Introduction
Net Promoter Score is the marketing technique that is used to identify customer satisfaction from products and services offered to them by the organization. And it is very easy to determine the positive as well as negative reviews of customers.
Two Journal papers are used to complete the research proposal. The authors of the first journal article are Sven Baehre, Michele O’Dwyer, Lisa O’Malley, and Nick Lee. They have discussed that what is the use of the Net Promoter Score to predict sales and growth insights of the organization.
The second journal article is written by Ms. Nandhini Rajasekaran and Mr. Dinesh. N on How Net Promoter Score relates to Organizational Growth. And they have discussed that NPS is considered as the single best metric for determining the sales growth of a company.
Literature Review
The importance of Net Promoter Score should be considered important as it helps in offering an inspirational, and motivating purpose for the organization and it can provide customers useful and real-time feedback for improvement. With the help of Net Promoter Score, customer feedback can be taken and for the key decision processes and it can create closed learning as well and identify the loops of improvement. Also, the managers who are using the Net Promoter Score can easily get feedback and identify the opportunities as well as initiatives with the use of feedback (Hyken, et al., 2016).
According to Piotr Korneta, (2018), the loyalty of customers is closely related to customer satisfaction, but it can be said that customer satisfaction is directly proportional to their loyalty because if they are satisfied, they can become loyal customers for the organization. According to Reichheld, loyalty is defined as the willingness of someone and for that, they invest to make that relationship stronger. And it is also said that customers are loyal when they repeat their purchases, but according to this statement, it is not true because repeat purchases are the reason for the lack of alternatives. According to Mihardjo (2019), NPS can be more actionable and for that insight is required for gaining the drivers of the customer experience, and with the help of proper implementation of Net Promoter Score, it can able to provide the insights of customers which can ultimately help in improving organizational growth. According to Daniel Schneider, (2008), the customer company interaction can ultimately increase and influence the satisfaction of customers, and they will also provide recommendations for the betterment of the company, and ultimately their liking to the products and services offered by the company will also increase.Mohamed Zaki, (2016), empirically investigated that net promoter score is the loyalty metric, and it can be used to determine the overall business performance, and most importantly he said that businesses and organizations should not solely be dependent on a customer feedback system, but monitoring the customer feedback posterior assist to identify the areas of improvement, and NPS can be used for the managerial decision-making process.
There are several things that we don’t know about the topic is that how to use the Net Promoter Score and what is the application is well as what charges need to pay for using the Net Promoter Score. There is a knowledge gap in the research proposal which states that how customer loyalty is directly related to the retention of customers and growth of the organization. Limited authors have been taken for completing the research and more research papers can be taken from different locations. So, there is a recommendation for future research that research papers of different authors from different locations can be taken as well. And more insights of customers can be used as the research which can be directly related to the Net Promoter Score.
Research Question
RQ1 – What is the relationship between customer loyalty and organizational growth? (Sven Baehre, et al., 2021).
RQ2 –How the Net Promoter Score will be calculated? (Prof Dinesh N Rao, 2018).
Hypothesis
- H0 – NPS has not any relationship with the growth and sales of the organization
H1 – NPS has a direct relationship with the growth and sales of the organization.
Dependent variable – NPS affect the growth and sales
Independent variable – The type of growth of the organization.
- H0 – NPS does not generate profits for the organization
H1 – With the help of NPS, profits can be generated.
Dependent variable – generating profits
Independent variable – how much profit is generated.
- H0 – Problems cannot be estimated with the use of NPS
H1 – Problems are easily estimated and assessed with the use of the Net Promoter Score.
Dependent variable – Problems are easily estimated
Independent variable – What type of problems can be estimated.
- H0 – NPS does not allow the organization to assess the right path to success.
H1 – Right path can be assessed with the use of the Net Promoter Score.
Dependent variable – Right path can be assessed.
Independent variable – how the right path can be assessed.
- H0 – NPS has no relationship with the market value
H1 – NPS has a relationship with the market value.
Dependent variable – Market value
Independent value – how to retain the market value.
Research Philosophy
With the use of Research paper 1, the realism research philosophy is used because it is directly based on the assumption of scientific knowledge which has been developed (Sven Baehre, et al., 2021).
With the use of Research Paper 2, the Positivism research philosophy is used. Positivism research philosophy is confining to the system which can itself to the data for the experiencing and does not include any kind of metaphysical speculation. And it is easy to make quantitative analysis (Prof Dinesh N Rao, 2018).
The most appropriate philosophy for answering the research question is Positivism Research philosophy because it has provided the deep analysis of results and then results can easily be codified with all the laws and predictions which have been set.
A comparison between the realism and positivism research philosophy is that positivism research will be verified with all the observations and experiments as well as with the use of logical evidence. But realism research philosophy states that the world exists independently of the world. And that is the reason why positivism research philosophy is the most appropriate way.
Research Design
Different research design has been used in this research proposal. A multi and mixed-method of research design is used here.
Research Design in Qualitative of Journal paper 1 (Sven Baehre, et al., 2021).
Research design is Quantitative of the Journal paper 2 (Prof Dinesh N Rao, 2018).
The most appropriate research design for answering the research questions is the Quantitative research design.
The time scale in which all the different parts of the research proposal will be completed in approximately 2 weeks.
So here, both the designs and methods are used of research design in preparing the research proposal. From the first journal paper, Qualitative data has been extracted and from journal paper 2, quantitative data has been extracted. A mixed-method of research design is more preferable because using only one method would provide only limited information from two different journal articles and a mixed-method allowed to take qualitative as well as quantitative both kinds of information from two different articles and information can be in form of any ration. This means 40% quantitative data and 60% qualitative data or 50-50 ratio.
Research Strategy
The research strategy which is used to complete the research proposal is quantitative and qualitative which is known as the mixed research strategy for preparing the research proposal.
From Journal Article 1 – Qualitative research design is used (Sven Baehre, et al., 2021).
From Journal Article 2 – Quantitative research design is used (Prof Dinesh N Rao, 2018).
The most appropriate research design for this proposal on the importance of Net Promoter Score in generating profitability in organizations is a mixed research strategy.
A mixed research strategy is better than using solely quantitative and qualitative research design because in mixed strategy both types of data can be calculated for answering the research questions.
Data Collection Method
The Data Collection Method which is used herein in preparing the research proposal is secondary research data because data has been collected from two different websites.
The secondary data collection method is the most appropriate way of collecting data because it is the most economical way.
To compare between the primary and secondary data collection methods, the secondary data collection method is less time-consuming as well as it is the most economical method as compared to the primary data collection method.
In the sampling method, the non-probability sampling method is used and it is considered as the most appropriate way if compared with the probability sampling method. Because the non-probability sampling method gives accurate answers and the sample is selected on the random criteria.
Conclusion
In the end, it is concluded that the Net Promoter Score (NPS) is used to extract the information on customer insights and their feedback. Qualitative research methodology is used because the information has been gathered from journal articles. Although the information that has been extracted from journal articles is quantitative as well as qualitative. And the data collected from journal articles have answered the research questions as well.
References
Sven Baehre, Michele O’Dwyer , Lisa O’Malley and Nick Lee, 2021. The use of Net Promoter Score (NPS) to predict sales growth: insights from an empirical investigation. file:///C:/Users/DELL/Downloads/The_use_of_Net_Promoter_Score_NPS_to_predict_sales%20(2)%20(1).pdf
Prof Dinesh N Rao, 2018. HOW NET PROMOTER SCORE RELATES TO ORGANIZATIONAL GROWTH. https://www.researchgate.net/publication/328305049_HOW_NET_PROMOTER_SCORE_RELATES_TO_ORGANIZATIONAL_GROWTH
Devlin, M.A., 2020. Comparing Net Promoter Score and JD Power Customer Satisfaction Index: Retail and Small Business Banking. Wilmington University (Delaware). https://www.proquest.com/openview/35d1ba10e123344a6f9f73b1e27906d1/1?pq-origsite=gscholar&cbl=18750&diss=y
Hyken, S., 2016. How effective is net promoter score (NPS). Forbes Magazine, pp.12-13.https://romanrepublic.org/roma/wp-content/uploads/mediapress/members/2/309/How-Effective-Is-Net-Promoter-Score-NPS.pdf
Korneta, P., 2018. Net promoter score, growth, and profitability of transportation companies. International Journal of Management and Economics, 54(2), pp.136-148. https://ssl-kolegia.sgh.waw.pl/pl/KGS/publikacje/Documents/IJME_54_2.pdf#page=58
Mihardjo, L.W.W. and Sasmoko, R.A., Fostering Net Promoter Score: Crafting User Experience in Difference Cultural Ecosystem. Health, 95, p.62.https://www.researchgate.net/profile/Leonardus-Mihardjo/publication/335728394_Fostering_Net_Promoter_Score_Crafting_User_Experience_in_Difference_Cultural_Ecosystem/links/5dba5c564585151435d62682/Fostering-Net-Promoter-Score-Crafting-User-Experience-in-Difference-Cultural-Ecosystem.pdf
Schneider, D., Berent, M., Thomas, R. and Krosnick, J., 2008, June. Measuring customer satisfaction and loyalty: Improving the ‘Net-Promoter’score. In Poster presented at the Annual Meeting of the American Association for Public Opinion Research, New Orleans, Louisiana.https://www.van-haaften.nl/images/documents/pdf/Measuring%20customer%20satisfaction%20and%20loyalty.pdf
Soerensen, B.L., 2014. The relationship between Net Promoter Score and financial performance in a business-to-business market. Knowledge Economy Society, p.315. https://cfm.uek.krakow.pl/media/files/54/53/CFM_2014_ksiazka_3.pdf#page=316
Van Bennekom, F.C. and Klaidman, S., 2014. Survey mode impact upon responses and net promoter scores. http://greatbrook.com/wp-content/uploads/2015/05/Survey_Mode_Impact_Upon_NPS.pdf
Zaki, M., Kandeil, D., Neely, A. and McColl-Kennedy, J.R., 2016. The fallacy of the net promoter score: Customer loyalty predictive model. Cambridge Service Alliance, 10, pp.1-25.https://cambridgeservicealliance.eng.cam.ac.uk/system/files/documents/2016OctoberPaper_FallacyoftheNetPromoterScore.pdf