Impact of promotion on customer’s brand loyalty

Running head: DISSERTATION
Impact of promotion on customer’s brand loyalty
Name of the student
Name of the university
Author Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ......................... whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the............... [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The following research is based on the impact of promotion on the brand loyalty of the
customers. The research has provided the different perspectives based on the loyalty of the
customers. Customer loyalty has been said to be the key objective that helps the business
enterprises to retain customers and stay loyal. The presence of a loyal customer is essential for
the business as because it helps to ensure the sustainability and effectiveness of the business. The
first chapter introduces the readers with the topic in a broad and detailed manner. The
introductory chapter provides the overview of customer loyalty and its importance in the
organization. The problem statement has defined the major problems with the following
research. The main problems defined in the following sector are the problem with the absence of
proper promotions in McDonalds High Bury Branch. The aim, objectives of the research along
with the research question provides the readers with an idea on what the research will be
discussing and the different perspectives of the investigation. The hypothesis and the rationale of
the research are equally important to proceed with the research and complete it in an effective
manner. Lastly the structure of the research is one of the most important areas that will help
determine the contents of the research in a short yet descriptive and compact manner.
The literature review comes in the second part of the research where the different kinds of
secondary sources related to the brand loyalty and the retention of the customers by means of
brand loyalty has been provided. The providence of the importance of customer loyalty, the
major factors related to brand loyalty has been essential for the completion of the review. The
research methodology has been structured and provided in the third chapter of the review. The
research Methodology chapter is essential for the particular research to determine the methods
and tools used in the research to verify the results of the research. The philosophical stance,

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DISSERTATION
research design and approach combined together along with the justification for the selection of
each and every such research methodology perspectives has been essential for the completion of
the research in a proper manner. The fourth chapter is the data analysis chapter where a statistical
based research approach has been provided. A survey was done on 50 people and the results of
the responses were analyzed by means of bar graphs, charts and statistical calculations. The
statistical analysis of the following chapter has been essential for the scientific based research
calculation. The results clearly indicated that customer loyalty and satisfaction is a key factor to
the success of the business enterprise. The last chapter provided a conclusion to the research
where a summary of the entire work was provided. The summary has been essential to end the
dissertation on a positive note.

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Table of Contents
Chapter 1: Introduction....................................................................................................................8
Overview......................................................................................................................................8
1.1 Problem statement.................................................................................................................9
1.2 Research aim........................................................................................................................10
1.3 Research objectives.............................................................................................................10
1.4 Research questions...............................................................................................................10
1.5 Research hypothesis.............................................................................................................11
1.6 Research rationale................................................................................................................11
1.7 Structure of the dissertation.................................................................................................12
Chapter 1: Introduction..............................................................................................................12
Chapter 2: Literature review......................................................................................................12
Chapter 3: Research methods....................................................................................................13
Chapter 4: Findings and discussion...........................................................................................13
Chapter 5: Conclusion...............................................................................................................13
1.8 Summary..............................................................................................................................13
Chapter 2........................................................................................................................................14
2.0 Literature Review....................................................................................................................14
2.1 Introduction..............................................................................................................................14

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2.2 Factors influencing customer satisfaction and loyalty.............................................................17
2.3 Factors influences customer satisfaction.................................................................................18
Comparative Analysis of two different McDonald’s Stores......................................................34
Chapter 3: Research Methodology................................................................................................35
3.1 Introduction..............................................................................................................................35
3.2 Research Philosophy and Justification for choice of philosophy............................................35
3.3 Research Approach and Justification for the choice of the Research Approach.....................36
3.4 Research Design and Justification for selecting the particular Research Design....................37
3.5 Research Strategy and the Justification for the choice of the strategy....................................38
3.6 Sample and Sampling Techniques...........................................................................................38
3.7 Data Collection and Analysis..................................................................................................38
Chapter 4........................................................................................................................................39
Figure No 1: Pie-Chart Showing Gender...................................................................................40
Figure No 2: Bar Graph Showing Gender.................................................................................40
Table No 1: Table of Gender.....................................................................................................40
Figure No 3: Pie chart showing age group................................................................................41
Table No 2: Table of Age Group...............................................................................................41
Figure No 4: Bar Graph showing income demographics..........................................................42
Table No 3: Table of Income.....................................................................................................42
Figure No 5: Bar Graph showing responses on independent variables.....................................43

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Table No 4: Table of Independent responses............................................................................44
Figure No 6: Bar Graph showing responses on independent variables.....................................45
Table No 5: Table of Independent responses............................................................................45
Figure No 7: Bar Graph showing responses on independent variables.....................................46
Table No 6: Table of Independent responses............................................................................46
Figure No 8: Pie chart showing responses on accessibility of stores........................................47
Figure No 9: Bar Graph showing responses on accessibility of stores......................................48
Table No 7: Table of major impact on brand loyalty................................................................48
Figure No 10: Bar Graph showing responses on value creation...............................................49
Table No 7: Table of value creation responses..........................................................................49
Figure No 11: Bar Graph showing proper communication results............................................50
Table No 8: Table of communication responses.......................................................................50
Figure No 12: Bar Graph showing promotion influencing brand loyalty.................................51
Table No 9: Table of promotion influencing brand loyalty responses......................................51
References......................................................................................................................................56
Appendices....................................................................................................................................63
Appendix 1.................................................................................................................................63
Survey Questionnaire.................................................................................................................63

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DISSERTATION
Chapter 1: Introduction
Overview
Customer loyalty is the key objective that ensures customer relationship management by the
business organizations. According to Kandampully, Zhang and Bilgihan (2015), having a loyal
customer base is necessary for the business organizations to sustain in the competitive market. It
has been seen that the business organizations earn more profit and revenue from the existing and
the loyal customers compared to the newly attracted customers. The business organizations can
always count on the return on investment on the loyal customers, as the business organizations
rely on the loyal customers for sustaining the competitive market. The success of the business
organizations is determined by the existing number of loyal customers.
Adequate and increased sales determine the success of the business organizations. As
mentioned by Westberg and Pope (2014), having an effective and efficient sales promotion
strategy is a technique undertaken by the business organizations for retaining the customers.
Sales promotion helps in creating an element of surprise among the existing customers with the
hope of something new at regular interval. Additionally, effective sales promotion provides an
opportunity for the business organizations to enjoy the products and services offered at decreased
rate for a limited period.
The UK market is selected for this study that is saturated with a variety of fast food chains
offering similar food and beverage items that has led to tough and intense competition. Apart
from McDonald’s, other fast food chains in the UK are Burger King, KFC and Pizza hut. Intra-
organization competition is highly prevalent in the UK, as the market is crowded with increased
number of McDonald’s outlets. This has led to customer’s brand loyalty issues for McDonald’s
of Highbury Islington branch, London because other branches in the area are successful in