Research Project: Customer Loyalty in Retail - Marks and Spencer Study

This research project delves into the critical importance of customer loyalty within the retail sector, using Marks and Spencer (M&S) as a focal case study. The project commences with an introduction outlining the research aim, objectives, and pertinent research questions, setting the stage for a comprehensive investigation. It then explores the factors influencing research project selection, emphasizing the significance of customer loyalty and satisfaction for business success. A critical review of key references provides a foundation of existing research, highlighting the value of loyal customers and the relationship between satisfaction and loyalty. The methodology employs positivism and descriptive research, utilizing both primary and secondary data collection methods. Findings from customer surveys are presented, revealing insights into customer satisfaction levels, factors affecting loyalty, and reasons for dissatisfaction, such as pricing, product quality, and employee skills. The project concludes with recommendations for M&S, primarily focusing on pricing strategies and employee training to enhance customer satisfaction and foster loyalty.

Research Project

Table of Contents
TASK 1............................................................................................................................................1
1.1 Formulation and record possible research project outline specifications.............................1
1.2 Factors that contribute to the process of research project selection......................................2
1.3 Critical review of key references..........................................................................................2
1.4 Research project specification...............................................................................................4
1.5 Appropriate plan and procedures for the agreed research specification...............................4
TASK 2............................................................................................................................................6
2.1 Match resources efficiently to the research question or hypothesis......................................6
2.2 Proposed research investigation in accordance with the agreed specification and
procedures...................................................................................................................................7
2.3 Record and collate relevant data where appropriate.............................................................7
TASK 3............................................................................................................................................8
3.1 Appropriate research evaluation techniques.........................................................................8
3.2 Interpretation and analyse of results in terms of the original research specification............9
3.3 Recommendations and justify areas for further consideration............................................12
TASK 4..........................................................................................................................................13
4.1 Agreed format and appropriate media to present the outcomes of the research to an
audience.....................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

TASK 1
TITLE
“To identify the importance of customer loyalty for retail business organization: A case
study on Marks and Spencer”
1.1 Formulation and record possible research project outline specifications
There are many organizations that provide their customers with similar products and
services. In this context, firms make sure of different set of strategies and techniques with the
help of which they will be able to attract customers and compete with others. In order to attract
customers, it is essential for the organization to understand their customers needs and
requirements (Siddiqi, 2011). Accordingly, services and products should be delivered. When the
purchases are raised, then it can be stated that the service users is getting loyal. There are certain
set of expectations that a person has when they purchase a product. When all these expectations
are satisfied, then customer will frequently raise their purchases and they will ultimately become
loyal. There are number of factors that a service user determines. It includes price, quality,
distribution, etc. Among all these factors price can be determined as an essential factor that
changes buying behaviour of customers. When the price is low, then customer will purchase
more. On the other hand, if the price of the product is high, then the sales will fall. Present report
is about Mark and Spencer which is one of the British multinational retailer which is
headquartered in UK. They provide products for luxury food products, clothing and home
products. Present study will focus over loyalty of customers towards retail business organization.
Research Aim:
Every research study has a particular aim and that aids the researcher to carry out the
entire research work in effective manner. Therefore, research aim for the present study is “to
identify the importance of customer loyalty for retail business organization: A case study on
Marks and Spencer”.
Objectives:
 To identify the importance of customer loyalty
 To ascertain the relationship between customer satisfaction and customer loyalty
 To determine the impact of customer loyalty on business performance
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 To recommend several strategies through which customer loyalty aspects can be
increased
Research Questions:
 What is the importance of customer loyalty?
 What is the relationship between customer satisfaction and customer loyalty?
 What is the impact of customer loyalty on business performance?
1.2 Factors that contribute to the process of research project selection
At the time of selecting the research title, researcher has gone through with several topics
and subject matter and after ascertaining the feasibility of the research topic, this particular
subject matter has been selected (Mohsan, Nawaz and Aslam, 2011). Customers are the major
stakeholders of an organization; thus for a business entity, customer loyalty and satisfaction
aspects matters a lot. Hence, in this respect researcher has selected the topic wherein focus will
be laid on importance of customer loyalty to the business entity. Along with that, researcher is
also highlighting the factors that drives the customers to show loyalty towards a brand and also
to depict its importance for business success and profitability aspects. Moreover, in the study
discussion has also been made on customer satisfaction and related terminologies. The specific
subject matter has been selected because researcher had various opportunities of data collection.
Researcher has the availability of suitable data sources; hence selection has been made
considering the same.
1.3 Critical review of key references
This part or research is an important section as it enables to identify the different set of
researchers that has been done by diverse people on similar and related topics. It will be helpful
in understanding the concept the research gap and it will also help to develop knowledge and
understanding.
As per Ghosh, Tripathi and Kumar, (2010) for an organization loyal customers are highly
valuable as they contribute effectively towards the growth and development of the firm.
However, it is important that the relationship with service users are maintained so that there is no
type of issues and customers do not shift on to other companies which deliver similar products
and services. There are different type of importance that firm has because of loyal customers.
Below given are few of the importance:
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Loyal service users stay longer: As per the perception of people, they prefer to purchase
products and services which are familiar and goods on which they can trust on (Evanschitzky,
Ramaseshan and Backhaus, 2012). They will stay on that same service or product until that do
not find or given with any other type of reasons. However, they will leave the services or
organization when they break the trust.
Frequent purchases: Customers who are loyal towards the products, will have frequent
purchases and they are also helpful to make recommendation for that. Moreover, they also
provide valuable suggestion through which improvement can be made.
Loyal customers are like brand ambassadors: Brand ambassadors are people who present
the products or services that an organization delivers. Loyal customers can be compared with
them as they share their experience with others and also recommendation so that other use them.
According to Kassim and Asiah Abdullah, (2010) customers satisfaction and loyalty has
close relation with each other. When customers are loyal only then they will be able to develop
their made loyal. Satisfaction of customers totally depends upon the type of services and the
quality that is provided to them. In this context, it is important that frequent research and survey
should be conducted so that they will be able to identify the needs and requirement of service
users. Accordingly, changes should be implemented so that customers can be satisfied
(Mandhachitara and Poolthong, 2011). Moreover, when customers are satisfied, then it becomes
easy for the firm to change the perception of service users positively and this enables to make
them loyal. Further, it also includes after sales services in which organization need to make sure
that they clarify all the doubts that they have can be clarified. Yuen and Chan, (2010) stated that
there are certain expectations that service users have when a product or service being used. When
these are not satisfied, then it becomes difficult to make them satisfied or loyal. On the other
hand, if the expectation are satisfied and when the services or products delivers them more than
what they have expected, then it makes them loyal.
When customers get loyal, then the sales raises and it is helpful for the firm to make
development on the business operations (Kumar, Mani and Vanjikovan, 2010). However, it is
important that the firm have employees who will be able to support the organization in order to
deliver high quality services. Workers are the face of company as they have direct interaction
with customers (Liu, Guo and Lee, 2011). They are the one who deliver the services and
products to customers.
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1.4 Research project specification
In the current research, positivism will be used by the researcher and it helps in fulfilling
the objectives and aim. Further, descriptive research will be used and this will be helpful in
understanding the relationship between loyalty and customers satisfaction. In addition to this,
there will no hypothesis used and inductive approach will be carried out. Moreover, investigator
will make use of thematic. Further, secondary and primary research will be taken in order to
gather information.
1.5 Appropriate plan and procedures for the agreed research specification
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TASK 2
2.1 Match resources efficiently to the research question or hypothesis
Present research will enable to identify the reasons due to which customers become loyal
towards the products and services that are delivered by the firm. Further, it will also help to
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identify different ways with the help of which customers can be made loyal. In this context,
management of the organization can set of strategies that can help them to attract more and more
customers. Ultimately, firm will get benefited and they will be achieve their personal goals and
objectives. Main focus will be over improving the quality or products and to make changes in the
pricing strategies as this is one of the effective strategy which enables to make changes in the
buying behaviour and perception of customers. With this respect, below given are the objectives
that will help to cover all the area of customer loyalty:
Objectives:
 To identify the importance of customer loyalty
 To ascertain the relationship between customer satisfaction and customer loyalty
 To determine the impact of customer loyalty on business performance To recommend several strategies through which customer loyalty aspects can be
increased
Research Questions:
 What is the importance of customer loyalty?
 What is the relationship between customer satisfaction and customer loyalty?
 What is the impact of customer loyalty on business performance?
Questionnaire
1. Name: _________
2. Age: ________
3. Gender: _______
4. Are you loyal towards the products and services that are provided by Mark and Spencer?
 Yes
 No
5. What are the factors due to which you are not loyal?
 Price of the product
 Quality of product
 High quality services of competitors
 No after sale services
6. Are you satisfied with the services that are provided at M&S?
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 Yes
 No
7. What is the reason for the dissatisfaction?
 Unskilled employees
 Products do not reach out your expectations
 Price issues
 Quality issues
8. Provide suggestions to make customers more loyal towards the products and services of M&S.
____________________________________________________________________.
2.2 Proposed research investigation in accordance with the agreed specification and procedures
This part is helpful to identify appropriate technique in relation with research that will
help to conduct the research in an effective manner. With this respect, researcher will make use
of inductive research. Proper specification and procedure is followed to make sure the
effectiveness. Primary and secondary data will be collected. More specifically, questionnaire will
be made and that will be filled up by customers who make use of the services of Mark &
Spencer. This way the data can be used to come up with a suitable outcome for the research aim
and objectives.
2.3 Record and collate relevant data where appropriate
So as to gather data, researcher will use secondary and primary data. In this context, there
will be able 20 customers selected who make use of the services of M&S. The selected
respondents will be helpful to know their perception and reasons due to which they are not loyal
towards the products and services. Moreover, employees are also important in order to make sure
that services are delivered to them effectively. 20 customers have been selected who will fill the
questions and this way perception can be know towards the services provided by M&S.
TASK 3
3.1 Appropriate research evaluation techniques
Research Methodology: This is a part of research which enables to present the research
in an systematic manner. The way through which data needs to be collected and presented is
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possible with the help of tools and techniques that are involved in research methodology and
they are as follows:
Research approach: This can be determined as the path or blueprint that is used by
researcher to present the research (Gale, Heath and Redwood, 2013). These are of two type
which are deductive and inductive. Among these two investigator will make use of inductive
approach. As per this approach, information or data will be collected from the customers of Mark
and Spencer. It enables to have direct interaction with customers and to know their perception.
Research philosophy: These are the assumptions that are made by researcher. These are
of four type which are positivism, realism, interpretivism and pragmatic (Riedl, Davis and
Hevner, 2014). Among all these philosophies, investigator will make use of interpretivism. This
will be helpful to attain information from customers. In addition to this, it focuses over the past
researches that has been conducted by different researchers. This way the areas that has been
covered by different researcher will be evaluated and appropriate outcome will be given.
Data collection: In order to collect data, there are generally two ways which are
secondary and primary. Among these two, researcher will make use of both primary and
secondary information. In order to collect secondary data, investigator will make use of articles,
books, journals, internet, etc. (Gustafsson, Herrmann and Huber, 2013). to get relevant
information. Further, to collect primary data, investigator has made questionnaire and this was
filled up by 20 customers who make use of the services or products that are delivered by Mark
and Spencer.
Sampling: This can be determined as a process which enables to divide the total
population and to come up with appropriate outcome for data collected. In this investigator do
not need to involve the whole population but select the few which will help to make proper
evaluation of data (Clarke and Fujimura, 2014). These are of two type which are non-
probabilistic and probabilistic. Among these two sampling method, researcher will make use of
non-probabilistic. Further, the sample size selected id 20 customers.
Data analysis: This can be determined as one of the most effective area in which
information is classified into presentable form. These are of two type which are qualitative and
quantitative analysis (Lang, Clarke and Davey, 2013). In the current research, investigator will
make use of qualitative method. In this context, thematics will be applied in which evaluation of
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each of the questions will be made. In this context, pie chart and graphs will be used to present
the data in an effective manner.
3.2 Interpretation and analyse of results in terms of the original research specification
Theme 1: Loyalty towards the products and services that are provided by Mark and
Spencer
Are you loyal towards the products and services that are provided by Mark
and Spencer?
Frequency
Yes 12
No 8
Description: As per the data collected from 20 customers, it can be stated that there are
about 12 customers who are not loyal towards the services and products that are provided to
them. On the other hand, there are 8 customers who are loyal towards the services that are
provided to them by Mark and Spencer. It is important that the organization understand the
issues that are faced by services and accordingly steps should be taken so that they will be able to
overcome problems that are faced by customers.
Theme 2: Satisfaction with the services that are provided at M&S
9
Yes No
0
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12
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12
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Frequency

Are you satisfied with the services that are provided at M&S Frequency
Yes 13
No 7
Description: In accordance with finding, it can be determined that customers are not
satisfied by the services which are provided to them. More specifically, there are 13 of the
service users who are not satisfied. Further, there 7 of the customers who think that the services
provided by M&S is satisfactory. In this context, it can also be stated that there are different set
of issues that are faced by customers and this can be due to any reason. It is important that all the
issues that are faced by service users are identified and proper strategies are implemented with
the help of which they can be made loyal towards the organization.
Theme 3: Factors due to which you are not loyal
What are the factors due to which you are not loyal? Frequency
Price of the product 7
10
Yes No
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12
14 13
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Frequency