Managing Customer Loyalty - Research Proposal Example

Research Article Critique: Managing Customer Loyalty Student's Name Instructor’s Name Course Date 1.0 Introduction This area of study is concerned with investigating the perceptions of consumers towards the manner in which companies conduct their affairs particularly at the customer contact point. I will zero in on review of three pieces of work published on or after the year 2008. All the articles involve primary collection of data and scientific analysis of the same. This report will give a detailed account of how these research works were conducted with special interest to objectives, hypothesis applied, data collection methods, research design adopted in each, findings and limitations that pertained to the research study. The primary aim of this investigation is to give a critique to the choice and methodologies so applied citing significant flaws on them. This report will also give suggestions to more prudent methodologies that could have been used to come to findings that are more objective. For purposes of similarity, the articles analyzed herein are based on Asia Pacific context. This decision has been taken to allow greater levels of comparability. I have also assumed that consumers in a certain geographic locality are likely to use same sets of market information in their buying behaviors. The rationale is that consumers from one locality have numerous similarities in perceptions, behavior, tastes, and preferences and hence it would be expected that a research of this kind would yield results with a reasonable degree of correlation. The recency of the articles helps to reduce the effects of rapid changes in customer behavior and perceptions. 2.0 Research Design Research design answers the logical problem. It must not be confused to a mere plan of work for the study as this plan is founded on the broad design itself (Cook & Campbell 1979. Research design enables the researcher to provide an objective answer to the initial problem in a manner that is unambiguous. 2.1 Types of Research Design There are three types of research design. These are: (a) Descriptive research - Under this approach, the research is aimed at gathering facts concerning the phenomenon under study. It answers the ‘what’ question. (b) Explanatory research - It is applied to research studies that focus on giving answers related to reasons for certain parameters to hold. It answers the ‘why’ question. (c) Causation research - This research aims at identifying the contributing factors to a certain phenomenon. The aim is to infer the causes of certain condition or hypothesis in an environment. Then, some inferences are drawn either deterministically or probabilistically from the information gathered (Cook & Campbell 1979). 2.2 Characteristics of Research Design 2.2.1 Problem statement This statement articulates the focus of the study and is formulated before the study is undertaken. It defines the broad problem area of concern for which the research is to provide answers. 2.2.2 Types of variables A variable is simply defined as anything that is capable of taking changing values (Sekaran, 1992). Variables can range from dependent, independent, moderating, or mediating. 2.2.3 Research objectives The research objectives are a breakdown of the purpose of the research. They highlight the specifics of the study and assist the researcher not to lose focus of what is required of him/her (Groves & Couper 1995). 2.2.4 Research Questions The research questions should help reach out to the objectives of the research exercise. In other words they should be formulated from the objectives stipulated for the study (Jones & Thurstone 1955). They act as a guideline to the researcher as well as users of the research report on what the focus for the study is. 2.2.5 Hypothesis Hypothesis is widely considered as an educated guess. It the proposition that the researcher holds before the study and that is subject to approval or disapproval upon completion of the study (Cook & Campbell 1979). 2.2.6 Data Collection methods These are the techniques that the researcher uses to gather data from the field. They include questionnaires, interviews, observation among others. The method to be used is the discretion of the researcher guided upon considerations of objectives of the research and the characteristics of the population of study. 2.2.7 Data Analysis Refer to the scientific techniques that the researcher uses to give meaning to data collected. They help convert the raw data into a more useful form that can allow for comparisons and easy interpretation by subsequent users of the research findings. 2.2.8 Findings Refer to the results of the research study. 2.2.9 Limitations Limitations emanate from factors such as the type of population being studied and sometimes the type of research design chosen (Myers & Warner 1968). Demographic factors considered in data analysis may also pose limitations of the study. 3.0 Critique of the Three Articles 3.1 Article 1 (Thomas & Vitry 2009) This study aimed at determining the perceptions of customers on the usage of generic medicine. The study entailed a survey of consumers visiting pharmacies in Kuala Lumpur and Selangor, in Malaysia. The survey was a fact gathering undertaking trying to find information of the number of Malaysia nationals using generic types of medicine and the extent to which they felt that the generics were effective. The study would establish the extent of loyalty and trust they attached to the brands and the degree to which they would be willing to continue using them. The research design chosen was of descriptive nature that was appropriate for this kind of study. This is on the rationale that the survey sought to provide information on what was happening in Malaysia’s drug market. Demographic factors were given due consideration by being incorporated in analysis of the data so gathered, and this was appropriate in giving a detailed account of facts. These factors were age, gender, and education level. A number of weaknesses can, however, be pointed out in the research study. One of them is the small sample size that was applied. A sample of 203 consumers taken to represent a whole country would easily lead to biased findings. Secondly, the study did not give information on the relationship between a generic brand and the manufacturer. In other words, the researcher assumed that consumers treated generics from different manufacturers the same way. Further studies could be important to address the feelings of customers on particular manufacturers of drugs. This would explain loyalty of consumers to the firms in drugs industry as opposed to brands themselves. 3.2 Article 2 (Ernst & Young 2010) What prompted this study is the fact that most customers across the Asia pacific region were using at least more than one bank to satisfy their financial needs. The study involved a survey of 4700 customers who were asked to explain what motivated them most towards continuing their relationship with their current banks. The study was correctly approached as both descriptive and explanatory. In the descriptive aspect, the study sought to determine the degree of customer loyalty to their main banks. In the explanatory aspect, the study sought to give reasons and how these factors played out in influencing customer behavior. One major weakness that relates to this study is failure to incorporate the income level of customers in crafting samples and final analysis. It would be expected, under normal circumstances changes in the level of income to be interrelated to switching of the banking partner. The rationale is that banks are many cases informally categorized by the financial status of the clients they serve. 3.3 Article 3 (Dae, Ki & Stephen, 2009) This study sought to determine the factors that contributed to customer loyalty in the gaming video industry. First, the researcher wanted to test the relationship that subsists between customer satisfaction and customer loyalty. Then the survey tested impact of other variables in determining the level of customer loyalty. Finally, the study was to provide an explanation on how various factors studied affected consumer loyalty in this industry. The research had two dimensions in it and that is it was both descriptive and explanatory. Firstly, the survey determined the factors that contributed to customer loyalty besides the traditionally known customer satisfaction. Secondly, the study explained the interaction between the various factors in influencing customer loyalty. The major weakness in this study is the fact that it concentrated on giving details of the correlations of various factors affecting customer loyalty rather than assessing the degree to which each factor affected customer loyalty. In addition, the study failed to provide objective recommendations on what players in the industry should improve on, to increase loyalty of their current customers. Findings of this study could prompt topics for further studies. For instance, a study should be taken to explain the reasons as to why satisfaction does not contribute significantly to loyalty in this industry. Reasons for this deviation from other industries would prove a source of curiosity not only for market players but also marketing analysts. Further studies are important to isolate trends in levels of income of customers and then study customer loyalty. The characteristics that could be important for bankers would be those that they can influence. 4.0 Appendices 4.1 Table A - Article 1 Problem Statement Little information is available concerning Consumers’ perception of generic medicines Malaysia. Hypothesis Consumers have a low opinion for generic medicine. Types of Variables Independent variables that were considered were age, gender and education level. Research Objectives To assess Malaysian consumers’ awareness of generic medicines. To assess their willingness to use them. To determine the reasons behind their choice. Type of Research Descriptive because it was involved in finding facts on the ground. In other words, it aimed to answer the question “What is the consumer’s perception on generic medicine.” Data Collection Methods Interviewer-administered questionnaire Data Analysis Data was analyzed using SPSS Version 15.0 Descriptive statistics were generated for each question in the survey. Findings 137 consumers (67.5%) did not know what generic medicines were. Among the 86 consumers who had used generics before, 79.0% felt that generics worked well. Majority of those who had not used generics felt that they were not as effective or as safe as brand name products. limitations Thirteen surveys could not be included in the analysis because the interviewer failed to ask one or more questions leading to incomplete responses. 4.2 Table B - Article 2 Problem Statement Banks are not aware of what customers look for when deciding to continue or discontinue with their current banks. Hypothesis Type of services offered by a particular bank dictates the loyalty its customers will demonstrate to it. Types of Variables Dependent variables that were considered included the various services banks offer like online banking, Research Objectives • To determine if customers across Asia Pacific were willing to deepen their attachment with their banks. • To determine the factors that make customers become more loyal to their current banks. • To establish what customers want most in their interactions with their banks. Type of Study Descriptive because it exemplified how consumers treated their banks. Explanatory because it explained reasons for the treatment banks received from their customers. Data Collection Methods Internet based questionnaires. Data Analysis Data was analyzed using SPSS. Findings Over 50% of customers in Australia, Singapore, Hong Kong and New Zealand have a banking relationship of more than ten years. 79% hold two or more products with their main bank. 12% were planning to change their banks. New customers generally have low levels of loyalty to their banks.. 20% of people using mobile banking felt the cost of using this service was too high. 52% valued personalized attention. Limitations The survey did not consider age, income or gender of respondents. 4.3 Table C - Article 3 Problem Statement Satisfaction does not seem enough to influence customer loyalty. Hypothesis There is a positive and direct relationship between customer satisfaction and loyalty in sport video gaming. Types of Variables Independent variables thought to be having impact on the response are age and gender. Dependent variables were identified as attitude, satisfaction, skill, and loyalty. Research Objectives To establish whether gaming skills play a critical role in developing loyalty. To determine other factors that play central role in developing customer loyalty. Type of Study Descriptive since it was to tell the other factors besides gaming skills that affected development of customer loyalty. Explanatory since it sought to tell how gaming skills contributed to developing customer loyalty. Data Collection Methods Internet based questionnaires Data Analysis a confirmatory factor analysis (CFA) Structural Equation Modeling (SEM) Findings Correlations among constructs ranged from 0.52 to 0.72, providing evidence that attitude, satisfaction, skill, and loyalty are distinct constructs. Impact of attitude on skill is significant (H4; 0.69, z = 9.38) Attitude, skill, and satisfaction explained 47% of the variance in loyalty. Satisfaction did not play significant roles in predicting skill and loyalty. Limitations Significant characteristics of respondents were not considered in analyzing results like country of origin and education level. 5.0 Works cited Cook, TD & Campbell DT (1979). Causal Interference and the Language of Experimentation: Design and Analysis Issues for Field Settings, Boston, Houghton Mifflin Company. Dae, HK, Ki, TK & Stephen, RM (2009). Revisiting the Satisfaction-Loyalty Link in the Sport Video Gaming Context: The Mediating Role of Consumer Gaming Skill, Submitted exclusively to Sport Marketing Association Annual Conference 2009 September. Ernst & Young (2010). ‘Pursuing Customer Loyalty’, May 2010 Groves, R & Couper, M (1995). ‘Theoretical Motivation for Post Survey Non-response Adjustment in Household Surveys’, Journal of Official Statistics, 11(1) 93-106 Jones, LV & Thurstone, LL (1955). ‘The Psychophysics of Semantics’, an Experimental Investigation, Journal of Applied Psychology, 39, 31-36. Myers, JH & Warner, WG (1968). ‘Semantic Properties of Selected Evaluation Adjectives’, Journal of Marketing Research, 5, 409-412. Sekaran, U (1992). Research Methods For Business: A skill Building Approach, New York, John Wiley. Thomas, R & Vitry, A (2009). A Consumer’s Perception of Generic Medicines in Community in Malaysia: Southern Med Review, 2(2), 20-23 Read More