Identifying Consumer Loyalty and Reward Scheme Impacts on Choices

This report investigates the impact of consumer loyalty and reward schemes on customer choices, focusing on Marriot Hotel. It begins with an introduction to the topic, followed by a discussion of factors influencing research topic selection and a comprehensive literature review on customer loyalty programs, consumer behavior, and the impact of loyalty programs. The report outlines the research project specification, including aims, objectives, research questions, and methodology, encompassing research design, approach, philosophy, data collection techniques, sampling, and data analysis. A Gantt chart illustrates the project timeline. The research utilizes primary and secondary data, with data analysis employing a thematic approach. The report concludes with recommendations for enhancing performance and achieving competitive advantage, alongside the appropriate media to disseminate the findings.

To identify the impact of
consumer loyalty and reward
scheme on their choices.

Table of Contents
TASK 1............................................................................................................................................1
1.1 Introduction............................................................................................................................1
1.2 Factors that contribute into the selection of research topic...................................................1
1.3 Literature review....................................................................................................................2
1.4 Research project specification...............................................................................................4
1.5 Gantt chart.............................................................................................................................5
TASK 2............................................................................................................................................6
2.1 Resources that are required to carry out research..................................................................6
2.2 Research investigation...........................................................................................................7
2.3 Collected data from different participants.............................................................................8
TASK 3..........................................................................................................................................10
3.1 Research evaluation technique............................................................................................10
3.2 Data analysis........................................................................................................................11
3.3 Recommendations................................................................................................................15
TASK 4..........................................................................................................................................16
4.1 Appropriate media...............................................................................................................16
REFERENCES..............................................................................................................................17

TASK 1
TITLE: To identify the impact of consumer loyalty and reward scheme on the behaviour of
people: A study on Marriot hotel.
1.1 Introduction
In modern world, business organizations perform their operations and activities in order to
get success at the marketplace. By implementing some strategies, they will be able to gain the
attention from their service users (Evanschitzky and et. al., 2012). Customer is one of the vital
element for which each and every enterprise perform operations in an effective manner. Some
consumer loyalty programs are conducted in market so that company will be able to increase
their profits and revenues. The loyalty among service users is based on some elements such as
quality service, expectations, values and engagement. If an appropriate two way communicate is
get established between end users and firm, then they will be able to sustain competitive
advantage at the marketplace.
The present project is based on Marriot hotel which perform their operations in hospitality
sector. They are implementing consumer loyalty and reward programs so that the behaviour of
service users can be identified. There are various tools and techniques which are used by the
researcher in order to complete the research in an effective manner. Some of the approaches,
philosophies, data collection methods, sampling are used by researcher (Henderson, Beck and
Palmatier, 2011). Along with this, an appropriate analysis has been performed so that impact of
loyalty programs can be evaluated. The current research is significant for both hospitality
industry and customers. Through this, manager of respective firm will be able to know about
needs and demands of the people so that issues can be resolved that are faced by them at the
workplace.
1.2 Factors that contribute into the selection of research topic
Customer loyalty is an outcome of positive behaviour and satisfaction level of people
towards the services that are offered by business organization. There are many factors which
contribute while selecting an appropriate topic for conducting the further research. Some of these
factors are like size, scope, time, resources, skills, knowledge and motivation (Schumann,
Wünderlich and Evanschitzky, 2014). If these will have defined and utilised in an efficient
manner, then the project will be conducted in a successful way. Size can be defined on the basis
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of limit of current study and scope is explained in the terms of sample size that is selected for
research. Some resources are used such as financial, personal, material and so on. If these will be
utilised in more effective manner, then overall project can be conducted on timely basis or given
deadline.
Skills and knowledge are required in order to conduct the research so that analysis and
interpretation can be performed. Along with this, interest of researcher also plays an important
role while selecting the topic. Apart from this, it is also necessary to make a problem statement
so that overall concepts can be analysed regarding to the field of study (Kang, Alejandro and
Groza, 2015). Through this, overall research questions can be resolved and it can be identified
that how consumer’s choice can be influenced. So, in this manner these factors contribute while
selecting the particular research topic.
1.3 Literature review
The researcher has to use secondary sources in order to collect the data from different
books, journals, articles and so on. It is necessary to evaluate the previous literature so that
overall research gap can be identified. Through this, relevant and authenticate information can be
gathered so that overall impact of consumer loyalty can be determined on their behaviour and
choices.
Customers loyalty programs
According to the views of Liu-Thompkins and Tam (2013) Customers loyalty can be
defined in the terms of transaction that a person purchases a product from a brand on continuous
basis. When this get increased then company will be able to attract many people towards their
services. Such type of brand loyalty is created among people on the basis of trust, satisfaction,
ease of use and emotional experience. On the other hand, Bijmolt, Dorotic and Verhoef (2011)
stated that loyalty programs are conducted at the workplace that are helpful in enhancing the
value but through this commitment may not be created by the supplier. This is also related to
some elements such as expectations, service, value and engagement. If expectations of
individuals are get fulfilled and they will be able to get quality services, then their satisfaction
level can be enhanced.
Xie and Chen (2014) says, there are various customer’s loyalty programs that are
conducted at the workplace so that brand image of an enterprise can be improved. Some of the
rewards, discounts, special offers, membership are offered to service users. After these, people
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will prefer to buy products from such organization and in this manner regular consumers can be
converted into loyal one.
Consumer behaviour
As per the viewpoints of Martínez and del Bosque (2013) customer’s behaviour is
changing from time to time as per the changing environment. For this, an enterprise has to
identify the needs and demands by conducting the survey in the form of interview, questionnaire,
observation. This kind of behaviours is depending upon the psychology, sociology and
economics. When these different needs are get changed then hotel industry have to look for the
new strategies so that their expectations can be fulfilled. On the other hand, consumer’s choices
can be evaluated at the time of decision that are made by an individual in order to buy the
products.
Wu and Wang, (2012) confronted that manager has to identify the behaviour of people at
the time of purchasing new products. On the basis of this, industry will be able to identify the
new opportunities so that success can be achieved at the marketplace as compare to other
competitors.
After analysing the post purchase behaviour of people, an enterprise will be able to make
effective decisions and implement all new requirements. Furthermore, they can gain the attention
of people and they can get the services as per their choices.
Impact of loyalty programs on the behaviour of customers
It has been analysed by Hur, Ahn and Kim (2011) that due to loyalty programs the
consumer’s choices are get affected in long term. When hospitality industry offers some rewards
and other discounts to their service users then due to this they will get motivated. Some of the
programs are like point system, membership card and so on. Satisfaction is a vital factor which
can enhance the motivation level of people. As through this, they will be able to increase their
growth which lead them towards high competitiveness. Along with this, customer’s behaviour is
depending upon the perceptions that they have each and every individual regarding to the
company’s products and services.
As per the views of Goh, Heng and Lin (2013) if Marriot hotel conduct loyalty programs
then they will be able to enhance their customer’s knowledge. Along with this, they can retain
their service users in more effective manner so that they can improve their brand image. The
profitability can also be increased. Due to this, they will be able to customer choices are get
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changed which is more beneficial for hotel industry. The firm will be able to fulfil all demands of
the people which can help them in sustaining competitive advantage.
1.4 Research project specification
Aim: To identify the impact of consumer loyalty and reward scheme on the behaviour of
people- A study on Marriot Hotel.
Research objectives: There are some research objectives which are stated below:
 To identify the effectiveness of consumer’s loyalty and reward schemes that are adopted
by Marriot Hotel.
 To analyse the behaviour of people that get changed after implementing the loyalty
programs.
 To examine the relationship between customer’s loyalty and their choices.
 To recommend some ways through which companies will be able to enhance their
performance and achieve competitive advantage.
Research questions: There are some questions for this current research project are as
follows:
Q1. What are the consumer’s loyalty programs and reward scheme?
Q2. How behaviour of customers is get changed?
Q3. What is the link between consumer loyalty scheme and their behaviour?
Q4. What are the various ways through which an enterprise will be able to achieve
competitive advantage?
Research methodology
It is a type of framework which has been used by researcher in order to complete the
research so that their goals can be achieved. There are various tools and techniques that are
helpful for conducting the present research. Here, in this section justification of the approaches
can be identified so that impact of rewards scheme can be examined on the customer’s choices.
Some of these different techniques are as follows:
Research design: This method is related to the overall plan which has been followed by
researcher while conducting the research (Kumar, 2014). There are various design techniques
such as exploratory, descriptive, correlational and so on. Here, in the current project descriptive
design has been used so that in-depth analysis can be carried out.
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Research approach: There are two types of approaches such as inductive and deductive.
The present report is based on inductive, it is based on the observation where different theories
are formulated and in deductive hypothesis is created. By forming the hypothesis, overall
analysis can be tested so that goals can be achieved.
Research philosophy: There are two types of philosophies that can be used by researcher.
First one is positivism which is used in order to test the hypothesis and interpretivism is used in
order to identify the perceptions of people that are made regarding loyalty programs (Hunleth,
2011). The present research is based on interpretivism so that overall information can be
analysed and interpreted.
Data collection technique: The information related to loyalty programs and consumer’s
choices can be collected from both primary and secondary sources (Snyder, 2012). Primary data
has been gathered from conducting the survey such as interview, questionnaire and so on. On the
other hand, secondary data can be collected via various books, journals, articles and internet. So,
in this manner authentic information can be gathered.
Sampling: This is a type of technique which has been used by researcher in order to extract
a small sample from population (Roberts, 2013). There are many techniques which comes under
this sampling like random, stratified, systematic and so on. Here, in the present project random
sampling is used where randomly sample has been picked for further research. Sample size 20
has been selected by researcher so that aim and objectives can be achieved.
Data analysis: This is an important part of research where data has been measured on the
basis of thematic approach. In this type of technique, different themes are formed and on the
basis of that graphical interpretation has been carried out (Pierre, 2012). So, in this manner it can
be evaluated that consumer loyalty programs and rewards scheme can affect their behaviour.
1.5 Gantt chart
An effective plan should be made so that overall activities of research can be completed in
timely manner. On the basis of Gantt chart it can be analysed that how different activities are
accomplished efficiently.
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TASK 2
2.1 Resources that are required to carry out research
Research resources are the kind of sources from which information can be gathered so that
overall outcomes can be achieved. Primary sources are related to the surveys such as
questionnaire, interview, focus group and observation. Through these, the valid and more
authentic data can be collected. On the other hand, secondary sources are related to the books,
journals, articles, research papers and internet. All the resources are utilised in more effective
manner so that questions can be resolved and research objectives can be accomplished. Along
with this, current project is gets completed in an ethical manner by giving credit to the different
authors.
The main aim of researcher is to identify different risks which are associated with the
current research project. When risks are evaluated then it became easy to complete overall study
in more successful way. Through this, it can be examined that how reward programs and
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customer’s loyalty can impact the behaviour of service users. Apart from these, there are some
tertiary resources which are used by researcher in order to organise and store the data.
There is some link between the research questions and resources as by using different
sources overall study can be conducted. It can be assessed that how loyalty programs can affect
the choices of customers in long term. The person has to respect all decisions that are made by
other members so that they will be able to perform well.
2.2 Research investigation
In this section, a survey has been conducted by researcher so that they will be able to
collect the views and ideas from different people. Questionnaire is an appropriate approach in
which both open ended and close ended questions are prepared. Through this, they can identify
the impact of rewards scheme and loyalty programs on the choices of people. Here, 20 sample
size has been selected for current research so that reliable information can be gathered. On the
basis of this survey, research can be conducted on many people at a time so this is most cost
effective and time saving.
Questionnaire
Name:
Age:
Gender:
Q1. How frequently do you visit Marriot hotel?
 Once in a week
 Once in a month
 Twice in a month
 Once in a year
Q2. Do you know about loyalty programs that are conducted at the marketplace?
 Yes
 No
 Can’t say
Q3. What do you think about the rewards programs?
 Waste of time
 Junk mails
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 Offers and special deals
 Others
Q4. What is your opinion about loyalty cards?
 Waste of money
 Never heard about cards
 Sharing of personal information
 Other
Q5. Do you use services of Marriot hotel even if you don’t have card of the same?
 Always
 Sometimes
 Often
 Seldom
 Rarely
Q6. Do you agree that loyalty programs can change the choice of customers?
 Strongly agree
 Agree
 Neutral
 Disagree
 Strongly disagree
Q7. On the basis of you experience, will you recommend the services of Marriot hotel to your
friends and relatives?
 Yes
 No
 Can’t say
Q8. To recommend some ways through which Marriot hotel can retain their loyal consumers?
2.3 Collected data from different participants
Researcher selected an appropriate sample size such as 20 so that overall evaluation of
study can be performed. On the basis of this, it can be identified that loyalty schemes can affect
the behaviour of customers and their choices. There are two variables such as reward programs
and another one is consumer’s preferences. So, relationship between these variables should be
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established so that their overall impact can be determined and research questions can be solved.
Along with this, some effective tools and techniques should be used effectively so that overall
objectives can be attained.
People have different opinions and views regarding to the loyalty programs and reward
schemes. By getting the data from these people, it can be analysed that how these programs are
beneficial or not. There are some challenges that are faced by researcher at the time of
conducting study in an effective way. The data is shown in the given table which is stated below:
How frequently do you visit Marriot hotel? Frequency
Once in a week 8
Once in a month 4
Twice in a month 2
Once in a year 6
Do you know about loyalty programs that are conducted at the
marketplace?
Frequency
Yes 12
No 6
Can’t say 2
What do you think about the rewards programs? Frequency
Waste of time 5
Junk mails 3
Offers and special deals 8
Others 4
What is your opinion about loyalty cards? Frequency
Waste of money 10
Never heard about cards 2
Sharing of personal information 6
Other 2
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Do you use services of Marriot hotel even if you don’t have card
of the same?
Frequency
Always 6
Sometimes 5
Often 2
Seldom 4
Rarely 3
Do you agree that loyalty programs can change the choice of
customers?
Frequency
Strongly agree 8
Agree 5
Neutral 2
Disagree 2
Strongly disagree 3
On the basis of you experience, will you recommend the
services of Marriot hotel to your friends and relatives?
Frequency
Yes 14
No 4
Can’t say 2
TASK 3
3.1 Research evaluation technique
Evaluation is a combination of some methods and approaches that are used by researcher
in order to analyse the actions. On the basis of this, they will be able to judge the practices in
order to improve the effectiveness in more appropriate manner. In current study, evaluation is
used in order to remove all challenges that are faced by researcher while implementing all the
actions. There are two types of evaluation approaches such as summative and formative. In
summative kind of technique, the assessment has been performed so that overall effective
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