Preview

Analysing the Loyalty Card as Promotion Tool; Can It Improve Satisfaction and Loyalty Between the Supermarkets and Customers Such as Tesco Plc Case Study.

Powerful Essays
Open Document
Open Document
6303 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Analysing the Loyalty Card as Promotion Tool; Can It Improve Satisfaction and Loyalty Between the Supermarkets and Customers Such as Tesco Plc Case Study.
Analysing the loyalty card as promotion tool; can it improve satisfaction and loyalty between the supermarkets and customers such as Tesco plc case study.
Name
Course
Instructor
Date Due

* Dissertation main aim
Analysing the loyalty card as promotion tool; can it improve satisfaction and loyalty between the supermarkets and customers such as Tesco plc case study.
Chapter 2 Literature Review * Customer Loyalty
It is more than 20 years since questions revolving the definition of loyalty have been addressed (Grisaffe 2001). Despite this, further readings have shown that a lot more is still attached to the idea and as a result considered to be a complicated phenomenon (Parker and Worthington 2000). One of the outstanding insights into loyalty is said to be the link between behaviour and attitude. Crucial to shading more light towards getting a clear understanding to this is the relationship between behaviour and attitude. It is however worth noting that this is not significantly enough since the perception provides room for behaviour and attitude change in future. Humby and Hunt (2004) are of the opinion that loyalty is more of an emotional concept thus resisting the definition in terms of behaviour. This therefore champions that loyalty is an emotional concept resulting from trust. Others also define loyalty as emotional concept built on empathy (East 1997). Building on the idea and recognition that opinions and feelings are active, variables that include but not restricted to social, physical environments as well as individual abilities have been known to pre-empt action. On the contrary this view can be seen as being loyal functionally in that customer tends to be loyal to a company only because of convenience (Barnes 2002). According to (Grisaffe 2001), loyalty does not rotate around behaviour, for instance, other are buyer whom have developed cognitive rule in that they only buy low priced products, because of this such



References: Building brand webs: customer relationship management through the Tesco clubcard loyalty scheme, 2005, Bingley: Emerald Group Publishing Ltd. *

You May Also Find These Documents Helpful

  • Good Essays

    References: Kooser, A. C. (n.d.). About the ethical & practical aspects of using customer loyalty cards. Retrieved from http://smallbusiness.chron.com/ethical-practical-aspects-using-customer-loyalty-cards-3287.html…

    • 940 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Mktg522 Course Project

    • 8188 Words
    • 33 Pages

    Hughes, A. M. (2003). The customer loyalty solution what works and what doesn 't in customer loyalty programs. New York: McGraw-Hill.…

    • 8188 Words
    • 33 Pages
    Powerful Essays
  • Satisfactory Essays

    References: ICLP the global loyalty agency. (2010). International Customer Loyalty Programmes Plc. Retrieved on October 25-26, 2011 from…

    • 539 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    An organization survives through customer loyalty i.e. having regular customers. Tesco ensures that they get regular customers by giving them loyalty cards, promotions such as “buy one get one free”, discounts and other special offers. Tesco are getting regular customers which bring in more profit which then can be used to help expand the business. Tesco made customer loyalty marketing work when so many other retailers failed. They give vivid insights into how Club card benefits Tesco and more importantly, its customers.…

    • 936 Words
    • 3 Pages
    Good Essays
  • Good Essays

    As a Manager, we all know customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and even bring you more customers,…

    • 594 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Mkt 500- a Business Mkt Plan

    • 2941 Words
    • 12 Pages

    Felgate, M., Fearne, A., Di Falco, S., & Garcia Martinez, M. (2012). Using supermarket loyalty card data to analyse the impact of promotions. International Journal of Market Research, 54(2), 221-240. doi:10.2501/IJMR…

    • 2941 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    However, before going into consumer’s relationship using loyalty cards it is vital to understand that every consumer is unique. Although Tesco might want to develop a consumers relationship they should understand that not all consumers are wealth while to be in a relationship with.…

    • 2088 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    As a company with millions of customer throughout 2, 900 stores, The Coles Group certainly be one of the top companies in Australia and New Zealand. However, it has lost its market share to the more enhanced and focused Woolworths company. The loyalty program battleground between two companies seemed more advantages over the Woolworths side since it gained 40% of market share with less on 50% advertising spending. There are some possible problems the Coles Group has to consider while managing its broad relationship marketing programs. First, their customer may find it very difficult to understand and remember all the complexity of saving points promotion. Second, it…

    • 386 Words
    • 2 Pages
    Powerful Essays
  • Good Essays

    Accounting and GAAP recognition of revenue under SAB 101 and SAB 104 for supermarket customer loyalty cards and points issued on airlines frequent flyer programs.…

    • 658 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    References: Humby, C. and Hunt, T. (2003) Scoring Points: How Tesco is Winning Customer Loyalty. Great Britain and the United States: Kogan Page Limited…

    • 1141 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Whole Foods Inc. needs to understand that maintaining the customer loyalty in not about card programs or gimmicks. It is about a solid dependable core offering that is appealing to the Whole Foods customers. According to the text, customers loyalty is best described as having a longer customer history, more willing customers who are committed to the company brand, purchase more goods, and are more likely to recommend the brand or product to others (Best, 2000). Whole foods main objective in terms of customer loyalty is to focus solely on what appeals to the customer and deliver to them in the expected time. Whole Foods can do this by making it absolutely clear to the employees the current needs of the customers and by training them to deliver…

    • 154 Words
    • 1 Page
    Satisfactory Essays
  • Best Essays

    Tesco's operations stategy

    • 3281 Words
    • 14 Pages

    The Institute for Retail Studies's research (2003) reports that retail industry in the UK is quite competitive, dynamic, and innovative in recent years. And grocery retailers such as Tesco, Sainsbury's, Asda etc. are all compete on price, quality, range, and service in order to strive for business success. Within this intense competition of retail industry, Tesco can stand at market-leading position in recent years has mainly come from its strategies of expanding overseas, shifting to 'higher margin' non-food market and maintaining a strong core UK business (Corporate Watch UK, 2004). And its UK success has been built on low prices, cultivating customer loyalty, unbeatable quality, offering a range of different store concepts and expanding into retailing services (Tesco Plc annual review, 2005). Moreover, according to Business Engine, Inc. (2006), it reports that close control of internal resources and diligent monitoring of all expenditures are also the critical aspects for Tesco to maintain its leading position in the market. Therefore, Tesco's business success indicates that effective operations strategies have played a vital part in supporting and driving its whole business objectives which is "to create value for customers to earn their lifetime loyalty".…

    • 3281 Words
    • 14 Pages
    Best Essays
  • Better Essays

    The most important revolution was the introduction of the Tesco Clubcard in 1995. This sophisticated tool has enabled Tesco to learn important information about its customers which in turn has been used to improve Tesco's marketing strategy. It has helped implement many successful marketing communication campaigns due to heightened awareness of…

    • 1474 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Branding and Reputation has been strategic advantage for the company where spreading like wildfire by transforming the generic products into the brand-specific, largely through carefully branded packaging and the promotion of an “every penny or cent counts” mindset. The company has a strong brand image and is associated with good quality, trustworthy goods that represent excellent value. The product and service development process of the company have been substantially re-engineered to facilitate better management of product lifecycles and more efficient delivery of wide ranges of products to customers. In addition, Tesco’s is also very successful in terms of customer loyalty due to its loyalty cards system and its general approach to customizing services to the needs of every customer.…

    • 1851 Words
    • 5 Pages
    Good Essays
  • Good Essays

    research paper on Airtel

    • 23729 Words
    • 95 Pages

    Kotler, P., & Keller, K. L. (2008). Loyalty and the related factors. In Marketing Management…

    • 23729 Words
    • 95 Pages
    Good Essays