Consumer Behavior Analysis of Telstra Corporation Limited Services

This report provides an in-depth analysis of consumer behavior, focusing on Telstra Corporation Limited, a major telecommunications company in Australia. It explores various factors influencing consumer decisions, including motivation, personality, perception, and learning. The report examines Telstra's services, target audience (including students, families, and office workers), and the company's efforts to understand and respond to consumer needs. It delves into how personal, psychological, and social factors impact customer behavior, highlighting the importance of effective marketing strategies and understanding consumer expectations. The analysis also touches upon Telstra's competition, its product offerings, and the significance of adapting to changing market demands. The report emphasizes the role of consumer behavior in shaping purchasing decisions and the strategies companies can employ to attract and retain customers.

Running head: CONSUMER BEHAVIOR
Consumer Behavior
Name of the Student:
Name of University:
Author Note

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Introduction
Consumer Behavior is the study which is conducted on organizations, individuals and
group and their responses which are built towards specific services or products. It is difficult to
understand consumer behavior and the factors which directly influence people’s responses
towards goods and services. Some of the factors which influence and affect people’s responses.
Consumer Behavior intends to read about consumers’ thoughts about the products and what they
think alternatively about other brands, services, products and retailers (Gunter & Furnham,
2014). The reasons and thoughts of consumers play an important role to determine choices and
final selection. They are influenced by perceptions, behaviors and motivations.
The behaviors of the consumers may get affected by their experiences and knowledge
which they acquire during the process of research and shopping. The environment is a very
crucial factor which includes media, culture and ideas perceived by peers regarding the goods
and services which are intended to be sold in the market. The consumers should be convinced
with effective marketing and campaigning. If there is lack of understanding and conveyance of
the ideas which are associated with the products, there might be negative impact which may not
be adequate to retain or attract buyers. There are various factors which can directly impact
consumer behavior, such as personal, psychological and social factors. A company should be
able to understand the motivations and factors which influence the buyers to take into
consideration of those to be able to attract and retain more buyers in the market. The company
which will be analyzed in this report to understand the customer behavior towards products and
services is Telstra Corporation Limited.

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Company
The Telstra Corporation Limited which has been chosen for the purpose of the analysis in
the particular report can be mentioned to be the oldest and largest telecommunications as present
in Australia. In consideration with this, the enterprise tends to offer a wide range of service to the
different consumers as present (Telstra.com.au, 2020). These services comprise of aspects such
as the telecommunications networks, internet access, paid television, mobile services and other
related entertainment based services as well as the products. In association with this, it becomes
effective to ensure that the Telstra tends to offer sound services and related offers to the various
customers which is an aspect which makes the product considerably popular. The service
provided by Telstra comprises of services which are much better than that of Vodafone and
Optus (Statista.com, 2019). In consideration of this, it becomes effective to mention that the
services provided by Telstra are not cheap and hence, not may consumers would like to engage
in the purchase of the different goods. In line with this, it is essential to note that the firms such
as the Boost Mobile, ALDI Mobile, Virgin mobile and other such brands provide quite cheap
services. In consideration of this, the market share of Telstra mobiles can be mentioned to be
42% for the year 2019 and the customers for this reason are essentially focused on the office
workers, families, students as well as other individuals who aim to ensure that they would like to
receive good quality services (Telstra.com.au.2020).
Specific product/services
The service which is generally offered by the firm can be mentioned to be the `Low cost
Internet service`. The Telstra is a quality service provider and provides various services and

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serves various segments like the fixed line services, broadband service and other related offers.
In consideration of this, it is essential to offer that, Telstra generally does not generally target the
low cost offers and aims to provide good quality services, however, this was the only aspect
which limited the growth of the company and failed to provide the firm with adequate flexibility,
it can be considered effective that, the company experiences this flexibility with the changing
demand patterns and hence, have entered into the price war battle and related quota based
internet offers (Telstra.com.au. ,2020). The primary purpose has been to gather a larger market
share. The firms against which Telstra has been competing can be mentioned to be the iiNet`s
Jiva for the internet service provider businesses at a considerably low cost.
Customer and Audience
The Telstra Group has been quite aware about their customer base and the potential
audience in a market. They have dedicated their efforts to understand the responses of their
intended customers. This is also helped them to come up with various products and marketing
strategies to influence the consumer behavior. The company has tried to understand the
expectations and needs of the customers as well as the attitudes they already have towards the
existing products which are offered by the company in the market (Gunter & Furnham, 2014).
The customers can be categorized down into several groups based on characteristics,
motivations, traits, attitudes and so on (Telstra.com.au, 2020). The customers who are already
associated with a company are easier to understand than the ones who can potentially be
associated with it in the long run. It is therefore very important to understand and gather
information about various groups of customers and the motivations and expectations which are

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associated with the products and can affect the possible profitability to be made by the Telstra
Group.
It should this be understood, the development of the product should be based on the
differences of expectation among different groups of people. Potential growth and profit could
only be increased with proper understanding of services and products and whether they are being
able to meet the needs of the customers. The Telstra Corporation has made it quite a priority for
such gathering of information in order to grow in the market. The target audience of the
company and the loyal customer base is more centers to college students, the families, the office
goers and related parties who tend to see to it that they are being able to receive adequate offers
with good quality internet (Gunter & Furnham, 2014). The company has pricing which is
moderate and targets the middle class and higher class of the society. They have a great customer
base which is student specific and thus should engage in effective promotional strategies based
on demography and psychography which will help in the understanding of their expectations and
address of the same. With the technique of segmentation, they have been able to specify their
diversified target audience into define definite groups. Therefore common characteristics and
specific information are gathered to help in the process of development of products and services
in the market.

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(Image: Customers of Telstra)
There are several attributes of consumer behavior which might affect the process of
decision making. This would be discussed as they play a major role and affect the behavior of
customers.
Motivation
According to Griskevicius & Kenrick (2013) motivation can be defined as the
relationship which is shared between the needs and the goals which are to be achieved.
Motivation is developed within a person from the necessities or needs in life. It can be the force
or spirit which guides one through actions and of compels too. The unfulfilled need encourages
people to strive and achieve the things which are needed and desired. Motivation, influence
people's efforts towards accomplishing their goals and therefore historically affects the choices
which are built towards goods and services. There can be various types of motivations which
include Psychographic, physiological, conscious, unconscious, negative and positive. The needs
in life can motivate a person to responsive towards either the things which are required for

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sustenance or to adapt to the changing cultural or social dynamics (Paliwoda & Thomas, 2013).
The marketing department of a company is generally concerned about the motivations which are
built in the minds of the consumers.
The needs which are associated with the person can be understood with the help of the
theory of Maslow’s hierarchy of needs (Jerome, 2013). The chronology of needs begins at the
psychological level, which then goes up in the series of Safety, Belonging, esteem and self-
actualization which are acquired as knowledge and awareness increase about one’s motivations.
Motivation can directly impact responses and thoughts which are developed in the minds of the
customers of Telstra Corporation in the market. If people are motivated enough to buy the
services from Telstra Limited, they are more likely to purchase products from Telstra
Corporation Limited (Griskevicius & Kenrick, 2013). Personal motivation plays a very important
role to determine what a person feels about specific product or ranges, offered by the Telstra
Limited.
Personality
Personality can be defined as the traits and characteristics which are associated with a
person. These characteristics can be psychological physical traits which directly create an impact
on the responses towards external environment or products (Jisana, 2014). There are various
types of personality which vary easily, highlight the differences within and individual from
another person. There can be similar traits and characteristics which are specific to a person but
it cannot be said that two people are alike. The standardized or pattern of responses which
develop over a course of time. However, they may deviate from the known because of learning
and awareness.

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It is because of the various kinds of personality which necessities diversification and
great portfolio of products. Companies offering a single type of products may often face
challenges and lesser profitability in the market (Jisana, 2014). Telstra Limited is a company
which excels in this aspect because they have a wide range of products which are offered in the
market and caters to the needs of different personalities who constitute of the population and
target audience of the company.
Perception
Perception is very important aspect which directly impacts the consumer behavior in the
market. It can be defined as the process by which people tend to select and organize information
and element in the minds. This helps in the process of interpret in meanings which are associated
with stimuli, pictures other coherent objects in the world. The very first step in the formation of
perception is gathering of information which is specific to the purchase which is intended. The
second step involves external research which is then connected to existing memory
(Telstra.com.au, 2020). There can be instances when information about products which are not
required at the moment. It is thus very important to have positive perception about products and
services which person to make purchases.
Perception of a person can be built with the help of voluntary or involuntary
engagements. The span of time for which attention is paid to the product and services matter.
The perception of the people can be impacted due to marketing and experiences which are
acquired during consumption and expectations which are drawn from them as have been pointed
out by Mullen & Johnson (2013) in their seminal work. Telstra Corporation Limited group may
tend to get negatively can be affected if there promotions and quality of the products are not

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adequate or standardized. Factors such as appearances, stereotyped ideas, hints and cues,
impressions also contribute you the process of development of perception.
Learning
Learning is an integral part of the study of consumer behavior. It is characterized by
experience and knowledge of the customers. As opined by Mullen & Johnson (2013) these
impact future behavior of the customers as their prior knowledge determines they're future
course of activity. If they learn about the specific product and it does not meet their needs, there
are cancer l chances that the customers might not be willing to purchase the same products again.
The evaluation process helps them identify the benefits and usages which are associated with the
products and develop enhanced ideas of the products. Learning about the product leading to
behavior difference consequences may arise from physical behavior, affective learning and
symbolic learning (Mullen & Johnson, 2013). The promotion or positioning of a product may
create an image in the mind of the buyers which is unique leading to positive behavior. As a
result of which, Telstra Corporation Limited group may get regarded as the market challenger or
market leader. Memory is a very significant involvement in the process of thought association
and learning which determines the magnitude of interest one has, with the goods and services.
Attitude
Attitude can be referred to as the ways in which people respond with respect to a specific
object, which can be consistent in being favorable as well as unfavorable. The development of
attitude is related to personality and learning. However, there can be a deviance from the usual if
there is a new learning regarding the products. Attitude can be formed in the basis of a person's
cognition. It has been argued by Rani (2014) that there might be beliefs and thoughts which are
associated with a brand and its products which gives rise to a kind of attitude or response.

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According to the Tricomponent model, the cognitive, affective and conative components are
important to understand the attitudes and responses of the consumers and the reason behind the
same (Pangriya & Kumar, 2018). The Telstra Limited can be immensely be affected due to the
attitudes of the customers if they tend to be negatively inclined leading to poor profits made out
of the business.
Decision making
Decision making can be defined as the process of finalizing a choice and yielding to an
action. The decision might be based on other factors whether or not to make a purchase.
According to Rani (2014), if there lays a difference between what is expected of the product and
the need it meets, there can be chances of the product not being purchased due to the availability
of other products. The kind of problem which is solved by the product often determines it worth
leading to a decision. Similarly, the decision making process of the Telstra Corporation Limited
products is to be determined on the basis of other relevant factors such as experience, perception,
attitude and learning.
Recommendation
Products
The Telstra Limited brings forth large range of products and services to the customers in
the market. The products and services of the Telstra as an enterprise tends to range from the
mobile networks, internet data provider, Wi-Fi services, talk time and related services. In brief, it
can be mentioned that the firm tends to provide good quality services and unique price ranges
however, it does not provide cheap rage services because it effectively focused on providing the
various customers with a sound service. They also have standardized quality. Even though the

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company has received several recognitions and rewards for its product offerings, they should aim
to develop products which are innovative and outperforms the rival forces which operate within
the industry (Lovelock & Patterson, 2015). This can easily be carried out with the help of an
analysis of the expectations and behavior of the target customers. They can engage in offering
products to the dominant customer base which comprises of women customers, students and
families. The consumer behavior of the groups will differ from one to another because of which
close analysis of the responses and the factors should be assessed before development of the
strategies and products (Zhang, 2015). This will ensure that the products meet the expectations of
the consumers and excite them to purchase more products in the market. Products should be
developed while taking into consideration the demography, psychographic, and other social
trends which are influence the responses of the customers.
Price
Pricing of the Telstra Limited services and the products are moderate and cater to the
income group of medium to high The Telstra Limited has been able to establish itself as one of
the giants in the market. The company strives to maintain quality and standards in the market by
keeping the prices intact (Lovelock & Patterson, 2015). Price of the products is considered to be
one of the most vital factors which determine the behavior of the customers in the market and
whether or not it is being able to attract the buyers who have been targeted by the company. The
Telstra Limited is among the most customer friendly brands which makes it a point to keep the
aspect to ensure that it is being able to engage in high sales and has the maximum connectivity
and is present with the maximum number of customers. The focus and mission of the company
is to offer great and quality products and services to the consumers at affordable prices
(Lovelock & Patterson, 2015). However, the Telstra Limited should make it a point to offer

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products as well as the services by taking into consideration the expectations and responses of
the targeted buyers as there are instances when not all products are able to attract buyers as they
should be because of ineffective planning of product development and strategies (De Mooij,
2019). As the company has pricing ranged in between medium to high, customers are attracted
mostly because of it, as it offers products which are needed without burning a hole in the pockets
(Zhang, 2015). The demographic preferences are to be taken into consideration which suggests at
student friendly discounts will be very effective and beneficial for the company as it will attract
more buyers and students as they have a huge customer base who happens to be students.
Promotion
The Telstra Limited engages in promotional activity and strategy which focuses on
moderate prices at which the product and services are made available by the Telstra. The
enterprise makes the use of various campaign ideas which highlight its greater connectivity and
attract the consumers. The idea which is highlighted through the products and services are
available at very moderate prices but provide strong connectivity (Subramanian, 2018). The
responses were recorded through interactive campaigns but better expectations of the customers
are to be met by Telstra Limited as it operates in a company which is dominated by other giant
companies in the market such as Vodafone and Optus (De Mooij, 2019). The promotions are
generic and lack specification, however, the company will be immensely benefitted if the
company engages in promotional activities which target specific audience and highlight their
needs and the company’s offerings (Lovelock & Patterson, 2015). The psychographic differences
of choices and needs are to be taken into consideration apart from the fact of low pricing.
Nonetheless, the pricing plays a crucial role, but better promotional activity should be developed
in order to address expectations and responses of the customers based on their behaviors as the

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motivations, learnings and attitudes towards products are different. Now that the firm plans to
see to it that the products and services are being able to compete in the low priced market, it
needs to modify its planning accordingly.

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Conclusion
It can thus be concluded by saying that evaluation and understanding of consumer
behavior is very important. Consumer Behavior impacts the sales and profitability of a business
as customers react differently based in their personal traits and experiences which are associated
with the products. There are different factors which impact and influence responses of
consumers towards products which include Motivation, Perception, Learning, Attitude, Decision
making and Personality. The Telstra Limited has great market share which makes it important to
take into account the responses and the factors which influence the reactions of the customer
base which is dominated by students, families and the professionals. The Telstra Limited can
take into account their perspectives and thoughts to develop strategies and affect their products,
pricing and promotion.

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