Astro Consumer Behavior Essay Example
Astro Consumer Behavior Essay Example

Astro Consumer Behavior Essay Example

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  • Pages: 10 (2621 words)
  • Published: September 1, 2016
  • Type: Case Study
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1.0 Introduction
1.1Company Background
Astro Malaysia Holdings SdnBhd (ASTRO) is the dominant cross-media group in Malaysia, operating in four main areas: direct-to-home (DTH), satellite Pay TV, Radio, Content, and Digital. They provide a diverse range of channels that offer up-to-date entertainment, news, and sports information. Established in 1996 as a subsidiary of Astro All Asia Networks plc, MEASAT Broadcast Network Systems serves as the exclusive satellite television operator in Malaysia.

Today, ASTRO has reached a significant milestone by serving 3 million customers. Currently, Astro offers over 153 channels in four major languages (Malay, Chinese, Indian & English). Among these channels, approximately 19 are available in High-Definition (HD), and there are 19 digital radio channels on the DTH platform. Additionally, Astro provides various other services including IPTV, HD, PVR, VOD, Broadband,

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and Voice services. Astro was awarded the prestigious "Brand of the Year" at Malaysia's Putra Brand Awards 2012 for its commitment to innovation, quality and strong corporate social responsibilities (Astro, 2013).

1.2 Analysis of Products and Services

ASTRO launched the first HD broadcast in Malaysia in December 2009 with the name AstroB.yond. In addition to HD, they introduced Personal Video Record (PVR) in June 2010 and Internet Protocol Television (IPTV) in April 2011. AstroB.yond is an innovative service that includes High-Definition Television (HDTV), which offers sharper and more vibrant colors, as well as true-to-life images with cinematic surround sound and 16 additional HR channels. With Personal Video Recorder (PVR), users can record their favorite shows and create a personal TV library.

It has the capacity to simultaneously record up to two channels. The PVR hard disk

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with a storage capacity of 500GB, can store up to 300 hours of recording. Internet Protocol Television (IPTV) provides a wide range of ASTRO channels in HD, along with PVR and VOD services, delivered through TIME's 100% fibre broadband. This broadband offers the fastest internet speed in Malaysia (up to 30Mbps with unlimited download) and includes wireless telephony capabilities. AstroB.yond IPTV customers will have an exceptional TV viewing experience thanks to its advanced 'tri-brid' box, which operates in DTH satellite, pure IPTV, and DTH-IPTV hybrid modes.

2.0 Brand Loyalty According to the Malaysia department of statistics, the population of Malaysia was 28.250 million in 2010, with 6.2 million households. Nation Master (2006) states that 88.91% of households in Malaysia have a television at home. Additionally, Astro Annual Report 2010 shows that household penetration is already at 49% for Malaysian TV households, with urban and rural areas having penetration rates of 61% and 27% respectively. These statistics indicate that there is still significant potential and opportunity for Astro services in the television market.

The recorded services are classified under section 2.1.

According to Regus, workers in Malaysia have a daily working time of over 11 hours, which is 15% higher than the global average of 10%. The Business Times (2011) reports that nearly half of Malaysian workers (47%) bring work home more than three times per week. Consequently, there is increased work pressure due to long hours and heavy workloads. Furthermore, the workforce expresses a strong desire for recording services to save their favorite TV shows and watch them later when they are unable to catch them during their original airing.

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ability to replay TV programs anytime provides flexibility for individuals to enjoy TV with their families and relax from work pressure. Research shows that Malaysians prefer spending their leisure time watching TV rather than listening to the radio or reading the newspaper. For example, children enjoy watching cartoons or animations, fathers prefer sport or discovery channels, and mothers like to watch dramas during their free time. This trend continues within Malaysian households.

The convergence and development of content, channels, platforms, and devices in Malaysia are leading to an increase in the popularity of High Definition Television (HD TV). Consumers are shifting their preference from regular TV channels to HD TV due to the significantly clearer audio-visual experience it provides (Malaysian Communication & Multimedia Industry 2008). This shift is timely as there is a growing demand for HD content in the market (Businesstoday, 2010). In fact, according to an industry report, 59% of the TV sets sold in Malaysia in 2009 were already HD-ready.

On weekends or holidays, numerous families opt to stay at home and bond. They find pleasure in watching movies on HDTV channels as it offers superior visuals, vivid colors, immersive surround sound, and a larger screen. This enables them to have a comparable experience to that of visiting the cinema. As per research by Businesstoday (2010), the prices of HDTV units have considerably declined over time. At present, an HD-ready TV can be bought at a price similar to what color TVs cost when they were initially introduced in Malaysia.

2.3 Consumer's variety of channel selection

Astro offers a diverse range of channels in Malay, Chinese, Indian,

and English languages. They have approximately 19 high-definition channels and also provide 19 digital radio channels through the DTH platform. Besides television, Astro provides additional services such as IPTV, HD, PVR, VOD, Broadband, and Voice services. Their goal is to expand their services into new areas by implementing effective marketing strategies. One way they attract more subscribers is by developing various channels like Astro on Demand. This premium service allows customers to access the latest Hong Kong drama series by subscribing to full drama series packages. Subscribers who choose the Astro on Demand Package receive a discounted subscription fee of RM34.95 per month.

For a fixed fee, we provide access to all the latest Hong Kong movies released in a month. Additionally, Astro on Demand will air consecutive episodes to ensure none are missed. This is especially advantageous for those with hectic and unpredictable work schedules as they can easily catch up on any episodes they may have missed. Moreover, this arrangement corresponds to the idea of round-the-clock television programming.

2.4 A promotion package that is visually appealing

To attract customers, offering specials, sales, packages, or buy one get one at half off or for free can be effective. Astro stands out by providing lower prices and more services and deals. For example, the new Astro Dynasty HD package costs only RM99.95 and includes a complimentary one-month subscription to Astro on Demand as well as one month of Sports Channel and HD Service. Subscribers also receive a free Astro First Movie along with an Astro Best Movie. Furthermore, Astro offers installation and Autodebit rebates. In addition to that, they have seamlessly integrated

their On-The-Go app with smartphones and tablets so that customers can enjoy the full Astro experience anytime and anywhere. This service is available to everyone and allows users to watch live sports events, exciting happenings, favorite movies, dramas, and much more.

3.0 In the future, there will be threats to Astro. 3.1 One of these threats is the decline in the number of supporters and users who need Astro. This is because almost everyone nowadays knows how to use the Internet, which allows them to easily access and download their favorite movies, dramas, sports channels, news, music, and more online. They also have the option to watch these programs online without any advertisements or can skip commercials if they do appear. Additionally, people sometimes have access to the latest movies or dramas even before Astro shows them. The scheduled airing of programs may also lead to users losing interest over time. Although there is a recording service available for users to select their favorite shows after they have aired, an additional fee of RM10 is required for this service. However, most people in Malaysia prefer downloading movies or dramas from the Internet instead.

The production cost increases.

The introduction of Astro On Demand has created a growing demand for a wider range of television programs. However, even with top-quality options available, people still have an insatiable desire for new content. In order to meet this demand, Astro plans to introduce more programs and channels. Unfortunately, this will result in increased production costs. As a result, individuals who want more programming on Astro will need to pay additional fees. Many people are unwilling

to pay extra and would rather miss out on these new and captivating programs. Despite having a limited number of subscribers, Astro still incurs production costs for the new channels. Consequently, Astro will face financial losses.

3.3 The increasing popularity of smartphones, laptops, and tablets like the iPad allows people to access various applications for watching movies, entertainment videos, and other programs without relying on Astro. This eliminates issues such as a blank screen during rainy days that frustrate customers and waste their paid viewing time. As a result, customers may feel they are not getting their money's worth from Astro and become less dependent on its services. This could potentially lead to customer loss for Astro in the future.
3.4 Additionally, there is a new competitor entering the market.

The user of Astro often encounters difficulties watching their shows on rainy days due to signal disruptions. This is because Astro uses satellite technology to transmit the programs to its users. On the other hand, Astro faces competition from ABN (Asian Broadcast Network), which is similar to traditional analog cable TV. Upon its launch, ABN offered 50-60 channels and a lower price compared to Astro. Unlike Astro, ABN uses fiber optics cable to receive signals, ensuring uninterrupted service even during rainy weather.

The fastest method for data transfer and reception at present is fiber optics cable, with no better alternative available. ABN can be accessed through an Internet connection, whether it's at home or elsewhere. So far, ABN has provided over 200 channels to meet customer demands. Although Astro doesn't currently consider ABN a significant competitor, ABN could improve their offerings in the

future by introducing more captivating programs and services for their customers.

4.0 Cultural Issues 4.1 The concerns regarding Sensual Gratification and Religious Censorship are increasing in Malaysia as the nation aims to modernize its knowledge-based economy. Malaysia is renowned for its stringent regulations on media censorship, resulting in the prohibition of approximately one hundred movies over the past decade under the guise of safeguarding moral values. This can largely be attributed to the conservative nature of Malaysian society, where Muslims constitute 60% of the population. Consequently, all television shows and films must adhere strictly to Muslim standards.

Therefore, numerous movies with inappropriate scenes are banned due to religious laws. This restriction applies not only to the conservative Muslim culture but also to other ethnic groups who uphold similar values. It is crucial to consider the acceptance of different cultures and their religious influences, especially in communities where religion plays a significant role. Consequently, many advertisements for ASTRO are subject to restrictions based on religious beliefs. For instance, displaying ads featuring intimacy is prohibited, and the promotion of alcohol or cigarettes is banned in Malaysia while being openly advertised in European countries.

The aspect of Risk Taking/ Security and Competitive is 4.2.

The absence of risk-taking and preference for stability in Malaysia hampers the growth of entrepreneurs necessary for economic progress. As a result, ASTRO remains the only satellite TV provider in Malaysia, creating a monopolized market without any immediate rivals. This lack of competition leads to a stagnant market and no enhancements in the services offered.

The topic of diversity in section 4.3 can be expressed as "Diversity."

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In Malaysia, the diversity in ethnicity, culture, and religious beliefs is highly valued. The population shows tolerance towards different backgrounds and political viewpoints. It is important to be careful when choosing television programs for ASTRO, especially those concerning religion or politics. We must take precautions to prevent disrespectful or racist remarks on TV as they can spark conflicts between ethnic groups. Despite having a variety of local shows available, Malaysians tend to prefer foreign movies and dramas, resulting in less support for domestic productions.

5.0 Likes and Dislikes about Astro

Astro's services to its customers have both advantages and disadvantages. On the positive side, customers can customize their services according to their preferences. They can choose specific channels such as cartoon channels for households with kids, fashion and music channels for teenagers, or movie channels for adults. This ensures that customers only pay for what they want and avoid spending money on unnecessary channels. Additionally, Astro provides a 24-hour helpline for customer support.

Astro is known for their strong dedication to promptly addressing customer complaints and problems, demonstrating exceptional commitment in their after-sales service. They continuously work to entertain customers around the clock. Astro offers a wide range of movies, from classic black and white films to the latest blockbusters. They also provide satellite transmission of live broadcasts for real-time access to global events. Ultimately, Astro is celebrated as one of the most affordable services in Malaysia.

5.2 Things That Are Not Liked

Astro on Demand occasionally airs old dramas, which disappoints subscribers who pay extra for this channel. It is unfair and considered cheating, as subscribers expect access

to the latest Hong Kong TVB movies for the additional fee. Such actions tarnish Astro's reputation and elicit dissatisfaction from customers, thereby contributing to our dislike of the company.

We have two main reasons for disliking Astro. Firstly, it is a monopoly, and other TV providers like Mega TV have failed in their attempts to compete. This lack of competition means that there is less incentive for Astro to improve their services. Secondly, Astro has poor customer service. Our friend has called them multiple times regarding not receiving monthly bills, but each customer service agent promises to send the bill without actually doing so. After months of waiting, she suddenly received a message asking for payment of the overdue amount. Despite her complaints and even speaking to a manager, Astro does not take the issue seriously. Without receiving bills from Astro, how are customers supposed to make payments?

6.0 Recommendation
The report provides several suggestions for enhancing sales and profit at Astro organization, the Malaysian DBS Pay TV service that broadcasts digital satellite television and radio to households in Malaysia & Brunei. Astro stands for All-Asian Satellite Television and Radio Operator.
One recommendation is to capitalize on attention perception. Attention happens when a stimulus activates sensory receptor nerves and the brain processes the resulting sensations. In this case, it is advised to focus on the stimulus factor for attention, which pertains to the physical characteristics of the stimulus itself.

To attract potential customers, the size and visibility of advertisements are crucial. For example, Astro company can choose a larger street banner to increase the chances of grabbing customers' attention. If customers express interest in

an Astro program, they can contact using the provided phone number. Additionally, intensity can be an effective strategy for boosting sales. By maximizing loudness, brightness, and length of the stimulus, consumer attention can be heightened. For instance, Astro Company can use a full-screen advertisement on the internet to obstruct the user's view and provide information about ongoing promotions and member registration for discounted offers.

Even though it may be intrusive, high intrusiveness can effectively capture attention. Another method to decrease the rate of attention while increasing recall is through repetition. Astro Company incorporates singing their phone number in their advertisements, making it easier for customers to remember and contact them when needed. Additionally, motivation plays a crucial role by acting as a recommendation and influencing behavior by addressing individuals' reasons for engaging in certain actions.

The nature of motivation emphasizes the utilitarian need, highlighting that consumers are problem solvers who view situations as chances to gain useful information or new skills. For example, while watching a comedy on television, a consumer not only seeks entertainment but also learns about clothing styles for the drama. Astro company can take advantage of this by advertising more about their fashionable channel on other programs. This can motivate non-Astro members to sign up for Astro and gain access to the fashion channel and drama that they have been motivated to watch.

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