Introduction
Majority of coffee companies makes recourse to allegiance programs within a defensive set network for customer rewarding. The outcome is a development of programs with the aim of making a lasting relationship with coffee customers affects the management structure in the coffee culture (Punch, 2000, p 75). The management either focuses on communication, satisfaction and quality in a transactional approach in consideration to customer’s life sequence within a relational approach. Actions based on coffee consumer retentions appear to have a goal of avoiding departure. Thus, the risky period detection has essential significance in such organizational actions. While lifetime profitability evidence seems to be plenteous, the research proposal seems to be the well documented empirical investigation on the research topic (Punch, 2000, p 75).
Basing on the preliminary illustrative literature search carried out, understanding consumer behavior shall go in hand with expectations understanding and purchasing trends need. In New Zealand coffee culture, external and internal factors affect consumer purchasing choice making it comprehensive (Lamb et al, 2008, p 216). The factors influencing purchasing decision on the New Zealand coffee culture expresses in different consumer purchasing performance stages. Similar to any other product, the coffee purchase also depends with various influencing factors affecting consumption behavior (Stockford, 2008, p 116). Considerably, that the consumption of coffee increases as income rises hence, coffee is mature with the low level of consumption growth. Although world coffee consumption growth by volume has decreased in comparison to other commodities, vibrant markets such as South East Asian countries are continuously developing especially traditionally tea-drinkers countries.
In South East Asia, New Zealand is the coffee’s gateway. Coffee consumption in New Zealand, though it is a leading trader and producer of coffee particularly Robusta, is facing what other countries are going through – consumers prefer cola beverages over coffee. In outlook, New Zealand has well-developed and long coffee culture in which coffee-chain operation is dominating the busy streets of the city. It is no surprise, therefore, that foreign brands of coffee are continuously penetrating the New Zealand market which brings spendthrift coffee products. New Zealand consumers prefer to the local coffee of which is affordable but has now introduced other flavors such as latte, cappuccino and espresso that cost a fortune. This could mean dissimilar edible familiarity for the coffee consumers, but this does not essentially mean that New Zealand consumers will not patronize these foreign brands. In-line with the micromanagement of McDonalds, McCafé boasts over its value and quality where the beverage prices are affordable (McDonalds online, 2010, p 78).
Research Objectives
The overall aim of the project is to identify the coffee marketing competencies of loyalty card in New Zealand.
• To create optimal communication approach for coffee customers and the market to classify the most appropriate for coffee companies offering loyalty card
• To draw recommendations to agencies in the coffee industry to assist in utilization and acquisition of the loyalty card
• To analyze the current level of coffee consumption of New Zealand consumers
• To explore the factors that shape up the coffee buying decisions of New Zealand consumers
Timing Schedule
• For this research, there is need for a time span to accomplish the project
• There is need for at least one week to analyze the preliminary literature as part of the exploratory research.
• Drafting management problem and objectives will be also accomplished in the first week. Literature review will be drafted in the second week following the problem discovery. Finalization of objectives will be accomplished on the third week.
• In devising the overall research approach and design, one week will be allotted.
• The questionnaire which will be used as the instrument of data collection will be developed in two days time.
• Subsequently, the survey will be organized and conducted in three weeks time span. Necessary correspondence will be accomplished.
• The survey results will be analyzed along with the research theme which will be continuing until the fifth week.
• Evaluation of the data will closely follow and will be done in three days.
• Findings will be initially drafted on the fourth week.
• On the fifth week, the drafted chapters will be submitted to the tutor
Background
Loyalty programs in coffee culture are the plans that normally permit the prevailing consumers to collect free rewards when they make frequent purchases with a specified firm. The prevailing companies normally possess numerous objectives when initiating loyalty programs in the coffee culture that is mainly focused on generating larger profit from the existing program`s shareholders. The set up objectives normally entails the improvement of the prevailing customers’ market knowledge accompanied by leveraging of the corresponding knowledge that mainly aids in the escalation of the company sales that pertains to either the undersold or highly profitable products accompanied services. The company that normally deals with the process of creation of the loyalty programs carries on with the process in order to escalate the prevailing retention and procure frequency as most of the existing loyalty programs commerce when the client enrolls (Punch, 2000, p 78).
Considering the front view of the program, the prevailing organization appropriately tracks the fundamental information concerning the customer in the capturing of the esteem member`s purchases, credits observation of the members that is normally based on the on the set regulations that pertains to the preserved loyalty engine. Loyalty engine of the coffee culture organization normally categorize their esteem members within either the tiers or the groups based on the existing member`s value attached to the organization accompanied by the capability of the members to redeem points that pertains to the prevailing products and services in the circumstances when diverse point levels are attained. The unique types of the consumer behavior that are normally tracked and the subsequently rewarded are peculiar to every industry and the corresponding company and therefore is closely connected to the organization`s productivity drivers (Punch, 2000). The spoof of the prevailing supermarket trolley dash game illustrate is normally spelt out the significant facts that concern to the information gathered by the existing organization loyalty cards (Alistair, 2008, p 116).
Every period the customer utilized a single loyalty cards in purchasing the organization product and services the customer is entered into the competition. The coffee products of the organization is normally gathered due to the prevailing choices which in the end results to the offering the bonus points. The varied performance of the loyalty programs is normally reliant on the comparison of the prevailing customer panel`s perception of the existing purchases. The prevailing limited research information pertaining to the loyalty programs hence it is cumbersome in determining the extent of the loyalty program efficiency (Punch, 2000, p. 78). This has subsequently posed the emergence of the accomplishment accompanied by the failure of the diverse sections of the loyalty cards. The study that pertains to the research concerning the loyalty card normally acts as the regulating factors of the prevailing effects of the program accompanied by the consumer characteristics.
The prevailing research normally tends to be placing the loyalty program within the vacuum that pertains to the void effects originating from existing rival business organizations accompanied by the loyalty programs (Punch, 2000, p. 83). The prevalence of the loyalty cards is normally presented in series that pertains to the best performances that generates fundamental and momentous competitive advantages of the existing organization thereby donating of the loyalty programs to the esteem partners accompanied by the prevailing customers. Nevertheless, loyalty is sometime confused by the satisfaction of the prevailing customers despite that clarification that loyalty of the existing is normally created from the act of satisfaction of the customer. It thus very distinct that there can be satisfaction of the customer without loyalty of the prevailing same esteem customers and hence there is need to measuring of the customers’ loyalty that normally entails the expectation of the future behavior (Punch, 2000, p.83).
Literature review
According to Lamb and fellow writers in their publication essentials of marketing, they depict Loyalty Card as an important tool in the coffee culture. A business that wants to maintain close relations with customers easily achieves the goal using Loyalty Card. In developing a company, it is essential to create permanent mutual benefit between customers and clients. Loyalty Card enhances this relationship. Companies encourage customers to remain loyal to them, and in return, such customers get fair prices and quality goods (Lamb et al, 2012, p. 312). Companies adopt this strategy in an effort to boost sales and make the targeted sales. On their part, customers use the Loyalty Cards because of the many benefits they get. It is easy to make complaints in case of any in the course of using goods. Companies respond quickly as they do not want to lose loyal customers (Brooks, 2010, p. 111). Customers also get gifts from the companies as rewards for their loyalty.
The advantages of Loyalty Cards have led to their increased popularity. Customers now have more than one Loyalty Card pledging loyalty to different enterprises. This allows these customers to get many benefits in the market when they use these Loyalty Cards. Loyalty Cards also help businesses gather data about their customers and market (Telesca, & DigiBiz, 2010, p. 237). Whether in plastic card form or software applet companies can keep a detailed record of their loyal customers. With the recent technology, companies give Loyalty Cards with magnetic bar codes that register purchases to a fixed database upon swapping the card on the point of sale. With this, it is easy for businesses to determine how to produce and how to do business in the future. Customers having many cards do not affect the reliance on this data as businesses and customers have independent cards.
A disadvantage of these cards is that they at times complicate the life of customers. Nowadays, customers have many cards they need to handle and at times forget the codes and other basic information concerning these cards (Lindström, 2012, p. 57). Retailers and businesses benefiting from this have devised ways to check this and keep the cards relevant. Thanks to technology, customers now have their cards installed in their phones. This way they can retrieve it any time they want, and minimize chances of these customers losing it, or failing to register on the point of sale due to forgetting the card (Humby et al 2008, p. 34).
Expansion is a key target for many businesses. Retailers want to take advantage of globalization and do business beyond their borders (Mercuri, 2007). In the past, this hindered utilization of Loyalty Cards. It was expensive for retailers to produce different Loyalty Cards in every country and enhance their utilization. This meant the companies had to have teams to monitor Loyalty Cards in these countries. Currently, the induction of the universal card enables all that want these cards to have them. The universal card has a reader communication that customers and retailers can use to transfer data digitally (Telesca, & DigiBiz, 2010). Conveying such information means that retailers and consumers can register data even on online transactions in the Loyalty Cards database and keep track of transactions.
Loyalty Cards are in the current coffee market an integral part of doing business. This is the main reason retailers and companies are sensitizing their clients to embrace them and apply them while transacting. These businesses have further made it easy to acquire such a card as customers can now apply through their email and get the cards.
Research Methodology
(a) Data Collection Design
Research methodology for the Loyalty card Research proposal entails the different ways in which the research is handled. The research strategy engaged and in addition the research mechanisms used in achieving the goals or the objective for this proposal. Research methodology can be categorized as qualitative or quantities while basing it on the philosophy or the approaches of the study.
For this proposal, however, the academic discipline being the management the methodologies are, therefore, management oriented. It is pivotal that the research has acquired the unbiased ant and the objectivity in nature. In addition, the research has maintained its validity in terms procedure and therefore, has provided reliability it deserves. In the loyalty card, data collection methods include the primary and the secondary methods. Primary data collection for this case refers to the use of the originative from the ground. This is the best suited method for this work (Jonker & Pennink, 2010). To be to the point, face to face interview works best for this kind of job.
The selection of this method is based on the following merits it delivers as compared to other methods earlier listed. it facilitates the delivery of the an effective survey processes due to the ability to provide validation checks and in addition facilitate coding of the in the progression of the of the interview. Other methods however are too restrictive to an extent that the y offer limited chances for this activity. The secondary methods are based on ready found information; therefore, it offers minute space for delivery of what the researcher should give. Note that the responses can be transmitted back to the compiling center with much ease as compare to the other modes like questionnaires where the loads of papers are involved in the process. It also facilitates the use of fewer papers since responses are recorded electronically and saved in audio or even the video form (Jonker & Pennink, 2010).
According to the author, the response to the face-to-face interview is impressive since the interviewer can develop a rapport with the respondent easily and swiftly. In addition, the interviewer would assure the respondent of the clear intention of the data collection suppose he may doubt it in terms of privacy. Data quality is remarkably high since the interviewer can probe into facts and the respondent is available and ready to expound on shallow information or in case of little confusion. However, other methods are not engaging to the respondent due to poor contact between respondent and the interviewer. Face to face interview is important because only the needs to understand questionnaire in and out, therefore, decreasing the chances of ambiguity as in many cases involving the use of the questionnaire. Above the intervention of the interviewer in the process increases liveliness and the respondents read seriousness involved in the process.
Limitations to the study
However, the face to face data collection has few demerits that may affect the outcomes of the data collection process. Though they are minor factors are often insignificant. The interviewer bias would exist in case the interviewer lacks the professionalism demanded of him or her. Facial appearance, gender, tribe, and the tone of the respondent would trigger bias in some case leading to poor outcomes. Face to face interviews do not offer ample time for the respondent. Unlike the questionnaire which is user friendly in terms of time rigidity. Few people would find free time in process of their work to answer to face to face questions (Ketchen & Bergh, 2004).
(b) Sampling Design
The participants in the research shall is the general public. However, in the case of the need for categorical data then the respondents shall be twisted to include the specific nature of the requirements. However, in this case the general nature prevails over the segmented one. The sample size for this proposal shall be determined by the current finance available for the process. The best sample that will offer least cost to and in addition maximize on the efficiency is deemed the best sample size (Ketchen & Bergh, 2004). According the author the confidence levels, administrative requirements, the least level of precision needed shall dictate the sample size chosen for proposal research.
Limitations to the study
In contrary, demerits arise in the use of the systematic sampling method in that estimation of the variance proves to be a hurdle due to the complexity entailed in the process. However these demerits are insignificant as compared to merits the sampling method offer for this proposal (Ketchen & Bergh, 2004).
Acknowledgement of any ethical considerations
Sampling method that suits this research work is the systematic sampling. This is as a result of the following merits it delivers in its use. The sample is extended to the population easily as compared to other methods used. In addition, less time is wasted in the selection of the items to be sampled. According to the author the systematic methods are simple and unbiased as compared to methods.
(c) Data and statistical analysis
Methods of analysis in this case shall entail the statistical analysis tools .the mean, range, mode, variance, standard deviation and the other complex statistical analysis used in the process. Open for the Loyalty card research proposal are dependent on the choice and extend of the research that is carried out. The qualitative research of which is applicable to this proposal research is important. However the qualitative research has the following methods of analysis that should be applied in this research proposal.
Limitations to the study
This is because the research grants an open end nature. In the loyalty card, content analysis would suit the sampling of the data collected. This is referred to objective analysis. Content analysis is very flexible and dependable in analyzing the unstructured data derived from the entire process of the interview. However longitudinal analysis is also applicable on the some data types (Ketchen & Bergh, 2004).
Acknowledgement of any ethical considerations
Coffee culture relates to eating habits of people .most people would not like to share their eating habit stories with other people. Therefore, in the interview process the interviewer must check on his choice of words not to disgrace the interviewee. This is on the basis of ethics and respect.
Reference
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Brooks, R. L. (2010). The power of loyalty: 10 essential steps to build a successful customer loyalty strategy. Irvine, Calif.: Entrepreneur Press.
Ketchen, D. J., & Bergh, D. D. (2004). Research methodology in strategy and management. Amsterdam: Elsevier JAI.
Lamb, C. W., Hair, J. F. & Mc Daniel, C. (2008). Essentials of Marketing. 6th ed. Cengage Learning.
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.
Lindström, M. (2012). Brandwashed: Tricks companies use to manipulate our minds and persuade us to buy. London: Kogan Page.
Mercuri, M. (2007). Beginning information cards and CardSpace: From novice to professional. Berkeley, Calif: Apress.
Mutch, A (2008).Managing Information and Knowledge in Organizations: A Literacy Approach. Boston: Taylor & Francis
Pleasurable coffee moments at McCafé. (2010). McDonalds website. Retrieved on 16 March 2010, from
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Punch, K. F. (2000). Developing effective research proposals. London [u.a.: SAGE.
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