This study aims to conduct quantitative research on the impact of relationship marketing on customer loyalty in the UK retail sector. This study focuses on the case of Tesco plc, UK. Then, this study provides recommendations for Tesco on how it can increase its relationship marketing efficiency to improve customer loyalty in the competitive marketplace. The objectives of this study are: a) to understand the use of relationship marketing in the retail sector of UK; b) to understand the necessity of customer loyalty in the retail sector of UK; c) to analyze the impact of relationship marketing on customer loyalty in the retail sector of UK; and d) to provide recommendation for Tesco how it can increase its relationship marketing efficiency to improve customer loyalty in the competitive marketplace.
The positivism philosophy, descriptive research design and deductive study approach are used to conduct this study. A survey was conducted to collect the quantitative data. 100 customers of Tesco from different branches of the UK participated in this survey. The survey finding shows that 52%% of consumers have been very influenced through RM offered by Tesco, 64% of customers are happy with the Tesco club-card, and 69% of customers are very loyal towards Tesco due to its effective relationship marketing. However, 63% of customers recommend that Tesco should improve its relationship marketing including customers’ service, promotional offers, and points of club cards. On the other hand, the statistical data analysis shows that relationship marketing has a positive correlation with the customers’ loyalty.
Table of Contents
Chapter 1: Introduction.
1.1 Research Background.
1.2 Problems Statemen
1.3 Research Rationale.
1.4 Research aims and objectives.
1.5 Research questions.
1.6 Scope of the study.
1.7 Research structure.
Chapter 2: Literature Review.
2.1 Relationship marketing.
2.3 Tesco’s relationship marketing.
2.4 Customer Loyalty.
2.4.2 Loyalty Framework.
2.5 How customer relationship marketing affects customer loyalty in the retail sector of the UK.
2.6 Studies done over time on the research topic.
2.8 Conceptual framework.
Chapter 3: Methodologies.
3.1 Research Philosophies.
3.2 Research Design.
3.3 Research Approach.
3.4 Data collection methods.
3.5 Data Sources. 2
3.6 Research instruments.
3.7 Questionnaire Design.
3.8 Sampling Method.
3.9 Ethical issues.
3.10 Data Analysis Plan.
3.11 Research Reliability and Validity.
Chapter 4: Findings and Analysis.
3.1 Simple descriptive analysis.
4.3 Regression analysis.
Chapter 5: Conclusion and Recommendation.
Appendix B: Survey and interview questionnaire.
Chapter 1: Introduction
The significance of relationship marketing is increased gradually in the UK. The customers are more concerned about their products and they are always seeking better quality goods and services. Modern technological advantages make it easy to choose their goods easily for the customers. In a competitive business, market organizes are more concerned to get their customers contentment and loyalty. They face many difficulties to understand their customers’ demands but they always try hard to fulfill their customers’ requirements and become profitable. They use several techniques and long-term processes to expand their business and gain loyal customers.
1.1 Research Background
In the retail business sector, it is most important to maintain a good relationship between the company and the customers. In the long run, a business company needs loyal customers. Through loyal customers, a company can earn a sufficient amount of profits and get benefits and their popularity also depends on their customer’s opinions. So companies are more concerned about their customers’ feedbacks and opinions about their products and goods. In a competitive era of business sectors, every company is more aware of its relationship marketing (Jorgensen, 2017). Several features are involved with relationship marketing that plays an important role to maintain a good and appropriate relationship in the business. This study mainly discussed the impact of relationship marketing on customer loyalty in the UK retail sector. Tesco is a famous retailer company in the UK. Tesco always focuses to build up a strong and good relationship with their customers and provide them several offers and benefits to gain the customer’s contentment and loyalty (Barnes, 2016). Tesco gathers the customers’ opinions and responses and tries to enhance their goods and services according to their customers’ needs. This study mainly discusses this.
1.2 Problems Statement
Effective relationship marketing is very important for the organization to gain long-term prosperity. The retail business sectors are expanding very rapidly and day by day the competitors are increased in this sector. Customers are also more concerned to buy their products. They always seek better services and goods and also emphasize cost-effectiveness. Better relationship marketing can bring competitive advantages and profits for the company. Tesco is one of the biggest retail companies in the UK. But other retail companies are also developed their business such as Sainsbury, ASDA, and Morrison and so on. So, getting the customers’ loyalty and getting benefits Tesco changes its marketing strategies. Sometimes Tesco faces several difficulties (Kaur, 2016). A survey reveals that the sales revenue of Tesco decreased by 3.8% in 2015 than the previous year (Tesco Annual Report, 2016). The main reason behind this decrease is to fail to maintain the proper relationship marketing as well as lost their number of loyal customers which had a negative impact on their business (Mosavi,2018). So in this study discuss the better way to maintain the proper relationship marketing in Tesco and increase the loyalty of their customers.
1.3 Research Rationale
Previously business sectors are more focused on transactional strategies but in modern times the perspective of business changes. Customers are more concerned about better goods and services. So business sectors are given more emphasis on relationship marketing than transactional strategies. The benefits of relationship marketing are lots. A better and suitable relationship among the business and customers ensure the advantages for both (Marshall, 2019). Tesco is a top-class Retail Company in the UK. To build better relationship marketing they provide “Tesco Clubcard” to enhance their consumers’ loyalty. Tesco is always concerned to fulfil their customers’ needs and demands. They introduced the “Complain Management Desk” to get the customers’ opinions and responses that would be helpful to make their products and services more improved. But there are several retail companies in the UK that are considered the most competitors of Tesco (Morgan, 2018). On the other hand, competitive business marketing, gradually prospected changes, trends and technological development Tesco suffers several difficulties and lost its share in the marketplace and decreased its revenues. In this study, the proper solution to these problems would be discussed.
1.4 Research aims and objectives
This study aims to conduct quantitative research on the impact of relationship marketing on customer loyalty in the UK retail sector. This study focuses on the case of Tesco plc, UK. Then, this study provides recommendations for Tesco on how it can increase its relationship marketing efficiency to improve customer loyalty in the competitive marketplace.
- To understand the necessity of customer loyalty in the retail sector of the UK
- To analyze the impact of relationship marketing on customer loyalty in the retail sector of the UK
- To provide recommendations for Tesco on how it can increase its relationship marketing efficiency to improve customer loyalty in the competitive marketplace
1.5 Research questions
In which way the retail sector of the UK can increase the efficiency of its relationship marketing to improve customer loyalty in the competitive market?
- How the UK retailers are now using relationship marketing in their businesses?
- What techniques are now being used by UK retailers to increase their customer loyalty?
- How does relationship marketing affect customer loyalty of UK retailers?
- What initiatives do UK retailers can take to improve customer loyalty by increasing the efficiency of their relationship marketing?
1.6 Scope of the study
The retail sector is very important in the UK as well as the entire World. In the retail sector, relationship marketing plays the most significant role. For maintaining proper relationship marketing in business, it is more easily possible to gain customer loyalty and get an adequate amount of profits than other strategies. In this study, the selected company is Tesco as a famous retail company in as well as Europe. The impact of relationship marketing on customers’ loyalty in Tesco has been discussed in the study.
1.7 Research structure
Chapter 2: Literature Review
A critical review is mainly related to the summarization and evaluation of the concept and information in certain research or subject matters. In this section, the critical review of the impact of relationship marketing on customer loyalty in the UK retail sector has been discussed. The concept of relationship marketing, several key features of relationship marketing existing relationship marketing in selected organization Tesco, the effect of relationship marketing on Tesco business and the concept of customers’ loyalty are critical analyses and elaborately discussed here through different sections.
2.1 Relationship marketing
2.1.1 Concept of relationship marketing
The concept of relationship marketing has appeared in the marketing literature since the 70s. This concept is a breadth of marketing concepts to consider market progression, where the concept of timely communication begins to provide the technique to a more relational approach. This new approach comes from the interest of the exchange party to maintain a timely relationship (Damprett, 2017). Relationship marketing is helpful for building a firm persuasive relationship that will insist organizations emotionally connect with their customers. To gain a proper relationship between the organization and customers it is important to maintain the proper business strategies, amalgamate the techniques and procedures that are related to conducting business successfully and suitable for both customers and certain organizations. Successful retail companies are always concerned about their customers’ needs and requirements (Weitz and Jap, 2018). As a profitably successful company, Tesco conducts many surveys to collect the various data and information from their customers to realize their demands, requirements, complaints and so on. So that they can develop their business in the proper way to maintain a good relationship with their customers and gain more benefits in their business………….
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