At first, I express uncountable praise to the creator because he has enabled me to prepare this research paper. I express my sincere and deepest sense of gratitude, heartiest appreciation and high indebtedness to my honorable seminar supervisor for his sincere scholastic guidance, active supervision, constant encouragement, constructive suggestions and positive criticism in the planning and preparation of this paper. Profound thanks and appreciation are due to my intimate friends for their co-operation and constant inspiration during the whole of my academic periods. Finally, I feel deeply and sincerely to express my boundless gratitude for the blessings of my parents.
This study’s aim is to critically evaluate the impact of relationship marketing on customer loyalty in the retail sector of the UK. The goals of the research are To explore and discover the key features of relationship marketing practices in the UK retail market including in Tesco; To analyze the effectiveness of relationship marketing practices used in Tesco in customer view; To analyze the importance of customer loyalty in the context of UK retail sector; To evaluate the impact of relationship marketing on customer loyalty in UK retail sector; To provide recommendations for UK retailers (mainly Tesco) on how they can improve effectiveness of relationship marketing activities to improve customer loyalty. A survey for primary data collection and is conducted by a survey researcher.
There are 13 questions in the survey where the first 12 have been closed and the last question has ended with the knowledge about the recommendation of the consumers. The survey was conducted on 100 customers of Tesco from several outlets in the UK. Quantitative information is used to analyze SPSS methods. The entire chapter’s basis on the goals and targets of this research topic is discussed in the second part. Primary and secondary data are used in this study to understand the relationship between Tesco’s relationship marketing and customer loyalty.
The finding of this research shows that among 100 participates 18% are very influenced by the relationship marketing of Tesco. About 18% of customers of Tesco preferred Email marketing. 26% of consumers are strongly agreed with the benefits of supportive to compare with competitors. 26% of consumers are strongly agreed with the benefits of support in the marketing purchasing decisions. 21% of consumers are strongly agreed with the benefits of support in the buying process.
In the issue of the benefits of support in after-sale services, 30% of consumers are strongly agreed and 29% agree with that. 30% of consumers are strongly agreed with the benefits of supportive to contact Tesco. 18% of customers are very satisfied with the Tesco Club card. 26% of consumers are strongly agreed that service values influence them when they purchase products from Tesco. 19% of consumers are strongly agreed that service quality influences them when they purchase products from Tesco. 17% of consumers are strongly agreed that communication influences them when they purchase products from Tesco. Consumers strongly suggest that Tesco should improve customers’ services, provide a more promotional offer, provide more points in club card and should improve data privacy and security in Club card usages
CHAPTER ONE: INTRODUCTION
At present time, relationship marketing plays the most significant role in Retailing sector in the UK. It can be complicated worldwide, finding good offers and having proper knowledge around the world. These are the most challenging issues to conduct the business in retailing sectors. Therefore, retailers get strong attention on relationship marketing that is one of the main activities of a business to build relationships among consumers (Bendapudi, 2016). Therefore, marketers are now paying more attention to long-term relationships with customers for their commitment and increasing consumer loyalty. On the other hand, the companies have several competitions from other companies in the retail marketing sector. So companies always try to fulfill the consumers; needs and requirements and get benefited. For that reason, it is necessary to give higher density on the research as well as improvements of companies.
1.1 Research Background
Customer relationship is most important for the company to achieving competitive advantages and gaining desire benefits. This is very effective for creating a firm relationship with the consumers as well as staff of the companies. The successes of Relationship marketing mainly rely on the business processes of the company, technology support, marketing strategies and public integration. A large amount major retail companies are becoming aware of their customers’ information as well as relationships among them (Bendapudi, 2016). The UK companies gather information about their consumers by relationship marketing. UK retail businesses expand their marketing and valuation strategies on the basis of this information.
The company should achieve the scheme about their consumers’ requirements to attract their customers. Relation marketing is very helpful to gather the proper information that is very effective and necessary to expand their business for any retailing company in the UK. According to Pressey and Mathews (20016), this study mainly emphasizes the idea of customer relationships for understanding the reasons for increasing customer loyalty. The leading retailer company of UK as Tesco, their relationship marketing and customer loyalty are discussed in this study ((Jorgensen, 2017).
1.2 Problems Statement
To gain proper and desire success for the business companies, appropriate and efficient relationships among consumers are most important. In order to maintain efficient relationships with consumers, businesses are now working to develop relationships with customers and develop marketing schemes (Berry, 2015). On the other hand, mainly due to market competition, the retail sector in the UK is a major problem in the business world. Satisfactory consumers are the most important for any business company.
Though the UK’s largest retailer Tesco is using relationship marketing in a number of various methods, the global recession has been under pressure since 2008/09. The other strong competitors such as ASDA, Sainsbury’s, and Morrison of Tesco make it difficult to achieve consumers’ loyalty. Tesco’s sales revenue fell 3.8% compared to the last year. The main cause for this decrease is that Tesco was not successful to maintain its ability to improve, maintain, and maintain efficient relationships among its desired consumers. So, Tesco lost its market share of 1.5% in 2016. Therefore, increasing consumer loyalty it is now an important factor in conducting research on relationship marketing (Izquierdo et al. 2016).
1.3 Research Rationale
In the present technology-based world the business transfers their strategies from transactions into relationships. Long-term customer relationships support growing customer support as well as loyalty. In the UK to improve their consumer loyalty retailers are paying more attention to relationship marketing than before. So, for this reason, to gain more loyal consumers and making stronger relationships with them Tesco launched “Tesco Club Card”. On the other hand, Tesco faces high customer complaints (Tesco Annual Report, 2018).
As a result, it has begun a complaint desk for consumers. Managers and staff have also been trained for efficient conduct among the consumers. Additionally, the competition in the retailer sectors is drastically increased which has a great influence on customer loyalty in the entire business company and also impacts the companies’ market share, profits and also revenue. as a result, this research analyzes the marketing relationship characteristics and customer loyalty and their influence Ndubisi (2016). After that, research focuses on the problem of research and their solution and gets the desired success.
1.4 Research aims and objectives
The key goals of a business like Tesco are to develop, maintain, and sustain long-term relationships with their customers, attract new customers, and increase customer retention and loyalty. The key goals of this study critically analyze the effectiveness of relationship marketing practices by UK retailers (including Tesco) in achieving customer loyalty. This research mainly analyzes the ways to relationship marketing works and their importance in gaining more customer loyalty and achieving desired aims and purposes. After that, the basis on the outcomes of this research gives several recommendations for improving the retail business strategies as well as Tesco…….