Customer Loyalty Programs Analysis

This assignment delves into the world of customer loyalty programs. It requires you to analyze various aspects of these programs, including the factors that drive customer participation, their impact on brand loyalty and sales, and key design considerations for maximizing effectiveness. You'll need to research academic literature and real-world examples to support your analysis and provide insightful recommendations for businesses looking to implement or improve their loyalty programs.

RESEARCH PROJECT

Table of Contents
PART 1............................................................................................................................................1
1.1 Research project outline...................................................................................................1
1.2 Contributive Factors to investigation project choice........................................................2
1.3 Literature review..............................................................................................................2
1.4 Research methodology.....................................................................................................5
TASK 2............................................................................................................................................8
2.1 Resources efficiency.........................................................................................................8
2.2 Questionnaire....................................................................................................................8
2.3 Recording and collection of data......................................................................................9
TASK 3..........................................................................................................................................11
3.1 Research evaluation technique.......................................................................................11
3.2 Analysis of data..............................................................................................................11
3.3 Conclusion and recommendations..................................................................................14
TASK 4..........................................................................................................................................15
4.1 Power Point presentation................................................................................................15
REFERENCES..............................................................................................................................16

PART 1
1.1 Research project outline
Title : Assessing weather consumer loyalty and rewards schemes actually works – case study of
ASDA.
INTRODUCTION
Clients loyalty is the measure through which long term relation with the customers are
maintained which helps in providing profitability to business. It is a very important concept as if
trust is maintained than the clients feedback can be utilised for making improvements in the
business operations and their total output. Customer loyalty can be achieved if organisation
receives reward in return from the purchaser. ASDA is a British supermarket retailer
organisation which was incorporated in 1965. Following report is prepared in order to help the
cited company to understand the importance of customer loyalty and other payment schemes for
the employees (McCall and Voorhees, 2010). A survey will be conducted in order to analyse
what is the response of other on subject matter. For conducting the research different methods
will be utilised which are discussed in detail below.
Background
ASDA is a very huge company and has provided employment to more than thousand human
resource. It was started in 1965 and till now it is experiencing good growth and expansion. It
deals in various products like food items, garments recreational goods etc. Its contribution in
countries charity is also evident as every year it is doing good contribution in the development of
society (Huang and Chen, 2010). As there are many other firms also which are dealing in same
product type but due to their effective pricing strategies the cited company does not find it
difficult to increase it sales or to expand. It is very important for ASDA to have customer loyalty
so that clients feedbacks can be utilised to make improvements and therefore productivity can be
increased more. Apart from this employee reward schemes are also very much crucial as in order
to achieve the desired goals it is important that human resource working with the ASDA (Kumar,
2013).
Aim and Objectives
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Aim – To examine weather loyalty from customers is helpful or not and also to understand the
impact of employee reward schemes.
Objectives
 To discover the role of consumer loyalty programmes
 Understanding the need of reward schemes in ASDA
 To recognise the relation between incentive plans and consumer loyalty
Research Questions
 Does consumer loyalty towards company works?
 How growth of business is affected by consumer loyalty?
 How different reward schemes contributes in companies growth?
1.2 Contributive Factors to investigation project choice
Development is very important for any type of business organisation. For same it is very
crucial that information is gathered from the external and internal surroundings which can serve
as a base for growth. There are a number of areas in the cited organisation data for which is
required but to determine weather customer loyalty is helpful or not is very important. This will
help in understanding the value of true clients and also their contribution in expansion of
business can be figured out (Bagchi and Li, 2010). If the consumer loyalty is not achieved than it
may have unsupportive impact on the growth of business. Negative publicity by consumers
affects the sales of organisation to a great extent and therefore it becomes difficult to achieve
organisations goals and objectives. With this it is also necessary to understand that weather the
adopted reward schemes adds to total development of business or not so that accordingly future
decisions can be taken regarding programs. Only if it is experienced that the schemes that are
adopted by the company are helping in improving the employees morale and resulting into total
reduction in cost than only these schemes should be continued (Aaker, 2012).
On the other hand if it is analysed that after providing the human recourse various incentives
there is no change in the performance of an individual than such practice has no use to be
continued. When company gets to know the various elements on how clients consider any
company to be good and effective such points act as measure to bring improvements in the
performances. Therefore to find out the relevant data following report is prepared which will tell
the user how it customer loyalty and reward schemes help in the development of any business
type (Dorotic, Bijmolt and Verhoef, 2012).
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1.3 Literature review
As per Allaway (2011) being loyal with clients is of essential significance as it helps in
accomplishing organisation goals. At the point when organizations are fruitful in keeping up trust
with their customers more exchanges are supported and long haul connection is built up with
them. When it is guaranteed by the purchasers that items and administrations given by the
organization are of good quality than they accomplish greater interest in purchasing their items
as they realize that they will be getting high fulfilment in the wake of purchasing that brand. In
the event that it is assimilated that organization is not faithful with their customers than it will
have negative effect on its execution as once they recognise that organization is not offering
what they really guarantee or promise than it deals get decreased in the future. Writer
recommended that devotion is the prime prerequisite for building up powerful association with
customers and encountering development and improvements. In the expressions of Bell (2014)
keeping up loyalty with various shoppers likewise lessen up the cost of organization as once they
know about the items and different administrations of association they request less consideration
and help company by becoming the working representatives if required and also help themselves.
Rather than requesting client bolster benefits now and again they even help other buyer in
settling their quarries while their visit for purchasing in stores. Creator gave stress on how along
these lines a simple functioning surroundings are produced as directors don't work under the
stress. Worry of keeping up value productivity additionally get diminished through this idea as
once customers are happy with the result of refereed organization they don't switch to other
brands often which is an exceptionally positive factor for ASDA as it has many substitutes in
outside surroundings and face a good competition Bijmolt, Dorotic and Verhoef (2011). With
this there are additionally numerous different points of interest of customer responsibility
programs which are offered by Brinkmann (2014) who highlighted the benefits of same in setting
of encountering development and extension. Author says that when customers are faithful with
the organization they give a powerful criticisms and legit proposals which can be additionally
used for making changes and developments in the current items. As customers use the offerings
more on constant basis they have more knowledge about its positives and negatives which can be
used as a system for generating corrective measures to expel these imperfections. This will build
consumer loyalty and utility of same product consequently add up to yield will get raised which
will additionally climb the aggregate deals. He additionally said that shoppers which are faithful
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towards the organization go about as a brand diplomat. Aside from ad or other showcasing
mouth exposure is the best. It dislike customers share just their awful experience but rather
likewise enlighten others regarding their great experience which they have with a specific brand.
Achievement when talked about impact more deals and request in showcase which is sure move
for given endeavour.
According to the perspectives of Chen and Pearcy (2010) no individual in business work
for free or give his labour without demanding anything in return consequently uniquely not in
ASDA which is not a deliberate administration industry. Subsequently it winds up noticeably
imperative that they are given the required motivators consequently so the profitability of big
business stays insufficient. Prizes are the profits which are given to the representatives working
with an association with a goal of acquiring something consequently which can be monitory or
non monitory. Motivators can be used for spurring and moving diverse representatives to work
with their most extreme devotion as when they realize that their endeavours will be perceived
than the vibe propelled. Aside from this it additionally bring rivalry among different
representatives as all with a specific end goal to substantiate themselves better they enhance
quality and effectiveness so they get more name and notoriety in business.
Crossand et.al (2010) suggest through the system of reward scheme management also
gets to know about the capabilities of an individual. Along these lines administration can
likewise becomes more acquainted with about its qualities and shortcomings and in like manner
take remedial activities for the zones which should be enhanced or altered. Dorotic, Bijmolt and
Verhoef (2012) says that arrangement of reward giving draws in more workers towards the
business and furthermore helps in decreasing the turnover proportions as when work is
sufficiently paid for their agonies and endeavours they feel more fulfilled and likewise
contributes in development of business. Along these lines it turns into a device to accomplish
association objectives. Best level of every representative is distinguished through persuading
them which additionally help in basic leadership in regards to choice taking for examinations and
arranging advancement programs for big business.
As indicated by McNiff (2014) shopper dedication and prizes plans is an imperative
device for accomplishing association development. For any speciality unit client and
representatives both are of essential nature as profitability and beneficially depends such a great
amount on them. It must be guaranteed that faithfulness is kept up with the goal that long haul
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advantages can be seen in business and furthermore representative ought to be sufficiently paid
to complete the work in required way.
1.4 Research methodology
Its basically a deep and investigative study about any particular topic. Research is divide
in two categories one is arbitrary method (imaginary) another one is scientific method (reality
based) As along with scientific method it is classified in quantitative method and qualitative
method. Research is defined Re+search = research,as doing search again and again on some
particular topic. This study is done in very detailed form, and the method go with many ways
like surveys, questionnaire, interviews, and many more (Mackey and Gass, 2015). Data
collection must be related to the relevant topic and can be done by various methods. Research
should be clear and understanding, applicable and classified accurately (Dorotic, 2011). Some of
the steps that helps to do research are as follows:-
Research philosophy:- research basically dwells with deep and investigative study on the
particular problem, researcher go along to doing study by adopting various methods. A good
research always depicts ground level reality and facts, initially researcher focused on the problem
and conduct facts and information and also referred the old books, researches which is done by
someone else and they count as in literature review (Brinkmann, 2014).Literature review is
important stage through which you also go through the already done studies books and study the
matter and if they find something relevant they also include in research. Same with the
consumer,they read and research almost every company of that particular product and
somewhere client's started made their perception after reading about the ingredient.
Research approach:- This approach involves the hypothesis which person developed by
reading about topic. Hypothesis is basically the assumption made by the researcher and this is
person's point of view. This is important regarding the customer's loyalty through the brand or
company. Client's loyalty depends on the reputation and image of the organisation whatever they
depict in front of consumer and what services they provide to consumer if they stand on the
expectation's of the client's and provide them gratification then surely they make good point of
view (Glesne, 2015).
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Research design:- It is a detailed information criteria which consist of the facts and
purest figures and it is quite descriptive research and includes the realistic contest based or re
search on the ground level. This research done in qualitative method instead of quantitative. It try
to solve the problem with the help of present as well as past scenario through the data analysis by
using sampling methods of the populations. Its very important and basically focus on the
research questions, Research design consist of data collection and data analysis they equally
support this arrangement (Taylor, Bogdan and DeVault, 2015).
Data collection:- Its very important step in research in this stage they start collecting data
and by doing this, researcher is one more step ahead of the conclusion stage. The information can
be primary either secondary research. In primary data, the information is collect by researcher for
the first time on the other side in secondary data it is already done research by someone else and
we have to just recheck the sample behind this there is reason of some errors and mistakes, this is
not much time taking method. Consumer can adapt any of method as per his convenience
(Silverman, 2016).
Sampling:- It is a acting which is used for conducting data. The sampling method is
classified in two playing one is random sampling, in this sampling know-how consumer
randomly take sample as according to his convenience there is no stick method to do random
sampling on other hand, non random sampling in which consumer has to follow standard so
along with they have to do according to that. This is important to treat all the sample fairly and
equally so consumer can reasonably do research and bring out the actual conclusion (Flick,
2015).
Data analysis:- Whatever the data we collected by doing sampling method, next step will
be to analyses the data , identify and interpretation too. Consumer has to be compare the
resultant from the hypothesis he made initially,and eventually after comparison the client will get
to know the actuality what they used to think and what is actuality (Panneerselvam, 2014).
Validity and reliability:- It seems to be trustworthy research when the other researcher
will also use the same method and proceed with the same conclusion and it will also depict the
loyalty of clients towards the particular brand (Kopalle, 20120).
1.5 Gantt chart
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It is graphical representation of the time taken by company in presenting the different
time scale. Through this graph it can be analysed how much time was consumed by each activity
as various task require different amount of time depending upon its nature and complexity.
Procedures which are analytical in nature and require crucial decision making consumes more
time on the other hand those activities which are of less importance can be completed utilising
less time frame. Given below is the distribution of different activities which were performed to
complete the given research (Henderson, Beck and Palmatier, 2011).
Activities 1 2 3 4 5 6 7 8 9 1
0
11 12 13 14 15 16
Intimateing
investigation
Formulating
goals and
subject
matter
Coordinatin
g
formal study
Working
methodolog
y
Assembling
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Primary
data
Data
analytical
thought
process
Writing
results
Giving
recommenda
tions
Gathering
Feedbacks
from
instructor
Making
required
changes
Presenting
final report
TASK 2
2.1 Resources Match
Resources taken in use while doing the research has major effect on the effectiveness of
the investigation (Saili, Mingli and Zhichao, 2012). It is very important that the selected medium
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is capable of giving the desired results and are relevant to subject matter. As enough of
individuals time and companies products are engaged in the study, if reports results do not match
the requirement or fails to full fill companies objective than the whole investigation will go in
waste. To collect all the required information it is important factor is that all those on whom the
questionnaire is conducted gives the relevant data to the user and do not misguide him by
providing false information. With this another major need is of availability of enough time (Bose
and Rao, 2011).If it is observed that researcher do not have the required time with him to present
the report than this will promote carelessness and hence he may skip data which is of crucial
nature and therefore the end results will be less effective. Apart from this requirement of efficient
human resource will also be their as to conduct the various task of investigation their
contribution is must and it should be ensured that all the required information is provided to them
on time so that they can give the desired outcomes to the user.
2.2 Questionnaire
Name
Age
Gender (M) (F)
1. According to you does the reward schemes has their contribution in the growth of ASDA?
 Yes
 No
2. Is it beneficial to make investments in the different incentive plans?
 Yes
 No
3. Does Consumer loyalty plays an important role in development and enhancement of business?
 Agree
 Disagree
 Strongly Agree
 Strongly Disagree
4. Does the products and services of ASDA satisfies the consumer?
 Yes
 No
5. Do you think company should work more on improving products quality?
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 Yes
 No
6. Are the products of ASDA comparatively less expensive than other in same field?
 Yes
 No
7. Any suggestions for the company.
2.3 Recording and collection of data
1. According to you does the reward
schemes has their contribution in the
growth of ASDA?
Frequency Percentage
 Yes
 No
16 80%
4 20%
2. Is it beneficial to make investments in the
different incentive plans?
Frequency Percentage
 Yes
 No
14 70%
6 30%
3. Does clients loyalty plays an important
role in development and enhancement of
business?
Frequency Percentage
 Agree
 Disagree
 Strongly Agree
 Strongly Disagree
12 60%
2 10%
6 30%
0 0%
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4.Does the products and services of ASDA
satisfies the clients?
Frequency Percentage
 Yes
 No
14 70%
6 30%
5. Are you a regular client of company Frequency Percentage
 Yes
 No
16 80%
4 20%
6. Are the products of ASDA comparatively
less expensive than other in same field?
Frequency Percentage
 Yes
 No
16 80%
4 20%
TASK 3
3.1 Research evaluation technique
In order to collect the data in the given research use of both qualitative and quantitative
data is done so that complete information can be gathered. Interpretations are done of the various
facts that came in front while collecting relevant knowledge. With this use of pie charts that are
part of quantitative data is also done which helped researcher in doing the comparative study. All
the answers are converted into graphs which give user a complete understanding just by looking
at them. It is considered to be better as user do not have to go through the complete text and can
reach to conclusion in seconds (Evanschitzky, 2012).
3.2 Analysis of data
Given below is the graphical representation of the survey conducted on sample size of 20.
Theme 1- Reward system is considered to be significant
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Interpretation – When it was asked to the employees that weather the various reward schemes
which are practised by ASDA are crucial or not then 80% of respondents gave the positive
feedback and rest 20% disagree with the statement as concluded from the above figure. It shows
that majority of employees are in factor of the reward schemes.
Theme 2- Majority of employees favour investment in reward scheme
Findings – When it was asked to the human resource that weather management should invest
more in the reward schemes than 70% of respondents said that yes it is beneficial to make further
investment in this section. Rest 30% employee disagree with the idea of this concept and
disproves the investment in incentive plans.
Themes 3- Customer loyalty consider important by majority
12
16
4
Yes
No
16
4
Yes
No

Findings – Customers were asked to give their views on the loyalty concept that weather it is an
important concept or not for companies growth. Different results were found through the
questionnaire as 60% of the respondents agrees with the statement whereas 30% disagrees with
the same. Remaining 10% consist of those respondents who are complete in favour of the clients
loyalty programs
Themes 4- Clients are satisfy with the companies offerings
Findings – When respondents were asked about the clients feedback regarding the satisfaction
level of customers in respect of the products and services it is analysed that 70% of the
consumers are happy with what is being offered to them and rest 30% are dissatisfied with same.
13
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- Organisation has got many regular consumers
Findings – By conducting the survey it is identified that cited company is experiencing
continuity in its clients as most of its consumers are of regular nature. They do not switch to new
brands and stick to the offerings of cited company as 80% are regular clients of company and
rest 20% switch to other companies as well.
Theme 6 Prices of ASDA products are less than that of other brands
Findings – Response of various customers shows that company is successful in keeping the
prices effective as the products are favoured by consumers over the other options available. This
14
16
4
Yes
No
16
4
Yes
No

is concluded from the given responses from the clients according to which 80% agreed to the fact
that price of ASDA products are minimum.
3.3 Conclusion and recommendations
From the give report it can be summarised that both consumer loyalty and employee
schemes are are very important for companies growth and development. When clients are loyal;
towards the organisation they give the true feedbacks to the producers which can be further
utilised to make required changes in the existing commodities. As client is the ultimate user of
any item management needs to ensure that they do not find any problem regarding the use of that
offering and if they get maximum satisfaction from their purchase they can converted into long
term users. Also from the given report it can be concluded that reward schemes for ASDA are
very crucial as this helps in improving total productivity of enterprise (Gómez, Arranz and
Cillán, 2012). These various schemes helps in motivating the employees and bringing out best
out of them which is helpful in achieving the organisational goal and objective. This shows that
workers turnover ratio can also be reduced as when they are recognised for their better efforts
they feel good and like to work in the same working surroundings. This encourages others also to
improve their efficiency as everyone likes to be appreciated and hence give his best.
Therefore, it is suggested to the company that it should work more on increasing the total
customer loyalty programs so that same can be utilised in increasing the brand image in the
market. It should be utilised by making the loyal clients representatives of various services as
mouth publicity is one of the most effective medium of promotion. Clients feedback should be
effectively taken so that accordingly improvements can be done in own business enterprise. With
this it is also advised to the management of ASDA that more focus should be given on the
reward schemes so that they are framed in such a manner that it can bring best out of working
staff. Different incentive plans should be designed in such a manner that the attracts more and
more employees and they give the required outputs (Bijmolt, Dorotic and Verhoef, 2011).
Justification for future consideration
Given research report which is prepared on the topic does consumer loyalty and rewards
schemes actually works or not in respect to ASDA company can be utilised by different users to
enhance their knowledge. As the title of project is common for all the business entities same
study can assist other organization as well which are also not sure about this concept. Apart from
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this the material can also be helpful to different professors as it can act as a guide book for them
to continue with the same topic in the lecture.
TASK 4
4.1 Power Point presentation
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REFERENCES
Books and Journals
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framework and research agenda.Cornell Hospitality Quarterly.51(1). pp.35-52.
Huang, C.T. and Chen, P.T., 2010. Do reward programs truly build loyalty for lodging
industry?.International Journal of Hospitality Management.29(1).pp.128-135.
Bagchi, R. and Li, X., 2010. Illusionary progress in loyalty programs: magnitudes, reward
distances, and step-size ambiguity.Journal of Consumer Research.37(5). pp.888-901.
Dorotic, M., Bijmolt, T.H. and Verhoef, P.C., 2012. Loyalty programmes: Current knowledge
and research directions.International Journal of Management Reviews.14(3). pp.217-
237.
Henderson, C.M., Beck, J.T. and Palmatier, R.W., 2011. Review of the theoretical underpinnings
of loyalty programs.Journal of Consumer Psychology.21(3). pp.256-276.
Bose, S. and Rao, V.G., 2011. Perceived benefits of customer loyalty programs: Validating the
scale in the Indian context.Management & Marketing.6(4). p.543.
Evanschitzky, H., Ramaseshan, B., Woisetschläger, D.M., Richelsen, V., Blut, M. and Backhaus,
C., 2012. Consequences of customer loyalty to the loyalty program and to the
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Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
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Glesne, C., 2015.Becoming qualitative researchers: An introduction. Pearson.
Brinkmann, S., 2014. Interview. InEncyclopedia of Critical Psychology(pp. 1008-1010).
Springer New York.
Silverman, D. ed., 2016.Qualitative research. Sage.
Flick, U., 2015.Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Panneerselvam, R., 2014.Research methodology. PHI Learning Pvt. Ltd..
Kopalle and et.all., 2012. The joint sales impact of frequency reward and customer tier
components of loyalty programs. Marketing Science.31(2). pp.216-235.
Gómez, B.G., Arranz, A.M.G. and Cillán, J.G., 2012. Drivers of customer likelihood to join
grocery retail loyalty programs. An analysis of reward programs and loyalty cards.
Journal of Retailing and Consumer Services.19(5). pp.492-500.
Bijmolt, T.H., Dorotic, M. and Verhoef, P.C., 2011. Loyalty programs: generalizations on their
adoption, effectiveness and design.Foundations and Trends® in Marketing.5(4).
pp.197-258.
Aaker, D.A., 2012.Building strong brands. Simon and Schuster.
Kumar and et.all., 2013. Establishing profitable customer loyalty for multinational companies in
the emerging economies: a conceptual framework.Journal of International
Marketing.21(1). pp.57-80.
Dorotic and et.all., 2011. Do vendors benefit from promotions in a multi-vendor loyalty
program?.Marketing Letters.22(4). pp.341-356.
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Saili, T., Mingli, Z. and Zhichao, C., 2012. The effects of loyalty programs on customer loyalty:
The mediating role of customer value and the moderating role of relationship benefits.
African Journal of Business Management.6(11). p.4295.
Online
Customer loyalty or reward programs. 2016. Available through
<https://www.business.gov.au/info/run/goods-and-services/selling-goods-and-services/
customer-loyalty-or-reward-programs>. [Accessed on 22nd July 2017].
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