Customer Loyalty Programs Are They essay

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Sampling Design

The study will utilize random sampling technique at three different grocery locations. The researcher will administer the study to customers who are shopping at the store. The researcher will ask the customer questions about what influenced their decision to shop at that particular store that day.

Data Collection Method

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

Contribution of Study

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

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

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

Bibliography

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

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

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

Humby, C., Hunt, T., & Phillips, T. 2003. Scoring Points: How Tesco Continues to Win Customer Loyalty. 2nd. Revised Edition. USA: Kogan Page Ltd.

Jeon, H. 2003. Effects of Loyalty Programs on Value Perception, Program Loyalty and Brand Loyalty. Journal of the Academy of Marketing Science. 31 (3): 229-240.

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

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

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

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

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

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

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

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

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

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

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