Customer Relationship Management and Loyalty

The assignment analyzes the concepts of customer relationship management (CRM) and its influence on customer satisfaction and loyalty. It delves into various aspects like data collection methods, research scope, and potential limitations. The document also highlights future research directions, emphasizing the need to investigate psychographic traits, leadership styles, and system integration within CRM strategies.

Running head: BUSINESS RESEARCH METHODOLOGY
Business research methodology
Name of student
Name of University
Author note

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BUSINESS RESEARCH METHODOLOGY
Table of Contents
Brief summary.................................................................................................................................3
Discussion of common themes........................................................................................................3
Discussion of different themes in the various articles.....................................................................5
Discussion of certain limitations during the research study............................................................5
Discussion of directions for conducting future research.................................................................7
References........................................................................................................................................8

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Brief summary
The business research is done to focus on the impacts that have been brought due to the
introduction of loyalty cards on the level of satisfaction among the customers. It is a kind of
loyalty program or scheme that acts as an important marketing strategy for influencing the
buying behaviors of consumers and keeps them satisfied too. The loyalty cards are introduced to
provide customers a better shopping experience and at the same time, provide them with
additional benefits of shopping, rewards and points for every purchase that they have made. The
satisfaction of customers is obtained when their needs and requirements are fulfilled and they are
provided with enough benefits, rewards, discounts and other offers on products and services
delivered by the companies. Magatef and Tomalieh (2015) stated that in spite of the various
benefits of using loyalty cards, very few individuals have taken the membership due to lack of
relevance in rewards, ineffective structure of rewards and lack of effective customers’ services.
Market data and information along with customer information are collected and then loyalty card
programs are introduced to respond to the sales and ensure influencing the customers to make
purchases consistently. The advantages and disadvantages of using loyalty cards would be
illustrated here along with its probable impacts on the satisfaction of consumers.
Discussion of common themes
The loyalty cards make shopping more convenient and easy for the customers because
they could not only get additional benefits such as various offers, rewards, etc. but could also
easily make the next purchases with less costs. The loyalty cards are present at various levels
including the platinum, gold and silver tiers. The information about customers are obtained and
a customer profile is created to understand the needs and requirements of customers. According

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to Long et al. (2013), the customer loyalty is the behavior and attitude of customers due to which
they prefer one brand over another and it is the responsibility of the brand to make sure that
proper CMR strategies are followed to influence their buying behaviours are influenced. The
loyalty card schemes could allow them to gain reward points and discounts, which could be used
while making the next purchase. They would be able to buy the products at lower prices with the
help of those points and even get some additional rewards with every purchases they would
made. According to Magatef and Tomalieh (2015), retail loyalty programs and cards could even
provide rebates, points, discounts and other rewards that could strengthen the customer
relationship as well as ensure customer loyalty, thereby making them visit the store to make
purchases consistently.
Mimouni-Chaabane and Volle (2010) stated that customer loyalty can result in various
benefits such as increased sales of products and services, more customers and generation of more
revenue in business. To make this successful, the loyalty cards are introduced for provide the
customers a better shopping experience and even gain some benefits and rewards that can be
utilized while making the next purchase. According to Magatef and Tomalieh (2015), loyalty
card and loyalty programs have created more possibilities for increasing the numbers of
customers and ensured that they do not feel hesitated while making purchases from the
organisation. Based on the responses of Uncles, Dowling and Hammond (2003), a loyalty card
program creates a sense of trust and loyalty among the customers and increases the awareness
among the customers regarding the products and services delivered as they will be able to get
certain benefits with each purchases made. It would be easy for the company to reach more
customers and create a wider customer base, furthermore gain enhanced levels of profit.

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Discussion of different themes in the various articles
According to Magatef and Tomalieh (2015), to develop customer loyalty and create
satisfaction among them, it is important to implement several loyalty programs such as providing
them with reward points while making purchases, additional discounts and offers on purchase
over a particular amount. Long et al. (2013) emphasized on the research related to the
management of relationships with customers through providing of loyalty card program. It was
also stated that perceived benefits of the loyalty card programs could be the value obtained by
customers along with the benefits that the customers would be able gain through formation of
membership and by receiving rewards and points. The advantages of participating in loyalty
programs could be categorized into economic, psychological and sociological benefits. Based on
the responses of the researchers, it is quite clear that the purchase volumes have increased and
even the incentives and benefits are lost mostly while exiting from the membership of the loyalty
card. Mimouni-Chaabane and Volle (2010) stated that there had been certain privacy concerns
and excessive spam and contacts, which might even deteriorate the management of proper
transactions made by the consumers. The authors also conducted detailed researches and
criticized the fact that loyalty card programs could save some amount of money though it is not
worth the problems that might be faced while providing personal information before making
membership. The information could be sent to third parties and this could hinder the
authentication process too. Information about the customers could be tracked even and send
through personalized coupons that might be not be worth the benefits and rewards provided by
the loyalty card programs, based on the responses provided by Uncles, Dowling and Hammond
(2003).

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Discussion of certain limitations during the research study
According to Uncles, Hammond and Dowling (2003), the customer loyalty presents a
paradox and many individuals see it as an attitude based phenomenon, which can be influenced
by the customer relationship management (CRM). Initiatives such as popular loyalty and affinity
are the main influencers of the loyalty bonus and customer satisfaction. However, Uncles,
Hammond and Dowling (2003) states that the empirical research demonstrates that loyalty which
is exhibited by repeated purchases is more shaped by the passively accepted brands than the
strongly held attitudes regarding them, which in turn is a considerable liability and limitation. So
based on the perspectives of Uncles, Hammond and Dowling (2003), the main limitations can be
considered by the fact that loyalty can be perceived from three different frameworks, which are
customer brand commitment, customer brand acceptance and customer brand buying behavior.
Nonetheless, Uncles, Hammond and Dowling (2003) further states that the researches also have
certain limitations while gathering data, through any research surveys, since these factors
controls the research processes, which can be mentioned as.
 Formulation of the research aims and the objectives of the study refer to the broad
detailing about the purpose of the research, which in turn needs to be well defined and
precise. If not then the purpose of the research can be nullified
 The Choice of the data collection method, refers to collection of data to help gather
information and amply the depth of the analysis. However, this method is interrelated
with the research objectives and the aims, failure to which, the data gathering is either
failed or inadequate to direct the research to a definite result

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 Implementation of data collection methods is another liability due to the fact that
inadequate knowledge about the data collection method and proper selection of the same
is fundamental in the determination of the success and failure of the research study
 Scope of discussion is another liability since the extensive nature of the research can
compromise with the main scope of the research. The large extent of the conducted
research can tamper or lead to the irrelevancy of the main topic or objectives of the
research and the data gathered
So based on these factors, Uncles, Hammond and Dowling (2003) concludes that every
research has these limitations, which needs to be taken into account while conducting any
research study.
Discussion of directions for conducting future research
According to Long et al. (2013) states that the outcomes of every conducted research
provides new insights for the scholars as well as imparts newer research directions, which in turn
helps understand the progress and advancement of developments in the relationships. Long et al.
(2013) further elaborates that specific research direction includes the identification of
psychographic and personality traits, which in turn lays impact on the relationship management
and can be used to identify the customers having higher propensity to form a stronger bond.
Long et al. (2013) also argues that customer relationship management along with loyalty
bonus and customer satisfaction is one of the complex and holistic concepts, due to the fact, that
it requires a lot of understanding and designing of the appropriate business process along with
the integrated systems. Long et al. (2013) further more suggests that researches should be
conducted in such a manner, that it can demonstrate the relevance of the need for effective

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systems integration, leadership, information sourcing, target and positioning within the customer
relationship managerial strategies, whatsoever is desirable. Long et al. (2013) concludes that the
future researches on loyal bonus and customer satisfaction should take the facts into
consideration that customer relationship is one of the prime elements, which determines the two
parameters and it should be done by understanding the behaviors of the employees, the quality of
the services, the relationship developments and the interaction management.

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References
Long, C.S., Khalafinezhad, R., Ismail, W.K.W. and Rasid, S.Z.A., 2013. Impact of CRM factors
on customer satisfaction and loyalty. Asian Social Science, 9(10), p.247.
Magatef, S.G. and Tomalieh, E.F., 2015. The impact of customer loyalty programs on customer
retention. International Journal of Business and Social Science, 6(8), pp.78-93.
Mimouni-Chaabane, A. and Volle, P., 2010. Perceived benefits of loyalty programs: Scale
development and implications for relational strategies. Journal of Business Research, 63(1),
pp.32-37.
Uncles, M.D., Dowling, G.R. and Hammond, K., 2003. Customer loyalty and customer loyalty
programs. Journal of consumer marketing, 20(4), pp.294-316.