Research Report: Analyzing Consumer Behavior and Loyalty Programs

This report delves into the multifaceted realm of consumer behavior, emphasizing the pivotal role of customer loyalty programs and reward schemes in shaping market dynamics. It commences with an introduction highlighting the significance of consumer behavior for businesses, underscoring how understanding consumer preferences is crucial for strategic decision-making. The report outlines the research project's specifications, factors influencing project selection, and a critical review of key references. It also includes a research project proposal on consumer behavior, detailing the research application plan and procedures, including key resources and a questionnaire related to consumer behavior. Data collection methods, research evaluation techniques, data analysis, and interpretation are thoroughly examined, alongside recommendations. The report also addresses the appropriate media for presenting outcomes. The analysis covers various aspects of consumer behavior, such as the impact of loyalty programs, customer feedback, and the application of the Pareto 80-20 rule. The report also presents primary and secondary research methodologies and includes a questionnaire to gather consumer insights, providing a comprehensive understanding of the subject matter.

Consumer behaviour

Table of Contents
Introduction................................................................................................................................................4
1.1. Research project outline specifications. ...................................................................................4
1.2. The factors that contribute to the process of research project selection. ..................................4
1.3. A critical review of key references about ‘Consumer Behaviour’............................................5
1.4. Research Project Proposal on Consumer Behaviour.................................................................5
1.5 A plan and tell the procedure for the research application..........................................................6
2.1 Key resources of the research project.........................................................................................7
2.2 Questionnaire' related to the Consumer Behaviour....................................................................7
2.3 Data collection of the research project .....................................................................................8
3.1. Appropriate research evaluation techniques..............................................................................9
3.2.Data Analyses and interpretation of the research project...........................................................9
3.3. Appropriate recommendation of the research project..............................................................10
4.1. Appropriate media to present the outcomes of the Additional research to an audience..........10

Introduction
Consumer behaviour is very important for a company to as trough this it is
easy to determine the companies market position and determine the strategies
which they have to adopt for the future market. Now there are various ways
through which a company can seek consumer feedback and involve our
customers in various schemes and proposals offered by the company. Customer
loyalty program is one of the basic way to judge the customer that he is loyal or
not . Loyal customers provide 80% of the profit share as peer Pareto's rule.
1.1. Research project outline specifications.
This topic tells us about the working of customer loyalty program and reward schemes.
customer loyalty means that if a purchase their products from ALDI then they will always come to
ALDI for any kind of purchase by customer, in order to check our brand's loyalty among customer we
apply various schemes and for the result there are various ways trough which these things can be
determined like keeping a check of the program schemes after the starting of such programs like a
company starts a loyalty program by providing their loyalty card depending upon the amount of
purchases by them while they enter to the company's outlet and in return, they are getting specific gift
on behalf on the company like free parking , discounts on product, special billing counters etc. to see
the actual impact of these program a business organization have various ways such as checking about
the customer's footfall in the store or frequency of coming to the store.
(Grunert, K.G., 2011. Sustainability in the food sector: A consumer behaviour perspective. International Journal
on Food System Dynamics, 2(3), pp.207-218.). Second is average amount of purchases by the customer
under loyalty program . Third is comparison between share of profit from the loyal customer to
regular customer . Fourth is applying our collected data to Pareto 80-20 rule which says that 80% of
customers give 20% of company share and 20%of customers give 80% of share to the company's
profit.
1.2. The factors that contribute to the process of research project selection.
The influential factors that forced us to take the consumer behaviour is that it is very important
for an organization to keep an eye on the buying behaviour of our customers so that they could produce
their product accordingly , this is also checked in order to make the new marketing schemes for the
selling of the product(Rahim, R.A., Jalaludin, F.W. and Tajuddin, K., 2011. The importance of corporate social

responsibility on consumer behaviour in Malaysia. Asian academy of management journal, 16(1), pp.119-139.) .
By doing a research on the working of consumer loyalty and reward scheme program it became easy to
track he working path of a company that is whether the company is working in the right direction or not
/ by doing this it would be easy for a company to understand the future need, demand and change in the
choice of customer preferences. If a company is not doing their research work in this field then it
would be very difficult for a company to determine the future needs and market trends for the existence
of the company in the market because the product is produced for the customers and if company is not
able to understand the changing need of the customer it would be difficult for a company to survive
and sustain it's growth in the market. By studying customer loyalty it would be easy for a company to
determine its market share and could work for the increase in market share increase of the company .
1.3. A critical review of key references about ‘Consumer Behaviour’.
There are various positive factors for choosing the topic of working of consumer loyalty
program and reward scheme because it is a very important aspect for the existence of the company in
the market as a company manufacture its product for their customers in order to increase the market
share of the company ,employees should keep a track on the changing market trends and preferences of
the customer(Grunert, K.G., 2011. Sustainability in the food sector: A consumer behaviour
perspective. International Journal on Food System Dynamics, 2(3), pp.207-218.
). Second is company's growth which means that for the growth of the company they should check that
how many customer's are loyal towards their product. The negative point behind the study for this topic
is wrong hypothesis which means that if the company made wrong hypothesis about the customer's
taste then company have to face problem. There is a rule of Pareto according to his studies 80% of the
company's revenue comes from 20% of the customers and 20% of the profit from 80% of the customers
so a company starts loyalty program in order to maintain those 20% of the customers who helps to
generate 80% of the company's revenue. This is the biggest reason behind choosing this topic for the
assignment . As a client is treated as a owner of the company . This is the biggest influencing factor and
another factor is more that the client satisfaction revenue is very important for the company..
1.4. Research Project Proposal on Consumer Behaviour
There are 8 brief elements of a research paper in relation to the topic these are first is
background of the study according to this the area of research would be a field work in which the
employee has to collect feedbacks on the various promotional schemes for a company and it's
popularity level among customers, in this we provide a context for the topic on which we are doing
research in general it is introduction of the topic . Second is Statement of the problem which means

that when a person is starting a research they have to make a topic for their research and from the topic
they have to derive a problem which has to be solved by the researcher itself .third is objective in which
the researcher sets a hope and work in order to prove that his hope is correct(Grunert, K.G., 2011. How
changes in consumer behaviour and retailingaffect competence requirements for food producersand
processors. Economía Agraria y Recursos Naturales-Agricultural and Resource Economics, 6(11), pp.3-22.).
Fourth is limitations of the study which include the points which could not be included in the research
due to various reason like wide range of topic in this topic limitation is that the result would be limited
to a specific area .fifth is definition of the term which says that we should define and explain every
term related to our topic and also refer their authors .sixth is literature review in which the researcher
shows that he is well aware about the topic of research by showing that we have a good knowledge
about the topic. Seventh is methodology in this we have to determine that what are various ways trough
which researcher has used to collect data either primary or secondary
1.5 A plan and tell the procedure for the research application.
Consumer behaviour refers to the various stages that a consumer goes through before
purchasing a particular product,service etc. Individual buys a product in order to satisfy a need or to
improve his social status or simply for the gifting purpose. The buying decisions also depend on the
following factors :
 Messages,promotional materials, a consumer goes through selective exposure.
 Consumer interpretation is also included here which means how any individual perceives a
selective attention.
Gantt chart is very unique way of showing the activities and tasks. It shows the graphical representation
of the comprehensive goal of planning and implementing a work break down structure. Gantt chart is
mainly focused on creating this graphical representation which shows the scheduling and monitoring
projections.
Activities Duration
Inroduction
Literature review
Research methodology
Data analysis

Conclusions and recommendations
The various samples are taken and the result comes out on the basic information that is been given.
Consumer goes through stages like the need,information gathering,evaluation of alternatives,purchase
of product and post purchase evaluation. We see that need is the first and most important thing for the
consumer who is going to buy some of product.
2.1 Key resources of the research project
A need can be felt by the individual and it can be of any sort. Care has to be taken it order to
fulfil that particular need. It can be a need for water or food or it can go in other ways also.
Resources,or assets may include various individuals,organisations,buildings it means which is related
to the improvement of quality of life. Every individual is an important community asset and everyone
has the asset for community building. So a plan is developed in order to meet theses goals and needs.
The assets and needs are to be be taken care of. If the organisation is broad based that means if the
needs of the people are fulfilled that it is a good response to the consumer need( Economía Agraria y
Recursos Naturales-Agricultural and Resource Economics, 6(11), pp.3-22.Pérez, A., del Mar García de
los Salmones, M. and Rodríguez del Bosque, I., 2013. The effect of corporate associations on consumer
behaviour.European Journal of Marketing, 47(1/2), pp.218-238.). Their is a big relation with research
resources and questions because the questions are directly based on the resources which are being used.
These resources form the basis here like if we see the buildings then people will make a new house in
accordance to their need like if members are more then we can see that need of a big house is required.
Similarly some may buy just to improve their social image.
2.2 Questionnaire' related to the Consumer Behaviour.
CONSUMER BEHAVIOUR
QUESTIONNAIRE
Name :
Age :
Sex a)Male b)Female
Phone Number : Email id :
Q.1. What is your favourite brand in soft drink?

a)Coke b)Pepsi c)Thumbs Up d)Limca
Q.2 How often do you drink ?
a) once in month b) twice a month c)every week d)not at all
Q.3. Why do you like it?
a) taste b) price c)colour d)popularity
Q.4. How much do you drink daily ?
a) twice a day b) thrice c)four times d)not at all
Q.5. Who else in your family drink it ?
a) father b)sister c)brother d)mother
Q.6) What changes you would like to see in the softdrink?
a)taste b)colour c)packing style d)the soda content
Q.7. Which substitute for this softdrink would you prefer?
a) tea b)coffee c)juice d)shake
2.3 Data collection of the research project
Primary research refers to the factual,first hand accounts of the study which is done on the
actual person or who was the part of the research. It simply means doing original research. Here, we
can see that the primary research was done with respect to the people around. We examined around 30
people and we followed what they felt about the brand of a soft drink. They had various answers to the
brand and it was very useful to know.
If we see to secondary research then we will find that this type of research helps in the interpretation
and analysis of the primary research. It refers to the making out a proper and useful result out of the
information given out(Grunert, K.G., 2011. How changes in consumer behaviour and retailingaffect
competence requirements for food producersand processors. Economía Agraria y Recursos Naturales-
Agricultural and ). It means that with proper information a conclusion can be made out and hence it
will be useful in future.Various reports are made on this basis to provide a proper answer to the
questions.

3.1. Appropriate research evaluation techniques.
Research evaluation have five steps and these are planning the research, positioning the
research, collecting data, analysing the the data and transfer the research findings. Positioning explain
the program that will focus of the research, explain the boundaries of the project or part of project to
investigate. In planning the evaluative research, we collect the data then we analysis. We can collect
data in three types and these are explain who will be the base of information, collect data help of
questionnaires and interview and collecting the data. Research evaluation divide in to five methods and
these are qualitative research, organizing qualitative data for analysis, systematic reviews, quantitative
research designs and quantitative research statistics. Quantitative technique force measurement of goals
and objectives and is mathematical analysis of details collect through interview and surveys.
Quantitative data is descriptive in the nature and hard to solve the quantitative data. Qualitative
research collect information that is not form of statistics like as questionnaires, interview and
observations and it is also known as exploratory research. Qualitative research is designed to collect
data from social inquiry, questionnaires, and sample paper etc. Systematic reviews similar as literature
review that collects and find multiple research papers. Systematic reviews is heap of all good research
on a question which is done by specific studies. Quantitative research designs include randomized
experiments and quasi- experiments(.Page, T., Thorsteinsson, G. and Ha, J.G., 2012. Using colours to alter
consumer behaviour and productsuccess. International Journal of Contents,8(1), pp.69-73.). In Randomized
experiment, Objects or peoples are randomly selected in an experimental team. Quantitative research
statistics using statistics in evaluation, Statistical hypothesis testing, reporting the confidence interval,
ordinal level variables, selecting effective statics and question related criteria.
3.2.Data Analyses and interpretation of the research project
Qualitative and quantitative data is part of advanced evaluation method. there are certain points
that can help to understand and these are always start with your research goals, basic analysis of
quantitative and qualitative information and interpreting information. Analysing data include
questionnaires and interviews that always start from comments and suggestion of company research
objectives. It help to concentrate on analysis like as improve a project by finding its cons and pros.
Basis analysis of quantitative information make duplicate of company details and save main copy in
other system and it is basically rating , yes and no, ranking etc. recommend answer range like 30
person ranked 1, 40 person ranked 2 and so on and calculating mean , average for every question.

Qualitative information get from interviews, questionnaires and focus group. In interpreting
information put the possibility, giving advice to help employee improve the project(Young, W., Hwang,
K., McDonald, S. and Oates, C.J., 2010. Sustainable consumption: green consumer behaviour when purchasing
products.Sustainable development, 18(1), pp.20-31.).
3.3. Appropriate recommendation of the research project
There are 4 steps that help to increase business performance and these are to give attention to
employee's performance, know company finance, review company processes and think strategically.
Company needed good bonding with his employees or mangers and owner of company maintain good
relation with his employees that help to give good results and effective team work that setup company
competitive edge. Strategic plan support company to achieve its goals and objective and strategic plan
include marketing mix, SWOT analysis and PESTLE analysis and platform marketing etc. that increase
the company performance and also encourage to achieve goals and objectives so strategic plan is
important for company performance. Strategic plan help to understand company strength , weakness
and threats and opportunities and these four things also part of SWOT analysis. Strength and weakness
are internal factor that is very important for company performance. Company strength help to stand
company in market confidentially and if company need to identify there weaknesses and convert them
their strength that also help increase performance of company. Internal factor also include financial
resources like funding, investment and source of income, HR likes employees, find natural resource
copyright and trademarks that also affect on company performance( Asian academy of management
journal, 16(1), pp.119-139.Penz, E. and Hogg, M.K., 2011. ). Opportunities and threats are external factors.
Threats such as government polices, taxes, competitors and new entrant and Opportunities such as new
technologies that help to increase company production very quickly which affect on company
performance.
4.1. Appropriate media to present the outcomes of the Additional research to an audience
Its include Understand your audience, Executive summary, establish credibility, manage
expectations and take it the next level. First company need to identify “Who is company audience?
This is very important to identify their consumers if company target wrong individuals then how can
they reach their target. Executive summary is to prepare. Company need to focus on main details and
its include brief explanation on the objectives and goals, level of issue, task success rating and at last
recommendation if needed(. Development of a green consumer behaviour model. International Journal of
Consumer Studies, 37(4), pp.414-421.). Most important factor is time that affect on our presentation and

presentation of finding help to manage the expectation of company stakeholder. Issue of find the data
and high tracking recommended. It also included qualitative and quantitative methods, social marketing
research, integrating formative research, integrating process evaluation, outcome evaluation and at last
conclusion. Formative research provide various data that help tom develop internal research. Social
marketing is a process of innovating and using many of equipment used to develop social marketing
programs such as focus team, consumer database.

References
Books and journals
Young, W., Hwang, K., McDonald, S. and Oates, C.J., 2010. Sustainable consumption: green consumer
behaviour when purchasing products.Sustainable development, 18(1), pp.20-31.
Gössling, S., Scott, D., Hall, C.M., Ceron, J.P. and Dubois, G., 2012. Consumer behaviour and demand
response of tourists to climate change.Annals of Tourism Research, 39(1), pp.36-58.
Bruwer, J., Saliba, A. and Miller, B., 2011. Consumer behaviour and sensory preference differences:
implications for wine product marketing. Journal of Consumer Marketing, 28(1), pp.5-18.
Shah Alam, S., Mohd, R. and Hisham, B., 2011. Is religiosity an important determinant on Muslim
consumer behaviour in Malaysia?. Journal of Islamic Marketing, 2(1), pp.83-96.
Rahim, R.A., Jalaludin, F.W. and Tajuddin, K., 2011. The importance of corporate social responsibility on
consumer behaviour in Malaysia. Asian academy of management journal, 16(1), pp.119-
139.
Penz, E. and Hogg, M.K., 2011. The role of mixed emotions in consumer behaviour: Investigating
ambivalence in consumers' experiences of approach-avoidance conflicts in online and
offline settings. European Journal of Marketing, 45(1/2), pp.104-132.
Grunert, K.G., 2011. Sustainability in the food sector: A consumer behaviour perspective. International
Journal on Food System Dynamics, 2(3), pp.207-218.
Grunert, K.G., 2011. How changes in consumer behaviour and retailingaffect competence requirements
for food producersand processors. Economía Agraria y Recursos Naturales-Agricultural
and Resource Economics, 6(11), pp.3-22.
Pérez, A., del Mar García de los Salmones, M. and Rodríguez del Bosque, I., 2013. The effect of
corporate associations on consumer behaviour.European Journal of Marketing, 47(1/2),
pp.218-238.
Page, T., Thorsteinsson, G. and Ha, J.G., 2012. Using colours to alter consumer behaviour and product
success. International Journal of Contents,8(1), pp.69-73.
Losasso, C., Cibin, V., Cappa, V., Roccato, A., Vanzo, A., Andrighetto, I. and Ricci, A., 2012. Food safety
and nutrition: improving consumer behaviour.Food Control, 26(2), pp.252-258.
Paço, A., Alves, H. and Shiel, C., 2013. Development of a green consumer behaviour
model. International Journal of Consumer Studies, 37(4), pp.414-421.