Impact of Relationship Marketing on Customer Loyalty in the UK Retail Industry (GC01414)

Table of Contents

1.0 Introduction.

1.1 Introduction.

1.2 Research Background.

1.3 Research rationale.

1.4 Purpose for undertaking the study.

1.5 Research Problem.

1.6 Aims, objectives and research questions.

1.6.1 Research Aims.

1.6.2 Research Objectives.

1.6.3 Research Question.

1.7 Significance of the research.

2.0 Literature Review.

2.1 Introduction.

2.2 Relationship Marketing (Customer Relationship Management)

2.2.1 Concept of Relationship Marketing.

2.1.2 Key features of Relationship Marketing.

2.2.3 Why Relationship Marketing matter in UK retail sector

2.4 Customer Loyalty.

2.4.1 Concept of Customer Loyalty.

2.4.2 Loyalty Framework.

2.3 Impact of Relationship marketing on customer loyalty.

2.4 Conceptual framework.

2.5 Literature gap.

3.0 Research methodologies.

3.1 Introduction.

3.2 Research philosophy.

3.3 Research approach.

3.4 Research Design.

3.5 Research method.

3.6 Data collection method.

3.7 Sampling Method.

3.8 Reliability.

3.9 Research Validity.

3.10 Ethical issues.

3.11 Research Limitations.

4.1 Research Timetable.

4.3 Conclusion.

Reference.

1.0 Introduction

1.1 Introduction

Every business has the profit motive to run its business activities. Profit can be maximized through customer satisfaction. Customer satisfaction affects customer loyalty (Heron, 2016). Customer loyalty is very much important for every business organization. Customer loyalty depends on the Relationship Marketing activities. Relationship marketing and customer relationship management. In this competition age, CRM affects customer loyalty positively. The topic of the research is finding out the impact of customer relationship marketing on customer loyalty. Here, the researcher has been collected all data and measuring the impact of customer relationship marketing on customer loyalty.

1.2 Research Background

Relationship marketing customer demands and choice. The number of business firms is increasing day by day in the UK. So, the competition among these industries is also increasing day by day. At this time, all business organization tries to attract and retain customers through various types of strategies. Customer relationship management is one of them. Relationship marketing is a method by which a business firm can build strong and profitable relationships with customers and retain them for a longer period of time. The main objective of retail business is to maximize profit. That’s why; business firms produce not only quality products but also ensure a good relationship with the customers. A good relationship with customers ensures customer satisfaction. When customers are satisfied, they become loyal and connect with the business as true friends. Without customer loyalty, the business firm can’t attain its targeted goals (McIlroy, and Barnett, 2014).

In this research, the objective is to find out the impact of customer relationship marketing on customer loyalty. Here, a retail organization is selected for finding the relationship between customer relationship and customer loyalty. The name of the company is Tesco that is situated in London. Tesco has been faced various types of threats and not achieved its targeted goals. The main reason behind it was a poor relationship with customers. For these reasons, this research is very much useful for Tesco to improve their relationship with customers and accomplish their targeted goals. That’s why; this research is prepared that is very necessary for Tesco.

1.3Research rationale

The main goal of this report is to measure the impact of customer relationship marketing on customer loyalty; a case study on Tesco. Nowadays it is a challenge for all retail businesses to satisfy their customers through providing better services and build a profitable relationship with them. So, it is a very important task of Tesco to know about the procedure of building profitable relationships with customers and retain them as true friends (Heron, 2016). That’s why this research is very important for the retail business especially for Tesco (Tesco Plc 2016). This research focuses on the factors that directly affect customer relationship management and customer loyalty. It also focuses on the procedures of customer relationship management to create a better relationship with customers and makes them loyal (McIlroy, and Barnett, 2014). By this research, the management body of Tesco can understand the necessity of customer relationship marketing and customer loyalty to maximize the profitability of the firm (Palmer, 2014).

1.4 Purpose for undertaking the study

(Robert, 2014) said that it is the day of the competition. Each business firm competes with one another seriously (Palmer, 2014). The key factor for the success of a business is to attract customers and retain them as loyal. But it is a difficult task. Research is very much needed to understand the effect of customer relationship management and customer loyalty on business performance (McIlroy, and Barnett, 2014). That’s why; this research is prepared. This research helps to create a relationship between customer relationship management and customer loyalty.

1.5 Research Problem

According to Andrew (2000), Customer demands and choices are changeable. That’s why; it is very difficult to maintain the production according to the customers’ demand. The past research did not find out the real impact of Relationship marketing on customer loyalty. (McIlroy, and Barnett, 2014) stated that the implication of Relationship marketing is the major problem in the retail business industry in the UK. Heron, (2016) stated that Customer loyalty is a complex factor that is not easy to control. According to Tesco Annual Report (2016), All retail business especially Tesco has been faced the problem of implementing Relationship marketing and making customers loyal. That’s why; it affects negatively the profitability of the retail industry (Robert, 2014). For this reason, this research has importance for all retail business industries in the UK.

1.6 Aims, objectives and research questions

1.6.1 Research Aims

The prime goal of the research is to analyze the impact of Relationship Marketing on customer loyalty levels in retail businesses. This research is prepared for analyzing the impact of customer relationship management on the loyalty of customers of Tesco in the UK.

1.6.2 Research Objectives

To find out the importance of relationship marketing in the retail business industry.
To identify the factors that directly affect customer loyalty in the retail business industry.
To evaluate the effect of Relationship Marketing on the loyalty of customer in the retail business industry
To give some recommendations to the retail business industry and Tesco to enhance customer loyalty.

1.6.3 Research Question

Key question

How Can Customer Relationship Marketing affects customer loyalty in the UK Retail industry: A case study of Tesco, UK.

Sub-questions

What is the importance of relationship marketing in the retail business industry?
Which factors are affecting customer loyalty in the retail business industry?
Which factors are affecting relationship marketing in the retail business industry?
What is the relationship between relationship marketing and customer loyalty?

1.7 Significance of the research

The main goal of this report is to measure the impact of customer relationship marketing on customer loyalty; a case study on Tesco. Nowadays it is a challenge for all retail businesses to satisfy their customers through providing better services and build a profitable relationship with them. So, it is a very important task of Tesco to know about the procedure of building profitable relationships with customers and retain them as true friends (McIlroy, and Barnett, 2014). That’s why this research is very important for the retail business especially for Tesco. This research is not only useful for Tesco but also for the researcher’s personal skills and experience. It enlarges the practical Knowledge of the researcher. It also ensures the report knowledge and communication skill of the researcher. This research is also helpful for the future perspective of the firm. This research is used to finding out the possible solutions to various problems that are faced by firms and individuals. So, the significance of the research can’t be ignored………………………………

Proposal for Postgraduate