The Effectiveness of UK brand loyalty programs as a base for development of

loyalty programs in Indian market – A Case Study of TESCO

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Abstract

The research work is conducted to find out the effectiveness of UK brand loyalty programs as a

base for development of loyalty programs in Indian market. The specific case that has been

selected for this research work is “TESCO”. In today’s competitive market, organizations are

always making different strategies to fit the customer needs and wants. In order to get close to

the customers, different organizations have designed loyalty programs which attracts the

consumers. In this regard, the case of TESCO that what loyalty programs they have developed to

fit the customer needs has been analyzed. For this purpose, there have been different objectives

which are designed by TESCO.

The specific market that is selected to be studied in this research is the brand loyalty

programs is the Indian market that what brand loyalty programs have TESCO developed among

the different customers in Indian market. There were many objectives of this research work like

to make analysis of the loyalty programs and find out their effectiveness, to understand the

effectiveness of brand loyalty programs of UK in establishing the brand loyalty among

consumers of India, to understand the ways which can help in management of brand loyalty

programs and to understand what are some of the strengths and weaknesses of the brand loyalty

programs of UK in Indian market. There were 4 independent variables to make the analysis

which were 1) brand image 2) brand experience 3) brand switching cost and 4) brand perceived

quality.

The research work is based on qualitative research technique. In order to collect the data

from the respondents, interviews have been selected as to tool for the research strategy and the

managers of some multinational companies were targeted. There interview was having a total of

10 questions. The study was cross-sectional in nature. With the help of SPSS which is a

statistical tool for data analysis, the gathered results were analyzed and interpreted. Through

different charts, graphs and tables the data were analyzed and then the analysis has been

presented in this study. The results of the study shows that there are some loyalty programs

which are working well and there are some which gets failed due to improper implementation of

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them. While there have been analyzed several benefits of the loyalty programs, there are some

factors due to which the loyalty program is not working effectively.

The analysis from the results that are gathered suggests that there is a huge difference in

the taste and preferences of the UK customers and the Indian customers, so the company needs

to understand them and then target the audience with some amendments in the strategy that

would reflect the demographics according to the place where they are targeting. The only aspect

through which the company can gain loyal customers is through providing them services which

they want and then they will get customers who will stick to their product. Lastly, in order to

gain customer loyalty, there should be different loyalty programs that should be offered by

different companies for their customers.

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Contents1.0 Chapter 1....................................................................................................................................1

1.1 Introduction:..........................................................................................................................11.1.1Background:.....................................................................................................................1

Chapter 2..........................................................................................................................................420 Research Aims and Objective.................................................................................................4

2.1 Identification of Problem:..................................................................................................42.2 Objectives of the Research:...............................................................................................42.3 Research Questions:..........................................................................................................42.4 Significance of the Study:..................................................................................................52.5 Thesis Structure................................................................................................................5

Chapter 3 - Literature Review.........................................................................................................73.1 Introduction............................................................................................................................73.2 Brand Loyalty......................................................................................................................163.3 Customer Satisfaction..........................................................................................................183.4 Brand Image.........................................................................................................................193.5 Brand Experience.................................................................................................................193.6 Brand perceived Quality......................................................................................................203.7 Brand switching cost and brand loyalty...............................................................................203.8 Customer product involvement and brand loyalty...............................................................213.9 Theories regarding brand loyalty.........................................................................................223.10 Consequences of brand loyalty..........................................................................................243.11 Conceptual Framework......................................................................................................25

Chapter 4 - Research Methodology................................................................................................274.1 Research Philosophy.......................................................................................................27

4.1.1. Interpretivist.................................................................................................................284.2 Research Approach.........................................................................................................284.3 Methodology...................................................................................................................284.4 Research Strategy............................................................................................................294.5 Research Design..............................................................................................................29

4.5.1 Nature of the Study.......................................................................................................304.5.2 Time Horizon................................................................................................................304.5.3 Researcher Interferences...............................................................................................30

4.6 Data Collection...............................................................................................................304.6.1 Data through Interviews..............................................................................................314.6.2Preliminary Data............................................................................................................31

4.7 Target Population............................................................................................................314.8 Sampling.........................................................................................................................32

4.9 Sample Selection.............................................................................................................324.10 Sampling Strategy.......................................................................................................32

4.10.1 Sampling Techniques..................................................................................................334.10.2Sample Size.................................................................................................................33

4.11 Data Analysis..............................................................................................................344.12 Data Analysis Tools.......................................................................................................344.12.1 Hypothesis Testing Model..........................................................................................35

4.13 Ethical Considerations.................................................................................................354.14 Limitations of the Research Methodology..................................................................36

Chapter 5 – Research Results........................................................................................................371. Data Analysis on Customer Questionnaire............................................................................372. Data Analysis on Manager Questionnaire.............................................................................47

Chapter 6 – Research Discussions.................................................................................................51Theme 1 – Areas where loyalty programs gets failed...............................................................51Theme 2 – Organizations ability to track the position in financial and operational performance...................................................................................................................................................51Theme 3 – Must provide novel technological features in business to attain maximum of consumers..................................................................................................................................52Theme 4 – Brand loyalty is an essential stage move.................................................................53Theme 5 – Brand loyalty programs are effective way to attain customer satisfaction..............53Theme 6 – Customers perception in developing markets..........................................................55

Response from customers..............................................................................................................56Theme 7 – There is increased switching cost to diverse brand loyalty programs.....................56Theme 8 – Loyalty is influenced with brand loyalty programs.................................................56Theme 9 – Shifting to brands impacts on monetary and non monetary rewards......................57Theme 10 – Loyalty programs impact on the retention of company.........................................58Theme 11- Switching cost increased brand monetary and non-monetary awards....................59Theme 12 – Loyalty programs impacts on retention of company.............................................60

Chapter 7 – Research Conclusion..................................................................................................62Chapter 8 – Recommendations......................................................................................................68

References......................................................................................................................................71

1.0 Chapter 1

1.1 Introduction:

1.1.1Background:

In today’s global realm, the market are becoming crowded and level of competition is

increasing for the similar products and services (Baldinger & Rubinson, 1996; Casaló, Flavián,

& Guinalíu, 2010; Chaudhuri & Holbrook, 2001). In this era of competition, most of the

organizations are striving for obtaining the competitive advantage over the others. In this race of

competition the most effective way of excellence is understanding the interest of the customers

and to protect their interest in the long run (Day, 1976; Delgado-Ballester & Luis Munuera-

Alemán, 2001; Erdoğmuş & Cicek, 2012).

The protection of long lasting interest of the potential customers helps in establishment

of long lasting and trustful relationship with the customers (Gounaris & Stathakopoulos, 2004;

He, Li, & Harris, 2012; Hur, Ahn, & Kim, 2011). It has been evinced by the previous research

that long term and trusting relationship with the customers not only helps in the increasing sales

and profits of the company, but it also assists in provision of good reputation to the

company(Laroche, Habibi, & Richard, 2013; Quester & Lin Lim, 2003). Therefore, the brand

loyalty has considered as a significant source of obtaining greater benefits in terms of

competitive advantage of the company.

The brand loyalty has received greater attention in research and practice and has widely been

studied by different researchers (Sahin, Zehir, & Kitapçı, 2011; Shang, Chen, & Liao, 2006;

Shugan, 2005; Yi & Jeon, 2003). Brand loyalty has considered mainly as the function of the

frequency with which the consumers purchase specific brands (Laroche et al., 2013; Lin, 2010;

Newman & Werbel, 1973; Odin, Odin, & Valette-Florence, 2001). The brands are considered as

the valuable assets of the organization and they can assist to enhance the financial growth of

company(Casaló et al., 2010; Chaudhuri & Holbrook, 2001; Erdoğmuş & Cicek, 2012).

Due to this wide importance of brands, different brand loyalty programs can be devised for

building loyalty of customers. The main aim of such loyalty programs is to enhance the level of

retention of customer and consequently to improve the level of profitability of the firms. In past

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most of the brand loyalty programs were aimed at extending the relationship with customers on

the basis of monetary rewards. These loyalty programs have gained huge importance in the

research and have been used for number of years.

It is evident that number of researchers have been conducted on investigating the

underlying importance of brand loyalty on the long term growth and profitability of the firms

(Jang, Olfman, Ko, Koh, & Kim, 2008; Laroche et al., 2013; Laroche, Habibi, Richard,

&Sankaranarayanan, 2012). Similarly, the research on the brand loyalty effectiveness has also

been evaluated in the literature (Jang et al., 2008).

The brand loyalty programs that were based on the reward system have largely been

criticized in the literature and it has been provided that these brand loyalty programs are not only

company centric but they also create only short term loyalty of the customers (Nam, Ekinci, &

Whyatt, 2011; Rundle-Thiele & Bennett, 2001; Sahin et al., 2011). Along with this, the

researchers, while analyzing the effectiveness of brand loyalty programs has provided that in

order to gain the greater advantage of customer loyalty, proper system of customer relationship

management should be maintained by the company (Erdoğmuş & Cicek, 2012; Jacoby &

Chestnut, 1978; Jacoby & Kyner, 1973). They have also suggested that companies should keep

record of the purchasing tracking data in order to establish and maintain healthy relationship with

their customers.

The maintenance of data and customer relationship system has made easy with the

availability of data mining software and companies can now successfully maintain the

purchasing history of their customers. Moreover, there is still criticism on such brand loyalty

programs and efforts for the better system has been made endlessly by the researchers and

practitioners (Casaló et al., 2010; Chaudhuri & Holbrook, 2001; Erdoğmuş & Cicek, 2012).

Furthermore, it is of greater importance to note that it is the need of today’s competitive

business market that companies need to innovate regularly and in doing so one of the important

method is to develop a new product with new features and better quality(Jacoby & Chestnut,

1978; Kressmann et al., 2006; Laroche et al., 2012). But it become difficult for the companies to

adjust their newly developed market in the diverse competitive market where number of options

of substitute products are available to the customers. In order to promote the new products and to

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increase the sales of existing products of the company it is necessary for the companies to use

extensive programs for protecting the interest of customers (Russell-Bennett, McColl-Kennedy,

& Coote, 2007; Sahin et al., 2011; Shang et al., 2006). It is done by adopting an effective brand

loyalty programs.

It is notable that most of the organizations in UK are adopting brand loyalty programs by

linking the new product with the existing product to which customers already have knowledge

and desire to buy. This method of establishing the brand loyalty is effective in attracting and

retaining the new customers. The brand loyalty programs are also aimed at investigating the

buying pattern of the consumers by maintain the record of the customers who visit their store

regularly and purchase their products(Laroche et al., 2013; Lin, 2010; Newman & Werbel, 1973;

Odin et al., 2001). After the identification of regular or frequent customers, next task is to devise

the policies for retaining those customers.

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Chapter 2

20 Research Aims and Objective

2.1 Identification of Problem:

Undoubtedly, the environment is really competitive for the today’s world organizations and

long term relationship with the customers is of substantial importance. In order to protect the

long term interest of customers, different brand loyalty programs are necessary to develop by the

companies. This can help them not only in retaining the customers but also helps in enhancing

the levels of profitability of the companies. The present research study has a vital aim of

analyzing the effectiveness of UK brand loyalty programs on the market of India. The research’s

purpose is to help the practitioners in identifying that whether brand loyalty programs that are

followed in UK are also applicable in India or not. It is note able that market features and needs

of customers in India are highly different from the UK. Therefore, the present research will help

in understanding the loyalty patterns of consumers in Indian market.

2.2 Objectives of the Research:

The present research study is conducted with the aim of achieving the following objectives:

To highlight the role of brand loyalty programs in establishing the loyalty among

consumers.

To understand the effectiveness of brand loyalty programs of UK in establishing the

brand loyalty among consumers of India.

To understand the ways which can help in management of brand loyalty programs.

To understand the strengths and weaknesses of the brand loyalty programs of UK in

market of India.

2.3 Research Questions:

The present research study is conducted to answer the following research questions:

How effective UK brand loyalty programs as a base for development of loyalty programs

in Indian market?

What is the principle of managing effective loyalty programs in India?

What would be the limitations of operating loyalty programs in Indian Market?

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2.4 Significance of the Study:

The present research is of greater significance both for practitioners and researchers in the field

of marketing in general and consumer’s behavior specifically. The study will contribute to the

extant literature as this aspect of brand loyalty has not studied much in the field of marketing.

The study will contribute in developing an understanding that how loyalty programs of

developed country and be applied in the developing country. The results of the study will be

greatly valued by the practitioners and help them in establishment of brand loyalty of Indian

customers. As Indian retail industry is quite different from the UK retail industry as there is huge

market growth opportunity in India but there is a need to develop strategies in order to cater to

customers’ needs. Moreover, the study will also help the policy makers in deciding that whether

they should apply the same brand loyalty programs in India or should they make some

modification to adjust them according to the needs of Indian market.

2.5 Thesis Structure

The study is comprised of five chapters.

First chapter is about background of the research and significance of the study. Along

with this, the research questions and objectives of the study has also been mentioned in

this chapter.

Second chapter pertains to the discussion of related work in the present area of research,

along with theoretical justifications of underlying construct. It highlights the association

of effectiveness of brand loyalty programs that have been devised and implemented in the

UK and the literature about the effectiveness of same brand loyalty programs in India are

also being highlighted in this section.

Third chapter is comprised of study's design including participants, procedure, measures

of variables and data analysis approach. The study is based on a survey design without

sufficient involvement of researcher.

In fourth chapter results of the study are detailed along with interpretations. Regression

based path analytic procedures are used to test the hypothesized relations. Moreover,

results of the correlation coefficient among the study variables are also presented in this

section.

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Final chapter consists of discussion of results by relating it with previous empirical

studies. Furthermore, practical and theoretical implications of the study are detailed along

with limitations and recommendations for upcoming research.

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Chapter 3

Literature Review

3.1 Introduction

Loyalty has been regarded by past literature to be the primary focus of organizations either in

form of brand or customer loyalty, In addition; it has been proposed that brand loyalty is among

the major factor leading towards brand equity resulting in profit for the organization (Kabiraj &

Shanmugan, 2011, pp.285 – 299). It has been elaborated by past studies that marketing has been

more concerned traditionally with the product and services physically linked aspects of price,

quality, function and availability (Mascarenhas et al., 2006, pp.397 – 405). However, it has not

remains the case at present, as the experience of the customer (Berry et al., 2002, pp.85 – 89 )

have been changing with time that is leading positively towards the impression that customer

obtain. However, taking away a brand product obtained through the all-inclusive offer made

through the brand has been evolved to be the customer and organizations primary focus (Klaus &

Maklan , 2007, pp.115 – 122).

Moreover, experience of a brand enhances the incorporation of the emotions along with

cognitive behavioral response of the customer that has been linked to the brand in any direct or

indirect manner (Brakus et al., 2009; Farris et al., 2010). It leads towards evoking the loyalty of

customer towards that brand. Moreover, it has been further elaborated by the past studies that the

brands that have been found to be capable enough to deliver an everlasting experience is

grasping both the physical and emotional aspects of offerings are made (Haeckel et al., 2003). It

could lead towards building up the loyalty of customers towards the brand (Pullman & Gross ,

2004; Deming, 2007).

Brand loyalty has been proposed by past researchers to be more than just extrinsic level

loyalty and has been referred to be true loyalty that has not been impacted by any of the factors

of price or suitability (Kumar & Advani , 2005); and involves the effective attachment to be

established through previous experiences (Lin, 2010; Iglesias et al., 2010, pp.570–82).

Furthermore, past study of Prahalad & Ramaswamy (2004) had advocated approach leading

towards enhancing the brand loyalty through creating the brand as an experience as being the key

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factor among the process of brand building (Payne et al., 2009, pp.379 – 389 ; Simmons, 2009,

pp.681 – 697 ). In this regard, customer brand loyalty has been elaborated to be the focus of

majority of organizations dealing in the maturity level of their business. Moreover, organizations

emphasis has been more towards enhancing the strategies to incorporate several business levels

to increase or sustain the loyal customer purchase (Hur et al., 2011).

However, adequate design and management is critical as it depicts about customers

reaction to a loyalty programs that ultimately helps in to determine success of program. Some of

the studies being assessed states about the impact of customer traits on loyalty programs that can

be crudely defined into organizational precise attitudinal and behavior traits versus

characteristics that undertake across companies. In some of the research work it is evident that a

learning organizational culture is aligned with needs of information technology employees as it

helps them to achieve job satisfaction and motivate them to learn and grow in business. In this

context numerous authors have stated that loyalty programs helps to manage consumer purchase

decision making process as it aids in attaining maximum of efficiency within the set frequency

among the light buyers. This is believed that loyalty programs provides an ability to eradicate

any kind of issues and it helps to encourage cross selling that aids in making analysis and it

impact on the perceived benefits. It requires adequate efforts to manage the perceived effort of

benefits that impacts on the likelihood of buyers for joining a particular program.

This type of benefits can be attained in terms of driven use of customers and several

advantages that helps in managing program to make suitable decisions so that customers can join

a program. Additional research has stated that customer according to generic traits such as social

demographical conditions that will help in making future orientation and undertake seeking and

price sensitivity. However, some of the received empirical support reflects that the major

attribute is to undertake the generalized nature of variables so that price sensitivity can receive

adequate support and loyalty programs can be rewarded. This will help to manage present

business behavior at similar point and such attributes that are found is more appealing to buyers

at certain point of time. It is evident to state that treating customers in a dynamic way will help in

making purchase decisions and accomplish moderate customer reaction that includes program

design elements. The Porter Five Forces Model has been utilized to determine the position of the

market before brand enters into a new market paradigm. The five forces of model i.e. supplier

threat, buyers bargaining power, new entrants’ rivalry, substitute products threat and

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competitiveness among companies are the key factors (Slater & Olson, 2002, pp.15–23).

However, the new entrants have been found to be the biggest considered threat in brand loyalty

paradigms. The new entrant organizations have been more focused towards reduction of the

brand switching cost. While, all the efforts has been on the focus to gain the customer loyalty

towards the brands that might lead towards the increment in the purchasing enhancement level

leading towards positive word-of-mouth (Stokburger-Sauer, 2010, pp.347-68). In doing so, the

past study has evolved the establishment along with implementation of extensive variety of

brand loyalty enhancement linked programs. Nevertheless, majority among which incorporate

targeting the customer functionally linked experience with brands along with economic benefits

offerings. Culture play an important role in retaining employees and assist companies to move

ahead in the industry with an organic culture that have an impact on employee motivation and

helps to make the employee retention activities more conducive. However, such brand loyalty

programs has been referred to be necessary but still cannot be the adequate condition to gain

customer loyalty (Gustafsson et al., 2005, pp.210-18).

Brand loyalty contributes to a major extent towards enhancement of the competitive advantage.

Higher level of brand loyalty of customers has been proposed to be an assent within itself leading

towards increment in the profitability, increased market share and brand equity in turn (Gounaris

& Stathakopoulos , 2004, p.283). Brand loyalty development has been regarded to be the primary

focus of strategic planning linked to marketing (Kotler, 1984). The brand loyalty has been

proposed to be measured through the repurchase program of the customers. It has been

elaborated by different past studies defining loyalty as being associated with the purchases of

products or the services being made by the customer on repetitive basis and has been utilized as

the means for measuring brand loyalty (Jeon, 2003, p. 229; Aaker, 2012).

Moreover, many past studies has elaborated loyalty concept that is lead by stochastic

approach and has been elaborated to explain the purchasing linked pattern of the customers in

this rapidly moving and changing consumer goods leading towards the fact that the customer

repurchase depends over the arbitrary basis. Thus, it leads towards the gravitation of brand

loyalty definition to some extent as proposed by Day (1969) to be purely based over that the

brand loyalty depends purely on the repurchase patterns. It has been further proposed by Jacoby

(1971) that repetitive purchase has not only been the arbitrary response of customer but also

strongly linked to other psychological and emotional factors associated with it. Overall, would

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like to state that if a business unit wants to enhance its performance it must develop both type of

culture i.e. dominant as well as participative as it will help to increase employees values, beliefs

and undertake a share behavior pattern. It is because as several researchers have stated that a

positive culture helps to increase performance in proportion to the strength of manifestation.

Thus, leading brand loyalty perspective to be viewed through different aspects and incorporating

the repurchase pattern to be linked to other effective emotional behaviors of customers towards a

brand (Kabiraj & Shanmugan, 2011). Moreover, the different loyalty programs have been

utilized incorporating different brand loyalty approaches elaborated by different past researches.

Moreover, these brand loyalty programs incorporates different aspects of the customer behavior

responses towards the marketing and advertisement associated activities, by the demographic

factors of the customer along with the value of the transactions being made, the purchases

frequencies as the most important factor (Kapferer, 2012); as elaborated in previous research

work of Jacoby & Chestnut (1978) regarding the linkage of the psychological factors with brand

loyalty. These psychological factors incorporate the attitudinal, cognitive along with behavioral

aspect leading towards building up of brand loyalty. However, Traylor (1983) had elaborated

brand loyalty to be the behavioral phenomena but commitment to brand has been more

associated to the emotional and psychological aspects.

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Figure 1: Customer retention model

(Source: Lin, 2010).

From the above depicted diagram, it can be stated that customers in an organization can

be retained through various attributes and a business need to give attention on them. As the

diagram reflects that retention of customers are influenced with five major attributes i.e. overall

satisfaction that depicts about the initial overall score about the brand, customer retention is

affected with brand strength i.e. emotional commitment to brand, the third attribute reflects about

the future intention that states about propensity to repurchase the share, fourth attribute states

about advocacy i.e. intention or propensity to recommend, the final aspect involves perceived

value for money which states what customers feel about the offered value for money.

Loyalty has been further elaborated by Oliver (1997) to be the commitment of the

customer towards a brand rather than the impact of the marketing that might led to switching of

brand. In addition, a past study has further elaborated the study of Dick and Basu held in 1994

regarding presenting different forms of loyalty and has been elaborated that the research had

evolved the two dimensions of emotional and psychological linked brand loyalty aspects, thus

elaborating consumer behavior to an accurate level (Worthington, 2009, p.21).

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The primary focus of the organizations has been elaborated to be associated with

enhancing the profitability and the associated brand awareness. Thus, in doing so past research

has proposed the private brand importance facilitating the retailers that tends to purchase the

private name with different leverages along with share associated with the private brand label

leading towards profitability from the brands (Ailawadi & Bari, 2000; Pepe et al., 2011, pp.27-

36). Moreover, the enhancing technological aspects have elaborated t knowledge and awareness

of the brands among consumers facilitated with more brand comparing means. A motivated

workforce might lead ahead in the business as well as performance of organization could also be

improved so that increased profitability and maximum of market share can be achieved. The

basic competency linked to the marketing has been to grasp the attention and gain loyalty of

consumers through utilizing the new technological aspects to spread the brand image (Lindstrom,

2004). In addition, this has been lead through the establishment of the fifth P in 4Ps basic

concepts of marketing leading towards Participation as an important aspect to gain customer

loyalty (Annon, 2014). Thus, in doing so social media has been elaborated by past study to be the

biggest contributor in enhancing and maintaining the image along with brand loyalty (Hur et al.,

2011).

Brand loyalty build up along with sustainability has been among the biggest concerns of the

marketer’s research from past few decades (Oliver, 1997). Yet, brand loyalty has been further

conceptualized to be the final association to the resonance of brand leading towards showcasing

the consumer relationship to the brand along with identifying the acceptance level of consumer

towards a brand (Keller, 2008). It has been further proposed by the past studies that brand loyalty

towards the consumers have been sustained by the marketers through incorporating different

factors of the elements of the brand, classical variables of the brand marketing mix and

ultimately the new modes of marketing forming the linkage with the customers through events or

one-to-one correspondence (Kotler & Keller, 2007; Keller, 2008).

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Figure 2: Factors of brand satisfaction

(Source: Anderson, Eugene & Sullivan, Mary 2008).

The diagram states about the several factors that leads to overall brand satisfaction in

customers mind. The drivers mainly reflects about two prime attributes i.e. functional brand and

experiential brand attributes. Customer’s mind is affected with several aspects like overall price

of product, interaction with organizations staff members, availability of goods and services,

consistency of products quality, the level brand accomplishes consumers needs, convenience of

locations and the way brand treats the customer. There are numerous factors that impacts on a

products or services satisfaction. With this it can be stated that every business unit should not

only sell a product but must develop strategies to accomplish needs of consumers in several

manner so that their long term loyalty can be acquired.

Brand loyalty has been elaborated to be the resultant of communication of the brand with

consumers in different means through utilizing time and resources of modern era along with

utilizing the traditional aspects to build up brand loyalty (Aaker, 1991; Jackson, 2011). As, it has

been proposed by a past study by Info-graphics that half number of users of social media like

Face book and Twitter have been found to be commenting to be more aware regarding the brands

and have been able to talk and choose appropriately through involvement of the social media

programs (Jackson, 2011). Business, thus, could enhance the promotion of the products

attributes along with services and facilitate the customers with direct linkage to the brand holders

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leading towards forming an enhancement in the brand loyalty through utilizing these media

linked forms (Weinverg, 2009; Zarella, 2010).

Figure 3: Loyalty programs in retail

(Source: Goldman, Sharon M. (2010)).

As the level of competition in retail industry is consistently rising and with these

corporations have introduced several loyalty programs so that customer satisfaction can be

attained. In this regard while developing the loyalty program organization undertakes activities

so that customers can be associated like giving best wishes to customers on special occasion

through social media channels. Moreover, retail unit’s gives prime attention on loyalty programs

as it assists retailers to keep a track record of their regular consumers as well as enhance

productivity of business. Most of the loyalty programs being carried out by include attributes like

discount and coupons to encourage buyers to purchase more of goods.

The enhancement of the brand loyalty has been elaborated to be more associated with the

brand commitment and affect factors along with loyalty. Different past brand management

associated studies have elaborated the significant relationship among the trust and commitment

and its impact along with the commitment (Carroll & Ahuvia, 2006, pp.79-89; Harris & Goode,

2004, pp.139-58). The primary focus of the organizations have been elaborated to be the

enhancement of the sales along with the revenues, and sustainability of the already existing

consumers along with grasping new consumers to enhance the purchase level. In doing so, the

primary focus elaborated by past literature has been over the brand awareness as the primary

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tactic to attract the customers. It has been regarded as the recognition of the brand in the market

and among the consumers (Hur et al., 2011, pp.1194-213).

Moreover, it has been evolved by the past study that the brand acceptance has been affected by

consumer’s own personality linked traits leading towards adoption of the activities linked to

enhanced communication among the brand and consumer resulting in increased brand loyalty

along with brand equity (Govers & Schoormans, 2005, pp. 189-97). Thus, it has been further

evolved that brands possess own personalities that leads the consumer to choose the best suited

and matched brand personalities to the personal traits of the customer.

Figure 4: Life cycle graph survey

(Source: North American Techno Graphics Life Cycle Survey (2013))

The above graph reflects about the lifecycle graph survey that basically states about the

active program members are ready to pay and share. In this respect it is evident from the graph

that maximum number of customers with the brand when customers regularly participate in most

of the loyalty programs as it shows around 64% of people like the brand when they really feel

associated with it. Moreover, it has also been found that also those customers who consistently

participate in loyalty programs prefers to buy all those goods that they have owned previously

and are even ready to pay more for goods and services that saves time and hassles in customers

life.

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A successful brand particularly knows the tactic to build the brand personality facilitating the

customer to accept the brand and get linked to it (Lin, 2010, pp.4-7). However, different loyalty

programs has been found to utilize the consumer linked information to enhance the brand image

and awareness of the personality linked factors of the brand include the preferences of

consumers, the purchasing pattern, survey replies. It has been proposed by study of Kotler &

Keller (2005) based on almost 20-80 principles that the customers with brand loyalty could result

in higher profitability. It has been elaborated in this study that the regular basis 20% customers

results in 80 % enhancement in the profitability. Furthermore, it has been elaborated by the past

study that loyal customers are less attracted by the low prices and tends to buy the brand more to

which they are loyal and above all loyal customers have been elaborated to be the source of the

spread of word – to- mouth for the brand (Reichheld & Sasser, 1990, pp.105-11); as elaborated

by North American Techno graphics life cycle survey above.

Moreover, the action and effective loyalty measures have been utilized by past study in order to

obtain valid measure for brand loyalty (Chaudhuri & Holbrook, 2001, pp. 81-93). Different past

researches have utilized different loyalty paradigms based on emotional and functional basis to

determine the brand loyalty. One such study has been conducted by (Matzler et al. (2006) who

had utilized the personality traits and the brand related affection and loyalty of brand and has

concluded that brand loyalty has been positively associated with the brand affection and

personality traits of the customer. Furthermore, it has been evolved that the marketing strategies

incorporating the advantages along with the economic benefits focuses towards the brand image

(Mongay, 2006) increment leads towards the enhancement of the brand loyalty programs as it

has been a hard factor to determine the behavior element associated with the customers. Thus,

the primary aim of the present study has been to determine effectiveness of foreign brand loyalty

programs in incorporating the brand loyalty programs in eastern market (Indian) for a well-

known brand (Tesco) to gain the economic benefits through opting different marketing

strategies.

3.2 Brand Loyalty

Nowadays in this era of technology and advanced processes, to make a strong position among

the competitors is very critical for the organizations, and for that purpose the marketers have

been working on strategies so that organization could develop brand loyalty of its customers

16

(MohdSuki 2013). A customer is said to be Brand loyal when he buys products made by same

manufacturer instead of others and also repeat this action (Kim, Morris, &Swait 2008). Brand

loyalty can be defined as a decision of a consumer, to repurchase a brand on regular basis

(Russell-Bennett, McColl-Kennedy, &Coote 2007). The consumer take the decision because he

had a good experience with the product and he feels like that this product is offering the right

features and the quality and he also finds the price to be reasonable too (Alexandris et al. 2008).

Another researcher defines brand loyalty as a favorable response of consumer that is followed by

repurchase of a particular brand consistently. Also the customer loyalty towards brands has been

in focus over the few years while planning and implementing strategies (Baron et al. 2009). In

1994 Dick and Basu defined brand loyalty as the degree of faithfulness of a customer’s towards a

specific brand that he continues to purchase the same brand without giving any concern to what

the competitors are offering.

As the time is passing, now organizations are taking the brand loyalty of customers as their asset.

As they can achieve their sales targets easily if they have loyal customers (Li &Petrick 2008). By

placing a positive image of a brand, an organization can retain its customers for a longer period

of time (Sahin, Zehir, &Kitapçı 2011). A consumer may re buy a product due to many reasons or

situational factors that include lack of alternatives available in the market, or the other products

available or costly, the consumer was in a hurry he chose a first product that was available, and

these would not be referred as loyalty (Lin 2010). Increased consumer spending pattern in

several countries have been precisely among young population that helps in rising the disposable

income that drives Indian organized retail sector growth and companies are witnessing a major

shift in customer preferences, lifestyles and buying behavior so it has emerged as an attractive

factor retailers to expand their market presence.

Tremendous growth is seen in the organized retail segment in which major domestic

players have stepped ahead in the retail market with long term commitment so that ambitious

plan can be developed to expand business operations across several cities and formats. Many of

the nations have been investing hugely in several areas that a growth is being observed in Indian

retail market and a range of transnational brands have entered in the market in order to develop a

retail chain with bigger multinational corporations. The retail business unit is highly fragmented

and companies possess outlets at several locations so the growth potential is very much high to

increase business due to globalization with increased economic growth and enhanced lifestyle.

17

The potential for growth of companies are strong enough but there barrier as well that could

lower down pace of growth for new entrants and with rigid regulations business can acquire

increased personnel cost with basic attention on infrastructure and highly competitive domestic

retail groups that needs to manage business challenges. True loyalty exists when a consumer has

high regard of the brand which he expresses through his repurchase decision. The organizations

nowadays realize the importance of their customers and they know that a satisfied customer is

the key to success in today’s’ competitive era (Dastan&Gecti 2014). And in this they would be

able to maintain their position (Coote 2007) and also cut the extra costs that will be used on

marketing activities (Prasad & Mishra, 2014), spread positive word of mouth (MohdSuki 2013),

and can also gain a competitive edge (Zehir 2011).

The past researches have emphasized greatly on how important brand loyalty is for

organizations. And also found the factors that are important for maintaining brand loyalty. Brand

loyalty is a wider term and it is influenced by many factors described by past researches, but in

this study the factors influencing brand loyalty are limited to three to four factors. Because as the

size of independent variable increases the questionnaire size also increases, and respondents

hesitate to fill it.

3.3 Customer Satisfaction

Customer satisfaction is an important and critical aspect which needs the attention of the

organizations (Candan, Ünal, &Erciş 2013). This is due to the fact that now organizations realize

the importance of their customers and they know that a satisfied customer is the key to

(Anderson & Sullivan 2008) his purchase expectation and post purchase experience matches

In 2004, PauravShukla defined customer’s satisfaction as an inner response to his constructive

assessment of the outcome of buying in accordance to his expectations about the product. The

past literature has considered it to be a measure, that whether the purchased product has met the

expectations of the customers or not (Rust & Zahorik 2008).

Another researcher defined Customer satisfaction as the number of customers, whose expected

outcomes of the product and the actual outcomes are the same (Anderson & Sullivan 2008).

Brand performance is a standard to compare with the customer expectation (Hennig‐Thurau &

Klee 2007). A lot of studies have been found in the literature according to which the customer

18

satisfaction has a positive influence on brand loyalty. The more the customer will be satisfied

with the performance of the brand the more chances are that they will buy the same brand in

future (Churchill Jr & Surprenant 2009). Past literature concluded that high satisfaction level is

intensely related with the increase brand loyalty ( Kuo, Wu, & Deng 2009).

3.4 Brand Image

Researchers have defined brand image as the perceptions about a particular brand in the minds of

the consumer (Dennis, King, & Martenson 2007). The consumers often link the brand with

tangible and intangible features, and it can also be taken as feelings and thoughts about the

product in customers mind. These associations and linkages thus help consumer in buying

decision making process (Cretu & Brodie 2007).

Another researcher has defined brand image as a way of differentiating the brand from the other

brands in order to sustain the competition, the customer is provided extreme care and assistances

that the other brands aren’t offering (Van Reijmersdal, Neijens, & Smit 2007). Brand image tells

the customer’s knowledge about the brand.

The brand image is also refers about the uniqueness of brand. Past researchers were of the view

that brand image plays a huge role in consumer buying decision and also it is an important factor

that drive consumer towards brand loyalty (Small, Melewar, Hamzaoui Essoussi, & Merunka

2007). Moreover they have described that the image of the brand has an influence on the attitude

and behavior of consumer which ultimately lead to brand loyalty.

3.5 Brand Experience

A brand experience can be defined as an action of a brand that is perceived by the customers

(Brakus, Schmitt, & Zarantonello 2009). The experience customer developed after using the

product. A renowned researcher considered Brand experience to be a response of a consumer

after the customer’s encounter with the product after using it (Allen 2007).

Another researcher take Product experience as a feeling developed as the result of physical

contact with the product (Mosley 2007). Many researchers were of the view that brand

experience and brand loyalty are strongly correlated and it plays a very vital role in enhancing

brand loyalty among customers (Skard, Nysveen, & Pedersen 2011).

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3.6 Brand perceived Quality

Many researchers have taken the perceived quality of the brand as an important factor to build

brand loyalty (Ramaseshan & Tsao 2007). The perceived quality can be defined as the opinion of

consumer about the ability of the brand to fulfill his expectations (Bharadwaj, Tuli, & Bonfrer

2011). The expectations develop from the company’s image in the market, and its experience

with the other products of the company or also through word of mouth of peers (Bharadwaj et al.

2011).

Another researcher has defined perceived quality as the perception of customer about the quality

of the product as compared to its competitors (Chu & Kamal 2008). The previous researchers

were of the view that when the perceived quality of the product would be favorable, then

consumers are thought to be Brand loyal (Brakus et al. 2009). Moreover many researchers

believe that if the consumers perceive that the brand is of high quality then, they will most

probably develop brand loyalty (Hennig‐Thurau & Klee 2007).

3.7 Brand switching cost and brand loyalty

Brand switching cost is one of the most discussed contemporary issues in marketing in attempt to

build brand loyalty. Brand switching costs have been theoretically shown to have positive effects

over prices, profits, and have been linked to a variety of competitive phenomena such as price

wars and deep discounts offered by firms to attract new customers (Beggs and Klemperer 1992;

Farrell and Shapiro 1988; Klemperer 1987, 1989, 1995; Nilssen 1992; Schmalensee 1974;

Schmalensee and Willig 1986).

The marketing literature identifies a specific symptom of switching cost, termed “brand loyalty.”

Researchers define brand loyalty as the minimum price differential needed before consumers

who prefer one brand switch to some competing brand (Raju et al. 1990; Pessemier 1959). Brand

loyalty may be due to real switching costs, decision biases or uncertainty in the quality of other

brands. Much of this broad literature emphasizes the recognition of loyalty by individual

behaviors e.g., repeat purchase or expressed preferences in. Our paper infers switching cost from

aggregated individual behaviors.

In many markets, consumers countenance non-negligible costs of switching between different

brands of products or services. There are at least three types of switching costs: transaction,

20

learning, and contractual costs. Transaction costs include such costs that occurred to start a new

relationship with a provider and sometimes include the costs necessary to finish an accessible

relationship. Learning costs represents the effort required by the customer to reach the same level

of comfort or facility with a new product as they had for an old product. Contractual switching

costs are costs created by planned actions of firms and are very common in the marketplace. A

firm should create switching costs by providing unique and valuable solutions for customers'

problems or rewarding loyalty directly through specific incentives and advantages.

Another researcher has defined brand- switching cost as a main cause of brand loyalty (Bumham,

Frels and Mahajam 2003). In addition, increase in brand switching cost leads to increase in risk

and burden of the consumers as well as the high craving on the service provider (Jones et al.

2000; Morgan and Hunt 1994). There are a number of benefits for a long term relationships

between a company and the customers, such benefits include fellowship, personal recognition,

reduction in anxiety and credit, discount and time-saving and customer management (Berry,

1995; Peterson 1995).

3.8 Customer product involvement and brand loyalty

The wider body of literature suggests that customer product involvement, mostly high product

involvement is a critical antecedent to brand loyalty. Traylor and Martin argue that how

consumer product involvements are also significant. Previous researchers hypothesized that high

involvement would lead to high brand loyalty and vice versa but their research study showed that

low involvement products could have high brand loyalty too. Further analysis of previous studies

show support for customer product as an antecedent to brand loyalty but still the nature and

scope of this relationship remain tentative. Mostly researchers are agreeing on a point that

customer product involvement interacts with brand loyalty. However, they also found that

repurchase behavior for a high involvement product was an indicator of brand loyalty but

repurchase for a low involvement products was simply ordinary purchase behavior.

Some researcher elaborated that high involvement does not necessarily translate to brand loyalty

because individual characteristics and social situational factors moderate the effects of customer

product involvement (Iwasaki and Havitz 1998).

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Brand loyalty is important because it is a key driver of repeat purchase behavior and somewhat

unsurprisingly, repeat purchase generates long-term value (Bennet& Rundle-Thiele, 2002;

Caudhuri 1995). It is difficult and expensive to gain new customers, thus brand loyal customers

hold consummate appeal.

Many previous researchers found the link between customer product involvement and brand

loyalty extends to aspects including risk, product class and the perceived differences between

brands. The general convention in the previous studies suggests that customer involvement in a

product class in directly related to brand loyalty. Consumers who are becoming more familiar

with the particular brand are also committed and hence more loyal to the brand.

3.9 Theories regarding brand loyalty

Previous researchers explained brand loyalty as consumer bind themselves to products or

services because of deep-seated commitments. To exemplify this point, they rendered

dissimilarity between repeat purchase and actual brand loyalty. Some researchers asserted in

their published research that repeat purchase behavior is the actual re-buying of a brand whereas

loyalty includes antecedents or a reason occurring before the behavior (Bloemer and Kasper).

Further, they delineate brand loyalty into spurious and true loyalty. Spurious loyalty exhibits the

following attributes:

Biased

Behavioral response

Expressed over time

By some decision-making unit, with respect to one or more alternate brands

A function of inertia

True brand loyalty includes the above points, but replaces inertia with a psychological process

resulting in brand loyalty (Ref: Journal of Economic Psychology, Volume 16, Issue 2, July

1995).Confirmation bias contaminates the thinking of brand preferences of customers. Many

people get attachment with some brand and they repurchase thing of that brand, they actually

become biased regarding the brand. However, a strong brand position means the brand has a

22

unique, trustworthy, sustainable, and appreciated place in the customer’s mind. It revolves

around a benefit that helps your product or service stand apart from the competition (Scott Davis,

Brand Asset Management).

Many researchers asserted that brand loyalty had relationship with strong brand positioning

which mean creating and managing a brand’s unique, credible, sustainable and value place in the

customer’s minds. Previous researchers suggested some basic rules that should be kept in mind

to manage and enhance brand loyalty like the one it follows:

Executive should treat customers with respect in the sense that the interaction between

the firm and its personnel, and should avoid , on the other hand, should be positive and

any rude, cold, or unsympathetic behavior

The firm must stay close to the customers. For that firm uses focus groups to see real

customers' problems, account managers should meet with customers to find out their

concerns, and customer contact must be encouraged so that signals are sending to both

the organization and the customers that the latter is valued.

Customers must be provided with extra unexpected services so as their behavior be

changed from brand tolerance and acceptance to brand enthusiasm.

In order to build brand loyalty executive should conduct regular, timely, responsive, and

integrated into day-to-day management surveys of customer satisfaction / dissatisfaction.

Executive should try to understand customers' feelings, identify the reasons of overall

satisfaction change, and adjust products and services.

This literature has been chosen for research as it provides immense of information on the

aspects of brand loyalty and its association with customer satisfaction. In the current competitive

business environment organizations need to retain its loyal customer base, hence it is evident for

businesses to develop prominent strategies so that long term benefits can be acquired. The

chosen topic provides an in depth understanding about numerous attributes of brand loyalty and

its importance associated with research topic.

As the main motive of research is to understand the aspects of brand loyalty programs in

developing long term relations with customers. In this regard the present literature will mainly

help in understanding the significance and attributes of brand loyalty and various authors review

is also being discussed over here that helps to understand UK corporations brand loyalty

23

programs. The chosen literature provides an in depth understanding about various aspects of

brand loyalty programs being accomplished in UK based corporations and the way it can be

incorporated by Indian multi nationals as well. Hence, would like to state that this literature will

offer detailed insight in the chosen area of research and accomplishment of potential research.

3.10 Consequences of brand loyalty

According to previous researchers, brand loyalty might not always be good thing in case of high-

severity recalls; consumers with a high level of brand loyalty may actually responded more than

those with less loyalty did. These findings come from a study by a team of researches that

included Raj Grewal, Irving & Irene Brand professor of marketing at the Penn state Slam of

Business. Brand loyalty is such a phenomena in which Consumer are attached to brand from

close relationship with them and have a general desire to maintain this close relationship. The

prevailing wisdom is that brand loyalty will help brand retain their standing among consumers in

the case of negative attention like a product recall.

In cases of high-severity recalls — recalls of products that could cause serious injury or death —

Grewal and his colleagues found that brand commitment actually acted as a liability.

“Committed consumers may come to expect more from the brand they like and thus feel

especially disappointed when the brand gets recalled,” the researchers wrote. “Indeed, committed

consumers might view a product recall as a ‘breach of contract,’ and hence might exhibit more

negative responses following a recall announcement than their less committed counterparts.” On

the other hand, in cases of low-severity or ambiguous product recalls, Grewal and his colleagues

confirm that brand commitment can help mitigate fallout. Previous research shows that

consumers tend to resist negative information regarding brands they love, so brand loyalty can be

helpful in the case of recalls that have a lower possibility of negative effects. Initiated empirical

research looked in detail at consumers’ ability to love products and consumption activities.

Ahuvia (1993, 2005a, 2005b). Many researchers found that many consumers do have intense

emotional attachments to some brand which he defined broadly as anything other than another

person (e.g., playing a musical instrument, a pet, one’s computer, a painting, an old car that had

been a “traveling companion,” books, the ocean). Many researchers compared consumers’

24

mental model of interpersonal love (i.e., the love prototype) with their descriptions of object love

and found a generally good fit.

Previous researchers work suggests that there are fundamental similarities between interpersonal

attachment and brand loyalty in consumer contexts. This thinking has received further support

from the recent work of Whang, Sahourym and Zhang (2004) and Thomson, MacInnis and Park

(2005).

3.11 Conceptual Framework

The above mentioned conceptual framework is consisted of four independent variables named as

brand image, brand experience, brand switching cost and brand perceived quality and one

dependent variable named as brand loyalty. This conceptual framework has been developed

under the guiding light of literature that have clear indications that all of the prescribed

independent variables are related with brand loyalty but they have not been tested in a single

model before (Li, 2009). Brand image is quite vital to make a customer loyal with a brand as

more the image will be good greater are the chances that customer will stay at the respective

brand. So the relationship between brand image and loyalty is worth to be tested.

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The four attributes discussed over here are core attributes that incorporates with research

title, firstly brand image as discussed above this basically will assist the retail brand to

differentiate it from others and manage the intense level of competition and assistance that the

other brands are providing. It is evident to state that brand loyalty is aligned with brand image

that persuades about consumers knowledge and uniqueness of product. This aspect plays an

important role in developing a close relation with customers and brand.

The second attribute i.e. brand experience is aspect which states about action of brand

and is being perceived by consumers as an important element in making their purchase decision.

A customer acquires experience after acquisition of a product or service and in context to present

research it can be stated that brand loyalty and experience are closely related to each other and

play a very important role in developing brand among customers. The other two attributes being

in this framework are brand switching cost and brand perceived quality that basically helps in

formation of a strong bond between buyers and product.

The four aspects discussed over here incorporates entire research framework that states

about various factors associated with brand loyalty and the crucial aspects on which retailers

need to give attention. However, an important point that retail corporations need to manage is the

uniqueness of brand, as from the literature it is very much clear that brand image has a strong

influence on the behavior and attitude of customers that ultimately helps in development of

product. So it can be stated that these four aspects are the core attributes that integrates research

framework to achieve the desired results.

Brand experience has also signaled as one of the most important determinant of brand

loyalty in past. A better and longer experience with a single brand develops a strong association

of consumer and respective brand. Such association is then resulted into brand loyalty so it is

vital to check the impact of brand experience on brand loyalty. Brand perceived quality is must

to be there in consumer’s mind because it is the only way through which a brand can cause a

positive perception in front of customer (Sahin, 2011). A good quality can assure a long-term

relationship and loyalty too which is going to be examined in the above mentioned conceptual

framework. Brand switching cost is often referred by the researchers as the major reason for a

customer to be loyal. Costs which can be emerged due to shuffling of brand can dent the

26

customer’s wish to choose another brand (Falaki, 2010). That’s why it’s important to check the

influence of brand switching cost on brand loyalty.

4.0 Research MethodologyThe primary focus of this chapter is to present a clear road map regarding the way present

research has been conducted. This chapter incorporates the approach of research adopted, the

research design, research strategy, techniques and methods the data has been collected; along

with the details regarding the target population, sample population that has been chosen.

Furthermore, the details regarding the adopted interviews conducted, unit analysis details along

with the ethical considerations has been discussed in other to ensure that no biasness has been

done in the present research. Moreover, the data analysis describing the details of the statistical

tools and the tests utilized along with reliability and scale validity assurance concludes the

chapter.

4.1 Research Philosophy

Research philosophy facilitates with the guidance to the researcher regarding the methods the

data should be gathered and analyzed. Research philosophy assists towards development of the

research paradigms regarding the research nature and road map regarding the way research

should be conducted. The primary focus of research paradigms has been found to be in the

process incorporating different beliefs along with supportive theories in order to obtain the

linkage among the research questions and the aims of research. Thus, research paradigm has not

been known as methodology but more as the thinking process that facilitates researcher

regarding the ways research should be conducted. Different research philosophies have been

classified by past studies as positivist, social constructivist, pragmatic and participator.

The present study aims to determine the effectiveness of UK loyalty brand programs for the

development of the brand loyalty programs in Indian market for company Tesco to sustain in

Indian market. Thus, for this purpose the qualitative research methods have been utilized. Thus,

the present study falls under interpretivist research paradigms incorporating qualitative research

nature.

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4.1.1. Interpretivist

The interpretivist research paradigm has been found to be best for the present research, as the

present study intends to utilize the qualitative research approaches to meet the objectives of

brand loyalty programs effectiveness evaluation in the Indian market. Thus, the interpretivist

research philosophy has been regarded as the research granting permission to the researcher to

utilize qualitative approach in order to collect the data needed to obtain results. The interpretive

research paradigm has been utilized in order to ensure that the problem has been answered

through the utilization of naturalistic methods including the interviews or one-to-one interaction

to obtain results.

4.2 Research Approach

The research approach facilitates with the key essence of the study. The research approach

provides an overall image regarding the pattern of the research being conducted. The research

approaches basically involve two types of the research approaches named as the deductive and

the inductive approach. The present study has been found to be based on induction of the new

ideas with the support of the past literature data and based on it the data has been collected

through utilizing the qualitative nature of data collection techniques. Thus, the primary focus of

present study has been the induction of new concepts and ideas in support of the past results

regarding brand loyalty programs in Indian market. The present study follows the bottom-up

approach that ensures that the present research tends to follow inductive research approach.

4.3 Methodology

The methodology adopted in the present study has been the qualitative research. The major focus

of the present study has been to ensure that whether the foreign (UK) brand loyalty programs be

effective towards developing the brand loyalty program in Indian market or not. The present

study aims to explore a new paradigm through incorporating a direct interaction with the

involved company’s managers to find the solution of the present study. Thus, the present study

tends to follow the exploratory approach that support methodology adopted in present study to be

qualitative in nature.

4.4 Research Strategy

The research strategy refers to the overall scheme regarding the way preferred by the researcher

to collect the data. The basically utilized research strategies are as follow:

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Experiment

Interviews

Questionnaire Survey

Ethnography

Case study

Grounded theory

The present study follows a qualitative approach, so the research strategy adopted in the present

study for collection of data has been the interviews. An in depth interviews has been conducted

with the managers of the Indian companies in order to obtain a deep insight into the details

regarding the brand loyalty programs being adopted and preferred to be adopted among Indian

market. In doing so, 10 open and close ended questions based interview has been conducted

among the managers of companies to obtain the respondent’s opinions regarding the issue under

consideration. Moreover, the present study has utilized the case study qualitative study approach

as the present study focuses on determining the UK brand loyalty programs efficiency in order to

form the basis for the development of the Indian market brand loyalty program for Tesco

company.

4.5 Research Design

The research design has been regarded as the systematic plan that links research objectives to the

research questions to obtain valid results. The research design incorporates nature of study along

with the time perspective in which the study has been conducted.

4.5.1 Nature of the Study

The present study has been adopting qualitative research methodology and has adopted

qualitative interview method to collect data. The data was primary in nature with structured open

ended questions were formulated before the interviews were conducted with managers of

companies of India. The research designs could be of three types, descriptive, exploratory and

explanatory.

The present study is exploratory in nature.

The exploratory study is conducted in order to answer the problem that had not been defined and

clearly resolved. Exploratory research is made to be done in order to understand the unresolved

29

issues thoroughly and incorporate the data selection through qualitative techniques through being

directly involved within the situation. Thus, the present study has been conducted to investigate

the effectiveness extent to which the UK brand loyalty programs could play a vital role in

shaping the brand loyalty programs in Indian market for the UK brand of Tesco. So, the

exploratory research has been the best suited for the best study.

4.5.2 Time Horizon

There are two types of time horizons in which the research study could be conducted which are:

Longitudinal

Cross-sectional

The data has been collected through interviewing the mangers of Indian companies at one span

of time. Thus, the present study has been regarded as of cross sectional in nature.

4.5.3 Researcher Interferences

The present study has adopted proper method of interviews conducted with the permission of the

company managers and higher officials through proper recording and notes taken during

interviews. Thus, the present study has been ensured to present the unbiased data as well as

incorporated minimum researcher interference level.

4.6 Data Collection

The present study is qualitative in nature. So, the qualitative method of data collection through

interview survey has been conducted. The managers of companies of India have been

interviewed through properly formulated 10 open and close ended questions. This has been done

in order to ensure that there is no issues regarding the validity and reliability of collected data

could arise. The questions have been designed in order to explore the topic, along with the

respondent’s opinions to obtain a clear image of the situation. This has been done because the

question formulation has been found to be the most important in qualitative research. Two types

of data have been collected in the present research that includes are the primary data and

preliminary data.

30

4.6.1 Data through Interviews

The data collected through the interviews has been the primary data for the present study. The

data has been collected directly through open ended questions asked from the managers of the

companies of India in order to obtain the clear image for the reasons that might occur as

offensive or in the favor of the foreign brand loyalty programs that might be helpful for the

foreign Tesco brand to develop a loyalty program in Indian market, as the consumption patterns

differ in India and UK market.

4.6.2Preliminary Data

The preliminary data has been collected in the form of literature review. The preliminary data

has been regarded as the data that already exists. This data has been utilized in order to get a

review of the brand loyalty along with the brand loyalty programs associated with past studies, in

order to obtain a pattern that could be observed within Indian market for Tesco before starting its

business in it. The primary focus of present research had been to carefully select the past data

and sort it out to utilize only the relevant data. This has been done in order to support the

arguments of the present study.

4.7 Target Population

The primary aim of the present research has been to determine the efficacy of the programs of

UK brand loyalty leading towards the development of such brand loyalty programs in India.

India has been considered as one of the flourishing economies with large target market

particularly associated with the retail sector. In past few years India has been found to be

working for the corporate world development within its big cities like Mumbai, Delhi,

Hyderabad etc. India has been found to be opening its gates for foreign brands through pulling

up the restriction of association with a national company to sustain position in India. However,

the companies tend to focus on entering India through alliance with national company as Tesco

planning to do with Tetra Group (Part of Tata Industries). This has been due to the mixed target

customers belonging to different religions and sectors. Thus, the major target population of the

present study has been the employees of retail companies. These employees could be of different

cultures possessing different experiences and creativity.

31

4.8 Sampling

It has been not possible to interview all the employees of all the Indian companies at a time. So,

the sampling techniques have been utilized to choose a portion of the target population that could

represent the whole population views.

4.9 Sample Selection

The number of retail companies working in India is huge with large number of employees that

have been hard to be interviewed. Thus, the present research in order to determine the brand

loyalty programs effectiveness for Indian market tends to target the managers of five of the retail

companies of India. Instead of conducting interviews for whole of the employees the managers

of the retail sector companies of India have been selected in order to obtain the valid data. This

has been due to the fact that the brand loyalty programs have been formed and sustained through

higher authorities rather than the employees. Thus, to obtain a complete overview of the Indian

market brand loyalty paradigms, the employee target population had been cut off to sample of

managers of the companies.

4.10 Sampling Strategy

Sampling has been referred as the process of reducing the target population for data collection.

Different strategies of sampling could be adopted based on the target population being chosen.

The sampling strategy utilized in present study has been to target the managers that have been

found to be involved in determination and experience with formulation of the brand loyalty

programs, along with foreign market experience particularly in grocery sector. This has been

because of the fact that the present study has been focusing primarily on the Tesco and the Indian

retail sector particularly the grocery business chain instead of any other market; as Tesco tends to

start the grocery chain in India through collaboration with Tata Group. Thus, the sampling

strategy has been simple for present study to list down the top managers involved in brand

loyalty programs sustainability along with holding high level global market level experience.

4.10.1 Sampling Techniques

It has been impossible to collect data from all of the population, so sample of the population have

been selected through different sampling technique that enables researcher the appropriate

sample collection through population. There has been two primary types of the sampling

techniques out of which the most prominent are:

32

Probability sampling

Non-probability sampling

Stratified

Cluster sampling techniques

The non-probability sampling technique has been adopted as it had been hard for all the

respondents to be provided an equal chance for interviews.

There are different techniques incorporated within the ransom sampling that includes:

Convenience sampling

Quota sampling

Snowball sampling

Judgmental or purposive sampling

The Indian companies being big groups of retail sector comprises of large number of managers.

Thus, the sampling technique of convenience and snowball sampling technique have been

incorporated in order to obtain the easy access to the managers for data collection through

interviews.

4.10.2Sample Size

It has been considered the most difficult task in order to obtain the exact sample size in case of

any research conducted. Different sample sizes have been declared by different pas studies to be

best suited for qualitative research. It has been suggested by Guest et al. in 2006 that for

qualitative study, the best maximum sample is fifteen (Klenke, 2008). However, Creswell (1998)

had declared 20-30 and Morse (1994) declared 30 – 50 interviews to be best suited sample size

of the qualitative study. Moreover, Thomson et al. (2005) after his reviewing to almost fifty

articles had suggested the sample size of qualitative research study could be from five to almost

350.

Thus, on the basis of the past researches the total selected data sample had been chosen to be 100

managers from the top five retail companies of India in order to obtain the relevant data for the

effectiveness of the UK loyalty brand programs to be utilized for developing brand loyalty

programs in India.

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4.11 Data Analysis

The data had been collected through qualitative interview data collection technique. The content

analysis technique has been utilized to analyze the data. This has been due to the qualitative

research approach that has been utilized in the present study and because of it the mode will be

used.

4.12 Data Analysis Tools

Different data analysis tools have been utilized in order to analyze the data collected in the

present study. These data analysis tools include:

Data has been ensured to be analyzed through usage of spreadsheets.

Moreover, the graphs along with the proper formulation of the data obtained through

interviews has been utilized

The technique of frequency distribution has been utilized

The mean along with the standard deviation has been measured in order to analyze

the data.

The information has been further gathered through the background details and concepts

utilization to get a deep insight into the brand loyalty programs position in Indian market, as the

present study incorporates the exploratory research methodology. The data has been further

analyzed through representation in the form of the pie charts along with the bar charts. The slices

of pie charts have been found to be the representatives of the percentages regarding the responses

that had been obtained through the interviews of the managers.

4.12.1 Hypothesis Testing Model

There have been different models that have been utilized in different research studies to test the

hypothesis. In hypothesis testing studies the primary focus has been found to be investigation of

the behavior of the particular situation. In hypothesis testing the primary focus has been to

investigate that whether the hypothesis developed in true or either it is false. In the present

exploratory study, the hypothesis has been analyzed to be true if the exploratory research moves

in the favor of developed alternative hypothesis. Thus, in the present study one of the hypothesis

has been found to be true while other had been found to be false.

34

4.13 Ethical Considerations

In order to sustain the ethical considerations, the present exploratory study has been focused to

follow all the ethical rules in terms of ensuring that any ambiguity and vague notion could not

reside within the research conducted along with the data collected through different adopted

techniques. The major ethical considerations that have been ensured during the collection of the

data are:

All the participants (managers) participation was voluntary and no respondent were

forced to participate in the study.

All the respondents were communicated regarding the study and the primary reason

behind the study before conducting the interviews.

Proper permission in the form of written application had been ensured from higher

authorities of the companies before conducting interviews.

All the interviews were recorded after grant of the permission from the respondents.

The data collected from the managers were assured of appropriate usage instead of being

involved in any false play.

All the respondents had been ensured of the privacy of their personal profiles including

the details of their names, age and position.

The comparison of the brands had been circumvented in order to get any cultural issue

arise.

Proper citations along with references of the quotes or the past study utilized in the study

have been ensured.

The priority of the research has been to ensure the respect of the work and the comments

of the participants.

The data collection instrument utilized has been ensured to be free of any kind of

affronted content.

4.14 Limitations of the Research Methodology

Some of the limitations occur in the present research due to the limitation of the chosen

qualitative methodology which is as follow:

35

The limited data had been collected as the sample size of only 100 managers had been

chosen due to the qualitative interview technique utilization, as it has been hard to

conduct interview with large number of managers.

The qualitative research being focused on only the brand loyalty programs of UK and for

the Tesco Company in India market had limited the scope of the data collection and the

techniques utilized.

Moreover, the content analysis - data analysis technique has been found to be limiting the

exposure of the data as the other statistical tests if incorporated could have resulted in

much better data analysis.

Moreover, the convenience sampling technique has been utilized that had limited the

access to the top managers that might be hard to approach and could contain the

maximum quality information.

Chapter 5 – Research Results

1. Data Analysis on Customer Questionnaire

1.1 Background of Respondents:

36

Age GroupFrequency Percent Valid Percent Cumulative Percent

Valid Less than 20 years 24 24.0 24.0 24.020-30 years 33 33.0 33.0 57.030-40 years 34 34.0 34.0 91.0Above 40 years 9 9.0 9.0 100.0Total 100 100.0 100.0

Occupation_Frequency Percent Valid Percent Cumulative Percent

Valid Businessman/women 14 14.0 14.0 14.0Service class 28 28.0 28.0 42.0Student 12 12.0 12.0 54.0Retired 13 13.0 13.0 67.0Housewife 13 13.0 13.0 80.0Professional 15 15.0 15.0 95.0Other 5 5.0 5.0 100.0Total 100 100.0 100.0

37

38

1.2 Descriptive Statistics:

Descriptive Statistics

N Minimum Maximum MeanStd.

Deviation

I_believe_that_relative_attractiveness_of_the_reward_programs_of

100 1.00 5.00 3.7800 1.18560

I_think_that_there_is_no_switching_cost_to_different_brand_loyal

100 1.00 5.00 3.6700 1.35628

My_loyalty_to_the_brand_is_affected_with_loyalty_programs

100 1.00 5.00 3.5500 1.38078

I_do_not_switch_the_brand_because_of_additional_monetarynonmon

100 1.00 5.00 3.0500 1.47966

I_purchase_products_of_a_brand_regularly_and_I_have_no_other_opt

100 1.00 5.00 2.4500 1.31330

I_do_not_stick_only_on_a_particular_brand_and_I_shift_one_brand_

100 1.00 5.00 3.4200 1.41550

I_consider_this_brand_as_my_first_choice_in_the_category_

100 1.00 5.00 3.6700 1.34130

I_say_positive_things_about_the_brand_to_people

100 1.00 5.00 3.3300 1.49108

I_have_or_would_recommend_this_brand_to_someone_who_seeks_my_adv

100 1.00 5.00 3.5100 1.43896

Valid N (listwise) 100

1.3 Response on Role of brand loyalty programs

I_believe_that_relative_attractiveness_of_the_reward_programs_ofFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 5 5.0 5.0 5.0

Disagree 15 15.0 15.0 20.0Neutral 8 8.0 8.0 28.0Agree 41 41.0 41.0 69.0Strongly Agree 31 31.0 31.0 100.0Total 100 100.0 100.0

39

I_think_that_there_is_no_switching_cost_to_different_brand_loyalFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 10 10.0 10.0 10.0

Disagree 15 15.0 15.0 25.0Neutral 8 8.0 8.0 33.0Agree 32 32.0 32.0 65.0Strongly Agree 35 35.0 35.0 100.0Total 100 100.0 100.0

My_loyalty_to_the_brand_is_affected_with_loyalty_programsFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 13 13.0 13.0 13.0

Disagree 13 13.0 13.0 26.0Neutral 10 10.0 10.0 36.0Agree 34 34.0 34.0 70.0Strongly Agree 30 30.0 30.0 100.0Total 100 100.0 100.0

I_do_not_switch_the_brand_because_of_additional_monetarynonmonFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 21 21.0 21.0 21.0

Disagree 23 23.0 23.0 44.0Neutral 6 6.0 6.0 50.0Agree 30 30.0 30.0 80.0Strongly Agree 20 20.0 20.0 100.0Total 100 100.0 100.0

40

1.4 Correlation Analysis on Role of brand loyalty programs:

CorrelationsI_believe_that_relative_attractiveness_of_the_reward_pr

ograms_of

I_think_that_there_is_no_switching_cost_to_different_brand_loyal

My_loyalty_to_the_brand_is_affected_with_loyalty_pro

grams

I_do_not_switch_the_brand_because_of_additional_monetarynonmon

I_believe_that_relative_attractiveness_of_the_reward_programs_of

Pearson Correlation 1 .099 .044 -.115Sig. (2-tailed) .328 .665 .256N 100 100 100 100

I_think_that_there_is_no_switching_cost_to_different_brand_loyal

Pearson Correlation .099 1 .173 -.082Sig. (2-tailed) .328 .084 .416N 100 100 100 100

My_loyalty_to_the_brand_is_affected_with_loyalty_programs

Pearson Correlation .044 .173 1 .046Sig. (2-tailed) .665 .084 .651N 100 100 100 100

I_do_not_switch_the_brand_because_of_additional_monetarynonmon

Pearson Correlation -.115 -.082 .046 1Sig. (2-tailed) .256 .416 .651N 100 100 100 100

1.5 Response on Rate of Statement:

I_purchase_products_of_a_brand_regularly_and_I_have_no_other_optFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 26 26.0 26.0 26.0

Disagree 39 39.0 39.0 65.0Neutral 10 10.0 10.0 75.0Agree 14 14.0 14.0 89.0Strongly Agree 11 11.0 11.0 100.0Total 100 100.0 100.0

41

I_do_not_stick_only_on_a_particular_brand_and_I_shift_one_brand_Frequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 12 12.0 12.0 12.0

Disagree 23 23.0 23.0 35.0Neutral 4 4.0 4.0 39.0Agree 33 33.0 33.0 72.0Strongly Agree 28 28.0 28.0 100.0Total 100 100.0 100.0

1.6 Rating of Brand:

I_consider_this_brand_as_my_first_choice_in_the_category_Frequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 8 8.0 8.0 8.0Disagree 19 19.0 19.0 27.0Neutral 6 6.0 6.0 33.0Agree 32 32.0 32.0 65.0Strongly Agree 35 35.0 35.0 100.0Total 100 100.0 100.0

I_say_positive_things_about_the_brand_to_peopleFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 17 17.0 17.0 17.0Disagree 19 19.0 19.0 36.0Neutral 7 7.0 7.0 43.0Agree 28 28.0 28.0 71.0Strongly Agree 29 29.0 29.0 100.0Total 100 100.0 100.0

42

I_have_or_would_recommend_this_brand_to_someone_who_seeks_my_advFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 13 13.0 13.0 13.0Disagree 17 17.0 17.0 30.0Neutral 10 10.0 10.0 40.0Agree 26 26.0 26.0 66.0Strongly Agree 34 34.0 34.0 100.0Total 100 100.0 100.0

1.7 Regression Analysis:

1.7.1 Regression between Demographics and Choice of Brand

Model SummaryModel R R Square Adjusted R Square Std. Error of the Estimate1 .022a .000 -.020 1.35472a. Predictors: (Constant), occupation_, Age group

ANOVAModel Sum of Squares df Mean Square F Sig.1 Regression .088 2 .044 .024 .976a

Residual 178.022 97 1.835Total 178.110 99

a. Predictors: (Constant), occupation_, Age group_b. Dependent Variable: I_consider_this_brand_as_my_first_choice_in_the_category_

Coefficients

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.B Std. Error Beta1 (Constant) 3.661 .487 7.516 .000

Age group_ -.015 .149 -.011 -.103 .918occupation_ .013 .075 .017 .169 .866

a. Dependent Variable: I_consider_this_brand_as_my_first_choice_in_the_category_

1.7.1 Regression between

43

Model SummaryModel R R Square Adjusted R Square Std. Error of the Estimate1 .289a .084 .045 1.28326a. Predictors: (Constant), I_do_not_switch_the_brand_because_of_additional_monetarynonmon, My_loyalty_to_the_brand_is_affected_with_loyalty_programs, I_believe_that_relative_attractiveness_of_the_reward_programs_of, I_think_that_there_is_no_switching_cost_to_different_brand_loyal

ANOVA

ModelSum of Squares df Mean Square F Sig.

1 Regression 14.309 4 3.577 2.172 .078a

Residual 156.441 95 1.647Total 170.750 99

a. Predictors: (Constant), I_do_not_switch_the_brand_because_of_additional_monetarynonmon, My_loyalty_to_the_brand_is_affected_with_loyalty_programs, I_believe_that_relative_attractiveness_of_the_reward_programs_of, I_think_that_there_is_no_switching_cost_to_different_brand_loyalb. Dependent Variable: I_purchase_products_of_a_brand_regularly_and_I_have_no_other_opt

44

Coefficients

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.B Std. Error Beta1 (Constant) .742 .675 1.099 .274

I_believe_that_relative_attractiveness_of_the_reward_programs_of

.194 .110 .175 1.765 .081

I_think_that_there_is_no_switching_cost_to_different_brand_loyal

.034 .097 .035 .346 .730

My_loyalty_to_the_brand_is_affected_with_loyalty_programs

.063 .095 .066 .662 .509

I_do_not_switch_the_brand_because_of_additional_monetarynonmon

.206 .088 .232 2.333 .022

a. Dependent Variable: I_purchase_products_of_a_brand_regularly_and_I_have_no_other_opt

45

2. Data Analysis on Manager Questionnaire

2.1 Work Experience of Respondents:

How_many_years_work_experience_you_have

Frequency PercentValid

PercentCumulative

PercentValid Less than 5 years 25 25.0 25.0 25.0

5-10 years 33 33.0 33.0 58.010-15 years 22 22.0 22.0 80.0More than 15 years 20 20.0 20.0 100.0

Total 100 100.0 100.0

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2.2 Descriptive Statistics:

Descriptive Statistics

N Minimum Maximum MeanStd.

DeviationHow_many_years_work_experience_you_have 100 1.00 4.00 2.3700 1.06983

It_is_able_to_track_the_position_change_in_the_financial_and_ope 100 1.00 5.00 3.5500 1.45210

It_helps_to_accomplish_that_target_customers_yielding_profits_an 100 1.00 5.00 3.5500 1.40974

It_assists_to_identify_the_behaviour_change_patterns_of_financia 100 1.00 5.00 3.9200 1.26075

Accomplishing_technological_and_other_benefits_that_are_a_major_ 100 1.00 5.00 3.6300 1.39012

Why_do_you_consider_brand_loyalty_programs_as_an_essential_strat 100 1.00 4.00 2.3600 1.11482

Valid N (listwise) 100

2.3 Importance of brand loyalty in success:

It_is_able_to_track_the_position_change_in_the_financial_and_opeFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 14 14.0 14.0 14.0

Disagree 16 16.0 16.0 30.0Neutral 5 5.0 5.0 35.0Agree 31 31.0 31.0 66.0Strongly Agree 34 34.0 34.0 100.0Total 100 100.0 100.0

47

It_helps_to_accomplish_that_target_customers_yielding_profits_anFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 12 12.0 12.0 12.0

Disagree 18 18.0 18.0 30.0Neutral 5 5.0 5.0 35.0Agree 33 33.0 33.0 68.0Strongly Agree 32 32.0 32.0 100.0Total 100 100.0 100.0

It_assists_to_identify_the_behaviour_change_patterns_of_financiaFrequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 8 8.0 8.0 8.0

Disagree 10 10.0 10.0 18.0Neutral 5 5.0 5.0 23.0Agree 36 36.0 36.0 59.0Strongly Agree 41 41.0 41.0 100.0Total 100 100.0 100.0

Accomplishing_technological_and_other_benefits_that_are_a_major_Frequency Percent Valid Percent Cumulative Percent

Valid Strongly Disagree 11 11.0 11.0 11.0

Disagree 17 17.0 17.0 28.0Neutral 4 4.0 4.0 32.0Agree 34 34.0 34.0 66.0Strongly Agree 34 34.0 34.0 100.0Total 100 100.0 100.0

2.4 Significance of brand loyalty in strategic actions:

48

Why_do_you_consider_brand_loyalty_programs_as_an_essential_stratFrequency Percent Valid Percent Cumulative Percent

Valid Increases the brand image and reputation 29 29.0 29.0 29.0

Increases operations in terms of new customers/increasing sales

27 27.0 27.0 56.0

Provides information with respect to market trends and customer perceptions

23 23.0 23.0 79.0

Brand loyalty programs are more beneficial as compared to its cost

21 21.0 21.0 100.0

Total 100 100.0 100.0

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Chapter 6 – Research Discussions

It is one of the most significant attribute that mainly involves aspects of assessment and

information being acquired from secondary and primary sources. This section mainly deals with

evaluation and is based on research objectives. The entire outcomes being derived are analyzed

and are compared with different previously published materials.

Theme 1 – Areas where loyalty programs gets failed

While undertaking primary research the response being derived from managers reflects

that there are several reasons due to which loyalty programs of organizations gets failed. In this

context the prime reasons that managers believe are due to absence of appropriate customer

services and inadequate prior research of the target market. Maximum number of participants

while taking interview agreed with this points that most of the organizations carry out loyalty

program but are not able to offer optimum customer services that ultimately creates lots of

dissatisfaction among customers.

Moreover, it is also being observed that not much of corporations have integrated the

social media approach in their business that affects brand loyalty programs, as maximum number

of customers today are present on social media and provide their reviews and experience which

helps in brand building. Any of the organization not having a presence on social media channels

creates impacts on performance of business. Loyalty programs of organizations is mainly

achieved when customers are satisfied and for this it is crucial to undertake the customer services

efficiently and provide solutions to customers queries on time.

Theme 2 – Organizations ability to track the position in financial and operational

performance

The response being derived from manager’s state that maximum number of participants

strongly agree with the fact that an organization must possess an effective ability to track the

position in operational and financial performance. Maximum number of respondents agrees with

this attribute that an organization if regularly undertakes the financial and operational analysis

50

then it can perform will in the market and will be able to deliver optimum level of services to its

clients.

Operational and financial performance of a business unit explains about the strategic

position of company and the total revenue available with organization. A strong financial

position states about the company’s ability to accomplish business activities so that effective

strategies can be undertaken to frame prominent business strategies and long term loyalty of

customers can be acquired. The response being derived from analysis shows that it is important

for business units to develop a strong financial and operational performance so that entire

business units can be managed efficiently and increased efficiency can be acquired, with this it

can be stated that business organizations can attain maximum of benefits and customer

satisfaction.

Theme 3 – Must provide novel technological features in business to attain maximum of

consumers

From the accomplished analysis it can be stated that as maximum number of participants

agree with the fact that technological features are crucial aspects and every business unit should

provide maximum number of consumers. Through this assessment it can be stated that as time is

changing people are switching mostly towards online products and finds it convenient in using.

In the intense competitive business environment, it is evident for business units to give

maximum of attention on bringing novel technological attributes and manage business conditions

suitably. Overall, it can be stated that with prominent business strategies online activities play a

very important role in leading ahead in business and helps in developing a strong brand loyalty in

the global market.

The analysis made over here clearly reflects that technological attributes play a very

important role that aids business units to lead ahead in the industry and reach wide range of

customers. Managers in their response have evidently stated that if any business unit wants to

sustain the competitive environment then it is vital to make the social presence stronger in this

era. By developing social media organizational page a business can reach customers directly as

well as can develop products according to their tastes and preferences. The accomplished

calculation above truly states the brand position and way numerous strategies in technological

market should be developed so that maximum of benefit can be attained.

51

Theme 4 – Brand loyalty is an essential stage move

The analysis being made depicts that maximum number of managers agrees with the

aspect that one of the most important stage in an organizations life cycle is attainment of brand

loyalty from customers. The response attained states that maximum number of customers in

today’s era prefers to buy products from business that are reliable and is having good reputation

in the market. Hence, in this context it can be stated that as any business attains maximum of

brand loyalty then it can probably make a strong brand image and a long term prominent relation

can be developed.

The results of interview also states that maximum number of participants also agrees with

the attribute that brand loyalty programs are an essential strategic move for company as it helps

in increasing overall sales. This can be acquired in manner that as maximum number of

customers gets associated with business then most of them will undertake repetitive purchase and

will always be associated with business due to loyalty. Other than this a satisfied customer also

helps in developing a positive word of mouth for company so that maximum of benefits can be

acquired and a strong position in the market can easily be developed.

Theme 5 – Brand loyalty programs are effective way to attain customer satisfaction

From the accomplished analysis it can be stated that a detailed understanding have been

derived on brand loyalty as it offers range of benefits to organizations. There are several studies

that give attention on customer loyalty and they pay attention to strengthen the brand and attain

prominent results. The response being attained from managers reflects that in order to achieve

customer satisfaction it is crucial that brand loyalty programs are brought so that strategies can

be reinforced and observation loyalty of consumers that shows wider role of brand and help the

company to connect with its customers.

Similar insights have been drawn out from secondary research that states brand is the

main attribute that helps to comprehend about brand link and attract maximum number of

consumers who possess high brand feeling about goods. In this context customer satisfaction is

52

an important attribute which is crucial that will basically aid in maximum of customer

acquisition and satisfy brand to make repetitive purchase and show commitment. In this regard

would like to state that not only customer satisfaction but numerous others attribute impacts on

brand loyalty of customers that involves trust, quality, equity and perceived value. All these

factors that depict information about variables include perceived value, customer satisfaction,

quality and brand trust which impacts on brand loyalty.

Managers of this business organization believe that in order to acquire increased level of

satisfaction companies need to keep in mind that includes needs and wants of consumers and

supply them outstanding goods and services. Any business can move ahead into upper level of

benefit by attaining long term satisfaction of consumers in the highly competitive business

environment and utilize product that is regardless of goods and services and service expectations

can be accomplished. Numerous research states that loyalty of a business is influenced with

satisfaction level that can predict about purchase intentions and behavior of buyers towards the

product. While making business decisions it is crucial to purchase the product with previous

experiences of goods that impact on customer decision making process. Overall, would like to

state that brand loyalty certainly increased customer’s satisfaction and undertake repetitive

purchase of similar goods. In the research and consumption of product leads are being generated

into phases so that loyalty towards behavior or attitude can be defined in terms of customers or

move to other attributes that are preferable.

53

Theme 6 – Customers perception in developing markets

The response being acquired from managers clearly states that perception of consumers

with respect to product and services quality that helps in developing brand loyalty. It is the

perception of buyers that helps in creating advertising publicities and other social media

attributes that intend to purchase goods. The feeling of consumer about service quality and its

characteristics are being offers in a way so that reliability and performance can be maintained. It

is crucial for organizations to keep their brand in a manner that expectations of customers are

being met and there are several phases of quality attribute that states about perceived quality.

In the literature review section numerous author points of view have been critically

analyzed that states quality has no valuations and validity which is significant among them and is

also managed in terms of quality. Managers also believes that service quality of goods and

services either accomplished or is a relatively novel concept than can change experience of

people and there are different business models which are being applied so that most valuable

insights are acquired between perceived quality and customer satisfaction.

Therefore, it can be stated that there is consistent relation between customer satisfaction

and perceived quality as it becomes consistent to manage the brand loyalty. Perceived quality

have a probable positive impact on customers satisfaction and it also have an effect on their trust

which is being suggested by several researchers. From the derived outcomes would like to state

that there is prominent positive impact on brand trust and quality level which ultimately aids in

meeting customers’ requirements.

54

Response from customers

Theme 7 – There is increased switching cost to diverse brand loyalty programs

The response being acquired from consumers states that there is increased cost involved

in switching cost to different brand loyalty programs. The prime behavioral objective of

customer satisfaction programs are being developed in a manner that helps in enhancing

customer rate of retention and it also helps in developing a link between organizations loyalty

programs and customer satisfaction that plays a very important role and provides meaningful

insights.

The switching cost is high because as the market is highly competitive and only loyal

customers repurchase goods and services because of intense level of competition that basically

impacts on the range of loyal customer base that are dissatisfied and obliged to be loyal. The

main motive of this research is to assess customer satisfaction loyalty association and identify

customer segment with level of loyalty and satisfaction in order to assess the role of switching

cost among range of buyers.

Theme 8 – Loyalty is influenced with brand loyalty programs

After accomplishing the primary research, it has been found that the use of various

loyalty programs in organizations helps to bring benefits to both companies and consumers.

Loyalty programs are brought in firms with a motive to develop life time customer value as they

have strong relations with them and they are motivated to do that so that increased efficiency in

decision making can be attained that lowers down risk aligned with potential decisions. Response

of customer shows that loyalty programs in organizations are structured with marketing efforts

that helps in attaining reward and thereby encourage loyalty among buyers which is beneficial

for companies.

The reward programs are being given by company to customers who frequently make

purchases and loyalty programs might provide customer advanced access to new products,

55

special coupons for sales and free merchandising. For loyalty programs consumers need to

provide their personal information with the company and it work as an incentive that offers

benefits on the basis of time and it also endorses buyers to make prominent business decisions.

The retail corporations of UK undertakes different loyalty programs with rebates, discounts,

points and these attributes are being considered as a comprehensive factor that helps in managing

customer relationship strategy.

However, even though there is various loyalty programs that offers prominent level of

support and commitment not points, company uses diverse loyalty programs to retain its loyal

customers and offer them redeemable points that could be further converted into free services in

exchange of any product or services. Overall, the response of customer reflects that loyalty

programs acts as a tool that helps to increase loyal consumer base and it acts as an opportunity to

attain information about purchasing habits and preferences of customer. This basically aids in

customizing organizational services, retailers will manage customer database to retain best

consumers and reward them for preferable behavior.

Theme 9 – Shifting to brands impacts on monetary and non-monetary rewards

The acquired results from analysis depict the consumer’s behavior towards loyalty

programs of retail corporations. Numerous business units have brought diverse loyalty programs

that are being preferred by consumers to enhance price discounts and services. The loyalty

reward programs are being made applicable among several companies. The membership or

loyalty programs brought by firms are being structured in a manner that helps in encouraging

loyal buying behavior and is potentially useful for companies.

Similar insights have been drawn out that states about preferred loyalty programs of

consumers through enhanced services and pricing discounts that is being applicable in several

sectors. Loyalty programs are structured in a manner that helps in providing rewards to buyers

and it further encourages loyal consumer buying behavior which is potentially beneficial for

companies. However, in the retail business reward programs includes loyalty cards, reward,

56

pointer, club and advantage card that helps to assess the card holder as a loyal member in

program. Different authors also offered their point of view that helps to understand about the

approaches in order to increase customer retention and loyalty towards the business, with

understanding of behavior consumers are able to satisfy them that provides benefits in business

for long term.

Developing effective relations with consumers help to offer better services that will

ultimately create an enhanced customer loyalty and maximum number of visits to customers.

This will ultimately aid in managing business activities for long term and it will lower down the

competition level, it is also being evaluated that loyalty programs acts as a channel to attract

buyers so that retailers can attain prominent results. This will also assist business units to retain

maximum number of customers and implement diligent approaches.

The advent of customer relationship programs are brought by retailers which has

enhanced performance of organizations to a considerable level in undertaking different practices

and theories. Loyalty programs have become a popular choice in undertaking marketing

strategies by retailers who believe that loyalty activities are a significant strategy that helps in

developing mechanisms to build traffic and increase frequency by deepening relations with

consumers. However, in this regard some members in the marketing sector have started

questioning about effectiveness of loyalty programs in attaining maximum support and loyalty

from consumers. The research being carried out states that there are certain members in the

marketing industry who have started questioning efficiency of loyalty programs in attaining any

customers support and the results being derived in a manner to manage the service quality in

loyalty programs as well as manage different factors that are crucial in service quality.

Theme 10 – Loyalty programs impact on the retention of company

From the accomplished primary research, it has been found that organization applies

different business strategies in order to retain customers and enhance business performance. It

has been observed that customers provide their reviews after using the product or service that

helps either in managing price or about the product so that business is worth. It is the point that

makes consumers willing to pay for goods and in several conditions marketing strategies are

being applied so that high value for the goods and services can be created in the eyes of

customers. This also depicts about the overall purchase intention so brand can create an image of

57

product in the minds which is positive or negative. While consumers purchase a product it is

crucial that cost and level of satisfaction is according to customers requirements. The results

being acquired clearly shows that there is strong association between value and level of customer

satisfaction that further aids in retention of them within business. Moreover, the results being

attained also states that a significant relation prevails between perceived value and level of

satisfaction so that consumers can get more chance to assess the product prior to purchase.

Theme 11- Switching cost increased brand monetary and non-monetary awards

From the accomplished survey it can be stated that maximum number of respondents

stated that they find additional switching cost in terms of monetary and non-monetary awards in

any organization. It has been found from the survey being accomplished that maximum number

of participants believes it takes lots of cost while switching from one brand to another. Brand

switching cost is one of the most defined contemporary attributes that are issues in marketing to

make an attempt to develop brand loyalty.

The switching costs have been theoretically shows positive impacts on profits, prices and

have been aligned with theoretical attributes that depicts positive impacts on prices, profits and

have been linked to a range of competitive phenomenon that includes price war and deep

discounts that is being offered by companies to attract novel consumers. The marketing literature

identifies a precise of switching cost, termed with brand loyalty and it includes minimum price

differential aspects needed before customers who prefer one brand over the other to compete in

the industry. Similar insights have been drawn out to switch from one brand to another and it

includes decisions are uncertain and it helps to maintain quality of brands.

Several studies emphasize recognition of loyalty by individual behaviors that make

repetitive purchase preferences and it is being aggregated attributes of individual behaviors. In

several markets consumers includes non-negligible costs of switching among several brands of

goods and services that includes three major attributes contractual, learning and transaction costs.

From the analysis it can be stated that new business relations with a provider and sometimes

include cost of accessible relationship. Learning costs reflects about the effort needed by

consumers to reach similar level of comfort with novel goods as they had for an old product. The

contractual switching costs are developed with planned action of firms and are very much

common in the market.

58

From the acquired response it would be evident to state that switching cost should

provide unique and valuable solutions to buyer’s issues or reward loyalty activities directly

through different incentive programs. Moreover, the increased switching cost in brand raises the

risk and burden of customers as well as service providers. Hence, it can be stated that there are

range of benefits present in developing long term relations between an organization and

consumers that helps in developing fellowship, recognition and reduction in anxiety and time

saving. If entire market is competitive and switching cost is higher than only a satisfied buyer

repurchase goods and service because of intense level of competition that results into loyal

customer base and obliged to be loyal. The study being undertaken reflects that business units

need to assess the customer segment with asymmetric level of loyalty, evaluate role of switching

cost among various types of customer loyalty link of business.

A customer in a business organization must be aware that he or she can switch towards

service provider before taking any step and undertake a decision to search and the impact of

customer switching could be significant in terms of service continuity and revenues. The

empirical results being derived states that by lowering down defections in transaction increased

profit and that defection have an impact on overall profitability than the market share with unit

costs and many other factors that is mostly aligned with competitive edge of business.

Theme 12 – Loyalty programs impacts on retention of company

While accomplishing primary result maximum number of customer’s agreed with the fact

that loyalty programs offers range of benefits to business as well. Loyalty programs potentially

include lots of cost in business but can be easily developed in a manner so that several sectors are

attaining maximum of money in managing reward schemes. It is absolutely crucial for

companies to monitor their loyalty programs efficiently that will assist in putting an effort to

track return on investment and attain maximum of benefits to ensure that organizational success

is being achieved.

However, measuring effect of loyalty programs is not necessarily crucial to deploy

multiple system as loyalty card and business platforms. There is precise program which helps in

performing organizational activities. The implementation of loyalty programs acts as a powerful

tool to develop relationship marketing and have now become one of the renowned attribute to

encourage customer loyalty and this helps in bringing range of benefits to organizations and

59

buyers. Customer loyalty activities in business is a significant attribute which helps in

accomplishment of success and it is being known that helps in drawing out maximum of market

share and retain existing one. In this context it is evident to state that relationship marketing

helps in creating a life time relation that helps in managing intense level of competition. Buyers

are motivated to undertake maximum of purchase and also gives them increased efficiency in

prominent business decision making so that maximum of consistency in decisions can be

acquired and perceived risk can be lowered.

Loyalty reflects development of a positive relation and retention shows continuity that is

crucial factor for development of long term relationship. The prime aspect of this attribute

includes emotions that are evoked with customer experience and is basically combined

company’s strong brand image. Customer retention is all about maintaining a positive relation

and strong goodwill in the market so experience of buyers can be enhanced. These activities help

business to determine organizational practices methods that are enhanced with time and are

being widely accepted as a main motive to relationship marketing.

60

Chapter 7 – Research Conclusion

The research has been undertaken in a manner that provides detailed insight to

understand the role of brand loyalty programs in developing long term loyalty achievement of

customers. The business environment for unit is highly competitive in today’s world

organizations and long term relationships with consumers that provide substantial significance.

The study undertaken clearly depicts that it is important for buyers to develop long term interest

of consumers with different brand loyalty programs that are crucial to develop within business.

By retaining customers within business an organization achieves benefits in several terms, as it

aids in managing the level of competition, positive word of mouth for corporation and existing

provides referral to other consumers as well.

The research work accomplished highlights the benefits of effective brand loyalty

programs within corporations mainly in the Indian market. As the prime motive of company is to

help the practitioners identify that whether brand loyalty programs are being followed in UK can

also be applied in India. It is evident to state that market features and requirements of

consistently changing and there is a huge difference in taste among Indian and UK customers.

The outcomes being acquired from primary and secondary sources reflects a clear image that

brand have been found to be capable enough to deliver an everlasting experience that helps in

achievement of both emotional and physical aspects of offerings that are being made.

From the analysis it would be evident to state that by acquiring customer loyalty a

business unit can attain long term loyalty of customer towards the brand and as proposed several

authors also that just extrinsic level of loyalty is being stated as true loyalty that do not have any

effect on price factors. It includes effective attachment that should be developed with experience

and with prominent approach that will help in enhancing brand loyalty by developing a suitable

experience which could be a key factor in brand building.

The very first objective of research has been understood that brand loyalty effectively

contributes in achievement of a competitive edge in business. High level of brand loyalty of

customers are being proposed by organizations that mainly helps in to lead ahead in the industry

so that maximum of profitability can be acquired and itself lead towards acquisition of market

share and brand equity. Results depicts that deployment of brand loyalty program is considered

61

as a primary attention on strategic planning associated with marketing and it is being proposed to

be a measure that helps in repurchase of program to consumers.

It has been stated by various researches that brand loyalty is aligned with purchase of

products or services that are being made by consumers on regular basis and is being used as a

means to assess the overall brand loyalty. Brand loyalty concept reflects that it is being

purchased and exposed in a pattern that helps in changing goods in a manner that repurchase

relies on the arbitrary aspects. The results also states that by developing strong brand loyalty

programs helps in undertaking repetitive purchase from customers and this perspective are being

viewed as varied aspect that integrates repurchase pattern so that emotional attributes of a brand

can be managed.

Moreover, the survey results clearly shows that different loyalty programs are being used

by incorporating various brand loyalty approach as stated in secondary research as well. The

brand loyalty attributes includes different aspects of customer behavior that leads to marketing

and advertisement of products with attention on demographical attributes along with value of

transaction so that purchase frequency can be utilized effectively. There exists a close link

between band loyalty and psychological attributes that basically aids to incorporate cognitive and

behavioral aspects that further helps in building up of brand loyalty attributes but would like to

state that commitment also play a very important role in brand loyalty that includes

psychological aspects.

Brand loyalty is a vital attribute for companies in today’s era as it prominently impacts on

the marketing aspect that leads to switching of customers. Moreover, the research outcomes also

states that numerous forms of loyalty have been stated and it is being developed in two

dimensions that includes psychological and emotional brand loyalty attributes that is related with

consumer behavior at an exact level. The main focus of companies are to elaborate the outcomes

so that profitability of business can be enhanced with increased brand awareness and propose a

better branding strategy so that retailers can purchase the private name with diverse attributes

along with brand labeling with respect to profitability from companies.

It is also evident to reflect that technological attributes are included in organization so

that awareness about brand can be increased that will further facilitate to attain leading position

in the industry. The basic competency associated with marketing is to acquire attention and

achieve loyalty of buyers so that technological attributes can be developed in a manner that helps

62

to spread more information about brand image. While bringing new business strategies it is also

crucial for Indian retail firms to give attention on marketing mix that includes basic concept of

marketing and helps in achievement of important aspect so that customer satisfaction can be

achieved. Marketers can also utilize the approach of social media that has grown to a great extent

in recent time period and is one of the biggest contributors in enhancing and managing

organizational image along with brand loyalty.

By developing the brand along with sustainability one can attain a leading position which

is a biggest concern for research and as brand loyalty is nowadays conceptualized as final

association with brand leading towards showcasing is an important aspect for development of

customer relationship along with assessment of acceptance level of buyers towards a product or

service. However, secondary research findings also states about brand loyalty in a manner that

helps in attaining a sustainable position that incorporates range of factors so that marketing mix

can be managed and for this range of factors needs to be incorporated to manage linkage with

consumers through events and correspondence business units. Moving ahead in the research the

other research objectives were also achieved in an accurate manner as it includes the wider body

of language that includes product and customer involvement so that a critical antecedent towards

the brand can be managed.

In this context different authors have also given their view point that suggests role of

product involvement and the way higher involvement of business will lead to increased brand

loyalty and with this customer product can also be supported in a manner that nature and scope

of business can be managed so that everyone remains tentative. It is also argued in the study that

by including product and customer with brand loyalty a strong relation can be formed and buying

behavior can also be managed for a lower involvement that simply reflects about purchase

behavior. Some of the research work depicted that increased involvement is not necessarily that

it will bring brand loyalty as every individual possess a diverse trait and situational factors needs

to be moderate that impacts on product customer involvement in a business.

The response achieved from customers truly reflects that brand loyalty is a key driver that

helps in making repetitive purchase that surprisingly helps in generating long term results. The

approach is expensive and difficult to attain new buyers as loyal customer do not easily switch

from one brand to another. This attribute is true from the aspect that there is a strong link

between customers and product involvement and brand loyalty extends with aspects that includes

63

risk, product class and perceived differences between several brands. The general attribute in the

research reflects that involvement of consumers in a product helps in directly classify the brand

loyalty and customers who are more familiar with precise brand and hence loyal customer base is

formed. The secondary results clearly states that Indian retail sector has come off age and has

gone through range of transformation over the time in which a noticeable shift is being observed

over the decade in which a noticeable change towards organized retailing is observed. Brand

loyalty to be the behavioral phenomena but commitment to brand has been more associated to

the emotional and psychological aspects. The global management consulting company has been

ranked as the fourth most attractive nation for retail investment among several flourishing

market.

The retail market is anticipated to reach a wide range of market as it expands to a great

extent and retail market is expected to grow massively in the upcoming years. The favorable

demographics, increased urbanization with rising affluence that includes rising preference for

branded goods and increased aspirations of business with other factors which will drive retail

unit and is classified into two sections i.e. organized and unorganized retail. The globalized

aspect of business reflects the efforts that had mostly gave attention on industry situations and

economic aspects that impact on business investment and less of the studies have focused on

Indian customers. The potential for growth of corporations are very much strong although there

are numerous issues in terms of growth of new entrants yet company is managing its strategies

with optimum business regulations so that personnel cost with basic infrastructure attribute can

be managed to achieve a leading position in the industry. In this context true loyalty relies when

a buyer holds adequate aspect of brand that depicts about customers purchase decision making

process and holds significant aspects so that competitiveness of industry can be managed. In this

regard it would be optimum that business organizations maintains a suitable position and puts

additional cost that can be utilized in marketing activities and positive word of mouth for

organization can be formed that will helps in achievement of a competitive edge.

The entire domestic and global brands in India are competing with each other mainly in

apparel retail market that helps in attaining long term success of marketing approach for both

global and domestic brands that helps brand to compete with each other and manage perception

of customers for brands in India. There are several renowned companies in India that have not

formally entered into the Indian market but have considerable presence on the websites. The

64

challenges for brands are to comprehend about customers requirements and act as a sign of

modernity and good life to consumers. The prime attention of companies have been depicted in a

manner that helps in enhancing brands along with sustainability and revenues so that existing

customers along with new buyers can be acquired in a suitable manner. The main focus of brand

is to elaborate the previous studies and over the time manage brand awareness as the main

motive so that customers can be associated with in business.

The results attained from SPSS also states a similar trait that shows brand acceptance is

an important attribute to manage personality of consumers associated with traits that helps in

development of range of activities that will lead to enhanced communication channels and

consumers resulting into own personality traits that helps in adoption of business activities so

that maximum of brand loyalty can be achieved and it will brands to acquire increased brand

loyalty with brand equity and it possess own personality attributes that helps buyers to select

most suitable brand that suits their taste and preferences. As there is increased business

opportunities in retail India that has led to achievement of a vibrant position and accounting for

development of maximum employment in business units. The retail market of India is anticipated

to grow at a rate of 12% and strong fundamental economic growth that has led to increased

disposable income with expanding upper and middle class customer base at a large scale that

helps to drive business growth in retail infrastructure with maximum of profitability and

evolutionary business opportunities.

In order to succeed in the global market, the brand needs to comprehend diversity and

uniqueness as there are several differences among customers of UK and India that basically helps

in adapting and reinventing brands to fit within tailored business needs and meet global attribute

so that brand aspirations can be customized and a safer option can be brought for business. The

brand loyalty strategies being deployed by business unit as one of the major attributes that

focuses on strategic planning and associating with marketing which is being proposed with

repurchase of customers program. It is being elaborated with several aspects that states about

loyalty and includes about purchase of products and services that are developed by customers

through repetitive purchase and attributes are being used to measure the success of brand loyalty

programs.

However, several researches have elaborated loyalty approach in a way that helps in

defining about linked business pattern of buyers in the swiftly moving and changing products

65

that helps to meet the customer repurchase which depends on arbitrary attributes. Thus, it

ultimately leads towards achievement of brand loyalty to a great extent as mostly relies on

repetitive purchase behavior of consumers and is strongly associated with many other emotional

and psychological attributes. Thus, it can be concluded that leading brand needs to manage

several aspects by incorporating repurchase patter that includes emotional behaviors of buyers so

that brand can sustain in the market. The outcomes of brand loyalty programs are also inclined in

a manner that various aspects of customer behavior are managed along with value of transactions

being made with demographical attributes along with purchase frequencies so that a linkage can

be formed in a way that aspects of customer behavior are managed with respect to marketing and

advertisement aligned with business cities and psychological traits with brand loyalty. These

psychological factors incorporate the attitudinal, cognitive along with behavioral aspect leading

towards building up of brand loyalty.

The accomplished literature review offered immense of information on the research that

helps in generalizing the view with respect to brand equity and numerous attributes of effective

brand management. The literature review stated here describe about the brand and its origin in

the field of fashion and apparel. This could be depicted ultimately that the secondary evaluation

offered immense of information with respect to brand equity and different attributes of brand

management are accomplished. The section was initiated with description of brand name and a

detailed evaluation of branding strategies and its origins so that prominent business strategies can

be developed. This is also being stated that branding holds its strong essence with the various

schemes and includes attributes of marketing of a research that can be dealt with respect to

customer needs and accordingly future strategies can be developed.

66

Chapter 8 – Recommendations

In the retail environment the existing technologies and process limits ability of

management to view customer services and attain sales results that depend on transpired during a

call. Network analytics such as transfer rates, hold time and call lengths that are mostly being

used to assess and develop potential strategies. The outcomes being derived from investigation

are considered as an useful attribute that helps in development of several suggestions for future

analysis to attain maximum of information so that productivity can be increased that would lead

to more representative findings.

The theories which are stated in the research are a foundation that helps in taking the very

first initial step to assess the effect of brand image on customer buying behavior. The similar

theories can be utilized for potential research in order to attain maximum of output and attain

maximum of comprehension so that theories can be developed accordingly. The model of

consumer behavior brand equity can be developed in the study that helps in defining about brand

meaning, response, relationship and it will assist to bring valid insights about creation of brand.

In this context business organizations can develop quality perception framework that can be used

to assess the area of research and customers can use range of brands from diverse nations that

user based and are effective in terms of quality and is precisely more of subjective which makes

it difficult to measure.

This framework helps in to assess the products quality by range of specifications that

includes performance attributes, brand image, reliability and serviceability. The additional

directions of analysis suggest advertising the impact on customer’s perception of a region. The

Indian retail units can attain valid information from several corporations of UK and in this

context marketers need to understand the way innovative loyalty programs can be brought in

business that basically reflects about consumer shopping behavior and should bring strategies to

67

keep them loyal in business and develop a life time customer value. In order to achieve this

business goal organizations need to develop some below mentioned recommendations;

Organizations should utilize different types of customer loyalty programs that will

probably impact on the retention rate of customers that should mainly include tier system

reward.

The retail corporations should keep an eye to attain maximum of benefits from new and

innovative tools to differentiate themselves in terms of loyalty programs and attract new

customers so that purchasing power of existing ones can be increased.

Marketers need to give attention on the balance between revenue and cost of business so

that the diverse loyalty programs must be given attention so that business can be

developed in an economical manner.

It is fact that every buyer is different in terms of their tastes, preferences and

characteristics that depict distinctive loyalty programs should be represented in segment

that according to tastes and preferences of customers.

The brand loyalty programs designed must be developed in a manner that helps to redeem

points and it helps in managing the marketers to develop loyalty program that helps to

achieve customer satisfaction and convert points into merchandise with various services.

Retail organizations must give attention to retain maximum number of customer due to

their role in recommending the firm to their relatives and friends that will help in

development of positive word of mouth for brand and managing an existing customer is

easy then acquiring any new one.

The significance of diversifying the loyalty programs to attract maximum number of

buyers from several demographical regions will also help to maintain the business

environment as much as possible.

Moreover, organizations should also focus to develop a loyalty program that better fits in

the needs of youth and accomplishing shopping requirements.

Keeping consumers informed is also important in managing loyalty programs as it helps

to deal with several situations.

Finally, would like to recommend that business organizations should develop a

transparent feedback system to listen views of consumers and suggestions with respect to

available loyalty programs.

68

However, the researcher has mentioned that accessibility do not necessarily prevail

with diagnostic part but it helps in acquiring information from the research that helps in

formation of a customer loyalty program so that identity can be managed that shows distinctive

roles being played at the stage of accessibility. Accordingly, once a customer becomes aware

about the customer loyalty program the distinctive strategies can be managed with perception of

membership and apart from this distinctiveness of program can be managed easily to understand

the reward system and the identity with respect to the extent of membership.

Loyalty cards are the convenient and cheapest way to accomplish a loyalty program as it

is more applicable in organized retail business it is a precise type of card through which

customers can easily swipe the points during the time of purchase and can attain several services.

This will act as a mechanism to assess and reward the loyal customers of business in a way so

that they feel more acknowledged and rewarded. The customers are being awarded with the

points being accumulated according to purchase being made on every transaction under the

scheme of loyalty cards. The points being acquired can be further utilized as rewards that can be

further redeemed with discounts and gifts. The retail shop can be managed in a manner so that

customer’s information can be used to retailer. Through this card customers can easily purchase

any of the titled discount to retailer and points can be allotted accordingly that can be used for

potential purchase. This is majorly being affected by customer’s assessment responsive manner

of value being perceived to manage a loyalty program offer.

The actions that an individual takes while purchasing the product includes social and

mental process and it basically follow precise business actions. It would be recommended that

business organizations should give attention on managing purchase decision process that gives

attention on five different stages that includes product and services. The retail corporations need

to bring innovative strategies so that maximum of customers buying decisions in great detail to

acquire questions about customers needs and develop strategies so that their requirements can be

accomplished. However, after assessing both primary and secondary results it can be stated that

results being revealed that trustworthiness had no modern impact on the loyalty program or

identity relevance. The analysis depicts the impact of interaction on the loyalty, trustworthiness

and identity relevance so that significant outcomes can be acquired. This finding is inconsistent

with previous research that represents modern impact on consumer assessment of making

marketing loyalty and communications.

69

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Appendix – I

Questionnaire for customers

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The research has been accomplished with a motive to acquire insight about brand loyalty

programs for Indian retail industry. The information being acquired from this study will be kept

confidential and it will not be made public in any case.

Name __________

Gender

1. Male □

2. Female □

Age group (Please tick any one option)

1. Less than 20 years □

2. 20-30 years □

3. 30-40 years □

4. Above 40 years □

Occupation (Please tick any one option)

1. Businessman/women □

2. Service class □

3. Student □

4. Retired □

5. Housewife □

6. Professional □

7. Other □

Role of brand loyalty programs

81

Please rate the following statements on a five point Likert scale ranging from 1 to 5 where;

5= Strongly Agree, 4= Agree, 3- Neutral, 2= Disagree, 1= Strongly Disagree

1 2 3 4 5

I believe that relative attractiveness of the reward programs of this

brand is optimum

I think that there is no switching cost to different brand loyalty

programs

My loyalty to the brand is affected with loyalty programs

I do not switch the brand because of additional monetary-non-

monetary awards

I feel that loyalty programs affect your retention to the company

Rate the following statement on a five point Likert scale ranging from strongly agree to

strongly disagree where,

5= Strongly Agree, 4= Agree, 3- Neutral, 2= Disagree, 1= Strongly Disagree

Statement 1 2 3 4 5

I always insist a particular brand and cannot take any other

optional brand (truly loyal)

I purchase products of a brand regularly and I have no other

option (Spuriously loyal)

I do not stick only on a particular brand and I shift one brand

to another (Brand switcher)

I am not rigid for purchasing any specific brand as I can take

any product (Indifferent buyer)

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 With this brand in mind please rate the following:

5= Strongly Agree, 4= Agree, 3- Neutral, 2= Disagree, 1= Strongly Disagree

Statement 1 2 3 4 5

I intend to purchase products from this brand in near future

I consider this brand as my first choice in the category

I say positive things about the brand to people

I don’t bother to look at alternative brands; this brand is good

enough for me!

I have or would recommend this brand to someone who seeks

my advice

Appendix – II

Questionnaire for managers

83

The research has been accomplished with a motive to acquire insight about brand loyalty

programs for Indian retail industry and the way it is different from UK retail industry. Moreover,

analysis has been made to understand that strategies that can be applied in Indian retail units

from UK. The information being acquired from this study will be kept confidential and it will not

be made public in any case.

1. Name _______________

2. How many years’ work experience you have

□ Less than 5 years

□ 5-10 years

□10-15 years

□More than 15 years

3. In your opinion why do brand loyalty programs fail (Multiple reasons may be ticked)

Lack of defining goals/key objectives for developing loyalty programs Ineffective loyalty program□ Ineffective customer service Inadequate research of the target market Less/no integration with social media to drive the brand loyalty programs Brand loyalty program of organization does not stand with that of the competitors

4. Please rate the following measures/criteria that a brand loyalty program must fulfil in order to be successful on a five point Likert scale ranging from 1 to 5 (where; 5= Strongly Agree, 4= Agree, 3- Neutral, 2= Disagree, 1= Strongly Disagree)

Scale item 1 2 3 4 5

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It is able to track the position change in the financial and operational performance of the business enterpriseIt helps to accomplish that target customers yielding profits and differentiating them among various segmentsIt assists to identify the behaviour change patterns of financial as well as non-financial transactions

Accomplishing technological and other benefits that are a major trait of consumers

5. Why do you consider brand loyalty programs as an essential strategic move (Please tick appropriate option/options)

Increases the brand image and reputation Increases operations in terms of new customers/increasing sales Provides information with respect to market trends and customer perceptions Brand loyalty programs are more beneficial as compared to its cost6. Are brand loyalty programs the only way to gain customer confidence and loyalty towards the brand? If Yes, Why __________________If No, Why ___________________

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7. Will you like to give any additional comment on customer’s perceptions change with respect to established and developing markets?

_____________________________________________________________________________

8. Are there any suggestion/feedback you are able to provide?

86