Sainsbury's Customer Loyalty Analysis
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This assignment requires a comprehensive analysis of customer satisfaction and loyalty towards Sainsbury's Nectar card scheme. Students will examine the effectiveness of the loyalty program, considering factors like monetary benefits, product quality, and overall shopping experience. They are also expected to explore how the program influences purchasing behavior and recommend potential improvements to enhance customer loyalty.
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Analyze relationship between loyalty card schemes and customer loyalty -
Case study of Sainsbury's.
1
Case study of Sainsbury's.
1
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ACKNOWLEDGEMENT
I would like to thank my mentor for the bottom of my heart as they have provided me
good knowledge and effective support for conducting study in an appropriate manner. I would
like to express my gratitude to friends, colleagues as well as family members who have guided
me at every step of thesis. Through their support I was able to accomplish my dissertation in the
best possible manner. In the series I would also like to state special thanks to my team members
who have assisted in collecting data and in analyzing it further.
I would like to thank my mentor for the bottom of my heart as they have provided me
good knowledge and effective support for conducting study in an appropriate manner. I would
like to express my gratitude to friends, colleagues as well as family members who have guided
me at every step of thesis. Through their support I was able to accomplish my dissertation in the
best possible manner. In the series I would also like to state special thanks to my team members
who have assisted in collecting data and in analyzing it further.
ABSTRACT
Customer loyalty is the level which business organization has achieved success in
retaining customers for the long run. It reflects the positive experience of the customer towards
the product or services. For this dissertation Sainsbury is selected which is the British
multinational supermarket of UK. The main objective behind this study is to analyze the
relationship between the loyalty card schemes and customer loyalty. In the present study,
inductive approach and interpretivism philosophy has been used by the scholar. For assessing the
relationship between card scheme and customer loyalty survey has been conducted by the
scholar on 40 customers of Sainsbury. From the primary data analysis it has been assessed that
customer loyalty plays a vital role in the growth and expansion of retail sector. Further, from this
dissertation it can be summarized that loyalty card scheme of Salisbury has high level of impact
on customer loyalty.
i
3
Customer loyalty is the level which business organization has achieved success in
retaining customers for the long run. It reflects the positive experience of the customer towards
the product or services. For this dissertation Sainsbury is selected which is the British
multinational supermarket of UK. The main objective behind this study is to analyze the
relationship between the loyalty card schemes and customer loyalty. In the present study,
inductive approach and interpretivism philosophy has been used by the scholar. For assessing the
relationship between card scheme and customer loyalty survey has been conducted by the
scholar on 40 customers of Sainsbury. From the primary data analysis it has been assessed that
customer loyalty plays a vital role in the growth and expansion of retail sector. Further, from this
dissertation it can be summarized that loyalty card scheme of Salisbury has high level of impact
on customer loyalty.
i
3
Table of Contents
CHAPTER 1: INTRODUCTION ...................................................................................................3
1.1 Background of the study ......................................................................................................3
1.2 Rationale of the study ...........................................................................................................3
1.3 Aims and objectives of the research .....................................................................................4
1.4 Research questions ...............................................................................................................4
1.5 Significance and scope of the study .....................................................................................4
1.6 Structure of dissertation .......................................................................................................5
CHApter 2: Literature review .........................................................................................................7
Theme 1: What is customer loyalty ............................................................................................7
Theme 2: Significance of customer loyalty in retail sector ........................................................7
Theme 3: Relationship between loyalty card scheme and customer loyalty ..............................9
CHApter 3: research methodology................................................................................................12
Research Type...........................................................................................................................12
Research Approach ...................................................................................................................12
Research Philosophy ................................................................................................................13
Research Design .......................................................................................................................13
CHApter 4: data analysis and findings..........................................................................................16
CHApter 5: conclusion and recommendations..............................................................................22
RECOMMENDATIONS...............................................................................................................24
References......................................................................................................................................25
APPENDIX....................................................................................................................................28
4
CHAPTER 1: INTRODUCTION ...................................................................................................3
1.1 Background of the study ......................................................................................................3
1.2 Rationale of the study ...........................................................................................................3
1.3 Aims and objectives of the research .....................................................................................4
1.4 Research questions ...............................................................................................................4
1.5 Significance and scope of the study .....................................................................................4
1.6 Structure of dissertation .......................................................................................................5
CHApter 2: Literature review .........................................................................................................7
Theme 1: What is customer loyalty ............................................................................................7
Theme 2: Significance of customer loyalty in retail sector ........................................................7
Theme 3: Relationship between loyalty card scheme and customer loyalty ..............................9
CHApter 3: research methodology................................................................................................12
Research Type...........................................................................................................................12
Research Approach ...................................................................................................................12
Research Philosophy ................................................................................................................13
Research Design .......................................................................................................................13
CHApter 4: data analysis and findings..........................................................................................16
CHApter 5: conclusion and recommendations..............................................................................22
RECOMMENDATIONS...............................................................................................................24
References......................................................................................................................................25
APPENDIX....................................................................................................................................28
4
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CHAPTER 1: INTRODUCTION
1.1 Background of the study
Customers are the king of market and they have power to affect the growth and
development of the firm to the great level. In retail industry customers satisfaction and loyalty is
the key of success. Now, fierce comparison take place in the retail sector. In order to cope up
with this situation retail companies are starting to make focus on introducing the most profitable
schemes to the customers (Andy, 2005). Such schemes allow firm to perform in the market in an
efficient manner. Nevertheless, companies are facing difficulty in assessing the suitable scheme
which helps them in raising customers loyalty. In order to attain success in the highly
competitive business environment it is required for the firm to make selection of suitable
schemes and loyalty factors. This dissertation is based on Sainsbury which is the British
multinational retailer of UK. Sainsbury makes use of wide range of loyalty schemes to satisfy the
needs of target market in an efficient manner. The present research will describe the ways and
types of schemes which retail business organization can use of to build and raise loyalty among
the customers.
1.2 Rationale of the study
What is the research issue?
In the modern time, firms who are operating in the retail sector facing high level of the
competition. In this, it is highly difficult for the retail firms including Sainsbury to survive in the
market. In this, business units needs to introduce the attractive schemes which helps them in
increasing customer loyalty. Thus, the association between the loyalty card schemes and
customer loyalty is recognized as an issue.
Why is it an issue?
Customer satisfaction and loyalty is one of the main aspects which have high level of
influence on the growth and success of the business organization (Butscher, 2002). Further,
competitors strategies and policies also affect the loyalty of customers to the large extent. Word
of mouth publicity is also affected when customer loyalty decreased. Hence, low level of
customer loyalty is the significant issue in the present time.
Why is it an issue now?
5
1.1 Background of the study
Customers are the king of market and they have power to affect the growth and
development of the firm to the great level. In retail industry customers satisfaction and loyalty is
the key of success. Now, fierce comparison take place in the retail sector. In order to cope up
with this situation retail companies are starting to make focus on introducing the most profitable
schemes to the customers (Andy, 2005). Such schemes allow firm to perform in the market in an
efficient manner. Nevertheless, companies are facing difficulty in assessing the suitable scheme
which helps them in raising customers loyalty. In order to attain success in the highly
competitive business environment it is required for the firm to make selection of suitable
schemes and loyalty factors. This dissertation is based on Sainsbury which is the British
multinational retailer of UK. Sainsbury makes use of wide range of loyalty schemes to satisfy the
needs of target market in an efficient manner. The present research will describe the ways and
types of schemes which retail business organization can use of to build and raise loyalty among
the customers.
1.2 Rationale of the study
What is the research issue?
In the modern time, firms who are operating in the retail sector facing high level of the
competition. In this, it is highly difficult for the retail firms including Sainsbury to survive in the
market. In this, business units needs to introduce the attractive schemes which helps them in
increasing customer loyalty. Thus, the association between the loyalty card schemes and
customer loyalty is recognized as an issue.
Why is it an issue?
Customer satisfaction and loyalty is one of the main aspects which have high level of
influence on the growth and success of the business organization (Butscher, 2002). Further,
competitors strategies and policies also affect the loyalty of customers to the large extent. Word
of mouth publicity is also affected when customer loyalty decreased. Hence, low level of
customer loyalty is the significant issue in the present time.
Why is it an issue now?
5
Now, business organization cannot build and sustain competitive edge over others if they
do not have loyal customers. In this, it is vital for the business organization to offer various or
appropriate schemes to the customers which provide high level of monetary benefits to the target
market (Flavian, Cristobal and Guinaliu, 2008). Therefore, company needs to make suitable
association between the loyalty card schemes and customers loyalty.
How and when it is going to be investigated?
In order to evaluate the research issue scholar will carry out the investigation to assess the
factors which are closely linked with the loyalty card schemes and customer loyalty. It enables
investigator to offer the suitable framework to Sainsbury and other firms of retail sector which
helps them in increasing the customer loyalty.
What could this research shed light on?
The present investigation will shed light on the level to which loyalty card schemes and
customer loyalty is linked with each other. Besides this, it will also present the aspects which
business units need to improve in their card schemes (Denzin and Lincoln, 2005). By this,
Sainsbury can raise the customer loyalty and thereby enhance their profitability aspects.
1.3 Aims and objectives of the research
The main aim of the present study will be “To analyze the relationship between loyalty
card scheme and customer loyalty: A study on Sainsbury UK. ”
Following will be the objectives for the present research
To determine the significance of customer loyalty in retail sector
To understand the link between loyalty card scheme and customer loyalty within
Sainsbury
To recommend the effective ways through which Sainsbury can build effective loyalty
scheme for enhancing customer loyalty
1.4 Research questions
In order to conduct study in the best possible manner researcher is required to frame
suitable questions which addresses the research aims and objectives. Research questions for the
present study are enumerated below:
How important is customer loyalty in the retail sector?
What is the link between loyalty card scheme and customer loyalty?
6
do not have loyal customers. In this, it is vital for the business organization to offer various or
appropriate schemes to the customers which provide high level of monetary benefits to the target
market (Flavian, Cristobal and Guinaliu, 2008). Therefore, company needs to make suitable
association between the loyalty card schemes and customers loyalty.
How and when it is going to be investigated?
In order to evaluate the research issue scholar will carry out the investigation to assess the
factors which are closely linked with the loyalty card schemes and customer loyalty. It enables
investigator to offer the suitable framework to Sainsbury and other firms of retail sector which
helps them in increasing the customer loyalty.
What could this research shed light on?
The present investigation will shed light on the level to which loyalty card schemes and
customer loyalty is linked with each other. Besides this, it will also present the aspects which
business units need to improve in their card schemes (Denzin and Lincoln, 2005). By this,
Sainsbury can raise the customer loyalty and thereby enhance their profitability aspects.
1.3 Aims and objectives of the research
The main aim of the present study will be “To analyze the relationship between loyalty
card scheme and customer loyalty: A study on Sainsbury UK. ”
Following will be the objectives for the present research
To determine the significance of customer loyalty in retail sector
To understand the link between loyalty card scheme and customer loyalty within
Sainsbury
To recommend the effective ways through which Sainsbury can build effective loyalty
scheme for enhancing customer loyalty
1.4 Research questions
In order to conduct study in the best possible manner researcher is required to frame
suitable questions which addresses the research aims and objectives. Research questions for the
present study are enumerated below:
How important is customer loyalty in the retail sector?
What is the link between loyalty card scheme and customer loyalty?
6
What are the ways through which Sainsbury can build effective loyalty scheme for
enhancing customer loyalty?
1.5 Significance and scope of the study
The present study and it outcome is highly significant for the academic and corporate
sector. At academic level students can use this study to develop their understanding about the
card scheme which are adopted Sainsbury or retail industry. Further, they can also use this study
to assess the level to which card scheme helps in enhancing the customer loyalty. Besides this,
the present study and its outcome will also assists other researchers who are going to conduct
investigation on similar topic. Along with it, the study which is being carried out by the
researcher also helps companies who are operating in retail sector. Findings and framework of
this study will assists business organization in making development in their card scheme.
Through this, retail firms are become able to enhance their customer loyalty to the significant
level. Moreover, productivity and profitability of the business organizations are highly
influenced by the customer loyalty.
In the present era, customers prefer to purchase the product or services from the store
who charges reasonable prices. Now, customers are highly price concious in nature which may
cause of high switching cost in the retail sector (Szwarc, 2005). In this, retailer can retain the
customers for long run when they offer attractive scheme and offers to them. Thus, this study
will provide information to the retail organization including Sainsbury about the extent to which
card scheme helps increasing the customer loyalty.
1.6 Structure of dissertation
Chapter 1: Introduction
In the first chapter of dissertation researcher sheds light on the topic of research. Further,
this, scholar sets the aims and objectives which help them in conducting the whole investigation
in an appropriate manner. Besides this, researcher also discusses the significance and scope of
the study in a brief manner.
Chapter 2: Literature review
Under this chapter, researcher will examine the secondary data sources such as books,
journals and research papers. This chapter of dissertation develop deeper understanding of the
researcher on the issue. Through this, researcher can assess the extent to which card scheme and
customer loyalty is highly associated with each other. Thus, by evaluating the viewpoints of the
7
enhancing customer loyalty?
1.5 Significance and scope of the study
The present study and it outcome is highly significant for the academic and corporate
sector. At academic level students can use this study to develop their understanding about the
card scheme which are adopted Sainsbury or retail industry. Further, they can also use this study
to assess the level to which card scheme helps in enhancing the customer loyalty. Besides this,
the present study and its outcome will also assists other researchers who are going to conduct
investigation on similar topic. Along with it, the study which is being carried out by the
researcher also helps companies who are operating in retail sector. Findings and framework of
this study will assists business organization in making development in their card scheme.
Through this, retail firms are become able to enhance their customer loyalty to the significant
level. Moreover, productivity and profitability of the business organizations are highly
influenced by the customer loyalty.
In the present era, customers prefer to purchase the product or services from the store
who charges reasonable prices. Now, customers are highly price concious in nature which may
cause of high switching cost in the retail sector (Szwarc, 2005). In this, retailer can retain the
customers for long run when they offer attractive scheme and offers to them. Thus, this study
will provide information to the retail organization including Sainsbury about the extent to which
card scheme helps increasing the customer loyalty.
1.6 Structure of dissertation
Chapter 1: Introduction
In the first chapter of dissertation researcher sheds light on the topic of research. Further,
this, scholar sets the aims and objectives which help them in conducting the whole investigation
in an appropriate manner. Besides this, researcher also discusses the significance and scope of
the study in a brief manner.
Chapter 2: Literature review
Under this chapter, researcher will examine the secondary data sources such as books,
journals and research papers. This chapter of dissertation develop deeper understanding of the
researcher on the issue. Through this, researcher can assess the extent to which card scheme and
customer loyalty is highly associated with each other. Thus, by evaluating the viewpoints of the
7
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different authors researcher is become able to present the fair outcome of the issue.
Chapter 3: Research methodology
In this section, scholar assesses the approach and philosophy of the research study.
Further, it also depicts the methods which researcher undertakes for the collection and analysis of
data. It is the most important chapter of the study which closely influence the outcome of issue.
Chapter 4: Data analysis
In this part of the dissertation researcher evaluates and analyze data by taking into
account the suitable technique. It is the main section of the study which clearly reflects the
solution of the research issue. This chapter offer suitable framework for the last section of the
dissertation.
Chapter 5: Conclusion and recommendations
In the 5 chapter, investigator concludes all the findings on the basis of data which is
analyzed by them in the previous chapter. Besides this, researcher also gives recommendation
about the several areas and aspect which business unit need to improve for attaining success in
the near future.
8
Chapter 3: Research methodology
In this section, scholar assesses the approach and philosophy of the research study.
Further, it also depicts the methods which researcher undertakes for the collection and analysis of
data. It is the most important chapter of the study which closely influence the outcome of issue.
Chapter 4: Data analysis
In this part of the dissertation researcher evaluates and analyze data by taking into
account the suitable technique. It is the main section of the study which clearly reflects the
solution of the research issue. This chapter offer suitable framework for the last section of the
dissertation.
Chapter 5: Conclusion and recommendations
In the 5 chapter, investigator concludes all the findings on the basis of data which is
analyzed by them in the previous chapter. Besides this, researcher also gives recommendation
about the several areas and aspect which business unit need to improve for attaining success in
the near future.
8
CHAPTER 2: LITERATURE REVIEW
Literature review is the most important part of dissertation in which researcher evaluates
the findings and other information of the several scholars. In this, researcher makes evaluation of
the books, journals, research papers and other secondary data sources. It develops deeper insight
among the researcher about the research issue. By making analysis of the various literatures
researcher is able to present the fair view or outcome of the study.
Theme 1: What is customer loyalty
Customer loyalty may be defined as a measure which helps business organization in
making assessment of the extent to which they have attained success in retaining customers for
the long run. According to the view points of Liu and et.al., (2011) customer loyalty is the
outcome of the positive emotional experience and satisfaction which is getting by the consumers
from products or services. When, customers make regular purchase of the particular brand or
product then it clearly reflects their loyalty. Moreover, when customers get positive experience
from the product then they are closely associated with the particular brand. Thus, repeat
purchase of the product or services clearly shows the loyalty of the customers towards the
product or services of particular brand. For instance: Customer make use of the food products of
Nestle for the time. In this,if customer gets positive outcome from the products then it make
repeat purchase of it. Moreover, when product meets the expectation level of the customers then
it develops high level of satisfaction among the customers which may turn into loyalty.
However, it is to be criticized by Hosseini and et.al., (2010) that by repeat purchase of the
product does not show high level of the customer loyalty. Moreover, it is not necessary that
customer make regular purchase of the products. People also shows their customer loyalty by
supporting and participating in the campaign of that particular product. Besides this, giving hit
like to the advertisement of product on social networking site also reflects the loyalty of the
customers towards the products or services. In addition to this, word of mouth publicity about the
product or services are one of the main indicators which shows customer loyalty to the large
extent.
Theme 2: Significance of customer loyalty in retail sector
Siddiqi (2011) said that customer loyalty is the tool which helps retail sector or
organizations in achieving competitive edge over others. In the present era, retail organizations
9
Literature review is the most important part of dissertation in which researcher evaluates
the findings and other information of the several scholars. In this, researcher makes evaluation of
the books, journals, research papers and other secondary data sources. It develops deeper insight
among the researcher about the research issue. By making analysis of the various literatures
researcher is able to present the fair view or outcome of the study.
Theme 1: What is customer loyalty
Customer loyalty may be defined as a measure which helps business organization in
making assessment of the extent to which they have attained success in retaining customers for
the long run. According to the view points of Liu and et.al., (2011) customer loyalty is the
outcome of the positive emotional experience and satisfaction which is getting by the consumers
from products or services. When, customers make regular purchase of the particular brand or
product then it clearly reflects their loyalty. Moreover, when customers get positive experience
from the product then they are closely associated with the particular brand. Thus, repeat
purchase of the product or services clearly shows the loyalty of the customers towards the
product or services of particular brand. For instance: Customer make use of the food products of
Nestle for the time. In this,if customer gets positive outcome from the products then it make
repeat purchase of it. Moreover, when product meets the expectation level of the customers then
it develops high level of satisfaction among the customers which may turn into loyalty.
However, it is to be criticized by Hosseini and et.al., (2010) that by repeat purchase of the
product does not show high level of the customer loyalty. Moreover, it is not necessary that
customer make regular purchase of the products. People also shows their customer loyalty by
supporting and participating in the campaign of that particular product. Besides this, giving hit
like to the advertisement of product on social networking site also reflects the loyalty of the
customers towards the products or services. In addition to this, word of mouth publicity about the
product or services are one of the main indicators which shows customer loyalty to the large
extent.
Theme 2: Significance of customer loyalty in retail sector
Siddiqi (2011) said that customer loyalty is the tool which helps retail sector or
organizations in achieving competitive edge over others. In the present era, retail organizations
9
are facing cut-throat competition. In this, all the companies make effort to develop loyalty among
the customers by taking into consideration the variety of tools and techniques such as discounts,
combo offers, membership cards etc. Moreover, it is required for the retail organization to frame
competent strategies and policies which helps them in retaining the customers for long run. In the
competitive business arena retail firm can enhance their sales and profit margin when they have
loyal customers. However, it is to be critically evaluated by Santouridis and et.al., (2010) that in
retail sector firm cannot easily get the loyalty of customers by offering discounts to them.
Satisfaction is the key which plays a vital role in the developing loyalty among the customer.
Now, it is highly difficult for the marketer to develop loyalty among the customers. Moreover,
retail organization can develop loyalty among the customers by offering when they exceeds the
expectations of the customers. Due to this, large number of the firms facing the problem of ;ow
level of customer loyalty.
As per the view points of Eid (2011) customer loyalty is highly significant in the retail
sector. Loyalty of the customers place direct and positive impact on the growth and profitability
aspect of retail sector. When customers are loyal towards the products or services of particular
brand then they share their experience with the family member, friends and other people of the
society. Moreover, now people spend their huge amount of time on social networking sites such
as Facebook, Twitter etc.
In the present time, individual share the images of product of brand which they like most.
Furthermore, thy also make comment on the image which attract the attention of their loved one.
For instance: Sam prefers to purchase the shoes of Nike whenever he takes decisions about the
shopping of footwear. Besides this, he also recommends his friend to make purchase shoes from
the Nike store who offers high quality of the products or services as compared to other brands.
In this, it may be recognized as a word of mouth publicity which is the result of loyalty of the
customers. Thus, loyalty of the clients towards the particular brand plays a vital role in enhancing
the customer base to the large extent.
Kheng and et.al., (2010) criticized that in the present era, needs, wants and expectations
of the customers are changed with the very high pace. In this, if company fails to offer the
products or services according to the demand of the customers then it negatively affects the
loyalty of customers. Further, lack of innovation in the products or services is one of the main
factors which closely influence the satisfaction and loyalty aspect of customers. Thus, if marketer
10
the customers by taking into consideration the variety of tools and techniques such as discounts,
combo offers, membership cards etc. Moreover, it is required for the retail organization to frame
competent strategies and policies which helps them in retaining the customers for long run. In the
competitive business arena retail firm can enhance their sales and profit margin when they have
loyal customers. However, it is to be critically evaluated by Santouridis and et.al., (2010) that in
retail sector firm cannot easily get the loyalty of customers by offering discounts to them.
Satisfaction is the key which plays a vital role in the developing loyalty among the customer.
Now, it is highly difficult for the marketer to develop loyalty among the customers. Moreover,
retail organization can develop loyalty among the customers by offering when they exceeds the
expectations of the customers. Due to this, large number of the firms facing the problem of ;ow
level of customer loyalty.
As per the view points of Eid (2011) customer loyalty is highly significant in the retail
sector. Loyalty of the customers place direct and positive impact on the growth and profitability
aspect of retail sector. When customers are loyal towards the products or services of particular
brand then they share their experience with the family member, friends and other people of the
society. Moreover, now people spend their huge amount of time on social networking sites such
as Facebook, Twitter etc.
In the present time, individual share the images of product of brand which they like most.
Furthermore, thy also make comment on the image which attract the attention of their loved one.
For instance: Sam prefers to purchase the shoes of Nike whenever he takes decisions about the
shopping of footwear. Besides this, he also recommends his friend to make purchase shoes from
the Nike store who offers high quality of the products or services as compared to other brands.
In this, it may be recognized as a word of mouth publicity which is the result of loyalty of the
customers. Thus, loyalty of the clients towards the particular brand plays a vital role in enhancing
the customer base to the large extent.
Kheng and et.al., (2010) criticized that in the present era, needs, wants and expectations
of the customers are changed with the very high pace. In this, if company fails to offer the
products or services according to the demand of the customers then it negatively affects the
loyalty of customers. Further, lack of innovation in the products or services is one of the main
factors which closely influence the satisfaction and loyalty aspect of customers. Thus, if marketer
10
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or retail business organization fails to comply with the all these loyalty factors then negatively
affects the gross productivity and profitability of firm.
Chen and et.al., (2010) said that client loyalty also helps retail business organization in
expanding their operations in an effectual manner. Moreover, when consumers are highly
satisfied and loyal towards the product or services then company is able to attain success by
entering in the new market. For instance: Now, Titan has started to offer sunglasses and
spectacles to its customer base which is highly different from its existing products namely watch.
Large number of customers make use of Titan watches and they are highly loyal towards this
brand. Thus, by taking into account this fact Titan has taken decision to enter into the new
sector. In this, Titan has attained success in the new market as well with the help of loyal
customers. On the basis of this aspect, it can be said that that customer loyalty plays a significant
role in the growth and development of retail sector.
Gómez and et.al., (2012) claimed that when clients are highly loyal towards the brand
then company needs to make very less expenses on the promotional plans and campaign. This in
turn helps business unit in maximize their profitability. Moreover, high association of the client
with the specific brand or product may result in to the more word of mouth publicity. It is less
expensive and the most effectual tool which assists in developing awareness among the wide
group of customers about the product or services which are offered by the specific brand or retail
organization. For instance: Individual is highly satisfied with the products or services of
Sainsbury and prefers to make shopping from this store whenever he wants retail products. In
this, individual also recommend others to take experience of the quality and cost effective
products which are offered by Sainsbury.
Besides this, when customer base of the retail sector increases then production also rises.
Thus, it offers opportunity to the business organization to get benefits of the high economies of
scale in this, customer loyalty offers benefit to the business unit in terms of high inflow and less
outflow. On the basis of all the above mentioned aspects it can be stated that customer loyalty ha
high level of influence on the growth and success of retail sector.
Theme 3: Relationship between loyalty card scheme and customer loyalty
Loyalty card may schemes may be defined as a technique which is employed by the retail
business organization to build up the loyalty among the customers. In this, business unit needs
offers high level of monetary benefits to the customers which evolves high level of satisfaction
11
affects the gross productivity and profitability of firm.
Chen and et.al., (2010) said that client loyalty also helps retail business organization in
expanding their operations in an effectual manner. Moreover, when consumers are highly
satisfied and loyal towards the product or services then company is able to attain success by
entering in the new market. For instance: Now, Titan has started to offer sunglasses and
spectacles to its customer base which is highly different from its existing products namely watch.
Large number of customers make use of Titan watches and they are highly loyal towards this
brand. Thus, by taking into account this fact Titan has taken decision to enter into the new
sector. In this, Titan has attained success in the new market as well with the help of loyal
customers. On the basis of this aspect, it can be said that that customer loyalty plays a significant
role in the growth and development of retail sector.
Gómez and et.al., (2012) claimed that when clients are highly loyal towards the brand
then company needs to make very less expenses on the promotional plans and campaign. This in
turn helps business unit in maximize their profitability. Moreover, high association of the client
with the specific brand or product may result in to the more word of mouth publicity. It is less
expensive and the most effectual tool which assists in developing awareness among the wide
group of customers about the product or services which are offered by the specific brand or retail
organization. For instance: Individual is highly satisfied with the products or services of
Sainsbury and prefers to make shopping from this store whenever he wants retail products. In
this, individual also recommend others to take experience of the quality and cost effective
products which are offered by Sainsbury.
Besides this, when customer base of the retail sector increases then production also rises.
Thus, it offers opportunity to the business organization to get benefits of the high economies of
scale in this, customer loyalty offers benefit to the business unit in terms of high inflow and less
outflow. On the basis of all the above mentioned aspects it can be stated that customer loyalty ha
high level of influence on the growth and success of retail sector.
Theme 3: Relationship between loyalty card scheme and customer loyalty
Loyalty card may schemes may be defined as a technique which is employed by the retail
business organization to build up the loyalty among the customers. In this, business unit needs
offers high level of monetary benefits to the customers which evolves high level of satisfaction
11
among the customers. According to the view points of Ozdenizci and et.al., (2010) loyalty card
schemes arr created by the several of organizations to reward the loyal customers and encourage
them to come back the store. In this system, organization gives point to the shopper according to
the purchase which is made by him.
Under this, the points which are collected by the the shopper helps them in getting
discounts at the time of the repeat purchase of the products or services. This is one of the main
factors which encourages individual to return back the store and make shopping from it. Loyalty
cards offer high level of benefits to both organization and customers. However, it is to be
critically evaluated by Hunter and et.al., (2013) that loyalty card schemes do not offer high level
of benefits to the people or consumers who makes shopping of the specific products from the the
specific store. For instance: customer visit the supermarket of Tesco for purchasing product such
as beverages. In this, loyalty card does not proves to be more beneficial for the firm.
Cedrola and et.al., (2010) served loyalty program as an incentive plan which allows retail
business organization to collect data about the customers. In this, retail business enterprise offers
discount, coupons and points etc. to the customers in relation to the merchandise which are
purchased by them. It may be served as a reward which is given to the customers by the business
unit for their voluntary participation Loyalty card is the plastic card that has a bar code and
magnetic strips on it. In this, such card is scanned at the time of point of sales. This card
identifies the customers and record the information about the items which are purchased by them
(Filip, 2011). This card provides deeper insight to the retailer or supermarket about the buying
habits of the customers. Besides this, it also renders information about the product which have
high level of influence on the decision making of the consumers. Thus, it helps in understand the
buying behavior of customers.
Tanford and et.al., (2012) criticized that there are large number of customers who are not
highly influenced by loyalty card schemes. Moreover, high level of competition take place in the
retail sector. In order to scope with this situation companies or supermarket offers continuous
discounts to the customers. Besides this, supermarkets also provide special and heavy discounts
to the customers on specific occasions. In this,customer prefers to make purchase of the product
from the store who gives heavy discount to the customers. Zichermann and et.al., (2010) stated
that card scheme provides high level of assistance in generating the loyalty among the customers.
Moreover, in this technique customer earns points by making shopping from the particular store.
12
schemes arr created by the several of organizations to reward the loyal customers and encourage
them to come back the store. In this system, organization gives point to the shopper according to
the purchase which is made by him.
Under this, the points which are collected by the the shopper helps them in getting
discounts at the time of the repeat purchase of the products or services. This is one of the main
factors which encourages individual to return back the store and make shopping from it. Loyalty
cards offer high level of benefits to both organization and customers. However, it is to be
critically evaluated by Hunter and et.al., (2013) that loyalty card schemes do not offer high level
of benefits to the people or consumers who makes shopping of the specific products from the the
specific store. For instance: customer visit the supermarket of Tesco for purchasing product such
as beverages. In this, loyalty card does not proves to be more beneficial for the firm.
Cedrola and et.al., (2010) served loyalty program as an incentive plan which allows retail
business organization to collect data about the customers. In this, retail business enterprise offers
discount, coupons and points etc. to the customers in relation to the merchandise which are
purchased by them. It may be served as a reward which is given to the customers by the business
unit for their voluntary participation Loyalty card is the plastic card that has a bar code and
magnetic strips on it. In this, such card is scanned at the time of point of sales. This card
identifies the customers and record the information about the items which are purchased by them
(Filip, 2011). This card provides deeper insight to the retailer or supermarket about the buying
habits of the customers. Besides this, it also renders information about the product which have
high level of influence on the decision making of the consumers. Thus, it helps in understand the
buying behavior of customers.
Tanford and et.al., (2012) criticized that there are large number of customers who are not
highly influenced by loyalty card schemes. Moreover, high level of competition take place in the
retail sector. In order to scope with this situation companies or supermarket offers continuous
discounts to the customers. Besides this, supermarkets also provide special and heavy discounts
to the customers on specific occasions. In this,customer prefers to make purchase of the product
from the store who gives heavy discount to the customers. Zichermann and et.al., (2010) stated
that card scheme provides high level of assistance in generating the loyalty among the customers.
Moreover, in this technique customer earns points by making shopping from the particular store.
12
This is turn convert into the reward such as discounts, gifts etc. Due to this, customer makes
effort to reach at the specific limit by making more shopping with the aim to redeem the reward.
In this, card schemes encourage personnel to make repeat purchase from the store. This aspect
shows the loyalty of the customers towards the retail store or firm.
On the other hand, Omar and et.al., (2011) argued that loyalty of the clients are negatively
affected when company fails to make effectual relationship between the points and tangle
rewards. Thus, if loyalty card scheme of the retail firm is too complex then it place negative
impact on the shopping decision of customers. For instance: if ABC supermarket introduces the
scheme that twelve points are equal to one Euro. Thus, in order to enjoy the benefits of 60%
discount on the purchase of next month such as June customer needs to earn 16 Euros. In this, it
is considered as problem not reward because to get discounts consumer require to do more
shopping in the previous years. This aspect has bad impact on satisfaction and thereby loyalty
aspect of the customers.
In accordance with the view points of Xie and et.al., (2013) high and positive relationship
exist between the loyalty card schemes and customer loyalty. Due to these there are large
number of firms who makes use of loyalty cards. Moreover, customers are highly price concious
in nature. Thus, they prefer to purchase products or services from the store which charges
reasonable prices by maintaining the quality to the large extent. In this, loyalty card schemes
plays a crucial role in developing loyalty among the customers. By keeping this fact in mind
large number of UK business organization undertakes loyalty card schemes to generate more
customer loyalty. For instance: Tesco Clubcard is the more popular card in UK which is owned
by 68% of Britishers. This card had made remarkable contribution in the customer loyalty.
As Tesco has information about the shopping habits of individuals. Thus, by considering
the needs and expectations Tesco has offered the card which provides opportunity to the
customer to redeem the point by purchasing the products namely groceries, holidays, day out
etc. This aspects clearly reflects that loyalty car scheme is highly associated with the customer
loyalty to the significant level. Loyalty card schemes play a vital role in tracking the buying
habits of the customers. Moreover, customers also have desire to purchase product from the
specific retail store to get the high points. Thus, card scheme helps in creating association of
customers with the specific retail store. From this, literature it can be stated that card scheme has
high level of impact on the loyalty of customers towards the retail store and the products or
13
effort to reach at the specific limit by making more shopping with the aim to redeem the reward.
In this, card schemes encourage personnel to make repeat purchase from the store. This aspect
shows the loyalty of the customers towards the retail store or firm.
On the other hand, Omar and et.al., (2011) argued that loyalty of the clients are negatively
affected when company fails to make effectual relationship between the points and tangle
rewards. Thus, if loyalty card scheme of the retail firm is too complex then it place negative
impact on the shopping decision of customers. For instance: if ABC supermarket introduces the
scheme that twelve points are equal to one Euro. Thus, in order to enjoy the benefits of 60%
discount on the purchase of next month such as June customer needs to earn 16 Euros. In this, it
is considered as problem not reward because to get discounts consumer require to do more
shopping in the previous years. This aspect has bad impact on satisfaction and thereby loyalty
aspect of the customers.
In accordance with the view points of Xie and et.al., (2013) high and positive relationship
exist between the loyalty card schemes and customer loyalty. Due to these there are large
number of firms who makes use of loyalty cards. Moreover, customers are highly price concious
in nature. Thus, they prefer to purchase products or services from the store which charges
reasonable prices by maintaining the quality to the large extent. In this, loyalty card schemes
plays a crucial role in developing loyalty among the customers. By keeping this fact in mind
large number of UK business organization undertakes loyalty card schemes to generate more
customer loyalty. For instance: Tesco Clubcard is the more popular card in UK which is owned
by 68% of Britishers. This card had made remarkable contribution in the customer loyalty.
As Tesco has information about the shopping habits of individuals. Thus, by considering
the needs and expectations Tesco has offered the card which provides opportunity to the
customer to redeem the point by purchasing the products namely groceries, holidays, day out
etc. This aspects clearly reflects that loyalty car scheme is highly associated with the customer
loyalty to the significant level. Loyalty card schemes play a vital role in tracking the buying
habits of the customers. Moreover, customers also have desire to purchase product from the
specific retail store to get the high points. Thus, card scheme helps in creating association of
customers with the specific retail store. From this, literature it can be stated that card scheme has
high level of impact on the loyalty of customers towards the retail store and the products or
13
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services which are offered by them.
14
14
CHAPTER 3: RESEARCH METHODOLOGY
Research methodology may be served as a framework which provides assistance to the
researcher in conducting investigation in an appropriate manner. It consists of the process which
researcher needs to undertake while conducting the investigation. It prevents confusion in the
mind if researcher and thereby helps in finding the suitable solution of the research issue
(Vujaklija and et.al., 2010). This section of dissertation provides deeper insight about the
approaches and philosophies which has been used by the researcher during the study. Besides
this, it also entails the methods which researcher has been undertaken for the collection and
analysis of primary data. It also includes the accessibility and ethical issues which has been faced
by the researcher during the study. Further, research methodology serves information about the
aspects which limit the significance or outcome of the study. Thus, research methodology refers
to the tools and techniques that has been used by the researcher in the present study.
Research Type
Qualitative and quantitative are the main two types of investigation which researcher can
undertake to assess the solution of problem. For the effective investigation, researcher is required
to select the type and nature of research. Moreover, research approach, philosophy as well as data
collection and analysis method is heavily influenced by the type of investigation (Hunleth, 2011).
In quantitative research, scholar makes analysis of the numeric facts and figures with the help of
statistical tools and techniques. In contrast to it, in qualitative investigations investigator makes
focus on the assessment of the reasons and opinions which are associated with the research issue.
Under the present study, researcher has been used qualitative investigation. Thus, by exploring
the problem researcher is able to identify the extent to which loyalty card programs or schemes
help in retaining customers for the long run. Thus, by placing emphasis on the qualitative
features or aspects researcher can present the fair judgement of the proposed study.
Research Approach
Research approach can be divided in two groups namely inductive or deductive approach.
Nature of investigation closely influence the selection of approach to the large extent. Inductive
approach is highly associated with the qualitative investigation in which scholar starts with
making hypothesis on the basis of observation and it ends with the confirmation of theory
(Geerts, 2011). On the contrary to it, deductive approach begins with the existing theories and
15
Research methodology may be served as a framework which provides assistance to the
researcher in conducting investigation in an appropriate manner. It consists of the process which
researcher needs to undertake while conducting the investigation. It prevents confusion in the
mind if researcher and thereby helps in finding the suitable solution of the research issue
(Vujaklija and et.al., 2010). This section of dissertation provides deeper insight about the
approaches and philosophies which has been used by the researcher during the study. Besides
this, it also entails the methods which researcher has been undertaken for the collection and
analysis of primary data. It also includes the accessibility and ethical issues which has been faced
by the researcher during the study. Further, research methodology serves information about the
aspects which limit the significance or outcome of the study. Thus, research methodology refers
to the tools and techniques that has been used by the researcher in the present study.
Research Type
Qualitative and quantitative are the main two types of investigation which researcher can
undertake to assess the solution of problem. For the effective investigation, researcher is required
to select the type and nature of research. Moreover, research approach, philosophy as well as data
collection and analysis method is heavily influenced by the type of investigation (Hunleth, 2011).
In quantitative research, scholar makes analysis of the numeric facts and figures with the help of
statistical tools and techniques. In contrast to it, in qualitative investigations investigator makes
focus on the assessment of the reasons and opinions which are associated with the research issue.
Under the present study, researcher has been used qualitative investigation. Thus, by exploring
the problem researcher is able to identify the extent to which loyalty card programs or schemes
help in retaining customers for the long run. Thus, by placing emphasis on the qualitative
features or aspects researcher can present the fair judgement of the proposed study.
Research Approach
Research approach can be divided in two groups namely inductive or deductive approach.
Nature of investigation closely influence the selection of approach to the large extent. Inductive
approach is highly associated with the qualitative investigation in which scholar starts with
making hypothesis on the basis of observation and it ends with the confirmation of theory
(Geerts, 2011). On the contrary to it, deductive approach begins with the existing theories and
15
application which assists researcher in drawing valid hypothesis. This approach of the
investigation ends with the confirmation of hypothesis. It is generally used by researcher when
they conduct quantitative investigation. In order to assess the effectiveness of card loyalty
program of Sainsbury researcher has been used inductive approach. Moreover, qualitative
investigation has been done by the scholar so, inductive approach helps scholar in getting the
reliable outcome of issue.
Research Philosophy
It refers to the way in which data can be gathered and analyzed by the scholar to draw the
valid conclusion or outcome. Specifically, there are two types of philosophies namely
interpretivism and positivism. Selection of the philosophy is highly influenced by the type of
investigation which is undertaken by the researcher. Moreover, positivism philosophy is highly
suitable for the quantitative investigation. In this, real facts and figures are analyzed by the
researcher. It enables scholar to present the fair and realistic view of the issue (Friend and et.al.,
2013). Whereas, in interpretivism philosophy researcher assumes hypothesis by considering the
research issue. In this, scholar make interpretation of the facts and figures by taking into account
the existing theories and principles (Menke, 2012). Such kind of philosophy is used by the
researcher in qualitative investigation.
In the present study, researcher has been used interpretivism philosophy to analyze the
relationship between loyalty card schemes of Sainsbury with the customer loyalty. For this
purpose, qualitative investigation has been conducted by the scholar. Thus, researcher has
undertaken interpretivism philosophy which assists them in gathering and analyzing the data in
an effectual manner. Hence, by analyzing the viewpoints of respondents on the basis of existing
theories and principles researcher is able to draw the suitable results.
Research Design
It refers to the overall strategy which has been employed by the researcher to co-ordinate
the different aspects of the study in a more logical manner. It may be served as a blueprint which
clearly entails the method which researcher will use for the collection and analysis of data
(Maxwell, 2012). Besides this, it also depicts the sampling technique that has been used by the
researcher for the selection of sample. Research design also includes the accessibility and ethical
issues which researcher has been faced while conducting the investigation.
Data collection methods
16
investigation ends with the confirmation of hypothesis. It is generally used by researcher when
they conduct quantitative investigation. In order to assess the effectiveness of card loyalty
program of Sainsbury researcher has been used inductive approach. Moreover, qualitative
investigation has been done by the scholar so, inductive approach helps scholar in getting the
reliable outcome of issue.
Research Philosophy
It refers to the way in which data can be gathered and analyzed by the scholar to draw the
valid conclusion or outcome. Specifically, there are two types of philosophies namely
interpretivism and positivism. Selection of the philosophy is highly influenced by the type of
investigation which is undertaken by the researcher. Moreover, positivism philosophy is highly
suitable for the quantitative investigation. In this, real facts and figures are analyzed by the
researcher. It enables scholar to present the fair and realistic view of the issue (Friend and et.al.,
2013). Whereas, in interpretivism philosophy researcher assumes hypothesis by considering the
research issue. In this, scholar make interpretation of the facts and figures by taking into account
the existing theories and principles (Menke, 2012). Such kind of philosophy is used by the
researcher in qualitative investigation.
In the present study, researcher has been used interpretivism philosophy to analyze the
relationship between loyalty card schemes of Sainsbury with the customer loyalty. For this
purpose, qualitative investigation has been conducted by the scholar. Thus, researcher has
undertaken interpretivism philosophy which assists them in gathering and analyzing the data in
an effectual manner. Hence, by analyzing the viewpoints of respondents on the basis of existing
theories and principles researcher is able to draw the suitable results.
Research Design
It refers to the overall strategy which has been employed by the researcher to co-ordinate
the different aspects of the study in a more logical manner. It may be served as a blueprint which
clearly entails the method which researcher will use for the collection and analysis of data
(Maxwell, 2012). Besides this, it also depicts the sampling technique that has been used by the
researcher for the selection of sample. Research design also includes the accessibility and ethical
issues which researcher has been faced while conducting the investigation.
Data collection methods
16
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Primary and secondary data collection methods are the one which helps researcher in
conducting investigation in the right direction. Primary data are the one which is specifically
collected by the researcher for the first time. Survey, observation and focus group etc. are the
most effectual methods which help in gathering suitable data according to the research issue or
problem
(Onwuegbuzie and et.al., 2013). Further, secondary data sources include books, journals and
online research articles or papers. As the name suggest that it is already collected by another
researcher for their own study. In order to state the relationship between loyalty card schemes of
Sainsbury and client loyalty both primary and secondary data methods has been used by the
researcher.
For the collection of primary data survey has been conducted by the investigator with the
help of questionnaire. Thus, by framing suitable questionnaire researcher is able to gather the
suitable amount of data from the respondents. It enables researcher to define the clear
relationship between the loyalty card program and loyalty of the customers of Sainsbury. Besides
this, researcher also has been taken assistance of the secondary data sources namely book,
journals and research papers. All these secondary sources help researcher in analyzing the
outcome of survey in the best possible manner. Thus, researcher has been made use of both
primary and secondary data for the present investigation.
Selection of sample
Sample may be defined as a subset of population upon which possesses the attributes of
entire population. Moreover, it is highly difficult for the researcher to conduct survey on whole
population (Chen and et.al., 2011). For this purpose, researcher is required to select the suitable
sample size on which survey has been conducted by them. There are mainly two types of
techniques such as probabilist and non-probabilistic sampling techniques which assists
researcher in selecting the suitable sample for the investigation. In this investigation, researcher
has been selected 40 customers of Sainsbury by taking into account the random sampling
procedure. Thus, in order to determine the relationship between the card schemes and customer
loyalty researcher has been conducted investigation on 40 people. Through this, researcher is
able fulfil the objectives of research to the large extent.
Data analysis plan
It may be defines as a process that researcher undertakes to arrange, describe and evaluate
17
conducting investigation in the right direction. Primary data are the one which is specifically
collected by the researcher for the first time. Survey, observation and focus group etc. are the
most effectual methods which help in gathering suitable data according to the research issue or
problem
(Onwuegbuzie and et.al., 2013). Further, secondary data sources include books, journals and
online research articles or papers. As the name suggest that it is already collected by another
researcher for their own study. In order to state the relationship between loyalty card schemes of
Sainsbury and client loyalty both primary and secondary data methods has been used by the
researcher.
For the collection of primary data survey has been conducted by the investigator with the
help of questionnaire. Thus, by framing suitable questionnaire researcher is able to gather the
suitable amount of data from the respondents. It enables researcher to define the clear
relationship between the loyalty card program and loyalty of the customers of Sainsbury. Besides
this, researcher also has been taken assistance of the secondary data sources namely book,
journals and research papers. All these secondary sources help researcher in analyzing the
outcome of survey in the best possible manner. Thus, researcher has been made use of both
primary and secondary data for the present investigation.
Selection of sample
Sample may be defined as a subset of population upon which possesses the attributes of
entire population. Moreover, it is highly difficult for the researcher to conduct survey on whole
population (Chen and et.al., 2011). For this purpose, researcher is required to select the suitable
sample size on which survey has been conducted by them. There are mainly two types of
techniques such as probabilist and non-probabilistic sampling techniques which assists
researcher in selecting the suitable sample for the investigation. In this investigation, researcher
has been selected 40 customers of Sainsbury by taking into account the random sampling
procedure. Thus, in order to determine the relationship between the card schemes and customer
loyalty researcher has been conducted investigation on 40 people. Through this, researcher is
able fulfil the objectives of research to the large extent.
Data analysis plan
It may be defines as a process that researcher undertakes to arrange, describe and evaluate
17
the data in a logical manner. Data analysis section is the most important part of dissertation
which clearly reflects the solution of the research problem (Goodman and et.al., 2013). Type of
investigation which is to carried out by the researcher also has high level of influence on the
data analysis procedure. SPSS is the best tool which helps in analyzing in quantitative data in a
highly systematic manner. On the contrary to it, scholar makes use of thematic perception test to
analyze the qualitative data. In this, researcher has been conducted qualitative investigation to
assess the extent to which card schemes or program of Sainsbury has impact on customer loyalty.
Thus, thematic perception test has been used by the researcher to analyze the data of
questionnaire. In this, researcher has been prepared theme of the every question of questionnaire
and thereby supports the findings from secondary data. By this, researcher is able to fulfil the
objectives of research to the large extent.
Accessibility issues
It refers to those which has faced by the researcher during the access of both primary and
secondary data. In the collection of primary data, there are some of the respondents who has
showed negative attitude towards the survey. Besides this, some the question are not answered by
the few of respondents. Beside this, researcher has been also faced difficulty in gather secondary
data due to the unavailability of latest books, journals etc. Further, most of the sites are not easily
accessible due to the high data security arrangements. Thus, all these aspects has been created
problem in front of the researcher during the collection of primary and secondary data.
Ethical considerations
Researcher can raise the effectiveness of study or outcome by following all the ethical
aspects or consideration. Scholar has been followed ethical aspects by encouraging the
respondents in relation to the filling of questionnaire. Fuhrer, researcher has been also given the
credit to the author or source by doing references. All these aspects clearly shows that researcher
has been maintained ethics in this study.
Limitations of the research study
Small sample size is one of the main factors that limits the creditworthiness of the present
study. In order to assess the link between the loyalty program and repeat purchase of the
customers researcher has been conducted survey on 40 clients of Sainsbury. Thus, if researcher
will conduct survey on more than 40 people then he is able to present the highly realistic view of
the research problem. Further, researcher has been faced problem in relation to the availability of
18
which clearly reflects the solution of the research problem (Goodman and et.al., 2013). Type of
investigation which is to carried out by the researcher also has high level of influence on the
data analysis procedure. SPSS is the best tool which helps in analyzing in quantitative data in a
highly systematic manner. On the contrary to it, scholar makes use of thematic perception test to
analyze the qualitative data. In this, researcher has been conducted qualitative investigation to
assess the extent to which card schemes or program of Sainsbury has impact on customer loyalty.
Thus, thematic perception test has been used by the researcher to analyze the data of
questionnaire. In this, researcher has been prepared theme of the every question of questionnaire
and thereby supports the findings from secondary data. By this, researcher is able to fulfil the
objectives of research to the large extent.
Accessibility issues
It refers to those which has faced by the researcher during the access of both primary and
secondary data. In the collection of primary data, there are some of the respondents who has
showed negative attitude towards the survey. Besides this, some the question are not answered by
the few of respondents. Beside this, researcher has been also faced difficulty in gather secondary
data due to the unavailability of latest books, journals etc. Further, most of the sites are not easily
accessible due to the high data security arrangements. Thus, all these aspects has been created
problem in front of the researcher during the collection of primary and secondary data.
Ethical considerations
Researcher can raise the effectiveness of study or outcome by following all the ethical
aspects or consideration. Scholar has been followed ethical aspects by encouraging the
respondents in relation to the filling of questionnaire. Fuhrer, researcher has been also given the
credit to the author or source by doing references. All these aspects clearly shows that researcher
has been maintained ethics in this study.
Limitations of the research study
Small sample size is one of the main factors that limits the creditworthiness of the present
study. In order to assess the link between the loyalty program and repeat purchase of the
customers researcher has been conducted survey on 40 clients of Sainsbury. Thus, if researcher
will conduct survey on more than 40 people then he is able to present the highly realistic view of
the research problem. Further, researcher has been faced problem in relation to the availability of
18
enough amount of financial resources. Due to this, researcher has been unable to conduct highly
in-depth research.
Reliability and Validity
For maintaining the reliability researcher has been collected secondary data from the
authenticate sites. Moreover, cites which are copyright protected offer more reliable and updated
information. Thus, by making use of latest or updated information researcher has been drawn
valid results of the study.
19
in-depth research.
Reliability and Validity
For maintaining the reliability researcher has been collected secondary data from the
authenticate sites. Moreover, cites which are copyright protected offer more reliable and updated
information. Thus, by making use of latest or updated information researcher has been drawn
valid results of the study.
19
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CHAPTER 4: DATA ANALYSIS AND FINDINGS
Data analysis may be defined as a process in which researcher arrange and analyze the
primary in a highly structured manner. In order to analyze the primary data thematic perception
test has been used by the researcher. In this, researcher prepares the theme of each question on
the basis of the outcome of survey. Thus, by supporting primary results with the secondary data
researcher is able to clearly present the extent to which loyalty card scheme of Sainsbury has
influence on customer loyalty. In this, researcher also add graph which facilitates deeper
understanding about the outcome of primary data.
Theme 1: Large number of customers visit the store of Sainsbury more frequently
Responses No of respondents % of respondents
Weekly 20 50.00%
Twice in a month 10 25.00%
Thrice in a month 5 12.50%
Monthly 5 12.50%
Total 40 100
20
Weekly
Twice in a month
Thrice in a month
Monthly
Total
0
5
10
15
20
25
30
35
40
45
No of respondents
Data analysis may be defined as a process in which researcher arrange and analyze the
primary in a highly structured manner. In order to analyze the primary data thematic perception
test has been used by the researcher. In this, researcher prepares the theme of each question on
the basis of the outcome of survey. Thus, by supporting primary results with the secondary data
researcher is able to clearly present the extent to which loyalty card scheme of Sainsbury has
influence on customer loyalty. In this, researcher also add graph which facilitates deeper
understanding about the outcome of primary data.
Theme 1: Large number of customers visit the store of Sainsbury more frequently
Responses No of respondents % of respondents
Weekly 20 50.00%
Twice in a month 10 25.00%
Thrice in a month 5 12.50%
Monthly 5 12.50%
Total 40 100
20
Weekly
Twice in a month
Thrice in a month
Monthly
Total
0
5
10
15
20
25
30
35
40
45
No of respondents
From the outcome of survey it has been identifying that 50% respondents visit the store
and make purchase from the store on a weekly basis. Whereas, 25% customers visit Sainsbury's
store twice in a month. This aspect clearly reflects that large number of customers go the
supermarket of Sainsbury more frequently. One of the respondents said that Sainsbury offers
high level of convenience to them. Thus, more customers prefer to visit the Sainsbury
supermarket for purchasing the grocery and other retail products. On the other hand, remaining
25% respondents make purchase of the product or services from the retail store of Sainsbury. It
reflects that customer prefers to make shopping from Sainsbury store whenever they need
grocery products. On the basis of this aspect it can be said that large number of respondents are
loyal towards the products or services of Sainsbury.
Theme 2: Customer loyalty plays a significant role in the growth of retail sector
Responses No of respondents % of respondents
Yes 30 75.00%
No 10 25.00%
Total 40 100
21
and make purchase from the store on a weekly basis. Whereas, 25% customers visit Sainsbury's
store twice in a month. This aspect clearly reflects that large number of customers go the
supermarket of Sainsbury more frequently. One of the respondents said that Sainsbury offers
high level of convenience to them. Thus, more customers prefer to visit the Sainsbury
supermarket for purchasing the grocery and other retail products. On the other hand, remaining
25% respondents make purchase of the product or services from the retail store of Sainsbury. It
reflects that customer prefers to make shopping from Sainsbury store whenever they need
grocery products. On the basis of this aspect it can be said that large number of respondents are
loyal towards the products or services of Sainsbury.
Theme 2: Customer loyalty plays a significant role in the growth of retail sector
Responses No of respondents % of respondents
Yes 30 75.00%
No 10 25.00%
Total 40 100
21
The above mentioned results clearly reflect that customer loyalty plays a vital role in the
growth and success of retail organization. 75% respondents agreed with this fact that company
can attain competitive edge over others when they have loyal customer base. From the secondary
data analysis it has been identified that business organization can expand their business
operations and functions in an effectual manner when they have loyal customer base. Moreover,
when customers are loyal towards the specific brand or products then they are easily get
influenced towards the purchasing of the distinct products or services. Besides this, loyal
customers also plays a crucial role in word of mouth publicity. It is the most effectual tool which
helps in developing awareness among the huge number of customers towards the products or
services of specific brand. On the contrary to it 25% customers of Sainsbury do not support this
aspect because they said that there are several other factors such as quality, price etc. are the
main factors which have high level of impact on the growth and development of the business
enterprise.
Theme 3: Customers are highly satisfied with the card scheme of Sainsbury
Responses No of respondents % of respondents
Satisfied 15 37.50%
Highly satisfied 20 50.00%
22
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
growth and success of retail organization. 75% respondents agreed with this fact that company
can attain competitive edge over others when they have loyal customer base. From the secondary
data analysis it has been identified that business organization can expand their business
operations and functions in an effectual manner when they have loyal customer base. Moreover,
when customers are loyal towards the specific brand or products then they are easily get
influenced towards the purchasing of the distinct products or services. Besides this, loyal
customers also plays a crucial role in word of mouth publicity. It is the most effectual tool which
helps in developing awareness among the huge number of customers towards the products or
services of specific brand. On the contrary to it 25% customers of Sainsbury do not support this
aspect because they said that there are several other factors such as quality, price etc. are the
main factors which have high level of impact on the growth and development of the business
enterprise.
Theme 3: Customers are highly satisfied with the card scheme of Sainsbury
Responses No of respondents % of respondents
Satisfied 15 37.50%
Highly satisfied 20 50.00%
22
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
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Dissatisfied 3 7.50%
Highly dissatisfied 2 5.00%
Total 40 100
23
Satisfied
Highly satisfied
Dissatisfied
Highly dissatisfied
Total
0
5
10
15
20
25
30
35
40
45
No of respondents
Highly dissatisfied 2 5.00%
Total 40 100
23
Satisfied
Highly satisfied
Dissatisfied
Highly dissatisfied
Total
0
5
10
15
20
25
30
35
40
45
No of respondents
By doing survey it has been assessed that 50% customers are highly satisfied with the
card scheme of Sainsbury. One of the respondents said that card scheme of Sainsbury is more
clear and thereby prevents confusion in their mind. Whereas, another respondents claimed that
Sainsbury provides information to the customers about the points which are generated by them.
Besides this, business unit also encourage customers to get more points and thereby enjoys the
reward. It is one of the main aspects due to which37.5% customers are also satisfied with the
card scheme of Sainsbury. In contrast to it, 5 respondents are not highly satisfied with the loyalty
card scheme of the business organization. Among 5 one of the respondents claimed that Tesco
clubcard offers high level of benefits to them as compared to Sainsbury.
Theme 4:Loyalty card scheme of Sainsbury is highly feasible
Responses No of respondents % of respondents
Agree 10 25.00%
Strongly agree 25 62.50%
Disagree 3 7.50%
Strongly Disagree 2 5.00%
Total 40 100
24
card scheme of Sainsbury. One of the respondents said that card scheme of Sainsbury is more
clear and thereby prevents confusion in their mind. Whereas, another respondents claimed that
Sainsbury provides information to the customers about the points which are generated by them.
Besides this, business unit also encourage customers to get more points and thereby enjoys the
reward. It is one of the main aspects due to which37.5% customers are also satisfied with the
card scheme of Sainsbury. In contrast to it, 5 respondents are not highly satisfied with the loyalty
card scheme of the business organization. Among 5 one of the respondents claimed that Tesco
clubcard offers high level of benefits to them as compared to Sainsbury.
Theme 4:Loyalty card scheme of Sainsbury is highly feasible
Responses No of respondents % of respondents
Agree 10 25.00%
Strongly agree 25 62.50%
Disagree 3 7.50%
Strongly Disagree 2 5.00%
Total 40 100
24
On the basis of the above mentioned table it has been stated that 25 respondents are
strongly agree that card scheme of Sainsbury is highly feasible. One can easily get high points
and fulfill the limits which help them in getting high level of benefits such as as discount, gifts
etc. Thus, 25% customers also said that it is not highly difficult for them to cross the limit which
is given to them. Hence, cars scheme policy is highly feasible which customer can achieve
25
Agree Strongly agree Disagree Strongly Disagree Total
0
5
10
15
20
25
30
35
40
45
No of respondents
strongly agree that card scheme of Sainsbury is highly feasible. One can easily get high points
and fulfill the limits which help them in getting high level of benefits such as as discount, gifts
etc. Thus, 25% customers also said that it is not highly difficult for them to cross the limit which
is given to them. Hence, cars scheme policy is highly feasible which customer can achieve
25
Agree Strongly agree Disagree Strongly Disagree Total
0
5
10
15
20
25
30
35
40
45
No of respondents
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within the very less time frame. In comparison to this, 5% respondents claimed that card scheme
policy of the firm is less feasible as compared to the competitors.
Theme 5:Loyalty card scheme of Sainsbury offers high level of monetary benefits to the
customers
Responses No of respondents % of respondents
Yes 30 75.00%
No 10 25.00%
Total 40 100
26
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
policy of the firm is less feasible as compared to the competitors.
Theme 5:Loyalty card scheme of Sainsbury offers high level of monetary benefits to the
customers
Responses No of respondents % of respondents
Yes 30 75.00%
No 10 25.00%
Total 40 100
26
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
Result of survey clearly reflects that 75% respondents said that loyalty card scheme
which is introduced by Sainsbury offers high level of monetary benefit to the customers.
Customer can redeem all the points which are generated by them through shopping. This card
offers discounts, coupons and gifts etc. which customer can use on the number of stores. Further,
customer can also use this card for making shopping of the products or services through the
means of internet. Thus, this card can be used by the customers for day out shopping of products
or services. Whereas, 25% respondents are not highly satisfied with the monetary benefits which
are offered by Sainsbury through its card scheme. From 10 respondents one of the customer
stated that benefits are lower as compared to the point limits. Thus, on an overall basis it can be
stated that card scheme offers high level of benefits to the loyal customers in terms of financial
aspects.
Theme 6: Sainsbury offers high quality products or services at affordable prices
Responses No of respondents % of respondents
Agree 12 30.00%
Strongly agree 18 45.00%
Disagree 7 17.50%
Strongly Disagree 3 7.50%
Total 40 100
27
which is introduced by Sainsbury offers high level of monetary benefit to the customers.
Customer can redeem all the points which are generated by them through shopping. This card
offers discounts, coupons and gifts etc. which customer can use on the number of stores. Further,
customer can also use this card for making shopping of the products or services through the
means of internet. Thus, this card can be used by the customers for day out shopping of products
or services. Whereas, 25% respondents are not highly satisfied with the monetary benefits which
are offered by Sainsbury through its card scheme. From 10 respondents one of the customer
stated that benefits are lower as compared to the point limits. Thus, on an overall basis it can be
stated that card scheme offers high level of benefits to the loyal customers in terms of financial
aspects.
Theme 6: Sainsbury offers high quality products or services at affordable prices
Responses No of respondents % of respondents
Agree 12 30.00%
Strongly agree 18 45.00%
Disagree 7 17.50%
Strongly Disagree 3 7.50%
Total 40 100
27
The above figures show that 18 customer strongly agree that Sainsbury offers high
quality products or services at cost effective prices. Along with it, 12 customers also agree that
Sainsbury charges affordable prices for the products or services and thereby raise the living
standard of the people of society. Secondary data analysis clearly reflects that customers are
28
Agree Strongly agree Disagree Strongly Disagree Total
0
5
10
15
20
25
30
35
40
45
No of respondents
quality products or services at cost effective prices. Along with it, 12 customers also agree that
Sainsbury charges affordable prices for the products or services and thereby raise the living
standard of the people of society. Secondary data analysis clearly reflects that customers are
28
Agree Strongly agree Disagree Strongly Disagree Total
0
5
10
15
20
25
30
35
40
45
No of respondents
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highly price concious in nature. Thus, they prefer to purchase the products from the store who
provides quality products to the customers at reasonable prices. It is one of the main aspects
which evolve high level of satisfaction among the customers. This facet clearly reflects that most
of the customers are highly satisfied with the pricing policy and quality of the products. This in
turn may convert into customer loyalty in the near future. On the other hand, 7 customers
disagree and 3 respondents strongly disagree with the above analysis or statement. Moreover,
Tesco, Morrison's and ASDA etc. also offers quality products or services at cost effectual prices.
Thus, they entail that there is no significant difference take place in the prices of products or
services which are offered by Sainsbury.
Theme 7: Loyalty card scheme has high level of influence on the decision making aspect of
the customers
Responses No of respondents % of respondents
Yes 32 80.00%
No 8 20.00%
Total 40 100
29
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
provides quality products to the customers at reasonable prices. It is one of the main aspects
which evolve high level of satisfaction among the customers. This facet clearly reflects that most
of the customers are highly satisfied with the pricing policy and quality of the products. This in
turn may convert into customer loyalty in the near future. On the other hand, 7 customers
disagree and 3 respondents strongly disagree with the above analysis or statement. Moreover,
Tesco, Morrison's and ASDA etc. also offers quality products or services at cost effectual prices.
Thus, they entail that there is no significant difference take place in the prices of products or
services which are offered by Sainsbury.
Theme 7: Loyalty card scheme has high level of influence on the decision making aspect of
the customers
Responses No of respondents % of respondents
Yes 32 80.00%
No 8 20.00%
Total 40 100
29
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
By making analysis of the viewpoints of respondents it has been assessed that loyalty
card scheme attracts customer to make more purchase of the product and thereby get attractive
points. 32 respondent are agreed with this fact that they are highly influenced by this scheme and
prefer to make shopping of the products from the supermarket of Sainsbury. Moreover, in card
scheme points of the customers are increased when they make purchase of products from the
retail store of Sainsbury. Thus, with the aim to raise points and to get monetary benefits
customers make purchase of the products or services from the specific store. This aspect clearly
reflects that loyalty card scheme has significant impact on the purchasing decision making of
customers.
Further, 8 respondents do not support this statement. They state that their decision making
is not highly influenced by the loyalty card scheme. Moreover, this scheme may result into the
unnecessary expenses. Hence, to get the benefits of discounts, coupon and gifts etc. customer
has to spend more in one month in order to get the high points. This spending provides benefit in
the upcoming months. Due to this, 20% respondents are not associated with the loyalty card
scheme of Sainsbury.
Theme 8: Nectar card scheme of Sainsbury is highly effective
Responses No of respondents % of respondents
Effective 10 25.00%
Highly effective 25 62.50%
Not effective 5 12.50%
30
card scheme attracts customer to make more purchase of the product and thereby get attractive
points. 32 respondent are agreed with this fact that they are highly influenced by this scheme and
prefer to make shopping of the products from the supermarket of Sainsbury. Moreover, in card
scheme points of the customers are increased when they make purchase of products from the
retail store of Sainsbury. Thus, with the aim to raise points and to get monetary benefits
customers make purchase of the products or services from the specific store. This aspect clearly
reflects that loyalty card scheme has significant impact on the purchasing decision making of
customers.
Further, 8 respondents do not support this statement. They state that their decision making
is not highly influenced by the loyalty card scheme. Moreover, this scheme may result into the
unnecessary expenses. Hence, to get the benefits of discounts, coupon and gifts etc. customer
has to spend more in one month in order to get the high points. This spending provides benefit in
the upcoming months. Due to this, 20% respondents are not associated with the loyalty card
scheme of Sainsbury.
Theme 8: Nectar card scheme of Sainsbury is highly effective
Responses No of respondents % of respondents
Effective 10 25.00%
Highly effective 25 62.50%
Not effective 5 12.50%
30
Total 40 100
I
In survey, from 40 customers of Sainsbury 62.50% respondents have presented that
Nectar card policy of the firm is highly effective. Moreover, this card can be used by the
31
Effective
Highly effective
Not effective
Total
0
5
10
15
20
25
30
35
40
45
No of respondents
I
In survey, from 40 customers of Sainsbury 62.50% respondents have presented that
Nectar card policy of the firm is highly effective. Moreover, this card can be used by the
31
Effective
Highly effective
Not effective
Total
0
5
10
15
20
25
30
35
40
45
No of respondents
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customers in the number of stores. Further, customers can also make use of this card while they
make online shopping of the product or services. In this, money of the card increases when
customers get high points. In this, the card offers more money to the customers for spending it in
the day out shopping. On the basis of these feature 25% customers also said that the Nectar
policy which is introduced by the Sainsbury is highly effective.
In contrast to this, 12.5% respondents claimed that Nectar card f Sainsbury is not highly
effective as compared to others such as Tesco clubcard. One of the respondents said that one
easily redeem the Tesco clubcard in against to the large number of products namely groceries,
holidays and day out. From secondary research it has been identifying that 68% Britishers has
club card of Tesco. Thus, huge offering in against to high points is one of the main aspects due to
which 5 respondents claimed that card policy of the Sainsbury is not highly effective.
Theme 9: loyalty card scheme attracts customer to make purchase of products from specific
store
Responses No of respondents % of respondents
Yes 32 80.00%
No 8 20.00%
Total 40 100
32
make online shopping of the product or services. In this, money of the card increases when
customers get high points. In this, the card offers more money to the customers for spending it in
the day out shopping. On the basis of these feature 25% customers also said that the Nectar
policy which is introduced by the Sainsbury is highly effective.
In contrast to this, 12.5% respondents claimed that Nectar card f Sainsbury is not highly
effective as compared to others such as Tesco clubcard. One of the respondents said that one
easily redeem the Tesco clubcard in against to the large number of products namely groceries,
holidays and day out. From secondary research it has been identifying that 68% Britishers has
club card of Tesco. Thus, huge offering in against to high points is one of the main aspects due to
which 5 respondents claimed that card policy of the Sainsbury is not highly effective.
Theme 9: loyalty card scheme attracts customer to make purchase of products from specific
store
Responses No of respondents % of respondents
Yes 32 80.00%
No 8 20.00%
Total 40 100
32
Among 40 respondent 80% respondents support the above statement to the large extent.
They said that loyalty card schemes have high level of influence on the purchasing decision of
customers in relation to the specific store. Moreover, customers have desire to generate high
points for getting the high level of monetary benefits. Due to this, customers place more
emphasis on the purchasing of product from one store rather than different. Moreover, when
customers make purchase of products or services from one store then they are able to get high
level of monetary benefits. If customers make shopping of grocery products from different stores
then they are unable to generate or lead high points. From this analysis, it can be stated that card
schemes attract customers to make purchase of the product from the specific retail store. On the
contrary to it, 20% customers stated that card scheme does not encourage them to make shopping
of the products or services from the specific retail store.
Theme 10: High level of relationship exist between loyalty card schemes and customer loyalty
Responses No of respondents % of respondents
Yes 33 82.5.00%
No 7 17.5.00%
Total 40 100
33
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
They said that loyalty card schemes have high level of influence on the purchasing decision of
customers in relation to the specific store. Moreover, customers have desire to generate high
points for getting the high level of monetary benefits. Due to this, customers place more
emphasis on the purchasing of product from one store rather than different. Moreover, when
customers make purchase of products or services from one store then they are able to get high
level of monetary benefits. If customers make shopping of grocery products from different stores
then they are unable to generate or lead high points. From this analysis, it can be stated that card
schemes attract customers to make purchase of the product from the specific retail store. On the
contrary to it, 20% customers stated that card scheme does not encourage them to make shopping
of the products or services from the specific retail store.
Theme 10: High level of relationship exist between loyalty card schemes and customer loyalty
Responses No of respondents % of respondents
Yes 33 82.5.00%
No 7 17.5.00%
Total 40 100
33
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
In survey, large number of respondents such as 82.5% said that there is high level of
relationship exist between loyalty card schemes and customer loyalty. Moreover, customer
loyalty is when they make repeat purchase of the products or services from the specific store.
Thus, loyalty card is most effectual schemes which assists business organization in retaining
customers for the long run. Thus, loyalty card scheme helps customers in showing their loyalty
towards the products or services of the store.
Moreover, to generate and take benefits of the higher points customers purchase the
34
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
relationship exist between loyalty card schemes and customer loyalty. Moreover, customer
loyalty is when they make repeat purchase of the products or services from the specific store.
Thus, loyalty card is most effectual schemes which assists business organization in retaining
customers for the long run. Thus, loyalty card scheme helps customers in showing their loyalty
towards the products or services of the store.
Moreover, to generate and take benefits of the higher points customers purchase the
34
Yes No Total
0
5
10
15
20
25
30
35
40
45
No of respondents
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product or services from the specific retail store. This aspect clearly shows the loyalty of
customers toward the specific retail store and their products or services. Hence, all the above
mentioned aspects present that loyalty card schemes make remarkable contribution in the
development of loyalty among the consumers. Only 7 respondents are not agree with the fact that
card schemes help in building loyalty among the customers. They said that discount is not only
the factor which helps in building customer loyalty but also quality, price, delivery and behavior
of the service personnel closely influence the decision making of customers.
35
customers toward the specific retail store and their products or services. Hence, all the above
mentioned aspects present that loyalty card schemes make remarkable contribution in the
development of loyalty among the consumers. Only 7 respondents are not agree with the fact that
card schemes help in building loyalty among the customers. They said that discount is not only
the factor which helps in building customer loyalty but also quality, price, delivery and behavior
of the service personnel closely influence the decision making of customers.
35
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
By summing up this dissertation, it can be articulated that loyalty card schemes have
significant influence on customer loyalty. In the present era, customers visit and purchase
products from the store who offers high level of benefit to them in the financial aspects. Due to
the fierce competition in the retail industry it is highly vital for the firms to build loyalty among
the customers. Moreover, company can survive in the dynamic business arena when they have
loyal customer base. In order to cope with this situation large number of retail firms has adopted
loyalty card schemes which assists them in getting the desired level of outcome or success.
Objective 1: Determination of the significance of customer loyalty in retail sector
From this dissertation, it can be inferred that customer loyalty is one of the main factors
that provide assistance to the retail firm in building strategic advantage over others. Moreover,
when company has more loyal customers then it is able to attain success by expanding their
business operations and functions. Loyal customer also helps retail companies in enhancing their
productivity and profitability by developing awareness among others. Moreover, satisfied and
highly loyal customers share their experiences and suggestions with others. Thus, highly loyal
customers plays an important role in creating word of mouth publicity of the retail business
organization including Sainsbury. Word of mouth is the most effective tool which helps in
influencing the decision making aspect of others as compared to the varied promotional
strategies and campaign. Thus, it can be inferred that customer loyalty plays a significant in the
growth and development of retail sector or organizations. Hence, the present dissertation has
accomplished this objective to the large extent.
Objective 2: Stating the association between the loyalty card schemes and customer loyalty
From the outcome of survey it has been concluded that direct and positive relationship
exist between customer loyalty and card scheme. Sainsbury has also offered loyalty card to their
customers which offers high level of monetary benefits to them. It can be seen in the dissertation
that in card scheme customer get points whenever they make purchase of the products orb
services. In this, when customer fulfils the limits then they are able to enjoy the monetary
benefits in term of discount, coupons, gift card etc. Besides this, it can be revealed from the
dissertation that loyal card scheme which is introduced by Sainsbury is highly feasible. Fuhrer,
monetary benefits which are provided by the company to the customers through card scheme
helps them in building loyalty among the customers. It can be summed up that Nectar card policy
36
By summing up this dissertation, it can be articulated that loyalty card schemes have
significant influence on customer loyalty. In the present era, customers visit and purchase
products from the store who offers high level of benefit to them in the financial aspects. Due to
the fierce competition in the retail industry it is highly vital for the firms to build loyalty among
the customers. Moreover, company can survive in the dynamic business arena when they have
loyal customer base. In order to cope with this situation large number of retail firms has adopted
loyalty card schemes which assists them in getting the desired level of outcome or success.
Objective 1: Determination of the significance of customer loyalty in retail sector
From this dissertation, it can be inferred that customer loyalty is one of the main factors
that provide assistance to the retail firm in building strategic advantage over others. Moreover,
when company has more loyal customers then it is able to attain success by expanding their
business operations and functions. Loyal customer also helps retail companies in enhancing their
productivity and profitability by developing awareness among others. Moreover, satisfied and
highly loyal customers share their experiences and suggestions with others. Thus, highly loyal
customers plays an important role in creating word of mouth publicity of the retail business
organization including Sainsbury. Word of mouth is the most effective tool which helps in
influencing the decision making aspect of others as compared to the varied promotional
strategies and campaign. Thus, it can be inferred that customer loyalty plays a significant in the
growth and development of retail sector or organizations. Hence, the present dissertation has
accomplished this objective to the large extent.
Objective 2: Stating the association between the loyalty card schemes and customer loyalty
From the outcome of survey it has been concluded that direct and positive relationship
exist between customer loyalty and card scheme. Sainsbury has also offered loyalty card to their
customers which offers high level of monetary benefits to them. It can be seen in the dissertation
that in card scheme customer get points whenever they make purchase of the products orb
services. In this, when customer fulfils the limits then they are able to enjoy the monetary
benefits in term of discount, coupons, gift card etc. Besides this, it can be revealed from the
dissertation that loyal card scheme which is introduced by Sainsbury is highly feasible. Fuhrer,
monetary benefits which are provided by the company to the customers through card scheme
helps them in building loyalty among the customers. It can be summed up that Nectar card policy
36
of Sainsbury is highly effectual which offers opportunities to the customers to redeem their
points in online and day out shopping etc. In addition to this,it can be summarized that
Sainsbury has influenced the decision making of customers by offering the card schemes.
Besides this, card scheme encourages customers to make shopping of the products or services
from specific retail store. Moreover, when customer makes purchase of product from the specific
store then there is high level of possibility that they will get more points. This aspect act as a
motivator which influence the decision making aspect of the customers to the significant level.
This in turn provide assistance to Sainsbury in developing loyalty among the customers. Thus, it
can be concluded that high level of association take place between the loyalty card schemes of
Sainsbury and customer loyalty.
37
points in online and day out shopping etc. In addition to this,it can be summarized that
Sainsbury has influenced the decision making of customers by offering the card schemes.
Besides this, card scheme encourages customers to make shopping of the products or services
from specific retail store. Moreover, when customer makes purchase of product from the specific
store then there is high level of possibility that they will get more points. This aspect act as a
motivator which influence the decision making aspect of the customers to the significant level.
This in turn provide assistance to Sainsbury in developing loyalty among the customers. Thus, it
can be concluded that high level of association take place between the loyalty card schemes of
Sainsbury and customer loyalty.
37
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RECOMMENDATIONS
It is recommended to Sainsbury that it needs to offer huge variety of the product or
services in against to the loyalty or Nectar card. This aspect helps business enterprise in
coping up the situation of fierce competition. Moreover, Tesco offers large number of
products or services to the customers in return of loyalty card. Thus, by offering the wide
range of products and services business organization is able to build and strengthen the
loyalty of customers.
Further, Sainsbury needs to encourage their customers to give feedback about the
effectiveness of loyalty cards. In addition to this, business organization also require to
motivate their customers to give suggestions about the improvements which they need to
made in loyalty schemes.
Besides this, Sainsbury also needs to make assessment of the loyalty card scheme of
competitors firm. Thus, by making thorough analysis of the competitors strategies and
policies business enterprise is able to offer most effectual card scheme to the customers.
It enables firm to attain competitive edge over others.
Thus, by taking into consideration all these aspects Sainsbury is to enhance their
customer loyalty. This in turn helps business enterprise in maximizing their productivity and
profitability.
38
It is recommended to Sainsbury that it needs to offer huge variety of the product or
services in against to the loyalty or Nectar card. This aspect helps business enterprise in
coping up the situation of fierce competition. Moreover, Tesco offers large number of
products or services to the customers in return of loyalty card. Thus, by offering the wide
range of products and services business organization is able to build and strengthen the
loyalty of customers.
Further, Sainsbury needs to encourage their customers to give feedback about the
effectiveness of loyalty cards. In addition to this, business organization also require to
motivate their customers to give suggestions about the improvements which they need to
made in loyalty schemes.
Besides this, Sainsbury also needs to make assessment of the loyalty card scheme of
competitors firm. Thus, by making thorough analysis of the competitors strategies and
policies business enterprise is able to offer most effectual card scheme to the customers.
It enables firm to attain competitive edge over others.
Thus, by taking into consideration all these aspects Sainsbury is to enhance their
customer loyalty. This in turn helps business enterprise in maximizing their productivity and
profitability.
38
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40
Hosseini, S.M.S. and et.al., 2010. Cluster analysis using data mining approach to develop CRM
methodology to assess the customer loyalty. Expert Systems with Applications. 37(7).
pp.5259-5264.
Hunleth, J., 2011. Beyond on or with: Questioning power dynamics and knowledge production
in ‘child-oriented’research methodology. Childhood. 18(1). pp.81-93.
Hunter, R.F. and et.al., 2013. Physical activity loyalty cards for behavior change: a quasi-
experimental study. American journal of preventive medicine. 45(1). pp.56-63.
Kheng, L.L. and et.al., 2010. The impact of service quality on customer loyalty: A study of banks
in Penang, Malaysia. International Journal of Marketing Studies. 2(2). pp.57.
Liu, C.T. and et.al., 2011. The effects of relationship quality and switching barriers on customer
loyalty. International Journal of Information Management. 31(1). pp.71-79.
Maxwell, J.A., 2012. Qualitative research design: An interactive approach: An interactive
approach. Sage.
Menke, W., 2012. Geophysical data analysis: discrete inverse theory. Academic press.
Omar, N.A. and et.al., 2011. Measuring service quality in retail loyalty programmes (LPSQual):
Implications for retailers' retention strategies. International Journal of Retail &
Distribution Management. 39(10). pp.759-784.
Onwuegbuzie, A.J. and et.al., 2013. Introduction: Toward a new research philosophy for
addressing social justice issues: Critical dialectical pluralism 1.0. International Journal of
Multiple Research Approaches. 7(1). pp.9-26.
Ozdenizci, B. and et.al., 2010. NFC loyal: A beneficial model to promote loyalty on smart cards
of mobile devices. In Internet Technology and Secured Transactions (ICITST). 2010
International Conference for (pp. 1-6). IEEE.
Santouridis, I. and et.al., 2010. Investigating the impact of service quality and customer
satisfaction on customer loyalty in mobile telephony in Greece. The TQM Journal. 22(3).
pp.330-343.
Siddiqi, K.O., 2011. Interrelations between service quality attributes, customer satisfaction and
customer loyalty in the retail banking sector in Bangladesh. International Journal of
Business and Management. 6(3). pp.12.
Szwarc, P., 2005. Researching Customer Satisfaction & Loyalty: How to Find Out what People
40
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Really Think.Kogan Page Publishers.
Tanford, S. and et.al., 2012. Determinants of customer loyalty and purchasing behavior for full-
service and limited-service hotels. International Journal of Hospitality Management.
31(2). pp.319-328.
Vujaklija, A. and et.al., 2010. Can teaching research methodology influence students' attitude
toward science? Cohort study and nonrandomized trial in a single medical school.
Journal of Investigative Medicine. 58(2). pp.282-286.
Xie, K.L. and et.al., 2013. Progress in loyalty program research: Facts, debates, and future
research. Journal of Hospitality Marketing & Management. 22(5). pp.463-489.
Zichermann, G. and et.al., 2010. Game-based marketing: inspire customer loyalty through
rewards, challenges, and contests. John Wiley & Sons.
41
Tanford, S. and et.al., 2012. Determinants of customer loyalty and purchasing behavior for full-
service and limited-service hotels. International Journal of Hospitality Management.
31(2). pp.319-328.
Vujaklija, A. and et.al., 2010. Can teaching research methodology influence students' attitude
toward science? Cohort study and nonrandomized trial in a single medical school.
Journal of Investigative Medicine. 58(2). pp.282-286.
Xie, K.L. and et.al., 2013. Progress in loyalty program research: Facts, debates, and future
research. Journal of Hospitality Marketing & Management. 22(5). pp.463-489.
Zichermann, G. and et.al., 2010. Game-based marketing: inspire customer loyalty through
rewards, challenges, and contests. John Wiley & Sons.
41
APPENDIX
Questionnaire
Demographic information
Name...
Age.....
Income.......
1. How often do you visit and purchase products from the store of Sainsbury?
Weekly ()
Twice in a month ()
Thrice in a month ()
Monthly ()
2. Do you think that loyalty or commitment of the customers plays a significant role in the
growth of retail sector?
Yes ()
No ()
3. Are you satisfied with the loyalty card schemes of Sainsbury?
Satisfied ()
Highly satisfied ()
Dissatisfied ()
Highly dissatisfied ()
4. Is loyalty card scheme of Sainsbury is highly feasible or not?
Agree ()
Strongly agree ()
Disagree ()
Strongly disagree ()
5. Is loyalty card scheme of Sainsbury offers high level of monetary benefits?
Yes ()
No ()
6. Do you agree that Sainsbury offers high quality products or services at affordable prices?
Agree ()
Strongly agree ()
42
Questionnaire
Demographic information
Name...
Age.....
Income.......
1. How often do you visit and purchase products from the store of Sainsbury?
Weekly ()
Twice in a month ()
Thrice in a month ()
Monthly ()
2. Do you think that loyalty or commitment of the customers plays a significant role in the
growth of retail sector?
Yes ()
No ()
3. Are you satisfied with the loyalty card schemes of Sainsbury?
Satisfied ()
Highly satisfied ()
Dissatisfied ()
Highly dissatisfied ()
4. Is loyalty card scheme of Sainsbury is highly feasible or not?
Agree ()
Strongly agree ()
Disagree ()
Strongly disagree ()
5. Is loyalty card scheme of Sainsbury offers high level of monetary benefits?
Yes ()
No ()
6. Do you agree that Sainsbury offers high quality products or services at affordable prices?
Agree ()
Strongly agree ()
42
1 out of 42
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