Critically Evaluate The Influence of Relationship Marketing on Customer Loyalty (GC02039)
Table of Contents
1.0 Introduction.
1.1 Research background.
1.2 Research rationale.
1.3 Aims and objectives.
1.4 Research questions.
2.0 Literature Review.
2.1 Relationship marketing.
2.2 Relationship marketing components.
2.3 Significance of relationship marketing in the UK retail sector
2.4. Customer loyalty.
2.5 Loyalty framework.
2.6 How relationship marketing activities affect customer loyalty.
2.4 Conceptual framework.
3.0 Research methodologies.
3.1 Research philosophy.
3.2 Research approach.
3.3 Research Design.
3.4 Research method.
3.5 Data collection method.
3.6 Sampling Method.
3.7 Data Analysis method.
3.8 Ethical issues.
1.5 Research Timetable.
Reference.
1.0 Introduction
1.1 Research background
According to Warren Knight (2018), the term ‘relationship marketing is defined as the marketing system by which the business firms offer goods & services based on the customers’ expectation to meet up the customer’s demand, satisfaction and relatiDigtial Initiative (2018) stated that the main aims of all business organization to attract their customers and retain them and make loyal them towards their brand and products. That is why they apply several strategies to attract and retain their customers, where relationship marketing is one of the key tools in the current competitive business environment (Kotler et al., 2014). Relationship marketing technique applied by retailers including Tesco plays significant roles in building stronger relations with customers and retains them towards their products and brand. Tesco is a retail shop in the UK and spreads its subsidiaries in several countries with the highest profit history (Tesco Annual Reports, 2019). This paper focuses on the influence of relationship marketing on the level of customers’ loyalty in retail shops in the UK.
1.2 Research rationale
The proposed research aims for evaluating the influence of relationship marketing activities on customers’ loyalty in the retail shops (including Tesco) in the UK but is based on a case study on Tesco. Palmer (2014) stated that business firms face threats and challenges to create well connected with the customers. Meeting customer expectations is the most challenging work for retailers including Tesco. Tesco has also faced this customer relationship problem due to several internal and external problems. For this reason; it is very vital for this company to know about the procedures of making customers satisfied and loyal by ensuring an effective customer relationship system. Without a better customer relationship system, business firms can’t make the customers satisfied as well as loyal (Payne, 2015). Therefore; this research will be made to understand the procedures of making customers satisfied and loyal by ensuring an effective customer relationship system. This research also will give effective suggestions to Tesco for developing procedures of customers’ satisfaction and the effective customer relationship system.
1.3 Aims and objectives
The main goal of this proposed study is to assess how relationship marketing activities are affecting customer loyalty levels in the retail sector of the UK including Tesco. Then, this study will make suggestions for Tesco. The key objectives of this proposed study are outlined as follows:
- To assess the significance of relationship marketing activities in the retail sectors of the UK including Tesco
- To find out factors that boost up customer loyalty in the retail sector of the UK including Tesco
- To measure how relationship marketing activities affect customers’ loyalty in UK retail segment including Tesco
- To give effective suggestions to Tesco for developing efficient customer relationships to boost up their loyalty.
1.4 Research questions
- What is the significance of relationship marketing activities in the retail sectors of the UK including Tesco?
- What are the factors that boost up customer loyalty in the retail sector of the UK including Tesco?
- How do relationship marketing activities affect customers’ loyalty in UK retail segment including Tesco?
- What initiatives Tesco can take for developing efficient customer relationships to boost up their loyalty?
2.0 Literature Review
2.1 Relationship marketing
According to Kotler (2014), relationship marketing refers to the process of creating relationships with customers. It can be defined as the marketing system by which the business firms offer goods & services based on the customers’ expectations to meet up the customers demand, satisfaction and relate Potter (2014) stated that relationship marketing helps to create a good relationship with the customers by understanding the behavior of them and offer in a certain way for developing long term profitable relationships. Sharp (2017)) noted that the core aim of Relationship Marketing is increasing the number of customers with profitability. Zikmund (2012) mentioned that Relationship Marketing enhances the production system, quality level; sales level as well as overall performance by creating strong relationships with the customers. Payne (2015) noted that relationship with customers is also positively affected by relationship marketing.
2.2 Relationship marketing components
Warren Knight (2018) stated that the components of RM can be categorized under three broad categories collaborative, analytical and operational relationship marketing.
According to Palmer (2014), collaborative relationship marketing indicates the process of creating relationships through giving feedback to the problems of the customers. Warren Knight (2018) stated that Analytical RM is a process of creating relationships through developing good decisions and strategies on the consumer buying behavior, and strategies of marketing. Smriti Chand (2017) Operational RM is a process of creating relationships through promotional activities like discount facilities for the customers.
2.3 Significance of relationship marketing in the UK retail sector
Relationship marketing helps to improve the relationship with customers that have positive outcomes (Payne, 2015). Relationship marketing is increasing customer bases along with business profitability in the retail segment of the UK. Mary Lister (2019) mentioned that Relationship Marketing enhances the production system, quality level; the amount of loyal customers is also increased through using effective CRM. Kotler et al. (2014) mentioned several matters at which relationship marketing is required. Firstly; the success and profitability of the retail business depend on loyal customers. Secondly; loyal customers inspire others to buy from a certain brand without any problems or questions. Thirdly; a strong brand image is very important that can be established by proper relationship marketing (Mary Lister, 2019). In addition; in every aspect of the retail business; relationship marketing has great appeal for gaining prosperity in the competitive business world.
2.4. Customer loyalty
Customers are the key issue of all kinds of business firms because they are the ultimate source of making a profit of the business. According to Kotler et al. (2014), customer loyalty represents a situation in which customers are feeling very satisfied with a specific product and continuously choose and purchase the product for all time. Chand (2017) stated that a person who purchases similar kinds of products frequently, this customer is referred to as loyal customer. The main reason behind becoming a loyal customer is that the customer has positive feelings about the product. According to Sharp (2017), loyal customers are not turned off purchasing from the same brand if they don’t face any dissatisfaction matters. The business organization tries to increase the profit history of the firm that can be able by the loyal customers…………………………
Full Documents Click Download Button
