A Study on Store Loyalty

BRM Research Assignment

Group 1
Aayushi Pathak
Anurag Sarkar
Bharat Khosla
Mahender Konda
Shantanu Srivastava

Table of Contents
I.

Objective of Research

II.

Brief description of the Research

III.

Research Methodology

IV.

Managerial implications/Contributions

V.

Limitations of the study

VI.

Tentative Time-Line

Objective of Research

To study and determine the store loyalty of buyers based on

demographic and behavioral factors relating to their perception in
the city of Hyderabad.

Description of the Research

The research examines the influence of demographic and

behavioral factors related to store loyalty among respondents
in Hyderabad and on the basis of that determine the
significance of each factor and state what customer loyalty is
based on .

The study will establish a theoretical framework and provide a

model related to the motivations and benefits sought by storeloyal customers which may be used by various stores to acquire
store loyal buyers.

Research Methodology
1.

Factor Determination from literature review.

2.

Sample type: Empirical and quantitative.

3.

Data Collection Method: Questionnaire using appropriate scales(yet to be determined).

4.

Sample size: Sample size will be determined on the basis of total population of selected demography
using sampling methods .

(http://www.indiastat.com/default.aspx,
censusindia.gov.in/Census_And_You/age_structure_and_marital_status.aspx).
5.

http://

Respondents:
.

The number respondents will be chosen based on the sample size determined.

Segmentation is done based on the percentage of demography falling in each age group available
in the population data acquired from above sources.

We are focusing on the age bracket of 20-64 with subgroups as per the population data. (Effects
of store loyalty on shopping mall loyalty,Fazlul K. Rabbanee a,n , B. Ramaseshan a , Chen Wu
b
,Amy
Vinden.
Journal
of
Retailing
and
Consumer
Services.
www.elsevier.com/locate/jretconser).

Age is the only demographic factor taken into consideration.

1.

Statistical Techniques: Discriminant Analysis

2.

Statistical tool: SAS, Microsoft Excel.

Literature Review
Literature review provides us with probable factors which will form the crux of our
research and on the basis of which the questionnaires will be formed.
The various factors taken are1.

Advertising by the store

2.

Physical characteristics of the store

3.

Convenience of reaching the store

4.

Your friends and the store

5.

Merchandize selection

6.

Store personnel

7.

Prices charged by the store

(Subhashini Kaul.A Conceptual Note on Influencing Store Loyalty: Implications for Indian Retailers.
INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD)
Chiu-Han Wang Sejin Ha, (2011),"Store attributes influencing relationship marketing: a study of
department stores", Journal of Fashion Marketing and Management: An International Journal, Vol.
15 Iss 3 pp. 326 -344)

From these factors on the basis of research the most appropriate for the given case will
be chosen.

Sample size

Assuming normal distribution of the population, the mean() and standard

deviation() can be determined.

If we consider a confidence level of 95% and select a sample mean in the

confidence interval of 5, the appropriate sample size can be determined
using the formula:

Analysis
Simple discriminant analysis will be performed on the sample data to
find out the variables which have higher power of discriminating
between loyal and not-loyal buyers.

Managerial
Implications/Contributions

The study will establish a theoretical framework and provide a model

related to the motivations and benefits sought by store-loyal customers
which may be used by various stores to acquire store loyal buyers

Research Limitations

Considering age as the only demographic factor poses limitations to

the model.

However, other demographic factors can also be considered in future

studies to form a more concrete model.

The behavioral factors we have considered is limited, extensive

behavioral factors would also help strengthen the model.

Timeline(Tentative)
Tasks
Project proposal
and presentation
Questionnaire
design
Sampling design
and data
collection &
tabulation
Interim project
submission and
presentation
Data analysis and
interpretation
Data tabulation
and conclusions
Final project
submission and
presentation

27thNov

10thDec

1stJan

8th Jan

22thJan

1stFeb

12thFeb

References

http://www.indiastat.com/default.aspx

Effects of store loyalty on shopping mall loyalty,Fazlul K. Rabbanee a,n ,

B. Ramaseshan a , Chen Wu b ,Amy Vinden. Journal of Retailing and
Consumer Services. www.elsevier.com/locate/jretconser

(Subhashini Kaul.A Conceptual Note on Influencing Store Loyalty:

Implications for Indian Retailers. INDIAN INSTITUTE OF MANAGEMENT

,AHMEDABAD

Ailawadi, Kusum L. and Kevin Lane Keller (2004), Understanding Retail

Branding, Conceptual Insights and Research Priorities, Journal of
Retailing, 80 (4), 33142

Chiu-Han Wang Sejin Ha, (2011),"Store attributes influencing relationship

marketing: a study of department

stores", Journal of Fashion Marketing and Management: An International

Journal, Vol. 15 Iss 3 pp. 326 -344