Loyalty Programs: Adoption and Design

This assignment delves into the world of loyalty programs, examining their impact on customer behavior and business success. It analyzes various design elements and explores factors influencing program adoption. Students will research current trends, assess program effectiveness, and consider best practices for developing successful loyalty initiatives.

Research Project

Table of Contents
CHAPTER-1..................................................................................................................................3
1.1 Research project outline specification .................................................................................3
Research aims and objectives. ....................................................................................................3
Objective of an organisation.......................................................................................................3
Objective.....................................................................................................................................4
Questions.....................................................................................................................................5
1.2 Factors ..................................................................................................................................5
1.3 Literature review ..................................................................................................................5
Data analysis and discussion.......................................................................................................6
1.4 Methodology, methods, and techniques................................................................................9
1.5 Gantt chart ..........................................................................................................................12
CHAPTER-2..................................................................................................................................14
2.1 Relation between research question and hypothesis...........................................................14
2.2 Data collection...................................................................................................................15
2.3 Research investigation........................................................................................................16
CHAPTER-3..........................................................................................................18
3.1 Research evaluation techniques..........................................................................................18
3.2 Interpretation......................................................................................................................18
3.3 Recommendation.................................................................................................................20
CHAPTER-4............................................................................................................................21
4.1Conclusion............................................................................................................................21
REFERENCES..............................................................................................................................29

CHAPTER-1
1.1 Research project outline specification
Consumer should be loyal towards the organisation and its products as it can make many
things better in the organisations part. The consumer loyalty is result of the consistently should
be contain the positive emotions, physical attribute based satisfactions and they should have the
perceived value of an experience (Allaway and et.al., 2011). The customer loyalty particular
known as the consumer who use the products and the services of particular company brand and
from one shop is an consumer who is loyal towards the company. The reward schemes are been
done in the organisation to the employees in change of the exchange of the performance which
they use to do.
Research aims and objectives.
Aims
To access the Consumer loyalty and rewards schemes
Objectives
 To analysis that why consumer loyalty is necessary.
 To ascertain that how reward scheme is important to the company.
Objective of an organisation
Reward management is used in business to attract potential employees in the
organisation. it has been analysed that reward scheme is very important to the employees as due
to rewards they will be motivated and will use their full potential and will work harder as due to
rewards they will feel more committed and due to all this there will be an increase in their
productivity and it will also benefit the organisation. As rewards will be awarded to employees
on achievement of targets and goals, they will be motivated to achieve those targets in order to
gain their rewards and also they will want to prove themselves as efficient in comparison to
others. it has been depicted that absenteeism will be reduced in an organisation due to the
introduction of reward scheme (Bell, 2014). Due to reward scheme they will want to achieve the
targets and for that they will avoid taking leaves sop that the set goals could be achieved on time.
Also with the help of reward scheme loyalty of employees will also be increased as it will make
them feel valued and they will think that they are important for the company and their views also
matters to the organisation and by this they will remain loyal as they will be happy with their

working atmosphere. it has been interpreted that by providing different incentives and
recognitions under the reward scheme will boost the morale of the employees. It will provide
them with clear purpose and focus which will increase their morale and will encourage them in
fulfilling the targets and achieving the goals (Gómez, Arranz and Cillán, 2012). There are
various benefits of the reward scheme which they are discussing and one of them is the
teamwork which says that due to the reward scheme teamwork spirit will be increased in the
organisation. Employees will be promoted teamwork due to this scheme. In order to achieve the
targets in return of the rewards the employees will be motivated to work as a part of team and by
doing so they will be able to achieve the targets more easily as working in team will reduce the
conflicts among them which is sometimes the major hindrance in achieving the objectives.
Overall with the teamwork their will be an increase in the level of efficiency and due to this a
happier workplace will be created
Objective
Loyal customers are always more beneficial than other customers. it has been analysed
that loyalty of customer is very important for any business due to various reasons. Loyal
customers will stay longer with the company. Loyalty of the customer depends upon the quality
of the product supplied to them as customers always like to buy from the trusted supplier. Once
they will get familiarised with the product and will have their trust build they will never leave
until their trust is broken or if they get better and cheaper products due to the entry of
competitors in the market. So it is important to fulfil the needs of the customer and also be aware
of the potential competitors (Bijmolt, Dorotic and Verhoef, 2011). it has been depicted that the
frequency of purchase in case of a loyal customer is much more in comparison to other
customers. It means that loyal customers will buy more and more as usually loyal customers tend
to do their shopping from their fixed and selected sellers. A part from it loyal customers even
give their suggestion as to which new products they want to be added so it is considered very
important to listen to the suggestions of a loyal customer and what they want. Loyal customer
will need less support in comparison to other customer as they are aware with all the services and
in case of any issue can solve it from self service portal and due to this less cost will be required
to be incurred in serving them. it has been interpreted that company is guarded from the price
competition with the help of loyal customers. In the time of competition loyal customer will not
check the prices as diligently as the other customers will be doing. This will be because of the

reason they trust you and that trust should never be broken and should keep a check about what
they are thinking (Bell, 2014). Loyal customers help in promotion of the product. In other words
it can be said that they will act as a brand to the product as they will surely share there
experience with their family and friends and will say only good about the product which will
compel others also to come and purchase from that vendor thereby increasing the profitability of
the company and also making a strong customer base.
Questions
 Why customer loyalty is required to attain objectives?
 Why reward scheme is important for company?
1.2 Factors
There are different elements which help or they may put their own part of the
investigation. There some criteria by which an organisation will get proper help in doing the
effective research:
 Marketing factors- This helps the organisation in attracting more customers by providing
them products and services according to their choice, so for this they have to know about
all the required things happening in market area and all and this will also aid organisation
in knowing about market environment. The main job of the marketers is to convey all the
messages which they want to give to the customers (Chen and Pearcy, 2010).
 Financial factors- This is the most effective method as this will help researcher to choice
the project in accurate manner. It will be very problematic for a researcher to carry out
his research in required way. In all the things finance is required.
 Administration factor: They have the authority to select or to reject any of the projects
which a company is working on as they have the main duty to look after all the
management related works in a organisation.
1.3 Literature review
Customer loyalty is indicator of how much a customer is devoted to the product and
services of an organisation. It also shows that how strong is his tendency that he will choose the
selected brand over any other brand. Loyalty of a customer is beneficial to an enterprise in many
ways and to maintain that loyalty company will also be required to fulfil the wishes of the
customer ans to meet the needs and expectations of them by inculcating new and better product

lines. According to Cross and et.al., (2010), They will have to maintain a good relation with
them and should take all required steps so that the trust that customers have on them is never
broken. Reward scheme is the scheme in which monetary as well as well as non monetary
benefits or incentives are being provided to the employees in return of the work done by them.
Due to these rewards the efficiency of the employees will be increased and they will be
motivated to complete their work so as to achieve the set targets and goals as they will be getting
rewards in exchange of it only. And due to this company will have a great benefit. These will be
discussed in detail in the below mentioned report. According to the views Dorotic, Bijmolt and
Verhoef, (2012), it has been portrayed that truancy will be lessened in an association because of
the presentation of reward plot. Because of reward conspire they will need to accomplish the
objectives and for that they will abstain from taking leaves sop that the set objectives could be
accomplished on time. Likewise with the assistance of reward plot unwavering of representatives
will likewise be expanded as it will make them feel esteemed and they will believe that they are
imperative for the organization and their perspectives additionally matters to the association and
by this they will stay steadfast as they will be content with their working environment. As
expressed by Eilks and Markic, (2011), it has been translated that by giving distinctive impetuses
and acknowledgements under the reward plan will help the resolve of the representatives. It will
furnish them with clear reason and centre which will expand their spirit and will empower them
in satisfying the objectives and accomplishing the objectives. As stated by Cross and et.al.,
(2010) There are different advantages of the reward conspire which are examining and one of
them is the cooperation which says that because of the reward plot collaboration soul will be
expanded in the association.
Data analysis and discussion
The next step for the researcher is to analysis the information which they have been
collected with the help of the primary information.
Theme 1- Reward system should be included in activities of organisation to motivate employees

In this, it is been asked that do reward system is important in the firm. This can motivate
employees which are working in the firm.
Theme 2- Adopting reward scheme would be beneficial for TESCO
16
4
Yes
No
14
6
Yes
No

Adopting the reward scheme is beneficial in the firm this can help in improving the performance
of employees, and aid in increase productivity.
Themes 3- Organisation should have loyal customers and it is very essential for it.
The customer loyalty is very important for the organisation so it has to be maintained properly.
Themes 4- Customers are willing to connected with TESCO company.
There is more people which are its regular customers and that is good for the company.
Agree Disagree Strongly Agree Strongly Disagree
0
2
4
6
8
10
12
12
2
6
0
Column B
14
6
Yes
No

Theme 5- Most of customers are satisfied with the products and services of this firm.
The products satisfaction is very important as if the customer is not satisfied by the products
which is provided by the firm them it will be problematic for the company.
1.4 Methodology, methods, and techniques.
This section follow the structure of literature review. In analysis methodology totally
different ways has been explained in effective manner. The investigator use the precise tool and
techniques that is gorged in section of analysis methodology. The various answers square
measure being carried as a result of victimization several ways (Gómez, Arranz and Cillán,
2012). This chapter provides variety of answers that square measure related to the matter of
analysis. several efforts square measure being created by scientist to urge the profitable
outcomes. many techniques and tools has been used so as to gather varied info from totally
different sources.
Methods for consumer loyalty.
 Let customers apprehend what you're doing for them-you may have to tell the customers
that what are things company going to do for them by which they understand the
effectiveness of the firm.
 Write long-time customers personal, written notes of times-if you recall the messages to
the customers then they will gonna happy because company will take initiative for them.
16
4
Yes
No

By doing some messages so the customer will understand that company will remind them
personally (Allaway and et.al., 2011).
 Keep it personal-The messages which company do for the consumer they keep it
personally. they don't disclose it from anyone because it is a part of customer satisfaction.
 Message on some occasions-company will do some messages to the customers for the
loyalty and give them some offers and discount through it customer will not switch to the
other company (Hanauer and et. al., 2012).
Research design of consumer behaviour.
For the research design take a group of people and asked some questions to them that
which type of mistakes they get in the product and what they like in the product. do survey on
our products that which type product customer will like and dislike. By it will get lots of data
from the customers and 'll analyse the information which get from the customer.
Research Approach.
In this the scientist will use completely different style of analysis. There square measure
several approaches which might be employed by the investigator. the mixture of those is used for
conducting any style of analysis. there's associate inductive and deductive. This thesis relies on
inductive approach (Huang and Chen, 2010). With the assistance of inductive analysis the
analysis is finishing up associate investigation will take the data from people so as to achieve the
a lot of information. In shopper behaviour have a tendency to use inductive approach as a result
of it's on qualitative information during this approach have a tendency to directly raise to the
patron and raise concerning our product.
Sampling.
It is thought of as tool that facilitate in taking the selections from an oversized range of
information. The man of science will use varied strategies during which they will get the correct
answers. There square measure differing kinds of sample strategies during which the man of
science will choose per the subject. whereas choosing the sample style that during which manner
they'll collect the data they need to assemble the data all at once. the aim of sampling is to
assemble all the info regarding the population so as to form reasoning through that it will
generalize the the population (Hughes, Gillespie and Kail, 2010). The sampling style may be
supported strategies like likelihood and non-probability.
Data collection.

In the consumer loyalty program take data from the consumers. By asking them
questions that the services are providing you are satisfied with them or not. Their are many types
of data like primary data, secondary data, qualitative data and quantitative data. Primary data
includes the data which is collected directly from the researcher. The primary data is directly
related to the subject of the objectiveness
Loyal customers are always more beneficial than other customers researches data is
collected from many direct methods (McNiff, 20Bell., 2014). One of the most useful collection
method of primary data is in interview in which some questions are asked to the interviewee and
according to the answers of the interviewee final interview report is prepared. Another collection
method of the primary data is observation in which in specific circumstances, some fixed
procedures are applied and the result is recorded.
Ethical consideration.
Ethical thought area unit crucial for investigator. moral area unit those norms or standards
that distinguish the connection between the correct and wrong. In analysis moral thought area
unit vital as a result of the investigator needs to face several issues whereas conducting any
analysis. For obtaining the data it became troublesome for the investigator that to share the data
with one another and will follow the particular tips that has been provided by any others.
 Anterior support – The investigator needs to take the previous approval from the
candidate to use any books, magazines or any connected study matter. this the
respondents don't seem to be filling the form in acceptable manner and therefore the
investigator are becoming unreliable answers (Meyer-Waarden, 2013).
 Circumspection – The investigator needs to secure all the data safely. the data they need
got from completely different sources have to be compelled to be unbroken
confidentiality.
 Decorous citation – The investigator needs to place correct citation whereas victimisation
any students or journals. It ought to be used properly in order that investigator can
understand the moral issue.
All the moral problems have to be compelled to coated best ability of investigator in order that
they will keep all the data on the qualitative generally they're conjointly facing the problems in
victimisation the websites as a result of it shows accessed dined. For this they need to require the
previous approval from owner of web site.

1.5 Gantt chart
It is a chart which use to give the timetable of the venture. The Gantt chart deals with the
season of the venture is to been done, it gives the correct time separated to do the venture, the
association ought to likewise take after the Gantt chart so they have the capacity to do there work
and utilize the assets as indicated by the time dispensed to it (O'Leary, 2013). It encourages the
representatives to take every necessary step legitimately and to set aside a few minutes they had
been got. It can be gainful for to do there assignment effortlessly and on the time.

1st path= 1+2+3+4+5+6= 21
2nd path= 1+2+4+5+6= 18
2nd path is good.

CHAPTER-2
2.1 Relation between research question and hypothesis
A) Resources required for explore think about.
The exploration consider is especially critical for the association to comprehend the market
situation and the requirements and needs of the clients. There are numerous assets with which the
purchaser conduct's examination can be done. There are essentially two sorts of the assets
essential and auxiliary.
Constituent assets are those where the data identified with the issue that has been
characterized is completed by getting into the market and are basically assessed (Steyn and et.
al., 2010). The examination is finished by the general population doing a few things like the
review studies, survey and meetings.
Though the auxiliary assets are the information that is been accumulated from those
exploration that has as of now be finished by another person . The books, diary, references, the
daily papers and so forth.
Questionnaire and surveys- These two fluctuates from each different as the data is conveyed by
them are diversely broke down. Study ponder is a technique which is short and is done all in all
way where as the polls are exceptionally protracted process and there are many inquiries that
must be replied by the quantity of individuals or the example estimate that is been picked by the
association.
Ethnographic-it is the investigation of the shoppers living style and the conduct he does while
getting into any of the circumstance. It is extremely costly and tedious yet the information that is
gathered here is especially significant to the characterized look into point.
B) Relationship between look into assets and research question
Research question is the part which the scientists need to discover while doing the demonstration
of the examination (Zichermann and Linder, 2010). Every one of those inquiries that the
examination study will give an answer toward the finish of the investigation.
 Research theory are the pre chosen results by the scientists of an arranged research
subject.

 Research assets are the sources that assistance the analyst to assemble the data. The
essential and the optional sources.
These two are identified with each different as in light of the fact that exploration can not
be performed without them. To accumulate the data through the assets it is exceptionally
fundamental for the specialist to characterize an inquiry on which the information can be
gathered.
2.2 Data collection.
Data collection is an process to gather and to measure the information on the targeted
variables in an system which is been established. The researcher use to collect the data from the
various sources such as the primary and the secondary data. They can collect some the data from
the different sources to conduct the survey (Huang and Chen, 2010). The investigator collected
the primary research which can give them the reliable information to them as they can make use
of it as an important information in doing the survey. To have an data is important has it can help
in getting the proper information which is necessary. It helps in various ways to the people to
complete their survey.
With the help of the primary research the researcher had been collected the useful information.
Name
Age
Gender Male Female
1. Does the organisation should include the reward scheme to motivate the employees.
 Yes
 No
2. As per your views do you think it will be beneficial for TESCO to adopt reward scheme.
 Yes
 No
3. Consumer loyalty is important for an organisation. Is it actually important?
 Agree
 Disagree
 Strongly Agree
 Strongly Disagree

4. Are you regular customers of TESCO company?
 Yes
 No
5. Are you satisfaction with their products and the services?
 Yes
 No
2.3 Research investigation
The examination in this report is to done in such a way, to the point that the inquiries and
the issues that was emerging in the business get settled. Poll is the most ideal approach to
recognize what precisely the customer need. The effect of web-based social networking on the
purchasing conduct and the basic leadership procedure of the buyers are all around broke down
with this exploration ponder. There are different strategies which can help in the examination
contemplate. The conduct of the customer is been considered in the examination. This system is
utilized to get the compelling outcome and to improve the execution of the association's
operations (O'Leary, 2013). A definitive target of the exploration procedure is to comprehend
the mentality of the purchasers and the way they act on the few changes that the firm does in its
items and the administrations. With the assistance of this exploration consider the learner will
have the capacity to settle on viable choice on different parts of the business exercises. The
reason and the target of picking this examination technique are-
 To accomplish the powerful outcome
 To recognize the required things that the association must concentrate on.
 Pertinence in the information
 Exact and exact data.

1. Does the organisation should include the
reward scheme to motivate the employees.
Frequency Percentage
 Yes
 No
16 80%
4 20%
2. As per your views do you think it will be
beneficial for TESCO to adopt reward
scheme.
Frequency Percentage
 Yes
 No
14 70%
6 30%
3. Consumer loyalty is important for an
organisation. Is it actually important?
Frequency Percentage
 Agree
 Disagree
 Strongly Agree
 Strongly Disagree
12 60%
2 10%
6 30%
0 0%
4. Are you regular customers of TESCO
company?
Frequency Percentage
 Yes
 No
14 70%
6 30%
5. Are you satisfaction with their products
and the services?
Frequency Percentage
 Yes
 No
16 80%
4 20%

CHAPTER-3
3.1 Research evaluation techniques
Step1- Mainly they focus on the issues which is included sections, which has to be
analysed and at the centre on which methodological debates played an role. Introduction: in this
chapter the over view of the project is been described that what all are been included in it. The
aims and objectives are been written in it which is the main of the project.
Step 2- Literature Review: in this chapter it is defined the opinions of the different poet in
an different ways about the object which is included in the project. The authors will tell the
different about the things according to the consumer loyalty and the reward schemes in the
organisation.
Step 3- Research Methodology: In this chapter the different tools which are been used in
the research by the researcher to make the project is been defined.
Steps 4- Analysis and finding: In the report finding which are been done by the
researcher is been written in this.
Steps 5- Conclusion and the recommendation: In this all the finding and all the things
which are been done in the above report. The report are been concluded in this chapter. The
objectives and the aims of an project is been mentioned in it.
3.2 Interpretation
 Interpretation- In this question the representatives were asked that do they think reward
system is beneficial for the organisation so 80% of the respondent are agree with the term
that the reward scheme should be start in the organisation. And the remaining 20% are
not agree with it.
Analysing- in this question of a questionnaire peoples are been asked that do they think that the
reward scheme should be in an organisation so 80% of the people are agreed with it. So they also
think that their should be an system so that the employees can get the motivation to do their work
on time.

 Interpretation-In the above question respondent asked that as per their thinking do they
think reward scheme should be adopted by the firm, from the respondent 70% of the
respondent are agreeing that the reward scheme is beneficial in TESCO so that they can
make many profits. 6 And the other 30% is not agreeing as they think it is not that much
beneficial.
Analysis- In the mentioned question it is been analysed that TESCO should apply the system in
the organisation so that the products and the services which are been provided by the employees
should do properly and effectively.
 Interpretation- It is been asked by them that do they are agreed by the point that the
consumer loyalty is important in an organisation so from the 20 respondent 12 of them
are in favour of it and form the remaining 2 are agents it and the other 6 respondent is
strongly agreed with the fact.
Analysis- In the above report it is been analysed that the consumer loyalty is important for the
company so that they can get many benefits by the that. In this 60% of the respondent are in
favour of this as they really think that the costumer loyalty is important in the organisation.
 Interpretation- In the above question it been asked by the respondent that are they an
regular costumer of TESCO or not. So from the all 20 respondent 70% of the respondent
are the regular customers of an TESCO company and the reaming 30% people are not an
regular user of that company.
Analysis- Form the above question it is been analysed that the 70% of the respondent are the
regular customers of an company and the remaining 30% are not the costumers on company so
they have to make efforts to convince them also.
 Interpretation- in the above question it been asked by the respondent that are they
satisfied by the products and the services provide to them, so according to that 80% of the
respondent are satisfied by the products and the service which are been provided by
TESCO and 30% of the respondent are not satisfied by TESCO products and the services.
Analysis- By this question asked by respondent it is concluded that 80% of the respondent are
satisfied by the products and the services they provide to the customers but the remaining 30%
are not satisfied as they did not find the products and the services which the company provide is
good to them so TESCO should now have to make changes according to the people which are

not satisfied by them and they should take many steps to improve it and make the remaining one
also satisfied.
3.3 Recommendation
The examination ponder done by the specialist helped the association to comprehend the
conduct of the clients that how one can be impacted by the firm in drawing in them towards the
items and the administrations of the association.
The Gantt graph are the instruments which is utilized for dissecting the time that will be
devoured by the association to do the examination of the venture. The diagram is the flat line
introduction which demonstrates the work that has been done yet and what all operations must be
shrouded in the given day and age. The association has additionally concentrate on the limited
time follow up on the broad communications and you tubes as in light of the fact that there are
many individuals who are dynamic on these things too.
 Broad communications
 You tube
 Visit advancements of the items and the administrations.

CHAPTER-4
4.1Conclusion
In the above report it is been defined that the consumer loyalty is important in the
organisation so that they earn profit and they make an trust over the people so that people can
know about the company and can be able to start using after seeing the consumers loyalty for
there company, TESCO have to make some the changes according to the taste and the
performance of the people so they can attract more people. Reward scheme should be organised
in TESCO so that the employees of that company can get motivation to do their work properly
and on the proper time to achieve rewards. As because the employees will do work in need of the
rewards. In this report the survey is also been conducted and the respondent had been asked
many question which is important for the organisation to be known. Data analysis is also been
made and finding had been done so that company can get better ideas.
In the above report it is been analysed that how the consumer loyalty is beneficial for the
organisation and why it is good and the how does the reward scheme will effect an organisation.
I think if the consumer is loyal towards the organisation then that can make an vast change as
that can do change minds of the people who are not using the products and the services of the
particular organisation as if they see the people who are using the products and the services of
TESCO then they will think of using that by seeing the belies and the trust of the people on the
organisation so they will automatically try to use it. And the reward are also important in an
organisation as it can motivate the employees to do there work properly and on the particular
time.

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