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).
21
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.
25
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.
27
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:
28
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.
33
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
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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
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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.
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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