How Loyalty cards helps business

Running head: INTERNATIONAL MARKETING RESEARCH
International Marketing Research
Name of student
Name of University
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2INTERNATIONAL MARKETING RESEARCH
Table of Contents
Introduction................................................................................................................................3
Key literature..............................................................................................................................3
Direction of research..................................................................................................................6
Structure of report......................................................................................................................7
Reflective report.........................................................................................................................7
References..................................................................................................................................7

3INTERNATIONAL MARKETING RESEARCH
How Loyalty cards helps business
Introduction
The research is done to focus on the effectiveness of using loyalty cards in business
and to achieve the desired outcomes while managing international business. The topic will
highlight the importance of loyalty cards and how it can assist businesses to establish positive
relationships with the customers in the foreign marketplace and develop a sense of trust and
loyalty to sustain competitive advantage too. The loyalty cards use is always an effective way
for attracting new foreign clients and at the same time, encourage repeat business and
furthermore generate higher sales revenue to attain competitive advantage in business
(Arbore and Estes 2013). The loyalty programs offer great benefits to the customers based on
their purchases such as rewards and additional offers, which can make clients gain positive
mind sets about the brand and come back again to avail the services. This is a great marketing
technique that has been beneficial from both local and international business perspectives,
thus allowed to influence their buying behaviours too (Gómez, Arranz and Cillán 2012).
Research problem
The problem is actually the lack of trust and loyalty among the customers towards the
brand, which often leads to poor brand exposure and lack of knowledge about the products
and services offered by the organisations nowadays. This is a major problem, which not only
creates incapability for the organisation to arouse interest among the clients, but also fails to
draw in enough clients, which is required to attain higher growth and revenue generation
(Kim, Kang and Johnson 2012). The relevance of the research is that the loyalty cards, as the
name suggests, can be used by the businesses while operating in a global marketplace to
attract new as well as existing customers, furthermore reach out to wider group of audiences
and target market for increasing the sales and gain higher level of profit and competitive

4INTERNATIONAL MARKETING RESEARCH
advantage in business as well (Evanschitzky et al. 2012). To overcome this kind of issue, the
business needs to use loyalty cards such as reward the customer referrals and even make the
earning system straight forward, which can increase the traffic to the company and create
scopes for establishing a large customer base, which is required to become successful in
business.
Research question
How does the use of loyalty cards help in attracting more clients in international business and
increase sales revenue?
Research hypothesis
H0: The use of loyalty cards helps in enhancing the trust among the people about the brand
and increases sales revenue?
H1: The loyalty cards’ usage has little or no impact on the creation of trust and loyalty among
clients and to generate higher sales while managing international business
Key literature
Use of Loyalty cards by businesses
The use of loyalty cards considering the big data source has been a major challenge at
present. It does not include any Information and communication technology along with the
financial resources needed to use the expertise that has been outsourced. Due to the
formalised nature of the loyalty card while managing international business, there has been
lack of marketing strategies implementation, proper strategic planning and lack of experience
and flexibility too. The loyalty card data and information are used by the businesses to
understand about the consumer behaviours and the factors that influence their purchases
(Bowen and Chen McCain 2015). There are evidences that showed that the small businesses