Consumer Behavior Assignment: Tesco
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Added on 2020-06-04
Consumer Behavior Assignment: Tesco
Added on 2020-06-04
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An analysis on the impact ofintroducing loyalty card system oncustomer purchase behaviour - A Casestudy of Tesco stores, London, UK1
Table of ContentsBackground of study........................................................................................................................3Research problem.............................................................................................................................3Research purpose.............................................................................................................................4Aims and objectives.........................................................................................................................4Literature review..............................................................................................................................4Propose Research methodology.......................................................................................................6Significance of the research.............................................................................................................7Research limitation..........................................................................................................................8Project schedule...............................................................................................................................8Chapter outline.................................................................................................................................9Reference.......................................................................................................................................112
Background of study In 21st century there are many factors of loyalty card program that can impact customerloyalty such as discounts, preferential treatment, special offer etc. At the customer loyalty ishighly depended on the buying behaviour of an individual and there are many factors that havegreater influence on the customer’s base. In accordance with the negative impact, the rate ofadopting rate is very low.A loyalty program is everywhere in business as it plays a significant role in order to changecustomer purchase behaviour. Customers interact with them multiple times every day for thedifferent purpose whether they want to buy grocery item, ticket book, paying cell phone bill etc.However, it can be stated that firm becomes convinced that it is possible to buy customer loyalty.Customer loyalty program is become proven method for growth and sustain market share. It isgaining popularity in the retail industry as because of its ability to provide to its customerincentives and different types of benefits such as discount or redeemable prize (Berezan, Raab,Tanford and Kim, 2015). It assists in retaining customers for a long time and to do business withexisting customers lead to reduce the market cost. If the customer is loyal to the firm then it doesnot switch to other brand and make more purchase than faithful ones. A well-designed programserved as the competitive advantage for a firm which supports company in increasing sales.Instead of this company can easily build long-term relationship which forms the basis of loyaltyprogram. The present research is based on analysis the impact of introducing loyalty card systemon customer purchase behaviour of Tesco, UK. Customer loyalty system benefits bothcompanies as well as customers. Customers are provided different types of reward or discountwhich encourage them for repeat purchase and it benefits the firm (Steinhoff and Palmatier,2016). In this research the way customer behavior gets impacted through introducing a loyaltyprogram by the company will understand. Different types of loyalty program that benefits theorganisation and customers will be identified. Research problem There is the rapid increase in the competition in the retail market and there are many retailcompanies who offer various types of loyalty program for its regular customers in order toincrease sales and profit. Therefore, it becomes important for Tesco retail store of UK to focuson introducing loyalty program in order to survive in the competitive market. Loyalty program3
encourages customers to change their single purchasing decision into a multiple purchasing(Baloglu, Zhong and Tanford, 2017.). The present research is the attempt to investigate theimpact of introducing loyalty card system on customer purchase behaviour of Tesco. For thispurpose, different types of loyalty program which can be introduced by the firm will be analysedand its impact on customer purchasing behavior. This research provide assistance to the Tescocompany to get understand different types of loyalty program and introduced them in aneffective manner. Research purpose The main purpose of this study is to obtain a deep understanding of the impact ofintroducing loyalty card system on customer purchase behavior of Tesco. This research will helpin gathering information related to the different types of loyalty program that can be used by theretail company for influence customer purchasing behavior. Customer purchasing behaviorchanges and there are different factors that lead to change purchasing behaviour. The presentresearch will help in gaining depth information related to the factors that can impact customerbehaviour. Aims and objectives Aim: An analysis on the impact of introducing loyalty card system on customer purchasebehaviour - A Case study of Tesco stores, London, UKObjectivesTo understand the benefits of loyalty card system for customers.To analyse the impact of loyalty cards system on customer purchase behaviour of TescoTo determine the relationship between loyalty card and customer loyalty.To recommend strategies for introducing loyalty card successfully by Tesco companyResearch questionsWhat are the benefits of loyalty card system for customers.What are the predicted key competencies for 21st century loyalty card schemeHow are these similar or different from other companies loyalty cardLiterature review According to the view of Bowen and Chen McCain, (2015) a loyalty program is thestructured marketing strategy which is designed by the firm to motivate the consumer to make4
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