Factors Affecting Customer Loyalty in UK Retail Sector: A Study on Waitrose Limited

This report investigates the factors affecting customer loyalty in the context of UK retail sector, with a focus on Waitrose Limited. It includes a literature review, methodology, findings and analysis, and recommendations for improving customer loyalty.

INQUIRY BASED PROJECT

INTRODUCTION...........................................................................................................................1
Background:..............................................................................................................................1
Aim...........................................................................................................................................1
Objectives.................................................................................................................................1
Significance...............................................................................................................................1
Rationale ..................................................................................................................................1
Structure:...................................................................................................................................2
LITERATURE REVIEW................................................................................................................2
METHODOLOGY..........................................................................................................................2
Research type............................................................................................................................3
Research approach....................................................................................................................3
Data collection..........................................................................................................................3
Sampling...................................................................................................................................3
Data analysis ............................................................................................................................3
Reliability & validity................................................................................................................3
FINDINGS AND ANALYSIS........................................................................................................3
DISCUSSION:.................................................................................................................................9
CONCLUSIONS............................................................................................................................10
Recommendation....................................................................................................................11
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................14

Topic: To investigate factors affecting customer loyalty in the context of UK retail sector:
A study on Waitrose Limited
INTRODUCTION
Background:
In the current era, retail sector is facing growth and development which requires firm to
pay attention on assessing factors that impact organizational progress. Retail sector of UK is
experiencing rapid growth due to accelerated shift to online practices which helps in building
customer loyalty in order to incline sales growth. Current trend in retail sector includes
personalized shopping experience, application of AI and BI, online shopping behavior, afdter
sales service,etc. For the present report Waitrose Ltd has been selected which is one of the
supermarket that is deals in offering groceries to targeted audience. The present report will
shed light on assessing factors affecting customer loyalty of specified organization.
Aim
The aim of current research is to determine factors influencing customer loyalty impact on
Waitrose Limited’s
Objectives
To assess the understanding about concept of customer loyalty.
To determine factors affecting customer loyalty within retail sector
To identify challenges occurring in Waitrose Limited for attaining customer loyalty
To recommend strategies for improving customer loyalty through managing different factors
Significance
The particular chosen topic regarding assessing influence of customer loyalty in
increasing sales performance will be help in gaining deeper knowledge. This can be beneficial
for specified company, similar organizations operating in mentioned industry and learners
willing to gain knowledge regarding the same.
The reason behind conducting this research is to ascertain how factors affect customer
loyalty of Waitrose Limited. It will permit in gaining deeper knowledge regarding factors
affecting customer loyalty & challenges arriving in attaining same.
1

Structure:
Introduction : aim , objectives and significance & rationale.
Literature review: critical assessment of journals and books
Methodology: Procedure for executing research
Findings and analysis: discussion of findings
Conclusion & recommendation: conclusion of findings & recommendations.
LITERATURE REVIEW
According to Budur and Poturak (2021) customer loyalty is concerned with relationship
between company and clients that motivates buyer to choose products offered by specified
firm. There are various factors which helps company to gain customer loyalty which includes
expectation, personal relationship, rewards, reputations, communication methods, etc. In against
to this, El-Adly (2019) depicted that it is pattern which is used by firm for engaging,
purchasing, etc. There are number of benefits which are attained by company from customer
loyalty factors. This involves monetary aspects that impact this element such as quality, price,
cost of benefit, etc.
In the views of Srivastava and Rai (2018) there are various challenges which are faced
by firm in order to attain but crucial aspects includes limited customer segment engagement
and lack of differentiation. It highly affect business ability to meet this benefit which can
incline profitability. On contrast to this, Iglesias and et.al., ( 2020) the major issues that need
to be highlighted includes poor consumer purchasing power and political instability. It becomes
essential to pay attention on resolving this so that customer loyalty can be derived. In against to
this, Pekovic and Rolland (2020) unequally and untrained employee performance is one of
the crucial element that contribute in creating barriers for enterprise to achieve higher customer
engagement & commitment.
Research type
There are two methods such as quality and quantitative for conducting research. For the
present research reports regarding trend in respect to factors affecting customers loyalty in
retail sector qualitative type is useful as it is theoretical concept.
2

Research approach
It is distinct between two such as interpretivism and positivism. In present study interpretivism
is suitable as investigating factors influencing customer loyalty is qualitative type of research
which requires interpretivism approach.
Data collection
Primary and secondary are two methods for gathering data in order to obtain crucial
information. In order to get information regarding elements that play role in affecting loyalty of
buyers both methods has been utilized. In primary questionnaire has been prepared for doing
survey and articles, books, journals, etc taken into consideration for developing brief thesis.
Sampling
The samplings size is part of total population that is selected for conducting research. In
present study regarding assessing influence in prevailing trend of customer loyalty. 10
customers’ of Waitrose Ltd has been selected by random sampling technique for ascertaining
affect of factors in impacting loyalty.
For analyzing response gathered from customer thematic perception technique can be
used. It is appropriate for qualitative type of research executed for assessing impact factors
affecting buyers loyalty.
Reliability & validity
Proper copyright sources has been used to maintain reliable study and for making
valid research.
FINDINGS AND ANALYSIS
Theme 1: 0-5 years have been customer are connected with organization
Particulars No of
respondents
% of
respondents
0-5 year 5 50%
5-10 years 1 10%
10-15 years 1 10%
15-20 years 1 10%
3

20 and above years 1 10%
Total 10 100%
Theme 2: Strongly agree customer are satisfied with the products offered by company
Particulars No of
respondents
% of
respondents
Agree 2 20%
Strongly agree 5 50%
Neutral 1 10%
Strongly disagree 1 10%
Disagree 1 10%
Total 10 100%
4

Theme 3: quality is most likely factor about offered products and services
Particulars No of
respondents
% of
respondents
Price 2 20%
Quality 6 60%
Quantity 1 10%
All of the above 1 10%
Total 10 100%
5

Theme 4: very likely is customers to expand use of products and services
Particulars No of
respondents
% of
respondents
Very likely 4 40%
Neutral 2 20%
Somewhat likely 1 10%
Not likely 3 30%
Total 10 100%
6

Theme 5: Quite well customer support team help you to resolve problem arising with
usage of products
Particulars No of
respondents
% of
respondents
Very well 1 10%
Quite well 5 50%
Natural 1 10%
Worse 1 10%
worst 2 20%
Total 10 100%
7

Theme 6: customers have convinced others to patronize our product
Particulars No of
respondents
% of
respondents
Yes 8 80%
No 2 20%
Total 10 100%
Theme 7: yes customers deciding to continue purchasing with us in future
Particulars No of % of
8

respondents respondents
Yes 6 60%
No 4 40%
Total 10 100%
DISCUSSION:
From the above, it can be interpreted that 0-5 years is mostly voted category in respect
have been customers of specified organization as selected by 50% of total sampling size. In
addition to this, it can be articulated that 10% of respondents have voted for 5-10, 10-15, 15-20
and 20 & above years. This can be validate by opining of Juanamasta and et.al., (2019) that
customer loyalty is highly dependent on the number of years clients have been customer of
particular organization. It helps assessing customer behaviour & attitude towards company. It
can be articulated that 50% of clients are strongly agree regarding being satisfied with offered
goods by specified enterprise. 20% of buyers are agree and on the other side, 10% of vote for
each category like neutral, strongly agree and disagree is found. This can be justified by
Hudaya, Djumarno and Djubaedah (2021) that customers are need to be satisfied with offerings
of firms in order to meet loyalty and commitment criteria. It aids in ascertaining factor that
contribute in achieving customer loyalty for brand.
9

From the above data presented, it can be articulated that most likely factor about
offered goods & services by Waitrose Ltd is quality as selected by 60% of total sample size. In
addition to this, price, quantity and all of the above of has been chosen by 20, 10 and 10%
customer respectively. It can be justified by looking at views of Soe and Nuangjamnong (2021).
quality is widely considered factor by buyers while purchasing good & services. It aids in
gaining ability in accomplishing objective of retaining customers through focusing on
prevailing pattern in sector. Customers are very likely to expand use of products & services.
On the basis of collected information it can be specified that there customers support
team help to resolve problems associated with delivered goods & services. Buyers have
convinced others to patronize company’s products and are continuing to purchasing with
company with future. By analyzing the gathered information it can specified that prevailing
customers from which data has been obtained are possessing brand loyalty characteristics. The
underlying fact regarding this is associated with that there are various factors which aids in
recognizing that customer are getting influenced from this or not. From the evaluation it can be
specified that factors like year of connection, quality of products, customer support team
efforts, etc play significance role in building & impacting loyalty of buyers.
This can be supported by reviewing opinion of Eid, Robin and Wierdak (2021)
that there are number of components which are required to be taken into consideration by firm
for having loyalty from buyers. Each factor play significance role in contributing firm to
accomplish its objective of retaining customers. It includes value of goods, customer
experience, understanding, innovative service, personal relationship, reputation of firm ,
reward system, etc. In order to cope up with prevailing retail trend like frequent changing of
taste & preferences, increasing competition, etc aid in gaining benefits like increased revenue,
profitability, etc. It an be depicted that organization is having sufficient ability to derive
loyalty form buyers.
CONCLUSIONS
From the above report it can be interpreted that current trends in retail sector need to be
taken into consideration for assessing ability to gain competitiveness. There are few current
trend that are needed to highlight in making sure that business is able to cope up with
changing circumstances for attracting & retaining customer. The current study has involved
present rends prevailing in retail market includes emergence of digital practices, application
10

of artificial intelligence, higher customer experience, after sales service, etc so that customer
loyalty can be obtained. Present report has comprised structure, objectives, significance and
rationale for specifying reason behind conducting research. Current study has involved
literature review and research methodology in respect to get theoretical knowledge and
systematic process for assessing impact of factors affecting customer loyalty. To accomplish
objectives survey has been conducted which has helped to understand that there are variety
of factors that are need to taken into practice so that higher customer loyalty to get
sustainable position can be derived. It comprises effective customer support team, quality of
products, higher customer satisfaction, etc. in turn ability to get loyalty from customer can be
obtained.
Recommendation
There are various ares in which effective course of action can be executed by specified firm so
that positive outcome can be derived.
 It is suggested to Waitrose Limited to execute effectual market analysis technique so that
proper information regarding the prevailing current retail trend so that adequate actions to
attract customers in turn accomplishing objectives of business can become possible. The
main reason behind this is that business environment keeps on changing which require firm
to be prompt & effectual in decision making process so that greater customer satisfaction
can be provided to clients.
 This is suggested to specified company to adopt artificial & business intelligence for using
data to take strategic decision in turn higher productivity & stability in retail sector can be
achieved. By applying these actions company can optimize available resources for
attaining objectives like positive brand image, capabilities to coordinate with changing
circumstances, etc. These can contribute in meeting objectives of overcoming challenges
arising in developing loyalty among customers.
 It is advised to Waitrose Limited to pay attention on developing effectual communication
system so that valuable and reliable information regarding offered goods, post sales
service, etc can be communicated among clients so that trustworthiness can be achieved.
 Taking continuous feedback as well share in improving relationship with customers via
making relevant changes in offerings so that higher capability to cope with expectations of
customers can be attained. This creates insights about company’s concerning feature
11

respect to customers needs & expectations in turn positive impact on buyers fro
increasing sales & profitability can be executed. Matching with customer expectations
highly allow to derive significant ability to cope up with prevailing market trends in turn
leading position in industry can be achieved.
12

REFERENCES
Books and Journals
Budur, T. and Poturak, M., 2021. Employee performance and customer loyalty: Mediation effect
of customer satisfaction. Middle East Journal of Management. 8(5). pp.453-474.
El-Adly, M.I., 2019. Modelling the relationship between hotel perceived value, customer
satisfaction, and customer loyalty. Journal of Retailing and Consumer Services, 50,
pp.322-332.
Srivastava, M. and Rai, A.K., 2018. Mechanics of engendering customer loyalty: A conceptual
framework. IIMB management review, 30(3), pp.207-218.
Iglesias, O. and et.al., 2020. Co-creation: A key link between corporate social responsibility,
customer trust, and customer loyalty. Journal of Business Ethics, 163(1), pp.151-166.
Pekovic, S. and Rolland, S., 2020. Recipes for achieving customer loyalty: A qualitative
comparative analysis of the dimensions of customer experience. Journal of Retailing and
Consumer Services, 56, p.102171.
Juanamasta, I.G. and et.al., 2019. The role of customer service through customer relationship
management (Crm) to increase customer loyalty and good image. International Journal
of Scientific and Technology Research, 8(10), pp.2004-2007.
Hudaya, A., Djumarno, D. and Djubaedah, S., 2021. ANALYSIS OF FACTORS AFFECTING
CUSTOMER SATISFACTION TO GET CUSTOMER LOYALTY. Dinasti
International Journal of Digital Business Management, 2(5), pp.783-793.
Soe, S.S. and Nuangjamnong, C., 2021. Factors Affecting Customer Loyalty towards Hearty
Heart Cosmetics: A Case Study Local Brand in Yangon, Myanmar. International
Research E-Journal on Business and Economics ISSN 2773-9406 (Online), 6(1), pp.46-
66.
Eid, M.B.A.H., Robin, R. and Wierdak, N., 2021. An empirical investigation of the factors
affecting customer lifetime value. International Journal of Quality & Reliability
Management.
13

APPENDIX
1. For how long you have been customer of our organization?
 0-5 year
 5-10 years
 10-15 years
 15-20 years
 20 and above years
2. Are you satisfied with the products offered by company?
 Agree
 Strongly agree
 Neutral
 Strongly disagree
 Disagree
3. What do you like most about offered products and services?
 Price
 Quality
 Quantity
 All of the above
4. How likely you choose to expand use of products and services
 Very likely
 Neutral
 Somewhat likely
 Not likely
5. How well customer support team help you to resolve problem arising with usage of
products?
 Very well
 Quite well
 Natural
 Worse
 Worst
6. Have you to convinced others to patronize our product?
14

 Yes
 No
7. Are you deciding to continue purchasing with us in future ?
 Yes
 No
8. Do you have any suggestions?
.............................
15