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L/508/0485(RQF) Customer’s Loyalty HND Business Level 4 Regent College

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Factors that affect customer’s loyalty in a coffee shop

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INTRODUCTION

In present era, there is huge competition among industries as everyone desire to get huge success and growth in market. In order to develop its own competitive advantage and impressive brand image, corporation develops several strategies and practices. In the market, customer is king because whole profitability and success largely depends upon the client satisfaction. In order to accomplish desired objective and success firm have to provide high quality of services to its buyers by deliver excellent product and services according to their demand. Furthermore, effective customer loyalty is also essential for the growth and success of business enterprise.

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Customer loyalty is positively related to the buyer's satisfaction as happy customer consistently favors the brand that meets with their needs. Customer loyalty is a conduct and state of mind of the client by which they impact to buy the item and administrations from a similar association. One might say that it is a trust of the client upon the association and brand by which they trust that organization is constantly faithful and valid with them about the quality, highlights and procedure of the item and administrations (Yoshida and James, 2010). Client steadfastness is a measure that guide in estimating the execution and estimation of the association. The key objective of customer loyalty is to develop and maintain effective customer relationship management which can establish between a customer, corporations, person, products and brands. An effective and huge customer loyalty creates huge benefit for its customers in the market. By help of develop impressive customer loyalty corporation can easily gain the huge advantage regarding development of competitive advantage, brand image, large market share, profitability etc. In other word it can be said that customer loyalty is the measure of success of the suppliers in retaining a long term relationship with the customer. It has direct connection to a corporation's financial results and performance. If within the corporation, customer loyalty is high then it becomes easily to improve financial benefit and advantage. The financial performance of company will high if it has impressive customer loyalty. Hence, it can be said that there is direct relationship between the financial performance and customer loyalty as if it is high then company will defiantly earn maximum profitability.

On the off chance that customer loyalty of the association is solid then its gainfulness and piece of the overall industry can naturally high. It is very important for the corporation to make effective customer loyalty so as they can retain within company for long time and purchase the product from the same brand (Yuksel, Yuksel and Bilim, 2010). There are several factors that affects the customers at the time of purchasing product and services from the organization. Thus, it can be said that customer loyalty can also influence by several elements as buyers always desires to purchase that commodity which provide them full satisfaction in the affordable prices.

The present dissertation has major purpose to identify several factors that affect customer loyalty in Coffee shop with respect of Starbucks. It is an American coffee company and coffeehouse chain which operates its business in more than 27339 locations. In this dissertation, researcher have main aim is to identify factors that affects customer loyalty in the Coffee shop. Thus, with help of this investigation, scholar can easily acknowledge several components that affect customer loyalty in the coffee shop. In order to address the objective, researcher has applied several methods of research methodology and conducted thematic analysis to conclude and summarize entire study. With help of several methods of research methodology, researcher can effectively analyze the actual research issue and find out the best solution for study. Researcher have conducted thematic analysis for address the appropriate outcome and obtain effective solution of research problem.

Research Aim

To identify factors that affect customer’s loyalty in a coffee shop: A study on Starbucks

Research Objectives

  • To explore meaning of the customer loyalty
  • To identify various factors that affect customer loyalty in the coffee shop
  • To analyze the impact of factors on the customer loyalty in the Coffee shop
  • To recommend strategies to improve customer loyalty within the Coffee shop

Research Questions

  1. What is the concept of customer loyalty?
  2. What are different components that affect customer's loyalty in a coffee shop?
  3. How various elements affect customer loyalty in Coffee shop, that is, Starbucks?
  4. What are different criteria to improve customer loyalty in the coffee shop?

Rationale of the Study

The principle reason of leading this examination is that coffee shop is confronting immense rivalry. Purchasers are moving towards different brands on the grounds that other coffee shops are giving great espresso items at moderate rates to them. Starbucks is the great brand of UK which serves the high quality of services and product to its customers Through this investigation, organization will become more acquainted with why customers are moving to different shops and the way it can attract them and make them loyal towards the brand. Another reason of directing this examination is to advance industry with the goal that they can improve their productivity and contribute well in the development of economy.

Significance of the Study

In the current dissertation have major aim is to analyze various factors that affects customer's loyalty within the Starbucks. With the help of this study, researcher can easily understand concept and terminology of customer loyalty and its various components that affect customers at the time of purchasing products and services. By conducting this study, scholar can acknowledge several strategies to improve the customer loyalty within Coffee shop. The manager of coffee shop can analyze several elements of customer loyalty and provide products and services according to requirement of buyers.

Chapter structure

There are various chapters that play a significant role in the study to address determined objectives. Each chapter is very important to accomplish research objectives. Following are systematic discussion of the various chapters-

Chapter 1 Introduction: This is the first chapter that provides detailed knowledge and understanding about research aim, objective, scope, significance, etc. In this context, researcher develops investigation objective and aim to carry out study. It is the principal part in which presentation and outline of the exposition point has been given. It makes a base of the paper with respect to evaluate the topic whereupon consider is being done. Likewise, it readies the structure as to complete the examination successfully. Consequently, such segment begins with an outline of the exploration title and along these lines examine the investigation so best outcomes can be accomplished. It additionally involves nitty gritty depiction of the examination and in this way interface the same with the chose association. Moreover, it likewise includes point, destinations and research inquiries so as to do the examination subject.

Chapter 2 Literature review: Once the introduction chapter is accomplished then in the next phase, researcher focuses on literature review under which several themes designed regarding subject. With the help of this chapter, scholar can gain effective knowledge and understanding about the subject. Secondary data is included in this chapter which provides effective knowledge to individuals about the subject. In this specific part basic investigation is being done on the distinguished research goals. Consequently, the area helps in assessing the learning and data which is available concerning do the writing. It additionally gives wide learning and data identified with the present subject and in this way pick up data through optional sources. Here, basic assessment is being done in connection to do inside and out examination with the goal that distinctive data can be gotten as to do the section.

Chapter 3 Research Methodology: In this chapter, researcher focuses on the several methods such as research approach, research philosophies, research technique, data collection, data analysis, research design, sampling, etc. All these techniques help scholar in addressing the research issue by conducting investigation in an effective and efficient manner. With help of all these methods, researcher can easily analyze and assess the information for find out the best solution of research problem.

Chapter 4 Data analysis and interpretation: This is also an important chapter in dissertation which helps to analyze and interpret information. With the help of this chapter, scholar can be able to summarize study by interpreting collected information in survey.This chapter helps to scholar in analyzing and assessing collected information about the subject. In the absence of this chapter, it is impossible to carry out study and find out solution of research problem. In this chapter, researcher uses several kinds of techniques and analysis for interpret information and conclude solution of research problem. Researcher can analyze the information by use of qualitative approach or quantitative technique.

Chapter 5 Conclusion and recommendation: It is the last section of thesis and therefore assesses the results of the examination. Here, the general conclusion should be increased in the wake of examining t he information gathered. In this area, it gives suggestions also on the specific point with the goal that issues can be overcome.

This is the last chapter which depends upon analysis and interpretation of collected information. Researcher summaries the entire study in this chapter through which appropriate outcomes can be obtained.

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CHAPTER-2 LITERATURE REVIEW

To analyse the meaning of customer loyalty

According to the view of Hill, (2007) Customer loyalty is a conduct and mentality of the client by which they impact to buy the item and administrations from a similar association. One might say that it is a trust of the client upon the association and brand by which they trust that organization is constantly steadfast and valid with them about the quality, highlights and procedure of the item and administrations. Customer loyalty is a measure that guide in estimating the execution and estimation of the association. On the off chance that client reliability of the association is solid then its gainfulness and piece of the overall industry can consequently high. Customer loyalty is one of the measure and instrument by which organization execution and deals can naturally moved forward. It is a sort of process by which client impact to purchase the item and administrations from same association. Once the client are impact to buy the item and administrations over and over then gainfulness and offers of the firm will naturally make strides. Then again if client devotion are poor of the specialty unit at that point piece of the pie, gainfulness will consequently diminish. Customer loyalty can influence the client benefit. On the off chance that client gets the incite and brisk administrations then client will naturally fulfill and pulled in to buy the item and administrations from the same organization. Customer loyalty is related to supplier where from customer buy the product and services to a particular supplier. For example customer can only purchase a particular brand product from one store. Customer loyalty is continued to buy from a specific organization. A company or a supplier can full fill the customer needs and give the good product and services to the customer and customer repeating to buy that product this create loyalty towards the product, supplier or brand. A supplier wants to create a loyal customer who long term engages and continued profitable business with him. Customer loyalty depends upon the customer needs and desire. The loyalty should be company or brand specific or product specific. Some customer are brand loyal , those customers who like particular brand , So he purchases a particular brand product regularly so this called brand loyal customer. It creates the long term relationship between customer and the supplier. Customer loyalty also indicates the company financial results. An organisational success also measuring by customer loyalty. Loyalty is expressing by customer action, but it doesn't link with customer satisfaction level. Customer satisfaction is very important for any business if the customer doesn't satisfy so its create the bad effect on the business. And the customer not to express his satisfaction to the supplier it doesn't mean the customer is not loyal. For creating customer loyalty the company using marketing techniques to create more customer and to customer loyalty. Company target their customer by retention programme to demonstrate higher loyalty to a business. In this programme it includes regular communication with customers. Customer loyalty also helps to increase more productivity to any business. For customer loyalty it is important for any business is that they know their customer well and know their need and desire. They should also know about customer preferences which type of product is used. The company also use target marketing to create customer loyalty. In target marketing the company know about the customer choices and then they create the product according to the customer. Some customer are brand loyal. Customer loyalty in this leads to repeat customers and increased profits. Marketers will study to collect more loyal customer to increase more profits. Marketers collect data and analyse customers shopping trends and spending habits which helps in brand loyalty. And present time customer create by internet marketing. Previously customer interaction can build the loyalty. Today's time business is done by maintaining relationship to the customer. If a customer should loyal to any product or brand it helps the business to earn profit. Now times customer are beginning to judge brands based on those brands match their value or not. Customer loyalty is very important so if the loyal customers spend more and more often . Repeat customer spends more and they create loyalty towards the supplier or a company. Some are the traits which shows the loyal customer that are : giving feedback, share good experiences, and try new products and services related to the brand or a supplier. An organisation or in a business they should always add value through promotions , communication events from the customers.

To determine several factors that affect customer loyalty

The things which influence the client mind at the season of acquiring the item and administrations is known as the customer loyalty segments. There are several kinds of elements of the customer loyalty that affect customer minds and loyalty at the time of purchasing product and services in the market. At the time of delivering product and services to customers, it is very important for company to consider several components of customer loyalty and understand it in effective manner so as it can deliver appropriate services to them according to their demand. According to the perspective of Hill, N. and Alexander, J., 2017, costs is real segment that influence the client loyalty regarding brand. Numerous client likes to buy that item and services which is accessible in the lower costs. Price of product and service is major factor that affect customer loyalty in large manner. Cost is central point which is considered by the client at the season of obtaining the item and services. At the time of delivering product and services in the market, company should focus on the price element because many customers desires to purchase that commodity which is available in the affordable prices. Thus, company should set such pricing strategy which is affordable for customer. If prices of the commodity and services is affordable then they will purchase it from same brand. In the repudiating view of Kandampully and et.al, 2015, said that quality and highlight is another real part that influence the customer loyalty about the item and administrations. The majority of the client likes to buy that items which gives the high caliber and successful highlights to clients. Item quality and highlights are that measure which fulfill the necessities and need of the client. Along these lines, the vast majority of the client pulled in toward that item which adequately fulfill their need and needs. At the time of delivering product ad services in the market it is very important to focus on the quality and effectiveness of the services. Many of the customer considers the quality and effectiveness of the commodity and services. While company provides product and services in the high quality then customer will like to purchase the commodity from the same brand. In the contradicting view Kim and et.al, 2015, stated that convenience is another one of the factor that affect customer loyalty within the corporation. Many of customer requires effective facilities and convince system at the time of purchasing product and services. While company provides effective convince then it becomes easy to retain customer for long time. When purchasing shopper items, numerous dependable clients stray basically in light of the fact that the store where they frequently purchase your item ran out or doesn't convey it any longer. They may even now incline toward your item, however all things considered, there are different brands in stock and they don't have room schedule-wise to pursue your item down. On the contradicting view Kassim and Asiah Abdullah, (2010) customer expectation is another one of the factor that affect customer loyalty regarding product and services. It is very important for the company to understand the actual requirement and demand of buyers regarding product and services so as it can effectively gain their loyalty. In order to identify actual requirement of buyers, company should conduct market research sop as it can identify that what they actual want from company regarding commodity and services. Company's product should keep on living up to their desires inside and out. It not just needs to keep on delivering on its image guarantee and stay significant, yet its value, esteem, and accessibility must keep on being reliable.

In the opinion of Eid, (2011) customer is the kind of market and entire growth and profitability of business is largely depends upon the customer happiness and satisfaction. In order to make happy and satisfy customer, company should understand their actual requirement and expectation regarding services and deliver it accordingly. While customers expectations is effectively fulfilled then they will definitely come again to that particular brand in the market. IN the contradicting view Gast and Ledford, (2014) stated that not only customer expectation and convenience is important to improve customer loyalty but also personal relationship is important to develop impressive customer loyalty toward the brand. In order to improve customer loyalty, company have to develop effective personal relationship with buyers. Sales representative have to behave with customer in polite manner so as they can feel free to share their views, suggestions, problems regarding services. The way your organization remains behind its items can be as profitable as the item itself. A decent guarantee and quick determination of issues keeps clients, who may have had a baffling background, purchasing your item.

According to the view of Bauer, G.R., (2014) customer loyalty card and reward framework is another of the most imperative factor that influence client reliability. Client faithfulness card is that path through which organization can increase powerful client dependability toward the brand. A steadfastness card is a plastic card that a few shops give to normal clients. While clients purchases something from the store or shop then each time focuses are electronically put away on their card and can be traded later for the great and administrations It can be said that dependability program is an organized showcasing systems which created by the organization to draw in and support clients for customary shopping at the association. A dependability card otherwise called the reward card, point card, advantage card or club card. Associations plan its client devotion card so as to improve the association with center clients. Firms can without much of a stretch gather, hold and investigate clients information by giving this dependability program to its customers. In expansion to this, steadfastness program can incite clients to purchase higher valued items from the association. Along these lines, one might say that these criteria for deals the item and administrations is extraordinary compared to other route by which organization can pull in new clients and make fulfill the current clients. With help of this client devotion toward the brand can likewise increment. While client gets the reward focuses, motivating force and other preferred standpoint by utilization of dedication card then client can turn out to be more fulfilled and content with related brand. In this manner, one might say that significant part of the unwaveringness program is to make client cheerful and fulfill in the market.

In the opinion of Gay, Mills and Airasian, (2011) inadequate communication is also a negative factor that can affect customer loyalty in a negative manner. An effective and two was communication makes for happy customers and lack of clear and transparent conversation lead misunderstanding among two people. In order to make customer happy and satisfy company should have to adopt effective method of communication with them.

As per Özerdem and Bowd, (2016), loyal customer will always help company to promote their product. It is because when a customer gets attached to company it helps in generating market value. But, when there are certain factors that affects customer' loyalty. Due to change in them company customer base declines. It directly affects their sales and profits. Therefore, it is important for company to determine those factor so that it can be improved. In the opinion of Neuman and Robson, (2012), many companies are highly affected by decrease in customer loyalty. They are not able to change the factors that are involved in this. Also, it made it difficult for them to retain their customers. Besides this, change in any factors somewhere affect thinking level of people. It changes their perception towards company or product. This results in creating negative brand image in the market.

To analyse the affect factors of customer's loyalty in the Coffee shop

According to the view of Bilgihan and et.al, 2016, customer is the king of market as entire profitability and growth is largely depends upon the customer happiness and their satisfaction level. Hence, at the time of delivering the services and product in the market it is very important to identify the actual demand of customers. While customer demand is effectively fulfilled then it becomes easily to improve customer loyalty in the market. Once customer is happy and satisfied with delivering product and services then they will purchase their product and services from the repeated brand. In the opinion of Blut and et.al, 2014, in the context of Coffee shop, Consumer loyalty is one of the principle viewpoints that can help associations to get by in the focused market for longer period. In the current focused market, it is hard to fulfill the requirements of visitors on the grounds that their inclinations can get changed whenever. It is more hard to construct long haul association with clients. In this regard Watson and et.al, 2015, expressed that "distinctive components can put their effect on the general execution of organization however having great association with purchasers can bolster in expanding the offers of association to a high degree." If firm can give quality administrations and items at that point individuals will be faithful towards the brand and they will be joined with the brand for longer period. According to the perspectives of Bowen and et.al, 2015, fulfillment level of customers is specifically related with the offers of organization as though individuals are fulfilled then they will give positive remarks to others while on the off chance that they are not fulfilled then they will give negative input that can make terrible brand picture. In this unique situation, administration needs to ensure that they give quick and quality administrations to clients that would help in expanding the offers of organization.

As said by Mackey and Gass, (2015)__, customer loyalty depend on customer satisfaction. It describes how customer needs are satisfied. Customer satisfaction increases when they are delighted after using product. The loyalty shows how well a customer is connected to company. Apart from this, there are various factors that can affect customer loyalty. It will lead to decrease in company sales and profits. Also, it will create a poor image of company in the market. Kassim and Asiah Abdullah, (2010), elucidated that a factor determine how it can change taste and preference of customers. Moreover, why this change has occurred and what will be the impact of this on target market. Changing of factor will affect overall demand of product. It will allow people to shift from one product to another. According to Hunleth, (2011) loyalty of customer reflect company image and its goal. It descried how well product is able to fulfil people needs. A decrease in customer loyalty will have a negative impact on brand image. This will make it difficult for organisation to reach the level where it was before. Furthermore, as describes by Gast and Ledford, (2014), there are several factors that affects customer loyalty that are economic dependence, performance, satisfaction, etc. Satisfaction and loyalty are interconnected to each other. Also, experience of customer states how it is satisfied with product. It is related to emotional and physical aspect.

Communication is another factor that affect customer loyalty. An effective communication with help in finding out how what customer feels about company. It shows how they have valued the product. As elucidated by Flick, (2011) both internal and external communication play a vital role in customer loyalty. When employees will communicate and work together they will be able to improve product quality. It will increase organisation efficiency. Also, it will be easy to identify needs of people by interacting with them. When a customer is well treated it creates a feeling of belongingness among them. The assessment of needs can be done by company to identify expectation of customer. It will help in generating product value and attracting large number of people. According pt view of Eid, (2011), it is important for business to deliver product in right time at right place so that customer loyalty can be gained. It helps in building strong and long term relations. This result in making a customer loyal. Also, a loyal customer will help in doing mouth publicity.

An analysis has been done by Arias and Acebrón, (2005) it has shown results that factors that highly affect customer loyalty is perception of people towards product. This describes what people think when they buy a particular product. Also, how they are connected to organisation. It is essential to prioritise loyalty points so that focus can be made on specific one. This will help in increasing loyalty so that competitive advantage can be gained. As said by Mackey and Gass, (2015) it is beneficial to divide customer loyalty in different parts so that it can be analysed which factor has affected the most. This helps in developing strategies on how to reduce its affect. Thus, by making efforts to increase loyalty it becomes easy for company to retain its customers. Also, it helps in providing ways on how to communicate, deliver products so that loyal can be increased. Moreover, there are many ways through which factors can be eliminated. It can be done by offering discounts, coupons, etc. to loyal customers. This is useful in making them realise that company cares for them. In the opinion of Cammarota, and Fine, (2010) , trust can only be gained by continuously communicating with them. Besides this, it will be useful in identifying the future needs so that products can be developed accordingly. By doing it helps in creating a distinct brand image and attracting large number of customers. Furthermore, analysing benefits at some point as it becomes easy to know what makes customer loyal.

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According to view of Gay, Mills and Airasian, (2011), economic factor is the most important that affects customer loyalty. A customer will always be happy if price of goods remains stable. This makes product affordable for purchase. But a change in price of product will make customer think twice before buying it. It is because will directly affect his income. Also, it will affect target market. People who do not compromise with quality remains loyal in case of increase in price. It shows how well they are connected to company. Moreover, those customers are given more preference whenever new product is produced. Along with this, target market is changed resulting in modification of goals and objectives. It is said by Hunleth, (2011), that in order to increase loyalty, customer satisfaction has to be increased. Besides this, factors have to be determined that affects both brand image as well as customer loyalty. It will be beneficial in providing competitive advantage in the market for long term.

Strategies and criteria to improve customer loyalty toward the brand

According to the view of Billig and Waterman, (2014) in order to gain desired success in the competitive market, it is very important for company to make its customer happy. Corporation should focus such impressive criteria and strategies through which it can provide effective satisfaction and happiness to them. By adopting effective practices and strategies, company can make feel customer happy and retain them within corporation for long time. In the opinion of Cammarota, and Fine, (2010) reward is one of the best criteria to make customer happy and improve customer loyalty toward brand. Corporation should set a customer loyalty program that gives buyers discounts, gifts and exclusive offers. While firm provides attractive gifts, discount, reward, offers along with product and services then customer will motivate to purchase the commodity and services from same brand. As per the research it has been found that there are 76% of women and 72% of men are likely to purchase from the shop and organisation that offers a loyalty programs and attractive gifts, rewards, offers, discount etc. At the time of purchasing product and services from the shop, customer love surprises and gifts in all forms. The real point of this faithfulness card program is to give the appealing markdown and spare their cost alongside item and administrations. By this client dependability card program, organization can pull in the new clients and hold them in the organization for long time. A large number of the clients likes to get the dependability card since they want to get alluring rebates and extra point alongside normal shopping. In this manner, one might say that client devotion card program gives the viable fulfillment to its clients through which they can hold in the brand for long time. According to the perspective of Eid, (2011) there is close and direct connection between the client steadfastness card program and reliability alongside the brand on the grounds that with help of client devotion card, organization can improve the trust and accept of the client for related brand. Client reliability card program helps to association in conveying trust and devotion to the client who makes consistent buy to the item and administrations. In the conclusion of Flick, (2011) while organization offers the client reliability card office for its clients then they will urge and spur to buy item and administrations with same brand later on. In this way, one might say that with help of unwaveringness card program, organization can create trust and dedication among the client through which they can make a point to buy the item and administrations from a similar brand. Therefore, one might say that client dependability program can create the trust and accept among the clients toward the brand. In the sentiment of Fiegen, (2010) reliability is a put stock in, compassion, steadfastness among individual toward something. While reliability of individual toward something is high then they will faithful and genuine for something.

According to the view of Flick, (2015) in order to improve customer loyalty toward the brand, company should showcase its customer's success stories. Company should define the success stories of its previous customers in front of the new customers. This strategy will help to company in attracting customer and retain them within company. In addition to this, customer success stories should place and post on the company website and social media through which customer will motivate and encourage for retain within corporation for long time. The feeling of being appropriated and having their success story shard on the company website and social media will motivate to existing customer base and will also help to company to win the trust of new customers. In the opinion of Gay, Mills and Airasian, (2011) another major effective way to create customer loyalty is to be honest with customer regarding the product and services. Organisation should convey all required information regarding product and services to its customers. There should transparency between customer and organisation regarding product and services so as they can develop trust with them. As per the view of Hunleth, (2011) company should bring something innovative and create along with its product and services through which it can develop interest in the mind of customers. With help of innovative and creative product and services, corporation can provide effective satisfaction to its buyer through which their loyalty become enhance. By regular provide something innovative and creative with product and services, company can easily enhnace customer loyalty toward the brand. In addition to this, corporation should use latest and innovative technology in order to facilitate its buyers at the time of purchasing product and services. At the time of shopping, corporation should arrange the infrastructure and technology in such manner so as customer can not face any difficulties regarding shopping.

CHAPTER 3 RESEARCH METHODOLOGY

Research methodology is vital part in the paper which causes the specialist to get successful outcome from the examination led by him or her. It assumes extremely huge part in leading the exploration which finds proper arrangement of the issue. With the assistance of this part, examiner can clarify its examination in appropriate route with that this section is imperative for fruition of the paper (Arias and Acebrón, 2005). In this part. Researcher finds the suitable outcome which the assistance of various sorts of research system. This part incorporates diverse part of research strategy that are inquired about approach, look into plan, information accumulation, investigate theories, examining and so forth. In the absence of the research methodology it is impossible to carry out the study and investigate the solution of research problem. With help of several methods of research methodology, researcher can easily analyze the information and find out the best solution of research problem.

Research Philosophy

It is one of the significant part of the examination technique in the section of thesis. It incorporates convictions, presumption and esteem which is identified with the particular subject. It manages the source, nature and improvement of the information. It influences the researcher suspicion, esteem and convictions. One might say that theory is intended to build up the exploration learning, foundation and nature. There are two kinds of research theory that is positivism and interpritivism (Mackey and Gass, 2015). In interpritivism logic just single reality have been reflected from the diverse idea and speculations. Though with regards to positivism theory, agent is reliant on the few certainties and discoveries for the specific issue. The real target of the exploration rationality to recognize a proper arrangement of the examination issue. Along these lines, it is imperative for the specialist to choose the best reasoning of the exploration. Other than that agent should keep the kinds of examination since determination of research reasoning is absolutely reliant on the sort of study. On the other hand in the positivism research philosophies, researcher relies upon the certain facts and figures regarding the subject. The major objective of positivism research philosophy is to identify effective solution and research outcome of the problem. In the current research paper, scholar have major objective is to analyze the factor that affect customer loyalty within Coffee shop so in order to address this aim researcher have applied interpretivism philosophy. With help of this philosophy, scholar can easily analyze the information and find out the best alternative solution of research problem.

Research Approach

In the section of research technique, inquire about approach is one of the basic strategy by which specialist can dissect the data about the subject. It helps with examining the gathered data about the subject which helps in acquiring a fitting result of the paper theme. For the most part, there are two kind technique for information accumulation that is inductive and deductive. With regards to inductive approach, it is worried about the age of new hypothesis rising up out of the information. This approach related with subjective research and this will typically utilize inquire about inquiries to limit the extent of the examination. Inductive approach in light of the example and patterns. With help of inductive research approach, examiner can acquire a suitable result. In the inductive research approach specialist does not have wherever for theory so examiner is allowed to modify course of the examination (Neuman and Robson, 2012). This approach is less organized and there isn't directing part. It can execute in the little example venture since modest number of the example are dissected with powerful result. Then again with regards to deductive approach, it is material on the expansive example estimate venture in light of the fact that with help of vast size task analyst can direct profound examination. In the deductive approach explore begins with theory itself. It is profoundly organized on the grounds that there is some particular expect to be refined. Deductive approach is the crucial type of legitimate thinking. It beginning stage is premises and its procedure incorporates hypothesis, theory, perception and affirmation (Pfefferbaum, Newman and Nitiéma, 2014). In the present research study, scholar have applied inductive research approach for analyse and interpret collected data for analyse the factors that affect customer loyalty within Coffee shop.

Research Techniques

This is one of the most significant method in the research investigation by which scholar can collect appropriate information and analyse it for conclude the research information in an effective and efficient manner (Melendez-Torres, Bonell and Thomas,2015.). In the absence of research strategy of technique, it is impossible to conduct investigation and carry out several programs regarding it. Research technique helps to scholar in collecting, analysing and interpreting information related to the subject so as appropriate solution can find out in effective and efficient manner. There are major two kinds of research techniques that is qualitative and quantitative. Different kind of theories, models, concepts etc are applies in the qualitative research technique. With help of various theories and models, scholar can easily investigate outcome and understand entire investigation in an appropriate manner. On the other hand in the quantitative research technique, scholar appropriate outcome can address by implement statistical and mathematical approach. In the current investigation, individual have major aim is to identify the factors that affect customer loyalty within Coffee shop. Hence, for address the objective, researcher have applied qualitative research technique under which survey have organised for data collection about subject. With help of qualitative research technique, scholar have collected information and interpret it for obtain solution.

Research Design

In the examination approach, inquire about plan is another significant technique which help with getting the precise consequence of the investigation. It alludes to the procedure of the speak to the result which happened in the information accumulation process. This procedure help with breaking down the come about by surveying data about the subject. With help of research plan, researcher can ready to speak to the gathered data and get a fitting result. There are real two sorts of research outline that is spellbinding and exploratory . With regards to Exploratory research thoughts and considerations are found (Özerdem and Bowd, 2016). This plan is adaptable and it incorporates non likelihood testing. Exploratory research configuration help to the agent in acquiring the high caliber of result by profound examination of the assembled data. With help of this technique, agent can without much of a stretch speak to an efficient data about the theme (Lee, 2014). Exploratory research configuration have non likelihood inspecting which does not arranged plan for the investigation. In a basic word one might say that exploratory research is a kind of research directed for issue that has bot been plainly characterized. It aids distinguish the best outline of research, information accumulation and choice of the subject. Then again in the illustrative research outline analyst investigate and clarify an individual, gathering or a circumstance. It is otherwise called the factual research which depicts the information and attributes about the populace. It has inflexible research outline and incorporate likelihood testing (Saunders and Bezzina, 2015). It considers on the revelation of thought and considerations. Another research design is descriptive research design under which statistical investigation can conduct for obtain outcome. It is a scientific method which involves observing and describing the behaviour of a subject without influencing it in any way. In the present investigation for address the objective that is to identify the factor that affect customer loyalty in the Starbuck, researcher have applied descriptive research design. This strategy assists to scholar in conducting entire investigation in more effective and appropriate manner for summarise outcome.

Data collection

This is one of the most important method in the research methodology that helps to the researcher in gathering information about the subject. In the absence of data collection, scholar can unable to collect information and find out solution about research problem. This is very important part in the investigation by which data can collect about subject. There are major two kinds of the data collection that is primary and secondary data collection. Information can collect about subject with help of two ways. In the primary data collection, scholar can collect fresh information about the topic (Kassim and Asiah Abdullah, 2010). Data can collect from the survey, interview, questionnaire, observation etc in this primary data collection method. With help of these ways of data collection, scholar can collect fresh information which have not used earlier. On the other hand other way to collect information is secondary data collection under which scholar can collect published information about the subject. With help of secondary data collection, researcher can collect the published information under which various authors provided their views, opinion, suggestion regarding subject. In the present study, researcher have used survey method for collect information. With help of survey method, researcher can collect fresh data about subject through which various opinion and thoughts regarding the subject. Scholar have taken 10 managers of Starbuck for collecting information about factors that affect customer loyalty in the cited venture. With help of survey method, scholar can collect fresh information about the subject and address actual objective of study.

Sampling

This is another one of the important method in the research investigation by which scholar can easily select some respondents for data collection. It is a technique in research methodology that is considered for select the target population in the entire universe so as effective data can collect for address the objective of study. In the absence of sampling method it is impossible to conduct investigation (Harley and et. al., 2015). There are major two kinds of sampling that is probabilistic and non probabilistic sampling method. In the current investigation, scholar have used random sampling method under which 10 managers of Starbucks have been selected as sample size. With help of 7 managers in the survey, scholar have collected data about the factor affect customer loyalty in the Starbuck Corporation.

Ethical consideration

This is another one of the significant aspect in the research methodology that have to consider by the researcher at the time of data collection and investigation. It is very important to follow some ethics at the time of investigation. By use of various ethics researcher can obtain effective result and outcome of study. One of the major ethics in the research is related to the data collection as at the time of gathering information, scholar should not force to anyone for giving their responds. There should not any force of the researcher upon the respondents at the time of data collection. All respondents are free to share their view, opinion, suggestion regarding subject (Ansara, 2015). All respondents are free to fulfill the questionnaire according to their opinion, view and thoughts. Another major ethical consideration is related to the information as all included data should relevant to the subject. There should not any kind of irrelevant information in the research. All included data should relevant to the subject and there should not occur plagiarism in the investigation. In addition to this another ethical aspect is related to appropriate citation in the work.

Research Limitation-

It is another significant viewpoint in the examination system according to this there are a few parts which influences the specialist in the analyst. While researcher do the examination at that point there are a few components which influence their examination. In this way, time is one of the significant constraint which has looked by the agent. Time is a component which help researcher to achieving their errand however in this examination it has been dissected that researcher have extremely restricted day and age for achieving the exercises of the examination. So as to beat the time affect on the investigation, scientist has utilized different measures. Also, money related asset is another significant confinement for the examiner which confronted length of the examination. Without the adequate reserve, specialist has not finished the undertaking legitimately ('Snyder, 2012). In different exercises amid the examination like printing poll, lead the study, transportation, web costs and so on. In these said exercises, agent required adequate measure of reserve. Along these lines, one might say that in the different exercises of the examination, researcher have confronted the issue identified with the time and cost. With a specific end goal to conquer the effect of the time, researcher has utilized the Gantt graph technique under which every action of the exploration can compose as indicated by the time. Then again with a specific end goal to conquer the effect of the cost, researcher has utilized the movement based costing under which costs can adequately oversee about the examination action.

Reliability and validity

In the investigation process, reliability and validity is a standout among the most imperative concern which help with acquiring the successful result of the examination. Once the acquire result of the examination does not fit and legitimate then whole research can adversely influence. The gathered information and data ought to be legitimate and dependable. Keeping in mind the end goal to raise the dependable and legitimacy of the investigation, a few perspectives has been taken in to thought by the researcher (Zumitzavan and Michie, 2015). The real goal of the unwavering quality and legitimacy of the data is that gathered data ought to be substantial and solid. It ought not be right and unique in relation to the subject. The method of reasoning behind this, copyright ensured information source gives the exceedingly dependable data. In this present report, every gathered datum and data has legitimate and dependable in light of the fact that optional data has been gathered from the most recent books and diary by the researcher. The significant target of optional information gathering is to achieve the goal. Furthermore, different subjects has been set up by the specialist so as clear comprehension can create by the researcher.

CHAPTER 4 CONCLUSION AND RECOMMENDATION

From this research it is concluded that there are several factors on which customer loyalty depends. These factors can either be beneficial or harmful for company. Thus, it is important for business to identify those factor that is affecting customer loyalty. It will help them to retain their customers and gaining competitive advantage in the market. Also, it is shown in this research that how factors like economic dependency, social factors, etc. play crucial role in affecting customer loyalty. Besides this, customer satisfaction is related to customer loyalty. It describes views and thoughts of customer for company. Moreover, it is concluded that change in any one factor will affect target market. It will create negative image in the market. Furthermore, decrease in loyalty will result in declining sales and profits. It directly affects growth of organization in other markets. Communication with customer helps in identifying their needs so that products can be produced. It helps in solving their issues and problems. Loyalty programs such as offering discounts, giving coupons, etc. helps in attracting people. They provide a platform through which company can interact with people to get their ideas. Besides this, people are more likely to purchase goods from brand that is highly engaged in loyalty programs. This helps in engaging customer with organization. With this it becomes easy to advertise products just be initiating loyalty programs. From this entire report it has been also concluded that customer loyalty can enhance in the business enterprise by help of delivering high quality of product and services to customers. It has been also analyzed that price is major factor that affects customer loyalty in the Starbuck company because while company increase price of product and services then it affects the purchasing decision of customer regarding product and services. Customer always desires to purchase that product and services which is affordable in the reasonable prices. In addition to this, quality and effectiveness is also one of the component that affect customer loyalty in large manner. Customer always desires to buy that product are available in the high quality and effectiveness.

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From the entire report it has been concluded that customer is the major part in the organization for gain effective profitability and success. In order to address determined objective it is very important for company to make buyers happy and satisfied. If buyer are not happy with company's product and services, facilities, behavior of representative, deliver etc then it is impossible to increase customer loyalty toward the corporation. It has been also concluded that Customer loyalty is a conduct and mentality of the client by which they impact to buy the item and administrations from a similar association. One might say that it is a trust of the client upon the association and brand by which they trust that organization is constantly steadfast and valid with them about the quality, highlights and procedure of the item and administrations. Customer loyalty is a measure that guide in estimating the execution and estimation of the association. On the off chance that client reliability of the association is solid then its gainfulness and piece of the overall industry can consequently high. Customer loyalty is one of the measure and instrument by which organization execution and deals can naturally moved forward. It has been also concluded that Corporation should focus such impressive criteria and strategies through which it can provide effective satisfaction and happiness to them. By adopting effective practices and strategies, company can make feel customer happy and retain them within corporation for long time. Corporation should set a customer loyalty program that gives buyers discounts, gifts and exclusive offers. While firm provides attractive gifts, discount, reward, offers along with product and services then customer will motivate to purchase the commodity and services from same brand. The Starbuck company should focus on the several strategies to improve customer loyalty because while company have high customer loyalty then it is easy to acquire large numbers of customer and develop competitive advantage in the market. Thus, it can be concluded that customer loyalty is deeply affected by various factors that are to be taken in consideration by Starbucks. From the report, it can be analyzed that the customer loyalty is been deeply affected by different elements like product quality, pricing, locations and timing of delivery that will include the effective growth of trust and satisfaction level in customer base of company in a much better way. On the basis of report, it can be concluded that the good quality of product or services that will be provided by outlets of Starbucks will help the enterprise to gain a sustainability in market and gain a good control over the operations that are been developed and executed by business organisation. Other than this, the pricing also plays a very crucial role in organization. The high pricing of beverages that are been offered at the outlets will be deeply impacted, if it is placed in the area of customers with nominal economic resources. Other than this, the location will lay a very vital role on the business operations that are been followed by cited beverage enterprise.

The product quality and value for money will be one of major affecting factor of customer loyalty. Apart from this, the behavior of staff that is been placed on the outlets with its customers will lay a very deep and significant role in affecting their clients satisfaction level. A good behavior will help in building a better relationship of user with the business entity, supporting in rise of revenue generation and containment level of buyers. On the other hand, a non satisfactory behavior will impact the overall customer loyalty level, affecting the productivity and profitability of business organization. Thus, Starbucks has to follow effective measures to maintain the loyalty level of its customer's in market.

In this report major aim is to identify the factor that affect customer loyalty in the Starbuck company so in order to address this objective, researcher have applied several methods of research methodology. Researcher finds the suitable outcome which the assistance of various sorts of research system. By applied several methods such as research approach, research philosophies, research design, data collection, data analysis, sampling etc. With help of this method researcher have easily addressed the objective of researcher. With help of this investigation, researcher have analyzed that customer loyalty affect company profitability and progress so it is very important for company to maintain effective customer loyalty. Following are some recommendation for company to improve customer loyalty.

Starbucks is a big coffee company. This company has completely changes the coffee business. Today starbucks is world's largest coffee shop with regards of its customer. Customer loyalty is very important in any business . The loyalty generate by customer trust and satisfaction towards the product and services. Starbucks conduct the loyalty programme, to know about the loyal customer of the company. Starbucks using marketing techniques to create new customer. This is not only coffee makers in town, it easy for consumer to access their products.

  • This company sold their products by online , local grocery stores. starbucks not only sold coffee it also sold k- cups, coffee beans, teas and gift cards in market places.
  • To improve customer loyalty firstly build the trust in customer mind. So company should add more new products according to customer budget and choices.
  • Starbucks is a big coffee company. This company has completely changes the coffee business. Today starbucks is world's largest coffee shop with regaards of its customer.
  • Customer loyalty is very important in any business . The loyalty generate by customer trust and satisfaction towards the product and services.
  • Starbucks conduct the loyalty programme, to know about the loyal customer of the company.
  • Starbucks using marketing techniques to create new customer. This is not only coffee makers in town, it easy for consumer to access their products.
  • This company sold their products by online , local grocery stores. Starbucks not only sold coffee it also sold k- cups, coffee beans, teas and gift cards in market places.
  • To improve customer loyalty firstly build the trust in customer mind. So company should add more new products according to customer budget and choices.
  • Starbucks may uses loyalty programme for their customer like game and company gives them rewards. Starbucks also introduce its mobile application where customer can play a game and earn stars.
  • To earn customer loyalty company give them discounts like if they purchases 2 or more coffee give them some percentage of discount.
  • Customers love surprises in terms of gifts and discounts. So give them gifts on more purchases. Its create loyalty.

REFERENCES

  • Hill, N. and Alexander, J., 2017.The handbook of customer satisfaction and loyalty measurement. Routledge.
  • Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future directions with a special focus on the hospitality industry.International Journal of Contemporary Hospitality Management,27(3), pp.379-414.
  • Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction, delight, and loyalty in the hospitality industry.Journal of Hospitality & Tourism Research,39(2), pp.170-197.
  • Bilgihan, A., 2016. Gen Y customer loyalty in online shopping: An integrated model of trust, user experience and branding.Computers in Human Behavior,61, pp.103-113.
  • Blut, M., Beatty, S.E., Evanschitzky, H. and Brock, C., 2014. The impact of service characteristics on the switching costs–customer loyalty link.Journal of Retailing,90(2), pp.275-290.
  • Watson, G.F., Beck, J.T., Henderson, C.M. and Palmatier, R.W., 2015. Building, measuring, and profiting from customer loyalty.Journal of the Academy of Marketing Science,43(6), pp.790-825.
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