Journal of Marketing Management

March 2014, Vol. 2, No. 1, pp. 97-110

ISSN: 2013-204X (Print), 1022-2045 (Online)
Copyright The Author(s). 2014. All Rights Reserved.
American Research Institute for Policy Development
42 Monticello Street, New York, NY 12701, USA.
Phone: 1.121.293.5264 Website: www.aripd.org/jmm

Influence of Cultural, Social and Marketing Factors on the Buying Behavior of

Telecom Users: A Comparative Study of Rural, Semi-Urban and Urban Areas
in and Around Chandigarh
Inderjeet Sethi1 and AS Chawla2

Abstract
People's behavior makes sense if you think about it in terms of their goals, needs,
and motives Thomas Mann. Consumer behaviour is the study of individuals,
groups, or organizations and the processes they use to select, secure, and dispose of
products, services, experiences, or ideas to satisfy needs and the impacts that these
processes have on the consumer and society. Indian telecom sector is the fastest
growing sector attracting very high FDI and its market is 2nd biggest market in the
world after china. Liberalization and privatization in this sector open the gates for
many competitors in the market and so it is important for the marketers to
understand the consumer behavior. Consumers behavior is very much influenced
by the Social and cultural factors which are not controlled by the marketers but an
avid study of this can help the marketers to understand the behavior of the
consumers and can make marketing strategies accordingly.
Keywords: Consumer behavior, Social Factors, Cultural Factors

Introduction
The advances in technology entire world have become a single market &
consumers and have been bombed with hundreds of choices.
1

Research Scholar, Punjabi University, Patiala, E-mail:[email protected], Contact no:

09911005599
2 Professor, Punjabi University, Patiala

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The sellers market has disappeared and buyers market has come up. This has
led to paradigm shift of the manufacturers attention from product to consumer and
more so, on the consumer behavior. Consumers buying behavior refers to the buying
behavior of the ultimate consumer. A firm needs to analyze the buying behavior for
buyers reactions to a firms marketing strategy, to know the perfect marketing mix
and the responses of the consumers towards their marketing strategies. As the
customers are available with so many choices so it made the purchasing process a
complicated set of process that moves from five stages-Problem Recognition,
Information search, Evaluation of alternatives, Purchase decision and Post Purchase
behavior.
There are many factors that influence the buying process of the consumers
that includes the buyers characteristics, psychological factors, social and cultural
factors. The family has the very important role and influence in the buying behavior
of the consumers that includes Parents, Husband, Wife and children. Social factors
that influence the consumer buying behavior includes Reference groups, immediate
family members, relatives, role in the society and social status. Cultural factors
comprise of set of values and ideologies of a particular community or group of
individuals. Whatever a person see from his/her childhood become his/her culture
that includes their habits, beliefs, and principles what they have developed. These
social, cultural and marketing factors effect the buying behavior of the consumers and
hence it is very important for the marketers to study these factors.
India has one of the worlds largest telecommunication networks. The telecom
story continues to be the best evidence of the efficacy of the reforms
process. Different telecom policies were introduced in the nation with the aim of
providing mobile services in each and every area and fit to all pockets. The increased
competition in the market makes the consumer benefit in availing best services at
nominal prices. Due to this there is very high growth rate in the subscriber base of the
telecom users in the market that is from 131.97 million as on march 2007to 595.9
million as on March 2012. The changing development of the subscriber rate has also
led to changing factors that effect the purchasing behavior of the customers. The
customers priorities are changed due to increased awareness in the market through
good dealer network and high promotion & advertisements. The medias using by the
companies are that are mainly used by the people of that area.

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99

The present study aims at finding out the impact of the social, cultural and
marketing factors on the buying behavior of the customers that effects the marketing
strategies of the firms.
Review of Literature
Many studies have been conducted on Consumer behavior and Consumer
behavior in Telecom Sector with the objective to understand the different factors that
effect the consumer behavior, in regard to their demographics, psychographics, social,
cultural and marketing factors .Different studies shows that telecom sector has
undergone through a major change that include their demographics, their awareness,
their interest, their perceptions and the factors that effect their decision making
process. The studies concluded that the providers should make their marketing
strategies after understanding the consumer behavior in their sector done.
Wang, et al (2008) studied the theory that the Technology Acceptance Model
(TAM), perceived usefulness (PU) and perceived ease of use (PEOU) determine users
behavioural intentions to use or purchase a system or product. The empirical study
was conducted to examine the effects of TAM and network externalities on the
acceptance of Multimedia Messaging Services (MMS), an innovation in the field of
mobile telecommunications. The results confirm the effectiveness of the TAM and
find that network externalities effect affects users' acceptance to this mobile
innovations. Accordingly, the TAM can be applied to predict consumer's acceptance
to the mobile telecommunication innovations in the presence of network externalities.
Sauer and Hoyer (2009) opined consumers with a tendency towards market mavenism
(MM) and opinion leadership (OL) represent powerful forces in the marketplace
because of their influence on other consumers' consumption decisions. They are thus
important consumer groups for both other individuals and companies. Using data
from 1145 German consumers in four product categories (i.e., wine, clothing, cars,
and cameras) and applying structural equation modeling, they have found that opinion
leaders and individuals with a tendency toward mavenism have higher levels of
satisfaction, and the opinion leaders being more loyal consumers & market mavens
having high need for variety (NFV).

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Kimiloglu and Nasir (2010) conducted a research on Discovering behavioral

segments in the mobile phone market to analyze the decision making criteria of 302 mobile
phone customers and cluster the sample. The sample was segmented into four basic
clusters as pragmatic, abstemious, value-conscious, and charismatic and concludes
that Pragmatic and abstemious customers focus on functional attributes of the
product where as Value conscious focus on price and Charismatic segment considers
technological superiority, durability, functionality and design.
King N J and Jessen (2010) identified the potential harms to privacy and
personal data related to profiling for behavioral advertising. It evaluates the extent to
which the existing regulatory frameworks in EU and US provide adequate level of
privacy protection and key privacy gaps that the behavioral advertising industry and
regulators will need to address to adequately protect mobile consumers from profiling
by marketers.
Chaubey, Zafar and Hasal (2011) conducted a research to study the various
factors affecting the behavior of mobile phone users in Uttrakhand state. The sample
of 306 of the targeted population was selected that includes students, service category,
and business person to formers as well as housewives. The result shows that the males
constitute the major market share that are qualified but having average income. There
are different purposes of having mobile that include staying in touch, flaunting.
Customers are very much aware about the services offered by the providers. Better
connectivity is the main factor that influences the purchase decision.
Eric (2012) researched to study the influence of sales promotion on consumer
buying behavior in the telecom industry in Ghana. The sample of 100 customers were
collected and concluded that there is a significant influence of sales promotion on
consumer behavior. Improvement in sales promotion strategies will lead to a
corresponding improvement in consumer buying behavior towards purchasing
telecom services.
Jegan A. and Sudalaiyandi(2012) conducted a research study on Consumer
Behaviour towards mobile phone services in Kovilpatti, Thoothukudi district on 100 mobile
users and concluded that the factors that influence the consumers to buy a particular
mobile phone operator is called Call tariffs followed by network coverage and brand
image.

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Nair (2013) in a study conducted across over 15000 mobile users in 14

markets worldwide and found that over 50% of the average mobile web user now
uses the mobile as means of going online. The study also reveals that the users get
updates from their mobile devices, it had provided them with better options and even
they made their purchases using their mobile devices.
Ling and Siou (2013) opined that mobile technology services have gradually
influenced consumer shopping behavior and e-commerce pattern. For this he
conducted a study to understand the impulsive purchase intent of consumers on
mobile commerce platforms on 322 customers of itunes. The results indicate that a
high level of impulsivity reduces the effect of enjoyment on irresistible urge to buy.
The data also shows that emotional conflict, positive buying emotion, mood
management, cognitive deliberation, disregard the future and unplanned buying are
important to impulsivity formation and thus relevant within the context of impulse
buying intention.
Agyeman (2013) conducted a research on 375 customers that conclude the
staff and students of the institution to find out whether the social class, gender, and
sub cultural factors influence the purchase of a mobile phone. The study revealed that
the maximum respondents use the mobile phones with multi functions. The
residential area has the minimum influence on the purchase decision of the consumers
where as income is an important factor as higher the income higher will be the
spending level. In respect to sub cultural factors, religion and language are not an
important factor to effect the purchase decision where as work side colleagues, peers
and friends have influence on the purchase decision of the consumer.
Objectives
The research paper has following objectives:
1. To study the impact of culture & sub culture influences (parental controls /
Individualism vs. collectivism / Masculinity vs. femininity) on purchase
behavior of consumers of rural, semi-urban & urban areas.
2. To study the impact of social influences (family, reference group and social
class) on purchase behavior of consumers of rural, semi-urban & urban areas.

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3. To study the impact of marketing influences (segmentation, targeting and

positioning) on purchase behavior of consumers of rural, semi-urban & urban
areas.
Design of the Study
Descriptive method of research was used to know the influence of Social,
Cultural and Marketing influences on the purchase behavior of rural, semi urban and
urban areas.
Population and Sample Size
The term research population refers to all members of the group of interest to
the researcher. The population of the present research was the customers who are
using mobile services. The sample was randomly drawn from the Rural, Semi urban
and urban areas in and around Chandigarh. It consisted of 35 members from each
area. The questionnaire was personally administered to all selected respondents.
Research Instrument Used
The Questionnaire prepared consisted of Likerts five-point scale for
measuring attitudes & behaviour of the customers where strongly disagree was coded
as 1 while strongly agree was coded as 5.
Reliability of Cronbachs Alpha
Its reliability has been tested by applying the Cronbach Alpha whose value
came out to be 0.887 which is acceptable indicating that the internal consistency of
the questionnaire is good.
Analysis & Findings
The study aims at finding out the different factors that can effect the
purchasing decisions of the telecom users in rural, semi urban and urban areas that
includes their demographic factors, their psychological, social and cultural and
marketing factors.
Culture & Sub Culture Influences

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103

There are many cultural and sub cultural factors that can influence the
purchasing behavior of a consumer.
Scale Mean if
Item Deleted
To Stay In Touch
For Business Or
Professional Requirement
As A Status Symbol
It Is Advantageous Over
Landline
It Adds To Mobility
For Fun sake
Short Message Service
(SMS)
Internet
Call Related Features (Call
Forwarding, Call
Diverting)
Value Added Services
I consider religion as an
important factor

Scale Variance Corrected

if Item Deleted Item-Total
Correlation

Cronbach's
Alpha if Item
Deleted

315.87
316.17

244.135
246.580

.291
-.076

.886
.888

316.35
316.16

245.847
237.831

-.029
.506

.889
.884

316.13
316.45
316.30

238.211
238.990
242.856

.516
.335
.098

.884
.885
.888

316.37
316.30

241.110
241.374

.119
.170

.888
.887

316.35
318.23

238.342
240.119

.398
.141

.884
.888

Parental Control: The Respondents of rural, semi urban and urban areas are
asked if they have chosen their service provider as per their wish or under parents
influence, then more then 80% of the respondents chose their service provider as per
their wish which shows very less parental control in all areas.
Individualism vs. Collectivism: In Urban area, 57% of the respondents agree where
as 49% strongly agree that they need the service provider that leads to maximum
interaction, in Semi urban areas, 74% of the respondents strongly agree that they need
maximum interaction where as in rural areas, 100% of the respondents strongly agree
that they will choose the service provider which leads them for maximum interaction
with their near ones. This shows that the level of collectivism is very high in the rural
areas than in urban and semi urban areas.

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Being the consumers are free to choose any service provider but still they
believe in collectivism. In Urban areas, 63% agree and 37% strongly agree that they
believe in group opinion, in semi urban areas 69% strongly agree where as in rural
areas 54% strongly agree that they believe in group opinion. In rural areas, being
highly believed in collectivism still 3% of the respondents disagree for believing in
group opinion.
Masculinity Vs Feminity: Sex as a cultural factor effects the purchasing behavior
of the customers. In Comparison to rural, semi urban and urban area, the females of
rural are more dependent on their family/spouse. The females above the age of 42 are
also influenced by their children. They are not so educated but still they are aware
about the services the providers are offering. The reason behind that is the media that
has reached in every lane and home of the rural area too. They are more budget
conscious and so they use prepaid services. The females in rural areas are also
involved in self employment. The services often used by them are local and STD
calling where as in urban areas female respondents also use internet and SMS services.
The female respondents in the Semi urban and urban area are maximum
working and so are less dependent on their family. They are educated enough to take
their own decisions. They are aware about the competition among the service
providers and so consider different factors while choosing their service provider.
They highly believe in collectivism and try to increase their interaction. 100% of
female respondents are using internet services apart from calling and SMS Services
where as in rural areas 94% of the respondents are using internet services.
As compared to female respondents the male respondents are less dependent
but they consider their family and friends opinion, interaction level, group opinion
while choosing the service provider. The male respondents of urban areas are well
qualified or are studying as compared to the respondents of rural areas. They are using
mobiles not only for calling or for their business or professional reasons but also for
fun sake. There are hardly any differences between the rural, semi urban and urban
users in case of male respondents except that the rural users are more budget
conscious than urban and semi urban users. They consider call tariff as the most
important factor while choosing a service provider and they are more prone to change
their provider in case o better services offered by other providers. This makes the
competition very tough in the market.

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Religion: Religion as a sub cultural factor does not effect the purchasing
behavior of the customers in rural, semi urban and urban areas. More than 95% of the
respondents disagree to consider religion as a factor while choosing their service
providers.
Social Influences
There are many social factors that influence the purchasing behavior of the
consumers that includes their Family, reference group and Social Class.
Scale Mean if
Item Deleted
I would give preference to
that which is already using
by friends and family
members
I want to choose the one
that is maximum using by
my colleagues/seniors
I would give special
consideration to group
opinion
I would give special
preference to that which
will increase my interaction
I would give special
preference to that which
will increase my prestige

316.27

Scale Variance Corrected

if Item Deleted Item-Total
Correlation
241.319
.268

Cronbach's
Alpha if Item
Deleted
.886

316.39

244.809

.014

.889

316.38

241.322

.228

.886

316.10

238.848

.491

.884

316.28

241.152

.211

.886

Family and Friends: 54% of the urban respondents agree where as 46% of the
respondents strongly agree that they consider family and friends as an important
factor while choosing their service provider. They consider the provider that provide
them with best family plan or add on options to have economical contact between the
families. In case of semi urban users 51% agree and 49% strongly agree where as in
case of rural areas 77% strongly agree for considering Family as an important factor.
This social factor leads to maximum social interaction between the individuals.

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Group opinion: As group opinion is concerned 63% of the urban respondents

agree and 37% strongly agree, in case of Semi Urban 69% of the respondents strongly
agree and in case of rural users 60% strongly agree. The semi urban and rural users
prefer to walk in group than individual. For them group opinion is the best method to
choose the service provider.
Prestige: Talking about the Prestige factor, 71% of the urban users strongly
agree that they consider having a mobile with the services of reputed service provider
is prestigious and they want to keep that. In case of semi urban and rural area this
percentage is less with 60% and 54% respectively. Incase of rural area, 6% disagree
and 6% are neutral while considering prestige as a factor. So the urban respondents
are more influenced by the prestige factor than in case of rural and semi urban area.
Social Class: Social Class as a social factor effects the purchasing behavior of
the consumers, their colleagues and their seniors, their role in the society, status all
effect the purchasing behavior of the consumers. When asked about the respondents
of urban, semi urban and rural areas, 57% of the respondents of the urban
respondents agree while 43% strongly agree that they consider social class as an
important factor. In regard to Semi Urban and rural users, 69% of the semi urban
users strongly agree 60% of the rural users strongly agree that they consider social
class as an important factor. They consider their status, their role in the society, their
social circle as an important factor.
Marketing Influences
There are many marketing factors that effect the purchasing behavior and
decisions of a consumer:

Sethi & Chawla

Scale Variance Corrected Squared

if Item
Item-Total Multiple
Deleted
Correlation Correlation
I would give special consideration
239.542
.284
.
to brand image
For me Word Of Mouth Would
239.205
.312
.
Be an important consideration.
Sales promotion offers and
236.122
.661
.
advertising is an important
consideration factor
Exclusive applications offered by
241.272
.284
.
the providers is an important
factor
Advertising campaign is an
241.178
.274
.
important factor
I would give special consideration
242.581
.391
.
to call rate/tariff schemes/STD
rates
I would give consideration to
240.478
.336
.
different plans for different set of
consumers(students, working
person)
I would give special consideration
235.182
.471
.
to Customer Care Services
I would give special consideration
244.863
.021
.
to the innovation in services and
technology
Special Offers to buy a handset
245.558
-.008
.
from the service provider is an
important factor

107

Cronbach's
Alpha if Item
Deleted
.885
.885
.883

.885

.885
.885

.885

.883
.888

.888

Brand Image: 54% of the urban respondents agree where as 46% strongly agree
that they consider brand image as an important factor while choosing their service
provider. But in the case of semi urban area 40% agree, 54% strongly agree and 6%
disagree for considering brand image as an important factor. In case of rural area,
66% strongly agree, 31% agree where as 3% disagree while considering brand image
as an important factor.

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Word of Mouth: Word of mouth is an important media for publicity. We are

very much influenced from the place we live in, where we work, our role and status in
the society and so the persons we live with also effects our decision. Their views and
opinions are generally considered for the buying process. 42% of urban respondents
agree, 46% strongly agree, 6% disagree and 6% are neutral whose decisions are
effected by the word of mouth medium. In case of Semi urban and rural consumers,
77% of the semi urban users strongly agree and 66% of the rural users strongly agree
while considering word of mouth as an important factor to consider.
Sales Promotion Offers: Sales promotion offers is also an important marketing
tool used by the service providers to compete in the market. 77% of the urban users
agree, 86% of the Semi urban users strongly agree where as 100% of the rural
consumers strongly agree that they consider sales promotion offers while choosing
their service providers. These sales promotion offers can be in the form of discounted
calls, extra services provided by the Service providers that effect the buying decision
of the consumers. Apart from sales promotion offers, the consumers are also
interested in the different applications and services offered by the providers.
Advertising Campaign: Advertising works as an influential factor for most of the
respondents in different areas. In urban, semi urban and rural areas 69%, 57% and
74% agree that advertising effects their buying behavior. As the users of different
areas are maximum awared through the advertising medium that includes newspaper,
TV, radio, hoardings, insertions etc. the consumers get knowledge of all the providers
through these medium and can compare before choosing their provider. So
advertising is an important marketing tool that effects the consumers behavior.
Innovation in Services: 51% of the respondents of urban area, 60% of the semi
urban users and 66% of the rural users strongly agree that the innovation in services
effect their decisions. While the users of the rural area are not so much educated but
they are aware about the technology the providers are providing and so they want to
get the best and updated technology and services. The users use the mobiles not only
for calling purpose and they dont treat this only as communication medium but
entertainment medium also. So they always look for new and latest services.

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109

Segment Quota: Specials tariffs and plans for different groups are also an
important marketing tool that the users consider. 51% of the urban users, 77% of the
semi urban users and 71% of the rural users strongly agree that they consider this if
any provider is offering them special services under segment quota.
Conclusion
From the study it can be concluded that the Social, Cultural and Marketing
factors have a great influence on the buying behavior of the users of rural, semi urban
and urban area. The advancement in technology has narrowed the difference between
the awareness and usage of mobile services in different areas. Rural, Semi Urban and
urban area has become the same market. The entry of the service providers have
made the competition tough in the market and so the marketers must be aware of the
factors that effect the buying behavior of the consumers. We live in Society and so the
social factors effect our decisions that include Family, friends, Relatives, seniors,
Colleagues, role and status in the society. Cultural factors and marketing factors are
also considered while choosing the services of a service provider.

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