Marketing research proposal Essay Example

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Marketing Research Proposal- Factors determining Customer Loyalty in Wal-Mart

1.0 Conceptualisation of the research problem

1.1 Background and rationale of the study

In today’s competitive world, retaining existing customers has become one of the most common trends on many organizations across the world. Taking this into consideration, most of these organizations are striving hard for the purpose of making sure that customers come back to their organizations. According to Lowenstein (2005), there are various factors that influence customer loyalty in an organization. In this light, this study to analyse the factors influencing customer loyalty in Wal-Mart, the largest retailer in the world.

1.2 Statement of research objective

This study seeks to analyse the various factors affecting customer loyalty in Wal-Mart. For the purpose of achieving this aim, this study will consider the following research objectives;

  1. To analyse the impact of pricing on customer loyalty at Wal-Mart

  2. To analyse the impact of service quality on customer loyalty in Wal-Mart

  3. To examine the impact of advertisement and sales promotion on customer loyalty in Wal-Mart.

1.3 Literature review

Various marketing scholars have explained the concept of customer loyalty as well as factors affecting it. For instance, Butscher (2002) define customer loyalty as the customer as well as behavioural tendency of customers to have favour for a specific brand or service over others that are available in the market. According to Lowenstein (2005), customer loyalty typically encourages customers in making purchases more consistently. This, according to Andreassen (2009), explains why creation of customer loyalty is among the first priorities of all marketers. As explained by Butscher (2002), there are various factors that influence customer loyalty in various stages of purchase of products of services. However, the main factors as described by Andreassen (2009) include price of the product or service, service quality, as well as advertisement and other promotional measures. When it comes to price, Szwarc (2005) argues that most of the customers especially in the retrial industry are usually price sensitive. Therefore, he states that customers are typically attracted to cheaper alternatives, which in return influences customer loyalty to a considerable extent. This explains why the price strategy has been among the most common marketing strategies in most organizations across the world. In regards to service quality, Andreassen (2009) explains that when customers get quality services, chances of coming back for the same or more service is typically higher. As a result, customer loyalty is created, as emphasised by Lowenstein (2005). Lastly, when it comes to advertisements and sales promotion, Butscher (2002) indicate that when an organisation puts its promotional strategy in place, customer loyalty is likely to be created. This claim is supported by Lowenstein (2005), who argues that the more effective the promotional strategy, the more customers attracted.

1.4 Research framework

Studying various factors affecting customer loyalty in Wal-Mart may be viewed from both marketing as well as management perspective. Taking the marketing perspective into consideration, Andreassen (2009) defines marketing as the process of enhancing the sales of products and services through the use of various marketing strategies. Therefore, for this particular study, understanding various factors affecting customer loyalty will significantly help marketers in defining the most effective marketing strategies for the purpose of increasing their sales. This is not only for marketers in Wal-Mart, but in other organizations across the world, especially in the retail industry. When it comes to the management perspectives, understanding the various factors affecting customer loyalty can assist managers in allocating resources as well as implementing the best strategies for increasing customer loyalty.

1.5 Definition of terms

The following two terms will be used widely in this study. While they are not new terms, it is pertinent for the readers of to have an in depth understanding of the terms for the purpose of making maximum use of this study.

Customer loyalty— Customer loyalty refers to the attitudinal as well as behavioural tendency of favouring one brand or company over other existing in a given market.

Quantitative study— Quantitative study refers to a study that employs quantitative methods for the aim of attaining research objectives. Quantitative data refers to data that take numerical forms.

1.6 Scope and limitations

There are possible limitations of this study. First, the researcher may be bias when it comes to selecting the participants. As a result, this may compromise the reliability as well validity of the data collected. Additionally, this study faces the limitations of the participants not giving correct information. Incorrect information implies that the data collected may not be reliable when it comes to achieving the aim of the study.

2.0 Research methodology

2.1 Description of data

Both primary as well as secondary data will be used in this study. Precisely, when it comes to primary data, questionnaires will be used in collection of primary data from various customers of Wal-Mart. The choice of questionnaires as the data collection tool is motivated by the need to collect quantitative data from various participants. As explained Kothari (2005), questionnaires are particularly useful as the researcher can be in a position of collection data from many participants within a short period of time. Additionally, data collected through questionnaires can be analysed easily through various computer software. When it comes to secondary data, the researcher will have to consult a wide range of literature including books and journals for the purpose of coming up with a comprehensive conclusion.

2.2 Research design

As explained above, questionnaires will be used in to collect primary data. In this light, 200 questionnaires will be issued to customers of Wal-Mart with an expected retrieval rate of 90 percent. The researcher will stand at the entrance of the Wal-Mart supermarket in New York, where he will request the customers to take part in the filling the questionnaires.

2.3 Scheme of data analysis

After data collection, the researcher will employ various techniques of analysing the data collected. Specifically, statistical, frequency, as well as trend analysis will be used in analysing the data collected. Taking this into account, the researcher will consider using SPSS software for the purpose of analyzing the data easily and accurately. Through this, the researcher will be in a position of understanding the various factors affecting customer loyalty in Wal-Mart.


Andreassen, T.W. (2009). ‘What drives customer loyalty with complaint resolution?’, Journal of Service Research, 2(1), pp. 324-32.

Butscher, S. A. (2002). Customer loyalty programmes and clubs. Aldershot, England: Gower.

Kothari, C. R. (2005). Research methodology: Methods & techniques. New Delhi: New Age International (P) Ltd.

Lowenstein, M. W. (2005). Customer retention: An integrated process for keeping your best customers. Milwaukee, Wis: ASQC Quality Press.

Szwarc, P. (2005). Researching customer satisfaction & loyalty: How to find out what people really think. London: Kogan Page.

Appendix I: Research Timetable


Conceptualization of the project

April 2016

Data collection

Data Analysis

June 2016


July 2016

Report writing

August 2016

Appendix II: Research Budget

Estimated cost