Customer Loyalty Programs Analysis

This assignment examines the impact and effectiveness of customer loyalty programs. It requires you to research different types of loyalty programs, understand how consumers perceive and engage with them, and analyze the challenges businesses face in implementing successful programs. You'll need to consider factors like program design, reward structures, consumer motivations, and the overall impact on business performance.

Do consumer loyalty and rewards schemes actually work?
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Contents
Part A:.........................................................................................................................................3
1.1. Formulate and record possible research project outline specifications. In this
question, you need just write an ‘Outline’..............................................................................3
1.2. Identify the factors that contribute to the process of research project selection. In
other word, the need to discuss the influential factors that determine which ‘research
project’ should be elected.......................................................................................................3
1.3. Undertake/write a critical review of key references about ‘your research topic’ and
‘influential factors for choosing the topic. In addition, you should write positive and
negative aspects of your chosen books, journals, or the Internet sources; and support your
argument by citing from valid academic sources...................................................................4
1.4. Produce/write a research project specification. Write a brief entitled ‘Research
Project Proposal: An investigation into ‘YOUR TOPIC’. You need to write approximately 3
lines for each section of this Research Project Proposal........................................................5
1.5. Provide an appropriate plan and procedures for the agreed research specification.
Your plan can be presented in tabular or graphic form (Gantt chart) to show what the main
activities/ stages of your research are, and how long each activity would take to complete..6
Part B:.........................................................................................................................................7
Task 2:........................................................................................................................................7
2.1. Match resources efficiently to the research question or hypothesis. You should explain
(A) what are the resources required to carry out your research? (B) What is the relationship
between ‘research resources’ and the ‘research question or hypothesis’?..............................7
2.2. Undertake the proposed research investigation in accordance with the agreed
specification and procedures. In this question, you need to design and distribute a
‘Questionnaire’ among at least 20 respondents to collect data on your research topic..........7
2.3. Record and collate required data. Record the collected data from participants in the
form of a frequency table that shows the aggregation for each question. You can use graphs
or a frequency table................................................................................................................8
Task 3:........................................................................................................................................9
LO3:...........................................................................................................................................9
3.1. Use appropriate ‘research evaluation techniques’. Which types of evaluation
(formative or summative) are are appropriate for your research? Why?...................................9
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3.2. Interpret and analyse the results in terms of the original research specification by
using ‘Frequency’ and/or ‘Percentage’ calculations...............................................................9
3.3. Make recommendations and justify areas for further research. You can determine at
least three new topics/areas for further research...................................................................10
Task 4:......................................................................................................................................10
LO4:.........................................................................................................................................10
4.1. You are present the results and recommendations of your research in a report format
suitable for presentation to an organisation..........................................................................10
References................................................................................................................................11
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Part A:
1.1. Formulate and record possible research project outline
specifications. In this question, you need just write an ‘Outline’
Research questions
1. What are the factors that influence the customer loyalty through the reward system?
2. How are the strategies developed and introduced for retaining the clients?
3. What are the policies adopted by the companies to retain the loyal customers?
Research objectives
The research objectives are –
1. To examine the strategies that is followed for introducing the changes relevant for
retain the clients
2. To introduce a new policy for retaining the clients
3. To implement new policies for improving the customer services and the quality
rendered to the clients.
Aim
The research aim is to find how the customer loyalty can be improved and the clients can be
retained by the companies. These strategies are developed and implemented for sustaining the
tough competition. Through the policy changes, the authorities implement accurate changes
that are required for increasing the business activities.
Specifications
The research work concentrates on collecting and analysing the information that would be
used for the access of the information relevant for the analysis of the details.
This research analyses the impact of the consumer behavior on different research topics like-
a. Does customer loyalty and the reward system actually works for the companies
b. Consumer loneliness, and how does this factor impact the choice and the loyalty of
the customers
c. Do the social media impact the customer .buying preferences?
The opine of the project would include the below mentioned points –
1. Introduction – In the introduction part, the research task that would be considered for
the analysis would be selected. The research task selected for this work is based on
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‘Does customer loyalty and the reward system actually works for the companies.’ This
analysis is done to find the impact of the customer product preferences and its
relationship between the reward and the loyalty system.
2. Literature review – In the literature review part, an in-depth analysis is conducted to
find how the buying pattern of the buyers can be influenced by the company. The
analysis is also done to find how the product sales are based on the loyalty and
customer reward system introduced by the management. A detailed analysis about the
product sales and its relevance is being conducted by the researcher to find different
views about this research work (Deighton, 2000).
3. Research methodology – Primary research method is being considered for the fact
collection. In this method the views presented by different participants are examined,
and it is presented in a systematic manner. Through this research method an in-depth
analysis is done to find how the buying pattern of the customers is impacted through
the reward and the loyalty program.
4. Findings – The findings are based on the sampling method, where the views of the
members randomly selected from the research is being analysed. In the finding part,
the views of the members are presented in the graph format, where the details are
examined and accurate measures are introduced for the collection and analysis of the
infraction.
5. Conclusion – The overall findings of the research work is being included in this part
of the research work. Through such findings the facts that would be found for the
research purposes with are included.
1.2. Identify the factors that contribute to the process of research
project selection. In other word, the need to discuss the influential
factors that determine which ‘research project’ should be elected.
The research work is conducted to find how the reward system introduced by the
management of the company influences the buying pattern of the clients. Through this
analysis, the researcher attempts to collect the facts that would help in analysing the type of
changes to be made for improving the product sales. Through an in-depth analysis the facts
included for the research purposes are examined. The major factors included for the research
work includes identifying different factors that is being used for the research purposes.
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External factors like the customer preferences, factors including the buyer’s attitude, and
price variations are some of the relevant factors that influence the buyer’s attitude. The views
presented by different authors are examined and presented in the detailed inner. Through such
analysis the research work attempts to find the important factors that are associated with the
product purchases and sales process.
The other influencing factor that is being analysed through this research work is related to the
examination of the discounts provided to the clients, who shop with a particular company.
Through this analysis, the members attempt to find the exact reasons that encourage the
buyers to shop from the company. Through this analysis, it is possible for the management to
introduce new processes or methods that could be used for influencing the buyer’s attitude to
shop with the client.
This analysis is also done to find if the product quality or discounted prices are the factors
that influence the buyer’s attitude to shop with a company. Through this analysis, the
management examines the relevance’s of adopting the right process that would be used for
attracting the clients. By including the views of different writers, the researcher attempts it
find how the product price and the service qualities can be integrated together to improve the
sales for the products. Through this analysis, it is possible for the authorities to integrate the
relevant method that would be used for increasing the business preferences and to attract the
clients (Agchi &Xingbo¸2011).
Factors resources
The factors to be used for the conduct of the research work include the fund collection and its
usage for the analysis. Funds to be sped n the research work are expected to be low, as the
details for the research work is collected from the primary sources. Information would be
collected and analysed for the research work, would be done internally.
Interest in the research area
The interest areas for the research work are to collect the facts that would be used for the
collection of the information that is being used for the analysis.
Information
The relevant information would be collected from the books, journals and other resources.
This information would be easily available for the researcher.
Better understanding
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The understanding of the research work is conducted to find the relevant information that
would be used for the conduct of the research work.
1.3. Undertake/write a critical review of key references about ‘your
research topic’ and ‘influential factors for choosing the topic. In
addition, you should write positive and negative aspects of your
chosen books, journals, or the Internet sources; and support your
argument by citing from valid academic sources.
The research topic was based on the customer preferences and the product value, including
loyalty and reward system to retain the clients. In this work, the major influencing factors that
attracted the clients to shop with the company are being examined. Companies adopt different
method Tao attract and retain the clients. One of the processes includes offering discounted
price and services to the customers. However, the quality of the products is also important as
it enables the management to easily get connected with the clients. While introducing the new
processes and methods the management develops and introduces new processes that would be
used for attracting the clients with the best possible services.
Research work was based on the journals and articles that were authored by Jochen Wirtz,
Anna Mattial, and May Lwin. The journal was ‘How effective are loyalty reward programs in
driving share of wallet?’ In this article the author examines the views of the customers,
expectable the product references and the likings to buy the products. Preferences of the
products are based on the product quality and the brand name. Customs also prefer to save
money, and this is possible by introducing the right processes for generating loyalty amongst
the customers. The authors have concentrated on analysing the importance of the reward
programs and the perceived attractiveness for the clients. Both these factors are quite
important as it helps in attracting the clients and in offering the better quality services to the
buyers. The reasons for the clients to switch over the company are examined. As per the
authors, price and service quality are the two important factors that impacts the being pattern
and behavior of the clients. The writers have investigated the direct relationship between the
customer loyalty program and the reward system. Through this analysis, the relevance of the
attitudinal loyalty essential for the product development and sales has been examined. Such
an analysis is quite important as it helped the management in determining the challenges
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involved with the product improvement and to increase the sales. Loyalty programs are
designed by the management to improve the relationship with the staffs.
To overcome the challenges it is quite important for the management to design new methods
and processes to offer the better quality services to the clients and to retain the members with
the company. The facts related to attitudinal behaviour is being examined by the writers to
understand the psychological attachment of the beers with the products and its prices. This
research was conducted to find the relevance of the reward programs and its relationship with
the product sales for the company. By introducing an attractive reward and loyalty system,
the management develops a plan to deal with the challenges involved with the product sales,
including developing the better processes for retaining the clients with the company.
Customers choose to select a store that offers the better serviced products at the lower price.
But instead of lower price, the buyers are interested in buying branded products at a
discounted price (Kannan & Bramlett, 2000).
Literature review
The information collected from the research work included joules and websites, and these
enabled the members to analyse the relevant information that would be used for the access of
the information. This information would be used for examining the consumer behaviour.
Benefits of this research
1. The direct relationship between the buyer’s attitude towards the products and its value
has been established by the authors.
2. The impact of the price variations on the sales of the products has been closely
investigated by the researchers to find how the product value for the company can be
improved.
3. The relevance of the attitude loyalty for the company and the clients has been
established in this respire.
Disadvantages
1. The authors fail to examine the elegance of the quality while establishing the
relationship between the product sales and the loyalty program.
2. This research or doesn’t analyse the importance of adopting the right process that
would be used for improving the sales.
3. There were effective information about attracting the clients through the marketing
and the promotional activities.
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1.4. Produce/write a research project specification. Write a brief
entitled ‘Research Project Proposal: An investigation into ‘YOUR
TOPIC’. You need to write approximately 3 lines for each section of
this Research Project Proposal
Research proposal
Research title: Does customer loyalty and the reward system actually works for the
companies
Introduction
This research work analyse the customer loyalty program and reward system introduced by
the company to attract the clients. An analysis is done to find how customers prefer to invest
in the product purchases and the external factors that influence the behavior of the clients.
Literature review
Kopalle &Neslin (2003) analysed the direct relationship that existed between the buyers and
the reward system introduced by the companies. Due to globalisation the availability of the
produces in the local market has increased. This improved the product options available for
the client, with different product expectations and willingness to purchase the products. To
improve the product sales, the companies introduced reward and the loyalty programme that
was meant to benefit the buyers.
Research methodology
The relevant facts for the conduct of the research would be collected through the primary
research method. Views of the 55 members would be included in the research process, where
the buying pattern and its relationship with the reward and the fact collection processes would
be analysed. Through such research method, the views of the members would be collected
and analysed for understanding the importance of the research work.
Sampling process
The sample size selected for the research process is 55 in numbers. This sample has been
randomly being selected for the conduct of the research process, and it enables the researcher
to collect and examine the data that would be used for the conduct of the research work.
Questionnaire method
The questions selected for the research process would help in the collection of the views of
the members included UN the research work. Close and open ended questions have been
encoded for the research purposes and it would help in collecting the views and the
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expectations of the clients involved in the research process.
Ethical values
The facts collected from the members would be sorely used for the research purposes. Unless
mentioned the names of the participants and other related details wouldn’t be shared with the
other members. These factors would be updated as per the requirements of the legal aspects.
Objectives
Aim
The aim is to analyse the factors that influences the buyers decision to remain lay with the
company.
Methods
The primary fact collection process would be used for the information analysis. This method
helped in collecting and examining the relevant details.
Specifications
The information collected through the research work that would be used for analysing the
information that is being used for the fact collection process.
Research contribution
This research work will help in examining the challenges that affects the information required
to understand how loyalty of the clients.
Specification
Research contribution
Conclusion
The research facts and other details collected by the researcher due to the conduct of the
research work would be used for the analysis of the views of the members or the buyers. The
objective to conduct this research work was to find how the reward and the loyalty program
introduced by the companies could influence the buyer’s decision.
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1.5. Provide an appropriate plan and procedures for the agreed
research specification. Your plan can be presented in tabular or
graphic form (Gantt chart) to show what the main activities/
stages of your research are, and how long each activity would take
to complete
Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Introduction
Presentation
Literature review
Methodology and
findings
Conclusions
Presentation
The tasks for the research would be completed in 6 weeks and the process has been discussed
above.
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Part B:
Task 2:
2.1. Match resources efficiently to the research question or hypothesis.
You should explain (A) what are the resources required to carry out
your research? (B) What is the relationship between ‘research
resources’ and the ‘research question or hypothesis’?
The research questions were -
 How does the loyalty and reward system interlinked with each other for influencing
the customer database
 How does the company introduce an effective policy to introduce new measures for
attracting the clients
 What strategies are designed for introducing the reward and loyalty system required
for the company?
 How are the performances through the reward and the loyalty system improved by the
management?
A. Resources carried out
The reoccurs including the views of the sample sized participants included in the resort work.
By including these members, the research tries to find an answer to the questions that were
included in the research task. The objective to conduct the research work was to find how the
reward and the lowly system were related to the customer retention. This process was
conducted to find how the customer database could be improved for attracting the clients.
The resources were conducted to find how an increase in the lately for the company could
improve the performances of the company. Through the research method, an accurate process
is designed to find how the sales and performances for the company could be improved. The
purpose to get the relevant information that was required for increasing the business
performances (Kendal, 2012).
B. Resources
The research method was selected to establish the relationship of the viewers with the
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research question. This was meant to analyse the challenges involved with the task execution.
Through the developed processes the research task intended to collect the relevant facts that
were used for examining the facts that were used for the research work. The objective to
conduct the research work was to analyse different factors that influenced the buyer’s
decision to invest in the product purchases and sales. The resources were effectively collected
and examined for the research purposes, and it was meant to examine the challenges involved
with the fact collection and analysis.
2.2. Undertake the proposed research investigation in accordance with
the agreed specification and procedures. In this question, you need to
design and distribute a ‘Questionnaire’ among at least 20 respondents
to collect data on your research topic
The research questions drafted were to get the relevant information about the views of the
members included in the research work. Research investigation is done to collect the relevant
information about the research and other facts that is being used for the analysis of the
details. This process enables the management to develop the right process for getting the
relevant information that will be useful for the research purpose. Information essential for the
fact collection would be done through the questionnaire process, where the sample questions
would be put forth to the participants involved in the research task. This would help in
determent the views of the members and to present the information in an effective manner.
Questions has been neatly formula and it is meant to help the members in analysing the
information and to use the facts in the right manner.
The questions are prepared for examining the information and use the details in an effective
manner. Through this process the researcher would use the deals for the fact collection and
analysis. This is an effective method that is being used for executing the tasks and to use the
relevant fir nation for concluding the research task. The facts collected and examined by the
researcher have to be analysed from the analysing point of view.
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2.3. Record and collate required data. Record the collected data from
participants in the form of a frequency table that shows the
aggregation for each question. You can use graphs or a frequency table.
The information collected by the researcher would be used for examining the information that
is used for the research analysis. The objective to conduct this research work was to examine
the relevant challenges that would affect the business activities and performances. Through
the analyses process, the researcher would conduct the analysis and collect the required
information that would be used for analysing the details that would be used for the analysis
purposes.
The number of participants is 20 in numbers, and the required information would be –
a. To understand how the performances of the company can be improved by introducing
a reliable loyalty and rewarding system
b. To introduce a method that would be used for measuring or calculating the relevance
of the questions that is being collected for the research task
c. Examine how these aspects or processes would be used for the analysis of the facts
that would be used for the analyses of the information that is bug used for the research
purposes (Lowenstein, 2002).
d. To develop an effective method that would be used for the analysis purposes.
data to be collected requirements
Facts about the buying power of the clients Yes
analysis of the collected information Yes
Methods that would be used for the analyses Yes
Analysing the information that is being used for examining the
details Yes
The above data examines the relevance of the data that would be used for the analysis of the
information. Through such processes it is possible to identify the challenges involve with the
fact collection and analysis.
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Task 3:
LO3:
3.1. Use appropriate ‘research evaluation techniques’.
Which types of evaluation (formative or summative) are
appropriate for your research? Why?
The evaluation process through the formative method is used for examining the processes
that would be followed for the analysis. Theism method is quite suitable for the research
analysis, as it helps in examining the details and enables the authorities or the researches to
collect the relevant details that would be used for the analysis. Through this method, the
relevant facts and information are collected for the analysis for examining the relevance of
the facts that would be used for improving the fact collecting process. This method is
recommended for analysing the facts and to use the details in an accurate manner.
Formative method is used for as an internal method for the analysis of the information, and
this is used for judging the analysis or the information examination. It is used for forming the
right type of judgement that would help in examining the details that would be used for
analysing the details. This is also done through the ADDIE processes, where the information
collection and analysis methods. The evaluation process followed by the members is done on
different passes, and this helps in examining the relevant information that would be used for
the research work (Reinatz et al., 2004).
The strategic changes and the processes followed by their searcher allow the members to
monitor the works and to examine the relevant actors that would be used for increasing the
business activities. Through the intervention method that would be used for examining the
process for improving the fact collection and analyses process. It assists in determining the
changes and the process that would be followed for improving the skills and the knowledge
of the task performances.
This method is quiet appropriate for the researcher, as it helps in developing the right skills
and the methods that would be used for the research purpose. Through this method, the
researchers would collect and examine the relevant information that would enable the meant
to understand the external factors that impacts the business execution process.
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3.2. Interpret and analyse the results in terms of the original
research specification by using ‘Frequency’ and/or ‘Percentage’
calculations.
The analysis for the research answers were done through the percentage calculation method.
This method was selected as it helped in developing and introducing the right process for
increasing the business information improvement process. The views of the members
involved in the research were collectively analysed, and the facts were used to understand
how the researcher method, which was necessary for the analyses. In the percentage method,
the facts and other details required for the analysis were compiled through the analyses
method and this was used for examining the e information to be used for the each work. This
analysis was done on the number of clients or the participants included in the research task.
A rialto of 55 members were included for the research purposes and this included in the resect
calculations. The factors were examined, as it helped in determining the tape of changes that
could be introduce for the analysed. A set of 10 questions ere intoned for the clients. The
expected analysis would be done in the following manner where the questions included in the
research work would be divided by the number of the total participants. This method is quite
helpful for examining the factors that be used for finding the relevance of the information that
would be used for eh research purposes.
3.3. Make recommendations and justify areas for further
research. You can determine at least three new topics/areas for
further research.
The other method that can be selected for the research purposes includes the selective process
that would be used for examining the information that would be used for the conduct of the
research. This research method allowed the members or the researchers to collect and
examine the relevant information that would be used for collecting and analysing the relevant
information used for the research purposes. This method is recommended as it helps in
developing and introducing new methods that would be used for the fact collection and
analysis. Through this method, the factors and other factors required for the analyst would be
conducted. This is the most important and useful method that would be used for collecting the
related information that is being used for increasing the performances. Through this
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information collection process, the researchers examine the challenges are examined and the
relevant changes are introduced for the fact collecting purposes (Sha, 2015).
Task 4:
LO4:
4.1. You are present the results and recommendations of your research
in a report format suitable for presentation to an organisation.
The finding stated that the fact collection and its analysis were important. Customers choose
to buy a product that was lower in price and it required the management to deal with different
issues related to the fact collection and its analysis. This method is used for understanding the
views of the participants included in the research work. The facts collected were analysed to
understand how the customers viewed the options or the product sold by the company. This
was the most important part of the research work that helped in determining the canes that
were required for improving the process of the fact collection.
It was found that the buyers are interested in buying the products at the lower price, and this
required the management to determine the relevant factors that would be used for improving
the business activities. In the loyal and the reward system, the management were introduced
for increasing the business performances. Through the strategic changes, the management
designed and introduced a relevant process to understand how the factors influence. The
process followed by the management to design a new method and process that would be used
for accessing the information essential for the information collection. This information
collection process is defined, as it would help in improving the execution of the works related
to the fact collection (Zikmund et al., 2002).
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References
Agchi, R., &Xingbo , L, (2011), Illusionary Progress in Loyalty Programs: Magnitudes,
Reward Distances, and Step-Size Ambiguity. Journal of Consumer Research, Vol. 37
February 2011, P 184-179.
Deighton, John (2000), “Frequency Programs in Service Industries,” in Handbook of Services
Marketing and Management.
East Robert, Philip Gendall, Kathy Hammond & Wendy Lomax, ( 2005), “Consumer
Loyalty: Singular, Additive or Interactive?”. Australasian Marketing Journal 13 (2), p 10-26
Kannan P. K. & Bramlett Matthew D. (2000) “Implications of Loyalty Program Membership
and Service Experiences for Customer Retention and Value”, Journal of the Academy of
Marketing Science. Volume 28, No. 1, pages 95-108.
Kendal Peiguss (2012), “7 Customer Loyalty Programs That Actually Add Value”
Kopalle, Praveen &Neslin Scott A. (2003), “The Economic Viability of Frequency Reward
Programs in a Strategic Competitive Environment,” Review of Marketing Science,
www.bepress.com/romsjournal/ vol1/iss1/art1
Lowenstein Michael, (2002), Customer Win back- The 15 business benefits of a loyalty
initiative, John Wiley & Sons
Reinatz Wener, Krafft Manfred & Hoyer D. Wayne (2004), “The Customer Relationship
Management Process: Its Measurements and Impact on Performance”, Journal of Marketing
Research, Vol. XLI- Augus
Shaw Ray (2015), “Traditional loyalty programs – broken?” Business Technology ,
www.itwire.com/business-itnews/business-technology/itemlist/user/11234-rayshaw
Zikmund, William G.; McLeod Jr., Raymond; Gilbert, Faye W. (2002), Customer
Relationship Management: Integrating Marketing Strategy and Information Technology.
ISBN 10:
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Appendix
1. How often do you buy the discounted products
a. Quite often
b. Rarely
c. Sometimes
d. Quite less frequently
2. Do you intend to save money by shopping with discounted price
a. Yes
b. No
3. How the product quality offered by the company measured
a. Quite often
b. Quite frequently
4. What are the factors that is considered while buying the product
a. Quality
b. Price
c. Reliability of the information
5. How are the challenges involved with the product sales examined by the clients
a. Product value
b. Price sales
6. How do you choose the quality of the products
a. Analysis of the product
b. Analysis of the price
c. Availability of the products
7. What strategies are adopted for increasing the business performances
a. Sales
b. Promotional activities
c. Improvement in the product value
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