Impact of Loyalty Card Schemes on Customer Retention in UK Retail Sector: A Study on Morrisons

This research project aims to evaluate the impact of loyalty card schemes on customer retention in the UK retail sector, with a focus on Morrisons. It will analyze the positive and negative impacts of loyalty card schemes, assess their significance in customer retention, and recommend strategies for improving customer retention through loyalty card schemes.

RESEARCH PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
Background.................................................................................................................................3
Aims and objectives....................................................................................................................3
OVERVIEW OF KEY LITERATURE...........................................................................................4
METHODS OF RESEARCH..........................................................................................................4
ETHICAL CONSIDERATION.......................................................................................................5
TIME PLAN ...................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Background
Customer loyalty card are defined as the scheme which is used in order to retain the
consumers so that they come again and again to the company (Aluri, Price and McIntyre, 2019).
This loyalty card is an incentive plan which allows the company in gathering the data relating to
the consumers by providing them discounts and different offers. The present research will outline
the impact of loyalty card scheme by Morrisons in order to retain the consumers.
Aims and objectives
Aim
“To evaluate the impact of loyalty card schemes on customer retention in the context of
UK retail sector. A study on Morrisons.”
Objectives
 To understand the concept of loyalty card schemes.
 To analyse the positive and negative impact of loyalty card scheme in retaining
consumers.
 To ascertain the significance of loyalty card schemes with regard to customer retention
within Morrison's. To recommend strategies pertaining to loyalty card schemes that contributes in customer
retention.
Research questions
1. What do you understand by loyalty card schemes?
2. What are the positive and negative impact of loyalty card scheme in customer retention?
3. What is the significance of loyalty card scheme in retaining consumers?
4. What are some strategies which can contribute in retention of consumers?
Rationale
The main reason behind choosing of this topic is that the competition is high and for
success it is very necessary for the companies to retain the consumers. Thus, this loyalty card
scheme is the latest technique in retention of the consumers. Another reason is the personal
interest of the researcher.

OVERVIEW OF KEY LITERATURE
In the words of Yoo, Bai and Singh (2018) loyalty programs are some sort of marketing
strategies which are developed in order to influence the consumer to purchase goods and services
from the company. These program include providing the consumer some offers and discounts so
that the consumer is attracted to avail the service of the company.
But Stathopoulou and Balabanis, (2016) articulates that these program help the company
in retaining the consumer for a longer because here the consumers are frequently offered
different discounts and other offers. Thus, this motivates them to be loyal to the company and in
this way the customer are retained by the company.
METHODS OF RESEARCH
Research method Justification
Research type Qualitative will be used as here the knowledge
of the research need to be developed and for
this qualitative research is more suitable
(Litosseliti, ed., 2018).
Research approach Here the inductive approach will be selected as
here the aims and objectives need to be
developed and not the hypothesis.
Research philosophy Here the interpretivism will be used as this is
more suitable with the qualitative research.
Data collection Data will be collected from both primary and
secondary source because this will help in
collecting more proper and relevant data.
Sampling The sample will be chosen with help of
random sampling and the sample is 20
marketing employees of Morrisons.
Data analysis This will be done with help of thematic
analysis as it includes analysis of data with
help of tables and charts (Bell, Bryman and

Harley, 2018).
ETHICAL CONSIDERATION
It is very necessary because if the research will not be on basis of ethics then it will not
be liked by the people. Thus, for maintaining the ethics in research it is necessary for the
researcher to collect data from all the reliable and valid sources. Also, the researcher must sign
the consent form and ethical approval form from the respondent of primary data.
TIME PLAN
Activity 1th
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Aim and
objective
Literature
Review
Research
methods
Formation of
questionnaire
Data

collection
Data analysis
Rechecking
and final
submission

REFERENCES
Books and Journals
Aluri, A., Price, B.S. and McIntyre, N.H., 2019. Using machine learning to cocreate value
through dynamic customer engagement in a brand loyalty program. Journal of
Hospitality & Tourism Research. 43(1). pp.78-100.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Litosseliti, L. ed., 2018. Research methods in linguistics. Bloomsbury Publishing.
Stathopoulou, A. and Balabanis, G., 2016. The effects of loyalty programs on customer
satisfaction, trust, and loyalty toward high-and low-end fashion retailers. Journal of
Business Research. 69(12). pp.5801-5808.
Yoo, M.M., Bai, B. and Singh, A., 2018, June. LOYALTY PROGRAM EFFECTIVENESS:
INVESTIGATING THE EVOLUTION OF BEHAVIORAL LOYALTY AND
CUSTOMER LIFETIME VALUE OVER TIME. In 8th ADVANCES IN HOSPITALITY
AND TOURISM MARKETING AND MANAGEMENT (AHTMM) CONFERENCE (p.
262).