Telstra Marketing: A Case Study Using Consumer Behavior Theories

This report analyzes Telstra's marketing strategies through the lens of consumer behavior theories, consolidating previous assessments and feedback. It explores social factors such as social currency, reasoned action theory, motivation need theory, and Blackwell's consumer behavior theory, highlighting their impact on consumer decision-making and brand switching. Environmental factors, including economic, technological, and political influences, are also examined, with a focus on how Telstra can adapt to meet consumer requirements. Individual factors, or psychological aspects, are discussed in terms of their influence on buying decisions, emphasizing the importance of service quality. The report recommends improvements to Telstra's marketing approach, aiming to enhance customer attitudes, reduce switching behaviors, and ensure sustainable growth in the competitive telecommunications market.

Running Head: CONSUMER BEAVIOUR THEORIES
Consumer Behavior Theories
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Overview of the Company.......................................................................................................2
What is consumer decision-making.........................................................................................3
The target market of Telstra....................................................................................................4
The social factors affecting the decision making of the customers.........................................4
The environmental factors affecting the decision making of the product...............................5
Influence of the individual factors on customers’ buying decisions.......................................7
Influence of the individual difference factors on the consumer behavior...............................9
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................12
Reference.......................................................................................................................................13

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Introduction
The purpose of this report is to revise and consolidate the assessments 1-3 into a single
written CB case report. It will be based on the feedback received in the previous assessments. As
I have been asked by the Chief Marketing Officer to evaluate the customer attitudes and
switching behaviors having used the consumer behavior theories and research. Hence the report
will provide an innovative sustainable marketing solution for the Telstra company. It will be
designed to benefit both the customers and the providers. It will begin with the social factors and
their influence on the consumer decision –making and brand switching. It will also talk about the
environmental factors, the individual differences and recommend for improvement and conclude
finally with an overview.
Discussion
Overview of the Company
Telstra is a famous technology and telecommunication company which offers a full range
of services related to communication and competes in the entire telecommunication markets. In
the entire country of Australia, the company provides almost 17.7 million retail mobile services
and almost 4.9 million retail fixed voice services along with around 3.6 million retail fixed
broadband services. The company is dedicated to the service of people and believes that the more
connected people are with each other, the more opportunities they receive. Hence, their aim is to
create an amazingly connected future, every-day. They establish technology and the content
solutions which are easy to use and simple along with including the fastest and largest mobile
network around Australia. The company strives to serve and understand their potential customers
more than anyone else having offered a digital content along with a digital connection. The brand

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is present in almost 20 countries. Since it holds the position of being the leading
telecommunication and information service company, it is also proud to help the customers in
order to improve the way they are connected with the rest of the world. The company deals in the
telecommunication industry and was founded in the year 1975. The headquarters of the company
is located in Melbourne, Australia. Andy Pen is the CEO of the company and the company’s
major products are Fixed line, internet, data, mobile telephony, network services, pay TV and
others. As per the reports of 2017, the total revenues of the company are $ 42.1 billion. The
company employs 32,000 people and it has 150 subsidiaries (Telstra - Our company 2018).
However, there is news that the company has been struggling with the market value which
declined substantially.
What is consumer decision-making
The consumer behavior must be understood by every industry in order to secure the long
–term success and the survival of the company. The consumer decision-making is the most
important factor for the marketing management and the marketing concept (Alshurideh, 2016).
The marketers are suggested to hold the ability to determine the requirements and demands of
the target market and tailor the product or service according to that. It can help the company to
gain the competitive advantage over the market rivals (Bradford et al., 2017). A cognitive model
in this respect suggests that the individuals should focus on the process by which they can extract
as much information as possible. In this cognitive view, the consumers look around for the
information of selected brands which can fulfill all of the requirements. It can be said that the
consumer decision making process is determined by the quality of the service in the service
industries like the telecommunication industries (Chang et al., 2015). In the Australian context,
the important factors that decide the buying decisions of the customers are the data speed, service

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quality and the price of the product. The brand switching on the other hand is driven by the peer
group pressures. The students mostly form the group which is moved towards brand switching
(Chinedu, Haron & Osman, 2017). Hence, the Telstra company is expected to concentrate on the
quality of the service it offers to stay sustainable in the market.
The target market of Telstra
The target market of Telstra covers all those people who are agile to use the cellular
technologies. It covers the young professionals, the students, housewives, the business houses,
working women and people who are from the working world (Chuah et al., 2016). Hence, the
company mainly focuses on the segmentation strategies to stick to its target market. It mainly
targets the young professionals and the college students and provides corporate packages for the
staffs with high speed mobile network (Collier et al., 2015). It also offers different data plans
according to the needs in the semi –urban areas making use of the geographical segmentation
(Cruz et al., 2016).
The social factors affecting the decision making of the customers
The consumer decision making is influenced by few of the social factors. Regarding the
social factors affecting the buyers’ decision making in the telecom services of Telstra company,
it has been found that “social currency offering” is one important factor which persuades the
customers to share their ideas (Curcurutoet al., 2018). The concept of offering currency can be
broken down in a manner and be suggested that it is all about offering the details about the
service a company offers. Taken for example, the emotional connection can be built by the small
detailing after sending an email. Through these detailing it is likely that the customers tend to
share everything which they care about (Fang et al., 2016). They will feel the motivation to share
positive messages about Telstra. According to the “reasoned theory” related to the consumer

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behavior, the consumer behavior is influence by the will to attain a specific outcome. Hence it is
important for the business organizations to analyze the demands of the target audience and
Telstra also must do that to offer them the best telecom services according to their desires.
As far as the “motivation need theory” is concerned, it is an important consumer behavior
theory which suggests that the consumers depend on the five-part priority system in order to
satiate their needs (Garín-Muñoz et al., 2016). These essential needs are the survival, safety,
love, esteem and self-actualization. The Telstra company should make their products and
services a survival need which is likely to motivate the consumers to stay being the customers of
the company. The products and services of the company should match the hierarchy of needs in
order to influence their purchasers positively (Guèvremont & Grohmann, 2016). In terms of the
“Blackwell Consumer behavior theory”, findings are such that some of the social factors deeply
impact the brand switching and purchasing behavior of the consumers. It suggests that there is a
five step process which determines the way the consumers will make the buying decisions. In
order to address this social factor, the Telstra company can inform the customers about the value
of their products and services to help them make proper decisions (Gunasekara, 2015).
The “Hawkins theory of impulse buying” suggests that some of the social fa tors such as
the packaging style along with the physical appearance of the product can drive the impulse
buying in the customers (Gupta, 2015). Hence, the company should focus on the appearance of
their products in attract maximum customers. The marketing plan of the Telstra company should
be based on market research so that the customers are persuaded towards their brand. It has also
been found that the in the telecom industry, the change in the social structure with the role play
models of the consumers can also impact on the buying decisions (Izogo, 2017). The social
factors connected with the employability and target audience supports the purchasing

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affordability of the customers. Also, the customer satisfaction over a particular product can
accentuate the buying decisions.
The environmental factors affecting the decision making of the product
There are many environmental factors which can influence the buying decisions such as
the economic, political, technological, political and social factors (Kumar & Ghodeswar, 2015).
The economic demands include the economic condition, the levels of demands, the trade cycle,
changes in technology affects the demands of the customers. The technological factor such as the
development of information, the development of e-commerce and internet can bring changes in
the organizational buying, production process and inventory management (Moreira, Silva &
Moutinho, 2016). As far as the political and legal factors are concerned, the organizations can be
affected by the political ideology, government policies, political system and situation.
It has been found from the survey results on the Telstra company, few of the
technological factors including the service quality is highly supported by the people of Australia
regarding the adoption of the cellular services (Singh & Singh, 2017). In order to address the
environmental factors affecting the buyer’s decision making, the Telstra company should
incorporate few changes to fulfill the consumer’s requirements. The operations of Telstra will be
facilitated if the they understand the potentiality and demands of the customers. They need to
identify the consumer’s intention.
Having evaluated the environmental factors, it can be said that consumers’ decision
making capabilities are influenced by some of the contextual and situational factors.
Emphasizing on the finding from the survey, almost 43 % of the consumers in Telstra informed
that their purchasing decisions are dependent on the impulse connected with the required ideas of
communication. The contextual factors also influence the buying decisions. One of the greatest

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environmental factors that influences the buying decision is the “: ambient condition “ which is
also one of the vital parts. In the telecom industry of Australia, data suggests that the minds of
the consumers are highly triggered by the ambient situations. The five major senses that
facilitates the decision making can also be apprehended. Few of the syllogistic factors also
influence the switching decision of the customers. The Telstra company can implement few
promotional activities in order to attract the highest attention of the customers.
On the other hand, as few of the environmental factors, the situational issues are also seen
to be playing a huge role in influencing the decision making abilities of the consumers. The
moods of the customers and consumer motivation are highly related to this. The Telstra
customers are extremely impacted by their previous experience with the company. As found
from the review of customers from the Telstra company’s websites, the company is expected to
maintain the quality of its services based on the recent and upcoming trends in the Australian
context. Studies have found that almost 30% of the consumers have switched from one service
provider to another only because of the service quality related issues.
Influence of the individual factors on customers’ buying decisions
It has been found from the existing literature that, there are few of the individual factors
which might influence the buying decisions of the buyers. The individual factors can also be
referred to as the psychological factors. The psychological aspects of each person is unique and
different than the other’s (Quoquab, Abdullah & Mohammad, 2016). It reflects the preferences
of the individuals based on their educational qualification, affordability, background, culture and
many other aspects. The difference in the ethnicity, race, tradition also shapes the individual
preferences (Srivastava & Kaul, 2016). The demographic areas are also equally contributory. As
far as the case of Telstra is concerned, the major individual factor that bears the biggest

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relevance to the customers of the company is the service quality provided by the company to the
clients. Through the survey reports it is found that Telstra puts huge effort on providing the best
possible service as the respondents have agreed on the fact. The results suggest that almost 70 %
of the respondents are not willing to change their telecom service and want to stick to Telstra. As
far as the importance of cellular service in the daily lives is concerned, almost 90 % of the
respondents have agreed positively.
In the telecom industry, it has been found that individual difference factor is also based
on the type of service provided by the company to the people. It inevitably plays a major role in
satiating the requirements of the clients. The customers are likely to judge the product/ service
based on its variability, perishability, intangibility of service and inseparability (Shan,2018). It is
one of the methods used to know whether the customers are satisfied by the attributes of the
service/ products. The results of the survey suggest that in the telecom industry, consumers spend
more on the voice services and data which are the most essential (Moreira, Silva & Moutinho,
2016). From the surveys, it has also been found that the selection of the cellular service providers
is also a major factor in determining the consumer behavior (Quoquab, Abdullah & Mohammad,
2016). The decision –making process of Telstra is also driven by the identification of the brand
value, the pricing of the product and the influence of the peer groups.
The media platforms are responsible for playing a part of the aspects which are the
contributory to the differences in the individual factors. For a particular company, its online
presence matters a lot in shaping the buyer’s decisions (Moreira, Silva & Moutinho, 2016). It is
also determined by the way the company advertises its products or services. The outcomes of the
survey suggest that there are several advertisement policies which are adopted by the Telstra
company. The company has made best use of the television platform for reaching out to people

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in the best manner (Mahajan, Misra & Mahajan,2015). The print media, commercial, radio
commercials also pose impact on the decisions of the buyers. The word of mouth advertisement
is another factor that shapes the psychology of the buyer and drives him/her towards purchasing
from a particular company (Lin, Featherman & Sarker, 2017).
Influence of the individual difference factors on the consumer behavior
The individual differences factors have also been find to be influential on the consumer
behaviors (Letheren, Martin & Jin, 2017). Scholars have researched and found that the purchase
decisions of the clients are highly impacted by the availability of products, the residents of the
area, the usage of the cellular activities, and the changing service provider of the changing
service providers (Letheren et al., 2016). As the survey results suggest, in the Australian context,
among most of the telecom service providers, Telstra is highly popular. The company has
occupied maximum of the market share. It suggests that majority of the cellular service users
belong to the customer base of Telstra. The survey also suggests that the customers of Telstra are
extremely loyal to them (Leppäniemi et al., 2017). The loyal customers of the company are not
likely to shift to another brand and change their service providers founded on the peer reviews,
lower price range or any other reasons. However, the results are descriptive of the fact that the
potential customers can possibly change the service providers in case any other company offers
better deal on the data services and speed too in the Australian context (Lancaster &
Massingham, 2017).
The Telstra company has been found to be the best service provider in the Australian
telecom industry. The target market of the company consists of the young and working members
of the society, the students, the homemakers and the different realms of the society (Laksmidewi,
Susianto & Afiff, 2017). Since the target market consists of various types of people, there is huge

10CONSUMER BEHAVIOUR THEORIES
chances of diversification. The company should know how to satiate the needs of the customers
(Kelley & Alden, 2016). The Telstra company also exercises many of the strategies and
advancements pertaining to the voice and data services (Keller, 2016). The company’s customer
base is highly powerful and loyal too in spite of the existence of abundant choices in the industry
of cellular service in the Australian context.
The customers of the Telstra company opine that the quality standards and the service
quality are the most essential factors which organizations need to consider as much as possible.
Almost 40 % of the respondents suggested that there are many companies in the cellular service
industry which have offered them (Kaur & Sharma, 2015). Another factor that influences the
choice of cellular service providers is the brand name and brand reputation. The price range
offered by the Telstra company is another factor that influences the buyers positively. The word
of mouth and the peer group in the case of Telstra provides only 10 % of the survey population
(Fallatah & Syed, 2018). The results of the survey reveal another factor regarding the existence
of the competitors in the similar industry in the Australian context. It is found that almost 90 %
of the respondents in the survey is of the opinion that the Australian cellular service industry is
not at any loss of providers and competitors (Díaz, 2017). Telstra’s television advertises also
attracts the customers and retains their loyalty.
Recommendation
After significant research on the Telstra company and outlining the theories regarding the
consumer behaviors and determinants of the effecting factors, it is recommended that the
company should focus maintaining its quality of service which can help it to succeed in the long
run. Telstra is a leading company in the Australian cellular service industry. The customers are

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highly conscious about the quality of service and consider it to be the most important factor. The
Telstra company can focus on providing best deals to grab the clients of the competitors. It will
also support the company to strengthen the customer base and impact the decision making
process. The company can enjoy the results of this strategy and receive a sustainable market.
The company can address the social and environment factors along with improving on the
marketing strategies by following the below mentioned recommendations:
 The Telstra operators are suggested to focus on making modifications in the
technological aspects in the service they offer. It will increase the attraction of the
customers and grab the attention of maximum Australian customer base. The company
should also concentrate on the improvement of battery technology highly demanded by
the target market. The Telstra company can receive better opportunities by this particular
strategy. The company can expand by understanding the market demand and increasing
the affordability of the customers. The company is also suggested to scrutinize the brand
switching behavior of the potential customers and consistently try to innovate in the
Australian industry.
 The Oracle Metrics can be used by the company along with the mobile application. The
company is recommended to use these strategies to serve the customers in a different
way. The recommendations can keep the customers loyal to the brand by receiving a
simpler shopping experience.
 It is also recommended that the social media platforms of the company should be kept
more active. It must be regularly monitored, and the queries of the customers should be
responded positively. The target customers should be interacted by the company at
regular intervals in order to know their requirements and suggestions.

12CONSUMER BEHAVIOUR THEORIES
 The customers usually prefer the use the cellphones that displays advanced content on
regular basis. Hence, Telstra is recommended to send messages to the potential customers
regarding discounts. Other than social media announcements on discounts, the company
should connect with the customers through personalized e-mails and messages. This
strategy is likely to keep the customers attractive towards the brand.
 In order to improve the marketing strategies, the company should implement a proper
judgement on the demands of the customers. It can help the Telstra company to get
information of the areas where they need to work more to retain their competitive
advantage. It would further motivate the customers. It will also leverage the company to
satiate the customer needs.
 The company can also maintain proper observation on the buying behavior of the
customers in the organization. It will help the company to attract new customers and grab
bigger markets. The existing customers can also be retained through this strategy.
 The company must increase the its representation and exposure for brand awareness. The
number of customers will be increased and the popularity of the products too.
 The introduction of the small sized high benefit services can play beneficial fir the
company. It will also strengthen the customer base.
Conclusion
Therefore, from the above report it can be concluded that, Telstra company already
possesses a good market share in the telecom industry of Australia. It only needs to focus on the
determinant of the consumer buying behavior and work on the findings. The report has provided
an innovative sustainable marketing solution for the Telstra company. It is designed to benefit
both the customers and the providers. It began with the social factors and their influence on the

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consumer decision –making and brand switching. It also talked about the environmental factors,
the individual differences and recommended for improvement on the marketing strategy.

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