Report on Customer Loyalty and Rewards Scheme
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Added on 2019-12-28
Report on Customer Loyalty and Rewards Scheme
Added on 2019-12-28
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Does consumer loyalty andrewards schemes actuallywork?
Table of ContentsPART 1............................................................................................................................................11.1 Introduction......................................................................................................................11.2 Factors that contribute the research project selection.......................................................11.3 Literature review..............................................................................................................21.4 Research project specification..........................................................................................31.5 Gantt chart........................................................................................................................5TASK 2............................................................................................................................................52.1 Resources which are required to carry out research.........................................................52.2 Research investigation......................................................................................................62.3 Record and collate data....................................................................................................8TASK 3..........................................................................................................................................103.1 Research evaluation techniques......................................................................................103.2 Data analysis...................................................................................................................113.3 Conclusion and recommendations..................................................................................17TASK 4..........................................................................................................................................18Covered in PPT.....................................................................................................................18REFERENCES..............................................................................................................................19
PART 1TITLE: To identify the impact of customer’s loyalty and reward scheme on the choices ofpeople- A study on TESCO. 1.1 IntroductionEvery enterprise performs their operations in more effective way so that they can fulfilthe needs and demands of the people. For this, companies are using different kind of strategiesand approaches so that they can achieve success in the market. The manager of an entityconducts a research in the market so that they will be able to know about the different choices ofcustomers (Schumann, Wünderlich and Evanschitzky, 2014). They are using some of themarketing activities so that brand awareness can be increased in the market. Along with this,some firms are also using the reward scheme in order to attract them towards their services sothat their overall profitability level can be increased. The present report is based on the customerloyalty and rewards scheme and how these may affect the choices of the people. Tesco is a retailindustry which perform their operations in UK. In the current report, some of the methodologiesare used by the researcher so that overall impact on service user’s choices can be identified.Along with this, primary and secondary sources are used in order to collect the data fromdifferent sources. 1.2 Factors that contribute the research project selectionNow a days, organizations are focusing on the different needs and requirements ofpeople. So, for this they conduct different kinds of surveys at the marketplace. There are someloyal customers who purchase the services even if prices of the services are get increased. Thesepeople are brand loyal who consume the goods only of their respective firm (Meyer-Waarden,2015). There are some factors which are considered while conducting overall research project. Inorder to complete the research in an appropriate manner, problem needs to be identified thenonly success can be achieved. These factors play an important role in order to select anappropriate research project so that aim and objectives can be achieved. Customers choices can affect the operations and productivity level of organizations.Companies have to more focused on the demands of the people so that their satisfaction level canbe increased. So, for this reason this topic has been chosen. 1
When research problem in an effective manner than through this overall researchquestions can be resolved. Along with the problem, there are some other factors which are vitalat the time selecting the project. People, phenomena and programs are also essential for theproject. On the basis of these, the overall research aim and objectives can be achieved. Byconsidering these, the research problem can be solved in more successful manner. 1.3 Literature reviewThere are many customers who prefer different products and services so it is theresponsibility of firm to fulfil the needs of people. Some organisations offer rewards andincentives to their consumers so that their overall satisfaction level can be increased as this mayhighly affect the choices of the people (Evanschitzky and et. al., 2012). In this, different authorsgive their different opinions that how customers loyalty and rewards can affect their interests.Through this, research gap can be identified in between the past and present project study. Customers loyalty and rewards schemesAccording to the views of Tanford, S., Raab and Kim (2011) there are some customerswho prefer to purchase products and services of one organisation rather than any other. For this,some of the enterprises conduct programs at the marketplace so that they will be able to gain theattention of the people. On the basis of these, retail industry will be able to retain their consumerstowards their services. So, in this manner overall competitiveness can be achieved as compare toother rival firm. Kopalle and et. al., (2012) stated that some of the loyalty programs areconducted by the manager of Tesco so that sales can be increased. This may affect the businessorganisation in more positive manner as through this large customer base can be build. Sometimes, loyalty programs provide special kind of membership to the people so thatthey can access the new products. It has been analysed by Tanford, Raab and Kim (2012) that anindividual who has membership card they are liable to get some extra benefits or coupons.Through this, the overall satisfaction among the people can be increased. Customers choicesIn this dynamic world, customer’s choices are changing from time to time so it is theresponsibility of manager to identify the changing needs and demands of people. As per the viewpoint of Gómez, Arranz and Cillán (2012) retail industry can use loyalty programs at themarketplace so that customer’s attention can be gained. Brand loyal person will purchaseservices from the respective organisation so company has to provide quality services with2
flexible prices. Through this, they can retain their service users and that can lead towards thesuccess. Impact of customer’s loyalty programs on their choiceDorotic, Bijmolt and Verhoef (2012) says that customer’s loyalty programs affect thechoices of an individual in positive manner as through this the overall sales can be increased.There are some of the loyalty programs that are conducted at the marketplace and these are likepoint system, tier system, membership card, non-monetary programs etc. These can lead anenterprise towards success and high profitability. It has been analysed by Hafeez andMuhammad (2012) that customer’s satisfaction is an important factor which can lead anenterprise towards success. So, on the basis of the programs the overall satisfaction level of thepeople can be increased in more effective manner. By using the loyalty concept, the long termrelationship can be established in between the customers and enterprise. So, in this manner thechoices of customers are get affected and this is beneficial for Tesco. 1.4 Research project specificationAim: To identify the impact of customer’s loyalty and reward scheme on the choices ofthe people- A study on TESCOResearch objectives: There are some of the research objectives of this current projectwhich are as follows:To identify the effectiveness of customer’s loyalty and reward scheme.To analyse the impact of loyalty programs on the choices of the customers. To determine the link between the loyalty programs and customer’s choices. To recommend some ways so that Tesco can gain the competitive advantage in themarket as compare to other competitors. Research questions: Some of the research questions are stated below:Q1. What is the effectiveness of customer’s loyalty and reward scheme at the workplace?Q2. What is the impact of loyalty programs on the customer’s choice?Q3. What is the relationship between consumer’s choice and loyalty programs?Q4. What are the different ways through which competitive advantage can be gained?Research methodologyResearch methodology is a section which explain the different methods and tools that areused by the researcher in order to complete the project in more successful manner (Flick, 2015).3
It is a kind of process through which overall questions can be resolved and due to this objectivecan be achieved. On the basis of this, it can be analysed that how customer’s loyalty and rewardscheme can affect the choices of the people. It is the responsibility of researcher to select anappropriate approach so that goals can be accomplished. These methods are as follows:Research design: There are various research design techniques such as descriptive,correlation, explanatory and so on. Here, in the present study descriptive has been used by theresearcher so that overall understanding of the loyalty programs and customer’s choices can beunderstand (Smith, 2015). Through this, overall link between the factors and their impact on thecustomer’s satisfaction level can be identified. Research approach: Inductive and deductive research approaches are used in theresearch projects. In the present report, inductive approach has been used so that differenttheories can be formulate. On the other hand, in deductive the hypothesis is created and on thebasis of that overall goals can be achieved (Anney, 2014). Through this, the overall data can becollected via questionnaire that how their choices are get influence through loyalty and rewardsprograms. Research philosophy: This helps the researcher in order to increase their knowledgeabout the loyalty programs and customer’s choices. There are two types of philosophies such aspositivism and interpretivism (Bauer, 2014). In the current study, interpretivism has been used bythe researcher so that different human perception can be identified. Through this, accurate datacan be collected of the customer choices and their satisfaction level. Data collection techniques: In the current research project, data has been collectedthrough primary sources such as surveys, observation and interviews. In primary, survey isconducted at the marketplace in order to identify the needs and demands of people. Along withthis, information is also collected from secondary sources via books, journals, articles, internet(McCusker and Gunaydin, 2015). So in this manner, it can be identified that how customer’schoices are get affected by the loyalty programs. Sampling technique: Sampling is a kind of technique that is used in order to extract asmall sample from large population and overall research will conduct on the sample. Here, in thecurrent research random sampling technique is used so that different views or opinions can beidentified (Kilpatrick, 2014). Along with this, 20 sample size has been selected for this current4
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