Impact of Customer Satisfaction on Customer Loyalty in Retail Sector

Project 1- Research Proposal
Impact of Customer Satisfaction on Customer Loyalty on
Retail Sector/Morrison’s

Table of Contents
Introduction......................................................................................................................................3
Literature Review.............................................................................................................................5
Methodology....................................................................................................................................9
Findings and Analysis....................................................................................................................17
Conclusions and Recommendations..............................................................................................28
REFERENCES..............................................................................................................................30
Books and journals....................................................................................................................30

Introduction
Overview of the topic
Customer satisfaction is something that often put-upon in merchandising. It is a
measurement of how goods and employment provide by an organisation meet or exceed
expectations of consumers. Customer satisfaction explains about the customer happiness means
how much customer is satisfied with products (Al-Omari, Alomari and Aljawarneh, 2020).
Consumer contentment, the much contented a consumer is, the greater the possibility they will
create some other acquisition in the approaching. Contented clients also lean to get loyal
consumers that mean a greater lifespan worth for that clients and customers. So there is several
assorted structure or manner for raising the consumer’s contentment like supply choice of goods
and services, by giving faithful and correct message about the goods, utilisation of effectual
boost up techniques and many more. These are reasoned much effectual and helpful manner for a
company in betterment of consumer contentment towards the marquee, commodity, employment
or procedure. A loyal consumer would expend much on one acquisition than a fresh consumer.
These kinds of things have an affirmative contact on consumer loyalty. Greater consumer
contentment on the marque alleviate, services organisation by rising word-of-mouth, accelerative
and huge consumer base and many more. Therefore, contentment between consumers helps
company to in raising loyalty of clients towards the marque. This context also shows the
literature review of the report. A literature review or communicative reappraisal is a form of
reappraisal section. A literature review is an academic material that shows the actual cognition
considering the essential collection as well as hypothetical and methodological endeavour to a
peculiar subject. This also defined the some methodologies that help the company to satisfied
more customers and help the company to create more customer base. This research also
investigate about the aims, vision and value of this search and also analysis the importance of
customer satisfaction in the marketplace and what are the best strategies and methods to improve
and enhance more customer satisfaction. This report also investigates and find out about the
kinship among customer satisfaction and customer loyalty. This also explain treatise because that
support in distinguishing of every chapter and their intent within an inquiry or research and it
will also explain the acceptance of the concept of motivation , training and investment, some
methodology like investigation design , investigation methods , approaches , philosophy, about
the time horizon about the collection of data and information. This investigation refers to the

some questionnaire that questionnaire is a much and very helpful tool and equipment because
that will help and assist the research worker in assemblage and collect the primary and
quantitative information in a particular time of period and Data analysis present to the
impressive operation or programmes of evaluating the information in sort of qualitative or
quantitative, this distribution is much helpful and serviceable method of examine quantitative
information within minimum time of period and also in effectual mode.
Background of the organisation
For this investigation, Morrison’s is a selected sizeable series of grocery store in UK. The
Morrison's Company was established in 1899 by William Morrison, and the company
headquartered in Bradford, West Yorkshire, England. This organisation chiefly specify in
merchandising of vesture, nutrient and drink publication, books and too many goods to the
consumers. Morrison’s is a reputed company in industry because of its choice and quality of
goods and services. Major goals of this company are to raise and gain consumer contentment and
consumer fidelity that move to affect in raising gross sales and profitableness of concern
organisation. In this report there is analysis of the customer satisfaction of the company. The
company Morrison's take care of the needs and demands of the customer as they provide various
kinds of products. As this is the multinational company so they have to take care of these things
like customer satisfaction and the needs and demands of the consumer. For increasing their sales
and demands the company is focusing on customer satisfaction because that will help the
company to enhance their business and to increase the profit (Bricci, Fragata and Antunes,
2016). Loyal customer is creating so many impacts on the company. The company business is
chiefly food & grocery and, unambiguously, they origin & procedure mostly the new and fresh
nutrient that they trade and provide by their self facilities and services of manufacturing. This
provide and gives the company adjacent power and control upon the root & choice as do the
amount of bound up and disciplined professed in their outlets and shops who set up and ready
their food for their consumers . We have much accomplished association for ready and prepare
substance in their outlets or in shops than any further wholesale. The companies own marque
show an vital part within their organisation and for their consumers also . Perceptive and
understanding their consumers, and concentrating on belongings that are much and more prior
for them, such as cost, choice and scope remains their concentrate, so that the company brand
going to be applicable and captivating. The company consumer said that they want much pick

of vegan at their outlets. So the company establish or setup their ‘V Taste’ scope of vegan
goods for their customers and they are enhancing and rising the clearness of their labelling on
their most of the goods like more than 300 end-to-end the shop that is much appropriate for
vegans. To request to their much cost delicate consumers, they civilized the ‘Prevention’ scope,
strengthening their worth offers. So for the company customer satisfaction is much needed.
Research Questions
 What is the major importance’s of customer satisfaction within retail sector?
 What are the effective ways that will be used by Morrison’s for improving customer
satisfaction towards their brand?
 What are the relationship between customer satisfaction and customer loyalty?
Research aim and objectives
Research aim:
“To identify the impact of customer satisfaction on customer loyalty within retail sector”.
Research objectives
 To identify the importance of customer satisfaction within retail sector.
 To explore ways for improving customer satisfaction towards the brand.
 To determine the relationship between customer satisfaction and customer loyalty.
Literature Review
To determine the relationship between customer satisfaction and customer loyalty.
According to (Golovkova and et. al., 2019) Customer satisfaction is an important
phenomenon that helps a business to retain customers. In retail industry it is vital to provide the
customer with the needs and wants and that helps to satisfy them. The more the customers are
happy with the organisation the more it is beneficial for them. In relation to retail industry they
have to study the current trends and provide the services to customers so as to satisfy them. The
more the satisfied customers better it is for organisation and for industry as well. To gain loyal
customers that do not switch it kis important to satisfy there needs and wants. The satisfied
customers promote the business and it is beneficial for the customers loyalty and customer
satisfaction are directly related to each other. Every company wants to have a good customers
base and loyal customers. It is time taking to develop loyal customers but it helps to gain
competitive advantage. The more the customers are satisfied, higher is chance of sales within the

industry. The organisations should take timely actions and keep the know about the customers, a
regular study about the customers is important to maintain loyalty among them. In retail industry
if the organisation provides quality goods and services to its customers than they are attracted
towards the organisation. Satisfying the customers is heart of marketing the organisation that is
able to satisfy its customers it successful as satisfied customers make repetitive visits that is
beneficial for the organisation. There is a strong relationship between satisfaction and customers
loyalty. As those customers that are satisfied by the organisation are loyal towards the
organisation and generally do not switch easily. It is vital for organisation to understand the
relationship between loyalty of customers and there satisfaction. The customers are able to build
trust for the organisation and that trust results in making the customers loyal for the organisation.
To compete in this dynamic world, it is important to provide customers the products and services
according to their preference. The organisation should take measures and actions to know the
customers so as to provide them services accordingly. Organisation take feedback from the
customers and take actions to fulfil the requirement of the customers as that will help the
organisation to gain loyalty among customers. Loyal customers help the organisation to make
more profits and this is also beneficial for the organisation as it helps to gain competitive lead. It
is beneficial to develop loyal customers as they attract more customers through work of mouth,
they create positive image of the organisation. If the customers are served by keeping in mind
their needs and wants then are more satisfied towards the organisation. Basically if an
organisation makes proper research and provide best quality services to its customers that it
attracts customers and they feel satisfied. If the customers are satisfied with the services provided
by an organisation then it increases the loyalty among them. This clearly shows that there is
positive relation between customer satisfaction and customer loyalty. So the organisation in retail
industry should focus on increasing the customer satisfaction as that will help to increase loyal
customers for the organisation. This also means if the customers are not satisfied by the services
provided by the organisation that means the customers would not be loyal and find new place
where they will get better services. So the organisations should focus on providing quality
services and maintain a satisfaction level among customers so that they are loyal towards the
organisation. Also if the loyalty of the customers is valued then it shows that the organisation has
more loyal customers.
Importance of customer satisfaction in retail sector