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ABSTRACT Normally, the marketing people give attention only to the new customers and not to the regular

customers. Nowadays, however, in markets the shares are slowly losing its status in the market field. This is now being seen as a serious issue and it is taken as a high risk factor, since, more people are interested in this field, which gives good profit to them (Hansemark and Albinsson, 2004). Due to these changes in this field, new ideas has came now in marketing, which deals with the regular customers. They give importance to regular customers to make tie with them long-lasting. From them they get new customers too. To increase new customers is their main goal, for that they introduced new strategies in business to increase their turnover (Lacey and Sneath, 2006). Due to this, by the year of 1995, the company changed the vision towards business, in all parts of concern. The innovation had been made by the company in making decisions, in developing the quality of products, and is balanced well. The very noticeably, thing they made is, approaching its customers, from that day the company started ‘clubcard’ and it is a customer’s wellbeing program (Kelly, 2002). The food products retail industry is a competitive one. Always the buyers expect good and worthy items from the retailers. It was quite old during the introduction of the company and what made it work for them was the good customer service that was offered. They give best service to the customers that are their success. This paper investigates the concepts of loyalty and customer satisfaction in Tesco. This paper also presents the investigation on the conditions of customer loyalty with improves the profit and promoting loyalty for consumer relations. Some of the key factors for the success of Tesco are clearly presented and evaluated in the research. Qualitative research method is used for collecting the secondary data from the resources like journals, articles and the websites. The loyalty of the customer has been indentified in the Tesco and their effects will remain as a major key factor for the success of the sector.

CHAPTER 1 1. INTRODUCTION This section will include the brief introduction of the Tesco and its clubcard. The major concept of the research work is to analyze the customer loyalty of the Tesco and its strategies. The aim and objectives of the research work will be illustrated briefly and the rationale of the research work will also included in this section that it shows the importance to carry the research work. The scope of the research will describe the purpose and also use of the research work. The strength and limitation of the research work will also be included in this section and it shows the in-depth concept and the issues faced by the researcher while carrying the research work. 1.1 TESCO AND ITS CLUBCARD The Tesco Clubcard proved itself as a serving concern. The company’s key of success to attain this height is ‘to create value for successes. They do the right things, in the right time to their customers that what they need and also understand the customers well. The company won by earning the new customers and maintaining its old and existing customers with the stable service for a long time. It works with its distributors and the important thing is its allowance by making the clients or giving them a chance to get a view of the needs of the end user. The company succeeded only because of their new innovative ideas (Alexander, 2002). The company is the second leading market before the clubcard. It is a globally successful means of shopping through the internet and has developed economically which has serviced the industries and also debatably been the most prospering examples of customer relationship management (Bowen and

Chen, 2001). The company’s clubcard is large that means the maximum prospering CLP function is applied to the public of the country among the huge variety of reward schemes and 40% of the total percentage is dynamic in some weeks and about 83% of the company's profit is moving via the clubcard (OMalley and Tynan, 2000). Not many could then question or raise their suspicions about the card which stands as the proof of the company’s innovativeness. This quite clearly gives us an indication regarding the cards advantages and presents the composition through the company clientele such as inscription and so forth. The company might not have acquired this position not for the clubcard and it is not finished as rapidly or inexpensively unless the loyalty scheme has a view of the work done. When all the clientele speaks to the consumer and himself being in the spotlight, the company has made the consignment concrete (Lacey and Sneath, 2006). The card includes the features about the clientele offered and to whom it is done etc. It serves like the consignment for helping clients, and almost, peakto-minimum retailer’s pragmatism. The company caused the consumer loyalty trading function , while a different British supermarket loyalty code by the year of 1990s neglected, hesitated or chanceless acquired by them(Reichheld et al, 2000). In the year of 1995, headlines has announced the fatality of loyalty strategy, commonly backed by different retailers whose loyalty plans are remote storages. Still clubcard is queried as a calculated precedence by the administration. Instead of that, the company answered the critics in style by replying the critics in the form of the valuable design of the card and the company has not discovered that their loyalty code is quite expensive. The company caused clubcard function that it could determine out the clients requirements and also produce the sufficient sales by fulfilling these by covering the price that the customers need (Thiele and Bennet, 2001). 1.2 AIMS AND OBJECTIVES 1.2.1 AIM

1.The aim of this dissertation is to evaluate the customer loyalty in TESCO and its customer loyalty program. the favorable outcomes are not achieved in easy manner for all the adopted strategies of customer loyalty. the following review analyzes the loyalty consequences of the clubcard by which it has a greater market influence.3 SCOPE As the review analyzes the company’s clubcard completely. 1. loyalty of the customer plays a major role. Also. The research majorly concentrates on the key factors of the Tesco along with its business strategies. Tesco gives importance to the customers’ loyalty and by identifying the loyalty of the specific organization will assist the other organizations to preserve the loyalty of the customers.5 METHODOLOGY Consequently to promote the previous objectives.2 OBJECTIVES • To study the customer loyalty and customer satisfaction • To analyze the customer loyalty and customer satisfaction of Tesco • To analyze the view of customer regarding the Club card scheme of Tesco 1. Also. by this the customers’ satisfaction will be attained.2. Deductive. The upcoming investigation will review the other traders in sequence that is capable to acquire the actual concept consumer-loyalty in Tesco.4 RATIONALE The major importance of this search will help the sector to identify the loyalty of the customers because for a successful organization. 1. this review brought into the report of the pair of qualitative and quantitative investigation plans that is frequently essential for 'triangulation' that stands for 'being restricted in addition to a couple of places’ (Green et al. 2002). due to the .

The company's loyalty strategy recommends that a strategy of the loyalty could have a sustained influence on the minimum channel while.subsisting procedure that is used for trustworthiness and faithfulness along with the influence done for clientele determinations and approach tested by the information and inductive. recorded interviews. 1. clientele news medium ideas. Both the quantitative and qualitative research is used in this research work. online articles. Qualitative alternative details from a category of resources is assembled such as the company case analyzes. by its origination. The major data is accumulated by stopping the public in the shopping stores and getting their opinion (zikmund. the company booklets. A practical knowledge about the company will be obtained since the engagement of the experimental interrogation about the trustworthiness factor which is present in the specific trade company.6 CONCLUSIONS AND RECOMMENDATIONS The company's dependability has turned out to be a support for the clientele strategy if it has got an assistance with the company in their development other than being an excellent food seller. due to the facts that accumulated and then examined by affording the recent attributes to the trustworthiness procedure for the process that are available in clientele determinations. it alters the dynamic culture of the management. 2000). the company’s consumer detail properties are the practices that will permit to acquire the consumer’s priority by the administration (Odin et al. While the panel distinguishes by . 2001).g. in continually exploring the behavior as the rate-summing up the representative for its clients. mintel) data sets. In the view of attaining the data for the specific purpose of the study is the secondary data which are collected from the books. investigation authority (e. The data acquired by quantitative research method from the company industry and also various superstores is accumulated and then examined by comparing the loyalties impact. articles. the company websites. journals and trusted internet resources like e-books and other materials. newspaper and also journals.

Section 2 gives the previous literatures about the general concepts of loyalty among the customers and its classifications. the data collected are well analyzed by in-depth manner and it shows the effects and efficiency of the customer loyalty on the Tesco. 1. articles and websites. The data are collected from the secondary resources like journals. Since it provides the information for the research work will be very accurate and efficient.7 LIMITATIONS OF THE RESEARCH The research work carries the secondary data for analyzing the concepts of customer loyalty in Tesco. This research shows that the Tesco shows more concentration of the loyalty of their customers. then the measurable economical status in method. It renders a brief illustration regarding the data collection method. This chapter also gives a brief illustration about the aim and objectives of this dissertation. The collected information regarding the concept will not provide the actual data to carry the research.9 DISSERTATION OUTLINE Section 1 includes the introduction of description of the customer loyalty of the Tesco and its strategies. 1.8 STRENGTH OF THE RESEARCH The research work carried out in the Tesco regarding their loyalty of the customers. Section 3 shows the methodologies that are applied in this research work. The data obtained for this research work is by using the secondary collection method. The information may vary from source to source and this may affect the result of the research. Section 4 is the data analysis chapter.which the loyalty strategy information is the clientele fundamentals. 1. . Section 5 is the conclusion chapter that concludes by suggesting recommendations for the enhancement of the customer loyalty in Tesco. work force and also the sources that actually begins to provide the allowances. In this section.

1 INTRODUCTION Clearing the commotion in regards to the loyalty concept is the intention of the literature review chapter. Likewise. The aim and objectives of the research work has been clearly illustrated in this section.1. It gives an overview about strength and limitation of the research work and also it illustrates the methodologies that are implemented in this research. LITERATURE REVIEW 2. CHAPTER II 2. Bringing out the actual meaning of the loyalty . Tesco is a sector majorly concentrates on the loyalty of the customer. This section shows that the loyalty of the customer is very essential for a company’s growth and development.10 SUMMARY This section includes the brief introduction of the loyalty of the Tesco.

The causes for the popularity and the unexpected rise in the Tesco loyalty schemes are also analyzed in the literature review chapter of this research. An elaborate account of the related models and the frameworks that have been put forth by the purists are also made in this chapter as well. one among the most repetitively discussed and much misconstrued concepts in modern times has been the loyalty concept. Few authors utilize consumer loyalty in an interchangeable manner with supplementary constructs which comprise the consumer retention process and the repeated purchasing behavior of the consumers in Tesco. The repeated purchasing behavior of the consumers does not happen without any reason and there is always a reason for the performance of such an activity by the consumers. The consumer retention in Tesco does not result in constructing loyalty among the Tesco consumers. The stand alone entity or a portion of the complete strategy which assists in strategic decision making and its formation in Tesco is the assessment that is made in regards to the successful loyalty programs that are conducted. Stressing the hype and hoopla that is possessed by the loyalty schemes and the myths that are related to the hype and the hoopla of the loyalty schemes in Tesco are analyzed in the conclusive stages of this research. 2. According to Butscher (2001). The construction of consumer loyalty is not similar to the construction of the repeat purchasing behavior of the consumers as purchasing on a repetitive basis is an intentional function of the buyer which is also recommended by some authors as well (Brown and Stanley. This utilization made by some authors is an evidence of the consumer loyalty being regularly discussed and most misconstrued concepts in modern times.concept on clearing the commotion in regards to the loyalty concept by considering it as a behavioral and an attitudinal attribute in Tesco is the main intention of the literature review chapter in this research process. A purely behavioral character is . 2000).2 LOYALTY – THE EXLUSIVE PHENOMENON Ang and Buttle (2006) states.

Jones and Taylor (2007) mentioned that when the purchaser feels a strong purchasing preference along with a high level of perceived product differentiation. salespersons. The behavioral and the attitudinal dimensions of loyalty construct are observed in the concepts of constructing the loyalty among the consumers in modern days.2. services. products and the stores by the customers and the consumers is termed as Loyalty.1 CONCEPTS OF LOYALTY CLASSIFICATION (FROM Tesco’S AND OTHER RETAILER’S PERSPECTIVE) • Transactional loyalty. The degree of preference and the degree of perceived product differentiation are the two dimensions which shape the attachment of a consumer towards a product or service in Tesco. The focus of loyalty is felt on the intrapersonal aspects of the consumer’s behavior in contrast to Tesco being an active party in constructing retention among the consumers in modern days. the buying behavior of the consumers could witness an alteration or could already be altered and the causes which . Davis (2005) said that The differences made by the customer in regards to the product or the service used by him in contrast to the products that are looked upon as alternatives are observed in the degree of perceived product differentiation which is the second dimension in shaping the attachment of a consumer towards a product or service in Tesco. 2005). A prerequisite to the loyalty factor is the level of attachment felt by a consumer towards a service or a product. the attitude to the brands. The extent of consumer’s conviction in regards to the product or the service is stated as the degree of preference held by a consumer. 2. As per the review of Cater and Cater (2009). The repeated patronage of the consumer towards the product or the service is the second factor that marks the consumer’s loyalty (Coyles and Gokey.only observed in the consumer retention process in recent times. the occurrence of a maximum amount of attachment of a consumer towards a product or a service usually happens to the consumer in Tesco superstores.

2005). • According to Moraga et al (2008). Due to the perceptual loyalty concept reflecting possible behavior patterns that can be formed in the future and not reflecting past behavior patterns. Complex loyalty. the combination of the transactional and perceptual loyalty is observed in the complex loyalty. the perceptual loyalty concept is on occasions considered to be more important among the consumers from the view of Tesco. Tesco’s form of loyalty which is less transactional and more emotional are dealt in an additional manner in this research due to Tesco encouraging transactional loyalty by making its concentrations on the emotional aspect of the consumers and their behavior (Tesco. 2007). the perceptual loyalty concept will be dealt in an elaborate manner in this research. Due to the close associations to the commercial results being possessed by the transactional loyalty in Tesco. • The vital goal of a superstore happens to be the achievement of transactional loyalty by it. .stimulate such alteration among the consumers could not be clear in a transactional loyalty (Keiningham et al. The concentrations of Tesco on more emotional features are the means by which the transactional loyalty is supported by Tesco. 2004). The softer side of Tesco which is the attitudes and opinions of the consumers are the major concentrations of Tesco in this research and due to this reason. the opinions and attitudes of consumer which are significant but do not hold any necessary impacts on the purchasing behavior of the consumers are analyzed in the perceptual loyalty concept of the consumers (Lovaglio. the widely and popularly chosen choices are the transactional loyalty in Tesco (Tesco. 2005). • Perceptual loyalty.

when the consumer purchases a new or a different product or service from the similar supplier is called as cross selling loyalty (Uncles et al. it is termed as the repeat purchase behavior of the buyer. Due to the presence of several illustrations of the consumers changing the suppliers in spite of achieving high levels of satisfaction . Purchases that are made from a similar supplier of the same product or the service in a usual manner by the consumer is called as up selling loyalty by the retailers. PERCEPTUAL LOYALTY • SATISFACTION – The context of the satisfaction levels felt by the consumers of a product or a service is the simple and the apparent means by which the loyalty of the consumers can be calculated by the retailers. The Tesco employees provide details in regards to the new products to the consumers for the sake of selling them to the Tesco consumers. • UP-SELLING – according to Humby et al (2007). • PERSISTENCY – Instead of concluding a relationship among the retailer and the consumer. maintaining that relationship among them is termed as persistency loyalty by the retailers (Ang and Buttle.TRANSACTIONAL LOYALTY • CROSS-SELLING – Instead of choosing an alternative. Products which are of a branded and high quality nature are supplied to the Tesco consumers to make them buy Tesco products on a continuous basis (Tesco. • REPEATS PURCHASE – When the similar requirement arises and when the similar products are bought by the consumers. 2006). 2010). 2003).

the satisfaction of the consumers must alone not be accounted for calculating the loyalty of the consumers to the retailer (Brown and Stanley. Tesco is one of the leading retailers and it proves the high brand value of Tesco (Tesco. . • AWARENESS – The degree to which the business is familiar within the target market of the business that is attained by the Word-of-Mouth recommendations or by the extent of the knowledge of the supplier is identified as the loyalty function by the awareness concept of the retailer and the consumer. 2005). • BRAND VALUE – The strength of the communication and the wide consumer awareness are the factors which are relied by the strongly branded businesses that offer the consumers a thought to deal with the right companies which might otherwise not be considered by the common man on his own. Greater insights in the satisfaction levels and the means by which these satisfaction levels associate to the loyalty of the consumer that will bring the researcher nearer to the research objectives is also offered in this research. 2005). 2000). 2005). Customer satisfaction in Tesco is one of the reasons for the success of Tesco and its loyalty program (Tesco. COMPLEX LOYALTY • LIFETIME VALUE – The lifetime value in Tesco is generated by calculating the commercial benefit of the relationship with a consumer over a period of time by Tesco retailers. The availability of the new products and creating awareness about their presence in Tesco to its consumers must be made by Tesco (Tesco. Achieving the satisfaction of the consumer’s providing them high quality and branded products and retaining them is attempted by Tesco with its consumers.from them.

In the course of the research. The brand name. 2. a little preference margin and an incremental shift in the buying behavior of the consumer is attained when the retailers aim at winning and maintaining the loyalty of the consumer with the retailers. • A slight additional goodwill. The key objectives of the Tesco’s clubcard are to increase the value of the brand and to avoid the consumers from becoming fatigued to a brand alone (Turner and Wilson. the details regarding the enhancement of the brand value and the measures to avoid brand fatigue which are the key objectives of the Tesco’s clubcard are analyzed in an elaborate manner.1. high customer satisfaction and the loyalty schemes of Tesco improves the customer loyalty and customer retention in Tesco (Tesco. 2010).• Guaranteeing the return of the consumer to a provided supplier on a regular basis is the main intention of branding and this is also the relative benefit that could be attained by the competitor if the branding process is not performed by the retailer. 2006).2 LOYALTY CONCEPTUALIZATIONS .

2008). there is yet few contract while it approaches to evaluating it . The customers’ loyalty behaviour of Tesco can be identified by the customer retention in Tesco (Tesco.Three well known factual of loyalty proofs are suggested: Loyalty is the primary thing that creates the relationship with the brand. and the buying scenario (Rowley. The behavior of the customer is measured by how they loyal to the brand or product and the nearest factor to determine the behavior of the customers (Waarden. Loyalty . This argument was started before 30 yrs and still it continues. Loyalty has been mostly specified and determined with behavioral conditions (stochastic method). Loyalty can be exposed in terms of the repeated purchase of the customers and also purchasing controlled by the single characteristics. situations. As per Rowley (2007). The supporter of stochastic method argues that the customer who buys the same brand or product consistently is considered as the loyal customers. or attitudinal conditions (deterministic method) and even though it has been recommended by which procedure must be realized in both the conditions. 2005). 2010).

CONSUMER SATISFACTION: According to Brink et al (2006). habit or it may be for some other reasons (Capizzi and Ferguson. 2005). it is difficult to compare satisfaction and loyalty and the relation between them is not similar. the satisfied customers are not determined by their repeated purchase and this may result to find the loyal customers. Furthermore. In Tesco. they are expected to have a collection of more than two products inside the merchandise sort from that they usually purchase. Definition for consumer purchasing is given by stochastic pattern. Many researchers stated that the true loyalty can be achieved by the strong attitudinal behavior of the consumers of Tesco. However there is belief that the customers who are loyal to the brand are always satisfied customers and the satisfaction is a changeable factor and it cannot be predicted by the repeated purchase of the customer. the customers’ loyalty is also considered as the repeated purchase of the same brand (Tesco. The weak commitment is created by the repeated purchase of the brand. The limitation of this approach is it does not state that the frequent purchase has been made due to the situation. The loyalty can be isolated and controlled by certain factors that include customer satisfaction and commitment and trust. however. Loyalty can be defined as the commitment to continuously buy the preferred product at every time which causes the repetitive purchase of the same brand. For Tesco. But the customer’s of the Tesco purchases the same brand consistently because they do not want to waste the time by searching for other product. • COMMITMENT AND TRUST: . they have been recommended that some customers were 100% loyal about the brand. 2005). The true fact is that this method is slightly difficult for Tesco as it assumes loyalty behavior to be complicated and the realization has not happened as a result of increased amount of descriptive inconsistency.can be defined and observed as the behavior of repeated purchase of the customer.

Maintaining regular consumers and obtaining new consumers are facilitated by loyalty and this is the assistance of the loyalty feature to Tesco. The attainment of more number of consumers could be made by the loyalty frameworks which is the reason behind Tesco concentrating on loyalty frameworks as well. Tesco can be constructed through the attitude and behavior of the customers. As mentioned by Ang and Buttle (2006). 2010). The positive attitude of the Tesco’s customers formed by the favorable interactions of the customer behaviours is known as Loyalty. Likewise.Trust and commitment are the two factors important for the success of the relationship marketing. Trust reflects the confidence of the customer towards the brand. their reflection towards the brand is made by the customer’s confidence (Tesco. the equity and value of the brand are directly influenced by the loyalty of the consumers to it which is the cause of the loyalty being required by the companies. The intensity of loyalty is measured by the deterministic approach and it is not based on the disagreement of the loyalty and disloyalty. While considering the trust of the Tesco’s customers. the purchasing behavior of the Tesco’s customers cannot be determined by the frequent buying of the same product (Smith et al. More . The psychological attachment to the brand and the wish to maintain the relationship with the customers reflects the commitment. The combination of satisfaction and the exposed behavior of the customers are not enough to predict the loyalty. The relationship and behavior of the customer explains the loyalty of the customers despite the sociological and psychological attitude of the customers. From this loyalty. The problems can be reduced by developing the hybrid framework that combines both the dimensions of loyalty.1. Any organization requires loyalty from its consumers. 2.3 LOYALTY FRAMEWORKS The requirement of loyalty is felt by most companies that are presently successful in their business. 2004). However the deterministic approach in Tesco disagrees believing the declarations of the customers without analyzing the behavior of the customers.

Loyalty program could extend the purchase of the Tesco’s customer more frequently.1. The two objectives of customer loyalty programs are there. both the loyalty programs are used by Tesco and thus the quality and the profits are improved. reduction expense. cause larger customer . 2001).reduces the need to choose another brand . The company may be forced to satisfy the inflated needs of the consumers due to the additional amount of anticipations that are possessed by the loyal consumers (Berman and Evans. The next goal is more protective. 2001).4 REASONS FOR LOYALTY POPULARITY’S RAPID INCREASE Consumer loyalty is a calculated method for developing investor’s rate through the growth of suitable relations with key clients and consumer sectors. The financial performance of Tesco witnessed improvements in 2010 when contrasted to the previous year’s financial performance due to the cause that loyalty assists in enhancing brand equity and brand value of Tesco’s products. 2009). Tesco’s gross profit in 2009 was more than £ 4.607 million (Tesco. They help in improving the sales gain in escalating the supply percentage along with the increase of quality which is grown for the commodity bought by the provider (Brown and Stanley. As per Bowen and Chen (2001). Nowadays cost-effective loyalty program could support parties (Butscher. and also improves the purchase quantity of product. by building the close connectivity among the brand and present customer it is desired to retain the present consumer unit. draw attention to a greater pool of customers. reduce refuse and also assist . Likewise. 2000).helps as well as approves.185 million and in 2010 it is more than £ 4. 2. The fame of those programs depends on the controversy by which earnings could be enhanced importantly by accomplishing either of those two goals.expectations and their fulfillment by the company will be possessed by the loyal consumers. contribute the capability to bulk customize trading interaction. loyalty program could be considered as equipment to improve brand loyalty. however the concentration is on separate clients.

As a result of this the Tesco fails to make changes when the market structure changes. loyal customers of the Tesco bring more customers by word of mouth and they purchase more as well as pay high prices for the product. Losing a customer is like losing the support of the customer for the whole time. Identifying the customers is the reason for the popularity of Tesco. By understanding the needs and the economy of the customers the marketing strategy of the company is planned and through this success can be achieved. This adds another profit for the retailers who have the loyal customers. Many of them argued that the loyal customers are the source for the profit of the company. Thus. The loyal customers of the Tesco may bring assurance to the business by the enhanced customer exception. And also the Tesco’s loyal customer encourages the supplier by satisfying them and this leads to the carelessness and inactivity on believing the loyal customers. For example the associates of Bain Company achieved 6% increase in the net profit by retaining the customers through the loyalty program and most of companies gat profited through this. Even though the many of the researchers recommended that the loyalty of the customers is valuable to the shareholder of the company and the . The short term customers generate more profit to the company where as the loyal customers are marginally benefited. 2009). The increase in the popularity of the customer loyalty is due to the remarkable profits of the company. the Tesco’s Loyalty program tries to recognize the needs of the customer by communicating with them.boost assurance. In the beginning the loyal customers produces more profit to the company but if they once stopped purchasing the product it will create loss to the company. This is also very suitable to the Tesco (Tesco. But the profit may relate to the service. process or product of the company. According to Cater and Cater (2009). Managing the loyal customers is easy because they are well known about the procedures for ordering and delivering the product. feedback. tolerating the mistakes made by the customers.

2 APPROACHES FOR CUSTOMER-LOYALTY The idea of consumer-loyalty program is not actually a new thought in addition with its credible reasoning to state which the cooperatives' initiated the latest program in the middle of 1800s. in the desire of accomplishing the advantages of loyal clients (Endacott. the principle is yet the equivalent. But. The customers are rewarded through this card for the consistent purchasing (Nicholls. 2. 2002). kind of products and so forth) and also the rate of the prizes gained. and also to perform thus by reinforcing loyal and heavy or regular purchasers. There are several . Latest CLPs are by certain build of partnership card that is familiar in the last moment during retail in sequence to recognize the consumer and also to register the buy particulars (for instance.card strategies. 2001). 2004).organizations are examining the position and option of to achieve the objective (Byrom. rate and kinds of cards published by and on sake of traders. But Ang and Buttle (2006) debates that the productivity of Tesco must be conceived as an average objective that could be accomplished if another objectives are attained as designing a company consumer record. comprising: • • PAYMENT CARDS: This known as store cards and it offers the mechanism to the consumers to pay the retailers. REWARD CARDS: It is otherwise known as the club cards or bonus cards. to construct the persistent relations with clients. The final objective of all CLP is to improve common functional productivity by consumer preservation. Time of buy. • COMBINED CARDS: It is like a reward or payment card and it has four CLP.

Source: (TESCO. traders bears four various CLP-card plans . 2010) As per Ang and Buttle (2006).

• PURCHASE STRATEGY: Paying the expenses and also falling remunerations throughout numerous retailers. The customers are attracted by introducing the new offers like buy one get one free or buy one get two free. The retailers use this strategy to expand the business by attracting more consumers (Lambert. The objective of this scheme is to understands the customer well and serve the customer. This forces the customers of Tesco to make a new type of attitude towards shopping. This is also useful for the retailers who wish to develop the transaction or financial services. 2004). 2009).• PURE STRATEGY: In this the card will be issued by the retailer and the profit and loss is based on the retailer. • PUSH STRATEGY: The issuing the card to the Tesco’s customers will increase the benefit for the retailers. This implies that the strong link is made among the customer and Tesco (Tesco. 2009). It is suitable for the transaction processing and financial services (Lovaglio. To understand the need of the customers Tesco uses this pure strategy. The new customers are getting attracted towards the Tesco through the push loyal strategy if this scheme gets success. This scheme motivates the customer to do shopping in a special way. The usage of the customer is encouraged by the Tesco for reducing the processing cost. • PULL STRATEGY: This card is issued to the retailer and this can increases the profit of the retailer day by day. But to attract the new customers it is not that much sufficient offer provided by the retailer. product and by creating brand . The objective of this strategy is to increase the purchase of the customers. The desires and needs of the customer are identified and it has to be fulfilled. This stimulates the Tesco’s customer to purchase more products and it is an effective scheme too (Tesco. 2005).

awareness of the product. It is like a payment card but actually it is a reward card. • PURGE STRATEGY: The retailer introduces other schemes except the loyalty card program and offers benefits to the customers and there by increasing the profit. The retailer aim is to increase the competitiveness of the company in the market instead of providing any loyalty schemes (Moraga et al, 2008). The retailers acquires the information from the members of the CLP as the members recognized themselves by signing the program and the members pay the fee based on the program type. The members are asked to pay the membership fee or joining fee to sort the members to restrict the unwanted person and it is a big advantage to them. Opt-it CLP Open CLP Costs are covered by membership Various users are reached fee Channel membership helps the Completed database by Competitors customers and

target groups Membership got


limited access potential customers are reached Effective communication is made Future analysis, segmentation and by well structured membership The cost and the number segment specific segmentation is made after completing database. of Loyalty program got cost effective

members are maintained by the membership Source: (Butscher, 2001) The Tesco club card comes down as a form of open- CLPs, because everyone residing in the country UK if they are 18 yrs or more can register their names

through the filled application forms that offer the information regarding the promotion. Loyalty card is a replacement for the loyalty drivers. 2.2.1 BUILDING A CLP Cautious designing is required for framing a consumer loyalty program in a company. Elaborated techniques and schemes for recognizing the consumers and registering them, segmenting and rewarding them with prize plans will assist in preserving the program and the consumers with the company for which the cautious design in framing a consumer loyalty program is intended in a company (Uncles et al, 2003). The rise in company commodity prices and constant arrival of consumers and business growth achieved by it in case of price rise made by the Tesco in its products is a clear indication of larger loyalty achieved by Tesco with its consumers. The consumer loyalty programs offer inimitable gifts or prizes to the consumers which is a reward for the loyalty maintained by the consumers towards the Tesco (Tesco, 2009). The deficiencies in differentiating the loyal consumers and their loyalty levels could be identified by conducting consumer loyalty programs by the Tesco. These deficiencies could also result due to the observable dissimilarities while making observations on the loyalty factor of the consumers as well. Therefore the construction and maintenance of loyalty programs have to be made in a proper manner in Tesco which perform such a task and reward the consumers on the basis of the loyalty programs held by them to their consumers. The consumers attempt to maintain their loyalty behavior with Tesco due to the fine recognition achieved by the consumers by their maintenance of loyalty with Tesco. Gentle advantages are of primary importance to the consumers who take part in the loyalty programs in a company (Tesco, 2010). The competitors prevailing in the market attempt to copy the CLP programs of other companies to obtain the benefits attained by the Tesco which has implemented certain loyalty procedures in their own company as well.

(a) Price of the products (2) the option of repurchase alternatives provided by the company 3) the prize set by the company and affordable nature of those prizes (4) obvious chances for achieving the prizes and (5) the comfortableness in using loyalty program by the consumers are five factors which assist in determining the loyalty program value of Tesco (Humby et al, 2007). Behavior – samples, samples on the basis of approach, combination samples and association termed samples are the CLP formats and a suitable CLP format has to be selected by the CLP manager for performing an assessment of the consumer’s loyalty in Tesco. The behaviour of the consumers is the concept on which much of the CLP are conducted by the companies. Iterated patronage which means repeated purchasing behaviour of the consumers is the fact which is concentrated on the behavioral aspects of the Tesco’s consumers and this feature is concentrated by most of the CLP that are held by the companies. This fact and its measurement are generally cost effective and also state the reason for the repetitive purchase behaviour of the consumer. It also instantly offers noticeable facts in an effortless manner in regards to the achievement of instant advantages by the management. This is the cause of employing the CLP in Tesco. As per the Berman and Evans (2001), “the emission of higher profit margin in the form of higher sales due to the requirement of need of higher promotion for the brand could be observed due to the performance of behavioural termed samples in a consumer loyalty program”. The behavioral after effects could however be felt if the behavioural termed CLP samples are not performed in a company". The behavior based CLP presented in the figure 3 (See appendix). The relationship based model is another strategy which is adapted by the Tesco (Tesco, 2005). ECONOMIC CONTENT: The economic advantages recommends the

eagerness of the consumer in taking part in a CLP efficiently and if the separate price advantage computation guides the consumer to an outcome which is optimistic the consumer is certain to take part in a consumer loyalty program (Turner and Wilson, 2006). Loyalty promotion, fundamentally, means

acting in a reasonable manner and knowing the common concerns and maintaining them is the means of creating associations by the retailers with the consumers (Waarden. strategic interest. RESOURCE CONTENT: Securing valuable resources which cannot be obtained from any other sources in an efficient manner is the cause of establishing relationships among a retailer and a consumer in the Tesco. Commitment could be the contribution made among the exchange partners by the dependence. Consumer assurance and loyalty are two among the important inconsistent factors which could be witnessed in the consumer loyalty relationship between Tesco and its consumers. Realizing the Tesco’s customers' behaviors as well as economics (calculated from loyalty code) permits to perform. appendices (figure 4). Acquisition of the purchasing power and effort of the consumer by the retailer and acquisition of dependability.economic differentiation of the consumers made by a Tesco from the consumers who come and shop in an irregular manner. status. sincerity in serving the consumers. 2008). Interaction. Vital nature of this relationship is the design in which the consumer loyalty programs are framed and interference of the competitors was the paradigm on which the successful construction of a consumer loyalty program depends on Tesco. The relationship based CLP is presented in the . SOCIAL CONTENT: A flourishing relation is shown by the models which are based on the association and the existence of it among the consumers and the Tesco. 2007). Friendship among the retailer and the consumer could be grown by developing the CLP program in such a way by Tesco. reciprocity and equity by following resource content in a consumer and retailer relationship. safety and supplementary features of reputation and tangible value in the products and services purchased by the consumer is the exchange made among the retailers and consumers in resource content in a retail business (Rowley.

2. Informing these activities to the Tesco consumers is vital as this would be the means of it to inform its activities to its consumers. “Integrative instruments” is the so – called category in which the consumer loyalty program of Tesco can be classified. The analysis of the overall strategy and abilities of the Tesco to make the consumers purchase with it in a repeated manner which is the utility of consumer loyalty programs. Goods and services of particular CLP – operating company which is Tesco or its partners are comprised in the product mix classification (Tesco. Understanding the significant intentions of evaluating the loyalty plans and the strategies which make Tesco in performing in an outstanding manner is the intention of performing this study. regular newsletters or mailings and the CLP meetings and events held buy t for its members are the means by which it informs the activities does by it and announces them to consumers. The exclusive CLP – magazines which is the Club card magazine. Great importance for interaction with CLP members and with Tesco is observed in the communication issue. Due to Tesco following the consumer loyalty .2. The performance of Tesco’s activities which are done by it and which are not done by it sends a message which can strengthen or weaken the consumer and retailer relations in Tesco. favourable conditions for payment and monetary benefits which are received by bonus program are comprised in the price mix classification.2 CUSTOMER LOYALTY PROGRAM IN TESCO According to Berman and Evans (2001). communication and distribution issues for the cause of organizing consumer benefits are combined due to the ability possessed by the integrative instrument category. 2009). This is the cause of classifying Tesco’s consumer loyalty program in the so – called integrative instruments category. 2.3 AN APPROACH OF LOYALTIES According to Capizzi and Ferguson (2005). Several elements from existing tools which are dependent on a distinguished set of product. Member discounts. price.

Tesco’s loyalty plan assists it in knowing about the character of the consumers and causes for their repetitive purchases made with Tesco (Tesco. essential advantages and significance is offered by it to its consumer loyalty programs. 2. Delivering a consumer experience which fulfills the requirements of the individual consumer can be made by Ideal Customer Experience framework designed by him. According to Bowen and Chen (2001). ‘The Ideal Customer Experience’ is the term which is stated for understanding and meeting the needs of the consumer that have been put forth by the strategists for this framework.4.1 CUSTOMER LOYALTY MEASURES Consumer loyalty criteria are planned for persons inside an industry who impose the strategic direction of the industry. 2010). Close alignments of a company with consumers and bringing this vision to reality which is difficult in nature is the intention of applying this success strategy in Tesco. The Tesco’s loyalty criteria consist of the following features in it: . Those criteria assess the activity of Tesco’s present customer unit and also obtains forthcoming route followed by them in their customer strategy feature (Tesco. The current performance of the relationship of Tesco with its consumers and the strategic direction of Tesco towards the consumer loyalty concept are also driven which is evaluated by the long term CRM strategy which is followed in Tesco. 2. 2009).4 RELATION MANAGEMENT BETWEEN THE TESCO’s CONCEPT AND THE CUSTOMER A framework for understanding and meeting the requirements of the consumers are put forth by the strategists.programs as a core consumer plan to attract more customers and to retain older consumers with it. A consumer whose requirements are understood and fulfilled will persist in buying from Tesco on a constant basis and value on the retailer as well is the strategy behind Tesco’s strategy in regards to the relationship management concept resulting in an Ideal Customer Experience in Tesco (2009).

4.2 CUSTOMER STRATEGIES The Tesco establishes consumer plans to preserve loyal consumers.4. Tailored consumer strategy criteria like the wallet share for development plans and retention value for retention plans are held to the consumers by the companies in recent times.3 MEASURES OF CUSTOMER STRATEGY Breaking down measures on the basis of each and every consumer segment which breaks it down on the basis of value and characteristics and preferences of every consumer is the manner in which the consumer strategy is measured on a deeper manner in Tesco’s consumer strategy (Tesco. In case. the consumer skills determine the implementation of those plans by the companies to the consumers in the market.• Lifespan rate of consumer unit by tenure • Dimension of consumer unit by tenure •essential rate of consumer unit by tenure • Medium benefit per customer by tenure 2. develop loyal consumers. Generally. obtain more consumers or develop loyal consumers and find if pessimistic consumers can be turned into surplus consumers for the Tesco (Tesco. 2. The outcomes of those criteria facilitate the company to allot particular sources in targeting specific customers by it. consumers have faced issues in regards to obtaining details about the consumer needs. Obtaining the details of the consumer and their requirements is the main intention of formulating such a plan by the Tesco. 2. the performance of such an achievement will be useless by the Tesco as well. 2010). 2009).4.4 POPULATING THE CUSTOMER PROFILE Tesco populates consumer tariff with related and necessary details in correctly realizing and gathering consumer requirements to build perfect .

2.5 CUSTOMIZING THE CUSTOMER EXPERIENCE The perfect consumer understanding could be provided once the requirements of the consumers are understood by Tesco. Reckoning on the samples (exposed in the above diagram) the approach developed may be disproportionate. Observing the achievement or failure of a few elements inside the experience of the end user can be performed by this criterion. 2004).consumer understanding with its consumers (Smith et al. Movement of consumers in a upward direction by Tesco on the basis of an image – based or persuasive advertising and personal service . 2004). The experience of the end user is a tactical experience which is measured among the various measurements of measuring consumer loyalty in Tesco. 2.4. 2001). Enhancing sales by improving belief in regards to the Tesco brand and strengthening the emotional commitment of consumers to it is the objective of the advocates of attitude approach who are referred in the first model which has been adopted by Tesco to its consumers (Endacott. 2004).6 TACTICAL MEASURES The end user and his feeling of ownership and technical performance are measured among the various measurements that are made in regards to the loyalty of the consumers to a particular company (Byrom. The Tesco can surpass its competitors by knowing the requirements of the consumer and serving them accordingly.4. The way in which the service is offered or the procedures which assist in collecting the requirements of the separate consumer and fulfilling them is the means by which the consumers and the demonstrations of understanding the consumers in a perfect manner by Tesco can be proved to the consumer’s (Smith et al. The summary of requirements and grievances which are provided by the consumer assists in fulfilling them and solving the issues of the consumers in the industry develops closeness in the consumer and retailer relationship.

Price promotions and deals and special offers for attracting competitor brand consumers are also frequently announced by people who employ contingency approach in their companies. responsibility and impacts in doing it possess uncertainties in it. providing suitable assortment mix are some of the prosaic factors.5 RHETORIC VS. The arrival of many consumers would also assist it in possessing an enhanced amount of reputation which would add to the reputation which is already possessed by it. The possibility of loyalty programs and their impacts on the demand factor is not much and is generally very limited which is the scenario witnessed in the case of contingency approach followed in a company. Tesco also attempts to perform the trade of consumer relationship for the prolonged success of it by offering the Clubcard scheme to its loyal consumers. Offering bonuses and prizes are a . emphasizing these prosaic factors is made by the advocates of the contingency approach in a company. 2. Maintaining their portion of the category sales matching the initiatives which are followed by the competitor and averting shortages in the supply and attaining development by enhanced market penetration is attempted by managers adopting the model.programs are made by it on a frequent level and these are the frequent tactics used by it with its consumers. Tesco also attempts to trade the consumer relations and attempts to increase the profit attained by it on a regular basis (Tesco. A number of mechanistic or strategic steps like loyalty cards or point’s plans are provided to the consumers which could be the means of achieving consumer loyalty from the consumers by a company. Averting stock – outs. As per the review of Lambert (2009). REALITY The concept of trading consumer relationships and the aim. The launch of a loyalty program mainly for defensive purposes for matching the competitors without anticipating dramatic changes in the attitudes and behavior of the consumer could be made in such a scenario (Nicholls. 2002). extending opening hours. 2009).

Underestimating the CLP set – up and its maintenance costs could be few reasons which could have led to the downfall or the reduction in setting up CLP programs by the companies. procedures and offers senior customer value to them which is an institutional perspective of performing relationship marketing in a company. 2001). One fact which is the truth is the presence of numerous CLP’s in recent times.sufficient means of constructing loyalty. The creation of numerous CLP programs are witnessed and when the spirited people battle an opposing program. it usually results in sacrificing excellence or the quality in the program for the cause of achieving faster results in the program (Butscher. Tesco also conducts a loyalty program assists them by determining their loyal consumer which enables it to take effective steps in making its services more effective that would be desired by the other consumers and make them loyal to it (Tesco. An amazingly inefficient availability in conducting CLP programs is witnessed and the recommendations state fifty percent of the people in overlooking the clientele goals in a complete manner if not in a partial manner in spite of promotional writing suggesting the need of a lot of CLP’s in the industry. 2001). Underestimation of setting up and maintaining CLP’s which increase sales also possess the possibility of resulting in draining the money of the retailers which could be due to various reasons. Relationship marketing is the means by which the total company and its customer servicing activities are directed which attempts to incorporate and adjust many resources. producing information and modifying the behaviour of the consumers in a desirable manner of the consumers by the companies (Bowen and Chen. The smaller groups are finding it difficult to compete in an effective manner due to the maturity in the markets resulting in the increase in saturation and the cannibalization of the loyalty effects by the retailers. The clubcard scheme of Tesco assists it in determining its loyal consumers and also assists it in making them feel more valuable by offering bonuses and prizes for its loyal consumers. Due to the heavy financial incentives which have . 2010).

Tesco and its promoters make attempts to build relationships with the consumers on a frequent basis and damage to these associations among the consumers and retailers is caused since the retailers view these associations as a means to develop closeness with the consumers and the consumers view these associations as interference made by the retailers with them (Davis. 2010). Collecting details are suggested on a major scale in too many loyalty programs which do not concentrate much on designing the relationship between the retailer and the consumer. The review presently goes into a suitable method for identifying the loyalty method which is adopted in the company and the means of . The consumers could face problems in connecting with retailers which are a possibility if they do not consider the relationship formation of the retailers and avoid it which would be affecting the consumers as well. price wars with the competitive retailers will have to be faced on occasions as well (Cater and Cater. 2009). 2005). 2. Displaying the outlook of constructing a loyalty programme and arranging Tesco’s club card program as a loyalty programme of it in Tesco is made in this chapter.6 SUMMARY This chapter discusses about the related loyalty frameworks and techniques and their relation to the loyalty procedures that are followed in be offered to the consumers. This has resulted in neglecting the need of deliberate involvement of the consumers in the Tesco’s consumer loyalty programs which is stated as an incorrect approach by several promoters of consumer loyalty programs who feel that it is not the right way of conducting consumer programs by the Tesco (Tesco. Making investments on wrong consumers mean that the demand of few consumers is really small that the expenses and effort made to change them as loyal consumers does not match the revenue provided by these consumers to the retailers.

The next chapter is the research methodology chapter and this chapter discusses the data collection methods which were useful in collecting the data for this research work.aligning the strategy with the dependability standards and total clientele objectives of the Tesco consumers is presented in this research section. individual or a . The ‘Satmetrix’ loyalty index is employed as the tool in calculating the loyalty index of end users in Tesco which would identify the effects of Tesco reward scheme on the Tesco consumers.1 INTRODUCTION A process followed by an individual for responding the queries of himself or some other individual’s queries in regards to a certain object. RESEARCH METHODOLOGY 3. The convincing nature and the consistency of the data which is obtained in this research are analyzed in this research chapter as well. CHAPTER 3 3.

The positivist approach observes various thoughts on the research and provides the conclusion based on the analysis. The thoughts of each and every individual consumer of Tesco have to be made for this analysis. The positivist approach is suitable for this research. 2007).2. The reliability and the validity measures that have been involved in the research are discussed in this chapter. Thoughts of each and every individual are not similar on most circumstances in regards to the loyalty and the causes for their possession of their loyalty to Tesco could vary. This can be made by analyzing the loyalty factor of the Tesco consumers. The methods of data collection and the sampling techniques that will be useful in performing the research and in collecting the information from the respondents are also analyzed in this section of the research. The research methodology chapter deals with the research philosophies and their causes for its utilization in the research. The research methods and the research approaches that have been used in the research methodology and the causes for using them in the research are also discussed in this chapter of the research. 3.1 RESEARCH PHILOSOPHY USED Examining the presence of the loyalty factor with the Tesco consumers who come to shop in Tesco has to be made to know the overall loyalty of Tesco consumers and the causes for their possession of loyalty towards it. The analysis of these thoughts can be made by the positivist philosophy.subject is termed as a research.2 RESEARCH PHILOSOPHY The research philosophy section of the research methodology chapter deals with the particular research views of several authors that are made in a research. 3. The two classifications of research philosophy which are usually employed in a research are the positivist and the interpretivist research philosophy (Ketchen and Bergh. The information on Tesco’s customer loyalty can be identified from .

For the above reason qualitative approach is used in this research. The customer loyalty of Tesco is identified by the qualitative approach. Based on analysis the conclusion on customer loyalty on Tesco can be identified. the quantitative research method deals with the statistics. The satisfied consumers are the consumers who remain loyal to any company and this would apply to Tesco also. Since all these features and their presence could be tested by using a positivist research philosophy. the numerical . The process of gathering the information can be done by the quantitative or the qualitative methods in a research (Gunter et al. the positivist research philosophy is being employed in this research. 3.3. Thus the profit of the company could be enhanced if it possesses loyal consumers to it which could be attained only by satisfying the consumer. (2008). According to Hanson and Barbara. In this research the quantitative method is used to present the result in the graphical format using charts.3 RESEARCH METHODS Collecting the data in regards to the subject of research is a primary requirement in performing a research. 3. The qualitative research method is used for the deep understanding of the human behaviour and the causes. 2002). Customer loyalty on Tesco can be identified based on the clear understanding of the customers thoughts.various resources. The profits of the company due to the satisfaction and the loyalty of the consumers are to be analyzed in the research with a view to determine effective business strategies that have been dealt by Tesco. data.1 RESEARCH METHOD USED Examining about the loyalty concept and the consumer satisfaction which would enhance the profit of the company can be learnt only by knowing what the causes could be in making the consumers to be loyal to Tesco.

4 RESEARCH APPROACH The research approach determines the methodology or the approach which enables the researcher in performing a research. The concepts in regards to the reasons which satisfy the Tesco consumers and make them loyal to it and assist it in achieving higher profits are identified using this research. 3.1 RESEARCH APPROACH USED Deductive approach is used in this research work to analyze the Tesco’s customer loyalty. For these reasons the quantitative approach is used in this research. According to Cohen et al (2007). The aim of this research is to identify the customer loyalty on Tesco and this approach is starts from the general theory on customer loyalty. Based on the observations collected from the customers of Tesco using survey method. 2000). Since the deductive approach is stars from broad theory and ends with the specific conclusion.factors and any measurable data in a research. this deductive approach is perfectly matched with the research work. 3. The two research approaches are the inductive and the deductive research approaches which can be generally utilized in a research (Keuzenkamp. the research gives Tesco’s customer loyalty as a specific result. 3. The numerical data like responders’ percentage and percentage of customers using Tesco’s Clubcard are presented using charts. The primary and the secondary data . the deductive research approach is commenced by a common idea in a research. The deductive approach provides the specific conclusion or specific result to the research which is beginning from the general theory with the observations made in the research.4.5 DATA COLLECTION METHODS The most crucial activity that is performed in a research is the process of colleting the data for the research.

The secondary method of data collection is also used in the research when the analysis of the Tesco literature review is made in this research. This information is collected as a secondary data from various internet resources and books.1 DATA COLLECTION METHOD USED The information in regards to the satisfaction and the loyalty of the consumers which have been instrumental in Tesco’s success and the obtained information that will enable Tesco to plan the business strategies on a long term basis to continue its success assume significant importance in this research. This can be made by meeting the Tesco consumers in the Tesco superstore who come there to make their purchases. The information regarding Tesco’s customer loyalty. Thus the primary method of data collection which involves the researcher to perform the research in a direct manner or perform the research in a field work format is employed in this research for collecting the data in regards to the satisfaction and the loyalty of the Tesco consumers. The Tesco consumers who were making their purchases in the Tesco superstores were surveyed for collecting the data in regards to the research. This information could be obtained by meeting the consumers and getting their thoughts about Tesco and its service. 2008).5. 3.6 DATA COLLECTION INSTRUMENTS Survey and questionnaire are the data collection instruments which is used for collecting the data in this research. 3. The information on overview of Tesco and customer loyalty of Tesco are discussed and analyzed in the literature review. .collection methods are the two measures by which the data could be collected for performing a research (Noor. Customer retention and their reasons are clearly identified by this primary data collection method with the help of this questionnaire. A set of pre – defined questionnaires in regards to the satisfaction and the loyalty of the Tesco consumers and the reasons are prepared and are provided to the Tesco consumers.

7 SAMPLING TECHNIQUES The process of choosing the participants of the research from among a group of population is termed as the sampling process in a research. Analyzing the different descriptions that are provided by various authors in a .1 SAMPLING TECHNIQUE USED One among the classifications of the probability sampling techniques which is utilized in obtaining the required information in regards to the research is the random sampling method. To perform such a research. Finding the Clubcard members of Tesco is very difficult and it will take more time to identify.7.8 RELIABILITY AND VALIDITY According to Healy and Perry (2000). the views of the consumers in regards to the satisfaction and the loyalty of the Tesco consumers have to be analyzed and the analysis about them are made by surveying the Tesco consumers in the malls and this is the purpose of the research. 3. Because of this reason random sampling technique is used in this research. Sample size of 100 customers is selected for this research. The sample which is utilized in this research is the Tesco consumers itself. This is used in getting the data for this research from the customers of Tesco. The suitable sampling technique and the sample size utilized for the research is chosen by the researcher in this research. The samples are selected randomly in Tesco based on the convenience. The possession of reliability in a research could be said when the researcher obtains the same results on a frequent level in it. Reliability is termed as the consistency of a measure in a research. 3. The satisfaction of the consumers and the loyalty of them and the impacts of the same on the profits of Tesco and the business strategies that could be formed by Tesco to overcome them are the main intention of performing this research.3. Analyzing the satisfaction of the consumers and the loyalty of them to Tesco could be made is the principal objective of this research.

The primary data collection and qualitative approaches are enhances the validity of a research. The diverse opinions and the diverse views of the people in regards to the research could be identified by these questionnaires and the outcome of it in Tesco by the researcher. The interviewing of the Tesco consumers was made by preparing a sample questionnaire in regards to the same by the researcher. 2000). 3.10 GENERALIZABILITY . Examining numerous descriptions is the means by which the validity is offered to the conclusion and this is termed as the validity in a research (Healy and Perry. the data that is obtained is therefore identified as valid by the researcher. adjustments and the revisions could be performed if a pilot study is utilized by the researcher in a research.9 PILOT STUDY The verification of the proposed methods and the procedures and their working in a proper manner in regards to their applications in a big and expensive investigation is the main intention of performing the pilot study in a research. Prior to the making of the investments and the heavy expenses which are usually observed in a massive research. 3. As this information is collected from the Tesco consumers itself. Analyzing the questionnaires which are provided in the pilot study to the consumers enables the researcher to identify the thoughts of the researcher in regards to the satisfaction and the loyalty of the Tesco consumers towards it. Collecting the data is made by the use of the qualitative research method in this research. Numerous pilot studies have been made in this research.research is the means by which the conclusion in regards to the reliability of a measure is made in the research. Proper analysis of the questionnaires that are utilized in this research to collect the data from the consumers is made to achieve the reliability in this research.

11 ETHICAL ISSUES Certain ethical principles and standards are followed in this research. The primary data collection method is made by . 3.12 STRENGTHS OF THE RESEARCH Analysis of different thoughts of different people has to be made which is made by the positivist research philosophy in this research. Any political issues will not be posed by this research. Any research conflicts in regards to the performed research are not possessed in this research paper. The quality of the research is associated by the generalizability of the research. This method assists the researcher in analyzing and presenting the customer loyalty in a graphical manner. The past. The actual result for customer loyalty on Tesco can be identified using the large sample size. The sample size of 100 customers is this research. current and the future growth of the company could be analyzed by the quantitative research method.Anticipating the continuation of a frequent occurrence in the future in case an occurrence happens repetitively is made by the researcher in a research. Any individual or the entity who is involved in this research is not impacted by this research as it is made only for serving the education purposes. The research is not copied from any previous researches which have already been made in regards to the subject of the research. The results of the research will be maintained in a confidential manner and all the ethical issues will be strictly followed in this research by the researcher. Increasing the sample size is the means by which the generalizability is enhanced in this research. The behaviour of the humans in regards to the satisfaction and the loyalty of the consumers and the reasons which administer such human behaviour among them which enhance the profit of a company could be made by utilizing the qualitative research method. The current state of Tesco on the basis of the satisfaction and the loyalty possessed by the Tesco consumers is analyzed by the deductive approach in this research. This improves the generalizability of the research work. 3.

The ethical issues are strictly followed in this research and the pilot studies are also performed in this research as well. The following chapter which is the fourth chapter of the research is the data analysis chapter and it makes a detailed analysis about the satisfaction and the loyalty concept of the Tesco consumers. Discussions are also made on the methods in collecting the data and the data collection instruments that are utilized in collecting the data for this research as well. CHAPTER 4 . Each and every customer is having their own thoughts on Tesco’s loyalty scheme. A few more people or a larger sample size could be utilized in getting the details about the research or in attaining additional knowledge about the research.interviewing the consumers in the malls which enhances the validity of this research. the ethical issues that have been followed in this research.14 SUMMARY This chapter has made discussions on the research philosophy and which research philosophy has been used in this research. 3.13 LIMITATIONS OF THE RESEARCH The sample size in which 100 consumers are surveyed to find out the loyalty concept and the relation of it on the satisfaction of the consumer and their loyalty is the only limitation which is observed in this research. The sampling techniques and the reliability and the validity of the research and how they are applied in this research have been examined in the research methodology chapter. The research method and the research approach that have been utilized and the reasons to use them in this research are also analyzed in this chapter. Some of the selected sample may not use the Tesco’s Clubcard. The generalizability. 3. The questionnaires are offered to the Tesco consumers by which the data is obtained from the consumers and this enables the achievement of the reliability in the research. the use of the pilot studies have been discussed in this portion of the research.

While purchasing in Tesco I am using this clubcard because it offers more benefits tome “. This analysis implies that most of the customers are having club card. The primary data is collected by using the set of pre defined questionnaires. A sample size of 100 is taken to collect the primary data.DATA ANALYSIS INTRODUCTION The research methodology chapter discussed about the research techniques. This research mainly concentrates on analyzing the customer satisfaction and customer loyalty in Tesco. data collection methods and research approach used for the research. In the year 1993 Tesco introduced clubcard scheme to the customers. The gathered data regarding the customer satisfaction and customer loyalty are discussed in this chapter. “I have been purchasing in Tesco for several years. One of the customers answered as follows. 1. CLUB CARD HOLDERS Clubcard provides many advantages to the customers and it is an interesting scheme. For this question about 80% of the customers said that they are having the club card and the remaining 20% of the customers said they are not having the club card. A query regarding the usage of clubcard has been asked to the customer of the Tesco. .

the company can obtain the loyal customers by providing more offers to them. . The remaining 20% of the customers said they do not use the club card while purchasing in Tesco.” According to Bowen and Chen (2001). The purchasing attitude and behavior of the customers should be noted by the company. While asking this question to the customers of Tesco. gift vouchers. I use club card while purchasing. “I do shop frequently in Tesco. about 55% of the customers said they are always using the clubcard while purchasing and 25% of the customers said they are using the club card sometimes. For this query one of the respondent replied as follows.CLUBCARD HOLDERS 80% 20% Ye s No 2. This will help them to retain more customers. It offers the benefits like discounts. SHOPPING USING CLUB CARD A question has been asked to the customer to know whether they are using the clubcard while shopping at Tesco.

The analysis shows that most of the customers are benefitted by the Tesco club card system. “Yes. Tesco provides a gift voucher worth £ 20 for every month to the customers who made purchase using the club card scheme”. The customers of about 30% said that they are receiving benefits but if it is enhanced it will more benefit to them. the customers can continuously buy the same product if they satisfied by that product or they receive any benefit from the shop. . As per the statement of Capizzi and Ferguson (2005).SHOPPING US ING CLUBCARD 55 25 20 Alw ys a Som time e No. The customers of Tesco were asked a question regarding the benefits of Tesco clubcard. The respondent replied as follows. Certain customers shop regularly for the benefits offered by the store. They are receiving gifts and discounts for the purchase they made and 20% of them said club card scheme of Tesco is not benefit to them. TESCO CLUBCARD BENEFITS Tesco offers more benefits to the customers through the loyalty program. While asking this question to the customers 50% of them said the club card scheme is benefit to them. I w on't 3. last month I received £ 10 gift vouchers for my shopping.

CUSTOMERS SHOPPING EXPERIENCE IN TESCO The customers of Tesco were asked a question regarding their shopping experience in Tesco. “Yes. . TESCO CUSTOMER SERVICE The companies are maintaining the relationship between the customers by providing service to them. 5. it is necessary for the company to identify the needs of the customers.TESCO CLUBCARD BENEFITS 20% 30% 50% Yes No Should im prove m ore 4. The customers of Tesco were asked a question regarding the customer service at Tesco. They are responding in a very quick manner to our queries. Serving the customer is important for any company and this helps the company to maintain the relationship between the customers and management. The company has to solve the problems faced by the customers. A customer replied as follows. Tesco provides good service to the customers. O’Malley and Tynan (2000) mentioned that. One among the respondent replied as follows. When asking this query to the customers. They are responding very quickly when ordering some products to deliver at home”. they said the customer service at Tesco is good.

As per the statement of Reichheld et al (2000). the management should make the shopping experience of the customer positive one. We do not want to search the products and it saves our time too. S HOPPING EXPERIENCE WITH TESCO 35% ha ppy 65% re quires e modifica om tion 6. TESCO CLUBCARD SATISFACTION When the customers of Tesco are asked a question regarding the satisfaction of Tesco club card benefits one of the customers replied as follows. . Many schemes are offered by Tesco for the club card members.According to me the condition and design of the Tesco is convenient to shop. Tesco offers discounts for the products in the beginning of every month”. The customers of about 35% feels that it would be better for them if some changes made in the shopping environment. “I have been using this club card for the past three years. For this question. The company must understand the needs of the customers to make the shopping more convenient to them. about 65% of the customers said that they are comfortable and happy while shopping in Tesco. The branded products are available here.

CHOICE OF SHOPPING IN TESCO Tesco offers several membership program and schemes to retain and satisfy the customers. Among the 100 customers. A question has been asked to the customers to know why they are shopping in Tesco. As per this question the customers of about 60% said they are benefitted by the club card system of Tesco and about 25% of the customers said they are not benefitted by the club card system. Club card is one of the loyalty programs and it offers many complementary services to the customers. If the customer gets satisfied by the service or product provided by the company they will purchase repeatedly in that shop or company. S ATIS FACTION OF CLUB CARD BENEFITS 60 25 15 ye s ofte n no 7.Turner and Wilson (2006) mentioned that. The remaining 15% of the customers said they are benefitted by the club card system but the customer need that benefits more often. The company uses this program to satisfy and retain the customers. one of the customers said as follows .

This analysis shows that most of the customers are shop at Tesco for the club card scheme.“The club card system of Tesco really helpful for me. 15 % of the customers shop at Tesco for products and the remaining 20% of the customers shop at Tesco for discounts. According to Lacey and Sneath (2006). CHOICE OF S HOPPING AT TESCO 45 20 15 20 clubca rd se rvice products discounts 8. They are attracting the customers by providing discounts and more offers in order to sustain in the competitive market environment. about 45% of them said they are shopping in Tesco for the club card scheme and 20% of the customers said they are shopping there for service. the companies are providing offers and loyalty schemes to retain and satisfy the customers. When asking this question to the customers. USAGE OF TESCO CLUBCARD . The discounts and offers provided by Tesco makes me to shop at Tesco and I am very much impressed to shop at Tesco because of availability of products”.

Moreover Tesco club card offers discounts to the products and I am satisfied with the Tesco Club card.” Rowley (2005) stated that. This loyalty scheme changed the attitudes and behaviours of the customer towards purchasing. The loyalty program makes the customers to shop regularly. “I am using Tesco club card alone to purchase.A query was asked regarding the usage of Tesco club card to the customers and one of the customers replied as follows. the companies are introducing this loyalty program to retain the customers. This analysis shows that most of the customers are using Tesco club card to purchase. For this question the customers of about 60% said that they are using the club card alone to purchase and remaining 40% of the customers said they are using other store club card to purchase. US AGE OF CLUB CARD 60 40 us only Te co's club ca e s rd us othe s rma ts offe a o e r upe rke rs ls 9. This is enough for me to purchase the products. SATISFACTION OF LOYALTY SCHEME .

While asking this question to the customers. SUGGESTION OF TESCO CLUB CARD TO OTHER CUSTOMERS . It is benefit to me and it offers discounts. While this question one of the respondents replied that. gift vouchers. Last month I got a gift voucher and I am very happy about that”.Loyalty programs are very common among the retail shops. Byrom (2001) mentioned that. The company can understand the needs and desires of the customers through this. loyalty program like club card is very helpful to begin the deep relationship between the customers and management. about 65% of them said they are happy with the loyalty program of the Tesco and remaining 45% customer said they need some modification in the current loyalty program of Tesco. S ATIS FACTION OF LOYALTY SCHEME 35 65 ha ppy ne d s e ome m odifica tions 10. A question was inquired to the customers of Tesco about the satisfaction of loyalty scheme. “I am happy with the loyalty program offered by Tesco.

2 FINDINGS The customer loyalty and customer satisfaction of Tesco was analyzed by using the primary data which is collected from the customer of Tesco. some of the customers shop regular to the particular store for the benefits offered by them only. For this query the customer replied as follows. 4. When asking this question. Capizzi and Ferguson (2005) mentioned that. The analysis implies that most of the customers are benefitted through the club card system which is offered by Tesco. Reichheld et al (2000) stated that. “I suggested Tesco club card to my friends and relatives. the company should note the purchasing attitude and behavior of the customers and this will helps the company to identify the changing needs of the company. The analysis implies that about 80% of the customers are club card holders. Clubcard offers many complementary services to the customers. It has been determined from the analysis that most of the customers are satisfied by the Tesco club card benefits. According to Bowen and Chen (2001).The Tesco customers are inquired regarding whether they are suggested Tesco club card to any other relatives. I got gift vouchers many times through the Tesco clubcard scheme and it offers benefits to me. As per the statement of Turner and Wilson (2006). the company uses the loyalty program to retain and satisfy the customers. about 70% of them said yes and they are suggested Tesco club card to their friends and relatives and 30% of people said they have not suggested this club card system to any one. The . friends. Therefore I suggested the clubcard scheme to my friends and relatives”. From the analysis it is identified that over 65% of the customers are using the clubcard while purchasing in Tesco. the needs and desires of the customers should be identified by the company to make the shopping of the customers more convenient.

About 70% of the customers are suggested this Tesco club card to relatives and friends. loyalty program and offers provided by Tesco were well analyzed and findings were produced. customer service is necessary for any company to maintain and retain the customers. This analysis shows that most of the customers are shop at Tesco for its club card and some of the customers are shop in Tesco for the service and products. . the companies are attracting the customers by providing offers. design and condition should be comfortable for the customers.operating process.3 SUMMARY The data analysis chapter discussed the customer satisfaction and customer loyalty of Tesco on the basis of collected data. It helps to identify the needs of the customers. The following chapter is conclusion. Byrom (2001) mentioned that loyalty program is helpful to begin the deep relationship between the customers and management. From the analysis it is identified that most of the customers are satisfied with the clubcard and offers provided by Tesco. The analysis shows that most of the customers are satisfied with the service provided by Tesco help desk officers. moat of the customers said that they are satisfied with the loyalty scheme of Tesco. services and loyalty programs. According to Lacey and Sneath (2006). 4. O’Malley and Tynan (2000) mentioned that. By introducing new offers the company can retain the existing and attract the new customers. They are happy to shop at Tesco because of its branded and availability of products. The customer’s views regarding the clubcard. Rowley (2005) stated that loyalty program makes the customer to shop regularly. From the analysis it has been determined that the customer feels the shopping environment of Tesco is convenient to them. Based on this analysis conclusion and recommendations are presented for this research topic. When the customers are asked regarding the satisfaction of loyalty scheme. From this analysis it has been identified that about 60% of the customers are using the Tesco club card alone to purchase.

CHAPTER 5 5. Tesco customers making their purchases in Tesco could utilize this card since this card fulfills such a purpose in Tesco. Getting new customers. Since satisfaction of the customers to acquire new customers and maintain them and retaining its older customers are intended by it numerous complimentary services are offered by Tesco to the Tesco Club card holders. Customers have to obtain a positive shopping experience when purchases are made by customers in the shopping stores.1 CONCLUSION Data collected in regards to the satisfaction of the customers and customer loyalty and the analysis and findings for the same were presented in the previous chapter of this research. Performing purchasing activity in Tesco is the main utility of the Club card by customers possessing such a card with them. Discounts for the products purchased by the customers and rewards and gift vouchers for the products purchased by them will be provided by Tesco for such purchases made by its customers.the Club card to its customers. 2007). The Club card offers benefits to most of the customers possessing and using them in Tesco. Identifying the customers and their requirements for making their shopping environment more comfortable and enjoyable have to be made by the shopping stores (Chakraborty et al. This will assist in providing a positive shopping experience to the shoppers . The conclusion for the research is provided on the basis of the analysis and the findings that were presented in the earlier chapter of this research. satisfying them and retaining them are the causes of launching the Club card by Tesco (Tesco. Following this practice in Tesco has enabled in making repeated purchases by its customers in Tesco. The provision of numerous benefits and satisfying them by such provisions is the main intention of Tesco. In 1993. 2005). Encouraging repeated purchases and acquiring more customers and retaining them and maintaining their loyalty with Tesco can be made by it by providing special offers by Tesco to its customers. Tesco had launched its loyalty card .

Conducting a survey and offering a consideration to the feedback attained from the survey could assist in identifying the need of the customer. Maintaining close relationship with the customers by each and every company would assist them in identifying the . A deeper relationship could be framed by Tesco with its customers since loyalty programs the Club cards are offered by it to its customers. The availability of the products and services offered by Tesco are the other causes which have been significant in making repeated purchases by its customers in Tesco. 5. Purchasing products in Tesco is a comfortable task due to the design and the good purchasing atmosphere created by it to its customers.2.2 RECOMMENDATIONS 5.which is very much essential for the growth of the company and similar experience is sought by the customers as well. This principle applies to Tesco as well. These conclusions make it clear that Tesco offers a lot of value to its customers as well. This is the conclusion attained by this research. good shopping environment and discounts are given to satisfy its customers. Although most customers are satisfied with the benefits provided by Tesco to its customers. The provision of numerous advantageous offers like gift vouchers. Tesco by its loyalty cards and by its benefits and reward schemes to the purchases made by the customers in Tesco offers such an experience to its customers.1 CUSTOMER SATISFACTION Satisfying the customers is the means of obtaining loyal customers by any company. Repeated purchases by the customers are witnessed in Tesco due to a lot of benefits offered by it to its customers which is clearly indicated by this research. Customers have also stated that supervisors and front desk officers of Tesco are kind and offer quick assistance in solving issues in Tesco proving the provision of value to the customers in Tesco. few customers also possess the requirement of certain changes in the Club card which would prove beneficial to them as well. Identifying the essential requirements of the customer is the assistance achieved on performing such a measure by Tesco.

few issues have been identified in performing this research. An enhanced amount of customers will join the Club card system if the essential modifications are made by Tesco. A large sample size could have been surveyed which could have enhanced the accuracy of this research and this was not possible due to a smaller time frame involved in performing the research.2 CUSTOMER RETENTION The business are started to attain high profitability by the company.3 FUTURE RESEARCH In spite of the best efforts taken to perform this research. L... Ang. Vol.needs and the wants of the customers.2. Iss. REFERENCES: 1. Tesco customers were surveyed to obtain the data for this research. Offering free home delivery service for retaining loyal customers could also be made by it as well. Maximum priority to the needs and wishes of the customers should be provided by Tesco.. Improving the customer service offered by it to its customers could be made by this observation in Tesco. European Journal of Marketing. pp. and Buttle. Proper observation of the purchasing attitude and behavior of Tesco’s customers should be made by it. Making the shopping environment more comfortable is required by Tesco.83 – 99. (2001). “Retail Management : A . "Customer retention management processes: A quantitative study". J. Retaining the customer is a significant means of attaining high profitability in a retail business. Berman. Hundred customers were used as the sample size for this research. 2. 5.. B. Collection of data by the primary method is utilized in obtaining the data for this research. (2006). and Evans. 40. F. 1/2. 5.

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I am carrying a research on the topic of “Customer loyalty and customer satisfaction –A case study of Tesco “for completing the Master of Business Administration course. Do you use club card while regularly shop in Tesco? A) all the time when am going to the store . QUESTIONNAIRES 1.APPENDIX QUESTIONNAIRE DISCLAIMER Dear sir/madam I am a student doing post graduation in the above mentioned department and University. Do you possess Clubcard? A) Yes B) No 2. I need information to perform this research work and I am privileged to receive the actual responses from the customers who participate in the research. The data collected will be maintained confidential. Thank you.

some modification should be done 9. some modification should be done 6. Are you using Tesco club card alone for purchasing or you are using any other club card for purchasing? a) I am using Tesco clubcard alone to make purchase b) I am using other supermarket loyalty cards to make purchase . What do you feel about the loyalty scheme of Tesco or do you think it requires any modifications? a) Yes. How do you feel when shopping in Tesco? Yes. Are you satisfied from club card benefits? A) Yes B) Should be more often C) No 5. Why you are shopping at Tesco? A) Club card B) service C) products D) discounts 7. Are you receive any benefits from club cards like bonus points free gift vouchers? A) Yes B) No C) need to be enhanced 4. Do you think that the help desk and customer supervisors in Tesco are solving your problem properly? 8.B) occasionally C) No I don’t need it 3. I’m happy b) No. I’m happy b) No.

colleagues and friends? a) Yes b) No . Do you suggest Tesco club card to any of your relatives.10.