3.0Research Methodology

The study aimed to identify if there is any relationship between loyalty programme and customer retention at Currys UK. To establish the concept of customer retention and its implication on store’s profitability, researcher has identified other areas of business such as branding, customer service, customer’s intention to switch etc. It was imperative for the researcher to select specific methods before carrying out the research. Hence, researcher had decided semi-structured methods. Even though there are elements within the research which could have been analysed through empirical research, however, it would not have been possible to incorporate customer’s opinions. Without customer’s opinion on loyalty, the research would have been left open to questions. Hence, researcher took semi structured approach where literatures on loyalty and retention have been identified and analysed first. It was then tested through a field research where customers were given a set of questions to express their feelings and opinions on loyalty and retention. Researcher felt that this methodology was best as it allowed literatures to be tested on a field level. It was easy to collect data through a survey from customers and analyse it in computer programme to reach conclusion. To ensure the study will produce the desired results, researcher has testified the questionnaire on a small sample. Data collected through this pilot study was analysed in computer program to ensure it generated the outcome. This methods of collecting and testing sample data before the actual survey proved to be very effective as it ensured the reliability of the system and questionnaire. The following sections of the research describes different approaches, how the research was designed, what strategy was adopted to collect and analyse data for this study.

3.1 Research Approach

The sample population for this study consists of potential customers and employees who work at Currys Leyton and Stratford branch. Researcher has approached customers during busy period, more specifically over the weekend to collect data. It was imperative to have relaxed and flexible approach in order to collect quality data. As there was no obligation on the store management to release any information to researcher, flexibility and networking skill had opened a new door to researcher. Researcher had managed to convince employees from the social circle to give information on customer retention and loyalty. Relax attitude of the researcher also allows customers to understand that this study is not for marketing purpose as some customers felt their information might be used for direct marketing (Miles and Huberman, 1994). Researcher approached to he customer and employees with explanation, why the study is being carried out and the outcome sought from the study. As there was no pressure on customers or employees, they were happy to assist the researcher to fulfil academic commitment. There are specific reasons why data was collected from these two locations. Firstly, the location was close to researcher residence and secondly it was appropriate to collect data from these locations as the store gets very busy during the weekend. Currys being in the heart of largest shopping centre in Europe, there was a great influx of customers who were eager to fill out the questionnaire which increased the quality of the data collected. Researcher had given opportunity to customer to opt out of the survey to ensure customer does not feel obliged or pressurised. On the other hand, data has been collected randomly to remove biasness (Saunders et al., 2007), however, it would have been better if data was collected equally from male and female customers.

3.2 Research Strategy

Throughout the study, researcher has adopted different strategy to meet the deadline. The strategy adopted was based on the circumstances where researcher has spent a lot of time negotiating with friends to convince to take part in the survey. Apart from networking, other strategy includes, cost reduction, time management, in-depth search strategy in order to ensure every aspects of the study is covered. To reduce the cost of travel, researcher has spent the whole day at the Stratford and Layton shopping centre to collect data. This enabled researcher to collect lots of data in a single day and saved travel cost. To ensure the timely delivery of the project, researcher has adopted time management strategy where the whole research has been divided into section. It was important to put a deadline for each section of the study. This enabled researcher to complete individual sections and link it with the next section, making sure there is a thread running throughout the study. On the other hand, researcher had allocated time to carry out in-depth research on the subject topic, specifically in literature review section where researcher went to different databases and collected articles which is related to the study. The articles were read and screened to ensure appropriate articles were taken into consideration which had similar topic. This strategy enabled the researcher to formulate the questionnaire and linking the questionnaire with the literature review section. This search strategy enabled the researcher to identify, compare and contrast different articles and give own opinions. Researcher felt the need to adopt a supportive strategy to ensure management of Currys do not feel disturbed by the presence of the researcher outside the store. Hence, researcher had agreed verbally that the survey will stop taking place if management request to do so. On the other hand, strategy to support the customers while filling out survey questionnaire enabled researcher to build a report with the customer. As researcher has offered assistance to fill out the form for few customers, they felt that their opinion was valuable for this study. Researcher also felt the need to be organised to ensure data is collected on time, secured and recorded appropriately. Hence, researcher used stop watch, pen, pencils while collecting data and highlighter while reviewing literature. To ensure the authenticity of this research, researcher has saved and printed a handful of articles and secondary data which has been incorporated with this study. Researcher had adopted a friendly attitude while collecting data from customers and employees. Customers were greeted and explained what is expected from them, brief information about the research and outcome. Researcher also answered questions from the customers and employees to the best of his knowledge in the field of customer retention and loyalty. Moreover, participants have been given options to stay anonymous and have not been asked to personally sign the questionnaires. Some questionnaires had been completed by the researcher, as customers had shopping bags with them and did not want to leave it on the floor. Some customers did not feel confident to read and write and preferred the researcher filling out the form on behalf of them. Once the questionnaire was completed, researcher showed his gratitude by thanking every customer s and employees who took part in the research.

3.3 Data Collection Methods

It is important to collect appropriate and quality data for a research. The viability of the research depends on the source, authors, participant’s viewpoint (Rea and Parker, 2005). While searching for relevant data and journals, researcher has adopted primary and secondary data collection techniques. For example, primary data has been collected through the survey to identify if there is any deviation between the literature review and actual response from the customers. On the other hand, secondary data collection enabled researcher to have a holistic idea about the subject topic. To ensure the correct data is sourced and analysed, researcher used online sources. For example, Business Source Premier, Emerald, Science Direct, Sage and other database available using library account. Other search engine such as Google, Yahoo has also been used to search information in this area using key words i.e. retention, customer loyalty, barriers of loyalty. While collecting qualitative information from the customers and employees, researcher used notepad and pencils to log what has been said during the meeting and survey. To maintain confidentiality of customers, researcher did not use voice recorder, even though it would have saved researcher time to write it on the notepad. Primary data has been collected though a survey (Appendix A and Appendix B) which holds information about customers attitude towards brand and loyalty, what matter to them most and how Currys can bring customers back to the store. After the data had been collected through the survey, it was entered into MS Excel. Data was coded to ensure customer’s anonymity. As the sample size was 60, it took researcher few days to enter it into the system and for data protection, researcher used password to protect the data or others having access to the data. Researcher also ensured that written questionnaires were locked in a filing cabinet which nobody had access to without researcher. Following recommendation from Silverman (2004), researcher has adopted this particular method for the following reasons.

Eliminate biasness- Researcher had collected data from both primary and secondary sources as it ensured correct data is sourced from the onset. It also ensured the research is free from biasness i.e. data from one source.

Diversification- Researcher wanted to have diversification in the study. For example, questionnaire had enabled the researcher to capture diversified opinions from customers and employees on loyalty programme and retention.

Availability of data- Semi structured research methodology is one of the best methods to pursue social research. Hence primary and secondary data collection methods were adapted to as customer retention through loyalty programme is a new concept and there is no or very little data available on the public domain to identify issues in this area. Hence it was imperative to collect the data manually to identify gaps and golden standards, i.e. customer’s acceptance of brand than loyalty.

Fear factor- Collecting data from a group of employees were relevant as it saved time for both employees and researcher. It also ensured that employees do not feel intimidated by managers being present in the meeting. One meeting took place outside the store and another in the restaurant where employees were relaxed and did not fear intimidation. It also ensured that confidentiality of the employees was maintained.

3.4 Limitations of the chosen methods

Even though there has been a rigorous data collection method in place, however the methods had its own limitations. None of these methods are fault proof and does not guarantee free from biasness. It was difficult to hand out questionnaire to equal number of male or female customers, leaving the research open to question on gender biasness. The data has been collected from only two stores, leaving the study open to question, is this enough to interpret the success of Currys overall programme. On the other hand, 60 customers had been chosen as data sample which is too small for over a million customer of Currys UK. Within the secondary data collection, there are limitations due to the lack of availability of books in this area. Some journals considered in this study were over 10 years old. The concept within the journals might have changed over a period of time which, leaving the study opens to question. Collecting data from employees in a group also had limitations as few employees did not respond equally with others. This might have been due to the fear factor or tiredness of the employees after a long day shift. This left the study open to question on the quality of the data collected though survey.

3.5 Ethical consideration

While carrying out the research on Currys, it was inevitable to face ethical issues during data collection. From the onset, researcher endeavored to receive formal cooperation from Currys management but has not been successful. Researcher made personal visit to the store, spoke to managers to allow employees to take part in the survey and a focus group which was proposed by the researcher to be held within the store. However, management did not feel the necessity to formally commit them in this research. Hence, collecting data from the employees outside the store has been an ethical issue for the researcher. As the study was depending on qualitative and quantitative data from customers and employees, there were no other alternatives. To balance the ethical issue, researcher has ensured management that the study will not put strain on the management or the employees and it will not affect the company financially.