Factors Influencing Customer Loyalty and Reward Scheme in the Food Industry

RESEARCH PROJECT

Table of Contents
CHAPTER 1: RESEARCH PROPOSAL .......................................................................................3
1.1 Research Background.......................................................................................................3
1.2 Problem statement............................................................................................................3
1.3 Research Aim and objectives...........................................................................................4
1.4 Objectives of the study.....................................................................................................4
1.5 Rationale of the study.......................................................................................................4
CHAPTER 2: Literature Review.....................................................................................................5
2.1: Factors which makes consumer loyal..............................................................................5
2.2: Concept of customer loyalty............................................................................................5
2.3: The effectiveness of customer loyalty in business sector................................................6
2.4: Factors that influence customer loyalty and reward scheme...........................................6
CHAPTER 3: PROPOSAL .............................................................................................................7
Chapter 4 .......................................................................................................................................10
4.1: Action plan- The research is required to be plan carefully in term of time and resources as
all the resources associated with the study are time projected. The gantt chart is useful as it is
a basic tool that depicts time as a for of bar or a line on a chart. ........................................10
4.2: Conclusion and Recommendation ................................................................................10
Questionnaire.................................................................................................................................11

CHAPTER 1: RESEARCH PROPOSAL
1.1 Research Background
In the present scenario of food products the competition is getting
fierce and it is unpredictably changing at rapid speed. There are various
organizations are there in the food sector which are competing with each
other for making a place for themselves in these particular environment.
Organization are looking for various options where they can get competitive
advantage over their rivals companies. These is where customer loyalty and
reward scheme came into existence as these tools are considered as
techniques which can provide a long term success to the food business.
Reward schemes refers to loyalty programme offered by a company to their
customers who most often make purchases by them. Reward scheme may
provide a customer access to company's new product, free merchandise and
special sales coupons. Reward scheme has a significant impact on the
customer loyalty which influence attitudinal and behavioural perspective of
customer to favour one brand over others. In the proposed investigation the
main area of concern taken into account is factors which influence the
customer loyalty and reward scheme for the specific are of food products.
(Flick, 2015)
1.2 Problem statement
The problem lies in the present research is to understand that whether
various factors related to customer have influence on the customer loyalty
and reward scheme or not. The sector chosen is food products that focused
on offering hygienic and quality products to their potential customers. As it is
important for the food products organization to figure out that what are the
factors which have influence on the customer loyalty and reward scheme so
that they can process the reward scheme in an effective manner. The
customer loyalty and the reward schemes are depends on the various factors
which offered by the organization to their potential customers.

1.3 Research Aim and objectives
The aim of the present study is: To assess the factors that influence
customer loyalty and reward scheme for food products .
1.4 Objectives of the study
The Objectives of the present report are specified in the manner as under:
 To understand the concept of customer loyalty
 To identify the effect of customer loyalty on business sales
 To identify the factors that influence customer loyalty and reward
scheme for food products
 To recommend the options that can be used for influence customer
loyalty for food products
1.5 Rationale of the study
The present research topic selection work has been done after the
analysis of the scope related to subject. It has evaluated that the scope of
the present research is huge. This indicates that lifting out the investigation
on the on the topic would help the researcher in attaining efficient
knowledge and understanding which will assist in future course of time.
There is no so many investigations carrying out on the present topic that
indicate that carrying out an investigation on the present topic will be helpful
for the researcher to attaining the knowledge about the particular topic.
Furthermore the study will enlighten the companies indulge in food product
business about the outcome that can be produce after implementing
customer loyalty and reward scheme in the business. The organization will
also get to know that what are the various different factors which influence
customer loyalty and reward scheme.

CHAPTER 2: Literature Review
The major focus of the food industries on attracting the new customers
whether it is done by offering various excited offers. There are various
factors available which considers as the elements regarding influence the
customer loyalty and reward schemes such as the core offer of the business,
satisfaction level of the customer, elasticity of the offer, market place, and
demographics of particular market.
2.0: Literature review
2.1: Factors which makes consumer loyal
As per the the views of Gast, D. L. and Ledford, J. R., 2014 it has been
examine that customer loyalty is depends upon the various factors. The core
offer provided by the product or the brand have the capacity to retain the
consumer for the long time and simultaneously it increase the level of the
loyalty. In accordance to Yoshida and James, (2010) satisfaction gain by the
using of the product makes a consumer loyal towards that particular brand.
Marketplace in which product is available is also consider as a factor which
influence the loyalty of a consumer towards as particular brand.
2.2: Concept of customer loyalty
According to Leary, M. R., 2016 the concept of customer loyalty it is a
tendency of favouring a brand or product over others with the influence of
attitudinal and behavioural approach. There are various factors which can
influence the customer loyalty such as satisfaction with the product or
service, product convenience or performance, familiarity and comfort with
the product and so on. Customer loyalty guides the business in attaining the
level of success and profitability because of the reason of that its customers
are consistently buying their product and they are loyal toward it which
works as the result of positive word of mouth. As per the view of Lushey
and Munro, 2015 customer relationship and reward system is helpful in the
term of increasing customer loyalty as if company offers effective rewards to
their customers than automatically the loyalty of customer increases.

Customer loyalty is well effective tool for any organization in order to create
strong market image and gaining fancy market share.
2.3: The effectiveness of customer loyalty in business sector
As per the view of Mackey and Gass, (2015) in chosen food business
the the customer loyalty is considered as backbone. The customer loyalty is
very advantageous for the business sector as it proves its effectiveness
through various elements. Word of mouth which achieve by the use of
customer loyalty programme bring the large amount of success and
profitability towards it. Organizations working hard on establishing the
loyalty programme because it is so important as it will eventually turn into
positive word of mouth which makes broader opportunities for the
organization. As per the view of Simonsohn, Nelson and Simmons, (2017 )
customer loyalty programmes are beneficial for the organizations as it can
push the business loyalty programmes from a good level to glorified level. It
makes ample of benefits for the business sector some of the most desirable
benefits given by customers loyalty programmes to their respected
businesses are brand advocacy, price insensitivity, direct referrals to new
customers and more focused support by customer side.
2.4: Factors that influence customer loyalty and reward scheme
As per the view of Tarone, Gass and Cohen, (2013) Customer loyalty is
consider as one of the most crucial and critical factor for the business
success. Customer loyalty and reward schemes are take as successful when
customers had feel great experience by it and its leads them to future
benefits. Loyal customers can influence a business is many ways such as
they will return in the future, refer friends and family to particular business,
spread positive comments about the company and even advertise the
business on the various platform such as social media. AS per the view of
Yoshida and James, (2010) there are various factors of customer loyalty and
reward scheme which can influence the business. Loyalty programmes
consider as the core offer itself which will influence as how long a customer