An Investigation into Customer Satisfaction and Brand Loyalty: Boots

This report presents an investigation into customer satisfaction and brand loyalty, using Boots as a case study. It explores the significance of customer satisfaction and its impact on organizational performance. The research employs a positivism philosophy, a deductive research approach, and a descriptive research design, utilizing quantitative data collected through questionnaires from a sample of 30 customers. The report includes a literature review, detailed research methodologies, data analysis (both primary and secondary), and conclusions with recommendations for Boots to improve customer satisfaction and brand loyalty. The study aims to determine the relationship between consumer loyalty and customer satisfaction, contributing to the efficiency and performance of customer-oriented businesses in a competitive market. The research also addresses key questions regarding the impact of customer satisfaction on organizational performance, the relationship between brand loyalty and customer satisfaction, and strategies for Boots to gain a competitive advantage.

An investigation into Customer
Satisfaction and Brand Loyalty
A case study of Boot

Abstract
In order to sustain in the competitive environment, it is very important for the
organisation to focus on increasing the satisfaction of the customers. The dissertation highlights
the impact of customer satisfaction and brand loyalty by investigating Boots limited. The major
aim of the dissertation is to examine the relationship between consumer loyalty and customer
satisfaction in Boots which will contribute to technical efficiency and performance of customer
oriented businesses. In the following dissertation, the researcher has use positivism philosophy as
it is well structured and effective with the quantitative approach of research. Further, deductive
research approach has been used by researcher in order to investigate the impact of customer
satisfaction and brand loyalty on Boots In order to increase the effectiveness of the research,
descriptive research design has been used for the quantitative dissertation. The quantitative
research strategy will be used in the following dissertation. In this data has been systematically
collected by questionnaire format which will be provided to the customers in order to assess the
information about brand loyalty of Boots and customer satisfaction In the quantitative
dissertation the data will be acquired with the help of questionnaire techniques by providing
questionnaires to the customers of Boots stores. From secondary sources, the data will be
gathered from various books, journals, articles and research papers of senior authors and
researchers. From the vast questionnaire, the researcher has selected a sample of 30 by using
simple random sampling method.

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Title...................................................................................................................................1
1.2 Introduction......................................................................................................................1
1.3 Background.......................................................................................................................1
1.4 Rational.............................................................................................................................2
1.5 Research aims and objectives...........................................................................................2
1.6 Research questions...........................................................................................................2
1.7 Structure of Dissertation...................................................................................................3
1.8 Framework and Analysis..................................................................................................3
1.9 Significance of research...................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
2.1 Introduction......................................................................................................................6
2.2 Customer Satisfaction.......................................................................................................6
2.3 Brand Loyalty...................................................................................................................1
2.4 Impact of customer satisfaction and brand loyalty on growth of the organisations.........2
2.5 Conclusion........................................................................................................................3
CHAPTER 3: RESEARCH METHODOLOGIES..........................................................................4
3.1 Introduction......................................................................................................................4
3.2 Research Philosophy........................................................................................................4
3.3 Research Approach...........................................................................................................4
3.4 Research Design...............................................................................................................5
3.5 Research Strategy.............................................................................................................5
3.6 Data Collection Methods..................................................................................................6
3.7 Sampling...........................................................................................................................6
3.8 Data Analysis....................................................................................................................6
3.9 Ethical Consideration.......................................................................................................7
3.10 Research Limitations......................................................................................................7
CHAPTER 4: DATA ANALYSIS..................................................................................................8
4.1 Introduction......................................................................................................................8

4.2 Analysis of primary data..................................................................................................8
4.3 Analysis of Secondary Data...........................................................................................16
CHAPTER 5: CONCLUSION & RECOMMENDATIONS.........................................................18
5.1 Conclusion......................................................................................................................18
5.2 Recommendations..........................................................................................................19
REFERENCES..............................................................................................................................21
Appendix I.....................................................................................................................................24

CHAPTER 1: INTRODUCTION
1.1 Title
“To investigate into customer satisfaction and brand loyalty. A case study of Boots”.
1.2 Introduction
In order to sustain in the competitive environment, customer satisfaction and brand
loyalty plays essential and vital role for the organisation (Blut and et.al., 2015). Customer
satisfaction and loyalty can be increased by delivering them effective quality of products at
appropriate prices. In accordance with this context, the following dissertation will aid in
investigating the degree of customer satisfaction and brand loyalty of Boots, United Kingdom.
The organisation is specialises in health and beauty products and also provides optician and
hearing care services. There are more than 2500 stores of Boots which are operating across
United Kingdom. Due to increase in substitutions, the organisation is facing stiff competition in
the market environment of United Kingdom. In this context, the dissertation will shed light on
the schemes and offers provided by the organisation in order to increase customer base and
satisfaction. For attaining research objective, the current investigation will follow a systematic
process. This process will comprise literature review, research methodology and data analysis
chapters. All these segments of investigation process will help in getting appropriate solution of
the research problem.
1.3 Background
In present era, there is stiff competition between companies within a very high competent
environment in an attempt to offer quality services to the expectation of customers. Various
operational process of the organisations such as service quality, employee motivation, budgeting
of products and customer satisfactions are being researched and investigated by the researchers
(Bansal and Taylor, 2015). Every good service provider has to provide high quality services to
customers in order for customers to stay satisfied and remain loyal to the company. It is very
important for the organisation to concentrates on the quality of services in order to attain
maximum customer satisfaction. Furthermore, customer satisfaction and service loyalty have
been found to have a relation with customer loyalty through repurchase intentions. Organisations
and management must developed unique and innovative strategies in order to attract customers.
This can be done either by effective promotional strategies or by improving the quality of
products and services. Thus, in order to sustain in the stiff competition and intense business
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environment, the management of organisations must focus on total quality improvement in order
to increase the customer satisfaction and brand reputation. This will aid the organisation to drive
on the path of growth and development and also assist in increasing the profitability and
productivity of the organisations.
1.4 Rational
A definitive vital target of customer service is to guarantee that customers have a decent
involvement with the business and feel treated professionally. Customer satisfaction and brand
loyalty plays vital role that aid in increasing productivity of the organisation (Orel and Kara,
2014). The research is very essential to acquire the importance of customer satisfaction and
brand loyalty that aid in accomplishing organisational goals and targets. Boots is one of the
renowned organisation that specialises in health and beauty products. Company is facing stiff
competition in the market economy of United Kingdom. Due to increase in substitutions and
organisations that deals with identical products are emerging rapidly and increasing the
competition in the market economy. The present study will examine the role of customer
satisfaction and brand loyalty by analysing the case study of Boots. This research project
investigates the level of customer satisfaction and brand loyalty at boots and attempts to
determine if customers’ loyalty is true to the brand and therefore indicative of customer
satisfaction or only indicative of good marketing schemes.
1.5 Research aims and objectives
Aim:
“To examine the relationship between consumer loyalty and customer satisfaction in
Boots which will contribute to technical efficiency and performance of customer oriented
businesses”
Objectives:
 To critically assess whether indeed a positive correlation or relationship exists between
customers becoming loyal when they are satisfied with the level of service or not.
 To evaluate the level of loyalty in relation to their satisfaction level due to the increased
competition for a greater share of the market, customers have become central to several
business activities.
1.6 Research questions
1. How customer satisfaction impacts on the organisational performance?
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2. How brand loyalty is related with the customer satisfaction?
3. How Boots can improve customer satisfaction and brand loyalty in order gain
competitive advantage?
1.7 Structure of Dissertation
In order to present the research project in effective and efficient manner, the structure of
dissertation must be precise and appropriate. For the following research project, the structure of
dissertation is as follows: Chapter 1 – Introduction: This chapter consists of the brief detail which will be covered
in the dissertation. The topic, title, aims, objectives and methodologies used in the
dissertation is described in the introduction efficiently (Punch and Oancea, 2014Buckler
and Walliman, 2016). Chapter 2 - Literature review: This is the very important and second chapter in the
dissertation. In this, researchers compare and contrast the articles and research paper
made by senior researchers in order to comprehend the title and objectives of research
effectively. Chapter 3 - Research Methodology: This is the third chapter of the dissertation in which
the researcher explain the tools and methods of research which he or she will be used in
order to accomplish the aim and objectives of research. Chapter 4 - Data Analysis: Researcher acquires data and information from primary and
secondary sources and in this chapter he or she defines the meaning of data with the help
of themes and charts (Dodge, Herbenick and Guerra-Reyes, 2015). This made the
research more understandable and attractive.
 Chapter 5 - Recommendations and conclusion: This is the last chapter in which
researcher concludes the dissertation and addresses the outcomes he or she acquired from
the research. Further, recommendations are provided by the researcher so that the reader
or to whom the research will be presented can address those recommendations efficiently.
1.8 Framework and Analysis
This part of dissertation will cover the concepts of research methodologies in order to
investigate the impact of customer satisfaction and brand loyalty on Boots. The research
framework is discussed below:
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 Research Philosophy: Research philosophy deals with the source, nature and
development of knowledge. In the following dissertation, the researcher will use
positivism philosophy as it is well structured and effective with the quantitative approach
of research (Dearing, 2014). Research philosophy plays vital role in the research
methodologies and appropriate philosophy must be selected by the researcher in order to
increase the effectiveness of the research. Research Approach: In the following research, deductive research approach will be used
by researcher in order to investigate the impact of customer satisfaction and brand loyalty
on Boots. Deductive approach tests the validity of assumptions (or theories/hypotheses). Research Design: Research design is very important and essential that helps the
researcher to present the research in coherent and logical way. There are several types of
research design which are available to conduct the dissertation. In the present study the
researcher will aim to use descriptive research design by analysing the case study of
Boots in order to investigate the impact of customer satisfaction and brand loyalty. Data Collection methods: There are two sources of collection of data which are primary
and secondary sources (Lasagabaster, 2017). In the quantitative dissertation the data will
be acquired with the help of questionnaire techniques by providing questionnaires to the
customers of Boots stores. From secondary sources, the data will be gathered from
various books, journals, articles and research papers of senior authors and researchers. Sampling: In sampling researcher will select the small proportionate of the information
as the form of sample. Random sampling technique will be used in order to analyse and
interprets the selected data and information.
 Data Analysis: The method of interpreting the gathered data is known as data analysis. It
is the most important and complex part of research project (Dodge, Herbenick and
Guerra-Reyes, 2015). Data analysis must be done appropriately and accordingly in order
to increase the effectiveness of research. In the present study, the researcher will aim to
analyse the data in thematic forms with the help of tables and charts. This will aid in
promulgating the effectiveness of the research and also assist the readers or end users to
comprehend the research effectively and efficiently.
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1.9 Significance of research
Customer satisfaction and brand loyalty plays vital role that aid in increasing productivity
of the organisation. The research is very essential to acquire the importance of customer
satisfaction and brand loyalty that aid in accomplishing organisational goals and targets
(Sengupta, Balaji and Krishnan, 2015). In present era, there is stiff competition between
companies within a very high competent environment in an attempt to offer quality services to
the expectation of customers. Various operational process of the organisations such as service
quality, employee motivation, budgeting of products and customer satisfactions are being
researched and investigated by the researchers. In order to sustain in the competitive
environment, customer satisfaction and brand loyalty plays essential and vital role for the
organisation. Customer satisfaction and loyalty can be increased by delivering them effective
quality of products at appropriate prices. Thus, the following research is very significant and
essential for the researcher. This will aid in providing the information to the management of
Boots so that they can formulate effective and efficient strategies in order to increase their
productivity and profitability. Further, this dissertation will aid in examining the core concepts of
customer satisfaction and brand loyalty so that management of Boots can understand the
concepts of customer satisfaction in order to increase their business capacities. In order to sustain
in the competitive environment, customer satisfaction and brand loyalty plays essential and vital
role for the organisation.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Customer satisfaction is the most essential and important part which rates the
effectiveness of the organisation. Customer satisfaction is directly proportional to the brand
loyalty of the organisation. The more the satisfaction in customer, the more will be the brand
loyalty of the organisation. In order to sustain and survive in the competitive environment, the
management of organisations make continuous innovation in their marketing strategies and
products quality in order to increase more customer base. In this context, this chapter examines
the concepts of customer satisfaction and its impacts on the brand loyalty of Boots by comparing
and contrasting the articles of senior researchers and authors.
2.2 Customer Satisfaction
According to Wu, (2013) customer satisfaction is very important for business
organisation. It helps the managers of the organisation to identify whether their products and
services that were purchased by the customers were able to meet their needs and expectations or
not. In the era of globalisation and competitions, it is very important for the business
organisations to make diligent efforts which helps in increasing the customer satisfaction
effectively and efficiently. As per the view of Saleem and Raja, (2014) customer satisfaction
describes the brand loyalty of the organisations. It is the responsibility of management of the
organisation to make effective efforts in order to improve the customer satisfaction. By
improving the quality of products and services, implementing effective marketing strategies,
analysing the latest market trends and delivering appropriate products to the customers can assist
the management of the organisations to raise the customer satisfaction efficiently.
Boots limited specialised in health and beauty products and have more than 2500 stores
incorporating their business activities across United Kingdom. According to Ene and Ozkaya,
(2014) the organisations facing stiff competition in the market economy of the country. This
impacts on their existing customers and brand loyalty. The management must considers the
importance of customer satisfaction and formulate strategies that aid in promulgating their
productivity and profitability. Bansal and Taylor (2015) argues that the management of
organisations needs to improve their internal environment. Most of the employees remains
dissatisfied and demotivated. This impact on the product quality and thus, lowers the customer
satisfaction.
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In an increasingly customer-oriented business environment, many companies now see the need
to prioritize customer satisfaction and brand loyalty as company goals. On the one hand is the
recognition that cultivating brand loyalty is crucial for long term business success and on the
other hand is the recognition that it is largely driven by customer satisfaction (Awan and
Rehman, 2014). Sotheara et al, (2016) emphasizes that most research findings underscore the
positive impact of customer satisfaction on brand loyalty as well as true recurrent purchasing
behaviour of the same brand leading to long term business profits. For this reason, marketing
professionals lay heavy emphases on the satisfaction of customers with the intention of
cultivating long-term brand loyalty among them. Yet still the question remains as to what
satisfies the customer and what true brand loyalty constitutes. Every business is unique in that it
has its own operating systems inclusive of marketing protocol and strategies aimed at customer
satisfaction and the cultivation of brand loyalty. Customer satisfaction is however relative and
what might satisfy one customer might not necessarily incite the same sentiment in another.
Similarly, loyalty in marketing is multifaceted (), in which case recurrent purchasing behaviour
among consumers might not necessarily be indicative of brand loyalty. It is a fact that most
consumers will take advantage of any scheme they perceive to be advantageous to their shopping
experience and the business that offers the best schemes will most likely garner a high level of
recurrent purchasing behaviour among consumers. Consumer satisfaction plays vital role in the
growth and development of the organisation efficiently.
2.3 Brand Loyalty
According to Jahanshani and et.al., (2014) brand loyalty is the tendency of the customers
to purchase the goods from the same organisations rather than buying it from different and
competing brand. In order to attract more customers and retain the existing customers, it is the
duty of the management and organisations to make efforts in order to increase their goodwill and
reputation adequately. Orel and Kara, (2014) contrast on that and said the brand loyalty is the
benchmark which decides whether the particular business of the organisation survive or sustain
in future or not. It is the degree to which the consumers are loyal towards their brand. Any
organisation can increase their brand reputation and loyalty by delivering effective and efficient
quality of products and services to the consumers. Companies that successfully cultivate loyal
customers sometimes work with brand ambassadors who help the management to promulgate
their brand reputation efficiently. Customers who purchase particular products from certain

organisation recommends their friends and relatives about the particular products and services.
This aid in advertising of the brand and it determines the effectiveness in the quality of goods
and services offered by the organisation.
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