Table of Contents
1.2 Research Background.
1.3 Research rationale.
1.4 Research Problem.
1.5 Aims, objectives and research questions.
1.6 Research Question.
1.7 Significance of the research.
2.0 Literature Review.
2.2 Relationship Marketing (Customer Relationship Management)
2.4 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.
3.2 Research philosophy.
3.3 Research approach.
3.4 Research Design.
3.5 Research method.
3.6 Data collection method.
3.7 Sampling Method.
3.9 Research Validity.
3.10 Ethical issues.
3.11 Research Limitations.
4.0 Research Timetable.
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 competitive age, relationship marketing 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
According to Payne (2015), relationship marketing customer demands and choice. All business organization tries to attract and retain customers through various types of strategies to gain success in the market with competitive advantages. Customer relationship management is one of them (Kotler et al., 2014). Relationship marketing is a method by which business firms can build strong relationships with customers and retain them for a longer period of time and make them loyal. The main objective of retail business is to maximize profit. That is why business firms not only focus on quality products but also ensure a good relationship with the customers. A good relationship with customers increases customer satisfaction and customer loyalty. When customers are satisfied, they become loyal that increases business performance (McIlroy and Barnett, 2014).
1.3 Research 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 business to satisfy their customers through providing better services and build a profitable relationship with them. Thus, it is a very important task of Tesco to know about the procedure of building strong relationships with customers and make them loyal (Heron, 2016). Thus, 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 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 Research Problem
According to Andrew (2010), customer demands and choices are changeable. That is why it is very difficult to understand and meet customer demand. The previous researcher faced difficulties to 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. This is because developing relationship marketing is very time-consuming and cost-effective. Heron (2016) stated that customer loyalty is a complex factor that is not easy to control. For example, the development of Tesco Clubcard is a very sophisticated data-driven customer loyalty scheme. In this relationship marketing, Tesco spends millions of pounds and time for years (Digtial Initiative, 2018). However, according to Tesco Annual Report (2016), Tesco faces difficulties to manage this loyalty program with its 16.5 million subscribers that, in turn, affects the customer loyalty issues.
1.5 Aims, objectives and research questions
1.5.1 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.
1.5.2 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 customers in the retail business industry
- To give some recommendations to the retail business industry and Tesco to enhance customer loyalty.
1.6 Research Question
How Can Customer Relationship Marketing affects customer loyalty in the UK Retail industry: A case study of Tesco, UK.
- 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
This study is significant for both UK retailers and researchers. The finding of this study is very important for the retail business especially for Tesco because this study will provide suggestions for retailers. It is also important for the researcher’s personal skills and experience. It will enlarge 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.
2.0 Literature Review
In this chapter, the researcher focuses on two factors. One is Relationship Marketing and another is customer loyalty. Firstly, the researcher has been described the concept of Relationship Marketing, then its features and effects. Secondly, the researcher has been described the concept of customer loyalty and its impact.
2.2 Relationship Marketing (Customer Relationship Management)
2.2.1 Concept of Relationship Marketing
Kotler (2015) stated that Relationship Marketing includes the strategies and techniques for building up relationships with customers. Business firms create relationships with customers by understanding their behavior of the customers. Heron, (2016) said that the main objective of Relationship Marketing is maintaining a profitable and long-life relationship with potential customers. According to McIlroy and Barnett (2014), Relationship Marketing includes the activities that improve the production level, product quality level, sales level and performance of the industry. Payne (2015) mentioned that customer relationship management plays a vital role in the development of the relationship between various stakeholders of the firm.
2.1.2 Key features of Relationship Marketing
There are 3 features of Relationship Marketing. One is Collaborative Relationship Marketing, the second one is analytical Relationship Marketing and the third one is Operational Relationship Marketing (Robert, 2014). Palmer, (2014) mentioned that Collaborative Relationship Marketing includes feedbacks on the customer’s complaints. Analytical Relationship Marketing includes management decisions, consumer buying behavior, forecast future trends and forecast marketing strategies. McIlroy and Barnett (2014) said that Operational Relationship Marketing includes various types of offers and services for attracting and retaining customers………………