Social factors and impact on consumer decision making
Consumer preferences play a major role in maintaining the efficacy of the operations that are undertaken by the organizations. The different elements of consumer behavior are based on the identification of the needs of the same and the change in the preferences that drives the consumers to make a buy of the products. The report will be examining the different social and environmental impacts on the decision making process of the consumers. The report will also evaluate the manner in which the Vodafone might bring forth changes in the propositions for adhering to the changing needs of the customers.
The social factors play an important role in influencing the consumers to make a buy of the products or the services. The key changes that might be undertaken by the Vodafone are based on the evaluation of the needs of the consumers. The decision making capabilities of the consumers are mainly supported through the recommendations and the references that are made by the relatives and the associates. On the other hand, the role of the individual consumers in the society and the social status of the same helps in understanding the potentiality of the consumers.
The Motivation needs theory by Abraham Maslow reflected on the identification of the needs of the customers on the five part priority system. The identification of the needs of the people relating to survival, safety, love, esteem, and self-actualization helps the enterprises in maintaining the efficacy of the operations (Angell & Kraemer, 2014). On the other hand, the reasoned theory evaluates customer’s behavior relating to their intention of creating a particular outcome. The organizational understanding of the rational decision making capabilities of the consumers helps the same in planning the operations (Emtiyaz & Keyvanpour, 2012). The identification of the buyer’s intention and the manner in which the product offerings of the organization appeals to the interest of the customers helps the businesses in maintaining the efficacy of the operations that are undertaken by the same.
The Vodafone is facing different issues relating to the switching loyalty of the customers. The family background, cultures and mindset of the people helps in understanding the behavior of the customers towards the buying intention. (Huang & Van Mieghem, 2013) On the other hand, the referrals from the associates of the consumers help in enhancing the buying intent of the consumers. A research by Australian Communication Media Authority’s (ACMA) found that 17% of the consumers switched their preferences to another network provider in the nation, as the friends and associates of the consumers relied on the different network channels (Naeem et al., 2015). On the other hand, the report also portrayed that 22% of the respondents agreed to the fact that they switched to other service providers as the mobile phone was utilized more than anticipated (Thirumalai & Ahdout, 2012). Identifying the changes in the buying intent of the consumers has helped the network providers in Australia in maintaining the efficacy of the business operations. On the other hand, the identification of the changing social role of the customers has helped the businesses in maintaining the efficacy of the product and service- designing phase that are undertaken by the same. Boudali and Economou (2013) stated that the humans being social animals are influenced b the roles that are played by the same in the social structure. On the other hand, Moon, Park and Kim (2015) stated that the changes in the social structure and the role play models of the customers greatly influences their buying intent. The social structure and the employability of the customers in the different economies help in identifying their potentials of affording the range of products or services that are offered by the business. Social factors relating to the employability of the target audience helps in supporting the purchasing potential of the same. On the other hand, the different changes that might be undertaken by the Vodafone in Australia are based on the assessment of the customer satisfaction gained by the people through the utilization of the product and the services. Huang and Van Mieghem (2013) stated that the identification of the needs of the customers helps the organizations in maintaining the proficiency of the operations through steady developments in the line of product and service offerings. On the other hand, the identification of the different changes that might be undertaken by the organization aims at adhering to the buyer’s intent of making a buy.
Impact of environmental factors on consumer decision making
In a research, it has been portrayed that more than 30% of the customers switch from one network provider to another due to degradation of the service quality (Lee et al., 2013). On the other hand, the research also illuminates that the involvement of customer’s associates in different service providers has resulted to the switches. Referrals and recommendations are one of the major factors that influence buyer’s decision making in the process. The identification of the preferences of the customers is based on the understanding of the needs of majority of the people. On the other hand, the economic status of the region helps the organizations in determining the potentiality of the buyers in making a buy of the products or services that are offered by the telecom industry in Australia. Therefore, the identification of the different social factors helps in upholding the efficacy of the operations that are planned by the Vodafone in Australia.
The environmental factors affect the buyer’s decision making capabilities through the influence of the contextual factors and situational factors. Yaeli et al. (2014) stated in the research that some 43% of the consumers make an purchase decision based on the impulse related to commercialization of the idea. However, Emtiyaz and Keyvanpour (2012) stated that the induction of the contextual factors helps in boosting the impulse of the consumers for making a buy of the commodity to 93%. The ambient condition is one of the most important parts of the contextual factor which is believed to influence the perceptions. The ambient condition triggers in the mind of the customers and thereby stimulates the five senses, which helps in supporting the buyer’s decision making capabilities (Chen & Cheng, 2013). The syllogistic structures also influence the buying behavior of the consumers in Vodafone service providers. The utilization of different signs and symbols in the promotional functions helps the organizations in attracting the attention of the cosnume4rs and thereby persuade the same to make a buy of the products and the services.
The identification of the different contextual aspects of buyer’s decision making capabilities helps the organizations in maintaining the efficacy of the operation that are undertaken by the same. On the other hand, the situational factors also play a major role in influencing the buyer’s decision making capabilities. Huang et al. (2014) stated that mood and motivation of the customers play a major role in supporting the buying intentions of the consumers. On the other hand, Angell and Kraemer (2014) stated that the hedonic motivation of the consumers drives the same to make a buy of a product or service through the experience gained by the same while utilizing the offering. The key elements of change that are undertaken by the organization are based on the assessment of the customer needs and preferences.
Baboli et al. (2012) stated that the identification of the situation and the manner in which it affects the customer’s decision making process has helped the Vodafone in Australia to develop different strategies in order to enhance the operations of the same. The mood of the customers and the different influencing factors relating to the quality of the products or services affects the buyer’s decision making power. As per the research that was undertaken by Australian Communication Media Authority’s (ACMA), 30% of the customers switched their choices from one network provider to the other due to the poor service quality (Quilumba et al., 2015). The degradation of the service quality of the network providers affected the customer decision making of the target audience. The key elements of change that are undertaken by the organizations under the Vodafone of Australia are based on the assessment of the needs and choices of the customers. On the other hand, the stigma and impulsive buying behavior of the consumers has helped the organization in understanding the preferences of the customers. Kumar et al. (2016) stated in the research that 39% of the customers switch their choices due to the poor connectivity of the services that are provided by the Vodafone in Australia. The different environmental factors influence the buying behavior of the customers in the organizational context. The key elements of change that are undertaken by the organizations are based on the identification of the needs of the same while operating in diverse international markets. Yi and Gong (2013) stated that the different environmental factors plays a major role in influencing the buyer’s decision making initiatives of the customers. The identification of the environmental factors and the different psychological impacts of the factors on the buyer’s decision making process help organizations in upholding the efficacy of the business operations.
Based on the social and environmental factors impact on the consumer behavior towards purchasing mobile phones from the service providers in Australia, certain effective recommendations are provided below for improving marketing strategies of Vodafone operators.
- Social factors prevailing among the Australian consumers is observed to greatly impact their purchase decision towards mobile phone and it has been revealed that quality is Smartphone is a vital factor that influences their switching decision. Considering same, Vodafone operators are recommendedto constantly focus on technological advancement in their offerings that can attain attraction of increased Australian consumer base. Moreover, they can also focus on enhancing their battery technology that is considered to be the most important feature demanded by target consumers. In addition, through focusing on such technological advancement there is an increased scope for Vodafone operators retailers to expand through analyzing consumer affordability and purchasing habit. From analyzing environmental factors impact on consumer buying and brand switching behavior it is observed that constant technologic innovation is trending in Australian mobile service industry. In attaining competitive advantage in such environmental situation, the mobile service providers are recommended to make increased investment in UX design for developing cell phones. Implementation of this technological advancement can facilitate in making information simpler to understand that can grow sense of brand loyalty among consumers.
- Selecting suitable mobile environment is recommended to the Vodafone operatorsas it is deemed important to reach the major target audiences. In accomplishing this strategy, the companies can consider using both Oracle and KISS Metrics that can facilitate them in developing an application along with mobile application. Using such applications serve distinct purposes and also address different target consumer bases. As it has been noticed that Australian consumers tend to be loyal to mobile applications as they look for easier and faster ways in interacting with the brands. Through implementing this strategy, the marketers of Australian mobile service providers can simplify the shopping experience along with offering specific “on-the-go” services along with basic information.
- The Vodafone service providersof Australia are also recommended to take advantages of developing multi-screen and multi-device opportunity. These providers must also develop effective campaigns for different devices along with offering relevant content to distinct segments of Australian consumers thus increasing return on investment and switching costs. Moreover, it is also recommended that using location based advertisements through using geo-location service that can communicate targeted messages to specific Australian consumers.
- The Vodafone service providersare also recommended to integrate with the social media platforms as it can serve as a great place to monitor and listen the target audiences of Australia. In addition, it is also recommended that the mobile strategy must be integrated with social media platforms as this encompasses sharing reviews, having social sharing buttons along with generating content that is engaging for audiences. Implementing such strategy can increase loyalty of consumers towards the Vodafone service providers that will decrease the chances of switching to other brands. Using such applications serve distinct purposes and also address different target consumer bases. As it has been noticed that Australian consumers tend to be loyal to mobile applications as they look for easier and faster ways in interacting with the brands.
- For analyzing the social and environmental factor impact on consumers purchase intention and rand switching behavior, it has been gathered that the consumers are likely to purchase cell phones of a brand that reveals highly engaging content on a constant basis. Considering such situation, the mobile service providers are recommended to send timely alts along with notifications regarding coupons discounts and savings on purchasing cell phones of their brand. In addition, the companies can also consider using optimized e-mail marketing as it serves as an effective manner to keep the target consumers updated regarding any discount or coupons through offering newsletters. Another effective manner to market mobile phone service to target consumers is through leading with value. This can be accomplished through engage consumers with the mobile phone activities along with integrating their multiple data sources along with moving close to centralized data systems as much as possible.
Conclusion
The report analyzed the manner in which the Australian telecomm industry might bring forth changes in the propositions for adhering to the changing needs of the customers. It was gathered from the paper that the decision making capabilities of the consumers are mainly supported through the recommendations and the references that are made by the relatives and the associates. Moreover, identifying the changes in the buying intent of the consumers has helped the Vodafone service providers in Australia in maintaining the efficacy of the business operations. Based on such findings it has been recommended that focusing on such technological advancement there is an increased scope for Australian mobile phone retailers to expand through analyzing consumer affordability and purchasing habit. Selecting suitable mobile environment is recommended to the Vodafone service providers as it is deemed important to reach the major target audiences.
References
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