The Impact of Relationship Marketing on Brand Loyalty at TESCO (Enfield)

Running head: DISSERTATION
The impact of relationship marketing on brand loyalty at TESCO (Enfield)
Name of the Student
Name of the University
Author’s Note

1DISSERTATION
Table of Contents
CHAPTER 1: INTRODUCTION..............................................................................................4
1.1 Research background........................................................................................................4
1.2 Statement of the problem..................................................................................................4
1.3 Aim of the research..........................................................................................................4
1.4 Research objectives..........................................................................................................5
1.5 Research questions...........................................................................................................5
1.6 Research hypothesis.........................................................................................................5
CHAPTER 2: LITERATURE REVIEW...................................................................................7
2.1 Concept of relationship marketing...................................................................................7
2.2 Factors affecting relationship marketing..........................................................................7
2.3 Concept of brand loyalty..................................................................................................9
2.4 Factors affecting brand loyalty.......................................................................................10
2.5 Conceptual framework...................................................................................................12
2.6 Application of Keller’s brand equity model...................................................................12
CHAPTER 3: METHODOLOGY...........................................................................................15
3.1 Research Onion..............................................................................................................15
3.2 Sample size.....................................................................................................................16
3.3 Sample type....................................................................................................................16
3.4 Sample selection method................................................................................................16
3.5 Data collection method...................................................................................................17

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3.6 Mixed method.................................................................................................................18
CHAPTER 4: ANALYSIS.......................................................................................................19
4.1 Research questions.........................................................................................................19
4.2 Results of the survey questionnaire................................................................................19
4.3 Results of the interview..................................................................................................24
4.4 Discussion.......................................................................................................................25
CHAPTER 5: CONCLUSION AND RECOMMENDATION................................................29
5.1 Summaries......................................................................................................................29
5.2 Research objectives........................................................................................................29
5.3 Recommendations..........................................................................................................31
5.4 Further research..............................................................................................................32
Bibliography.............................................................................................................................33
Appendices...............................................................................................................................38
Appendix 1...........................................................................................................................38
Survey questionnaire............................................................................................................38
Appendix 2...........................................................................................................................40
Interview questions and answers..........................................................................................40

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Abstract
The research tries to focus on the relationship marketing on which brand loyalty at Tesco can
be determined. The background of the research is that it identifies the factors that can
contribute for the success of relationship marketing as well as brand loyalty. The reason for
the selection of Tesco is that it can help to understand the manner in which sales are made by
the company to enhance its reputation in the business. The aim of the research is to evaluate
how the relationship marketing at Tesco, Enfield, UK can create an impact on the way
customers gain trust and become loyal towards the brand. The literature review identifies the
brand equity model of Keller and links it with Tesco. It also identifies the factors that are
involved with relationship marketing as well as brand equity so that link can be made with
Tesco. The research methods undertaken include the application of deductive method,
positivism philosophy and descriptive research along with collection of primary data. Both
survey questionnaire method and interview method are selected for commencing with the
research. The analysis has shown that relationship marketing and brand loyalty have a
positive relation with one another. The managers of Tesco also have provided positive view
about the manner in which impact of relationship marketing have been an influence for
Tesco. Recommendations have been that highlights the development of brand loyalty towards
Tesco with emphasis on maintaining proper relationship with customers. At the same time
application of the elements of marketing mix, need to be taken into consideration.

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CHAPTER 1: INTRODUCTION
1.1 Research background
The background of the research is based on the concept that is involved in relationship
marketing at Tesco, Enfield, UK. In the words of Pappu and Quester (2016), relationship
marketing is said to have caused a positive impact on brand loyalty among the customers
within the retail industry. Relationship marketing is focused on the marketing approaches and
procedures that are undertaken by Tesco (Tesco.com 2019). This is done to ensure and
establish good relationships with the customers and understand the need, demands and
behaviours (Tesco.com 2019). The effective of relationship marketing is that it can assist in
the development of a loyal relationship between organisations and the customers.
However, as stated by Albert and Merunka (2013) along with this, relationship
marketing can instigate a company to take up initiative to move towards enhancing sales as
well as profitability. This can be catapulted to gaining the trust and loyalty of the customers
towards a brand. Dolbec and Chebat (2013) are of the opinion that the initiative can help to
influence the buying behaviours on a large scale and ensure that high sales and revenue
generation both exist simultaneously.
1.2 Statement of the problem
The problem statement that can be associated with the research is that the lack of
proper relationship marketing approaches may have a negative impact on the brand loyalty at
Tesco. Gaining the trust of the customer need to be taken into consideration by Tesco.

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1.3 Aim of the research
The main aim of the research is to evaluate how the relationship marketing at Tesco,
Enfield, UK can create an impact on the way customers gain trust and become loyal towards
the brand.
1.4 Research objectives
The research objectives include:
 To identify the probable impact of relationship marketing on the loyalty of a brand for
Tesco, Enfield, UK
 To evaluate various approaches undertaken by Tesco, UK to improve the level of trust
among the clients through higher customer satisfaction
 To assess the probable impact of relationship marketing on the way more audiences in
different market segments have been reached by Tesco, UK
 To recommend various measures needed to improve the relationship marketing
effectiveness for drawing in more customers and generate higher revenue,
furthermore attain competitive advantage
1.5 Research questions
The research questions include:
 What is the impact of relationship marketing on the brand loyalty at Tesco, Enfield,
UK?
 How can the various approaches undertaken by Tesco, UK lead to better
understanding of consumers’ needs and ensuring customer satisfaction?
 How effective are the relationship marketing approaches in reaching wider groups of
audiences in multiple market segments?

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 What suitable recommendations are provided for enhancing the efficiency of
relationship marketing and to ensure higher revenue generation and competitive
advantage in business?
1.6 Research hypothesis
The research hypothesis includes:
H0: Relationship marketing does not have any severe impact on the brand loyalty at Tesco,
Enfield
H1: Relationship marketing has a severe impact on the brand loyalty at Tesco, Enfield

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CHAPTER 2: LITERATURE REVIEW
2.1 Concept of relationship marketing
Relationship marketing can be defined as a form of market development that is done
through direct response marketing campaign. According to Agnihotri et al. (2016), the focus
of relationship marketing is on the development of customer satisfaction and retention instead
of any focus on sales transactions. At the same time, Balakrishnan, Dahnil and Yi (2014) the
effectiveness of relationship marketing is that it has been helpful in maintaining a positive
relationship with the customers along with maintaining effective communication regarding
feedback during pre purchase or post purchase situation. Yeh, Wang and Yieh (2016) stated
that the difference that relationship marketing has with other forms of marketing is that it can
recognise the long-term value of customer relationships.
The advantage gained from relationship marketing is the fact it extends
communication beyond intrusive advertisement and sales promotional messages. According
to Dwivedi (2015), relationship marketing has been in effective after the growth of internet as
well as mobile platforms. In the modern day, evolution of the concept has taken place due to
the evolution of technology as well as social and communicative communicational channels.
Farjam and Hongyi (2015) are of the opinion that relationship marketing extends to include
marketing efforts that include PR as well as social media and application development.
Relationship marketing refers to an arrangement in which buyers and sellers pose interest in
conducting satisfying exchanges.
2.2 Factors affecting relationship marketing
Market knowledge: Relationship marketing is about knowing the demands and needs
of the customers as well as gaining market knowledge. According to Cho, Fiore and Russell