An Investigation into Consumer Loyalty and Reward Schemes at Whitakers

This research proposal examines consumer loyalty and reward schemes within the context of Whitakers Chocolates Ltd. The report begins with an executive summary and table of contents, followed by an introduction discussing consumer satisfaction and its impact on business success. The study explores the role of consumer loyalty, the effectiveness of reward schemes, and factors influencing research project selection. It includes a Gantt chart outlining the research timeline and details the methodology, including the use of questionnaires and data analysis techniques like frequency and percentage analysis. The proposal also reviews Whittaker's Chocolates Ltd, providing an overview of the company and its customer base. Furthermore, the report analyzes consumer behavior, the role of research resources, and the relationship between research questions and hypothesis. The proposal also discusses the importance of consumer satisfaction, marketing strategies, and the application of research evaluation techniques to interpret and analyze results. Finally, the report concludes with recommendations for further research and presents its findings through various media, aiming to provide insights into enhancing customer loyalty and marketing strategies for the company.

Assignment
Consumer Behavior
Student Name:
Student Id:
College Name:
College ID:
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Executive Summary
The following research proposal provides some brief knowledge about the reward
process followed by the organisations to increase the loyal customers in the market.
The research proposal also analyzes the different aspects of the increment of loyal
customers to recommend some effective measures that help the business organisations
to increase the loyal customers in the market. The research proposal collects some
feedback from the customers about the process followed by the business organisations
to increase the number of loyal customers in the market. The researcher conducts the
research on the Whitakers Chocolates ltd to provide information about the process
followed by the company to increase the loyal customers in the market.
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Table of Contents
Introduction ...............................................................................................................................................1
Overview of the Whitakers Chocolates ltd..................................................................................................1
Task 1..........................................................................................................................................................2
1.1 Outlining Loyalty of Consumers and effects of Reward Schemes..........................................................2
1.2 Factors influencing the selection of the research project......................................................................3
1.3 Reviewing the main factors for choosing the topic:..............................................................................3
1.4 Research Project Proposal: An investigation into Consumer Loyalty and Research Schemes...............4
1.5 Presentation of a Gantt Chart with respect to research specification...................................................5
Task 2..........................................................................................................................................................7
2.1: Role of research resources and the relationship between the research resources and research
questions and hypothesis............................................................................................................................7
2.2: Required ‘Questionnaire’ to collect data for the research proposal ...................................................9
2.3: Presentation of the collect data from the research project by using the graph and table ................10
Task 3: The process of interpret and analyze the results of the research proposal ..................................20
3.1: Application of research evaluation techniques to evaluate the results .............................................20
3.2: Interpretation and analysis of the research topic by using the frequency and percentage...............21
3.3: Recommendations of different areas for the further research..........................................................23
Task 4: The presentation of the result and recommendations of the result.............................................24
4.1: Recommendations through a proper media......................................................................................24
Conclusion.................................................................................................................................................30
Bibliography:.............................................................................................................................................31
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Introduction
Consumer satisfaction is a major factor for the success of business organisations.
Therefore, it is one of the major objective of the business organizations that have to
achieve by them to run their business activities successfully and increase the market
share for the in the industry. The satisfaction of the consumers depends on the quality
of the products and services provided by the business organizations. The consistency in
the quality of the products can produce some loyal customers for the organizations.
Some new organizations also provide some rewards for producing loyal consumers in
the market. The business organizations have to recognize the behavior of the consumer
to acquire the knowledge about the process of satisfying the customers. However, the
business organizations try to satisfy the customers by meeting the requirements and
demand of the consumers (Solomon, 2014, p.235). Consumer satisfaction also
depends on the after sales services provided by the organisations. Business
organisations have to use some appropriate techniques and tools to acquire a brief
knowledge about the demand and requirements of the customers. Organisation also
tries to design and develop their products according to the requirements of the
consumers to achieve high customer satisfaction. The following research proposal
provides a brief knowledge about the process by which the modern business
organisations acquire the knowledge about the Consumer behavior. The process
followed by the business organisations to produce some loyal customers in the market
also will be mentioned in the study.
Overview of the Whitakers Chocolates ltd
The research proposal also provides brief knowledge about the process followed by the
Whitakers Chocolate ltd to produce some loyal customers in the market. Whittaker's
chocolate ltd is one of the leading chocolate manufacturing companies in UK which was
established by the John and Rebecca Whitakers in 1889. The Company successfully
satisfies the customers with their chocolate products for the last 128 years. The
company also develops their technologies and production process of the chocolates
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according to the demand of customers. In resent the company produces 10 million
chocolate products every week.
Task 1
1.1 Outlining Loyalty of Consumers and effects of Reward Schemes
Consumer loyalty can be explained as ‘the outcome of consistent experiences of
positive emotions’ which provides the customers satisfaction based on physical
attributes including the product or service offered and their perceived values. It, thus,
refers to the emotional bond that the consumer has with Whitakers Chocolates ltd. that
accounts for the loyalty.
Consumer Loyalty: As per Peter et al. (2013, p.122), to hold back old consumers is
easier than attracting new consumers. For this reason, consumer experience
management appears to be the most effective approach to rise up consumer
satisfaction, retaining them and driving their loyalty to a higher level. Loyal customers
are more inclined to buy supplementary products and services while ensuring sales,
thus saving expenses related to the education of consumers and marketing the product.
Loyalty Schemes and Reward Programs: Consumers making frequent purchases are
offered the loyalty program. Such schemes and programs allow the consumer
beforehand access to special coupons on sales, merchandises for free. It even includes
chances to lay hands on Whitakers Chocolates ltd.’s new products before general
consumers can.
Overall effect on consumer psychology: Taking into account the peaking competitions in
today’s business landscape, such programs can help the organisation stand ahead of
other firms competing in the race. Such distinction happens to be effective in occupying
the attention and loyalty of consumers while boosting profits as the consumer happens
to cherish the product or service in present and even after its use (Chernev et al. 2015,
p. 341).
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1.2 Factors influencing the selection of the research project
 Societal Issues: with the change in society, new topics emerge out which require
attention. Whether to choose a topic or not and to carry out research on it is influenced
mainly by its importance in the changing society. With new trends, new issues arise. To
understand these new issues, new researches have to be conducted.
 Researcher Values: Based on the beliefs, interests and the values one holds, the
researcher may be instigated to choose a topic. It can often be the outcome based on
the experiences the researcher holds, religion he belongs to, his social class, and may
be even based on how he or she wants the society to change.
 Perspectives: Perceptions vary from person to person. Based on the insights of the
researcher and also, what and how interests him, the researcher may wish to choose a
topic he finds suitable as per his interest.
 Funding: Money is of the chief essence in all research related works. Thus the
availability of funds to carry forward the research is very significant. The more the topic
appears to affect the society for its good, easier may it be to attract funding. It is a must
for researchers to be able to afford the ongoing the research on the topic they propose.
 Data availability: The availability of data for a new topic or access to data existing
before hand for smooth operation of the research must be kept in mind. Often
researchers are attracted to fields with gaps. But they must keep in mind the availability
of data if they wish to fill the gap.
1.3 Reviewing the main factors for choosing the topic:
 Critical analysis of socially conditioned psychologies: In the blooming era of
consumerism, understanding the mindsets, viewpoints and behaviors of consumers is
of chief importance to expect the smooth consumption of the product or service being
provided (Wirtz et al. 2007, p. 332).
 Availability of data: Easy collection of data through questionnaires on public forums,
social platforms and daily consumers in the market. This not only helps in
understanding the needs of the consumers but also realizing the expectations they wish
to be fulfilled by Whitakers Chocolates ltd. they are loyal to.
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 Understanding the effect of loyalty schemes on consumer can be made from a wide
range of people: With the rise of brand loyalty, consumers have become more
consistent with their choices (Yi and Jeon, 2003, p. 231). Based on Whitakers
Chocolates ltd./brand’s strategies, loyalty programs to give rewards and incentives such
as samples and free gifts attract even confused consumers to their products.
 Focusing on company’s promises and people’s expectations can provide increased
profits: As analyzed by Dowling et al. (2003, p. 296), trying to discover the gap between
the brand and consumers’ ideals and what exactly they want, Whitakers Chocolates ltd.
strives to meet their end. This in the process can lead Whitakers Chocolates ltd. to
create new products, pulling in more customers while trying to meet the demands of the
ones loyal to them.
1.4 Research Project Proposal: An investigation into Consumer
Loyalty and Research Schemes
Customer trends:
World Wide Web - The Promising Factor
In the age of digitalization, most consumers are deeply influenced by the internet. They
fail to accumulate loyal emotions for any particular brand. The availability of excess
information on the web helps a consumer to compare and contrast among a wide range
of factors before buying a product.
Programs of Direct Purchase:
This program is a method which allows the consumer to purchase stocks in a company
first hand, i.e. directly from Whitakers Chocolates ltd. without any broker fees or any
kind of commission, the customers are aided an advantage.
Customer Relationship Management:
The principles, guidelines and practices being followed by Whitakers Chocolates ltd. to
interact with it consumers is referred to as ‘Customer Relationship Management’ or
CRM. The building blocks of CRM include Whitakers Chocolates ltd.’s official website,
emails, mass mailings, telephone calls and social media interaction.
Customer Information File:
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As opined by Lewis (2004, p. 289) an electronic or physical file storing all exclusive
information (personal and account info) of a consumer is known as ‘Customer
Information File’ or CIF. The profiles of such sensitive information must be secured to
maintain secrecy and accuracy of such sensitive data.
Transferable Points Program:
The transferable point program enables customers to use the points earned by using
credit cards to be transferred and used in any other program they are participating in.
Tailored Advertising:
With the rise of internet, tailored advertising has become more widely used strategy.
This involves issuing coupons for particular products or services (Keh and Lee, 2006, p.
129). This is based on purchases made in the past using datas to deliver a message on
advertising to particular segments of market or campaigns designed to run in particular
areas.
1.5 Presentation of a Gantt Chart with respect to research
specification
Activities First
Week
Second
Week
Third
Week
Fourth
Week
Fifth
Week
Sixth
Week
Selection of the topic
Collection of
secondary data
Literature review
Selection of research
technique
Collection of primary
data
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Data analysis and
findings
Developing
conclusion
Formation of draft
Submission of final
work
Table 1: Gantt Chart
(Source: Created by the author)
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Task 2
2.1: Role of research resources and the relationship between the
research resources and research questions and hypothesis
In respect to develop effective results I have different resources such as human,
financial and physical. With the help of these resources, I can develop my results and
performances in successful aspect. Therefore, aims and objectives can be attain in the
positive manner. Selected resources are carried through books, journals and many
other articles so that it would be beneficial to make clear objectives and goals.
Aim of the research proposal
The main aim of the study is to recognize the benefits of the process of producing loyal
customers on the Whitakers Chocolates ltd. The impacts of loyal customers on the
market of the company are also a major factor of the company. The research study also
provides a brief knowledge about the activities followed by the company to satisfy their
customers continuously.
Objectives of the research proposal
The main objectives of the research proposal are as follows:
A) To identify the activities which are adopted by the Whitakers Chocolate Ltd for
producing some loyal customers in the market.
B) To analyze the importance of producing loyal customers in the market.
C) To understand the issues faced by the Whitakers Chocolate ltd to produce the loyal
customers in the market?
D) To identify the solutions of the issues faced by the company in the process of
producing some loyal customers.
E) To determine the advantages are being got by the Whitakers Chocolate ltd of the
process of producing loyal customers in the market.
F) To recognize the response of the customers towards the products of the Whitakers
after the adoption of the activities in the company.
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Research Hypothesis
H0: The effectiveness of the process of producing loyal customers for the company.
H1: The negative impact of the process of producing loyal customers on the Company.
Research questions:
A) What are the strategies followed by the Whitakers Chocolate ltd to produce some
loyal customers in the market?
B) How the strategies help the Whitakers chocolate company to produce leyal
customers in the market?
C) What are the impacts of the loyal customers on the Whitakers Chocolate ltd?
D) What are the factors that help to evaluate the strategies of producing loyal
customers in the market?
E) What are the changes made in the Whitakers Chocolate ltd after producing the loyal
customers in the market?
Research resources
The research a resource is the sources of information that help to complete the
research proposal in an efficient manner. There are two types of resources can be used
in this research proposal the first one is primary resources and secondary resources. In
the primary resource the information are collected from the audiences directly but in the
secondary resources the information are collected from the Journals, magazines,
newspapers, websites etc.
Relationship between the research resources and research question or
hypothesis:
There is a deep relationship between the research resources and research questions or
hypothesis. The major relationship is the sources of information depend on the type of
question required in the research proposal. The research questions or hypothesis of the
research proposal provide the objectives for the selection of research resources.
2.2: Required ‘Questionnaire’ to collect data for the research proposal
Data collection method- Data collection method provides the information about the
process of the collection of data which are relevant for the research proposal. The
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research proposal can use two types of data collection method the first one is
Qualitative data collection method and the other one is Quantitative data collection
method.
Qualitative Data Collection: (2 managers)
These types of data collected from the case study, historical research and interview.
These data are descriptive in nature and provide important information about the
research topic in details. For the collection of these types of data the researcher take
interview of two managers of the Whitakers Chocolate ltd.
Quantitative Data Collection: (20 customers)
This types of data are collected by using different mathematical tools and statistical
analysis. The researcher uses some questionnaire and asks the questions to the 20
customers of the company.
Questionnaire
For qualitative (2 questions)
Question 1: What is the role of loyal customers in Whitakers Chocolate Ltd?
Question 2: What are the activities followed by the Whitakers Chocolate Ltd for
producing loyal customers in the market?
For quantitative (6 questions)
Question 1: How long you have been customer of Whitakers Chocolate Ltd?
Question 2: How the Chocolate products of the Whitakers satisfy your requirements?
Question 3: How do you agree that the reward process plays a vital role for producing
loyal customers?
Question 4: How far do you agree that reward process help the company to retain the
loyal customers?
Question 5: How far do you agree that the process of producing loyal customers help
the company to handle the grievances?
Question 6: What are factors that help the Whitalers to increase the number loyal
customers in the market?
Question 7: How are you satisfy with products and services quality of Whitalers?
Question 8: What is most important factor to increase profitability and productivity of
Whitalers?
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