Factors affecting customer retention in Anytime Fitness, Sunshine Coast

Research Tool
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Table of Contents
REPORT TITLE....................................................................................................................................................4
INDUSTRY PARTNER........................................................................................................................................4
RESEARCH PROBLEM......................................................................................................................................4
RESEARCH AIM..................................................................................................................................................4
RESEARCH QUESTIONS(S)..............................................................................................................................5
LITERATURE REVIEW......................................................................................................................................6
PRICE...................................................................................................................................................................6
EQUIPMENT VARIETY..........................................................................................................................................6
SERVICE QUALITY...............................................................................................................................................7
CUSTOMER SATISFACTION...................................................................................................................................7
COMMUNICATION STRATEGIES............................................................................................................................7
BRAND IMAGE.....................................................................................................................................................8
CONCEPTUAL MAP............................................................................................................................................9
RESEARCH DESIGN...........................................................................................................................................9
SAMPLE...............................................................................................................................................................10
RESEARCH TOOL.............................................................................................................................................10
SURVEY QUESTIONNAIRE..................................................................................................................................11
REFERENCE.......................................................................................................................................................18
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Report title Factors affecting customer retention in Anytime Fitness ,Sunshine Coast
Industry
partner
Anytime Fitness Australia is based in the Sunshine Coast, Caloundra and is an Australian
gym and fitness centre providing training and fitness services to the customer using 24-hour
model. The company has 7866 staff including coaches, instructors and nutritionists. It has
many branches across Australia with more than 500 branches of well-equipped gyms and
fitness locations around the country. It provides a range of services in body fitness ranging
from personal training, group training and corporate exercise programs.
Research
problem
One of the major problem faced by the selected Anytime fitness is attrition of customers.
According to the management team a whopping 20 people out of 653 members have chosen
other competitors over the past month of July. This shift over the past year has affected the
overall profit margin of the business and reduced from 2, 25600$ to 186289$ over the past
two financial years.
The falling market share and lack of returning customers is a sign of falling scope for sales
and market dominance, the company needs to determine sources through which it can retain
its customers and increase its market share.
Research aim
The research aim is to know the reason why the sale revenues are declining and why the
customers are choosing other facilities and how the management tackles this issue.
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Research
questions(s)
 What are the main factors that are causing the decline in customers Sunshine Coast
Anytime Fitness?
 What the management in Sunshine Coast Anytime fitness could do to retain its
Existing Customers?
Literature
Review Through this study, the focus has been places on examining the impact of price, equipment
variety, service quality, customer satisfaction, and communication strategy and brand image
on the customer retention.
The growing awareness and benefits of the need for physical activity has drawn involvement
of larger number of people with the fitness and wellness centres. While there has been
increase in the number of fitness centres and clubs, the customer primarily seeks clubs that
fit their specific needs in terms of quality and quantity. Despite the rise in the number of
customers, not all the centres have been able to retain the customers and sustain the business.
From the business perspective, it critical for the companies to understand the factors that
might be affecting the customer retention. Some of the most prominent cause of failure to
retain customers are lack of satisfaction, service quality, pricing, and the availability of
equipment, the pricing of the services and the brand image of the centre. These are discussed
by various studies
Price
Trasorras et al. (2009) says –”Price can be a sensitive topic among professional service
providers. The fear of attrition or mass exodus of clients if prices are increased is constant
concern. This research indicates a strong linkage between price and customer
retention(p625)”
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