Project 1: Research Proposal: Customer Satisfaction and Loyalty

This project presents a research proposal examining the impact of customer satisfaction on customer loyalty within the retail sector, using Morrison's as a case study. The introduction provides an overview of customer satisfaction, emphasizing its significance in the retail environment and its effect on customer retention and loyalty. The literature review delves into the existing body of knowledge, exploring the relationship between customer satisfaction and loyalty, and the importance of meeting customer needs. The methodology outlines the research approach, which includes the research questions, aims, objectives, and research methods. Findings and analysis will present the results of the research, discussing the key factors influencing customer satisfaction and loyalty within the retail industry. The conclusion summarizes the key findings and offers recommendations for improving customer satisfaction and loyalty, ultimately benefiting businesses in the retail sector. The project aims to identify the importance of customer satisfaction, explore ways to improve it, and determine the relationship between customer satisfaction and customer loyalty within the retail environment.

Project 1- Research Proposal
Impact of Customer Satisfaction on Customer Loyalty on
Retail Sector/Morrison’s

Table of Contents
Introduction......................................................................................................................................3
Literature Review.............................................................................................................................5
Methodology....................................................................................................................................9
Findings and Analysis....................................................................................................................17
Conclusions and Recommendations..............................................................................................28
REFERENCES..............................................................................................................................30
Books and journals....................................................................................................................30

Introduction
Overview of the topic
Customer satisfaction is something that often put-upon in merchandising. It is a
measurement of how goods and employment provide by an organisation meet or exceed
expectations of consumers. Customer satisfaction explains about the customer happiness means
how much customer is satisfied with products (Al-Omari, Alomari and Aljawarneh, 2020).
Consumer contentment, the much contented a consumer is, the greater the possibility they will
create some other acquisition in the approaching. Contented clients also lean to get loyal
consumers that mean a greater lifespan worth for that clients and customers. So there is several
assorted structure or manner for raising the consumer’s contentment like supply choice of goods
and services, by giving faithful and correct message about the goods, utilisation of effectual
boost up techniques and many more. These are reasoned much effectual and helpful manner for a
company in betterment of consumer contentment towards the marquee, commodity, employment
or procedure. A loyal consumer would expend much on one acquisition than a fresh consumer.
These kinds of things have an affirmative contact on consumer loyalty. Greater consumer
contentment on the marque alleviate, services organisation by rising word-of-mouth, accelerative
and huge consumer base and many more. Therefore, contentment between consumers helps
company to in raising loyalty of clients towards the marque. This context also shows the
literature review of the report. A literature review or communicative reappraisal is a form of
reappraisal section. A literature review is an academic material that shows the actual cognition
considering the essential collection as well as hypothetical and methodological endeavour to a
peculiar subject. This also defined the some methodologies that help the company to satisfied
more customers and help the company to create more customer base. This research also
investigate about the aims, vision and value of this search and also analysis the importance of
customer satisfaction in the marketplace and what are the best strategies and methods to improve
and enhance more customer satisfaction. This report also investigates and find out about the
kinship among customer satisfaction and customer loyalty. This also explain treatise because that
support in distinguishing of every chapter and their intent within an inquiry or research and it
will also explain the acceptance of the concept of motivation , training and investment, some
methodology like investigation design , investigation methods , approaches , philosophy, about
the time horizon about the collection of data and information. This investigation refers to the

some questionnaire that questionnaire is a much and very helpful tool and equipment because
that will help and assist the research worker in assemblage and collect the primary and
quantitative information in a particular time of period and Data analysis present to the
impressive operation or programmes of evaluating the information in sort of qualitative or
quantitative, this distribution is much helpful and serviceable method of examine quantitative
information within minimum time of period and also in effectual mode.
Background of the organisation
For this investigation, Morrison’s is a selected sizeable series of grocery store in UK. The
Morrison's Company was established in 1899 by William Morrison, and the company
headquartered in Bradford, West Yorkshire, England. This organisation chiefly specify in
merchandising of vesture, nutrient and drink publication, books and too many goods to the
consumers. Morrison’s is a reputed company in industry because of its choice and quality of
goods and services. Major goals of this company are to raise and gain consumer contentment and
consumer fidelity that move to affect in raising gross sales and profitableness of concern
organisation. In this report there is analysis of the customer satisfaction of the company. The
company Morrison's take care of the needs and demands of the customer as they provide various
kinds of products. As this is the multinational company so they have to take care of these things
like customer satisfaction and the needs and demands of the consumer. For increasing their sales
and demands the company is focusing on customer satisfaction because that will help the
company to enhance their business and to increase the profit (Bricci, Fragata and Antunes,
2016). Loyal customer is creating so many impacts on the company. The company business is
chiefly food & grocery and, unambiguously, they origin & procedure mostly the new and fresh
nutrient that they trade and provide by their self facilities and services of manufacturing. This
provide and gives the company adjacent power and control upon the root & choice as do the
amount of bound up and disciplined professed in their outlets and shops who set up and ready
their food for their consumers . We have much accomplished association for ready and prepare
substance in their outlets or in shops than any further wholesale. The companies own marque
show an vital part within their organisation and for their consumers also . Perceptive and
understanding their consumers, and concentrating on belongings that are much and more prior
for them, such as cost, choice and scope remains their concentrate, so that the company brand
going to be applicable and captivating. The company consumer said that they want much pick

of vegan at their outlets. So the company establish or setup their ‘V Taste’ scope of vegan
goods for their customers and they are enhancing and rising the clearness of their labelling on
their most of the goods like more than 300 end-to-end the shop that is much appropriate for
vegans. To request to their much cost delicate consumers, they civilized the ‘Prevention’ scope,
strengthening their worth offers. So for the company customer satisfaction is much needed.
Research Questions
 What is the major importance’s of customer satisfaction within retail sector?
 What are the effective ways that will be used by Morrison’s for improving customer
satisfaction towards their brand?
 What are the relationship between customer satisfaction and customer loyalty?
Research aim and objectives
Research aim:
“To identify the impact of customer satisfaction on customer loyalty within retail sector”.
Research objectives
 To identify the importance of customer satisfaction within retail sector.
 To explore ways for improving customer satisfaction towards the brand.
 To determine the relationship between customer satisfaction and customer loyalty.
Literature Review
To determine the relationship between customer satisfaction and customer loyalty.
According to (Golovkova and et. al., 2019) Customer satisfaction is an important
phenomenon that helps a business to retain customers. In retail industry it is vital to provide the
customer with the needs and wants and that helps to satisfy them. The more the customers are
happy with the organisation the more it is beneficial for them. In relation to retail industry they
have to study the current trends and provide the services to customers so as to satisfy them. The
more the satisfied customers better it is for organisation and for industry as well. To gain loyal
customers that do not switch it kis important to satisfy there needs and wants. The satisfied
customers promote the business and it is beneficial for the customers loyalty and customer
satisfaction are directly related to each other. Every company wants to have a good customers
base and loyal customers. It is time taking to develop loyal customers but it helps to gain
competitive advantage. The more the customers are satisfied, higher is chance of sales within the

industry. The organisations should take timely actions and keep the know about the customers, a
regular study about the customers is important to maintain loyalty among them. In retail industry
if the organisation provides quality goods and services to its customers than they are attracted
towards the organisation. Satisfying the customers is heart of marketing the organisation that is
able to satisfy its customers it successful as satisfied customers make repetitive visits that is
beneficial for the organisation. There is a strong relationship between satisfaction and customers
loyalty. As those customers that are satisfied by the organisation are loyal towards the
organisation and generally do not switch easily. It is vital for organisation to understand the
relationship between loyalty of customers and there satisfaction. The customers are able to build
trust for the organisation and that trust results in making the customers loyal for the organisation.
To compete in this dynamic world, it is important to provide customers the products and services
according to their preference. The organisation should take measures and actions to know the
customers so as to provide them services accordingly. Organisation take feedback from the
customers and take actions to fulfil the requirement of the customers as that will help the
organisation to gain loyalty among customers. Loyal customers help the organisation to make
more profits and this is also beneficial for the organisation as it helps to gain competitive lead. It
is beneficial to develop loyal customers as they attract more customers through work of mouth,
they create positive image of the organisation. If the customers are served by keeping in mind
their needs and wants then are more satisfied towards the organisation. Basically if an
organisation makes proper research and provide best quality services to its customers that it
attracts customers and they feel satisfied. If the customers are satisfied with the services provided
by an organisation then it increases the loyalty among them. This clearly shows that there is
positive relation between customer satisfaction and customer loyalty. So the organisation in retail
industry should focus on increasing the customer satisfaction as that will help to increase loyal
customers for the organisation. This also means if the customers are not satisfied by the services
provided by the organisation that means the customers would not be loyal and find new place
where they will get better services. So the organisations should focus on providing quality
services and maintain a satisfaction level among customers so that they are loyal towards the
organisation. Also if the loyalty of the customers is valued then it shows that the organisation has
more loyal customers.
Importance of customer satisfaction in retail sector

According to (Gye-Soo, 2016) Customer satisfaction can be characterized as one of the
prominent elements that contributes in the growth and success of business organisations. It
involves the identification and assessment of the consumer’s needs and desires and coming up
with innovative products and services that can facilitate in the satisfaction of the same. Retail
sector is one of the biggest sectors in the market environment and enjoys good consumer
audience as well. Retail industry provides a range of product line and branches to its respective
consumers. There is an aggressive competition in the retail industry as various popular and
successful business organisations compete with each other so as to acquire relatively larger
market share and to achieve competitive advantages as well in the market. In order to surpass the
other rival competitors and to sustain in the market for longer run, it becomes very important for
the business organisation to focus on customer satisfaction so as the encourage and attract the
consumers towards company’s offerings. Customer satisfaction in essential in order increment
the sale of organisational offering which in turn will provide assistance to the company to yield
higher profits as well. In retail industry, satisfaction of customers should be at the utmost priority
for the companies so as to promote differentiation of products and services and to highlight the
quality goods and services of the same. In order to grow and expand in the retail industry, it is
essential to earn the loyalty of the customers so as to improve the retention and maintenance of
the same in the respective business organisation. The more the organisation is able to understand
the needs and wants of customers the more the organisation is beneficial. It is not an easy task to
satisfy the customers but the organisations make proper research and make innovation in product
according to the needs and wants of customers that increases the satisfaction level of customers.
A satisfied customer promote the namer of company and brand as they have build a trust for the
organisation. There are many benefits that are associated with satisfied customers. They make
repetitive visit and the organisation does not have to make more efforts to retain them as the
satisfied customers are loyal towards the organisation. Customer satisfaction means the
happiness that customers get after using the products and services of the organisation. The
customers should be provided offers and discounts and their loyalty should be valued. The
organisation that has loyal customers are able to gain competitive advantage. To survive
smoothly and make more profits it is important for organisation to serve the customers according
to their needs and wants. The organisation should make regular innovation and update in
products offered by them as it will attract more and more customers. The business in which the

customers are not satisfied may feel loss as they are unable to satisfy the needs and wants of
customers. If the organisation take measures to satisfy customers and provide them services
according to their needs and wants then the company has loyal customers base that are satisfied
by the organisation. It helps to attract more customers as it creates good brand image of company
in the market. As more customers are attracted for the organisation they are able to make more
profits. In retail industry there are many products that are offered by the organisation to its
customers and if those products are according to needs and wants of the customers then the
organisation is able to earn more profits.
To explore ways for improving customer satisfaction towards the brand.
According to (Imran and et. al., 2019) the first and foremost thing that can done by
Morrison Company in order to encourage the customer satisfaction of their consumers is to
understand their requirement and to manufacture and design the offerings that are in accordance
to the same. The company should also focus on building communication and network channels
with their consumers so as to hear their concerns and complaints and provide effective solutions
to then in order to solve their issues and problem. The company can provide 24 hours support to
their consumers which will facilitate the company in satisfying the queries of the same. Morrison
should also formulate a feedback mechanism which can record the feedback and review of their
consumers and can take suggestions from the same so as to improvise and modify their products
and services in the future run. The respective company can also enhance their customer
satisfaction by promoting The first and foremost thing that can done by Morrison Company in
order to encourage the customer satisfaction of their consumers is to understand their
requirement and to manufacture and design the offerings that are in accordance to the same. The
company should also focus on building communication and network channels with their
consumers so as to hear their concerns and complaints and provide effective solutions to then in
order to solve their issues and problem. The company can provide 24 hours support to their
consumers which will facilitate the company in satisfying the queries of the same. Morrison
should also formulate a feedback mechanism which can rethe customer service etiquette within
the employees of the company and to train them to effectively interact and manage the
consumers. Morrison can also capitalise on visual techniques and tools so as to provide instant
help to the consumers in case of urgency which in turn will also help the company in order to
gain the trust of the customers. The company should implement effective strategies that can

enhance the consumer experience which will further lead to the formulation of good consumer
base for the business organisation. It is essential for organisations to find ways by which
customers are attracted towards the organisation. It is not only the task, the main thing that
organisation should perform is to find ways through which the customers are attracted towards
the organisation. The basic tool is ask customers clearly what they want, the problems they are
facing and what are the areas in which the customers wants development. The organisations
should also provide after sales services to the customers as there duty do not end up only by
selling the products and services but they also have to provide post sales services to the
customers. Also all the complaints that the customers have drawn on the website should be
addressed and solved. This creates a positive image of company in the mind of customers and
they also promote the brand. Regular innovation helps the organisation to attract more customers
and satisfy them For success of an organisation it is important for them to know about the
policies and practices that are followed by the competitiors as it helps them to makare better
policies that will help in ncreasing the satisfaction level of customers.
Methodology
Research is an important term that is used for searching knowledge (Koch, Gerdt and
Schewe, 2020). Its plays a crucial role when organisation found some important information that
can be only done with the help of research. Research need to be proper planning and systematic
so that organisation get accurate and exact result in their outcomes that become helpful for
organisation. In research there is some problem that can be solving through research
methodology. It the way of doing research that includes the scientific way to solve problems.
There are many steps that are necessary for performing research and solving research problem in
organisation. It is know everyone that researcher should know about research techniques /
methods but it is also very important for the organisation that they should be aware about
research methodology. Research methodology is the key element that helps to apply appropriate
methods in aright way so that result can get exactly that they want. It includes all logics that are
behind the use of research methods. It includes collection and analysis of data that are related to
the topics. It includes important types of methodologies that can be understand from the
following points:
Research Philosophy: Research philosophy is not a small topic; it is the broad term that
includes the source of information and their nature and development also. It is the belief for ways

that applicable for collection and analysing of data. It also includes awareness and formulation of
belief or assumptions for research problem. For that reason data collection is needed that can be
gathered from two ways i.e. primary and secondary. It is basically a shape of onion in which
including all types of methodology that can be analysis in the process of research.
From the above diagram, it is very clearly seen that how much it is wider concept
because it covers all the things that are important for solving of research problem. It includes all
stages that should complete in research process. Every single stage covers some assumptions that
become the base of research strategy. There are main four research philosophies that help to give
the base for research strategy. All four are important but there need depends on the nature of
research problem that are pragmatism, positivism, realism and interpretivism. Pragmatism is very
effective because it accepts only relevant concepts that give the entire picture of research. It is
analysed that it defines that there are many ways in which organisation can interpreting research
that means there is no single way that interpret correctly, it takes various ways that helps to
interpret. Positivism is the term that follows the view in which only factual knowledge is covered
in research. It limits the data collection that means it should be completed in objective way.
Interpretivism is the term that refers to a philosophy which is not valuable because it doesn't take
quantifiable data that gives the result which is understandable. Last but not least i.e. realism
philosophy that has different methods of collection of data and it relies on independence of

reality. It is much more accurate and interdependent but cost is high as compared to other
philosophies.
Research Approach: It refers to the approach or methods that are undertaken for
collection and analysis of data that gathered from the sample size. It is basically a blue print or
plan that is develop for arranging all the steps that can be performed in the future while
performing research. It is arising due to the assumptions that are undertaken in the research
study. It takes all things that are related to the collection and analysis of data. It is very important
for the researchers that they should plan about data that can be gathered from the population
about the topic. It helps in making the process ease with the help of pre-planned things that gives
clear directions to everyone. That can be easily done with the proper understanding of topic
through planning. It includes all information that becomes necessary for the research. There are
mainly two approaches that can be helpful for gathering data from the population. The two
approaches are deductive and inductive approach. Deductive approach is very helpful for this
investigation because it takes quantifiable data that can be give right and accurate data to the
organisation. It doesn't take much time as compared to another one but it helps to provide good
outcomes that actually researcher wants from this investigation. Inductive approach is not much
effective for this investigation it relies on qualitative data that is not productive for this
investigation as it takes more resources, cost and time. From the brief discussion about both
approaches, it is founded that deductive approach is more appropriate than inductive approach
(Neupane and Devkota, 2017).
Research Choice: It is the selection of research that is benefited for research topic's
interpretation. There are two important effective ways that helps to become the successful
research that are qualitative research and quantitative research. It is very obvious that this
investigation needs quantitative research because it takes all necessary terms in quantifiable
manner. It covers numerical terminology that is easy to understand by everyone. Whereas
qualitative research is not useful or appropriate for this investigation because it covers only
words that are time taking for interpretation and cannot be easily understandable. It takes time
more than expected and doesn't give outcome on specified time limit.
Research design: It refers to the strategy that applicable for whole research study as it
integrates all the things that are come in research in a logical and coherent way. It is very helpful
for the clear definition of each and every stage that under come in the process of research.

Access and ethical issues: It is very important for the researcher that they should know
about the ethics that must be properly maintained. In secondary data collection method it is
analysed that there are many sources include books, journal, published magazines, etc. In
addition to this, there are some important principles that should be followed by researcher in the
process of making research. Ethics and principles both are very essential for the successful
completion of research project because it helps to minimise the risk that can be arise due to not
following properly ethics of research.
Sample selection: Sample selection is very crucial terminology in the research project.
Without sample selection research project is not possible as it is very important to perform
research. Firstly researcher should be select sample size so that they can decide the selection of
sample area from which they can collect information. In sample selection there are mainly two
techniques used for selecting the sample that are probability and nonprobability. Probability
sampling is more useful as compared to non-probability sampling in this investigation because it
helps to select a sample in less time. For this investigation the sample size is undertaken 50
customers of Morrison's.
Data collection: Data collection is the way together all important data or information
from the population or selected sample. Data collection has two methods that are primary and
secondary method. Both data collection method plays significant role in research as both are
useful. It is very clearly by the researcher that in primary data collection they get fresh data
which are not copied from any published data. So that's why primary data collection is more
effective done secondary data collection method. In primary data collection, researcher gets more
accurate and exact figures that are unbiased in nature. It is most reliable information which helps
to ascertain in best results for the research topic. The most common tools that are useful in
primary data collection method are questionnaire, direct interviews and surveys. Where is
secondary data collection method is depends on published books, magazines, articles and
newspapers. It is not giving much accurate information as compared to primary data collection
methods. The information can be biased which influence the outcome of research topic.
Research Instruments: Research instruments are the means or medium in which
researcher focus on instruments that are focus group, interviews, observation, etc. All of them are
very important because it helps to gather information about the effect of customer satisfaction on
customer's loyalty. For these things they used questionnaire that gives exact and accurate