Consumer Behaviour in Orascom Telecom - Coursework Example

The telecommunication sector today is one of the most growing sectors due to the growth of technology. The advances in the sector have made the world turn into a globalised community and has attributed to the productivity and economic efficiency in most of the sectors. Orascom Telecom Media and Technology is a firm in the telecommunication sector. Orascom Telecom has focused on offering its customers 3G and 4G services which are the networks being used in most parts of the world today due to their speeds. 3G and 4G enable internet users to have faster speeds when browsing and can receive and send different multimedia messages, unlike GSM. There is a consumer preference for the 4G mobile services and the consumers are ready to pay for the services due to the quality of communication service, data rates among other attributes. Alfa, a firm that is managed by Orascom Telecom has launched 4G LTE-Advanced network which offers customers downloads speeds of up to 262.5Mbit/s for all customers that rely on data-intensive applications to customers in Asia and the Middle East. 74% of Alfas customers are data subscribers who drive the firm to invest more in the sector (Paye, 2016. para 3). The aspect of Orascom Telecom investing in 4G services in most of its markets reveals that its consumers have a preference for the latest technologies due to their efficiency.

Consumers make choices on different purchase behaviours based on the pricing of telecommunication services. Bundling services of a telecommunication firm that include the internet services, text messaging, call minutes and financing for a mobile device need to have a competitive edge from those of competitors to attract buyers. Alfa which is a mobile service in Lebanon that is controlled by Orascom Telecom was boycotted by the Lebanese due to the high cost of cell phone services (Bitar, 2017, para 2). Based on the protesters argument, the mobile service needs to reduce the prices of international and domestic calls and the removal of the monthly fee needed to keep a phone line active. Buyers consumption behaviours rely on the most economical services hence a telecommunication firm requires to have competitive rates on their bundling services to attract customers. Orascom Telecom requires to understand the needs of its consumers in all markets and meet them however pricing of the products should be competitive to avoid losing customers.

The choice of a mobile service provider is determined by the quality of the providers network in a given area and the cost of using the service (Kumar, Shankar & Debnath, 2015, p.452). The transaction value and acquisition value of a telecommunication service determine if customers will adopt it or not. Consumers prefer using the services of a provider who is reliable, offers good network coverage in most regions and that whose price of services is affordable. The use of cable technology is growing both in workplaces and in homes. More people are using the internet to communicate and work which drives them to pay for unlimited internet services. Cable technology is one of the investments by Orascom Technology through Transworld Associates. Cable technology helps the consumers receive unlimited high-speed internet at affordable rates. Transworld Associates, a joint venture of Orascom Telecom, Omzest Group of Oman and Saif Group has a 20,000km long fiber optic cable that connects Pakistan to 16 countries within Asia and Europe due to the high demand of high speed internet connections by customers within Middles East, Europe and Asia (Alecdean, 2016, para 2). A firm offers products and services in the market based on the needs of the customers and Orascom Telecoms investment in fiber optic cable within 16 countries is an indication that internet is highly relied upon by its customers.

Customers seek services from a telecom firm that adhere to the government regulations in the target market. Orascom Telecom has ensured its adheres to the laws of the countries it invests in to enable more customers to access their services as well as avoid being denied the chance to offer their services in the different countries. Koryolink, a firm managed by Orascom Telecom in Korea. Telecommunication services customers are not supposed to use international roaming services within the country, and if one is found or tracked using the services, it can lead to a fine. The limitation in the country has made customers focus on using domestic calling services only (Bell, 2017, para 6). Orascom Telecom through Koryolink has ensured it only offers domestic calling services to meet the needs of the Korean customers despite offering international roaming services in other markets.

Sustainability

Sustainability involves offering consideration to the social, economic and environmental effect of an organisations processes (Frank-Martin & Peattie, 2009). The sustainability issues that can be linked with the telecommunication sector include child labour, customer privacy, compliance and prevention of forced labour. The consumers of Oracom Telecom services based on their consumer behaviour do not favour sustainability. Based on the various consumer behaviours driving Orascom Telecoms investments in Koryolink, Alfa and Transworld Associates, they focus on paying for services that are affordable, high-quality and effective and will rarely make a purchase decision based on the social, economic or environmental effect of the service to the society. Therefore, the customers behaviours do not favour sustainability.

References

Alecdean. (2016). State of the art high-speed submarine cable SEA-ME-WE 5 lands at Transworld landing station, Karachi - SEA-ME-WE 5. SEA-ME-WE 5. Retrieved from http://www.seamewe5.com/2016/09/state-of-the-art-high-speed-submarine-cable-sea-me-we-5-lands-at-transworld-landing-station-Karachi/

Bell, P. (2017). North and South: Contrasts in Korea. Blog.telegeography.com. Retrieved from http://blog.telegeography.com/north-and-south-contrasts-in-koreaBitar, L. (2017). Users Boycott Lebanons Mobile Phone Operators, Alfa and touch. Global Voices Advocacy. Retrieved from https://advox.globalvoices.org/2017/01/11/citizens-boycott-lebanons-mobile-phone-operators-alfa-and-touch/

Frank-Martin, B., & Peattie, K. J. (2009). Sustainability marketing: A global perspective. Wiley.

Kumar, A., Shankar, R., & Debnath, R. M. (2015). Analyzing customer preference and measuring relative efficiency in telecom sector: A hybrid fuzzy AHP/DEA study. Telematics and Informatics, 32(3), 447-462.

Paye, T. (2016). Operator Alfa launches Lebanons first LTE-A network. ComputerWeekly.com. Retrieved from http://www.computerweekly.com/news/450301905/Operator-Alfa-launches-Lebanons-first-LTE-A-network