Research Report: Consumer Loyalty and Reward Schemes in B&M Retail

This research report investigates consumer behavior, loyalty, and reward schemes within B&M Retail, a leading UK retail value chain. The report explores the importance of these schemes in influencing buyer behavior, customer retention, and overall sales. It includes a literature review examining the components of effective loyalty programs, their impact on consumer decisions, and the effectiveness of different reward strategies. The methodology section outlines the research philosophy, design, approach, sampling techniques, data collection methods (primary and secondary), and data analysis techniques used to evaluate the effectiveness of B&M's existing schemes and recommend improvements. The study employs a deductive approach, incorporating both qualitative and quantitative data analysis, and considers ethical considerations to ensure the validity and confidentiality of the research. The report aims to provide actionable insights for B&M to enhance customer loyalty and improve its marketing strategies.

Research project

TABLE OF CONTENTS
1. Introduction/ Background of research area........................................................................3
2. Literature review 1000.......................................................................................................4
3. Methodology500.................................................................................................................6
4. Time line of research activities...........................................................................................8
REFERENCES..............................................................................................................................10

Introduction/ Background of research area.
Background of the study
Consumer behaviour is considered as all psychological, social and physical behaviours of
the company's potential customers as they became aware of evaluation, purchasing, consumption
and telling others about the related products and service. Marketing is accomplished by the
organization with an aim to meet and satisfy the target consumer needs and wants buyers
behaviour refers to the peoples or organization conduct the activities and together with the
influence of different impacts on them towards making a decision on purchase of products and
service of a company in retail sector. Present reports is based on the analysis of consumers
behaviour towards products of B&M which is European retail value, formed in 1978 and is now
one of the leading variety retail in UK, employing over 28000 staff. Research aims to explore
the importance reward and customer loyalty schemes of B&M towards buying the customer's
loyalty. There are characteristics of consumer have been identified like cultural, social, personal
and psychological that affects the perception.. Along with this, Scholar will also identify the
problems which is faced by the organization in influencing the buyer behaviour. B&M also
needs to analyse the effectiveness of the schemes which they have development to increase the
sale of products and services in market.
Research aims and objectives.
Aim- To explore the importance of consumer loyalty and rewards schemes towards buying the
consumer loyalty- A study of B&M retail
Objectives
 To analyse the essential components of rewards schemes and loyalty scheme.
 To identify the impact of consumer loyalty schemes on buyer's behaviour.
 To evaluate the effectiveness of reward scheme towards buying the consumer loyalty.
 To recommend strategies to B&M for improving reward scheme to enhance the customer
loyalty.
Consumer loyalty and consumer loyalty and rewards schemes towards buying the consumer
loyalty rewards schemes towards buying the consumer loyalty
Literature review
To analyse the essential components of rewards schemes and loyalty scheme

As per the Ramanathan, Subramanian and Parrott, (2017), the customer loyalty schemes are
being used by all types of business in order to motivate repeat customers by proving some type
of rewards system. A customer loyalty program is a structured marketing effort that is being
made. The primary goals of a retail's customer loyalty program is customer retention.
According to Zakaria and Osman, (2014), to a retailer the customer referrals are the
biggest benefit for a customer loyalty programs. The another advantage of a well- implemented
customer loyalty program is the customer's satisfaction. The customer will feel acknowledged as
long as the rewards are offered to them are of interest and of value to the customers. This will
also help the companies to earn more profit as through these loyalty programs and rewards the
customers will be retained and due to which the companies will able to increase its sale. Many
companies are making use of a simple point system. This comes in the category of mots loyalty
program methodology. In some type of rewards the points that are being earned by the frequent
customers, The more predictable retails sales numbers will become due to larger the customer
loyalty programs. For an instance if the discounts are being given to the customers then they will
more satisfied and thy will visit the store the next time as well.
As stated by Blut and Brock, (2014), the coupons, free gift's enc need to be given to the
customers who are frequent visitors of the store. This will attract more number of customers and
they will be feel valued due to theses rewards schemes that is being given to them. On special
occasion the special offer on the product and services should be there so that more number of
customers will prefer to visit the retail store. In a way these rewards schemes that is being given
by the companies will be useful for them in order to gain competitive advantages and also to
grab more number of customers. Through the rewards schemes the companies can retain the
customs and they will stay loyal to the company. In order to retain the customers the new
experimental rewards need to be introduced and the customhouse who have not spent loyalty
points can be send re reminder by the companies. On the anniversary of their loyalty membership
registration they can point bonuses. All these ways can be adopted in order to rain the customer
to their store.
To identify the impact of consumer loyalty schemes on buyer's behaviour
According to Bowden, Dagger and Elliott, (2015), customer loyalty are benefits which
are provided by the marketers and organization on the purchase of some specific retail products

and services. These some important loyalty schemes involves the discount offers, coupons and
extra benefits which are given to customers on the purchase on the shopping of more than a
specific amount. As per the review of Bilgihan, (2016), this customer's loyalty schemes are
considered as very effective for the organization as it helps them in achievement of high
profitability in the market and also helps in retaining their potential customers. In present B&M
retail has also used these types of loyalty schemes in order to influence the customers to purchase
their products and services in the market. Through these marketing techniques, company will
able enhance the promotion of their products and influence the perception. Company also use the
social media channels to increase its marketing and promotion in the market. On contrary to it
Wilson and et.al., (2016) has stated that it will also provide a negative impact on organization as
it providing loyalty bonus will reduce the profits of organization and increases its expenditure.
As compared to rise in cost, the company will earn more profitability which is effective. Thus,
implementation of loyalty schemes will provide positive impact on consumer behaviour.
To evaluate the effectiveness of reward scheme towards buying the consumer loyalty
As per the review of Evanschitzky and et.al., (2012). Customer behaviour is continuously
changing factor that fluctuates very fast as they will prefer to purchase those products in which
they will get more benefits and expected quality. Rewards schemes which are provided by
companies in retail business like B&M retail creates a positive image of brand among the end
users. It is very important for them to conduct survey that how the customer's perception will be
influenced by the competitors in market so that effective strategies will be developed and
implemented for changing there perception and making them loyal towards the products and
service. Company also needs to analyse the problems which are faced by consumer while buying
a product and needs to solve their problem so that customers will be retained. On contrary to this
Dorotic, Bijmolt and Verhoef, (2012) has stated that consumer behaviour will not be affected by
reward schemes as they will purchase the products that which satisfy their expectation and
available at competitive prices. Therefore, company needs to focus on its products quality in
order to gain customer loyalty. Thus, from the critical analysis, it can be said that company needs
to reward schemes will effective for organization if they provide quality products at competitive
prices.

Methodology
Research methodology
 Research philosophy: Important part of research that is based on the belief and values of
the scholar. It is considered as useful in order to carry out research in effective manner.
Mainly there are two methods of research philosophies like positivism and interpretivism
(Taylor, Bogdan and DeVault, 2015). Present study is based on exploring importance of
consumer loyalty and rewards schemes towards buying the consumer loyalty of B&M
retail. However, interpretivism philosophy is undertaken by the scholar as it is useful and
helps in analysing the quantitative information which help in completing the overall
investigation in appropriate direction.
 Research design: It is also an important quantitative method which is considered as blue
print of the overall research study that helps the scholar in developing a base for the
completion of entire research effectively and efficiently (Lewis, 2015). There are various
methods of research design like exploratory, descriptive, explanatory etc. Scholar has
carried the out research to explore the importance of consumers loyalty schemes and
reward schemes of B&M retail towards buying the loyalty of its potential consumers. In
this, researcher has used descriptive method of research design which helps the scholar in
determining the characteristic of population and sample size of consumers with
diversified culture which is selected by the scholar.
 Research Approach: It is also considered as approach that is used for investigation and
determination of effectiveness of the research process (Research methodologies, 2018).
In this, method of research, scholar will collect and analyse information through
implementation and use of various important theories along with principles and
specificness of data which is collected (Flick, 2015). This technique consists of mainly
two methods like Inductive and deductive approach. In this, researcher needs to develop a
relationship among the hypothesis and topic of research. In present scenario, scholar will
undertake deductive approach as in this researcher needs to analyse the information and
drawn hypothetical and relevant results on the importance of consumer loyalty schemes
and rewards schemes towards buying the customers' loyalty among the potential buyers
of B&M retail.

 Sampling: It is also common process in which a sample size is selected from a selected
population for a given purpose of gaining specific information related to the particular
topic. Various methods of sampling are their like random, systematic, cluster and
stratified sampling methods etc (Silverman, 2016). In present task, simple random
sampling will be used by scholar to get complete information as it is very simple and
easily to interpret the results. Here the questions will ask from the 50 customers of the
B&M retail. The reason behind selection of customers is that they provide specific
information about the related to the selected information related to the selected topic that
is exploring the significance of customer loyalty consumer loyalty and rewards schemes
towards buying the consumer loyalty.
 Data collection: It is also effective method that is used for the collection of information
in order to complete the research effectively. It mainly consists of two methods like
primary and secondary data. Primary method of data collection is based on the collection
of the data by using the questionnaire methods in which the relevant questions are asked
from the respondents to take analyse the actual results (Smith, 2015). Secondary method
of data collection is based on the analysis of various important information from the
sources like books, journals and articles which are already written by the scholars and
authors. In order to complete the research on exploring the importance of consumer
loyalty and rewards schemes towards buying the consumer loyalty, scholar will use both
primary and secondary methods of data collection.
 Data analysis: It is also effective method that involves two different methods of
analysing the data which is collected like qualitative and quantitative information that can
be used in the present study in the respect to get the valid outcome (Brinkmann, 2014).
These important techniques will assist the scholar in the covering the raw material in to a
valid and useful information. In present report, researcher will use the qualitative
techniques for gathering the data, under which different themes on the basis of results
will prepare on the collected information. Different charts and table will be prepared
which helps the scholar in reflecting the results in the effective manner.
 Ethical consideration: It is considered as important for researcher to focus on the ethics
while undertaking research and effective research (Kandampully, Zhang and Bilgihan,

2015). Therefore, all the information which is collected from the secondary sources in
respect to make the present investigation valid. Further, all the information provided by
the respondents is kept confidential and they will not force for taking the participants.
From the above collected information it is analysed the consumer behaviour is
continuously changing with the changes in time and it supports the B&M in positive manner. It
is important firm to adopt the new products and services so that it can improve its customers
loyalty. With the customer's loyalty and rewards schemes, it made easy for the organization that
necessity and taste of purchase should be known and measures needs to be taken in order to meet
those requirements.
Time line of research activities
Task Name Duration Start Finish Predecessors Cost
Introduction £1,00,00
Project Charter
Establishment 3 days 09/01/18 12/01/18 £10,00
Resource allocation 6 days 12/01/18 18/01/18 3 £600,0
Preparation of aim
and objectives 1 day 02/03/18 05/03/18 4 £200,0
Planning £2,000,
Project Scope 3 days 06/03/18 09/03/18 6 £400,0
Collection of data 14 days 15/03/18 29/03/18 4,5 £700,0
Planning of Budget 3 days 26/04/18 29/04/18 7 £500,0
Carrying out 20/01/18 20 January £2,000

2018
Assurance of Quality 4 days 27/02/18 02/03/18 8,9 £1,300,
Observation and
controlling £25,20
managing as well as
monitoring of
project
6 days 24/04/18 30/04/18 10 £1,000,0
Quality Check 5 days 15/04/18 20/04/18 10 £50,00
Closing £13,49
Evaluation of project 3 days 23/04/18 26/04/18 12 £1,500,

REFERENCES
Books and Journals
Bilgihan, A., 2016. Gen Y customer loyalty in online shopping: An integrated model of trust,
user experience and branding. Computers in Human Behavior. 61. pp.103-113.
Blut, M. and Brock, C., 2014. The impact of service characteristics on the switching costs–
customer loyalty link. Journal of Retailing. 90(2). pp.275-290.
Bowden, J., Dagger, T. and Elliott, G., 2015. Earning Customer Loyalty: The Role of
Satisfaction, Trust, Delight, Commitment and Involvement. In Marketing in Transition:
Scarcity, Globalism, & Sustainability (pp. 362-362). Springer, Cham.
Brinkmann, S., 2014. Interview. In Encyclopedia of critical psychology (pp. 1008-1010).
Springer New York.
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.
Evanschitzky and et.al., 2012. Consequences of customer loyalty to the loyalty program and to
the company. Journal of the Academy of Marketing Science. 40(5). pp.625-638.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches.
Health promotion practice. 16(4). pp.473-475.
Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network
operations and marketing to enhance customer satisfaction. International Journal of
Operations & Production Management. 37(1). pp.105-123.
Silverman, D. ed., 2016. Qualitative research. Sage.
Smith, J.A. ed., 2015. Qualitative psychology: A practical guide to research methods. Sage.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.

Wilson and et.al., 2016. Services marketing: Integrating customer focus across the firm.
McGraw Hill.
Zakaria, I. and Osman, M.A.F., 2014. The relationship between loyalty program, customer
satisfaction and customer loyalty in retail industry: A case study. Procedia-Social and
Behavioral Sciences. 129. pp.23-30.
Online
Research methodologies, 2018. [Online]. Available
through:<https://www.macmillanihe.com/studentstudyskills/page/choosing-appropriate-
research-methodologies/>