Customer LoyaltyWhat Impacts Customer Loyalty           Name        Grade Course      Instructor’s Name           20/5/11 ...
ABSTRACTThis research study introduces a comprehensive conceptual framework of customer loyaltywithin the retail sector. I...
TABLE OF CONTENTSSection 1: Introduction                                          4       Relevance of the Proposed Resear...
INTRODUCTION        The purpose of this research proposal is to delineate the concept of customer loyaltyand determine the...
she also refers your products to their friends, family and peers and at the same time displays astrong resistance towards ...
To ascertain the impact of consumer purchase patterns on customer loyalty               An assessment of various factors s...
but will also be helpful in evaluating and assessing the impact of various factors such asprice, promotion, perceived risk...
in the minds of the consumers but also allows you to discover their feelings, thoughts,behavior and expectations. Fleming,...
glean out the various objectives stated earlier, a number of books shall be referred to in orderto understand the various ...
Conclusion       This research study on “Impacting Customer Loyalty” will form the foundationtowards creating an understan...
REFERENCESAaker, Kumar & Day, 1995, Marketing Research, 5th edition, John Wiley & Sons, Inc.,United StatesAssael, Henry., ...
Hawkins, Del., Roger, J., 1995 Consumer Behavior-Implications and strategy, 6th editionIrwin Inc, USAHobert, Neil., Speece...
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What impacts customer loyalty

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What impacts customer loyalty

  1. 1. Customer LoyaltyWhat Impacts Customer Loyalty Name Grade Course Instructor’s Name 20/5/11 1
  2. 2. ABSTRACTThis research study introduces a comprehensive conceptual framework of customer loyaltywithin the retail sector. It emphasizes on the perceived loyalty amongst fast moving consumergoods and attempts to explore the moderating effects of the various different factors thatmight influence them.The researcher will begin by creating an understanding of the term “customer loyalty” and itssignificance importance in the retail sector. Additionally, the researcher shall also attempt toexplore the purchase decisions made by the consumers and what really prompts them to beloyal to certain brands of product while simultaneously evaluating the importance of price,quality, brand or any other factor that might impact their loyalty status and purchase decision.Finally, the research study will conclude by delineating the factors which impacts consumerloyalty at the same time trying to establish a means of measuring the impact of consumerloyalty within certain products in the retail sector. 2
  3. 3. TABLE OF CONTENTSSection 1: Introduction 4 Relevance of the Proposed Research to Business Research 4 Key Research Studies and Relevant Bodies of Theory 4 Research Objectives 5Section 2: Account of Method 6 Research Design 6 a) Secondary Research 6 b) Primary Research 6 Data Collection 7 Data Analysis 8Section C: Discussion 9 How the Methodology addresses the Research Question 9 Drawbacks 9 Conclusion 10References 11 3
  4. 4. INTRODUCTION The purpose of this research proposal is to delineate the concept of customer loyaltyand determine the various set of factors which might impact consumers’ loyalty within theretail sector. Moreover, here the researcher shall be examining this conundrum by not onlyinvestigating the different authors’ insight into the realm of customer loyalty but also byconducting a primary research in order to gain a better understanding of the factors affectingcustomer loyaltyRelevance of the Proposed Research to Business ResearchFast moving consumer goods within the retail sector, are goods that are sold relativelyquickly in high volumes and lower prices. When it comes to such items, customer loyaltyplays a colossal role. The proposed research will help glean into the level of customer loyaltyengaged within such goods and how this can be enhanced.Key Research Studies and Relevant Bodies of Theory A customer can be defined as a person who becomes acclimatizes to buying from youor your company. This custom is developed through purchase and interaction on recurrentoccasions over a consistent period of time. However, until there is no repeat purchases thisperson is only your buyer. Lowenstein, Michael W. (1997) A true customer is then said to bedeveloped over time. Customer loyalty on the other hand is when a buyer tends to makerepeat purchases on regular intervals, across various products and services. Additionally he or 4
  5. 5. she also refers your products to their friends, family and peers and at the same time displays astrong resistance towards the pull of your competitors. Customer loyalty is a very strong and reliable indicator of a company’s sales as wellas financial growth. Lowenstein, Michael W. (1997) Customer loyalty can be best explainedas an attitudinal state which reflects trust, value, and commitment within the relationshipbetween the suppliers and the customers. Satisfaction is one of several predecessors ofloyalty. One of the most important aspect influencing loyalty amongst customers is the basicoffer of a unique value-delivering advantage be derived or provided by competitors. Thusfirms need to develop positive value-based exit barriers to achieve loyalty. Additionally thecollection and monitoring of customer data is needed for success and two-waycommunication is vital. Buttle, Francis (2006) Substantial Research has been carried out from time to time in order to determine thereasons behind a consumer’s loyalty within the retail sector and what stimulates it. Many ofthese consumer decisions are triggered by product’s quality, attributes and prices while othersarise internally from consumers’ own emotions, feelings or perceptions associated with acertain brand or the environment surrounding it. (Hawkins, Del., Best, Roger., Coney,Kennedy., 1995) Research Questions to be Investigated The key research objectives that will be evaluated within the course of this studyinclude: An in-depth examination of the term “customer loyalty” with the retail sector and its relevance to the marketers as well as the consumers. An exhibition of the various different antecedents that is likely to impact customer loyalty. To distinguish between customer loyalty and repeat purchase behavior 5
  6. 6. To ascertain the impact of consumer purchase patterns on customer loyalty An assessment of various factors such as demographics, psychographics and life styles and their impact on customer loyalty.During the course of this study, the researcher shall discuss the importance of customerloyalty within the retail sector in the United Kingdom. Here, the customer loyalty pyramidshall be explained, followed by why companies aim to maintain a culture that is totallycommitted to their customers. For such companies creating and at the same time sustainingcustomer perceived value is paramount. Additionally this research will also be exploring thedevelopment of the customer retention culture as well as the Seven-S Framework developedby the McKinsey & Company and how it helps companies scale its customer loyalty. Griffin,Jill. (2002) ACCOUNT OF METHOD Choosing between the various different methods of research is a crucial stage. It is theresearch design that coordinates the methodology with the stated objectives of the research.Research Design Keeping in mind, the research topic, the researcher shall mainly adopt an exploratoryapproach throughout the course of study. The primary aim would be to get a strong grasp onan understanding of the notion of what really influences customer loyalty and its relevantunderlying areas such as customer preferences, attitudes, lifestyles and purchasing patterns. Additionally, a descriptive approach will also be adopted at a number of places inorder to provide an accurate snapshot of some of the key aspects of market and customersegmentation. This will not only help in developing a tentative and speculative hypotheses 6
  7. 7. but will also be helpful in evaluating and assessing the impact of various factors such asprice, promotion, perceived risks etc on customers’ loyalty towards any certain fast movingconsumer good. Secondary Research: Secondary data is an integral part of any research. It not only serves as a referencebase for comparing the accuracy and validity of the primary research. But in fact, it is also acheap, cost effective way of gathering important data that will assist the researcherthroughout the course of study. (Aaker, Kumar & Day) As part of the secondary research, a number of books, research journals, magazines,periodicals, newspapers and most importantly the internet will be referred to in order to gaina better insight about the factors inhibiting customer loyalty. Primary Research: Many times secondary research may not just be sufficient enough, especially when itcomes to understanding the various consumer purchase patterns, behavior, product usage oreven when seeking their psychological or socio-cultural information. Schiffman, Kanul.,(2001) This gives rise to the need for primary research. Primary Research can be defined asthe data that is collected first hand in order to solve a specific problem at hand. Fleming, D.& Domegan, C., (2003)Data Collection A major portion of the data that will be collected for the purpose of analysis will bethrough the circulation of Survey questionnaires and in-depth interviews. Moreover, keepingin mind the nature of the research, the researcher will be particularly be leaning towardsQualitative Research. These are collection of data that is open to interpretation and may alsonot be required to be validated statistically. Additionally it not only helps to evaluate what is 7
  8. 8. in the minds of the consumers but also allows you to discover their feelings, thoughts,behavior and expectations. Fleming, D. & Domegan, C., (2003) In order to conduct a cost effective and an accurate primary research, the researchershall first start with a simple, approximately ten minutes self administered surveyquestionnaire to gauge the factors that impact customer loyalty within the retail sector. Thishowever seems to be the most feasible starting point and will be targeted towardsapproximately five hundred target respondents. The respondents will be chosen at randomand will mainly comprise of the researcher’s friends, family, peers and co-workers. Each ofthe questions in the questionnaire survey will be constructed carefully using simple and easywordings that are self explanatory thus avoiding any ambiguity or uncertainty. Furthermore, apart from this the sampling frame would be based on simple andconvenient random probability sample frame. This would mainly comprise of in-depthinterviews with professionals belonging to the retail sector. These are an unstructured and adirect way of obtaining the required information. Fleming, D. & Domegan, C., (2003) Thiswould in turn help in assessing their views regarding customer loyalty and what are thefactors that actually impacts customer loyalty. These interviews will help in understandingthe information gained through the survey questionnaires and allow the researcher to take thisstudy a step further. Moreover, the use of these in-depth interviews (both structured and semistructured) will go hand in hand in discovering the respondents’ attitudes, true motives andreasons for being loyal to a particular set of brands.Data Analysis Analyzing data is an integral part of every research. It is the set of methods andtechniques used to obtain significant insight from data. (Aaker, Kumar & Day) In order to 8
  9. 9. glean out the various objectives stated earlier, a number of books shall be referred to in orderto understand the various data collection techniques. Before starting the actual analysis of the data, the researcher shall collect, collate, edit,code and tabulate data while simultaneously checking it for consistency, completeness andambiguity. Moreover, different types of scales will also be employed in order to obtainsignificant useful data via questionnaire survey. The final results will then be analyzedstatistically, displayed graphically and interpreted accordingly. DISCUSSIONHow the Methodology addresses the Research Question The proposed methodology will help the researcher gain a better insight into the realmof customer loyalty. Additionally, it would clearly identify the different variables that haveboth positive and negative impact on the loyalty of the customer towards certain goods, thusallowing companies to manipulate these variables in their favor in the future and affectcustomer loyalty.Key Drawbacks Although after conducting a thorough preliminary analysis, the research presents nosuch set-backs or limitations. However, at the same time, the researcher feels time andfinancially bound. Additionally, the research may also be geographically bound which mightpresent another set-back in the entire course of study. 9
  10. 10. Conclusion This research study on “Impacting Customer Loyalty” will form the foundationtowards creating an understanding of the concept of customer loyalty within the retail sector.Thus, enabling professionals within this field, to develop various measures in order topromote customer loyalty within their business. Additionally, it will also help consumersbecome more aware of the choices they make and why they make it. 10
  11. 11. REFERENCESAaker, Kumar & Day, 1995, Marketing Research, 5th edition, John Wiley & Sons, Inc.,United StatesAssael, Henry., 1984, Consumer Behavior and Marketing Action, 2nd edition, KentPublishing, USAButtle, Francis (2006, July 11), Does service failure influence customer loyalty?Available from http://onlinelibrary.wiley.com/doi/10.1002/cb.67/abstract [May 19th2011]Dick, Alan S., 1994, Customer Loyalty: Towards an Integrated Conceptual Framework,Journal of Academy of Marketing ScienceDomegan, Christine., Fleming, Declan., 2003, Marketing Research in Ireland, 2nd edition,Gill & Macmillan, DublinGriffin, Jill., 2002, Customer Loyalty- How to Earn It, How to Keep It. Available fromhttp://www.questia.com/PM.qst?a=o&d=108852298 [May 19th 2011] 11
  12. 12. Hawkins, Del., Roger, J., 1995 Consumer Behavior-Implications and strategy, 6th editionIrwin Inc, USAHobert, Neil., Speece, Mark., 1993, Practical Marketing Research: An Integrated GlobalPerspective, Simon & Schuster, SingaporeKotler, Philips, 2000, Marketing Management, Millennium Edition, Prentice Hall Inc., NewJerseyLowenstein, Michael W. (1997) The Customer Loyalty Pyramid. Available fromhttp://www.questia.com/PM.qst?a=o&d=23383321 [May 19th 2011]Olson, Jerry., Peter, Paul., 2001, Consumer Behavior and Marketing Strategy, 6th edition,McGraw Hill, N.AmericaSchiffman, Leon., Kanuk, Leslie., 2001, Consumer Behavior, 6th edition, Prentice Hall, NewJersey 12

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