Concept of Consumer Loyalty and Reward | Research
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Added on 2020-02-12
Concept of Consumer Loyalty and Reward | Research
Added on 2020-02-12
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RESEARCHPROJECT
TABLE OF CONTENTSTASK 1............................................................................................................................................11.1 Formulating Research project specifications ............................................................................11.2 Element contributed for the selection of investigation project.................................................21.3 Critical review of selected research topic .................................................................................31.4 Research project specification ................................................................................................10Conclusion ....................................................................................................................................121.5 Plan and procedure for research project .................................................................................13TASK 2..........................................................................................................................................162.1 Matching efficiency of resources for the investigation questions...........................................162.2 Designing questionnaire..........................................................................................................172.3 Recording and collecting the data ...........................................................................................19TASK 3..........................................................................................................................................213.1 Research evaluation technique.................................................................................................213.2 Interpretation and analysis of results ......................................................................................223.3 Recommendations and areas for further research ...................................................................35TASK 4 .........................................................................................................................................36REFERENCES .............................................................................................................................45
Topic of research :- Customer Loyalty program and reward schemes inVictoria secret companyTASK 11.1 Formulating Research project specifications Customers are most significant resources of an organization and they provides financialrevenues and profitability to the business (icholson and Oliphant, 2014). In order to attractcustomers, effective products should be provided to clients. It helps the organisation in order tomaintain connection. It is vital that better and effective services should be offered to theconsumers so that they can be attracted towards selling the products and services of the entity.Consumer loyalty programs supports for retaining regular customers and enhancing commitmentfrom occasional buyers. Needs and preferences of the buyers should be considered so that theirloyalty can be gained and it will help for gaining competitive advantage for the business. Present study is based on Victoria Secret Company which is a leading organization of theworld. Victoria's secret considered as an American designing and manufacturing company. Theyare providing lingerie for women's, cosmetic items and many more things are selling. They areserved in different areas of various nations that assists to frame ideas and opinion of key people.They expand their business continuously with implementing finance in different areas. It offerssuperior quality goods to the consumers and it aids for gaining loyalty of buyers. It is a leadingmanufacturer and marketers of consumers goods and it sells women-wear and beauty productsthat are offered by the company. Along with this company also offers designer clothing productsand millions of consumers are using the products that are being offered by the company.Customer loyalty programs that are offered in the entity are well designed and developed so thatlong term loyalty and commitment from buyers should be gained. INVESTIGATION GOAL AND ACCUSATIVEGoal :- Goal of present research is identify effectiveness of clients loyalty along with rewardschemes in order to retain clients in Victoria secret company.Research objectives :- To understand the concept of Consumer loyalty and reward schemes. 1
To analyse the effectiveness of customer loyalty and reward schemes in improvingcustomer retention adopted by Victoria Secret company.To recommend ways that could be used for improving customer services throughConsumer loyalty and reward schemes in Victoria Secret company.Research questionResearch questions that will be used for conducting this study is as follows :- 1- Explain the concept of Consumer loyalty and reward schemes?2- Identify and analyse the effectiveness of customer loyalty and reward schemes in improvingcustomer retention adopted by Victoria Secret company factors that gives impact on thecustomer loyalty and reward schemes ? 3- Recommend ways that could be used for improving customer services through Consumerloyalty and reward schemes in Victoria Secret company? 1.2 Element contributed for the selection of investigation project.Various factors that are associated with the selection of investigation of project. Some of themare following:Various factors that are associated with the selection of investigation of project. Some ofthem are following:Interest: I am interested in analysing client loyalty in respect to take reward scheme. Ihave high interest in this area as it will assist me in enhancing my knowledge. Therefore, thisresearch project was undertaken. Experience: The present research aids to develop my understanding with strategies whichcould be implemented to take high quality services at workplace. It will be helpful in increasingmy experience. This is one of the factors due to which the research project was selected. Explore: With the help of present experience, I can explore about this topic that assists toenhance effective results in the organisation. This topic explores positive results at workplaceregarding objectives of research.Benefits: The present research assists to create benefits to analysis needs and requirementof client in chosen business environment. They will be able to identify customer perceptiontowards products and services. Hence, the organisation provides good according to service users'requirement.2
Resource availability: Before conducting research I have enough finance and humanresources' availability that assist to carry it. Hence, the selected topic has been taken to analysiscustomer loyalty with reward scheme. Rationale of study The purpose of the study is to study Consumer loyalty and reward schemes on customerservice at Victoria Secret company. Customer provides financial revenues by purchasing theproducts and services that are sold by the firm. It is vital that needs of the consumers should bemet so that their loyalty could be gained. Consumer loyalty programs support for selling largeamount of products and profitability of the company can be enhanced through this. EvaluatingEffectiveness of consumer loyalty program aids for identifying weak performing areas and it willalso support for making improvements in the existing reward schemes that organisations areproviding. This report is based in order to identify goals of existing customer loyalty programsand reward schemes in Victoria Secret company. It will expedites for identifying the factorsthat gives impact on the customer services that are offered by the organization. 1.3 Critical review of selected research topic Literature review Theme 1 : Concept of Consumer loyalty and reward schemes. As per the view of (Loebl, 2014), consumers are shopping the products quickly becomingpast and e-commerce in respect to determines interaction with different businesses. Due tomobility explosion of the past years, online concept will be develops that could be impact onchanges in consumer habits. In respect to engage with customers, their purchasing habit need tobe know by the organisation. However, (MARTIN, 1998) argued that in respect to look towardsbehaviours of modern customer, issues need to be solved regarding consumers demand andrequirement. In this way, it has been identified that changes in relationship of customer andretailer, consumer perhaps with interesting results. According to Nicholson and Oliphant, (2014) Consumer loyalty program is a unique andeffective mechanism for identifying and rewarding loyal customers of business. In this methodpoints are collected by buyers as per the scale of their purchase and it assists the buyer for gettingadditional benefits for repeat purchase that is being made by them. Loyalty points are used bypurchasers for next visit that is being made by them. Customer services is defined as provision ofservices by an organization to the buyers before, during and after purchase. Success of any3
organization depends upon level of its services and loyalty of buyers can be gained by offeringthem superior class services. Kotler and et.al., (2015) has mentioned that companies should givefocus on making improvements in their loyalty programs so that better values can be provided tothem. It is an act of meeting the needs and preferences of consumers so that they can be offeredthe best products as per their requirements. Along with this it is an activity that is related with meeting the requirement and needs ofbuyers. Sheth and Sisodia, (2015) has mentioned that customer loyalty programs that are beingintroduced by the company aids for attracting the consumers towards making repurchasing.These types of programs encourage consumers for repurchasing the goods so that benefits ofadditional benefits that are offered by the firm can be taken. It makes the buyers loyal for doingrepeat purchase with the business. Along with this, there are various types of loyalty programsthat are offered by the companies and it includes rewarding consumers with offering free anddiscounted products or services that are being purchased by them. With this, some other benefitsare also rendered to buyers under the consumer loyalty programs. Chun and Ovchinnikov, (2015) has mentioned that some companies send the discountingcodes and coupons to their existing consumers with objective to entice them to do business withthe company again. In regard to this, competitive activities are also been organized andconsumers are provided with the chance to win attractive gifts under them. With this somecompanies make use of providing consumers with the extra benefits so that they can be attractedto make additional purchase with the firm. Hwang and Kandampully, (2015) has defined thatnowadays some firms are pledging from buyers to donate money towards charity purpose.Likewise rewards are also given to buyers to add more number of consumers for selling goodsand services online. It aid in order to enhance present base of clients to increase profitability andgrowth of company.Brynjolfsson, Hu and Rahman, (2013) has defined that rewards needs to be relevant sothat actual value can be delivered to purchasers. Customer loyalty programs and reward schemesgives a major impact on the practices and procedures that are followed in an organization.Overall performance of the company also gets influenced due to the effective services that isbeing offered by the company. Competition is getting high and globalization has made itessential to adopt innovative approaches so that required goals and objectives of the companycould be achieved. 4
Wilson, Zeithaml and Gremler, (2012) has described that satisfied customer is asset forthe entity and gaining contend of buyers helps for making improvements in financial revenuesthat are received by the firm. An organization that offers attractive loyalty programs is likely toGaines competitive advantage over the rival firms and it supports for making enhancements inexisting market share of the organization. Better and effective customer loyalty and reward program vital to ensure that a companycompete effectively in market. Along with this it is essential that better experience should beprovided to customers and rendering effective services to the buyers. Shirsavar and Fashkhamy,(2013) has mentioned that purchasers are willing to pay more for gaining better experience andcompanies can focus for getting loyalty of buyers. Ongoing client relationships can be improvedand it will help for taking support of buyers. Retaining the existing consumer base of the entitywill become easier and it will aid for making enhancement in existing consumer base. Loyaltyprograms also supports for making positive improvements in relationship marketing and it willaid for gaining economic rewards in terms of highly satisfied customers for the business. Theme 2 : Factors affecting Consumer loyalty and reward schemes As per the view of (Kleidon, 2017), there are various factors exist that assists to identifycustomer services. Most pleasant experience with the person can make effective food products orshopping delays. It includes factors such as perception, satisfaction level, views, etc. On theother hand, Hwang and Kandampully, (2015) stated that there are so many elements whichcreates impact on their purchasing power and profitability at workplace. It includes convenience,expectations and customer services. This is because, these elements assists to get properknowledge regarding effective results at workplace.According to Roshani, Enayati and Lashkary, (2013) customer loyalty scheme andreward programs is an effective tool that could be used by organizations for enhancing theirexisting services and performance. There are diverse range of factors that gives impact on thecustomer loyalty programs that are being offered by an organization. Along with this, it is criticalthat impact of these elements should be considered while designing services of the entity. Moreover, it is required that companies should give focus on assessing the elements thatgives impact on the reward schemes that are being offered by the firm. Mishra and Sinha, (2014)describes that lack of proper communication is also a significant factor that gives impact on thecustomer loyalty programs that are provided by the organization. It is essential that buyers5
should be well informed about different type of reward schemes that are being offered by thecompany. If there will be lack of proper communication channel than it will become difficult forachieving the required marketing objectives through loyalty programs that are being offered bythe organisation. Yoshida, Heere and Gordon, (2015) has defined that there are some keyattributes of consumer loyalty programs and it comprise of quality, reliability and performance.Buyers whose repeat purchasing is driven by quality of product are more likely to show highpredisposition towards the brand. These types of consumers are less likely to be affected byincrease in price of the products and low price elasticity. It is vital that loyalty programs that are being offered by the firm should be designedconsidering individual requirement, needs and preferences of buyers. Faff, Carrick and Tunny,(2017) has explained that consumer centric approach provides a innovative framework that couldbe used by organization for understanding the main criteria for the consumer choice. Purchasefrequency and changing purchasing behaviour are also some major factors that gives impact onthe effectiveness of loyalty program that is being introduced by the firm. Chaffey, Smith and Smith, (2012) has explained that Proper monitoring and evaluation ofpurchasing frequency assist for making it ensure that competitive advantage should be gained forthe business. Service offered at the organization is also one of the major indicator that leadtowards giving impact on the overall effectiveness of the consumer loyalty programs. Loyaltycards and destination of consumer place are also included in the category of major factors thataffect the efficiency of the loyalty programs. Wu, (2013) has defined that It is imperative that companies should have expertprofessionals so that they can deliver better and effective services under the consumer loyaltyprogram. It is requisite that individuals who are responsible for providing services to buyersshould be capable enough so that they can accomplish the required goals and objectives insuccessful manner. Along with these companies have opportunity for taking advantage of loyaltyprograms to retail consumers and receiving commitment from them. Theme 3 : Methods for improving customer services through study Consumer loyalty andreward schemesKorschun, Bhattacharya and Swain, (2014) has described that attractive and effectivecustomer loyalty programs that are provided by an organization supports for retaining the6
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