Consumer Loyalty and Rewards Schemes Report
Added on 2020-07-22
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RESEARCH PROJECT
Table of ContentsPART 2............................................................................................................................................11.1 Research project outline...................................................................................................11.2 Factors contributing to research project selection............................................................21.3 Literature review..............................................................................................................21.4 Research methodology.....................................................................................................41.5 Gantt chart........................................................................................................................62.1 Resources efficiency.........................................................................................................72.2 Questionnaire....................................................................................................................82.3 Recording and collection of data......................................................................................93.1 Research evaluation technique.......................................................................................103.2 Analysis of data..............................................................................................................103.3 Conclusion and recommendation...................................................................................134.1 Covered in power point presentation..............................................................................14REFERENCES..............................................................................................................................15
PART 21.1 Research project outlineTitle – Assessing that whether consumer loyalty and rewards schemes actually work - case studyof H&MINTRODUCTIONClients loyalty is no more a choice but a required element to be present in every businesstype. As competition in the external market has raised to a great level it has increased pressure onvarious companies to provide their customers with the best quality and effective outputs.Customers needs to be loyal towards business so that long term relations can be maintained withthem (Allaway et.al., 2011). As H&M is a retail company and is dealing in products that hasmany substitutes available with them it becomes more crucial for them to adopt various policesthrough which strengthening of connections with potential consumer can be made possible.Increase in total sales is the direct benefit to cited company if it is successful in implementing theloyalty programmes with the external surroundings.BackgroundH&M is a very huge organisation Sweden multinational company. Its turnovers are greatthat makes it third largest retailer business unit. Its founder took various efforts towards makingit best. Initially it was opened in just one city but gradually it stared expanding result of which isthat now it has more than fifty stores all over the country. It is dealing in products likestationary, garments, furnishing, playing items petroleum etc. With the passage of time more andmore new entries has taken place in same industry which increased pressure on it to makecontinuous improvements. For the same it is of vital importance that H&M gives enoughimportance to the consumer loyalty reward programmes which contributes in making good holdin market.Goal and ObjectivesAim – To understand weather the clients commitment and rewards schemes actually work or not.ObjectiveTo recognise the importance of loyalty in business worldTo evaluate the Role of reward schemes in H&MTo identify connection between employee reward scheme and customer faithfulness.1
Research Questions How customer loyalty towards is important for H&M ?What is the relation between profit and consumer trust?Does reward schemes in organisation work for H&M1.2 Factors contributing to research project selectionIn order to make continuous improvements in the existing business researches are doneso that data can be collected for the areas which needs to be improved. Selection of researchprojects is done after analysing need for same. Though there are other concerns also which couldbe a part of study but to determine whether consumer loyalty and rewards schemes actually workor not is of vital importance as this will have major effect on cited companies profitability. If it isrealised that even after giving much efforts to maintain effectiveness and efficiency in businesscompany is not able to achieve the desired goals and objectives than to it becomes necessary toidentify reason behind this cause (Bell, 2014). As consumer is a king in market it becomes veryimportant to work towards providing them maximum satisfaction. Therefore in order to analysethe grounds on which clients judge any company is necessary so that accordingly changes can bemade in the existing practices of H&M. No matter how much company is investing in itsoperations if the ultimate user finds that cited company is not loyal towards them they will notappreciate companies pain taken towards completing raw material into finished goods..Therefore in order to remove this drawback research is conducted which can be utilised bymanagement of cited company.1.3 Literature reviewAccording to Bijmolt, Dorotic and Verhoef (2011) being loyal with customers is of vitalimportance as it helps in doing more business. When companies are successful in maintainingtrust with their clients more transactions are encouraged and long term relation is establishedwith them. Once it is assured by the consumers that products and services provided by thecompany are of good quality than they do more investment in buying their products as they knowthat they will be getting high satisfaction after buying that brand. If it is absorbed that companyis not loyal with their clients than it will have negative impact on its performance as once theyidentify that company is not offering what they actually promise than it sales get reduced in thefuture. Author suggested that loyalty is the prime requirement for establishing effectiveconnection with clients and experiencing growth and development. In the words of (>>>>>>)2
maintaining faithfulness with different consumers also reduce total cost of company as once theyare familiar with the products and other services of organisation they demand less attention andassistance by the working employees and help themselves. Instead of asking for customersupport services sometimes they even help other consumer in solving their quarries while theirvisit for buying in stores. Author gave emphasis on how this way an easy working surroundingsare developed as managers do not work under the pressure. Stress of maintaining price efficiencyalso get reduced through this concept as once clients are satisfied with the product of citedcompany they do not compare it with other options available in market which is a very positivefactor for H&M as it has got many substitutes in external environment Brinkmann (2014)). Withthis there are also many other advantages of consumer commitment programs which are givenaccording to Chen and Pearcy (2010)) who highlighted the advantages of same in context ofexperiencing growth and expansion. Writer says that when clients are loyal with the companythey give an effective feedbacks and honest suggestions which can be further utilised for makingimprovements and innovations in the existing products. As clients utilise the offerings more oncontinuous basis they are more aware about its positives and negatives which can be utilised as aframework for production department to remove these flaws. This will increase customersatisfaction and utility of same commodity hence total output will get raised which will furtherhike the total sales. He also said that consumers which are loyal towards the company act as abrand ambassador. Apart from advertisement or other marketing mouth publicity is the mosteffective. It is not like clients share only their bad experience but also tell others about their goodexperience which they have with a particular brand. Success when discussed influence moresales and demand in market which is positive move for given enterprise. As per the views of (Cross and et.al., (2010) no person in business work for free or givehis full efforts without expecting anything in return specially not in H&M which is not avoluntary service industry. Hence it becomes important that they are given the requiredincentives in return so that the productivity of enterprise remains ineffective. Rewards are thereturns which are given to the employees working with an organisation with an objective ofearning something in return which can be monitory or non monitory. Incentives can be utilisedfor motivating and inspiring different employees to work with their maximum dedication aswhen they know that their efforts will be recognised than the feel motivated. Apart from this italso bring competition among various employees as all in order to prove themselves better they3
improve quality and efficiency so that they get more name and fame in business. Dorotic,Bijmolt and Verhoef, (2012) defined rewards as a measure to calculate the effectiveness ofvarious employees as their performances are first figure out and than accordingly decisions aretaken regarding selection of best employees. This way management can also gets to know aboutits strengths and weaknesses and accordingly take corrective actions for the areas which need tobe improved or modified. Eilks and Markic (2011) says that system of reward giving attractsmore employees towards the business and also helps in reducing the turnover ratios as whenlabour is paid enough for their pains and efforts they feel more satisfied and accordinglycontributes in growth of business. This way it becomes a tool to achieve organisation goals. Bestlevel of each employee is identified through motivating them which further help in decisionmaking regarding decision taking for appraisals and planning promotion programs for enterprise.According to Gómez, Arranz and Cillán (2012) consumer loyalty and rewards schemes isan important tool for achieving organisation growth. For any business unit customer andemployees both are of vital nature as productivity and profitably depends so much on them. Ithas to be ensured that loyalty is maintained so that long term benefits can be observed inbusiness and also employee should be paid enough to get the work done in required manner.1.4 Research methodologyThis is process to collect data from past or present to make a deep investigation in any matter. It includes many techniques of research like surveys, interviews and more others. This is used to make decisions regarding any specific matter. Concepts and different theories of collecting the data are undertaken which are related to the subject matter. The method should consist of the adequate detail regarding this context (Mackey and Gass, 2015). Every data and information contained in the research should be clear to understand and represents fair view. Following methods are to be utilised for this research report : Research design : Descriptive research design is being taken for the report because it provides a detailed description of every facts and data. This can not be quantitative. It throws light on problems of current scenario through data collection process. It provides detailed description of asample population. It is very much important for the non quantitative topics for a described details and analysis. It explains that what is it and how is it so.4
Research approach : In this research report deductive reasoning is taken because in this approach a assumption or hypothesis is being developed that is based on a existing theorem and then a strategy is being designed to check the assumption. In the context of customer loyalty & employee relation this theory is considered. In the approach theory is tested against the observations (Taylor, Bogdan and DeVault, 2015). There less time is used for study as comparedto inductive approach. It is a risk free reasoning. It is a approach from general to the specific. It deals with the assumed theorem their testing and the confirmation.Research philosophy : Interpretivephilosophy is used in this research report. Meaning of this doctrine is to interpret the elements used in study. Researchers of interpretive assume that reality can be accessed only through societal construction like language, instruments, shared meanings and consciousness. This humanity can be developed on the basis of evaluation of positivism in science. Researchers are treated as social actor and it is important for them to admire deviations between people (Brinkmann, 2014).Data collection : Under customer loyalty and employee relation research report both primary and secondary data is being used. Primary data is something that is collected by the researcher at his own. For example questionnaire is being used here. And secondary data is the one which is already mentioned somewhere else and now is being used for the second time. Newspapers, books and journals are being taken as the secondary data here (Silverman, 2016). In questionnaire a different series of questions is being prepared by the person who is making research. And from journals and other methods of secondary data information is being collected.Sampling : Random sampling method is used in this research report. 20 employees and customers are taken for the inquiry. Random sampling means taking any of the person out of a group of may people and then examine or analyse them. Different random employees are chosen for the answers of the questionnaire regarding subject matter. And same method is used with the customers. This procedure is bias free because all persons are treated equally at ate time of selection for sampling (Silverman, 2016). No one is treated specially. whole population is judgedby some random selections. The result or outcome of research is only based on the conclusion arose by the sampling.Data analysis : Qualitative analysis is made in this research report. Element will be interpreted in different themes. Codes are to be given to different data. After the categorization of coding themes, patterns and relationships are identified. At the last stage the data is summarised. 5
hypothesises are checked and useful quotations can be inserted in the report. Hence data will be analysed (O'Leary, 2013).Validity and reliability : Collected information is reliable when different researchers use thesame method of research and find same conclusion from such. Problems relating to reliabilitycrops up in different forms (Meyer, 2013). Validate the information means while exploring thecustomer loyalty and employee relationships scientific methods were used and all were accurate.It is to be examined that right methodology is being used for said purpose. Threats should beminimised as much as possible but it is not necessary to eliminate all threats.1.5 Gantt chartGiven below is the time taken by each activity performed while conducting a researchreport. Depending upon nature and type of work timeline for each varies which is presentedthrough a Gantt chart.Task/Period12345678910111213141516SuggestinginvestigationMaking goalandobjectivesOrganisingliterarystudyInvestigatingmethodAssembling6
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