Consumer Loyalty and Rewards Schemes in Amazon

RESEARCH
PROJECT

Table of Contents
TITLE: ............................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
Over view of the Research ....................................................................................................1
Back Ground of the Research ................................................................................................1
Significance of the research....................................................................................................2
Research Objectives...............................................................................................................2
Research Question .................................................................................................................3
CHAPTER 2: LITERATURE REVIEW ........................................................................................3
2.1 The various factors that are essential in the process of consumer loyalty and rewards
schemes...................................................................................................................................3
2.2 The effective elements that are related with consumer loyalty and reward schemes within
Amazon...................................................................................................................................4
2.3 The importance of customers loyalty in developing organisational performance..........6
2.4 The essential ways by which Amazon can sustain customers for long time....................7
CHAPTER 3: RESEARCH METHODOLOGY ...........................................................................9
Types of Investigation............................................................................................................9
Research Design.....................................................................................................................9
Research philosophy...............................................................................................................9
Research Approach.................................................................................................................9
Research Sampling...............................................................................................................10
Data Analysis........................................................................................................................10
Ethical consideration............................................................................................................10
CHAPTER 4: DATA ANALYSIS ...............................................................................................10
CHAPTER 5: RECOMMENDATION AND CONCLUSION ....................................................21
5.1 Recommendation ...........................................................................................................21
5.2 Conclusion .....................................................................................................................21
REFERENCES..............................................................................................................................23

TITLE:
To analyse the effectiveness of consumer loyalty or rewards schemes and its impact on
developing organisational performance and productivity of firm. A case study of Amazon, United
Kingdom.
CHAPTER 1: INTRODUCTION
Over view of the Research
Today in competitive market environment, every business organisation needs to retain its
consumer to accomplish its objectives and goals in the future. As consumers are the most
important key factor to affect the business of the company in the long term,they should be
motivated to purchases the same of particular company .For this continuity , every business
organisation adapt many types of methods and tactics to retain its consumers (Bijmolt, Dorotic
and Verhoef, 2011). In the following report it will be discussed that different consumer loyalty
and reward programmes are used by enterprises especially in retail market of United Kingdom.
The fundamental purpose of each business organisation is to attaining high growth and success at
market place through offering variety of goods and services to their significant buyers. There are
some objectives of using the reward and loyalty programmes which are explained as followings.
The loyalty and reward programmes to make consumer experience strong in a positive way so
that mire sales of the product can be possible in the long term. For consumer satisfaction, the
organisation needs to support any query at any time. The rewards and loyalty programmes are
used to show to the consumers that they are important for the business and they will not feel less
satisfied after purchase at Amazon. As most rated marketing is the word of mouth. So the
company makes effort in consumer loyalty programmes to increase more new consumers by its
current costumers reference.
Back Ground of the Research
Amazon company of UK is biggest online shopping company which deals with selling
various types of goods. Besides this Amazon implement various types of loyalty schemes and
reward system for its customers to increase the performance of the company. Customer loyalty
schemes reflect the willingness of customer to buy product from the Amazon resulting
positiveness in the effectiveness of performance of the company (Blut, Beatty and Brock,
2014). It shows customer satisfaction level and value of the products or services. Amazon give
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loyalty points to his loyal customer which aid to increase the customer satisfaction level, and
increase the profitability of company by these loyalty program and it also enhance the rate of
selling of the products on Amazon. Customer redeem that loyalty point for discount on different
types of products, which maximize the profit and also enhance the performance of the company.
Significance of the research
This project research can make it clear that how its competitor and consumers are having
preferences. Amazon is one of the finest commerce organisation of United Kingdom. Being a
famous brand, it needs to maintain its image and position in the market. The basic purpose of
selecting the topic of customers loyalty and rewards schemes is that it helps in enhancing the
skills and knowledge of learner through analysing various elements that are related with
consumers loyalty and its importance on developing organisational performance and productivity
(Blut, Beatty and Brock, 2014). In the following research project many different programmes
related to long time loyalty ans reward for consumers. There are some factor which affect the
results and to control the negative effects, the company make some appropriate plan and
procedures for the best results. To have positive impact on the consumer by these
programmes ,some efficient resource can also be used in future. Techniques of loyalty
programmes help in evaluating the performance of the company like Amazon. This research
project includes different benefits on the choice of the consumers toward product.
Research Objectives
One of the most common reason to conduct research project on loyalty and rewards
schemes is that they play a vital role in success of the business organisation in any industry
(Castañeda, 2011). By this research company performance can be evaluated on regular basis to
obtain its objectives and targets related to its purchase. Some essential objectives are evaluated as
below:
 To identify various factors that are essential in the process of consumer loyalty and
rewards schemes.
 To evaluate different elements that are related with consumer loyalty and reward schemes
within Amazon.
 To determine the importance of customers loyalty in developing organisational
performance.
 To suggest various ways by which Amazon can sustain customers for long time.
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Research Question
This also considered as an essential part of research project as it helps in providing proper
assistance to the researcher for effectively implementing the section of literature review (Chen
and Pearcy, 2010). Some important question are described as below:
 What are the various factors that are essential in the process of consumer loyalty and
rewards schemes?
 What are the effective elements that are related with consumer loyalty and reward
schemes within Amazon?
 What are the importance of customers loyalty in developing organisational performance?
 What are the essential ways by which Amazon can sustain customers for long time?
CHAPTER 2: LITERATURE REVIEW
2.1 The various factors that are essential in the process of consumer loyalty and rewards
schemes.
As per the view point of Cook, 2012, Amazon, being a leading E commerce business
organisation, complete the process of loyalty and reward schemes. As per the market
environment as well as consumers change their choice and preferences time to time. So the
company has to consider external and internal factors which fluctuate the loyalty of consumers.
These factor are Convenience, Expectations, Customer Service,Personal
Relationships,Rewards,Reputation and community outreach . These factors can be explained as
followings. Expectations-The product which is the main key for consumers loyalty to the same
brand has to fulfil expectation of costumers. It should be best in quality and price sop
that maximum consumers can buy the product in the long term. If the product is not upto
the expectation of consumers then it can weaken there sales and retention of consumers
in future. Customer services-This the most important factor which affect the loyalty of consumer
in the long term. If the costumer services are good then more positive image will be
established. On the other hand, if the costumer services are not effective , it can disturb
the business in the future.
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 Rewards-For Amazon , rewards are highly affecting the preference and retention for the
same product. If the company wants to continue its business at high rate then it should
consider this factor also (De Chernatony, 2010). If other organisations offer more reward
than Amazon, then the consumers might switch the brand to purchase online. Personal relationship-Representatives , sales man and customer care executive affect the
future retention of consumers. If they do not treat them well then the costumers can
discontinue with the same brand for purchase .On the other hand, if the relationship and
treatment is good then the consumer will be retained for long time in future. Reputation-The reputation is called as goodwill of the company in market. As Amazon
has a huge goodwill in the sight of its costumers as well as in the market of E commerce
benefits the company to sustain the costumers in the long term. On the other hand bad
reputation of enterprise can affect costumer retention in a negative way. Convenience-This is also an important factor which affects the costumers loyalty for
future time. If the costumer does not feel convenient towards product then no loyalty and
reward schemes can increase the sales of the product and no retention can be done .
 Community outreach-When the business organisation like Amazon tries to take more
participation in social activity to create a strong bong with its consumers then the loyalty
of costumer is increase. The company can target some causes which are important for its
costumers. It can lead to more retention of the online costumers in comparison to other E
commerce brands in United Kingdom (Dorotic, Bijmolt and Verhoef, 2012).
Thus there are many different factors which can increaser as well as decrease the
consumer loyalty for future. Today there is a cut throat competition in online shopping sites as
they are more convenient ,so the mentioned organisation must consider these above game
changer aspects.
2.2 The effective elements that are related with consumer loyalty and reward schemes within
Amazon.
As per the opinion of Gómez, Arranz and Cillán, 2012, Consumer loyalty is the
continuity in purchase by the same consumer in the long term. This is the result of consistently
positive emotional experience, physical attribute-based satisfaction and perceived value of an
experience related to product and services by Amazon. To maintain these costumers for E
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