Research Project: Consumer Behavior and Discount Offer Impact Analysis

This report presents a research project examining the relationship between discount offers and consumer behavior, specifically focusing on customer satisfaction. The project outlines research objectives, rationale, and research questions, exploring factors influencing customer satisfaction and the impact of discounts. It delves into the scope of the research, providing a literature review that analyzes various theories and models related to discount offers and their influence on customer purchase behavior. The report critically reviews key references, identifying both positive and negative aspects of consumer loyalty and reward schemes. The methodology includes a Gantt chart outlining the project plan and procedures. The research aims to determine the impact of discount offers on customer satisfaction and loyalty, providing recommendations for businesses to improve their marketing strategies. The report analyzes how discount strategies affect customer purchasing decisions and explores the significance of consumer loyalty and reward schemes in the current market. The research utilizes both qualitative and quantitative methods to gather and analyze data, aiming to provide actionable insights for businesses seeking to enhance customer satisfaction and retention. The findings will aid in understanding how businesses can leverage discounts effectively to drive sales and build stronger customer relationships.

University
Consumer behaviour
By
Date
Name
Lecture’s Note

Consumer behaviour
Table of Contents
Task 1....................................................................................................................................................3
1.1 Formulate and record possible research project outline specifications.....................................3
1.2 Identify the factors that contribute to the process of research project selection...............................3
1.3 undertake a critical review of key reference....................................................................................4
1.4 produce a research project specification..........................................................................................5
1.5 provide an appropriate plan and procedures for the agreed research (Gantt chart)........................13
Task 2..................................................................................................................................................14
2.1 match resources efficiently to the research questions or hypothesis........................................14
2.2 undertake the proposed research investigation by the agreed specification and procedures...........15
2.3 record and collate relevant data where appropriate........................................................................18
Task 3..................................................................................................................................................24
3.1 use appropriate research evaluation techniques.......................................................................24
3.3 make recommendation in their research and link to research findings and justify areas for further
consideration.......................................................................................................................................32
References...........................................................................................................................................34
Page 2 of 36

Consumer behaviour
Task 1
1.1 Formulate and record possible research project outline specifications
The research project outline specification includes the significance of the selected research
topic which has two variables. The selected research topic is that does consumer loyalty and
rewards scheme actually works, and this research topic includes two significant variables one
is consumer loyalty and other is reward scheme. With the help of the research topic, the
research can outline the structure of the research project by analysing two variables of the
topic. Thus, according to the research outline, the researcher will investigate does consumer
loyalty and rewards scheme actually works for an organisation. In order to determine proper
answers, the researcher either use qualitative or quantitative research method(Markovits and
Spencer, 2008).
1.2 Identify the factors that contribute to the process of research project selection
There are two significant factors exist in the research topic which contributes to the process
of research project selection such as consumer loyalty and rewards scheme. Both factors
include individual significance for successfully select the research project. The first factor is
consumer loyalty which concludes customer retention strategy. Most of the customer prefer
their selected brands or company for purchasing products or services. In other words, once a
customer impressed and satisfied by the service quality of a particular brand, there is
comparatively low chance to impress that customer by other branded products. Along with
that, the customer has loyalty and trust on their selected organisation, and the customers do
not want experiments by investing money in other companies(Miller, 2005).
Apart from that, the reward scheme is one of the important marketing or promotional strategy
which utilised by most of the companies. Discount on the price of any products or services
can be considered as reward scheme of an organisation. Besides that, with the help of the
Page 3 of 36

Consumer behaviour
reward scheme, an organisation can draw the attention of the potential customers. Moreover,
promotional strategy or reward scheme has lots of resources which available on the web. In
addition, the literature review can be effectively outlined by these factors of a research
topic(Nelson, 2014).
1.3 undertake a critical review of key reference
The research topic includes two significant factors such as consumer loyalty and rewards
scheme which are included with critical significance. According to Brown 2007, the reward
scheme can attract many customers because the customers always prefer free or discounted
products. The price of products is one of the significant issues which determines customer
purchase behaviour. In other words, the discount strategy is one of the most useful and
effective business strategies which can draw the attention of the customers. Along with that,
the reward scheme is one of the important promotional or marketing strategies which utilised
by most of the businesses(Fishman, 2006). Discount on a price of any products or services
can be measured as reward scheme of business. Besides that, with the help of the reward
scheme, an organisation can draw the attention of the potential customers will purchase
products from the company. Moreover, promotional strategy or reward scheme has lots of
resources which available on the internet. In addition, the reward scheme also has some
negative aspects which may affect the business. These aspects also conclude a huge
significance regarding business expansion. Due to reward scheme, some distributors purchase
the discounted products at a wholesale rate. As a result, many customers has no chance to get
the discounted products due to high sale (Engel, 2004).
On the other hand, the consumer loyalty is another significant element of the research project
which also includes both positive and negative aspects(Cornford and Smithson, 2008). The
consumer loyalty is based on product or service quality of an organisation. In addition, if an
organisation continuously offers high-quality products and services to the customers, the
Page 4 of 36

Consumer behaviour
consumer loyalty will be increased effectively. Thus, the customer is expecting high-quality
services from their desired and preferable companies. In other words, the consumer loyalty
can be improved through high-quality services (Jansson-Boyd, 2010). Regarding positive
aspects of the consumer loyalty, the organisation can increase their profitability by
continuous service and product quality. Besides that, another positive part is that the
customer is retained by the organisation for a long period. In other sense, the customer
loyalty is influenced by customer retention. Apart from that, the negative aspects are
excessive work pressure and high-quality manufacture process which includes high
investments. In other words, in order to satisfy the customer and increase consumer loyalty,
an organisation needs to manufacture the products by using good quality raw materials and
maintain the supply chain management. As a result, an organisation can face the financial
crisis due to high production cost, employee salary and distribution costs (Engel, 2004).
Summary
In the critical analysis of the research topic, various types of positive and negative aspects of
the consumer loyalty and reward scheme were successfully identified and justified (Jansson-
Boyd, 2010). In addition, the fundamental factors of the research project include a large
significance which helps the researcher to conduct a fruitful research project. On the other
hand, the researcher needs to focus on the contribution of each factor of the research topic for
the further analysis process. Thus, with the help of this critical analysis, the researcher can
determine the significance of the factors of the research topic. Moreover, an organisation can
increase the customer satisfaction level by implanting reward scheme and as well as most of
the customers would buy their discounted products or services (Oyer, 2005).
1.4 produce a research project specification
Research objectives
Page 5 of 36

Consumer behaviour
The research objectives evaluate the significance of research problems. This research is based
on the impact of discount offers customer satisfaction. On the other hand, the research
objectives are playing an essential role in the different process of the research project. In
other words, the research topic is the impact of discount offers customer satisfaction, and the
important research objectives are discussed below:
 To execute the factors of customer satisfaction.
 To analyse how discount offers to satisfy a consumer.
 To determine the relationship between discount policy and customer satisfaction.
Research rationale
This research is based on customer satisfaction and discount offers which are provided by the
organisation for customer retention. On the other hand, with the help of the research proposal,
an organisation can determine the significance of discounting policies which directly
influence the customer purchase behaviour. In addition, the rationale of this research proposal
is carrying a significance in well-documented findings which include the contribution of
discount offers in the development of an organisation by satisfying a lot of customers. In
addition, to justify the significance of discount offers to satisfy a customer, some business
models and theories will be added in the literature review segment of the research proposal
(Brown, 2005).
Research questions
The research questions are playing an essential role in the research proposal. By collecting
the response or answers to the research questions, the researcher able to determine accurate
and fruitful conclusion of the research proposal. Besides that, with the help of the research
questions, the researcher can formulate well-structured questionnaire which has a serious
Page 6 of 36

Consumer behaviour
contribution in the field survey process. Besides that, the research questions of this research
proposal will be discussed below:
 Which are the factors of customer satisfaction?
 How does discount offer satisfy a consumer?
 How a relationship between discount policy and customer satisfaction connected?
Scope of Research
Most of the companies are implementing the discount strategy in order to increase the
performance of the organisation. On the other hand, there is a huge scope to get success in
this research proposal. In other words, the scope of the research mainly indicates that area
which has been covered by the researcher. The research proposal also covers the
consequences which are influenced by the discount offers provided by the organisation. In
addition, the scope of the researcher helps the researcher to evaluate the findings of the
research. Moreover, how customer satisfaction is influenced by discount offers of an
organisation will also be explained by the researcher(Patten, 2017).
Literature Review
The literature review is based on secondary data which provided by other users. In this
segment of the research, various types of theory and models will be analysed which motivate
the customer to purchase discounted products of an organisation. Besides that, with the help
of the literature review section, the researcher can consider some significant aspects of
customer purchase behaviour(Patten, 2017).
According to Aaker, the discount offers is to some degree term which addresses the desire of
the organisation about their products. Also, a client ceaselessly being esteemed sensitive, so
he/she is hunting down checked products in refunds. In other logic, concluded limited time
offers an assumed organisation can mark them autonomously before their present clients and
Page 7 of 36

Consumer behaviour
left a spot for their potential clients. Holt communicated that, to propel a gleaming new item
in the business part, an expansive part of the association use to perform limited time offers. In
other sense, the customer is respected and experience the new item through discount offers
like a discount (Wereda and Grzybowska, 2013). By and by, numerous organisations apply
the notice techniques to hoist their latest offers to their clients. What's more, the notice media
fuses TV, everyday paper, the web, a radio which are expecting their individual part in this
investigation recommendation. As showed by Hoffler and Keller, the business through media
affect the discount offers which met up at the clients rapidly. Besides that, the business part
organisation and a bit of the pie position are two basic factors of the limited time publicising
techniques of the organisation. Though, these two segments are between related with
customer shared characteristic and need them to finish up their buy decision. Moreover, they
furthermore focus on the necessities of their clients which help them to extend their
advantage. Besides that, as demonstrated by Weitz, the brand photo of the organisation is
expecting an essential part with a particular ultimate objective to lead any limited time offers
by the organisation of the organisation, and it gives each possible family things to their
clients (Quester, Hawkins and Pettigrew, 2010). On the other hand, the clients are entirely
conceded about their item quality and organisation so; they have trust in them, and they don't
endeavour their new item which is starting late impelled in the business area. Furthermore,
the organisation of an organisation uses this opportunity to propel their new item with
appealing limited time offers like markdown to enhance the customer buy conduct(Hernon
and Whitman, 2001).
Customer purchase behaviour
The customers are always looking for more suitable and reliable products at low prices. On
the other hand, an organisation only can satisfy a customer by providing good quality
products and services. Also, with the help of the discount offers, an organisation can draw the
Page 8 of 36

Consumer behaviour
attention of their existing and as well as potential customers. Nowadays, the customers are
selecting products through using the internet. In other words, online shopping includes a huge
platform which directly influences the customer purchase behaviour(Hernon and Whitman,
2001). Along with that, the customer purchase behaviour depends on four significant factors
of marketing mix which are discussed below for better understanding:
Product: the product is one of the critical element which make a relation with customers and
the organisation, besides that, in order to satisfy the customers, an organisation requires to
supply effective and good quality products to their customers. On the other hand, the products
have two dimensions such as tangible and intangible products. The basic difference is very
simple between two types of products such as tangible products is solid and visible. On the
other side, intangible products can be considered these products which only provides service.
The example of tangible products is car, books, retailer and supermarket chain. Apart from
that, intangible products are telecommunication, broadband service. In order to impress the
consumer purchase behaviour, an organisation needs to provide good quality products to their
consumers(Albayrak, Caber and Aksoy, 2010).
Price: the price of products and services includes a significant approach of the company to
the customers. According to Miller 1999, the customers basically price sensitive, and they
always want good quality products in low price. In other words, the management of an
organisation needs to pay more attention to their price estimation process which includes
significant variables of customer’s preference. Besides that, low price strategy is one of the
effective policy which is utilised by many companies. In order to sustain in this competitive
market, an organisation needs to provide good quality products to the customers (Shaw,
Dibeehi and Walden, 2010).
Page 9 of 36

Consumer behaviour
Promotion: the promotional strategy is very effective to aware a large scale of people about
any declaration of the organisation. In other words, with the help of the promotional activities
like an advertisement, an organisation can motivate and influence the customer purchase
behaviour(Adams, 2012). In addition, social media and online marketing make promotion
simpler and cheaper. In simple words, through online marketing, an organisation can directly
approach a consumer. Thus, an organisation can completely aware a customer about the
product specification through promotion. Moreover, the promotional activity can attract the
customers towards the organisation (Shaw, Dibeehi and Walden, 2010).
Place: according to geographical circumstances, the management of an organisation should
carefully select their place of business. In order to select the appropriate place, the market
research technique is playing an essential role. In other words, with the help of the market
research process, an organisation can effectively recognise the current market opportunities
and potential threats. Apart from that, an organisation should select a suitable place which has
increasing demand. Moreover, the places which contain low rival competition can also be
selected by the organisation to provide services(Adams, 2012).
Research Methodology
The research methodology is one of the critical element of the research proposal which
includes various types of research tools and techniques. The researcher cannot conduct a
successful research without implanting the research methodology (Biddle and Emmett, 2005).
Besides that, the research methodology includes some significant parts such as Research
approach, Research Philosophy, Research design, Research onion, Research Methods, Data
collection method, Sampling Method, Data Analysis and Ethical consideration. Each and
every part of the research methodology will be discussed below:
Research approach
Page 10 of 36

Consumer behaviour
The research approach is an essential element of the research methodology which includes
two parts such as inductive and deductive research approach. In the case of qualitative
research method, the inductive research approach is used by the researcher. On the other
hand, the researcher applies the deductive research approach in the segment of quantitative
research method. The deductive research approach is mainly used by many researchers to
conduct a successful research project (Biddle and Emmett, 2005).
Research philosophy
The research philosophy is another important variable of the research methodology which is
divided into three major segments such as exploratory, explanatory and descriptive
philosophy. The researcher uses exploratory philosophy to explore the collected data. Besides
that, with the help of Explanatory research philosophy, the researcher can analyse core
statistical and economic information from the collected data. Moreover, the descriptive
research philosophy is used to describe and interpret the collected primary or secondary data
(Tsang, 2008).
Research design
The research design helps the researcher to provide a good structure to the research project.
In other words, with the help of the research design, the researcher can put right thing to the
perfect place of the research project. Moreover, to present the conclusion to the organisation,
the research design assist the researcher (Stichler, 2016).
Research onion
The research onion is one of the critical element of the research proposal which includes
every segment and process of the research. With the help of the research onion, the
measurement and segmentation of the research project can be clearly analysed (Tsang, 2008).
Page 11 of 36

Consumer behaviour
Research methods
There are two types of research methods are used in order to conduct a successful research
project such as qualitative and quantitative research method. Both types of research methods
have special significance in the research. Besides that, quantitative research method is based
on primary data collection, and the qualitative research method is based on secondary data
collection. Apart from that, qualitative research is also called secondary research technique,
and quantitative research is also notified as the primary research process (Stichler, 2016).
Data collection method
The data collection method includes two parts such as primary data collection method and
secondary data collection. The primary data collection method is oriented by interviews,
questionnaire and survey. The researcher can get accurate and first-hand data with the help of
primary data collection method. Besides that, the secondary data collection includes the
resources of books, journals, articles and magazines. In other words, the secondary data is
already available to collect (Olsen, 2012).
Sampling method
Page 12 of 36