The Influence of Service Quality on Customer Loyalty in Grocery Food Retailing in the UK: A Case Study of ASDA

Dissertation
(The influence of service quality on customer loyalty in grocery food retailing in
the UK: A case study of ASDA)

Contents
INTRODUCTION...........................................................................................................................3
Overview of the research........................................................................................................3
Background of the organisation..............................................................................................3
Rationale for the research.......................................................................................................3
Significance of the research....................................................................................................3
Problem statement..................................................................................................................3
Research aim..........................................................................................................................3
Research Objectives...............................................................................................................3
Research questions.................................................................................................................3
LITERATURE REVIEW................................................................................................................3
RESEARCH METHODS................................................................................................................3
RESULTS........................................................................................................................................3
DISCUSSION..................................................................................................................................3
CONCLUSION and RECOMMENDATIONS...............................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Overview of the research
Service quality and customer loyalty both are significant factors for an organizational
development goals and also for the development of organizational behaviour. Customer loyalty
can be achieved in matters such as service quality, sales knowledge and customer dealing
effectively. The quality of service is critical to the survival as well as profitability of an
organization as in the present time customer looking for quality more instead of price they paid.
Retailing business plays vital role in providing high customer experience to customers and gain
profitability (Diallo and Seck, 2018). It is important for organization nowadays to provide
quality service to its customers in order to retain and engage them for longer time period.
Customer loyalty is sometimes seen in context of dealing with customer complaints and
problems. Most of the companies make use of customer retention and loyalty strategies in order
to retain at marketplace and attain competitive advantage as well. There is positive impact of
good service quality on the customer loyalty and vice versa. Apart from this, organizations
ensure that their customers is being provided with high quality products as well as services as it
leads to repeat purchase and increasing performance of a company. The main objective of this
study is to identify the impact of service quality on customer loyalty within grocery food
retailing in UK. The present study is categorized into different sections as the first sections
introduces the research aim, objectives, significance and background as well. In the second
section, a literature review pertaining to research questions is discussed. In the third section, the
research method used by researchers along with their justification is elaborated. In the last, some
of the recommendations will be provided to the higher authorities of company for providing high
quality of service and increased number of loyal customers towards organization.
Background of the organisation
For the present study, Asda is taken into consideration as a base company. It is a British
supermarket chain that is headquartered in England, United Kingdom. The company was
established in year 1949 and at present it provide products and services in more than 632
locations globally. The company offer products and services such as grocery, general
merchandise, financial services and so on. Asda has more than 1,65,000 talented and skilled
staff members which is one of the reason of its success and growth at marketplace. The

Company is facing issue for imposing themselves while due to having stronger position and
monopoly in market service to loyal customer. Along with this, the higher authorities of Asda is
also facing issue as there is decline in number of loyal customers. For this, the study is conducted
that identifies relationship among service quality and customer loyalty within organization.
Rationale for the research
One of the main reasons to conduct the study is to identify the impact of service quality on
customer loyalty in grocery food retailing in UK. In addition to this, it help in gaining insight
about the various attributes of customer loyalty and how organizations focus on providing high
quality experience to customers in order to retain and gain success at marketplace. Apart from
this, it help researcher in both personal and professional context. With reference to professional,
it help in gaining insight about retail industries and the strategies adopted by them for providing
quality service in UK. In context to personal, it help in improving as well as learning skills such
as time management, data analysis, problem solving, data collections and many more.
Furthermore, it also help investigator to conduct future studies systematically and properly and
also to grab opportunities in an appropriate manner.
Significance of the research
The main purpose of this study is to identify the relationship among service quality and
customer loyalty within the retail industry by which companies can easily come to know about
how to provide high quality to customers and retain them for longer time period. In addition to
this, investigation has been conducted because the company is required to pay attention towards
its loyal customers and to provide quality of service which is one of the important factor in order
to attain competitive advantage and fight with rivals prevailing at marketplace. The present study
also states about the influence of service quality on customer loyalty which make them aware
about the changes that are to be made in order to increase number of loyal customers. The report
will also help in gaining insight about key attributes of customer loyalty and also providing
recommendations to company for improving its service quality which leads to increase in
profitability and productivity of respective organisation.
Problem statement
The problem which is identified that respective organization is facing issue for imposing
themselves because of having high monopoly at market and stronger positions over their cheap