Written Assignment Final Draft
August 2014
Student Number: 140620263
Student Name: WEI-CHENG SU
Group: INU 1832
Assignment title: To what extend supermarket loyalty cards are advantageous to the customers
Assignment title number: 7
Word Count: 1499
To what extend are supermarkets loyalty cards advantageous to the customers
In the modern society, more and more supermarkets are founded, a slightly different price level will impact shoppers decide whether they buy or not. As a result, these stores have to decide new strategies to lure and retain people consuming in their supermarkets. Loyalty cards are produced from this fierce competition in market, companies design a variety of loyalty programs to become their weapon to stand out in a crowd. Currently, all of the chain supermarket have their loyalty program. Supermarkets provide loyalty cards to reward their customers, which depending on how much they spend in the store, and trying to attract their customers continue shopping in their shop. However, the loyalty cards seem like a win-to-win systems, buyers and sellers both are advantageous from it. Moreover, when the first national grocery shop Clubcard was launched on 13 February 1995 by Tesco, the spokesman of the firm claimed that the purpose of the loyalty scheme was not to draw customers back from competitors, but it is a way to appreciate their customers (Peck et al., 2013) In fact, the loyalty programs are betraying customers. This essay will argue that loyalty cards are not advantageous to customers, it will only exploit more profits from them.
Loyalty schemes could not be benefit to purchasers, but it can help firms getting more profits from punters. From the viewpoint of the retailers, in spite of they always said these programs is economical for consumers, the truth is that they want to use this system to make people stay purchasing in their stores. Reichheld and Sasser (1990) computed that customers retention