Impact of Relationship Marketing on Brand Loyalty at TESCO

This research explores the impact of relationship marketing on brand loyalty at TESCO, Enfield, UK. It examines the approaches undertaken by TESCO to improve trust and loyalty among customers and assesses the effectiveness of relationship marketing in reaching wider market segments. The research aims to provide recommendations for enhancing relationship marketing effectiveness and generating higher revenue.

Running head: MANAGEMENT
Management
(Impact of relationship marketing on brand loyalty at TESCO)
Name of student
Name of University
Author note

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Table of Contents
Chapter 1: Introduction..............................................................................................................3
1.0 Introduction to topic.........................................................................................................3
1.1 Rationale of research........................................................................................................3
1.2 Aim of research................................................................................................................3
1.3 Research objectives..........................................................................................................3
1.4 Research questions...........................................................................................................3
Chapter 2: Literature review......................................................................................................4
Chapter 3: Research methodology.............................................................................................6
3.0 Research methods.............................................................................................................6
3.1 Sampling technique..........................................................................................................6
3.2 Data collection..................................................................................................................7
3.3 Research ethics.................................................................................................................7
4. Research Timeline..................................................................................................................7
5. Budget....................................................................................................................................8
References..................................................................................................................................8

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The impact of relationship marketing on brand loyalty at TESCO (Enfield)
Chapter 1: Introduction
1.0 Introduction to topic
The research topic introduces the concepts of relationship marketing at Tesco,
Enfield, UK, which has helped in creating a positive impact on brand loyalty among the
customers within the retail industry. The relationship marketing centres on the marketing
approaches and procedures undertaken by Tesco, UK to establish good relationships with the
clients and understand their behaviours, needs and preferences (Tesco.com 2019). This will
not only help in forming stable relationship between business and its clients, but can also
facilitate the company to move in the direction from where the actual sales shall be made,
furthermore make the clients gain trust and loyalty towards the brand. This can furthermore
influence their buying behaviours largely and lead to higher sales and revenue generation too.
1.1 Rationale of research
The rationale of the research represents the problem of the research considering the
fact that with the lack of proper relationship marketing approaches, there will be lack of
management of proper relationships between the customers. Not only the business will be
incapable of get influenced due to poor communication with the business organisation. Due
to this, there will be poor relationship between the business and customers, which can
degrade the image and reputation of the company, thus failing to care about the needs of
people (Dwivedi 2015). This may also lead to poor profit margin, lack of flexibility in setting
prices of products and poor reach to wider audience’s due to lack of trust and loyalty towards
the brand among them.

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1.2 Aim of 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.
1.3 Research objectives
Objective 1- To identify the probable impact of relationship marketing on the loyalty of a
brand for Tesco, Enfield, UK
Objective 2- To evaluate various approaches undertaken by Tesco, UK to improve the level
of trust among the clients through higher customer satisfaction
Objective 3- To assess the probable impact of relationship marketing on the way more
audiences in different market segments have been reached by Tesco, UK
Objective 4- To recommend various measures needed to improve the relationship marketing
effectiveness for drawing in more customers and generate higher revenue, furthermore attain
competitive advantage
1.4 Research questions
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?
What suitable recommendations are provided for enhancing the efficiency of relationship
marketing and to ensure higher revenue generation and competitive advantage in business?

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Chapter 2: Literature review
According to Huang et al. (2014), the relationship marketing has always been
considered as a major approach to marketing, which has not only helped the business to
communicate with the customers, but also has helped in understanding their needs
preferences. This has been effective not only for maintaining positive relationships with the
clients, but also has been effective for managing good communication with them during the
pre-purchase and post purchase situations (Huang et al. 2014). The relationship marketing, on
the other hand, as stated by Balakrishnan, Dahnil and Yi (2014) also helped in attracting new
customers from different market segments and retained he existing customers largely too.
This is considered as an effective way of marketing that facilitates establishment of long term
relationships with the customers through communication and resolving conflicts or
misunderstandings associated with the products and services to be delivered to the clients
within the retail industry in United Kingdom (Balakrishnan, Dahnil and Yi 2014). Due to
this, the business organisations have been concerned with the customers’ changing tastes and
preferences and by fulfilment of those through relationship marketing, the customers have
gained the trust on the company and became loyal customers too. These are the major
essential components that constitute the relationship marketing and are responsible for raising
the level of satisfaction among the clients, further led to better sales generation and higher
revenue generation, thereby aiming to attain competitive advantage in business with much
ease and efficiency (Dolbec and Chebat 2013).
As stated by Das (2014), not only the satisfaction of customers is sufficient for the
success of an organisation, especially within the retail industry, but also there is need to
establish a sense of trust and loyalty among the customers. This has ensured the customers to
become loyal customer and gain the trust on the company, thereby. Believed the fact that the
company had remained aligned with the goals of meeting customers’ needs and making

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changes accordingly for catering their changing tastes and preferences too (Das 2014). This
has directly influenced the consumer buying behaviours and made them encouraged to buy
products and services from the company. Albert and Merunka (2013) argued that by putting
efforts to relationship marketing, customers have been associated with the product of that
specific brand for long time and it has created positive impacts on the improvement of
financial and market performance (Albert and Merunka 2013). It has also enabled the
business organisations, following the relationship marketing approaches, to remain
trustworthy, fully committing to the services, managing reliable and effective communication
and ensured prevention of any kinds of conflicts and misunderstandings among the customers
through management of improved communication with them via emails, chat and through
social media platforms (Francisco-Maffezzolli, Semprebon and Prado 2014).
Figure: Keller’s brand equity model (Francisco-Maffezzolli, Semprebon and Prado 2014)
The brand equity model is applied to understand what the brand actually is, what foes
the brand signify, response to brand resonance. Based on the model, Cho, Fiore and Russell
(2015) stated that identity of brand is essential and to understand the customers, about their
needs and how the business and clients are interrelated. The marketing approaches are
assessed by brands at first to check whether the needs of customers are addressed or not and
then creating content to facilitate marketing efficiency and draw in clients from different

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targeted market segments. The second stage included determination of meaning of brand and
focusing on how the customers’ needs can be met. There are various aspects that are found to
be impacting the way customers slowly learn to establish trust and become loyal customers
towards the brand (Cho, Fiore and Russell 2015). The customers are attached to specific
brands and service providers when they have found that the brand successfully managed to
fulfil the needs and preferences of the customers. The sales persons of the company must be
trained to achieve the desired skills, knowledge and expertise, which are essential for
building relationships with the customers and talk with them politely to deliver a solution to
the problem, furthermore ensure meeting the needs of clients and creating contact through
interaction by social media platforms and email too (Francisco-Maffezzolli, Semprebon and
Prado 2014). The social media involvement has highly encouraged the service providers to
maintain close contact and communication with the customers, which is required to
understand the demands and expectations of clients with ease. This has also helped in
responding to the complaints and feedbacks of customers much more easily.
Buil, Martínez and De Chernatony (2013) on the other hand, argued that perceived
quality often caused issues for the brand and thus brand should focus on the emotions of
customers and make sure that their needs are ad6dressed properly to ensure client
satisfaction. There are many companies within the retail sector, which have made the best
products available for the customers rather than providing additional offers and discounts
through focusing o the management of quality the most. The good quality products and
services are responsible for fulfilling the customers’ desires and preferences and create a
positive emotional state among their minds, which made them gain the trust on the brand
(Buil, Martínez and De Chernatony 2013). Once the customers are provided with the right
products and services and they have been satisfied, they have learned to value the customers’

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services and in return, remained committed to the brand irrespective of the price of products,
location of the business and availability of any substitute products in the marketplace.
During the final stage of the model, brand resonance has been focused on, and Farjam
and Hongyi (2015) suggested the fact that establishing trust and loyalty has helped in
managing long term relationships with the customers, which is necessary for gaining a bigger
market share of the financial market. The companies must remain committed to the services
and ethical business management, furthermore prioritise on the communication managed
timely and appropriately along with focus on resolving the conflicts to prevent any
unnecessary loss to the customers (Farjam and Hongyi 2015). According to Kladou and
Kehagias (2014), the customers who returned to making purchases from the brand, have been
provided with additional offers and discounts. This has been signs of acknowledgement to the
customers that they have appreciated the business, which, in turn, has led to enhanced trust
and loyalty. The companies managed social networking websites where the various features
and characteristics of products are updated, so that the customers can know about those,
which is key to successful development of relationships and remaining closely associated
with the brand (Kladou and Kehagias 2014). Letting the customers provide their reviews,
opinions and feedbacks has also helped the brand to make necessary changes to the products
and services, thus identified the concerns of customers properly and mad sure to deliver
values for meeting the expectations of customers largely.
Chapter 3: Research methodology
The methodology chapter includes the various methods of research considering the
approaches, philosophies along with the sampling procedures, collection and analysis of data
and information too.

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3.0 Research methods
The philosophies of research are critical to the success of research and it has been
possible with the acqusitions of information and knowledge and determined the nature and
source too. Because of the acquiring of primary and secondary data, the researcher has
developed highly structured designs and even worked with large sample sizes, though
considering the scientific thinking and logical reasoning as well. Based on the research scope
and nature, the positivism research philosophy will be the most suitable for conducting the
research effectively (Bell, Bryman and Harley 2018).
Among the exploratory, explanatory and descriptive research designs, the exploratory
research design is based on the previous studies and existing theories whereas the explanatory
research design determined the cause and effect of the research, which may not be predictable
as well. The descriptive research design will assist the researcher to conduct research in
details, furthermore ensure predicting the outcomes in the future and aim to create link
between the dependent and independent variables (Zikmund et al. 2013). Thus, the
descriptive research design will allow for linking the variables, where the brand loyalty, i.e.,
the dependent variable is dependent on the independent variable, i.e., the relationship
marketing, which is the independent variable here.
3.1 Sampling technique
The random sampling procedure helped in selection of samples randomly and
gathered sale data and information. The most suitable sampling method has been though the
non-probability convenient sampling method, which created ease for the researcher to arrange
a suitable time for the manager of the organisation, which can be convenient for him or her to
participate in the interview session and provide useful views and opinions furthermore
(Fowler Jr 2013). This has facilitated the collection of qualitative data and information and

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ensured keeping the information confidential too. The sample size has been selected as 40
customers and 5 managers of the organisation.
3.2 Data collection
The primary data constitute the qualitative and quantitative data where the quantitate
data are the responses of respondents provided by them in the survey questionnaires
distributed whereas the qualitative data consist of the information in the form of responses of
managers. The secondary data, on the other hand, would be collected by assessing secondary
sources such as journals, articles, documents and newspapers consisting of information about
relationship marketing (Sekaran and Bougie 2016).
The analysis of data will be done with the use of SPSS tool.
3.3 Research ethics
The research materials and information are kept confidential to prevent loss of data
and information. None of the respondents were forced to take part in the research or survey
process. The respondents were even informed that the research will be done for academic
purposes and not to draw any sort of commercial benefits. Discrimination is prevented and
every respondents have been treated fairly and equally (Tesco.com 2019).
4. Research Timeline
Main activities/ stages Month
February
Month
March
Month
April
Month
May
Month
June
Month
July
Selection of topic 
Collecting data from
secondary sources
 
Constructing the research
layout


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Literature review   
Development of research
Plan
 
Selection of Appropriate
Research Techniques
 
Primary data collection  
Analysis & Interpretation of
Data which are collected
 
Conclusion 
Development of Draft 
Final Work submission 
5. Budget
References

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Albert, N. and Merunka, D., 2013. The role of brand love in consumer-brand
relationships. Journal of Consumer Marketing, 30(3), pp.258-266.
Balakrishnan, B.K., Dahnil, M.I. and Yi, W.J., 2014. The impact of social media marketing
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Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university
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Buil, I., Martínez, E. and De Chernatony, L., 2013. The influence of brand equity on
consumer responses. Journal of consumer marketing, 30(1), pp.62-74.
Cho, E., Fiore, A.M. and Russell, D.W., 2015. Validation of a fashion brand image scale
capturing cognitive, sensory, and affective associations: Testing its role in an extended brand
equity model. Psychology & Marketing, 32(1), pp.28-48.
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Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
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Tesco.com. (2019). Tesco :: Online Groceries, Banking & Mobile Phones. [online] Available
at: https://www.tesco.com [Accessed 29 Mar. 2019].
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