Research Project: Factors Influencing Customer Loyalty at Sainsbury's

This research project investigates customer loyalty, specifically focusing on Sainsbury's strategies and their impact on consumer behavior. The project begins with an overview of customer loyalty, its significance for business profitability, and the background of Sainsbury's loyalty programs. It explores literature reviews, research methodologies including questionnaires and data analysis, and presents findings on factors affecting customer loyalty, such as interest, experience, and resource availability. The project examines Sainsbury's Nectar scheme and customer relationship management, analyzing how these initiatives influence consumer purchasing behavior and brand loyalty. It also includes aims, objectives, research questions, and a Gantt chart for the research plan, offering a comprehensive analysis of customer loyalty programs and their effectiveness in the retail sector. The project concludes with recommendations for Sainsbury's to enhance customer loyalty and improve overall business performance.

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Table of Contents
Chapter 1 INTRODUCTION...........................................................................................................3
1.1 Overview..........................................................................................................................3
1.2 Background.......................................................................................................................3
1.3 Literature review...............................................................................................................5
1.4 Aims and objectives..........................................................................................................7
1.5 Gantt Chart on research plan............................................................................................8
Chapter 2 RESEARCH METHODOLOGY..................................................................................10
Introduction..........................................................................................................................10
2.1 Questionnaire..................................................................................................................12
2.2 Data analyses..................................................................................................................13
Chapter 3 - CONCLUSION AND RECOMMENDATION..........................................................22
CHAPTER 4- Presenting data Analysis..........................................................22
4.1 Presentation of findings..................................................................................................23
REFERENCES...............................................................................................................................41

Chapter 1 INTRODUCTION
1.1 Overview
Consumer loyalty is the repetitive purchasing behaviour shown for particular brand or
company. The customer loyalty reflects the attitudinal commitment of the consumer. The loyalty
programmes are developed by companies to reward customer for their loyalty this makes the
relationship of buyer and seller more efficient.
The customer engaged in repetitive buying and prioritising the brand products built the
customer loyalty. Market research helps the company building efficient loyalty programme by
identifying the loyal customers for the firm.
Research is the review finding out the reason behind the customer loyalty for particular
brand and managing the loyalty program. The supplier receive rewards as the loyal customer for
his services. The research include the data collection from various resources which influence the
customer loyalty an the reward system of the company (O'Leary, 2013).
1.2 Background
The customer loyalty affects the business profitability to the large extent. The past
experience with the company affects the attitude of the consumer toward the firm products and
the services. A bad experience can influence the purchasing behaviour of customer and the
customer will shift his loyalty with other brand. It is studied that even though the customer is
have wrong experience, the consumer is trying to building good relationship with the same
product again.
The project research defines the factors which affects the customer loyalty. The Research
studies the market and identity the loyal customer of particular product and services. The
research outline comprises the introduction, literature review, collection of data from various
resources, qualitative and quantitative research of data and result of research on the subject.
The first part of research review is the introduction to the customer loyalty and the
importance of implementation of consumer loyalty programme within the organisation.
Introduction of the research contains the need of market research and finding out various factors
which influence the repetitive purchase of customer for specific brand.
Second part of research studies the literature review required in performing research
effectively. The literature review helps the researcher to gain basic knowledge about the topic of

research. The research accumulate effective knowledge about the customer loyalty programme
and the reward system of the company.
The research studies the services provided by the Sainsbury plc to their customer to retain
consumer loyalty and attract more customer for the organisation. The sainsbusry is the food
retailer of UK. The sainsbury is providing implemented nector scheme in the organisation to
enhance their sales and the consumer loyalty.
The next part of the research contains the collection of qualitative data and the
quantitative data from various resources that affects the loyalty of the customer. The qualitative
research of company include collection of data from the company key members. This research is
carried out with the semi structured interview the technique of data collection. The mangers is
having good knowledge about the company operations and product and services of the company.
This helps in finding significant results of result related to the policies and schemes of the
Sainsbury company implemented for their customers (McNiff, 2016).
The next part of research studies the quantitative data and analyse that to conclude some
important results related to research subject. The quantitative data collection method followed by
the research is market survey and the study of preferences and the attitude osfconsumers toward
the brand and products of Sainsbury.
The last part of the research include the result of the problem associated with the
customer loyalty programme and the reward system. This conclude the effective stretgy
implemented by the sainsbury to develop good customer relationship in the market and retain
their customer loyalty. Customer loyalty helps in generation of revenue in the company for long-
term hence affects the profitably of the sainsbury. The factors affecting the research finding of
customers behaviour are defined as follows:
1. Interest: The research findings are largely influenced by the interest of
participant. The interest of investigator also largely influence the finding of
research project to large extent.
2. Explore: The research topic which can be explored will give an appropriateness
finding in order to the controversial data and information which can be shared by
people. This will largely affects the results of research.

3. Experience: The experience of investigator largely influence the appropriateness
and correctiveness of the the results of research topic and objectives. Experiences
of researcher will helps in evaluating the data accurately.
4. Benefits: The benefits and profit from the findings of research project will largely
influence the interest and seriousness of the researcher to large extent. If the
researcher getting any benefits from the research then the investigator will finds
results with higher dedication.
5. Resource availability: The various resources like financial, human resource
availability to the researcher largely influence the appropriateness of findings.
1.3 Literature review.
For finding out effective results about problems associated with the consumer loyalty
desk study can not be efficient. According to view of Martínez and del Bosque, (2013), The field
search is necessary for checking the level of correctiveness of hypothesis related to the research
topic. The filed research is an important resource available for the research work. This gives
research an authentic finding about customer loyalty of the Sainsbury in market. The factor
affecting the research subject are:
6. Customers: the customer selection affects the research finding top the large
extent. The target customers for the field research can be existing loyal customer,
the customer who switched loyalty ton other brand and the prospective loyal
customer for the sainsbury products and services. According to Denzin and
Lincoln, (2011) the data collected from the sainsbury services consumers provides
information to the research are like the affect of the substitutes and other
competitor product ion the purchase of particular brand product, data but recent
market trends, production and the consumption habits of consumer.
7. Competitors: The competitors strategy implementation affects the customer
behaviour and attitudinal commitment toward particular brand and manufacturer.
As per the view of Mandhachitara and Poolthong, (2011), it has been stated that
the competitors helps in providing information like implementation of new
technology, affect of introduction of new product line by competitor business,
pricing strategy of competitors like Tesco affects the sainsbury customer loyalty.

8. Market experts: experts is the hub of knowledge about the market and the effect
of other factors on the market. So theses market experts influence the finding of
results as they provides information about the customers. According to Eid,
(2011) the background of the study highlights the various affects of the variables
with the customer loyalty.
9. Distribution and suppliers: the distributors provides information about the
changing taste and preferences of the customer according to the changing needs of
consumers. According to Ganguli and Roy, (2011) the information given by the
suppliers and distributors affecting the research project are how the availability of
raw material affects the production, pricing strategy and the negotiation strategy
followed by suppliers and sellers, the different purchasing behaviour shown by
the loyal customer of sainsburyv during various time span of year.
The sainsbury company proposes various schemes to retain customer loyalty towards the
products and services. On the views of Grunig, (2013), it has been depicted that the company
follows various marketing strategies in influencing the repetitive purchase behaviour of the
consumers.
The sainsbury is continuously proposing new strategies for the development of project
report related to the problem of the research. The sainsbury developed mobile app providing ease
to access services to the consumers. This helps in building satisfaction in customers mind
developing customer loyalty towards the saionsbury.
As per recommendation of Grunig, (2013) Sainsbury developed various sachems to retain
the customer loyalty for their product and the services. Sainbury is continuously working with
the customer relationship managemnmt team to deal with various problems faced by consumers
regarding product pre and post sales. This helps in sainsbury to develop reliability in consumer
mind.
Sainsbury proposed nectar scheme to attract more customers. The every purchase from
retail outlet helps in building points to the customer which helps in the maintaining repetitive
purchasing behaviour of consumers to only specific brand of sainsbury.
As per the view of Ganguli and Roy, (2011), it has been stated that the sainsbury focuses
on customer relationship management team to develop new plans in retaining the customers and

providing them better services than the other competitors. The sainsbury is continuously working
with the price strategy and quality services to creating brand image in mind of the consumer.
Sainsbury is continuously engaged in building customer loyalty and the creating reward
system for the customers. The loyalty can be built through two ways one is by creating brand
loyalty and the second is creating loyalty towards the single manufacturing.
The research proposal constitutes the activities that are involved in the carrying out the
research program efficiently. The step involved in the developing research proposal are:
 Develop the problem in the organisation related to the customer loyalty and the reward
system.
 Developing aim and objective of the research subject. Why the research related to the
customer loyalty is necessary.
 Creation of hypothesis relating to factors affecting the consumer loyalty towards brand.
 Collection of data from various resources that affects the reward system of sainsbury and
the customer loyalty.
 Analysing the data collected and calculating affect on the findings of the research carried
out on sainsbury customers.
 Evaluation of finding and implementing the results in operations of the sainsbury to
develop customer loyalty in the organisation.
Conclusion: It can be conclude that research review is carried out through studying
various books, journal and magazines. Literature review analyse the data and interpret findings
through the collection of secondary data related to the research topic and research objective. It
can be reviewed through interpreted the data collected in literature review from books and
journal that customer behaviour is largely influenced from the trends social networking sites.
1.4 Aims and objectives.
Research aim:
To evaluate impact of consumer behaviour on the performance level of organization.
Research objectives:
 To identify consumer behaviour.
 To analyse effectiveness of consumer behaviour.
 To critically analyse impact of consumer behaviour on existence of organisation.
Research question

 Is the customer satisfaction is directly proportional to the consumer loyalty or not.
 Is the quality of product affects the consumer repetitive behaviour or not.
 The price strategy influence the consumer behaviour for certain brand or not.
 Is the reward system is effective in retaining the customer loyalty of Siansbury or not.
The selection of sainsbury company for the research related to the customer loyalty
programme. As the cited firm is very much involved in attracting and retaining the loyal
customers to the company. Sainsbury is performing well in building good customer relationship
and providing rewards to the loyal customer of the company.
Research methodology defines about various tools that contribute in increasing the
efficiency of finding of subject matter. The various tools and techniques developed by the
researcher in evaluating the finding are research philosophy, research design, sampling
questionnaire and ethical consideration. All these techniques largely contribute in increasing
efficiently of the research findings.
1.5 Gantt Chart on research plan
Gantt chart helps the researcher in scheduling the activities carried out during the
research of customer loyalty program of sainsbury. The chart helps in managing the task and the
working of research programme in the defined time frame within the quality constraints of
results of research.
The research studies only the effect of the reward system and the internal strategy implemented
by organisation on retaining the consumer loyalty. There are many more factor which affects the
customer loyalty program of the Siansbury company which are not covered in this report subject.
The various factor affecting the customer loyalty are economic factors, social factors and
competitor strategy to the large extent.
The economical factors affects the loyalty of the consumer for the services of the
Siansbury. The economical factors like recession and other crisis results in the change in
purchasing habits of the customers. The customer will tend to spend less on the luxurious goods
at the time of financial crisis. This affects the luxurious services provided by the Siansbury
company and affects the customer loyalty (Bell, 2014).
The social factor influence the customer loyalty to the large extent. The change in
preferences related to the the health and the modernisation affects the buying nature and needs of
the customer. This will affects the customer loyalty of the services provided by the Siansbury.

Then affect of these factors may be positive or negative for retaining the loyal consumers for
certain brand of the Siansbury company
The competitor pricing strategy and and the quality of product influence the intention of
customer to switch with other brand sacrificing the customer loyalty for Siansbury company. The
customer pricing strategy attracts the new customers for the organisation leaving the negative
effect on the consumer loyalty for sainsbury organisation.
Serial Number Activity Proceeding Duration
1 Problems of research - 1 day
2 Aim of research 1 1 day
3 Objective of research 2 1 day
4 Hypothesis related to
subject
2,3 2 day
5 Plan of research 4 1 day
6 Identification of data
sources
5 1 day
7 Collection of data 6 1 day
8 Interpretation of data 7 1 day
9 Findings of research 7,8 2 day
10 Implementation of
findings
9 1 day
11 Evaluation and
feedback of result
910 2 day

Research plan
activities
Day
1
Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9 Day
10
Problems of
research
Aim of
research
Objective of
research
Hypothesis
related to
subject
Plan of
research
Identification
of data sources
Collection of
data
Interpretation
of data
Findings of
research
Implementation
of findings
Evaluation and
feedback of
result

Chapter 2 RESEARCH METHODOLOGY
Introduction
The effective analysis and the evaluation of the collected data from the survey is very
much necessary of the development of significant finding to the research topic. The evaluation of
the data follows various types of techniques for proper evaluation of primary and secondary data
collected.
The data analysis techniques involves the quantitative analysis as well ass qualitative
analysis techniques. These techniques follows various methods for evaluating the results and the
finding efficient results related to the customer loyalty.
The methods used in the in qualitative techniques are scaling method, rating method,
expert opinion, frequency methods. The scaling method involves scaling the process on the
various parameters of factors affecting the customer loyalty. Like how much affect of the quality
of factor affects the consumer loyalty of Siansbury. The rating scale method rate the quality
services and satisfaction level on rating scale for qualitative analysis. This helps in finding the
result effectively.
The quantitative approach are more efficient and accurate in terms of relevancy. As the
the quantitative approach include methods of mathematical and scientific implementation. The
quantitative approach used in the data analysis are like the regression analysis and the
correlation between the various factors. The regression analysis is the approach finding out the
effect of dependent factor on the independent factors of customer loyalty and reward system of
the Siansbury. While the correlation techniques shows the how closely the various factors
influencing the customer loyalty are correlated with each other. In studying the customer loyalty
and reward system in organisation formative assessment is more relevant approach in data
analysis.
There are many factors which will affects the customer loyalty of the consumer towards
the certain brand. The hypothesis of research is dependent on the various factors associated
within customer loyalty. These factors are described as:
 Service quality: The quality of service provided by the Siansbury company influence the
customer loyalty to the large extent. The service quality helps in finding out the
relationship the consumer loyalty.

 Price: The price strategy of the company influence the intension of consumer switch to
another brand. This also affects in the formation of hypothesis related to research subject.
 Trust: Trust is the building block of any relationship. Trust strengthens the relationship of
consumer and the company. Trust of consumer towards the services of the company
hence influence the consumer loyalty (Denzin and Lincoln, 2011).
The hypothesis developed between the dependent factor and the independent factor of the
research subject. The hypothesis developed by the researcher related to the customer loyalty of
Siansbury consumer are:
The data collection method may include primary data or secondary that in research that
affects the consumer behaviour in the organisation. The data analysis technique may involve the
regression analysis, correlation between variables chart methods or qualitative techniques like
rating technique scaling technique etc.
Research resources influence the development of research questions and the hypothesis to
a large extent. The research resources like the data collection from the mangers influence the
type of questionnaire designed for collection of primary data. While the distributor, suppliers and
other factors influence the collection of secondary data and the type of technique used in
collection. There is relation between the factors affecting the customer loyalty like consumer
behaviour, substitute in market, competitor strategy, customer trust and reliability, quality of
services in building the hypothesis for research project.
2.1 Questionnaire.
The questionnaire is prepared for collection of data from selected 20 candidates . The list
of candidate include customers of various age group, key members of the the company etc.
questionnaire contains close ended question for review the research result. The questions
included in questionnaire are:
1. Rate the services and products provided by the Siansbury consumer on the scale of
satisfaction level?(-2 dissatisfaction to 2 fully satisfied services.)
A. -2 B. -1 C. 0 D. 1 E. 2
2. How you suggest the services and products to family members and friends about
Siansbury?
A. Good B. Bad C. Average
3. How repetitively you are engaged in purchasing the goods of Siansbury?