Social And Environmental Factors’ Impact On Consumer Purchasing Behavior | Vodafone Case Study

Social factors and their influence on consumer decision-making and brand switching

Social factors have an important role in influencing buying decision of the customers. Social factors like immediate family members, reference groups, status and relatives have an impact on purchasing behavior of the consumers. On the other hand, environmental factors influence on the consumer behavior. Busy days, personality of customers, date and time of purchase, available alternatives and geographic location are the external factors that make an impact on the purchasing decision preferable of customers like for most of the customers, finding the stores where low traffic is. The present study deals with the discussion of social factors and their impact on consumer purchase-decision and brand switching. In addition, environmental factors as well as its impact on the purchasing process and switching to different brand are discussed. Recommendations are provided to enhance marketing strategies of Vodafone.

2. Social factors and their influence on consumer decision-making and brand switching

Social factors have an impact on customer behavior of Vodafone in a significant way. Individual follows some factors that influence their buying decisions. The significant social factors have a great impact on the customers of Vodafone such as reference groups, family as well as role and status. The customers are individual, however belongs to a group. It is one of the direct as well as simple classifications in the process (Chaudhary 2016).

 On the other hand, reference group is the second group. It influences self-image of the customers as well as their behavior of purchasing. The reference group provides the points of comparison to the customers regarding behavior, lifestyle, close friends, work group of people that the customers are related. In addition, the groups to which a customer does not belong yet have the power of influence. The aspirational groups are considered the group where a customer aspires belongs as well as wants as the part in future.

Family members can influence on customer behavior individually. The customers created brand perceptions when they are young can be helpful in carrying out the same brand selection in adult life without reorganization of family influencing the selections for Vodafone (Zhang et al. 2017). Apart from these, individuals have an important role in their lives. Social status has an important role as it reflects on the position that people have in the social groups that are based on specific things as money as well as wealth, education and occupation have a strong influence. It is also important for the people for admiration of others (Ghavamipoor et al. 2017).  On the other hand, selection of brand as well as product reflects on social role as well as status.  

On the other hand, a brand is considered as a name, design, symbol as well as other feature that makes difference a product from another. It is tangible product or service as it is packed with feelings as well as perception towards product. A renowned brand like Vodafone can bring trust as well as hang with changing the world. It reflects to people as person wants to be.  In addition, a brand needs to provide values, personalities, advantages as well as slogans for the customers of Vodafone. A product has strong brand image that can correspond with personality of the customers (Bruhn et al. 2015).  On the other hand, the customers can express through brand choice and provide image to be an ideal.  Perception of a brand image is combined with personality of the brand.

Environmental factors and influence on consumer decision-making and brand switching

The dimensions of brand personality are important to analyze (Huang, Fang and Liu 2017). The decisions that concern with the brand need time from the marketers. They require positioning the brands in such way that can reach to the mind of the customers. They require positioning of the brands in such way that are in the mind of customers.  

The current tariff cuts announced by several telecom operators would affect on the bottom line of the organizations. These are unequipped for matching up with competition as well as do not have economies of scale that would lose in the market.  However, Vodafone makes effective strategy like reducing tariff plans and offering discounts in the plans. The targeted market is Australia and the audiences of Vodafone present in multiple parts of the country. In the market competition, the shares of TPG Company have increased 22%. On the contrary, the Australian parent company of Vodafone has given a hint that makes plan to follow the Telco strategy.

In addition, dataset on the communication service prices can be measured as well as analyzed by Vodafone Australia. In addition, the international markets are analyzed for price differences in the market in order to encounter the demands of the consumers. In order to assist the customers, Vodafone Self-service Kiosks as well as centers in multiple regional areas have been introduced. On the other hand, domestic appliance retailing, telecommunications Services as well as wireless telecommunications carriers have been provided by Vodafone for its customers.

In order to get success in the process, the marketers utilize three levels of positioning. The brands can be positioned through product attributes.  For an instance, in coffee brands, the attributes like environment friendly package. Universal position through attributes works can assisting the process of working (Lin et al. 2018). The customers are not interested in the attributes. A better method for positioning the brand is joining the name is desirable and makes the brand desirable for Vodafone. The consumers are not interested in the attributes. However, the competitors of Vodafone can copy the attributes easily as well as obtained advantages with the attributes that is lost. A better way for positioning the brand is joining the same with desirable advantages.

For example, Volvo represents safety, whereas Nike represents performance and Maserati with quality (Pan and Kang 2016). The customers are related to the brand name as well as advantages in mind without seeing the tangible products. There are highest levels of brand positioning works with the attributes as well as advantages.

3. Environmental factors and influence on consumer decision-making and brand switching

Environmental factors affect on customer purchasing behavior of Vodafone. Cultural influences can be defined as complicated sum of total knowledge, belief, customs as well as traditions that have large influence on the customer purchasing behavior and decision-making process (Boateng 2016). In addition, moral law and art as well as other habits acquired by people influence on customer purchasing process. In addition, sub-cultural has a great impact within a culture, where major groups and segments of people with different traditions as well as behavior influence the purchasing process.

Social class refers it referred to the group of people sharing equal positions like income, occupation as well as education in the society.  For examples, the selection of residence, holiday type, entertainment and leisure. On the other hand, social group influences on the political groups, study groups as well as work group and service organizations of Vodafone such as lions and rotary.  Different members of the group influence the group behavior. On the other hand, time pressure is one of the major factors that influence customer-purchasing behavior (Bruhn et al. 2015). Customers have tendency to include tunnel vision and that will consider the factors considered than normally possible. The customers will select the brand based on the narrow set of the features. Adjust messaging includes last minute shoppers.

There are distinctive emphasis is provided by different cultures for purchasing, utilization as well as disposal of the products (Boateng 2016).  There is specific style of consuming food. Clothing as well as savings. It differs from people of other state or region of the country. Different cultures as well as habits are considered as predominant in distinctive parts of the globe. For an example. Japans have a different culture from USA, Arabian countries as well as England. Hence, in terms of consumer behavior, culture has an important role.

Sub-cultural influences are one of the important aspects that has an impact on consumer behavior and purchasing decision making process. There are several subcultures seen in a country because of religion and others things. Hence, within a social class, people like to share the same values as well as beliefs along with the trends in order to buy the type of products. The selection of residence, holiday type, entertainment as well as leisure seems to be alike (Bruhn et al. 2015). On the contrary, knowledge of social class can be referred to the group of people sharing equal positions in the society.  Hence, within a social class, consumers like to share the same values as well as beliefs along with the tendency to buy same type of products. In addition,

Vodafone offers several services like voice services, SMS and MMS services, data services, satellite, television and radio relay as well as handsets and equipment. The industry activities like Direct-to-home satellite systems operation, Cellular telephone communication service, Voice over Internet Protocol (VoIP) provision and Microwave/radio wave transmission would assist for the organization obtaining competitive advantages (Bruhn et al. 2015). The international markets are researched for price differences in the market in order to meet the demands of the customers.

In addition, social group influences on the individuals sharing customer relationship, attitudes as well as same interest. The groups could be the primary for interacting the process amongst the process as well as knit (de Santos and Oliver 2018). The influences could be political group, work group as well as study groups and service based organizations such as Lions and rotary.

The individual makes procedures of the information that are received in several ways as well as assess the products in own personal method. Personal influences have a long way for purchasing the products. Customers are influenced to study consumer behavior (Chaudhary 2016). The broken lines can indicate the factors influenced and turned through each other. However, there are several factors into multiple groups. It is achieved for the factors that influence classification in broad categories.

4. Recommendations to improve marketing strategies of Vodafone 

Vodafone utilizes a mix of segmentation strategies for segmenting the offerings in the mobile network services, enterprises services as well as broadband services. The enterprise services as well as broadband services accordingly (de Santos and Oliver 2018). It utilizes geographical, psychographic as well as demographical segmentation. Vodafone is targeting different sections of the societies with the multiple targeting strategy.

Product is the marketing mix of Vodafone. It offers several products consisting of voice, messaging, data as well as fixed line solutions. The aim is helping the customers with the demands of communication (Naidu 2017). On the other hand, the core utilization as well as functionality of the handsets and voice services are the major elements. In order to cater distinctive the demands of customers, the organization offers several tariffs targeted at multiple segments of the customers. With the data usage as well as requirement of the sophisticated handsets that become essential for the customers looking for the best quality of products.

Hence, Vodafone branded devices as well as service demands. The products are Vodafone phones, smartphones, handsets, internet services as well as value added services. The place of marketing mix of the organization is a major component. The report upto December 2013, Vodafone has 960 million customers. Hence, in order to strengthen the position in the countries, the organization bought Essar for 5.46$ billion (Mahajan et al. 2017). The marketing strategy of the enterprise is emphasizing on the customers.

On the other hand, promotions in marketing mix of the organization that has significant components. Vodafone uses the local name reorganizations that help to reach and maintain trust of the local customers.  Moreover, in order to promote the global appeal and communication as the value of brand (Mgbemena et al. 2016). On the other hand, telecommunication giant uses famed sports stars. It advertises its brand values and offers through billboards. TV commercials and social media outlets for reaching a large social media outlets are important. It is important to develop the process and make the use of advertisements like zoo zoos at the time of premier league. There are famous brand ambassadors as well as recognized across the globe. The enterprise undertakes research in the marketplace for determining the services as well as products that are useful.

On the other hand, customer analysis is the marketing strategies of the organizations are important to develop effective marketing strategies where 92% of total customers are included of the 8% of customers and enterprises (Mathiraj and Sangeetha 2018). Customer segments are targeted by several tariffs as well as positions that are adopted for the localized customer preferences along with the process that are adopted for the localized customer preferences as well as requirements. It mixed up with the voice, messaging, data as well as fixed line services. The customers of the organization are classified as prepaid and contract customers.  The prepaid customer make the payment in advance as well as usually not bound to have minimum contractual commitments.

Vodafone uses local recognitions for reaching and maintaining trust of local consumers (Naidu 2017). In marketing mix of Vodafone, the promotion is considered as the strongest point for Vodafone. Segmentation is the procedures of splitting or segmenting the market into the smaller groups. The variable of the market segmentation consists age, income, geographic as well as psychographic and behavioral. In order to launch Vodafone product, it is required to analyze the ages as well as income.

The markers are developed of several difference groups of people having general characteristics as the customers. The groups command purchasing power of the market segmentation that includes smaller groups and the products are important in this aspect.  On the other hand, being operationally performed through maintenance of operational efficiency. The organization is reliable service to the customers at lower cost. The organization can capture the market through its proper marketing strategies (Vyshnavi and Rao 2016). Competitor analysis as well as market entry strategy would be helpful to analyze the activities for making strategic planning. It assists the management for understanding competitive benefits or limitations related to the competitors. On the other hand, it produces comprehension of the competitors about past and present strategic planning. It is important for the organization to enter in the new market that is always challenging. Effective market entry strategies would be helpful to analyze effective market research that would be helpful in understanding the opportunities and competitive landscape as well as understands the potential strategy of Vodafone.

  5. Conclusion

The above discussion concludes that it is important for a business organization to analyze customer behavior and the factors that influence decision-making process at the time of purchasing. Comprehending, analyzing as well as keeping track of the customer behavior have an important role in managing the process of purchasing. In the present context, Vodafone analyzes several factors that have an important impact on the customer purchasing process. Group influence has an impact on the purchasing process. Advertising has an important role in purchasing product. Hence, it is required to focus on the factors and take proper actions so that the organization can obtain competitive benefits.

6. References

Boateng, H., 2016. Customer knowledge management practices on a social media platform: A case study of MTN Ghana and Vodafone Ghana. Information Development, 32(3), pp.440-451.

Bruhn, M., Papen, M.C. and Zingg, D., 2015. Complaint Management on Social Networking Platforms: An Examination of Inconsistent Complaint Behaviour and the Identification of Potential Reduction Strategies. Marketing ZFP, 37(4), pp.201-210.

Chaudhary, R., 2016. Data mining techniques for customer relationship management. IJCEM), 3(6).

de Santos, A. and Oliver, N., 2018, September. Musical data: a novel approach to create music from mobile data. In Proceedings of the 20th International Conference on Human-Computer Interaction with Mobile Devices and Services Adjunct (pp. 359-364). ACM.

Ghavamipoor, H., Hashemi Golpayegani, S.A. and Shahpasand, M., 2017. A QoS-sensitive model for e-commerce customer behavior. Journal of Research in Interactive Marketing, 11(4), pp.380-397.

Huang, Y.S., Fang, X. and Liu, R., 2017. When necessary evil is good: Customers’ reaction to the witnessing dysfunctional customer behavior.

Joshi, S., Bhatia, S., Raikar, K. and Pall, H., 2017. Customer experience and associated customer behaviour in end user devices and technologies (smartphones, mobile internet, mobile financial services). International Journal of High Performance Computing and Networking, 10(1-2), pp.118-126.

Lin, A.J., Li, E.Y. and Lee, S.Y., 2018. Dysfunctional customer behavior in cross-border e-commerce: A justice-affect-behavior model. Journal of Electronic Commerce Research, 19(1), pp.36-54.

Mahajan, V., Misra, R. and Mahajan, R., 2017. Review on factors affecting customer churn in telecom sector. International Journal of Data Analysis Techniques and Strategies, 9(2), pp.122-144.

Mathiraj, S.P. and Sangeetha, T., 2018. Customer portability behaviour on mobile phone network services [reference to aircel network service to others in chennai city]. Indian journal of applied research, 8(7).

Mgbemena, C., Bell, D. and Saleh, N., 2016, September. A Data-driven Methodology for Agent Based Exploration of Customer Retention. In Distributed Simulation and Real Time Applications (DS-RT), 2016 IEEE/ACM 20th International Symposium on (pp. 108-111). IEEE.

Naidu, A., 2017. Strategies for Marketing to the Rural Customer in India: The 4 As Model of Rural Marketing. Journal of Rural and Industrial Development, 5(1), p.35.

Pan, H. and Kang, M.S., 2016. A Study on the Effects of the Perceived Value about Smart Phone’s Customer Behavior: Focusing on Switch-ing Intention.

Vyshnavi, P.S. and Rao, P.V., 2016. Factors Influencing Consumer Behaviour: Brand Preferences, Usage Patterns and Satisfaction Levels of using Mobile Phones: A Case Study of College Students in Kavali Town, Andhra Pradesh, India. International Journal of Innovative Research and Development, 5(9).

Zhang, D.J., Dai, H., Dong, L., Qi, F., Zhang, N., Liu, X. and Liu, Z., 2017. How Does Dynamic Pricing Affect Customer Behavior on Retailing Platforms? Evidence from a Large Randomized Experiment on Alibaba.