Investing the Impact of Loyalty Programme on Customer Retention: The Case of Boots (Sutton)

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TABLE OF CONTENTS

CHAPTER 2: LITERATURE REVIEW1

2.1 Introduction1

2.2 Conceptual clarification1

2.3 Loyalty programmes2

2.3.1 Types of Loyalty Programs4

2.4 Benefits of Loyalty Programs5

2.5 Dimensions of Loyalty Programs7

2.6 Loyalty programs and Customer Retention10

2.7 Relationship marketing14

2.8 Summary19

CHAPTER 3: METHODOLOGY20

3.1 Introduction20

3.2 Research Methodology20

3.3 Research Paradigm -interpretivism21

3.4 Research Strategy - case study23

3.4.1 Case study approach24

3.5 Data collection methods25

3.5.1 Interview25

3.6 Strength of Methodology27

3.7 Weakness of Methodology28

3.8 Summary29

REFERENCES30

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

In this chapter the pertinent literature review will be discussed in detailed. In this chapter the whole conceptual framework, pertinent headings to the topic and over all summary of the section will be discussed.

2.2 Conceptual clarification

In this study the literature review is entirely based on the concepts pertinent to the loyalty programs and its relationship between customer retention. The literature is absed on the basic of the concept of loyalty program in which the general introduction is given and after that its advantages and dimensions were discussed. The reason of discussing that in the literature review is that these concepts and literature would be helpful in justifying and creating a base for the conclusion of the study. The literature review discussed about the relationships between loyalty programs with the customer retention in the organizations. This heading will help the study in building a relationship between loyalty programs and their impact on the customer retention. After discussing all this, the most significant concept is the relationship marketing concept and how it's significant for creating the best loyalty program in the organization. These all above concepts will help the study in formulating the conclusions and future recommendations. The outcomes of the study will also be based research methodology. Interview responses and the case study method will be helpful in this study for formulating its outcomes and constructed its framework.

2.3 Loyalty programmes

In the marketing context the loyalty programs have numerous definitions. According to the researcher, the program for customer loyalty can be defined as the marketing plan that actuates customers for becoming the repeated customers. According to the research, the loyalty can be defined as provision of customer incentives for purchasing products or services repeatedly from the retailer. In return, customers get discounts and different prizes on their purchase. Loyalty programs can also be defined as the enticements rebate for customers' recurring that's purpose is to induce the customer's perceived value for continuing the business relationship.

In the loyalty program the rewards which are offered to the customers are coupons, free cost of shipping and discounts offer on the purchase products and services. The organization can gain lucrative results by offering rebates and loyalty programs to the customers. According to the researcher, these loyalty programs are effective enough for gaining the interest of the retailers and customers.

There are numerous studies which are conducted on the customer loyalty programs, in these programs there are numerous characteristics which aim at retaining the customers' loyalty and retention to the specific product or ...