Importance of the Loyalty Schemes for the Business : Research Project
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Added on 2020-01-07
Importance of the Loyalty Schemes for the Business : Research Project
Added on 2020-01-07
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RESEARCH PROJECT1
Table of ContentsTASK 1 RESEARCH PROPOSAL.....................................................................................................31.1 Introduction............................................................................................................................31.2 Scope of the study..................................................................................................................31.3 Aim of research......................................................................................................................31.4 Objectives of the study..........................................................................................................41.5 Problem specification............................................................................................................41.6 Limitation of the study...........................................................................................................41.7 Research question..................................................................................................................41.8 Key benefits...........................................................................................................................41.9 Literature review....................................................................................................................51.10 Research methodology.........................................................................................................5TASK 2 RESEARCH PROJECT.........................................................................................................62.1 Effective utilization of resource to the research questions 5.................................................62.2 Undertaking the proposed research........................................................................................7TASK 3 RESEARCH PROJECT.........................................................................................................83.1 Evidence of recording and collecting data.............................................................................83.2 Interpretation and analysis of the results.............................................................................173.3 Evidence of evaluation of investigation...............................................................................203.4 Recommendation and justification for further consideration..............................................20CONCLUSION..................................................................................................................................20REFERENCES...................................................................................................................................212
TASK 1 RESEARCH PROPOSAL 1.1 Formulation of process In the present era, the business environment has become highly competitive and it ischanging at rapid speed. There is presence of several organizations that are competing for thesake of survival within such environment. The role of customer loyalty as well as rewardschemes has increased to a greater extent as such it offers long term success to the business. Thisis one that offers greater attraction to the target market. Reward schemes can be regarded asmajor source of motivation for the customers who would make purchase at the retail business.There is greater need for the business to make adoption of such marketing strategies in order topromote the customers to make utilization of the services. Through purchasing of such schemesthe customers is able to gain the right to get discount on the current purchase. Customer loyaltyand reward schemes are considered as the unique aspects that are offered by the firm for the sakeof increasing its customer base in an effective manner. In the proposed investigation theorganization that is being taken into account is Sainsbury and the specific area is Paternostersquare in London UK. As the firm is second largest chain of supermarket thus it needs to developunique strategies that can work for it in an effective manner. Scope of the studyThe selection of the present research topic has been done by making analysis of the scopeof the subject matter. It has been examined that scope of present investigation is wider. Thisimplies that carrying out investigation on the present topic would assist the researcher inattaining effective knowledge that will assist in future course of time. There is presence of lessnumber of investigation that are being carried out on the particular topic. This reflects thatcarrying out research on the particular topic will help the researcher in gaining deeper knowledgeabout the phenomenon. Moreover the study will help the retail business in knowing the outcomesthat can be attained through implementation of consumer loyalty and rewards schemes. Alongwith this working of this can also be known in an effective manner. The organization would beable to understand regarding the whether consumer loyalty and rewards schemes actually works.1.2 Factors contributeThe problem in the present research is to know whether customer loyalty and rewardschemes works or not. The firm is supermarket chain that aims at offering quality products to the3
target market. It is important for the business to attain knowledge regarding how it works so thatit is able to attract the target market in an effective manner. The loyalty of the customer dependson the kind of schemes that are being provided by the target market to the firm. This assist inincreasing the attractiveness of the target customers to a greater extent. 1.3 Key benefits The major benefits that would be attained from the present investigation are presented inthe manner as below:The researcher would attain the knowledge regarding the investigation To determine whether consumer loyalty and rewards schemes works for the retailbusiness To assess the significance of consumer loyalty and rewards schemes Limitation of the study There would be presence of greater limitation for the present investigation. It has beenassessed that as the investigation needs to be accomplished within specified duration of time thusthere is presence of certain aspect that are being missed out. This demonstrates that time isregarded as the main constraint because of which size of sample has been restricted within 100.Another major limitation of the investigation is towards translating the questions within theregional language that can take away certain meaning of what is meant by the respondents. 1.4 (Specification) Aim of researchThe aim of the present study is: To assess whether consumer loyalty and rewardsschemes actually works: A case of Sainsbury Paternoster square. Objectives of the studyThe Objectives of the present report are enumerated in the manner as under:To explore the concept of consumer loyalty and rewards schemesTo assess the significance of consumer loyalty and rewards schemesTo determine whether consumer loyalty and rewards schemes works for the retailbusiness To recommend the options that can be used for attracting the target market Research question What is the concept of consumer loyalty and rewards schemes?How significant is consumer loyalty and rewards schemes?4
Do think whether consumer loyalty and rewards schemes works for the retail business ?What can be the alternative options that can be used for attracting the target market?1.5 Literature reviewThere is greater importance of customer loyalty and reward scheme for the target market.Such is considered as the kind of discount that is being offered to the customers so that they areable to develop loyalty for the firm. Along with this it has importance in attracting the targetmarket to a greater extent. In the present time as there is greater competition thus it is importantfor the firm to come up with something new that can increase the attractiveness. This assist thebusiness in increasing the base of the customer which results in increasing the sales andprofitability of the business to a greater extent. In accordance with the views of Yoshida, M. and James, J.D., (2010) it has beenexamined that customer loyalty and reward scheme works for the customers who are loyal andmake repeat purchases of the organizational product. Along with this such unique aspect assistthe business in getting an edge over the competitors as well. When the customers are providedwith new scheme they feel encouraged to buy the product. In addition to this it has been assessedthat such is regarded as strategy of marketing that increase awareness among the customers topurchase the products and services. As per the views of Flint, Blocker and Boutin, (2011) thishas been determined that customers `needs are accomplished when they are offered withschemes which build confidence among them in relation with organization. Research methodologyThere is existence of several tools related with research methodology that are beingutilized in order to conduct the research on specific topic that is whether consumer loyalty andrewards schemes actually works. The in depth description in relation to all the research methodsutilized are as such. There is presence of several types of research design. In the present studydescriptive research design would be employed as such it assists in detail description regardingthe chosen topic. In addition to this the research type of the present thesis is qualitative. Here theresearcher is involved in assessing the behavior of the customers towards execution of thecustomer loyalty as well as reward scheme. Thus such type of investigation is appropriate. Thecollection of the data in the present investigation is done through both primary and secondarysources. This helps in collecting adequate amount of information which can help in gaining5
suitable results. It has been determined that in the present investigation analysis of the datawould be carried out through qualitative technique. Under this thematic method would beemployed where on the basis of responses patterns are developed. The sampling that would beselected is simple random and 50 respondents will be selected as respondents that includescustomer of Sainsbury. TASK 2 RESEARCH PROJECT 2.1 Effective utilization of resource to the research questions 5Concept of customer loyalty and reward schemesAs per the view of Yuksel, A., Yuksel, F. and Bilim, Y., (2010) customer loyalty can increase ifcorporation offers attractive rewards to them. Customer behavior is so sensitive and they aremost attract toward such product and services which is available in the offers, discount price,schemes etc. Customer loyalty refers the process under which customer choose to consistentlypurchase the same brand of product and services again and again. Customer loyalty can assist tobusiness in gaining effective success and profitability because if customer repeatedly purchasethe product and services then company's profitability and sales can also increase. As per the viewof Flint, Blocker and Boutin, (2011) reward system for customer is that gifts which offered bycompany in order to attract them toward the organization. It is the best option which helps toattract the customer for purchasing the product and services from particular organization. Thus, itcan be said that customer loyalty and reward system has direct relationship as if company offersreward schemes to customer then their customer loyalty can automatically increase. Customerloyalty assist firm in developing effective brand image in the market and gain large market share.Importance of consumer loyalty and reward system in the retail businessAs per the view of Flint, Blocker and Boutin, (2011) in the retail businesses, attractive schemesfor customer is the best option through which company can attract the large number of customer.In the present era, customer are mostly attracted toward effective rewards such as gift vouchers,discount prices, festival schemes, discount sales etc. These all option of reward can verybeneficial for the retail business through which it can develop customer loyalty. Retail businessshould offer attractive offers and reward schemes to customer so as they can repeatedly purchasethe product and services from the particular retail organization. As per the view of Yoshida and6
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