Consumer Loyalty in Retail – An Investigation Into Loyalty Schemes

Consumer loyalty is one of the most valuable assets a retailer could possess. With increased competition from rival stores and brands, a vast range of product choice and variations, and the expansion of internet trading and comparison websites, loyalty is scarcely existent in the modern retail environment. With the retail world saturated in plastic cards, point schemes, and a whole spectrum of consumer loyalty tactics, the investigation into loyalty schemes establishes their effectiveness in living up to their name.

Research has expanded knowledge of previous authors, and examines what does and does not make a consumer loyal, taking into account the effect of loyalty cards for both the consumer and retailer. It attempts to develop an understanding of the most effective way for retailers to turn a mere consumer into a loyal customer. The development of loyalty models and analysis of research begin to suggest that loyalty schemes are successful when offering sustainable benefits to the consumer such as special offers, reduced pricing, and free gifts, however the effectiveness of loyalty based schemes are dramatically reduced when the participants privacy is invaded with purchase tracking and direct mail.

However, it is discussed that such schemes should be used only as one part of a customer loyalty strategy, and that other techniques such as building staff and customer relationships should be emphasised to begin to increase the wavering loyalty levels within today’s disloyal retail environments.

  • 10,000 words – 68 pages in length
  • Excellent use of literature
  • Good in depth analysis
  • Well written throughout
  • Does not include questionnaire or transcripts
  • Ideal for marketing and business students

1 – Introduction
Aim of the Study
Chapter Outlines

2 – Literature Review
Consumer Loyalty
Loyalty within the modern retail environment
The Importance of Capturing Loyalty in the Retail Sector
Most Likely Loyalists
The Loyalty Card Phenomenon
Are Loyalty Schemes Successful?
Problems and Issues surrounding loyalty marketing
An Alternative Answer
Gaps in the Literature

3 – Methodology
Research Philosophy
Secondary Research
Advantages of Secondary Research
Limitations of Secondary Research
Primary Research
Quantitative Research
Advantages of Questionnaires
Limitations of questionnaires
Qualitative Research
Advantages of Depth Interviews
Limitations of Depth Interviews
Analysis of Research
Research Ethics

4 – Research Findings
The Consumer and Loyalty
Age Groups
Ownership of Loyalty Cards
Store Loyalty
Shopping Factors – The Most and Least Important
Attraction to Loyalty Based Schemes
Loyalty Scheme Pros or Cons
Influences of Loyalty towards a Store or Brand
Loyalty Schemes versus Loyalty
Loyalty Most Likely
Significant Reasons for a Decline in Consumer Loyalty
Primary Research Findings – The Retailer and Loyalty

5 – Research Analysis
Consumer Loyalty
Supermarket Loyalty
Age and Loyalty
Consumer Opinion of Loyalty Based Schemes
What Consumers want from a Loyalty Scheme
The Loyalty Card Pyramid
Can loyalty be influenced?
The Retailer’s View
The Retail Loyalty Model

6 – Conclusion
An Understanding of Loyalty and Consumers
An Understanding of Loyalty and Retailers
Investigation into Loyalty Based Schemes and their Effectiveness
Recommendations for Further Research



Loyalty Schemes in the Retail Sector Dissertation
Loyalty Schemes in the Retail Sector Dissertation

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