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Customer Satisfaction upon the Brand Loyalty Towards the Zara

Unit 8: Research Project Unit code: K/601/0941 

Pearson BTEC Level 5 HND Diploma in Business

Purpose of this assignment:


To develop learners’ skills of independent enquiry and critical analysis by undertaking a sustained research investigation of direct relevance to their Higher Education programme and professional development.
This unit may be linked to Unit 49: Work-based Experience and gives learners the opportunity to carry out research in the same organisation where they undertook their placement.
Scenario
You are required to conduct an independent research that investigates an area of interest and significance within the UK business context. Business context here could be related to any area of business, such as; Quality Management, Human Resource Management, Finance, Marketing, Sales, Economics, Business Law etc. You could choose a specific topic within one these broad areas.
Choose a suitable project that can be completed within the prescribed length of study period.
Task 1 (LO1: 1.1, 1.2, 1.3)


AC 1.1 Formulate and record possible research project outline specifications
AC 1.2 Identify the factors that contribute to the process of research project selection AC 1.3 Undertake a critical review of key references
AC 1.4 Produce a research project specification
AC 1.5 Provide an appropriate plan and procedures for the agreed research specification
To address the above, You must gain the approval of your tutor that the organisation/industry you intend to research is suitable for this assignment, before completing any of the three designated tasks.
The proposal is a document designed to present project specification outlining a plan of action, reasons why the action is necessary, and convince the reader to agree with and approve the implementation of the actions recommended in the body of the document.


Task 3 (LO3: 3.1, 3.2, 3.3, 3.4)

AC 3.1 Use appropriate research evaluation techniques

AC 3.2 Interpret and analyse the results in terms of the original research specification AC 3.3 Make recommendations and justify areas for further consideration

Following the approval of the proposal carried out under task 1, you are required to produce a report on your research.

Your Report must address;

  • Efficient use of the resources to the research questions or the hypothesis
  • Evidence of undertaking the proposed research investigation as agreed in the proposal in task 1
  • Evidence of recording and collecting data relevant to your research
  • Evidence of evaluation of the research
  • Interpretation and analysis of the results in terms of the original research specification designed in task 1
  • Recommendations and justification of further consideration

You will be assigned a tutor who will oversee your work and guide you through the process. The Report is to convey your knowledge and understanding of the learning outcomes of Higher National Diploma in Business, to the assessors. The content must be drawn from the theory you have learned throughout the course.

Answer

IMPACT OF CUSTOMER SATISFACTION ON BRAND LOYALTY: A CASE STUDY OF ZARA

Task 1:

1.1 Outline of the research project specification:

Research specification of the project is as follows:

Aims:

The principle aim of this research is to identify the impact of the customer satisfaction upon the brand loyalty towards the Zara.

Objectives:

The objective of the research is as follows:

  • To evaluate the effect of customer satisfaction on the brand loyalty for Zara
  • To recommend some effective strategies for improving the brand loyalty of Zara

Literature review:

Customer satisfaction is one of the terms that mainly demonstrate how different services or products of any company addresses or meets the expectation of the customers. As stated by Bloemer and Kasper (2012), brand loyalty is the commitment of the company towards the brand that can induce the repurchase behaviours of any customers. It is seen that higher level of customer satisfaction increases the brand loyalty. It has been observed that when any customer became satisfied with any particular product or brand then they became more likely to recommend the brand to their friend or family (Taylor et al. 2014). Along with that, they also like to buy that product again so that the brand loyalty also increases. Therefore, it can be said that the customer satisfaction has some subtle effect on the brand loyalty (Caruana, 2013).

Methodology:

As stated by Fantuzzo and Lindquist (2013), research methodology can be defined as the process for collection of the data as well as information in order to make the decision regarding the business. Therefore, in order to understand the impact of the customer satisfaction on the brand loyalty, proper selection of the research philosophy, approach, strategies and design is mandatory. In order to conduct the research, positivism philosophy, deductive research approach, descriptive research design and interview and survey strategies is selected (Osborne, 2010).

Implication of the resources:

For conducting this research with more effectiveness both the primary as well as secondary resources is selected. The secondary data for this research is gathered from different types of the published research such as books, newspaper, related journals, news articles, websites etcetera. On the other hand, for accumulating the primary data of this research, the researcher selects some research respondents and collects feedback from them, regarding the research issues. After accumulation of the data graphical as well as percentile, method is selected to analyse those primary data.

1.2 Different factors that contributes in the selection of the research project:

In order select the research topic different factors have the direct impact such as the focus of the career path of the learner, the level of expertise present among the learner, knowledge provided by the topic, topic of the interests of the learner, consideration regarding the capabilities and limitations provided by the topic etcetera.

1.3 Critical review regarding the review of key references:

Several previous researches provide a clear understanding regarding the customer satisfaction and brand loyalty. For understanding the topic more clearly taking help from the below mentioned journal was considered. Research paper of Morteza et al. (2013) helps to understand the different models that can satisfy the customers. On the other hand, the research paper of the Samaan Al-Msallam (2015) helps to understand the effect of the customer satisfaction on the brand loyalty. The research of the Hayan Dib and Samaan Al-Msallam (2015) helps to gain a clear understanding regarding the relationship between the brand image, perceived quality, brand loyalty and the price fairness.

1.4 Specification of the research project:

Title: 

Impact of the customer satisfaction on the brand loyalty for the Zara

Aims:

The principle aim of this research is to evaluate the impact of the customer satisfaction on the brand loyalty. The research also tries to appraise some loopholes regarding the customer satisfaction on the Zara that may affect the brand loyalty of the fashion company.

Objective:

  • To critically investigate different factors that affect the customer satisfaction and brand loyalty
  • To evaluate the effect of the customer satisfaction on the brand loyalty for Zara
  • To appraise different loopholes in the customer satisfaction strategy of Zara
  • To recommend some strategy by which customer satisfaction in the company can be increased.

Questions:

  • What are the different factors that can affect the satisfaction of customers?
  • What are the influences of the customer satisfaction on brand loyalty?
  • What are the different loopholes that affect the customer satisfaction strategy at Zara?
  • What are different possible ways by which Zara can improve the satisfaction level for their customers?

Literature review:

Customer satisfaction play a crucial role and it is one of the factors of marketing that is mainly predicted different behaviours regarding the purchase (Bodet, 2015). There are different factors that affect the customer satisfaction such as quality of the product or services, cost of the product or services, brand image of the product or services, perceived quality and actual quality of the product etcetera. As stated by Guenzi and Pelloni (2014), brand loyalty can be defined as the tendency of different customers who continue their buying process from a particular brand rather than trying a new brand. There are different factors that affect the brand loyalty such as service quality and the customer satisfaction. The time when a brand is able to satisfy its customers, they are less likely to switch to other brand and more likely to participate in the WOM. This less switching behaviour influence customer to buy more from the particular brand hence increases the brand loyalty. Kano model helps any organisation to understand the features that any customer wants from the brand so that they can develop their brand according to this to achieve ultimate satisfaction from customers (Yuand Dean, 2011). According to the Kano model, there are three different types of attributes such as threshold attributes, excitement attributes and the performance attributes. Threshold attributes mainly describes different attributes that any customer mainly expect from the product, excitement attributes are the thing that the customer even don’t know that they want from the product (Torres-Moragaet al. 2013). On the other hand, performance attributes are those that are not required but it is necessary to increase the enjoyment of customers.

 Kano model

Figure 1: Kano model

(Source: Magin et al. 2013)

Methodologies:

Research methodology provides a way to the research to conduct the research in most systematic and logical ways (Brislin, 2015). For the conduction of this current research, different research tool has been utilised such as research philosophy, research design, and research approach and research strategies etcetera (Rigney, 2012). There are different research philosophy such as positivism, interpretivism and realism. For conducting this research with most effective ways, positivism research philosophy is selected because it helps to conduct the research in most logical and critical manner. On the other hand, among deductive and inductive research approach, deductive research approach is selected because its helps to answer all of the research related questions by gathering most effective data for the research (Graziano and Raulin, 2013). Along with that, among descriptive, exploratory and explanatory research design, descriptive research design is selected to explain and explore different factors that affect the brand loyalty of Zara. For collecting the research related data, survey and interview research process is selected.

Data analysis and collection:

For conducting this research, the researcher has collected both the primary as well as secondary data. Secondary data is gathered from, different published journals, books, websites and news articles. On the other hand, primary data are collected from the 25 customers of Zara. The feedback is collected from the customers by survey research strategy by forming some effective research questionnaire. After that, the customers are selected by implementing the random sampling techniques. After the assortment of the data, it is analysed by following the percentile method and represented in the proper format.

1.5 Plan and procedures for the specification of the agreed research project:

ActivitiesInitiation dateCompletion dateDuration in terms of week
Problem identification15th September 26th September2
Research topic selection27th September2nd November1
Generating proposals3rd November14th November2
Completion of the preparation in order to conduct the research with more effectiveness15th November30th November2
Data collection from different effective sources1st December20th December3
Conducting data analysis by proper method such as percentile method21st December28th December1
Providing some suggestion29th December2nd January1

Table 1: Gantt chart

(Source: Created by author)


Task 2:

2.1 Matching resources with the research hypothesis or questions:

The main objective of this research is to evaluate the impact of the customer satisfaction on the brand loyalty of Zara. For achieving, the question with effectiveness huge financial resources as well as time is mandatory. In order to achieve this objective conducting an effective survey on both the employees, customers and managers is mandatory, but due to the absent of time asking questions to all those three entities are not possible. It needs almost 12 weeks a time to conduct this survey on those three entities but it is seen that the researcher has only 1 or 2 weeks of time to conduct each of the tasks. Moreover, the researcher also has some money related problem due to which the researcher cannot utilise the SPSS software. As this research involve taking feedback from the sample respondents so that some ethical dilemmas also involved here.

The secondary data can be collected from different offline as well as online media. For collecting data, different published books, journals and news article are utilised. On the other hand, from the online sources e-books, websites, e-paper and the e-journals are utilised. Different websites and e-paper provides some authentic as well as updated information regarding the research topic, therefore, secondary research data can be collected from those sources. Along with that, some government publication also provides some useful information regarding the research topic; data can be collected from those sources also. It is seen that sometimes the information provided by the websites can be of out-dated qualities, therefore, data must be authenticated by matching the online resources with the online resources. Along with that, data can be collected from the note provided by the lecturers and the module information. The date from the online media is mainly collected by searching on the browser. After searching, data must be gathered by conducting a research on the result provided by the browser. While collecting data, the date of publication of the information must be considered for avoiding the inclusion of the out-dated information.

The main reason behind the requirements of both the time and money is without those resources, it is not possible to gather the in-depth knowledge regarding the research topic. Huge time is also required to analyse and represent the data in proper way. Substantial amount of money and time is also imperative to collect the data and information from the sample respondents with proper way. This is because; data from the participants by influencing them to provide feedback and it should not be collected by forcing them. Forcing customers can generate wrong research related outcomes.

2.2 Research investigation according to the agreed procedures and specification:

For gaining a clear knowledge regarding the topic of the research, the researcher has collected the primary data from the 25 customers of the Zara. Closed ended set of questionnaire is selected for gathering the feedback from the customers. The main reason behind the selection of this kind of questionnaire is it requires less time to conduct the survey so that time can be saved. The comparison among the responses of different respondents became easier by following this kind of questions (Osborne, 2010). Moreover, the feedbacks that are achieved from the respondents by following this kind of questions are very easy to analyse it statistically. As the answer of the questions provides the feedback of the customers and for collecting, the answer 25 customers are selected, therefore random probability sampling is important to select those customers.(For questionnaire, refer to appendix 1)

2.3 Collate and record the relevant data:

1) What is your gender?

OptionsRespondent%RespondentTotal No. Of respondents
Male28725
Female 721825

Table 1: Gender of respondents

Gender of respondents

Figure 1: Gender of respondents

Table 1shows that maximum customers of Zara are the female and they are 72% of total respondents. The male customers are 28% of the total sample.

2) What is your age?

OptionsRespondent%RespondentTotal No. Of respondents
15-1812325
19-25401025
26-3532825
Above 3516425

Table 2: Age of respondents

Age of respondents

Figure 2: Age of respondents

From the survey table 2 it can be clearly understood that maximum number of customers (40%) are belonging from the 19-25 years of age group. However, substantial numbers of customers (32%) are belonging from the age group of 26-35 years of age.

3) For how long you are been a customer of Zara?

OptionsRespondent%RespondentTotal No. Of respondents
5 months24625
1 year441125
2-3 years16425
More than 3 years16425

Table 1: Time to be the customer of Zara

Time to be the customer of Zara

Table 3: Time to be the customer of Zara

From the survey table 3, it can be clearly understood that 44% customer describes that they are been the customers of Zara since 1 year. On the other hand, substantial number of customers describes that they are been the customers of Zara from 5 months.

4) Are you satisfied with the uniqueness of the fashion provided by Zara?

OptionsRespondent%RespondentTotal No. Of respondents
Yes 601525
No 401025

Table 4: Uniqueness in fashion

Uniqueness in fashion

Table 4: Uniqueness in fashion

The survey table 4 reveals the fact that 60% customers of Zara are satisfied with the uniqueness of the fashion provided by the Zara.

5) How far are you satisfied with the material used by Zara?

OptionsRespondent%RespondentTotal No. Of respondents
Strongly satisfied16425
Satisfied481225
Neutral4125
Dissatisfied12325
Strongly dissatisfied20525

Table 5: Satisfactory factor in material

Satisfactory factor in material

Figure 5: Satisfactory factor in material

It is clear from the result of the survey that 48% customers are satisfied with the materials utilised by the Zara to make their products. However, total 32% customers also describes that Zara must improve their material to make their product

6) Do you think that Zara provide value for money?

OptionsRespondent%RespondentTotal No. Of respondents
Yes 401025
No 601525

Table 6: Value for money

Value for money

Figure 6: Value for money

It is clear from the result of the survey that, Zara does not provide the value for money because 60% customers reveal the fact that they do not provide the value for money.

7) Will you consider Zara to buy products in the near future?

OptionsRespondent%RespondentTotal No. Of respondents
Yes 441125
No 561425

Table 7: Repeat purchase factor

Repeat purchase factor

Figure 7: Repeat purchase factor

The result of the survey describe that 56% customers describe that they will not buy products from Zara in their near future. However, substantial number of customers describe that they will consider Zara.

8) How you will rate the product and customer services provided by Zara?

OptionsRespondent%RespondentTotal No. Of respondents
Very high quality16425
High quality24625
Average quality401025
Low quality12325
Worst quality8225

Table 8: Providing rating to customer service and products

Providing rating to customer service and products

Figure 8: Providing rating to customer service and products

It is seen that 40% customers describe that they will provide average quality rate to the Zara. However, substantial number of customers describe that Zara provides high quality products to the customers.

9) How well the products of Zara meet your needs?

OptionsRespondent%RespondentTotal No. Of respondents
Extremely fine16425
Fine24625
Not so fine401025
Not at all fine20525

Table 9: Product of Zara meets the need of customers

Product of Zara meet the need of customers

Figure 9: Product of Zara meet the need of customers

The result of the survey reveals the fact that most of the customers describe the fact that 40% customers describes that Zara do not meet their need effectively. However, 24% customers describe that Zara meet the need of customers finely.

10) Will you shift to other company if asked?

OptionsRespondent%RespondentTotal No. Of respondents
Yes 521325
No 481225

Table 10: Customer turnover

Customer turnover

Figure 10: Customer turnover

From the result of the survey it is clear that 52% customers describe that they are looking for a shift. However, 48% describes that they are not looking for the shift.

Task 3:

3.1 Appropriate research evaluation technique:

Different types of the research evaluation techniques are the formative, summative, internal and the external. Between those research evaluation technique external and the summative research evaluation techniques evaluates any project after the completion of the project to understand the successfulness of the project (Gomm, 2011). On the other hand, the internal and formative evaluation technique evaluates the research during the implementation of progress of the research. In order to assess this particular project, formative research evaluation technique has been utilised by the researcher. The main reason behind this is by utilising the evaluation technique the researcher can evaluate feedback during the project progress that can help the researcher to edit the project according to the requirements so that intended outcome can be achieved.

3.2 Interpretation and analysis of the result:

Maximum customers of Zara is the female, this is because the marketing strategy of the Zara is set to attract the female customers. However, the organisation sells fashion products for the male but they do not have male focused marketing strategy that can help them to attract the male customers.

It is seen hat maximum numbers of customers that are attracted by the Zara are belonging from age group of 19-25 years because they have both the money and the mentality to follow the trend. Therefore, it is recommended to Zara to set the marketing strategy by considering that age group. However, it is needed for them to fill their store with trendier dresses by which they can attract the trendy middle-aged people and the teenagers.

The result of the survey reveals the fact that most of the customers were been the customers of Zara from 1 year. Very few customers are being their customers from 2-3 years. Therefore, it is important for them to arrange some loyalty program by which they can attract and retain their customer in long-term basis.

The result of the survey reveals the fact that most of the customers are satisfied with the unique design provides by the Zara and they think that they will not mind more unique product rather than Zara. Therefore, in order to keep the image intact they must invests more money to form more unique design.

It is seen from the survey result that most of the customers are satisfied with the material utilised by the Zara. Therefore, they must make a long term relationship with their supplier so that they can get the effective flow of raw materials to make their customers more satisfied with more good quality and unique design products.

It is seen from the table 6 that Zara do not provide value for money because Zara charge a higher price level from their customers that can make their customers highly dissatisfied. However, they describe that Zara provides a good quality product but they sometimes charge unaffordable costs. Therefore, it is recommended to them to set their price according to the disposal income of the customers in particular market.

The table 7 describes the fact that maximum customers describe that they will not buy products from the Zara because of their high price. Customers demonstrate that their monthly budget exceeds the cost of products of Zara so that they want to find another store. Therefore, Zara must follow their product differentiation strategy for different market.

The table 8 describes the fact that however the product quality of Zara is good but their customer service is not good and the product price is also very high. It is seen effective customer services is one of the reason that creates loyal customers. Therefore, it is important for Zara to arrange training for the employees so that they become more customers centred and helps customers to select their appropriate products.

Due to the ineffective customer, services and high product price maximum budget customer do not consider Zara. However, some high-class customers consider Zara to buy products because of their high disposal income. 

It is seen from the table 10 that maximum customers are looking for new company because maximum customers are looking those companies that offer quality products at less costs and who provide excellent customer services but Zara is failed to provide all those value.

3.3 Recommendations and justification of the areas for the further considerations:

Therefore, from the above discussion it can be clearly understood that customers of Zara are not satisfied with the services provided by their employees or their products. Therefore, in order to satisfy the need of customers, it is important to assess the need of customers. Zara can assess the need of customers by conducting an effective survey. Along with that, it is important for them to follow an effective pricing strategy according to disposal income in the market. For example, in order to sell their product in the emerging market, they must follow a competitive pricing strategy so that it can attract their customers towards their product. Moreover, they must provide an effective training to their employees regarding how they should behave with the customers to make them fully satisfied. Along with that, it is also important for them to improve their raw material so that they can provide more quality products to their customers.

Task 4:

4.1 Utilisation of the proper media for presenting the research outcomes:

(Refer to appendix 2)


Appendix 1:

Questionnaires:

1) What is your gender?

  • Male
  • Female 

2) What is your age?

  • 15-18
  • 19-25
  • 26-35
  • Above 35

3) For how long you are been a customer of Zara?

  • 5 months
  • 1 year
  • 2-3 years
  • More than 3 years

4) Are you satisfied with the uniqueness of the fashion provided by Zara?

  • Yes
  • No

5) How far are you satisfied with the material used by Zara?

  • Strongly satisfied
  • Satisfied
  • Neutral
  • Dissatisfied
  • Strongly dissatisfied

6) Do you think that Zara provide value for money?

  • Yes
  • No 

7) Will you consider Zara to buy products in the near future?

  • Yes
  • No 

8) How you will rate the product and customer services provided by Zara?

  • Very high quality
  • High quality
  • Average quality
  • Low quality
  • Worst quality

9) How well theproducts of Zara meet your needs?

  • Extremely fine
  • Fine
  • Not so fine
  • Not at all fine

10) Will you shift to other company if asked?

  • Yes
  • No 


Appendix 2:

IMPACT OF CUSTOMER SATISFACTION ON THE BRAND LOYALTY: A CASE STUDY OF ZARA

Customer satisfaction on brand loyalty towards Zara



Customer Testimonials