Building a Customer Loyalty Scheme via The Three Commitment Components Model - Coursework Example

Methodology for the Thai square case study on loyalty Background of the study loyalty is essentially about attracting s andretaining them to the brand. It is an aspect of consumer behaviour, according to which customers prefer buying the same product or services repeatedly. It is essential for organizations to focus on needs of their loyal customers in order to prevent them from switching brands. The study concentrates upon analyzing the level of customer loyalty existing at Thai Square restaurants in London. In case of the restaurant business, customer loyalty generally comes from quality of food and beverages served; level of hospitality and comfort that customers experience; and ambience of the restaurant. The case study method has been suitably selected for conducting the research upon the subject matter of customer loyalty existing at Thai Square restaurants. Justification of the method selected The subject matter of the research is largely analytical. The case study method is most suited for analytical content. This method involves describing the main subject, which in this case is customer loyalty. The method also includes different theories pertaining to the subject and its applicability in real life scenario. The case study method is considered to be flexible as it supports both qualitative and quantitative ways of reasoning. The case study method facilitates studying the data that has been collected through questionnaire survey and other secondary information from journals and periodicals. Any research that involves analytical thinking is best suited for the case study approach (Yin, 2009). Features of case study method Researchers have been using the case study method for evaluating different matters relating to social science, human and organizational behaviour and psychological studies. The case study method of analysis can be used. It is a simple method that involves collecting data from different sources using techniques such as, questionnaire method, personal interviews, telephonic interviews and correspondence through mail. These are essentially the primary sources of data collection. The secondary sources, on the other hand, include information gathered from different books, journals and website publications. The information gathered in this manner from different sources is then thoroughly studied (Flyvbjerg, 2006). There are different approaches that can be adopted in order to study the information, which includes statistical analysis, theoretical analysis and comparative studies. Broadly, they can be classified as qualitative and quantitative analysis techniques (Sekaran, 2006). Objectives of the study The Thai Square case study aims to understand the concept of customer loyalty in respect of the restaurant sector of business. Customer loyalty is a behavioural study of consumers and factors that drive them to remain loyal towards a particular brand or service. It also helps in understanding efforts that are taken by the organization so as to maintain their loyal customers. Philosophy of the study The case study method paves way towards developing a philosophy in respect of the research subject. The reason behind establishing a philosophy for conducting any type of research or study is that it helps in collecting, organizing and analyzing data. It shows a definite path regarding the type of data that is needed to be collected and sources where they are likely to be available (Hartley, 2004). The philosophy of the research chalks out fundamental guidelines based on which the study is conducted. In general, there are two distinctive types of philosophies in the field of research. They are discussed as follows (Tobin and Joseph, 2006). Interpretative philosophy The interpretative philosophy considers the fact that theories of science are subjective. In the interpretative approach, alternative models of reality are perceived. The theory supports the idea that the same concept can be interpreted differently by separate individuals. The difference gets created through factors such as, level of knowledge and training, impact of society and its thinking, exposure to different matters and limitations faced during the study. The theory adequately states that it is possible to obtain different results when the same study is done under a different environment (Kazdin, 2003). Hence, as per the interpretative approach, it can be said that the study of customer loyalty in Thai Square is subjective of the thinking of researchers involved in the study, type and quality of the information gathered and its relevance. It is probable that if the same study is conducted few years from now, the results would vary significantly as behaviour and preferences of consumers would change alongside the mode of operations at Thai Square. Therefore, each type of research study is subjective of its unique characteristics. This type of research mainly includes qualitative survey techniques (Mukherji and Albon, 2009). Positivist philosophy This approach is based upon manipulative and experimental techniques. This theory states that there must be an adequate theory based upon which a research or a study needs to be conducted. There are two methods that have been identified in respect of the positivist approach, namely experimental and descriptive (Johnson and Onwuegbuzie, 2004). In experimental approach, subject matter of the study is applied under different scenarios to determine its truthfulness. The experimental approach also often helps in identifying new ideologies. The descriptive approach involves providing elaborate understanding regarding the matter and explaining it under different circumstances. The positivist approach involves both qualitative and quantitative techniques of survey (Blaxter, Hughes and Tight, 2006). Research philosophy implemented From the above discussion on different types of philosophies for conducting a study, it is clear that the positivist approach is deemed to be most suited for this case analysis. The study of customer loyalty at Thai Square restaurants involves both qualitative and quantitative techniques, which are well supported by the positivist approach. Also, the interpretative approach may render concept of the study vague as the same philosophy would be examined from a different point of thinking, thereby leading to separate understandings and results. The positivist approach suits objectives of the study as it emphasizes upon developing a suitable theory, on the basis of which the entire study would be constructed (Gratton and Jones, 2010). Approach to the study The approach adopted for conducting this study is inductive. The inductive approach helps in converting observations and data collected into relevant findings and conclusions. The inductive approach incorporates establishing relationships between different variables to understand the level of dependency existing between them. Inductive study is found to support most types of researches, which are based upon case study method. The inductive approach also allows individuals conducting the study to incorporate their own ideas and thoughts relating to the subject (Saunders, Lewis and Thornhil, 2009). Data collection methods The research upon customer loyalty at Thai Square restaurants has been majorly done on the basis of primary data collection. Secondary data was also collected and used in the study so as to develop an in-depth knowledge about the subject matter. Data collection is one of the most important aspects in a successful research study. The contribution of information that is collected through the data collection technique is of great importance in forming ideas about the subject and exploring the same. Reliable data helps in maintaining appropriateness of the study, thereby supporting accurate findings (QAA, 2012). Primary data collection Primary data refers to the information that has been collect afresh from different sources and are original in character. Primary data is helpful in providing first hand information regarding subject matter of study. It is considered to be more reliable as better analysis of the subject matter gets affected (Gerring, 2004). Primary data can be termed as direct-on-field research. In this research, primary data was collected largely through questionnaire survey, personal interviews and direct observations. The questionnaire survey was conducted on the basis of direct physical delivery of questionnaires to employees and also e-mailing them. The respondents of the questionnaire survey include members of the management team of Thai Square and customers. Direct interview was also conducted with some of the respondents. It was seen that respondents preferred direct interview more than the questionnaire survey as it was less time consuming and they had flexibility to give response alongside working (Baxter and Jack, 2008). Secondary data collection method Secondary data largely includes the information that is gathered from readily available sources. It largely includes studies and analyses that were conducted previously upon the same subject matter by different people. For this study, secondary sources of data collection cover information from journals, manuals, periodicals, company reports and different types of online publications. Even though secondary data is not as reliable as primary, yet is helpful in providing additional information required for conducting the study. Sometimes it is seen that through questionnaire technique and other direct approaches, respondents are not comfortable in revealing important details (Cohen, Manion and Morrison, 2013). Moreover, due to constrain of time, exhaustive research using the primary data collection technique becomes difficult. As a result, more reliance gets developed upon secondary data collection techniques. However, while collecting information from secondary sources, care was taken that the source of information is not faulty. Complete efforts were made in order to generate reliable and fair information for supporting this study (Patton, 2005). Population sampling and size Population sampling is an essential aspect in any type of study, which involves selecting a small group of respondents from a larger cluster. The number of respondents selected depends upon nature of the research and level of exhaustive study being done. The respondents for this research can largely be divided into two groups, namely the managers and the customers. Thai Square restaurants have 15 managers hailing from different restaurants at Thai Square. Of them, only one manger from Windsor was interviewed personally. Semi-structured interview was also conducted with some of the other mangers at Thai Square. Majority of the information was collected through questionnaire survey, which was distributed to managers of certain Thai Square restaurants and their customers. Thai square being one of the highly favoured restaurants in London attracts a lot of customers. Based on the survey conducted upon the number of customers served at 15 Thai Square restaurants in the third week of October 2013, it can be inferred that approximately 36,872 customers visit Thai Square per week. The population size for the study includes three restaurant managers for semi-structured interview and approximately two hundred customers for the questionnaire survey from Thai Square in Windsor, Richmond and South Kensington. The response rate from customers was 40 out of 200. The feedback that was, thus, generated through questionnaire and personal interview techniques was analyzed both qualitatively and quantitatively to form finding for the study. Sampling technique Stratified sampling technique was used to conduct this study. In this technique, the researcher divides the entire population into sub-groups. This type of sampling technique is largely used when there are different groups involved in the study. The nature of survey conducted for each group is distinct from the others. In this research, type of questions and information collected from managers and customers differ as their nature and participation interests vary. Under the stratified sampling technique, it is possible to highlight information that is gathered from the different groups (Eckstein, 2000). Thai Square case study involves collecting data from two distinct groups of respondents, which are managers and customers. The managers were largely questioned upon matters such as, efforts taken by the management for creating customer loyalty, different methods that are expected to retain customers and importance of customer satisfaction. On the other hand, information gathered from the customers represent their level of satisfaction with quality of food and services offered at Thai Square, differences that they observe between Thai Square and other restaurants and factors that would drive them to visit Thai square again. Plan of analysis The first step in conducting this study was to develop adequate knowledge regarding the subject matter of customer loyalty. Accordingly, a plan for collecting data from the Thai Square restaurants was decided upon. This included developing a format for the questionnaire survey and interviews. The information collected was then interpreted for developing suitable recommendations. The data gathered from different sources were scrutinized and edited in order to check for omissions and incompleteness in responses received from the managers and the customers. Analysis method includes descriptive charts and tables. Statistical analysis was put to use in this respect. The information was also studied on the basis of relevant literature and theories pertaining to consumer loyalty (Saunders, et al., 2011). . Questionnaire method Questionnaire serves as an important tool in primary data collection technique. There are basically two types of questionnaires formulated for conducting a study— open-ended and close-ended questionnaires. Close-ended questionnaire technique was adopted for conducting this research. Close-ended questionnaires are easily perceived by respondents as the questions are more or less direct (Bryman, 2012). This type of questionnaire survey is considered to be less time consuming. In addition, it becomes easier for researchers to arrange the feedback that is collected when questions are simple. There were two different questionnaires formulated for this case study intended for two separate groups of respondents. The questionnaires were formulated in a manner that helps to generate adequate information regarding the subject matter of customer loyalty with respect to Thai Square restaurants (Dubois and Gadde, 2002). Ethical considerations While conducting a survey that incorporates questionnaire technique and direct interviews, it is important to make sure that identity of the respondents does not get revealed. The opinions provided by the respondents may affect sentiments of other groups. During the survey, respondents were made aware of the fact that their identities will not be revealed in course of conducting the research. Their individual responses will also not be highlighted in the study as the research will involve collective analysis of the data collected. When respondents are assured about these aspects, they are more open towards providing accurate responses (Bryman, 2006). Limitations to the study Studies, which are largely conducted on the basis of assumptions and perception of others, are bound to face certain limitations. The limitations in this study largely pertain to lack of adequate reliable data. Majority of the respondents were seen to be diplomatic in their responses. Responses were also found to be vague and incomplete. The managers of Thai Square restaurants were seen to be less cooperative while providing relevant data in respect of the survey. Time was also a major constrain in conducting this research. Due to unavailability of sufficient time, a large number of respondents could not be included in the study. Many respondents also failed in submitting the filled questionnaires, which led to a shortage of relevant data for this research work. It is observed that students face lot of difficulties while collecting data for academic research as most organizations are unwilling to let out information pertaining to their operations. Reference list Baxter, P. and Jack, S., 2008. Qualitative case study methodology: Study design and implementation for novice researchers. The qualitative report, 13(4), pp. 544-559. Blaxter, L., Hughes, C. and Tight, M., 2006. How to Research. New York: McGraw-Hill International. Bryman, A., 2006. Integrating quantitative and qualitative research: how is it done? Qualitative research, 6(1), pp. 97-113. Bryman, A., 2012. Social research methods. Oxford: Oxford university press. Cohen, L., Manion, L. and Morrison, K., 2013. Research methods in education. London: Routledge. Dubois, A. and Gadde, L. E., 2002. Systematic combining: an abductive approach to case research. Journal of business research, 55(7), pp. 553-560. Eckstein, H., 2000. Case study and theory in political science. Case study method, 1(1), pp. 119-164. Flyvbjerg, B., 2006. Five misunderstandings about case-study research. Qualitative inquiry, 12(2), pp. 219-245. Gerring, J., 2004. What is a case study and what is it good for? American political science review, 98(2), pp. 341-354. Gratton, C. and Jones, I., 2010. Research Methods for Sports Studies. UK: Taylor & Francis. Hartley, J., 2004. Case study research. Essential guide to qualitative methods in organizational research, 1(1), pp. 323-333. Johnson, R. B. and Onwuegbuzie, A. J., 2004. Mixed methods research: A research paradigm whose time has come. Educational researcher, 33(7), pp. 14-26. Kazdin, A. E., 2003. Research design in clinical psychology. Boston: Allyn and Bacon. Mukherji, P. and Albon, D., 2009. Research Methods in Early Childhood: An Introductory Guide. London: SAGE. Patton, M. Q., 2005. Qualitative research. New Jersey: John Wiley & Sons, Ltd. QAA, 2012. Student Experience Research 2012. [pdf] QAA. Available at: [Accessed on 30 April 2014]. Saunders, M. N., Saunders, M., Lewis, P. and Thornhill, A., 2011. Research methods for business students, New Delhi: Pearson Education India. Saunders, M., Lewis, P. and Thornhil, A., 2009. Research Methods for Business Students. New Jersey: Pearson Education. Sekaran, U., 2006. Research methods for business: A skill building approach. New Jersey: John Wiley & Sons. Tobin, P., and Joseph, K., 2006. The Use of Stories and Storytelling as Knowledge Sharing Practices: A Case Study in the South African Mining Industry. [pdf] University of Pretoria. Available at: [Accessed on 30 April 2014]. Yin, R. K., 2009. Case study research: Design and methods. London: Sage. Read More