are as
follows:
 Political:
The political environment of Australia is stable which enables the business experts in
running their entire process of business effectively. The government taxation policies and
regulations are very much transparent. Customers while using the services do not have to face
any kind of political chaos (Xu, Frankwick & Ramirez, 2016). Vodafone after expanding the
business in the market of Australia has not faced challenges in grabbing the attention of
customers who belong to various geographical boundaries.
 Economic:
As per economic strength of Australia, it has been observed that Vodafone can easily
draw the attention of customers (Rani, 2014). People belonging to this specific country are high-
income status because of which the customers do not have to face challenges in paying the
product cost of Vodafone.
 Socio-cultural:

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As per socio-cultural factors the business organization is constituted with the people o
various cultural backgrounds and attitudes. On the other hand, customers are also from different
cultural backgrounds (Xie, Chen & Wu, 2016). In order to grab the attention of customers in
various cultural backgrounds and attitudes the business experts intend to use different languages
so that customers do not hae to face difficulties in using the services.
 Technological:
Vodafone is immensely developed in technology with the help of which customers can
easily communicate with the service providers at their own work place. By using advanced
technology the business experts get detailed overview about new services provided by Vodafone.
In addition, the business experts are very much advanced in operating advanced technology
which enables them constant feedback to the customers (Hajli, 2015). As a result, customers
automatically show their positive response on the overall purchasing behaviour.
Based on the overall external factors influencing customers’ purchasing behaviour it can
be summarised that the government taxation policies and regulations are very much transparent.
Customers while using the services do not have to face any kind of political chaos (Solomon et
al., 2014). People belonging to this specific country are high-income status because of which the
customers do not have to face challenges in paying the product cost of Vodafone. In order to
grab the attention of customers in various cultural backgrounds and attitudes the business experts
intend to use different languages so that customers do not have to face difficulties in using the
services. By using advanced technology, the business experts get detailed overview about new
services provided by Vodafone. In addition, the business experts are very much advanced in
operating advanced technology, which enables them constant feedback to the customers.

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6. Assess key trends and issues facing consumers today and describe the potential effects on
current marketing strategies
Instead of having numerous product and service facilities, the customers of Vodafone are
facing innumerable issues. The issues are as follows:
 The premium customers are not getting superior quality of services due to the low price of
products. As a result, customers are showing their reluctance in using the services again. On
the other hand, it has also been observed that customers need to have services within proper
stipulated time (Karimi, Papamichail & Holland, 2015). In case of any sudden delay the
premium customers are losing their hope and reliability
 The country and the inhabitants are very much advanced in technology. From that
perspective, the customers are having low social media presence. In this kind of situation, the
business experts fail to gain customers’ loyalty. Customers in present business scenario are
intending to use the service of another telecommunication industry
 The organization like Vodafone is restricted within core products (Xie, Zhang & Zhang,
2014). In order to expand the entire business in the international market the business experts
would have to focus on rendering product diversity so that customers can show their interest
to purchasing Vodafone services.
In order to increase the number of target customers the business experts of Vodafone
have decided to follow 4Ps of marketing strategies, which are s follows:
 Product:
Voice, messaging, data and fixed line solutions and devices are the core services with
which the organization is maintaining their business sustainability (Joshi & Rahman, 2015). In

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order to give a constant market threats the business experts would have to increase the number of
products.
 Price:
Only low price cost is the market strategy of Vodafone due to which people belonging to
high-income status tend to show their reluctance in using Vodafone services (Ali & Ahmad,
2016). In order to overcome the challenges Vodafone needs to render high cost pricing strategy
as well with the help of which premium customers can use their services.
 Promotion:
Vodafone uses both traditional media as well as social media as their most effective
promotional platform. As Australia is technologically advanced country, the business experts
should primary focus on social media vehicles for promoting their products and services (Dagher
& Itani, 2014). As a result, the organization can easily gain international image and reputation.
 Place:
Both online and offline stores of Vodafone are available in the market with the help of
which the business experts can easily sell their products to the customers (Moser, 2015). Online
stores can reach the doorstep of those customers who belong to remote areas of Australia.
After evaluating the customers’ issues faced from Vodafone service providers, it can be
thus concluded that customers need to have services within proper stipulated time. In case of any
sudden delay, the premium customers are losing their hope and reliability. In addition, the
customers are having low social media presence (Rezaei, 2015). In order to expand the entire
business in the international market the business experts would have to focus on rendering

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product diversity so that customers can show their interest to purchasing Vodafone services. In
order to overcome the challenges Vodafone needs to render high cost pricing strategy as well
with the help of which premium customers can use their services. The primary products and
services with which the organization is dealing include voice, messaging, data and fixed line
solutions and devices. The pricing strategy is average so that the organization can grab the
attention of both premium customers as well as low cost customers. As per geographic market
segmentation, the organization has targeted those customers who belong to populated cities of
Australia. Vodafone has targeted those people who belong to average income status. Therefore,
the customers from various cultural and religious backgrounds do not have to face challenges in
using the services of Vodafone.
7. Conclusion:
After evaluating the overall study, it can be thus concluded that Vodafone has
implemented innovative strategies for influencing customers purchasing behaviour. While
establishing the entire process of business in the market of Australia, Vodafone has critically
evaluated the purchasing behaviour of Australian people. In case of analyzing the stages the
business experts tend to focus on providing additional offers of internet so that customers tend to
show their interest in using the services. After purchasing the product and services, the business
experts collect views from the customers with the help of which the business experts can share
the feedback and change their purchasing decision. In order to grab the attention of customers in
various cultural backgrounds and attitudes the business experts intend to use different languages
so that customers do not have to face difficulties in using the services. By using advanced
technology the business experts get detailed overview about new services provided by Vodafone.

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In addition, the business experts are very much advanced in operating advanced
technology, which enables them constant feedback to the customers. In Australia, most of the
Vodafone stores are established in populated cities such as Melbourne, Brisbane and Sydney and
so on. The customers do not have to face challenges in visiting to the stores of Vodafone. It is
however undeniable that people with average income status are the primary target customers of
Vodafone. As a result, the product price that the business experts have imposed is very much
affordable for the moderate cost customers. If the business experts cannot provide the services
within stipulated time, the customers tend to show their negative approach in purchasing a
product.

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