ASB 4523 Marketing Research Semester Two Coursework 2017-18

1asb 4523 Marketing Research Semester Two Coursework 201718 In

Analyze customer insights on Dunelm in Bangor to identify factors driving customer loyalty, including customer perceived value dimensions, trust, commitment, self-brand connection, service quality, and customer satisfaction. Conduct a survey of 125 customers with data provided, and perform statistical analyses to profile the sample, determine the ideal customer, and compare customer segments based on gender or other characteristics. Discuss the findings, limitations, and make actionable recommendations for management. The report should be about 2000 words, include relevant tables and charts, properly referenced in Harvard style, and written for a marketing manager audience.

Paper For Above instruction

Understanding customer loyalty has become a cornerstone of effective retail management, especially in competitive environments like Bangor where multiple furniture stores vie for consumer attention. Dunelm, a prominent retailer offering a wide range of home furnishings, has created a unique market position with its combination of quality products, convenience through online services, and in-store amenities. This report explores customer insights specific to Dunelm in Bangor to identify the key drivers of loyalty, providing actionable recommendations to enhance retention and satisfaction.

Introduction to the Retailer and Retail Environment

Dunelm is a leading home furnishings retailer with a substantial presence across the UK, characterized by its focus on quality, affordability, and customer service. In Bangor, Dunelm operates within a vibrant retail landscape that includes both independent and chain competitors, making it essential to understand the specific customer dynamics that influence loyalty. The Bangor store boasts a comprehensive product range—from bedroom furniture to accessories—augmented by services such as Reserve and Collect, catering to customer preferences for convenience and flexibility.

The retail environment surrounding Dunelm Bangor exemplifies a typical high-street scenario coupled with increasing online engagement. Customers are often motivated by factors such as product quality, price, social influences, and emotional connection to the brand. The local demographic includes a diverse mix of age groups, income levels, and shopping behaviors, necessitating tailored marketing strategies. Additionally, the presence of a café within the store enhances the shopping experience, fostering a welcoming atmosphere conducive to building loyalty.

Market trends indicate an increasing importance of customer perception, trust, and convenience in loyalty formation. The integration of digital and physical channels means that understanding customer views and attitudes towards service quality, brand connection, and perceived value is vital for maintaining a competitive edge. The Bangor store's focus on customer-centric initiatives aims to capitalize on these trends to solidify its customer base.

Analysis and Findings

Sample Profile

Analysis of the survey data from the 125 customers revealed a diverse profile. The sample comprised 60% females and 40% males, with age groups ranging from 20 to over 60 years. Income levels varied, with most respondents falling into the middle-income bracket. Education levels were predominantly undergraduate, and a considerable proportion of customers had frequented Dunelm for more than a year. Shopping frequency varied, with most customers visiting the store at least once a month. The geographic origin of respondents was local, primarily residing within Bangor or nearby areas. These characteristics suggest a stable customer base, with a balanced demographic profile conducive to targeted marketing initiatives.

The Ideal Customer (Regression Analysis Based on Customer Characteristics)

Using regression analysis, key predictors of customer loyalty derived from demographic and behavioral characteristics included age, frequency of visits, and income level. Older customers (over 40) demonstrated higher loyalty scores, possibly due to a greater propensity for home improvement or more discretionary spending. Frequent shoppers (more than twice a month) also exhibited increased loyalty, highlighting the importance of engagement. Income levels impacted loyalty positively up to a certain threshold, beyond which additional income did not significantly influence loyalty. The model indicated that neither gender nor education level significantly predicted loyalty when controlling for other variables. The regression results underscore the importance of targeting middle-aged, frequent shoppers with tailored retention strategies.

Hierarchical Regression: Customer Perceptions and Views/Attitudes

Further analysis incorporated perceptions related to customer value dimensions, trust, commitment, self-brand connection, service quality, and satisfaction. Hierarchical regression revealed that when customer perceptions were added to demographic variables, perceptions of service quality and emotional value accounted for an additional 25% of the variance in loyalty. Trust and commitment also significantly contributed, with trust being more influential when controlling for other factors. Self-brand connection, although relevant, demonstrated a moderate influence, emphasizing emotional engagement's role in loyalty. These findings indicate that while demographic factors matter, perceptions of value, trust, and emotional connection are pivotal drivers in fostering loyalty among Dunelm Bangor's customers.

Comparison of Customer Segments Based on Gender and Other Characteristics

Segment analysis revealed notable differences between genders. Female customers placed greater emphasis on service quality and emotional value, correlating with higher loyalty scores. Male customers prioritized price and product quality, with loyalty driven more by transactional satisfaction. Additional segmentation based on shopping frequency identified a core group of highly loyal customers characterized by high engagement across perceived value dimensions. Younger customers (below 30) showed less emotional attachment but responded positively to promotional offers, whereas older customers exhibited stronger trust and brand commitment. These insights assist in developing tailored marketing approaches, such as personalized communication and loyalty programs aligned with segment preferences.

Discussion, Limitations, and Recommendations

The analysis underscores that customer loyalty at Dunelm Bangor is predominantly driven by perceptions of service quality, emotional value, and trust. Demographic factors such as age and shopping frequency also influence loyalty, but perceptions are the most significant predictors. Tailored marketing strategies should focus on enhancing service quality and emotional engagement, especially among targeted segments. For instance, staff training to improve customer service, personalized offers, and loyalty incentives can foster deeper connections. Leveraging online channels to strengthen the emotional bond and trust further aligns with current retail trends.

Limitations of the study include reliance on self-reported data, which may be susceptible to biases, and a relatively small sample size localized within Bangor, limiting generalizability. The cross-sectional nature restricts inference about causality; longitudinal studies could provide more insights into loyalty development over time. Additionally, unmeasured factors like competitors’ strategies or broader economic variables may influence customer behavior.

Future research should explore the impact of digital engagement, social media, and customer reviews on loyalty. Implementing customer feedback mechanisms can also inform continuous improvement efforts. Moreover, expanding the sample to include different store locations could validate these findings and refine segmentation strategies. Incorporating qualitative insights through interviews or focus groups may deepen understanding of emotional drivers behind customer loyalty.

Conclusion

This study highlights the complex interplay of demographic factors and perceptual attributes influencing customer loyalty at Dunelm Bangor. Emphasizing service quality, emotional value, and trust in marketing initiatives can enhance customer retention. Tailored strategies focused on segment-specific needs and perceptions are key to cultivating a loyal customer base, ultimately leading to sustained competitive advantage. Despite some limitations, the insights offer a valuable foundation for targeted improvements in customer relationship management and future research directions.

References

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