A Detailed Analysis of Consumer Behavior at Telstra: Key Influences

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This report provides a comprehensive analysis of consumer behavior within Telstra, a prominent telecommunications company in Australia. It investigates the impact of both social and environmental factors on consumer decision-making processes. The report delves into various social influences, including social currency, emotional connections, and theories like the reasoned action theory, motivation need theory, Blackwell consumer behavior theory, and Hawkins theory of impulse buying. It also examines the impact of environmental factors such as technology, service quality, ambient conditions, and situational aspects like mood and motivation on consumer purchasing decisions and brand switching behavior. The analysis highlights the importance of understanding consumer needs and preferences to develop effective marketing strategies and provides recommendations for Telstra to enhance its services, improve technological modifications, and maintain a competitive edge in the Australian telecom industry. The report emphasizes the significance of adapting to evolving consumer trends and preferences to ensure long-term success.
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Running head: CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
Consumer Behaviour Analysis of Telstra
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1CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
Table of Contents
Introduction..........................................................................................................................2
Social Factors Affecting Decision Making of Consumers..................................................2
Environmental Factors Impact on Decision Making of Consumers....................................5
Recommendations................................................................................................................7
Conclusion.........................................................................................................................10
References..........................................................................................................................11
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2CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
Introduction
Consumer behavior analysis can be understood as a process of realizing the purchasing
pattern of the target consumers of a company. Considering the same, the companies require to
realize purchasing behavior for generating a marketing strategy in order to target the consumers
in a suitable manner (Alshurideh 2016). It is observed that the Australian telecommunication and
mobile phone industry is attaining increased growth and the renowned players requires
understanding buying behavior determinants for increasing market share along with attaining
high demand for companies products. The objective of the paper is to analyze the social and
environmental factors those impact consumer behavior of Telstra Company.
Social Factors Affecting Decision Making of Consumers
In analyzing the social factors those impact consumer decision making in acquiring
telecom services from Telstra Company, it has been gathered that “offering social currency” is
one of the major factors that persuades consumers in sharing their ideas regarding telecom
services of the company (Chang et al., 2015). In the telecommunication industry, offering
currency can be done any means of offering details regarding telecom services offered by
Telstra. For instance, after sending an e-mail, the e-mail might contain a small text indicating
that it was sent from Telstra cell phone. Another social factor is “developing emotional
connection” through which consumers tend to share things that they care about. In order to
positively impact consumer behavior, it is vital for Telstra to offer a positive emotional reaction
among consumers (Chinedu, Haron & Osma, 2017). In such manner, consumers of Telstra can
develop a positive connection and can get more willing to share any message. “The reasoned
theory” of consumer behavior explains the social factors that impact buying behavior of
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3CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
consumers towards acquiring telecom services of Telstra. This theory indicates that consumer
behavior is impacted by intention to generate or attain a particular outcome. Consumers are also
observing to be rational actors those only act as per their best interests. This indicates that if the
purchase from Telstra satisfies their need then they are likely to make a purchase (Cruz et al.,
2016). For this reason, it is important for the marketers of the company to analyze the preference
of target consumers regarding phones to offer them telecom services as per their desires.
“Motivation need theory” is a consumer behavior theory that indicates consumers are
likely to act to fulfill their needs relied on the five-part priority system. Such needs involve
safety, survival, esteem, love and self-actualization (Díaz, 2017). Considering the same, the
marketers of Telstra requires developing a telecom service that matches the hierarchy of needs.
For this reason, it is of increased importance for the telecom company to fit their services in the
hierarchy of needs in order to positively influence their purchases. Even though Telstra Telecom
Company is observed to be in the self-actualization aspect, making it a survival need can
motivate the consumers to make purchases from the company. “Blackwell Consumer behavior
theory” has also identified certain social factors thus influence purchasing and brand switching
decision of the consumers (Garín-Muñoz, Pérez-Amaral, Gijón & López, 2016). This theory
explains that there is a five-step process based on which consumers decide to make a purchase.
Such prices flows from data collection input to information processing. The other stages
impacting consumers decision making includes decision making and purchase. Based on this
theory, the marketers of Telstra must reveal the value of its telecom services at input stages.
Through data collection regarding consumer behavior regarding its telecom services, Telstra
must also ensure that it offers all the important information based on which consumers can make
purchase decision (Gunasekara, 2015).
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4CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
Hawkins theory of impulse buying” is a consumer behavior theory that explains certain
social factors that impacts purchase decision of the consumers. This theory explains that certain
social factors that include packaging scent along with physical appearance that supports the idea
of impulse buying (Gupta & Sahu, 2015). For this reason, the marketers of Telstra are observed
to capitalize on such aspects in order to attract their consumers. For learning such consumer
behavior theories, it has been gathered that social factors has an on impacting consumers in order
to persuade them for purchasing such products or services. Based on such factors, certain
changes must be undertaken by Telstra relied on the analysis of consumers’ needs (Gupta, 2015).
The abilities of decision making of the consumers are deemed to be supported by
recommendations made by their associates or the relatives. The needs identification of people
relating to consumers’ needs facilitates in understanding the potentiality of consumers of Telstra.
Identification of consumers’ intention has an important role on acquiring the company’s
products. Telstra is observed to be dealing with issues associated with switching loyalty of
consumes.
It is also gathered that more that 25% of the respondents agreed to the fact that the
consumers of Telstra are switching towards other telecom companies as the mobile phone was
used more than estimated (Izogo, 2017). Recognizing the changes in the purchase intention of
the consumers can facilitate the service provider in Australia too maintain efficiency of the
telecom service offering. Moreover, it is also evident that changes within the social structure
along with the role play models of the consumers increasingly impact their purchase intention.
The special structure along with the models of role play of the consumers is focused on their
employability in distinct economies (Kaur & Sharma, 2015). This facilitates in recognizing the
potential of the consumers in affording products and services range offered by Telstra. Social
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5CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
factors associated with employability of the target audiences facilitates in supporting the
purchasing potential of the consumers. On the contrary, certain changes that can be used by
Telstra in Australia are relied on the evaluation of consumer satisfaction attained by people by
utilization of services and products (Leppäniemi, Jayawardhena, Karjaluoto & Harness, 2017).
Environmental Factors Impact on Decision Making of Consumers
From analyzing the respondents viewpoints gathered for Telstra Telecom services
Company, it has been gathered that cellular technology along with services are deemed to be
vital aspect by consumers and this market is intended to grow further. Certain technological
factors such as service quality are deemed to be most vital feature that is preferred by Australian
consumers while attaining cellular services (Mahajan, Misra & Mahajan, 2015). For learning
such consumer behavior theories, it has been gathered that social factors has an on impacting
consumers in order to persuade them for purchasing such products or services. Based on such
factors, certain changes must be undertaken by Telstra relied on the analysis of consumers’
needs. The abilities of decision making of the consumers are deemed to be supported by
recommendations made by their associates or the relatives (Moreira, Silva & Moutinho, 2016).
The needs identification of people relating to consumers’ needs facilitates in understanding the
potentiality of consumers of Telstra. Identification of consumer’s intention on acquiring the
company’s products is also deemed to impact Telstra Company. Telstra is observed to be dealing
with issues associated with switching loyalty of consumes.
Through evaluating the environmental factors it has been gathered that the decision
making capabilities of consumers are impacted through situational and contextual factors
(Quoquab, Abdullah & Mohammad, 2016). Focusing on such results, 43% of the Telstra
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6CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
consumers stated that their purchase decision is relied on impulse associated with necessary
ideas communication. In addition, Sharma, Medudula & Patro, (2015) revealed that contextual
factors induction facilitates in increasing consumers impulse in order to make commodity
purchase to 93%. Among the environmental factors impacting consumer decision making, “The
ambient condition” is considered as one of the most vital parts associated with contextual factors
that is perceived to impact consumer perceptions towards purchasing services in telecom
industry. In analyzing case of Telstra, it has been gathered that the ambient condition triggers
consumers mind along with instigating five major senses which facilitates in supporting decision
making abilities of consumers (Shaw, Chovancová & Bejtkovský, 2017). Among the major
environmental factors, certain syllogistic structures also impact purchase intention along with
brand switching behavior of Telstra consumers. Implementation of distinct symbols in several
promotional activities facilitates companies in attaining high attention from consumers along
with persuading them to make a purchase decision regarding Telstra Company’s telecom
services. Recognition of distinct contextual aspects related with capabilities of consumers’
decision making facilitates Telstra in maintaining its operational efficiency in Australian telecom
industry (Singh & Singh, 2017).
In contrast, among the major environmental factors, situational aspects are also observed
to play a vital role in impacting decision making abilities of consumers. On the contrary,
situational environmental factors such as mood and consumer motivation have a major function
in influencing purchase intention of Telstra Company’s consumers. In addition, it has also been
revealed that consumers’ hedogeni motivation persuades them to purchase Telstra company’s
telecom services or products through analyzing their experience attained from previous purchase
while using their services (Srivastava & Kaul, 2016). The major aspects are likely to change that
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7CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
is undertaken by the company relied on the evaluation of consumer preferences and needs. From
consumer review on Telstra Company’s telecom services, it is gathered that recognition of a
situation long with the way it impacts decision making process of consumers have impacted
Telstra’s consumer focused marketing strategies in order to improve its operations in future
(Telstra - Our company., 2018). Certain influencing factors along with their changing
preferences based on upcoming trends in Australian telecom industry majorly associated with
maintaining quality of products and services are likely to persuade purchasing decision making
process of target consumers. In addition, based on the research carried out by “Australian
Communication Media Authority” it is evident that more than 30% of Australian consumers
switched from one telecom service provider to another due to the issue of poor service quality
offered.
Recommendations
Through evaluating the impact of social and environmental factors on the purchase and
brand switching intention of consumers of Telstra, certain effective recommendations are offered
to the company are indicated below:
The operators of Telstra are recommended to center on making technological
modifications in their offerings which can attain increased attraction of a large number of
Australian consumer bases. In addition, the company must also focus on improving their
battery technology that is deemed to be one of the vital features demanded by target
consumers. By means of focusing on certain technological modification there is a better
scope for the Telstra retailers to expand by means of evaluating consumer affordability
along with purchasing behavior. Through evaluating the environmental factors impacting
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8CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
purchase decision of consumers, marketers of Telstra is recommended to analyze the rand
switching behavior of its consumers and make constant technological innovation that is
trending in Australian telecom industry. For obtaining an increased competitive
advantage, Telstra is also recommended to consider making an increased investment in
improving its telecom services through implementation of UX design used in
manufacturing high quality cell phones. Through implementation of such advanced
technology Telstra can make its information simpler for its consumers through which
consumers of the company can increase sense of brand loyalty among them. Such
recommendation is provided to the Telstra based on social factors prevailing among the
Australian consumers. This is observed to have a huge impact on the brad switching and
purchase intention decision of consumers. Based on such impacts, recommendation of
improving quality of telecom service is offered to Tilts attaining competitive advantages.
Through analyzing the environmental factors that impact the consumer purchasing
decision along with brand switching behavior of Telstra, the company is recommended to
attain growth in its consumer base. In attaining such objective, the company is
recommended to implement Oracle Metrics which can facilitate the telecom company in
developing effective application along with mobile application. Recommendations are
offered to Telstra to implement these applications serve different purposes that will
include serving distinct target consumer bases. Such recommendation is offered focusing
on the fact that Australian consumers are likely to remain loyal to the mobile
applications. This recommendation can provide better competitive advantages in attaining
attraction of target consumer base as they tend to be loyal to the mobile applications as
they search for simpler and faster manner for interacting with brands. Implementing such
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9CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
metrics, the marketers of Telstra can simplify the shopping experience along with
offering suitable “on-the-go” services to them with all the basic information.
The service providers of Telstra are also recommended to integrate with the social media
platforms for the reason that it can serve as an important place for monitoring and
responding to the feedback offered by Australian target audiences. Moreover, the
company is also recommended to integrate their mobile strategy with social media
platforms in a manner that will consider sharing reviews along with including sharing
buttons through sharing engaging content for target consumers.
Telstra telecom service providers of Australia are also recommended to attain advantages
from developing multi-device as well as screen opportunity. The provider must also focus
on developing effective campaign for distinct devices and offering important content to
all its target consumer segments that can increase its switching costs and return on
investments. In addition, Telstra is also recommended to implement location based
advertisements by means of geo-location service which can communicate targeted
messages to particular Australian telecom consumers.
After evaluating the social along with environmental factors affecting purchase intention
of consumers along with their behavior towards brand switching, it has been observed
that consumers prefer using cellphones of a brand which reveals increasingly engaging
content on a regular basis. In this condition, Telstra is also offered with a
recommendation regarding sending regular notifications on coupon discounts along with
their savings on acquiring cell phones of their preferred telecom service brand. Moreover,
focusing on the impacting social and environmental factors, Telstra is recommended to
consider employing personalized e-mail marketing for the reason that it can prove to be
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10CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
an efficient way to keep target consumers informed regarding any new discount or
coupons by means of offering newsletters. Moreover, one more recommendation is to
ensure that consumers attain mobile phone service considering which Telstra can offer
exceptional value to its consumers. This strategy can be attained by the company through
engaging consumers with mobile phone activities with integrating their several data
sources that is moving close to centralized data systems as much as possible.
Conclusion
The objective of the paper was to analyze the social and environmental factors those
impact consumer behavior of Telstra Company. It was gathered from the paper that in the
telecommunication industry, offering currency can be done any means of offering details
regarding telecom services offered by Telstra. Social factor is “developing emotional
connection” through which consumers tend to share things that they care about. In order to
positively impact consumer behavior, it is vital for Telstra to offer a positive emotional reaction
among consumers. Based on such factors, certain changes must be undertaken by Telstra relied
on the analysis of consumer’s needs. It is recommended that the operators of Telstra are
recommended to center on making technological modifications in their offerings which can
attain increased attraction of a large number of Australian consumer bases. In addition, the
company must also focus on improving their battery technology that is deemed to be one of the
vital features demanded by target consumers.
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11CONSUMER BEHAVIOUR ANALYSIS OF TELSTRA
References
Alshurideh, M. T. (2016). Exploring the Main Factors Affecting Consumer Choice of Mobile
Phone Service Provider Contracts. International Journal of Communications, Network
and System Sciences, 9(12), 563.
Chang, S. C., Sun, C. C., Pan, L. Y., & Wang, M. Y. (2015). An Extended TAM to Explore
Behavioural Intention of Consumers to Use M-Commerce. Journal of Information &
Knowledge Management, 14(02), 1550014.
Chinedu, A. H., Haron, S. A., & Osman, S. (2017). Predictors of Complain Behaviour among
Mobile Telecommunication Network Consumers. International Journal of Marketing
Studies, 9(1), 119.
Cruz, C. M. L., Medeiros, J. F. D., Hermes, L. C. R., Marcon, A., & Marcon, É. (2016).
Neuromarketing and the advances in the consumer behaviour studies: a systematic review
of the literature. International Journal of Business and Globalisation, 17(3), 330-351.
Díaz, G. R. (2017). The influence of satisfaction on customer retention in mobile phone
market. Journal of Retailing and Consumer Services, 36, 75-85.
Garín-Muñoz, T., Pérez-Amaral, T., Gijón, C. & López, R., (2016). Consumer complaint
behaviour in telecommunications: The case of mobile phone users in
Spain. Telecommunications Policy, 40(8), 804-820.
Gunasekara, S. (2015). Analysis and mathematical modelling of consumer behavior in mobile-
telecommunications industry. International Journal of Scientific & Technology
Research, 4(6), 333-343.
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