RESEARCH PLAN

Specialization Subject:  Principle of Marketing

Branch: Principle of Marketing
Area:  Customer Relationship:Customer Service
Topic: Impact of Loyalty card to consumer
Temporary Title:  Impact of Loyalty card on consumer buying behavior
Team Name: Data Miners      
II. Background of the Study
Short presentation of basic concepts and information about the research topic shall
be presented in this section. Include few relevant literature and studies (maximum of 5 in-
text citations) which serve as major background of your paper. Cite also your motivation
for the topic and the reasons and importance of your study.

THE PROBLEM AND ITS BACKGROUND

Introduction

Satisfying customers is one of the main objectives of every business. Businesses

recognize that keeping current customers is more profitable than having to win new ones to

replace those lost. Management and marketing theorists underscore the importance of customer

satisfaction for a business’ success. Customer loyalty program is one of retail marketing

strategies with many benefits for both the customers and business. The customer’s loyalty is one

of the important tool or way for brand awareness. The retailers have to design loyalty programs

and make it more communicable and meaningful for the customers. The right loyalty program

benefits influence the customers’ decision on choosing a particular retail outlet. The retailers

have to make an effort to understand their customers’ expectations of benefits in the form of

reward programs. Measuring the effectiveness of the loyalty programs periodically is more

profitable for both retailers and customers. This will certainly help to increase the footfalls and
conversion rate at the retail outlets. Also, this enhances the retailer brand loyalty in the minds of

customer. (“Influence of Customer Loyalty Programs on Buying Decisions Introduction”, 2011)

Consumer buying behavior is what sums up the preferences, attitudes and intention of

consumer when buying or purchasing a product. It is an inseparable a part of marketing where in

it is extremely important to organizations or business owners. Consumer behavior serves as a

successful tool for marketers in meeting their sales objectives.

It is important for marketers to study consumer behavior. It is important for them to know

consumers as individual or groups opt for, purchase, consumer, or dispose products and services

and how they share their experience to satisfy their wants or needs. This helps marketers to

investigate and understand the way in which consumers behave so that they can position their

products and services to specific group of people or targeted individuals. (“Importance of

Consumer Behavior”, 2018)

Loyalty card is a card issued or given to regular customers by stores so that they can earn

points every time they purchase a product. Points that customers earn can later be exchanged for

goods or services or gives discounts to costumers on their next purchase.

A loyalty card program is an incentive plan that allows a retail business to gather data

about its customers. Customers are offered product discounts, coupons, and points toward

merchandise or some other reward in exchange for their voluntary participation in the program.

A secondary goal of loyalty card program is to build repeat business by offering participating

customers something that is not available to non- participating customers. (Rouse, 2009)

Loyalty programmes are often considered value-sharing instruments and can enhance

consumers’ perceptions of what a firm has to offer. This value enhancement function is
important because the ability to provide superior value is instrumental to customer initiation and

retention (Yuping, 2007). The prime objective of loyalty programmes is achieving customer

loyalty (Gomez et al., 2006). A loyal customer can mean a consistent source of revenue with a

variety of other factors. However, loyalty is not a straightforward construct and retailers and

academics are still searching for the most suitable approach (Smith et al., 2004)

Giving loyalty cards has a great impact on many consumers. For that reason, this study

will aim to determine the effects of loyalty cards on the behavior of consumers.

III. Methodology, Research Design, and SOPs 

Cite in this section the general and specific SOPs of your research work. Indicate also
whether you are using quantitative, qualitative or mixed method of research. Also, indicate
the research design/s to be used.

THE SOURCE OF DATA AND METHODOLOGY

As indicated in the title, this chapter presents the source of data and methodology of the

research. It provides information concerning the method that will be used in undertaking this

research. In addition, in this part the researchers will indicate the design of the study, research

instrument, respondents, locale of the study, and the data gathering procdure.

Research Design

Generally, research design refers to the overall strategy that the researchers use to

integrate the different components of the study in a coherent and logical way, thereby, the

function of research design is to ensure that the evidence obtained enables the researchers to

effectively address the research problem logically and as unambiguously as possible; it

constitutes the blueprint for the collection, measurement, and analysis of data ("Organizing Your

Social Sciences Research Paper: Types of Research Designs," 2019). This study will be using a

descriptive research design to obtain information concerning the impact of giving loyalty cards

to the consumers’ buying behaviour. It will be used to describe the characteristics of the

respondents and the factors that influence their buying behaviour.

Statement of the Problem

This study will focus on determining the impact of giving loyalty cards, also known as

loyalty card program to the people particularly the consumers.

Specifically, it seeks to answer the following questions:

1. What is the profile of the consumers as to:

1.1 age;

1.2 gender;

1.3 economic class; and

1.4 occupation?

2. Does loyalty card affect consumers in terms of:

2.1 number of times they visit a store; and

2.2 amount of products that they purchase?

3. What is the importance of loyalty cards to the consumers?

 4. What is the implication of this study to the Business Industry?

IV. Conceptual Framework and Paradigm

Through an illustrative illustration or diagram, show the variables or concepts that
are involved in your paper. Show the connections and relationship and role of these
important constructs in achieving the results of the study. The Input-Process-Output Model
is commonly used.  

Conceptual Framework

A loyalty card program is an incentive plan that allows a retail business to gather data

about its customers. This study aims to determine whether giving loyalty cards to the consumers

affect their buying or purchasing behavior.

Profile of the consumers as to:

age
gender
economic class; and
occupation

Effect of loyalty card to the consumers in terms of:

number of times they visit a store; and

amount of products that they purchase

Importance of loyalty cards to the consumers

 Figure 1. Paradigm of the Study

Figure 1 shows the flow of the study wherein the researchers will be looking for the profile of the

consumers. Specifically, the researchers will look for the consumer’s age, gender, economic

class, and occupation. As shown in the second box in figure 1, the study will determine the effect

of loyalty card to the consumers. The study will determine if having loyalty card affects the

number of times the customers visit a store and the number of products that they purchase. The

study will also find out the importance of loyalty cards to the consumers. Lastly, the researchers

will give the implication of the study to the Business Industry.

This study is anchored on the Social Cognitive Theory by Albert Bandura (1977)which proposes

that people are driven not by inner forces, but by external factors. Thismodel suggests that

human functioning can be explained by a triadic interaction ofbehavior, personal and

environmental factors.

V. Assumptions
This part contains the expected outcome of the study. What results do you
anticipate? It is better that you construct positive results regarding the research that you
plan to undertake. This can be in numbered form, bulleted, or in a paragraph or two.
VI. Timetable
 You may have heard about Gantt Chart of activities. This section contains the same
concept but in simplified and detailed format in order for you to plan things out even more
systematically and productively. A timetable guides you to be able to work on important
activities necessary for you to complete your research. Please be guided by our school
calendar.
VIII. References