Dissertation: Loyalty Cards, Trustworthiness, and Brand Perception

This dissertation investigates the relationship between customer loyalty cards and brand trustworthiness, focusing on a case study of Marks and Spencer. The study aims to analyze how loyalty programs, specifically the Sparks loyalty card, impact customer perception, brand image, and customer satisfaction. The research employs a descriptive research design and quantitative research techniques, including surveys of Marks and Spencer managers, to collect and analyze data. The dissertation explores the concept and terminology of loyalty card programs, their significance in business, and the benefits of the Sparks loyalty card. It also examines the relationship between loyalty cards and trustworthiness, proposing hypotheses about the positive impact of loyalty programs on brand image and customer trust. The study includes a literature review, research methodology, data analysis, and conclusions, offering recommendations for improving customer loyalty and brand trustworthiness within the organization. The dissertation provides a comprehensive overview of the subject, incorporating relevant theories and concepts to assess the effectiveness of loyalty programs in fostering customer loyalty and building a strong brand image.

DISSERTATION
(Relationship between loyalty cards and trustworthiness
towards a brand)

Acknowledgement
I would like to acknowledge my sincere thanks to my parents and superviser who
has provided guidance and motivation for me and continuously offered her full
support to help me overcome any difficulties, thus allowing me to submit a
comprehensive report. I am grateful to everyone who gave their time to complete a
questionnaire, as without them I would have no data.
Keyword: Customer loyalty card, trustworthiness, brand image, customer
satisfaction, Marks and Spencer

Abstract
Customer loyalty card is that way through which company can gain effective customer
loyalty toward the brand. A loyalty card is a plastic card that some shops provide to regular
customers. While customers buys something from the store or shop then each time points are
electronically stored on their card and can be exchanged later for the good and services This is
considered as most significant aspect in the entire dissertation that supports the investigator in
identifying the criteria to conduct the study. In the present research study, researcher will apply
the descriptive research design for conduct the investigation in the most significant aspect. In
addition to this, investigator will apply quantitative research techniques for analyse the
relationship between the customer loyalty card and customers trustworthiness toward the brand
with respect of Marks and Spencer. In this current study, scholar will apply primary data
collection under which survey will conduct for the 25 manager of the Marks and Spencer. The
major objective of the survey is to collect the information about the Spark loyalty card of the
Marks and Spencer organisation. Researcher will take the support of various models, theories
and concept about the subject that help in analysing the information.

Table of Contents
TITLE OF DISSERTATION...........................................................................................................6
1 Introduction..................................................................................................................................6
2 Research Aim................................................................................................................................7
2.3 Rationale of the study.......................................................................................................8
2.4 Chapter structure..............................................................................................................8
3 LITERATURE REVIEW...........................................................................................................10
3.1Introduction.....................................................................................................................10
3.2 Concept and terminology of Loyalty card programmes.................................................10
3.3 Significance and role of the customer loyalty program in the business enterprises.......12
3.4 Types of Loyalty programmes........................................................................................13
3.5 Relationship between the customer loyalty card and trustworthiness toward the brand 14
3.6 Benefits of Spark Loyalty card of Marks and Spencer...................................................17
4 RESEARCH METHODOLOGY................................................................................................18
4.1 Introduction....................................................................................................................18
4.2 Research Philosophies....................................................................................................18
4.3 Data collection................................................................................................................19
4.4 Research approach..........................................................................................................20
4.5 Research techniques.......................................................................................................20
4.6 Research design..............................................................................................................21
4.7 Sampling.........................................................................................................................21
4.8 Ethical considerations.....................................................................................................21
4.9 Validity and reliability....................................................................................................22
5 DATA ANALYSIS AD INTERPRETATION..........................................................................23
Introduction..........................................................................................................................23
Data analysis.........................................................................................................................23
Regression......................................................................................................................................28
5 CONCLUSION ..........................................................................................................................32
6 RECOMMENDATIONS............................................................................................................34
REFERENCES..............................................................................................................................36

TITLE OF DISSERTATION
To assess the relationship between loyalty cards and trustworthiness towards a brand: A case
study on Marks and Spencer
1 Introduction
In the today's world every business entity desires to gain the competitive advantage and
success in the competitive business environment. In order to gain effective success and market
share, corporation design such effective strategies and practices through which firm can improve
its performance in the market. As customers is a kind of market because entire success of the
company is largely depending upon the effective customer satisfaction. Thus, it is very important
for the company to make such effective strategies through which corporation can attract large
numbers of customers (Preston-Shoot and Kline, 2012). Furthermore, it is also very important to
design such attractive and innovative programs through which large numbers of customers can
attracted toward the firm. It can be said that loyalty program is a structured marketing strategies
which developed by the company to attract and encourage customers for regular shopping at the
organisation. A loyalty card also known as the reward card, point card, advantage card or club
card (Bringle, Hatcher and Jones, S.G. eds., 2012). Thus, it can be said that these criteria for
sales the product and services is one of the best way by which company can attract new
customers and make satisfy the existing customers. With help of this customer loyalty toward the
brand can also increase.
In the current dissertation, the major aim is to assess the relationship between loyalty
cards and trustworthiness towards a brand with respect of Marks and Spencer. It is one of the
most leading retail outlet in the UK. It has several customer's product and services in the market
through which it has developed strong brand image in the market. Marks and Spencer have 979
stores throughout the UK and 454 international stores (Rasheed, 2013). It produced high quality
of good and services through which it has able to set its distinctive image in the market. In
respect to the customer loyalty program and reward, it has made special arrangement through
which it has successfully gained the customers likes and their loyalty toward the brand (Cozby
and Bates, 2015). Marks and Spencer launched customer loyalty card which name is Sparks
loyalty card to reward members with early access to online sales and daily prices draws.
In the current study, the major aim of the researcher is to assess the relationship between
the customer loyalty card of the Marks and Spencer and trustworthiness toward the brand. For

attain this objective researcher have applied quantitative research techniques along with primary
data collection.
2 Research Aim
The aim of this study is to analyse the relationship between customer loyalty cards and
trustworthiness in a brand: A case study on Marks and Spencer. As there is a direct relationship
between the customer loyalty card and trustworthiness because if company provides customer
loyalty card to its customer then it creates interest and loyalty among buyer regarding brand.
Customer loyalty card directly affect mind and perception of customer regarding the brand and
its product and services through which they bound to come within same brand again and again.
Organisations design its customer loyalty card in order to enhance the relationship with core
customers. Firms can easily collect, hold and analyse customer’s data by providing this loyalty
program to its customers with help of attractive and effective customer loyalty and reward
program, company can attract new customers interested in deals. In addition to this, loyalty
program can induce customers to buy higher priced products from the organisation. Researcher
desires to acknowledge the relationship between customer loyalty card and customer
trustworthiness toward brand. With help of this study, researcher can get detail that how
customer loyalty card affects the customer loyalty regarding brand.
2.1 Research Objectives
 To understand the terminology of customer loyalty card program and its significance in
the organisation. A systematic meaning and terminology of customer loyalty card and its
impact in the company. In addition to this, customer loyalty card program helps to
company in attracting customer and retain them for long time.
 To evaluate the significance of the customer loyalty card program to create the
trustworthiness of customer toward the brand. In addition to this, how customer loyalty
card helps to organisation in developing trust and loyalty among customers so as they
likes to use same brand again and again. Furthermore, how customer loyalty card helps
to company in retain the customer for long time so as firm can improve its brand image
in the market.
 To analyse the advantage of the Marks and Spencer's Spark loyalty card for both
organisation and customers. In addition to this, various benefits and its role of Marks and
Spencer company's customer loyalty card. How Marks and Spencer loyalty card helps to

company in increase its profitability and retain customer for long time. In addition to this,
how this card helps to customer in enjoying several advantages regarding discount and
offers.
 To determine the relationship between the relationship between loyalty cards and
trustworthiness towards a brand. The impact of customer loyalty card and its impact on
customer trust and loyalty .Recommendation for improve customer loyalty within the
organisation by organise customer loyalty program and event. Strategies to improve
trustworthiness among buyers so as they can purchase commodity from same brand.
2.2 Research Hypothesis
This paper defines the relationship between customer loyalty card and trustworthiness toward
brand of company. The following hypotheses are consequent on the basis of the factors that
influence trustworthiness of customers-
HI: There is a positive and significant relationship between customer loyalty card program and
brand image
H2: There is a positive and significant relationship between the trustworthiness and brand image
of the company
H3: There is a positive and significant relationship between customer loyalty card and
trustworthiness.
H4: Customer loyalty card program and trustworthiness are directly associated to one another
and impacts upon the overall image of a brand.
2.3 Rationale of the study
In the recent era, corporation requires gaining competitive advantage and sustainability in
the market for long time. For attain this target, firms develop several kids of distinctive policies,
practices, strategies and program through which it can gain the large numbers of customer
attention. In this aspect, customer loyalty card is one of the strategy through which company can
gain the large numbers of customer attention (Gioia, Corley and Hamilton, 2013). Researcher has
huge interest in this topic as they want to explore their theoretical knowledge into the practical
aspect that is why this topic has been selected as a dissertation subject.
2.4 Chapter structure
In order to accomplish the dissertation, researcher have to follow a systematic structure.
This structure of dissertation are as follows-

Chapter 1: Introduction
It would be introducing the chapter in which researcher will give overview about the meaning
and importance of the customer loyalty card program in the dissertation. With assistance of the
introduction chapter, researcher can provide the overview about the proposed study and its
various aspects such as rationale, significance, main objective, aim, research questions etc.
Chapter 2: Literature review
This is another crucial chapter that provides the detail understanding and knowledge about the
research topic. In this chapter, several kinds of themes can be created according to the objective
of research topic.
Chapter 3: Research Methodology
This is another one of the crucial chapter that describes various tools and techniques that can
used by the scholar in addressing the right solution of the research problem. With assistance of
this chapter, researcher can apply several techniques for achieving the proper solution and
effective result of the problem. In the current study, researcher will apply quantitative technique
along with primary data collection.
Chapter 4: Data analysis
In this chapter, scholar will assess and analyse the information in order to present
information in such manner so as valid solution can easily come out. With help of this chapter,
scholar can interpreter and analyse the information for attain the objective.
Chapter 5: Conclusion and recommendation
This is another one of the chapter that help in concluding the information. It is a last part of the
dissertation in which scholar can summarise the study and give necessary recommendation
related to the subject.

3 LITERATURE REVIEW
3.1Introduction
Once an introduction of the research study has completed in the next chapter scholar will
focus on the literature review. Literature review is one of the essential chapter that provides the
detail knowledge and understanding about the subject. In this chapter, critical statement provided
for establish better understanding about the subject. In order to address this chapter, investigator
have to conduct the secondary research under which information can collect from the secondary
data such as books, journals, online blogs, articles etc., (La and Choi, 2012). In this chapter,
various authors views and statement can include in critical manner. In this current study, the
major aim is to assess the relationship between customer loyalty card and trustworthiness of the
customers toward the brand. Thus, for attain this objective, scholar will focus on the several
themes which designed according to research objective.
3.2 Concept and terminology of Loyalty card programmes
According to the view of Reeves and et.al., (2011) A loyalty card is a plastic card that
some shops provide to regular customers. While customers buy something from the store or shop
then each time points are electronically stored on their card and can be exchanged later for the
good and services. It can be said that loyalty program is a structured marketing strategies which
developed by the company to attract and encourage customers for regular shopping at the
organisation. A loyalty card also known as the reward card, point card, advantage card or club
card. In the contradicting view of Rasheed, (2013) a loyalty card program is an incentive plan
which allows an organisation to collect information about the customers. By this loyalty card,
customer can gain the discounts on products, coupons, points toward merchandise or some other
reward in exchange for their voluntary participation in the program.
In the view of Preston-Shoot and Kline, (2012) loyalty program is a structured marketing
strategies which designed by merchants for attract and encourage customers for continuous
shopping with associated brand. A loyalty card is a card that can collected by the supermarket or
chain store. It can collect by the customers and used to record credit points awarded for money
spend in the store. In the contradicting view of Robra-Bissantz and Lattemann, (2017) customer
loyalty card is a swipe card which is issued by the supermarket or chain store to a customer in
order to record credit points awarded for money spent in the stores. With help of this loyalty
card, customer can get the advantages of discounting upon their order of goods and services with

associated organisation. In addition to this, customer have options to get the incentive and reward
points upon each shopping with help of this loyalty card. It is just a plastic card which can carry
out in the pocket by customers.
Reeves and et.al., 2011 stated that in addition to this, customer can get the advantage of
points and incentive by any stores or branch of the associated company in any city and country.
There is not bound to get the advantage of loyalty card in the particular city and store by which
they have purchased the goods and services. In addition to this, with help of customer loyalty
card, organisation manage the effective relationship with customers and retain them for long time
because in order to get more rewards and incentive, customer may stay loyal with brand. In the
contradicting view of Kassim, N. and Asiah Abdullah, N., 2010 stated that Moreover, customer
do not go with other brand in order to get the product and services in the market. Thus, it can be
said that loyalty card assists to the business enterprise in retaining the customer for long time.
Furthermore, customer loyalty card aids to the company in acknowledging the information and
data about the regular customers who are loyal for the brand.
According to the view of Milner and Furnham, (2017) loyalty program are well designed
and structured strategy of marketing which developed by the organisation in order to motivate
and encourage buyers for regular shopping and sue the services of business associated with each
program. This program aids in encouraging the shoppers to return to stores where they frequently
make the purchases. In some of the incentive, customer have an opportunity to get the new
product and services, additional discounts and buy one get one free offers. In the contradicting
view of Veselova, Tarasova and Kossukhina, (2017) in order to get the loyalty card and for
become the member of loyalty card program, customer have to make registration first with
company. In the registration process, company asks customer name, mobile number, age, gender
etc., and provide unique identifier such as numerical ID or membership card.
In the opinion of Gast and Ledford, (2014) In this customer loyalty program, company
provides two major functions, first is company reward customers for brand loyalty and they
deliver the issuing organisation with a wealth of customer information. With assistance of the
customer loyalty card program, company can easily generate brand loyalty in the mind of
customers who regular purchase the product and services with associated brand. In the
contradicting view of Baines, Fill Rosengren and Antonetti, (2017) stated that brand loyalty is a
pattern of customer’s behaviour through which they are encourage to make repeated purchasing

with particular brand in the market. Organisation often develop various marketing tactics and
strategies to cultivate that loyal buyers by offering loyalty programs, trails, free gifts, loyalty
programs etc.
3.3 Significance and role of the customer loyalty program in the business enterprises
According to the view of Ryu, Lee and Gon Kim, (2012) customer loyalty program is
beneficial for both customer as well as organisation. Both customers and organisation can
beneficial by this loyalty card program as it provides high sales to the company and saving to the
customers. In the contradicting view of Cammarota and Fine, (2010) the major benefit of the
customer loyalty card program is to attract the large number of customers and new customers as
well. A loyalty program offers incentives to the customers for purchasing goods they need
anyway. While any organisation engages with the customer loyalty card program then its major
objective behind this aspect is to enhance the sales and profitability in the market. Marketers and
business owners enjoy loyalty programs because they have the ability to improve customer
retention for a specific operation.
In the opinion of Preston-Shoot and Kline, (2012) Firm can easily sale its older stock
with help of loyalty card program because by these schemes, company deliver incentives and
points to its customer through which they attract for purchasing. This strategy assists in selling
the older stock in frequent manner in the market. While in the market, there are too many
competitors available then customer loyalty card program is that way through which firm can
easily gain sustainability for long time by attract the large numbers of the customers. In the
contradicting view of Gast, D.L. and Ledford, J.R., 2014 stated that with help of customer
loyalty card program, firm can easily develop the distinctive and effective brand image in the
market. In the market, there are numerous brands available in the retail sector which delivers
different product and services to its customers.
In the opinion of Scott and Spouse, 2013) There are too tight competition among these
organisations so customer loyalty program is that tactics in this competitive business
environment through which company can set its own competitive advantage. As per the research
it has been found that there are various kinds of schemes and types available in the loyalty card
program which offer different benefits to customers. Thus, by develop different kind of loyalty
card, firm can deliver different kinds of benefits and advantage to its customers. In order to get
various advantage, buyers can involve in different membership card of the corporation which