Consumer loyality And Reward Scheme

A Minor Case Study on Reward Scheme

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  1.1 Introduction

Every enterprise perform their operations in more effective way so that they can fulfil the needs and demands of the people. For this, companies are using different kind of strategies and approaches so that they can achieve success in the market. The manager of an entity conduct a research in the market so that they will be able to know about the different choices of customers. They are using some of the marketing activities so that brand awareness can be increased in the market. Along with this, some firms are also using the reward scheme in order to attract them towards their services so that their overall profitability level can be increased. The present report is based on the customer loyalty and rewards scheme and how these may affect the choices of the people. Tesco is a retail industry which perform their operations in UK. In the current report, some of the methodologies are used by the researcher so that overall impact on service users choices can be identified. Along with this, primary and secondary sources are used in order to collect the data from different sources.

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1.2 Factors that contribute the research project selection

Now a days, organizations are focusing on the different needs and requirements of people. So, for this they conduct different kinds of surveys at the marketplace. There are some loyal customers who purchase the services even if prices of the services are get increased. These people are brand loyal who consume the goods only of their respective firm. There are some factors which are considered while conducting overall research project. In order to complete the research in an appropriate manner, problem needs to be identified then only success can be achieved. These factors play an important role in order to select an appropriate research project so that aim and objectives can be achieved.

When research problem in an effective manner than through this overall research questions can be resolved. Along with the problem, there are some other factors which are vital at the time selecting the project. People, phenomena and programs are also essential for the project. On the basis of these, the overall research aim and objectives can be achieved. By considering these, the research problem can be solved in more successful manner.

1.3 Literature review

There are many customers who prefer different products and services so it is the responsibility of firm to fulfil the needs of people. Some organisations offer rewards and incentives to their consumers so that their overall satisfaction level can be increased as this may highly affect the choices of the people (Evanschitzky and et. al., 2012). In this, different authors give their different opinions that how customers loyalty and rewards can affect their interests. Through this, research gap can be identified in between the past and present project study.

Customers loyalty and rewards schemes

According to the views of Tanford, S., Raab and Kim (2011) there are some customers who prefer to purchase products and services of one organisation rather than any other. For this, some of the enterprises conduct programs at the marketplace so that they will be able to gain the attention of the people. On the basis of these, retail industry will be able to retain their consumers towards their services. So, in this manner overall competitiveness can be achieved as compare to other rival firm. Kopalle and et. al., (2012) stated that some of the loyalty programs are conducted by the manager of Tesco so that sales can be increased. This may affect the business organisation in more positive manner as through this large customer base can be build.

Sometimes, loyalty programs provides special kind of membership to the people so that they can access the new products. It has been analysed by Tanford, Raab and Kim (2012) that an individual who has membership card they are liable to get some extra benefits or coupons. Through this, the overall satisfaction among the people can be increased.

Customers choices

In this dynamic world, customers choices are changing from time to time so it is the responsibility of manager to identify the changing needs and demands of people. As per the view point of Gómez, Arranz and Cillán (2012) retail industry can use loyalty programs at the marketplace so that customers attention can be gained. Brand loyal person will purchase services from the respective organisation so company has to provide quality services with flexible prices. Through this, they can retain their service users and that can lead towards the success.

Impact of customers loyalty programs on their choice

Dorotic, Bijmolt and Verhoef (2012) says that customers loyalty programs affect the choices of an individual in positive manner as through this the overall sales can be increased. There are some of the loyalty programs that are conducted at the marketplace and these are like point system, tier system, membership card, non monetary programs etc. These can lead an enterprise towards success and high profitability. It has been analysed by Hafeez and Muhammad (2012) that customers satisfaction is an important factor which can lead an enterprise towards success. So, on the basis of the programs the overall satisfaction level of the people can be increased in more effective manner. By using the loyalty concept the long term relationship can be established in between the customers and enterprise. So, in this manner the choices of customers are get affected and this is beneficial for Tesco.

1.4 Research project specification


To identify the impact of customers loyalty and reward scheme on the choices of the people- A study on TESCO

Research objectives

There are some of the research objectives of this current project which are as follows:

  • To identify the effectiveness of customers loyalty and reward scheme.
  • To analyse the impact of loyalty programs on the choices of the customers.
  • To determine the link between the loyalty programs and customers choices.
  • To recommend some ways so that Tesco can gain the competitive advantage in the market as compare to other competitors.

Research questions

Some of the research questions are stated below:

Q1. What is the effectiveness of customers loyalty and reward scheme at the workplace?
Q2. What is the impact of loyalty programs on the customers choice?
Q3. What is the relationship between consumers choice and loyalty programs?
Q4. What are the different ways through which competitive advantage can be gained?

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Research methodology

Research methodology is a section which explain the different methods and tools that are used by the researcher in order to complete the project in more successful manner. It is a kind of process through which overall questions can be resolved and due to this objectives can be achieved. On the basis of this, it can be analysed that how customers loyalty and reward scheme can affect the choices of the people. It is the responsibility of researcher to select an appropriate approaches so that goals can be accomplished. These methods are as follows:

Research design

There are various research design techniques such as descriptive, correlation, explanatory and so on. Here, in the present study descriptive has been used by the researcher so that overall understanding of the loyalty programs and customers choices can be understand.

Research approach

Inductive and deductive research approaches are used in the research projects. In the present report, inductive approach has been used so that different theories can be formulate. On the other hand, in deductive the hypothesis are created and on the basis of that overall goals can be achieved.

Research philosophy

This helps the researcher in order to increase their knowledge about the loyalty programs and customers choices. There are two types of philosophies such as positivism and interpretivism. In the current study, interpretivism has been used by the researcher so that different human perception can be identified.

Data collection techniques

In the current research project, data can be collected from both primary and secondary sources. In primary, data has been gathered through questionnaire and secondary can be collected through books, journals, articles, internet. Through this, it can be identified that how customers choices are affected by the loyalty programs.

Sampling technique

Sampling is a kind of technique that is used in order to extract a small sample from large population and overall research will conduct on the sample. Here, in the current research random sampling technique is used so that different views or opinions can be identified.

Data analysis

It is a kind of process that is used by researcher in order to analyse the data on the basis of qualitative method. In this, thematic analysis is used in which themes are formed with their graphs. So, in this manner overall data or information can be interpreted.

1.5 Gantt chart

In this section Gantt chart is so that overall plan can be implemented in more effective manner. On the basis of this kind of chart, it can be analysed that how different activities are going to be followed in an effective manner.

Activities/weeks 8 9 10 11 12
Research proposal                       
Formulate research aim and objectives                        
Literature review                       
Research methodology                      
Data analysis                       
Final submission                        


  • Dorotic, M., Bijmolt, T.H. and Verhoef, P.C., 2012. Loyalty programmes: current knowledge and research directions. International Journal of Management Reviews.
  • Evanschitzky, H. and et. al., 2012. Consequences of customer loyalty to the loyalty program and to the company. Journal of the Academy of Marketing Science.
  • Gómez, B.G., Arranz, A.M.G. and Cillán, J.G., 2012. Drivers of customer likelihood to join grocery retail loyalty programs. An analysis of reward programs and loyalty cards. Journal of Retailing and Consumer Services. 
  • Hafeez, S. and Muhammad, B., 2012. The Impact of Service Quality, Customer Satisfaction and Loyalty Programs on Customer's Loyalty: Evidence from Banking Sector of Pakistan. International Journal of Business and Social Science.
  • Kopalle, P.K. And et. al., 2012. The joint sales impact of frequency reward and customer tier components of loyalty programs. Marketing Science.
  • Tanford, S., Raab, C. and Kim, Y.S., 2011. The influence of reward program membership and commitment on hotel loyalty. Journal of Hospitality & Tourism Research.
  • Tanford, S., Raab, C. and Kim, Y.S., 2012. Determinants of customer loyalty and purchasing behavior for full-service and limited-service hotels. International Journal of Hospitality Management. 
  • Evaluation research methods. 2017.
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