Verified Document

Customer Loyalty Programs: Are They Research Proposal

The researcher will administer the study to customers who are shopping at the store. The researcher will ask the customer questions about what influenced their decision to shop at that particular store that day. Data Collection Method

The primary data collection method for the study will be quantitative. Quantitative study methods are most useful when the data can be transformed into t numerical data point. This study will compare the importance of the factors being examined through a Likert-type survey questionnaire. Study participants will fill out and return the study results immediately to the researcher onsite.

Contribution of Study

This study will contribute to a better understanding of the importance of customer loyalty cards to the decision to shop at a particular grocer. The study will help manager, policy makers, and other researchers better understand how to improve overall customer loyalty. It will play an important role in helping to develop customer loyalty programs that actually result in higher profits and greater market share. It will help managers and others to build brand equity that will provide a substantial customer base over a longer period.

Without this study, managers and others will continue to spend money on programs that may or may not work in retaining customer loyalty. An understanding of what customers want is an important factor in assuring that managers receive value for the money spent on these programs. This study will help to fill the gap discovered during the literature review regarding the factors that contribute to a successful customer loyalty program.

As one can see, managing customer relations involves many of the factors that are present in any marketing campaign. Just as with primary marketing, retaining customer loyalty means gaining a thorough understanding of customer wishes and needs. Customer loyalty is a highly competitive field and companies must make certain that their money is not wasted. This study will help retailers and others understand what drives customer decisions to return to a particular retail establishment and the role that customer loyalty cards play in that decision.

Bibliography

Basso, L., Clements, M., & Ross, T. 2007. Moral Hazard and Customer Loyalty Programs. [online]. 14 August 2007. Available at http://www.economics.ucr.edu/seminars/winter08/ets/TomRoss.pdf[Accessed 25 October 2008[.

Butscher, S. 2002. Customer Loyalty Programmes & Clubs. 2nd Edition. Aldershot, England: Gower Publishing Company.

CIOInsight. 2003. Trends: Loyalty Programs. CIO Insight Online. [internet] 1 December 2003. Available at http://www.cioinsight.com/c/a/Special-Reports/Trends-Loyalty-Programs/[Accessed 25 October 2008]/

Dowling, G., & Uncles, M. 1997. Do Customer Loyalty Programs Really Work? MIT Sloan Management Review [online] Summer 1997. 38 (4): 71-82. Available at http://sloanreview.mit.edu/smr/issue/1997/summer/6/[Accessed 25 October 2008].

Humby, C., Hunt, T., & Phillips, T. 2003. Scoring Points: How Tesco Continues to Win Customer Loyalty....

2nd. Revised Edition. USA: Kogan Page Ltd.
Jeon, H. 2003. Effects of Loyalty Programs on Value Perception, Program Loyalty and Brand Loyalty. Journal of the Academy of Marketing Science. 31 (3): 229-240.

Kimar, V. & Shaw, D. Building and sustaining profitable customer loyalty for the 21st century. Journal of Retailing. [online] 80 (4): 317-329. Available at http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W5D-4DXTHWB-2&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=a1b75df88e766190eb7bfbffb88fdfe3[Accessed 25 October 2008].

Leenheer, J., Van Heede, H., Bijmolt, T. & Smidts, a. 2006. Do Loyalty Programs Really Enhance Behavioral Loyalty? An Empirical Analysis Accounting for Self-Selecting Members. Social Science Research Network. ERIM Report Series Reference No. ERS-2006-076-MKT. Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=969532[Accessed 25 October 2008].

Meyer-Waarden, L. 2007. The effects of loyalty programs on customer lifetime duration and share of wallet. Journal of Retailing. [online]. April 2007. 83 (2): 223-236. Available at http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W5D-4N74JDR-1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_version=1&_urlVersion=0&_userid=10&md5=e05ae047dc2d4340ca4af494aa732cc0[Accessed 25 October 2008].

Meyer-Waarden, L. & Benavent, C. 2008. Rewards That Reward. MIT Sloan Management Review [online]. 22 September 2008. Available at http://sloanreview.mit.edu/wsj/insight/marketing/2008/09/22/[Accessed 25 October 2008].

Phillips, T. 2007. Tesco knows loyalty like no other, (opinion). Retailing Today [online]. 18 June 2007. Available at http://www.accessmylibrary.com/coms2/summary_0286-34043290_ITM[Accessed 25 October 2008].

Reichheld, F. & Teal, T. 2001. The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value. USA: Harvard Business School Press.

Singh, S., Jain, D., & Krihnan, T. 2008. Research Note - Customer Loyalty Programs: Are They Profitable? Management Science [online]. June 2008. 54 (6): 1205-1211. Available at http://mansci.journal.informs.org/cgi/content/abstract/54/6/1205[Accessed 25 October 2008].

Steers, S. 2007. Loyalty programs boost retention, profits; agents should be cross-selling home-based business accounts, commercial clients. National Underwriter Property & Casualty. 14 May 2007.

Wirtz, J., Mattila, a., & Lwin, M. 2007. How Effective Are Loyalty Reward Programs in Driving Share of Wallet? Journal of Service Research. [online]. 9 (4): 327-334. Available at http://jsr.sagepub.com/cgi/content/abstract/9/4/327[Accessed 25 October 2008].

Yuping, L. & Rong, Y. forthcoming Competing Loyalty Programs: Impact of Market Saturation, Market Share, and Category Expandability. Journal of Marketing. [online]. Available at http://www.yupingliu.com/files/papers/liu_yang_loyalty_program_competition.pdf[Accessed 25 October 2008].

Sources used in this document:
Bibliography

Basso, L., Clements, M., & Ross, T. 2007. Moral Hazard and Customer Loyalty Programs. [online]. 14 August 2007. Available at http://www.economics.ucr.edu/seminars/winter08/ets/TomRoss.pdf[Accessed 25 October 2008[.

Butscher, S. 2002. Customer Loyalty Programmes & Clubs. 2nd Edition. Aldershot, England: Gower Publishing Company.

CIOInsight. 2003. Trends: Loyalty Programs. CIO Insight Online. [internet] 1 December 2003. Available at http://www.cioinsight.com/c/a/Special-Reports/Trends-Loyalty-Programs/[Accessed 25 October 2008]/

Dowling, G., & Uncles, M. 1997. Do Customer Loyalty Programs Really Work? MIT Sloan Management Review [online] Summer 1997. 38 (4): 71-82. Available at http://sloanreview.mit.edu/smr/issue/1997/summer/6/[Accessed 25 October 2008].
Kimar, V. & Shaw, D. Building and sustaining profitable customer loyalty for the 21st century. Journal of Retailing. [online] 80 (4): 317-329. Available at http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W5D-4DXTHWB-2&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=a1b75df88e766190eb7bfbffb88fdfe3[Accessed 25 October 2008].
Leenheer, J., Van Heede, H., Bijmolt, T. & Smidts, a. 2006. Do Loyalty Programs Really Enhance Behavioral Loyalty? An Empirical Analysis Accounting for Self-Selecting Members. Social Science Research Network. ERIM Report Series Reference No. ERS-2006-076-MKT. Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=969532[Accessed 25 October 2008].
Meyer-Waarden, L. 2007. The effects of loyalty programs on customer lifetime duration and share of wallet. Journal of Retailing. [online]. April 2007. 83 (2): 223-236. Available at http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6W5D-4N74JDR-1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_version=1&_urlVersion=0&_userid=10&md5=e05ae047dc2d4340ca4af494aa732cc0[Accessed 25 October 2008].
Meyer-Waarden, L. & Benavent, C. 2008. Rewards That Reward. MIT Sloan Management Review [online]. 22 September 2008. Available at http://sloanreview.mit.edu/wsj/insight/marketing/2008/09/22/[Accessed 25 October 2008].
Phillips, T. 2007. Tesco knows loyalty like no other, (opinion). Retailing Today [online]. 18 June 2007. Available at http://www.accessmylibrary.com/coms2/summary_0286-34043290_ITM[Accessed 25 October 2008].
Singh, S., Jain, D., & Krihnan, T. 2008. Research Note - Customer Loyalty Programs: Are They Profitable? Management Science [online]. June 2008. 54 (6): 1205-1211. Available at http://mansci.journal.informs.org/cgi/content/abstract/54/6/1205[Accessed 25 October 2008].
Wirtz, J., Mattila, a., & Lwin, M. 2007. How Effective Are Loyalty Reward Programs in Driving Share of Wallet? Journal of Service Research. [online]. 9 (4): 327-334. Available at http://jsr.sagepub.com/cgi/content/abstract/9/4/327[Accessed 25 October 2008].
Yuping, L. & Rong, Y. forthcoming Competing Loyalty Programs: Impact of Market Saturation, Market Share, and Category Expandability. Journal of Marketing. [online]. Available at http://www.yupingliu.com/files/papers/liu_yang_loyalty_program_competition.pdf[Accessed 25 October 2008].
Cite this Document:
Copy Bibliography Citation

Related Documents

Customer Loyalty Programs Are Customer
Words: 535 Length: 2 Document Type: Term Paper

Taken together, United Natural Foods is looking to create pull-based demand throughout its distribution channels and increase sales activity, leading to more profitability over the long-term. The focus on two of the three elements being oriented towards the consumer is deliberate to further pull products through distribution channels as well. If they are not used, should they be used? They are used as the analysis indicates, yet United Natural Foods could

Customer Loyalty Programs Loyalty Programs
Words: 658 Length: 2 Document Type: Essay

The high tech approach to managing new product introductions is to create an online password-protected website, often called a portal, and quickly upload and share all information about the new product introduction this way. This approach assumes that members of the sales force both for the company and for the direct sales channels will actually log in and use the data presented. It also assumes that all members of

Loyalty Programs in CRM for
Words: 643 Length: 2 Document Type: Term Paper

One excellent way to cut through the inflated metrics is to have customers actually define their level of sat5isfaction with the programs at an experiential level using SERVQUAL or any other number of research methodologies and programs (Norton, Pine, 2009). It is also critically important to have the metrics of participation coordinated with the financial metrics to ensure a high level of accountability is achieved and auditability of results

Promotional Activities for Enhancing Customer Loyalty for Grocery...
Words: 1097 Length: 4 Document Type: Methodology Chapter

Customer Loyalty Program 2 (Guideline and Interview) Interview Guide for Grocery Store Owners Promotional Activities, Customer Loyalty, POP, and Customer Retention Philosophies Relevance: In the contemporary world of marketing, there are numerous techniques that are used to promote new products and services, to entice customers, and to attain a high level of customer retention. Sales promotion techniques are a powerful way of getting the marketing message across to all marketing channels, and are

Impact of Reward Programs on Enhancing Customer Loyalty in Grocery...
Words: 662 Length: 2 Document Type: Literature Review Chapter

Customer Loyalty Program In today's highly competitive marketing climate, the only way to ensure revenue is to retain customers; move purchasers to customers, and enhance the customer satisfaction index for all clients. Customer loyalty and customer satisfaction are not synonymous, however, and they have differing meanings to different types of customers. Usually, customer satisfaction is a quantitative measurement of client attitudes about products, services, branding, or delivery. Customer loyalty is both

Customer Relationship Management CRM and Customer Loyalty
Words: 1740 Length: 6 Document Type: Dissertation

Customer relationship Management (CRM) and customer loyalty are successful marketing strategies in banking industry in Hong Kong The role of customer relationship management is significant to facilitate the customer satisfaction within several industries including banking. Integration of marketing strategy, customer relationship and customer satisfaction processes results into reduced cost and performance improvement. Business allows the optimal use of resources resulting into optimal performance; it is facilitated through several initiatives of customer

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now