Customer Relationship Management and Buying Behaviour: A Tesco Study

This research project investigates the impact of customer relationship management (CRM) on consumer buying behavior within the retail sector, focusing on Tesco PLC. The report begins with an introduction outlining the study's aims and objectives, followed by an examination of relevant literature and key factors influencing research project selection. Task 1 formulates research specifications, reviews literature, and produces a research plan. Task 2 focuses on matching resources, conducting the research investigation using an inductive approach and interpretivism philosophy, and recording data. Task 3 involves research evaluation, interpreting and analyzing results, and making recommendations for further consideration. The methodology includes exploratory research design, qualitative data collection via questionnaires distributed to Tesco PLC customers, and a sample size of 50 respondents. The report details the research process, resource allocation, and a timeline for completion. The findings aim to analyze the impact of CRM on consumer behavior, identify key factors influencing customer relationships, and recommend strategies for Tesco PLC to enhance its CRM practices. The research utilizes both primary and secondary data sources, including a critical review of existing literature on CRM and customer buying behavior, and employs a random sampling technique to gather customer responses.

Research Project
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Formulate and recording of possible research outline specifications....................................3
1.2 Identify the factors that contribute to the process of research project selection....................3
1.3 Undertake a critical review of key references........................................................................4
1.4 Produce a research project specification................................................................................5
1.5 Produce plan and procedure for subsequent research ...........................................................5
TASK 2............................................................................................................................................7
2.1 Matching resources effectively to frame the research questions...........................................7
2.2 Undertake the proposed research investigation in accordance with the agreed specification
and procedures.............................................................................................................................7
2.3 Recording and collating the related data................................................................................8
TASK 3............................................................................................................................................9
3.1 Effective use of appropriate research evaluation technique..................................................9
3.2 Interpreting and analysing the results....................................................................................9
3.3 Making recommendations and justifying the areas for further considerations....................14
REFRENCES.................................................................................................................................16
APPENDIX....................................................................................................................................18
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INTRODUCTION
In current market conditions, UK retail sector is facing number of issues so in order to
overcome such kind of issues it is significant to analyse the impact of customer relationship
management on the buying behaviour of consumer in retail sector. A study on Tesco PLC. In
order to carry out a study and obtain suitable findings different type of tools and techniques of
research are being adopted by a scholar. Present study will provide information in regard to
impact of customer relationship management (CRM) on the buying behaviour of customer.
Current study is also beneficial to have proper learning about working of retail sector.
TASK 1
1.1 Formulate and recording of possible research outline specifications
Aim
Key motive behind the current study is to analyse the impact of customer relationship
management on the buying behaviour of customer in retail sector. In this respect, Tesco PLC is
considered as an organisation. In order to have effective outcome of the study the objectives also
need to be designed for the study.
Objectives
 To analyse the concept and practice of CRM in retail sector with special reference to
Tesco PLC.
 To identify the driving forces that influences relationship with consumer and helps in
gaining satisfaction.
 To evaluate the relationship between buyer behaviour and customers relationship
management.
 To recommend strategies to Tesco PLC for practising CRM in more efficient manner in
order to boost sales.
1.2 Identify the factors that contribute to the process of research project selection
There are number of factors that has contributed in the process of research project
selection. Customers are considered as critical factor that allows business firm to have better
opportunities in the highly competitive market. Nowadays retail firms are more focused towards
diverse tools that helps in record keeping functions so that better services can be provided to
3

customers (Shani and Chalasani, 2013). CRM is one of key aspect that helps in storing
information about customers and interact with existing and future customers. It is one of key
reason behind the selection of topic and it will provide effective learning in regard to CRM. It
has been identified in previous studies that CRM helps in attaining better opportunities in the
market. In order to carry advance learning about the CRM and its impact on organisation growth
the current study will be conducted (Oliver, 2014).
1.3 Undertake a critical review of key references
As per the view of Claycomb and Martin (2013), CRM practice plays a key role in
building better relationship with customers which is beneficial for organisation. In current
market conditions, CRM is referred as technological aspect that allows businesses to have direct
interaction with customers in desired way. It is a method that helps in generating leading so that
organisation can have better opportunities in the market (Claycomb and Martin, 2013). With an
assistance of CRM the business firm can also attain information in regard to needs and wants of
customer. Sashi (2012) has stated that the CRM also helps in analysing the market trends so that
strategies can be developed in appropriate manner. Issues can also be identified in appropriate
manner so that sound relationship with customers can be build for better success of organisation
(Sashi, 2012).
Customer buying behaviour is referred as study that provide understanding about
perception of individual or group towards products and services. It mainly depends on the
sociology, psychology, marketing and social anthropology. Wu (2013) has asserted that the
buying behaviour has great relationship with decision making process because it directly links
with the needs. There are number of factors that impact the consumer buying behaviour.
Classification of factors can be as cultural, social, personal and psychological factors. If any
organisation is not meeting key standards of these factors then business firm may face critical
issues (Wu, 2013). For example, customer is more attracted towards low price products due to
low income level, but company is offering premium pricing goods then market share may get
influenced. It is because the customer buying behaviour is attracted towards low price goods.
Kandampully, Zhang and Bilgihan (2015) has contended that the CRM and customer buying
behaviour has great relationship with each other. It has been noticed that CRM allows to gather
information about diverse customers that also allows to understand the needs and wants of
customer. However, consumer buying behaviour is somehow related with consumer needs.
4

Along with CRM also allows to have focus on feedback process so that information regarding
buying behaviour can be attained in appropriate manner. If organisation is well focused towards
CRM then customer needs can be determined in appropriate manner (Kandampully, Zhang and
Bilgihan, 2015). It will facilitate in understanding key factors that has direct impact on the
organisational working. It is also beneficial to have effective designing of marketing campaign
so that goals and objectives can be accomplished in desired way. Orel and Kara (2014) has
critically explained that use of CRM allows to design different kinds of strategies in order to
accomplish objectives. It is because it permits to store in-depth analysis of customer and their
buying behaviour (Orel and Kara, 2014).
1.4 Produce a research project specification
In order to carry the current report, it is significant to design the path by using diverse
tools and techniques. For better understanding in regard to CRM and its impact on buying
behaviour of customers the researcher will employ inductive approach. It will provide assistance
in effective data collection so that objectives of the study can be accomplished in appropriate
manner (Mackey and Gass, 2015). In addition to this, the investigator will have focus on
interpretivism approach. It will develop effective development of outcome in order to analyse the
impact of CRM on customer relationship management on buying behaviour of customers.
Moreover, the exploratory research design will be adopted in order to carrying out current
investigation. It will provide insight about the subject and it helps in understanding the customer
buying behaviour towards Tesco PLC products and services (Taylor, Bogdan and DeVault,
2015). Research will be carry out by having improved focus on qualitative aspects. In this
respect the questionnaire will be designed so that responses can be gathered from customers of
Tesco PLC, who visit UK store. Questionnaire will be designed by considering research
objectives and nature of investigation. In order to have systematic data collection the primary
and secondary sources will be used by researcher (Silverman, 2016). Random sampling will be
key tool of data collection so responses will be taken from every 10th customer who visit to
Tesco PLC store in London. Sample size for the current study will be 50 customers.
1.5 Produce plan and procedure for subsequent research
ACTIVITY/WEEK 1 2 3 4 5 6 7 8 9 10 11
Identification of research topic
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Topic is selected after discussing
with tutor,
Determining the rationale behind
the study and significance are
defined.
literature review is conducted to
collect secondary data related to
topic,
Determining objectives and aim of
the study
For collecting primary data,
researcher approachers to
managers of Marks & Spencer
Selection of research approach
Research methodology used in the
study defined properly.
Questionnaires related to impact of
reward system on employee
motivation is developed
With the help of survey and
questionnaire methods,
information from respondents
collected.
Arrangement of gathered
information in a chronological
order.
Thematic analysis technique is
applied to the present outcomes.
Interpretation of collecting data
and findings of research in
systematic manner.
At the end, recommendations and
suggestions for further study are
provided.
Presentation is developed to
present the findings.
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Submission of the report
TASK 2
2.1 Matching resources effectively to frame the research questions
There are number of resources that are required for effective accomplishment of the
study. By having improved focus on finance the objectives of research can be meet in desired
way. It has been identified that there are number of secondary sources that demand additional
charges for effective data gathering (Flick, 2015). It can be stated that the researcher need to
ensure about financial sources in order to carry out a research successfully and attain adequate
outcomes. Technology and human resources are also referred as most significant factors that
plays a key role in success of organisation (Panneerselvam, 2014). With an assistance of
technological tools the researcher can have proper data analysis which is beneficial to attain
better outcomes. In order to record the data collected technological tools also need to adopted by
researcher. Along with this, the human resource will provide assistance in diverse activities such
as data collection and analysis.
2.2 Undertake the proposed research investigation in accordance with the agreed specification
and procedures
Research Approach: In order to have effective accomplishment of the current research
study, the investigator has focused on inductive approach. With an assistance of the selected
approach the data collection process has been developed effectively (Billig and Waterman,
2014). It also provides proper development of theory so that objectives of study can be
accomplished in appropriate manner. By having improved focus on inductive approach the
results can be obtained effectively and applied to diverse businesses. It is also beneficial to
analyse the impact of CRM on consumer behaviour and growth of organisation.
Research Philosophy: It is considered as value and belief that is presented in the study. It
mainly has relationship with the attitude of researcher. There are various kinds of research
philosophy that are adopted by investigator for accomplishment of research objectives. For
current investigation, interpretivisim philosophy has been employed because it is suitable as per
nature of study (Neuman and Robson, 2012). In this, the gathered responses has been evaluated
with the researcher's point of view. Along with this, the information provided in literature review
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section has also been evaluated with an assistance of selected research philosophy. However,
positivism is not appropriate because it will not assist in analysing the impact of CRM on
consumer buying behaviour.
Research Design: Design is referred as blue print that helps in effective designing of
further tools in order to accomplish objectives. Design also provide assistance in attaining better
outcomes. Exploratory research design has been adopted by researcher for better understanding
of impact of CRM on customer buying behaviour (Pickard, 2012). It has allowed to explore
factors that impact buying behaviour in diverse manner. It has provided great support in gaining
accurate idea about relationship between CRM and buying behaviour. With an assistance of this,
insight about the concern subject has been developed which is beneficial for accomplishment of
research study.
Research Type: For conducting a research, it is significant for researcher to have
effective determination of nature of study. It helps in effective selection of diverse tools and
techniques so that study can be accomplished in appropriate manner. There are basically two
kinds of research such as qualitative and quantitative (Pandita, Agarwal and Saini, 2016). It has
been identified that quantitative is adopted to present numeric and measurable data. In present
study, qualitative research nature has been considered as key factor. It provides theoretical
discussion regarding the subject and helps in gaining better outcome. It has provided learning
about diverse qualitative tools that helps in data collection and analysis.
2.3 Recording and collating the related data
Data collection: There are number of methods that helps in data collection so it is
significant for researcher to ensure about them in appropriate manner. Primary and secondary
sources are being adopted by investigator in order to have effective gathering of data.
Questionnaire has been designed to have effective consideration of primary sources (Mackey and
Gass, 2015). In this, questionnaire are prepared on the basis of research objectives. On the other
side, diverse secondary sources are being present that are accessed by researcher for data
collection. Books, journals and online documents are key secondary sources that are being
accessed.
Sampling: Sampling is considered as one of most essential section of primary
investigation because it allows to have proper gathering of information. Current investigation is
focused towards random sampling method. In this, responses has been taken from every 10th
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consumer who has visited to Tesco PLC, London. Sample size of the present study is 50
customers of Tesco (Taylor, Bogdan and DeVault, 2015). It has been identified that if sampling
selection is not appropriate then data collection process effectiveness may get influenced so it is
significant to make sure that the information is being gathered as per sampling.
Ethical considerations: It is significant for researcher to consider ethics as one of critical
aspect because it allows to effective accomplishment of goals and objectives. In order to meet the
standards of ethics the proper information about nature and purpose of investigation has been
shared with members. It will amend understanding among members about the investigation
(Silverman, 2016). Any kind of personal information is not disclosed so that confidentiality can
be well maintained. Along with this, plagiarism is also one of critical issue that has also been
concerned by researcher in order to ensure that ethical aspects are well maintained. In this
respect, validity and reliability of information has been referred effectively so that effectiveness
of the research can be well maintained (Flick, 2015).
TASK 3
3.1 Effective use of appropriate research evaluation technique
It is also necessary for researcher to have proper evaluation of gathered data so that
objectives of study can be accomplished in appropriate manner. In current investigation the
information has been gathered with a help of primary and secondary. In order to have data
collection evaluation the researcher has focused on qualitative data analysis (Panneerselvam,
2014). For effective consideration of qualitative data analysis the researcher has adopted
thematic approach. In this, number of themes are being designed by expert as per reference of
questionnaire. It has assisted in drawing overall interpretation of the study. With an assistance of
this approach data has been presented in form of different themes, patterns, graphs, tables and
charts (Billig and Waterman, 2014).
3.2 Interpreting and analysing the results
Theme 1. How frequently you visit to the outlets of Tesco PLC
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From the above graph, it has been interpreted that the out of 50 respondents, 20 has stated
that they visit to the Tesco PLC outlet on weekly basis. Other 15 has said they visit to store on
monthly basis. In order to enhance the market share and sales, business firm need to focus on
quality of services so that issues can be overcome. Company can also have improved focus on
marketing strategies in order to attract more customers. It will assist in gaining better competitive
advantage in current market conditions.
Theme 2. Tesco PLC CRM process helps you in acquiring information regarding products and
services
10
Weekly Once in a Month Within 2 Months More than 2 Months
0
5
10
15
20
25
How frequently you visit to the outlets of Tesco PLC
Column B

By analysing the responses of consumers, it is found that majority of respondents are
agreed to the statement that Tesco PLC CRM process helps them in acquiring information
regarding products and services. Out of 50 customers, 35 are in the favour of statement. It means
company is using CRM in appropriate manner. For effective sharing of information with
customers the organisation can also focus on social media network and other communication
tools. Along with this, the business firm can also focus on interactive activities in order to have
effective acquisition of information.
Theme 3. Marketing strategies of Tesco PLC influences your buying behaviour
11
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
0 5 10 15 20 25 30 35
Tesco PLC CRM process helps you in acquiring information
regarding products and services
Column B

From the above graph, it has been found that company is more focused towards
marketing strategies. It is because majority of customers has said that the marketing strategies of
Tesco PLC influences their buying behaviour. It has been noticed that the majority of customers
percept that the marketing strategy has extreme impact on their buying behaviour. It has been
noticed that the 60 percent of customers has said that they are extremely influenced due to
marketing strategies of Tesco PLC. In order to attract potential customers the company can bring
innovation in strategies.
Theme 4. Use of CRM is beneficial to build relationship with Tesco PLC
12
60%
10%
20%
10%
Marketing strategies of Tesco PLC influences your buying
behaviour
Extremely
Moderately
Low
Not at all

As per above analysis, it can be said that the use of CRM is beneficial for organisation
because it helps in building better relationship with Tesco PLC. It has been noticed that majority
of respondents are agreed with the statement that use of CRM is beneficial to build relationship
with Tesco PLC. It has been witnessed that the 80 percent of people think that use of CRM helps
them in building better relationship with organisation. Rest of 20 percent of customers are not in
favour of statement. In order to improve the effectiveness of CRM company may implement
diverse measures.
Theme 5. Your perception improved towards Tesco PLC in recent times because of its CRM
and customer engagement practice.
13
70%
10%
10%
10%
Use of CRM is beneficial to build relationship with Tesco
PLC
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

By analysing the responses of consumers, it is found that majority of respondents has
stated that their perception has improved towards Tesco PLC in recent times because of its CRM
and customer engagement practice. Out of 50 customers, 40 has stated that the CRM of Tesco is
effective and it provides better opportunity to gain diverse information. Most of them has said
that they are satisfied with the services provided by organisation. Customer service support is
also improved that helps in improving engagement. For attracting potential customers the
business firm may focus on innovative customer engagement practice.
3.3 Making recommendations and justifying the areas for further considerations
As per above study, it can be concluded that CRM of Tesco Plc is effective and it helps in
building better relationship with customers. Primary data evaluation also indicates that Tesco
PLC CRM process helps its customers in acquiring information regarding products and services.
There are number of factors that may affect the customer buying behaviour so it is significant for
management to make sure about goals and objectives. It has been noticed that CRM allows to
gather information about diverse customers that also allows to understand the needs and wants of
customer.
Moreover, in respect to improve the effectiveness of CRM system the business firm may
focus on number of activities that bring innovation in the services. Along with this, effective
identification of customer needs is also significant because it helps in effective design of
strategies. It also provides support to CRM system development. In order to have proper
14
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
0 5 10 15 20 25 30 35 40 45
Your perception improved towards Tesco PLC in recent times because of its CRM and customer engagement practice.

understanding about the subject researcher may carry out study on significance of CRM in
organisational success.
15

REFRENCES
Books and Journals
Andzulis, J. M., Rapp, A. and Agnihotri, R., 2014. Social media technology usage and customer
relationship performance: A capabilities-based examination of social CRM. Journal of
Business Research. 67(6). pp.1201-1208.
Billig, S. H. and Waterman, A.S. Eds., 2014. Studying service-learning: Innovations in
education research methodology. Routledge.
Claycomb, C. and Martin, C. L., 2013. Building customer relationships: an inventory of service
providers’ objectives and practices. Journal of Services Marketing.
Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry.International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Khodakarami, F. and Chan, Y. E., 2014. Exploring the role of customer relationship
management (CRM) systems in customer knowledge creation.Information & Management.
51(1).pp.27-42.
Liljander, V., Weman, E. and Pihlström, M., 2012. Customer engagement in a Facebook brand
community. Management Research Review. 35(9). pp.857-877.
Mackey, A. and Gass, S. M., 2015. Second language research: Methodology and design.
Routledge.
Neuman, W. L. and Robson, K., 2012. Basics of social research: Qualitative and quantitative
approaches.
Oliver, R. L., 2014. Satisfaction: A behavioral perspective on the consumer. Routledge.
Orel, F. D. and Kara, A., 2014. Supermarket self-checkout service quality, customer satisfaction,
and loyalty: Empirical evidence from an emerging market. Journal of Retailing and
Consumer Services. 21(2). pp.118-129.
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Pandita, D., Agarwal, R. and Saini, R., 2016. Examining the Impact of Organizational Culture on
Customer Centricity in Organizations: An Analysis. Prabandhan: Indian Journal of
Management. 9(2). pp.19-28.
Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd.
Pickard, A., 2012. Research methods in information. Facet publishing.
Sashi, C. M., 2012. Customer engagement, buyer-seller relationships, and social media.
Management decision. 50(2). pp.253-272.
Shani, D. and Chalasani, S., 2013. Exploiting niches using customer relationship marketing.
Journal of Services Marketing.
Silverman, D., 2016. Qualitative research. Sage.
Srinivasan, K. and Saravanan, S., 2015. Principles and Practices of Customer Relationship
Management in Ethiopian Banks. EXCEL International Journal of Multidisciplinary
Management Studies. 5(8). pp.8-20.
Taylor, S. J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Wu, L., 2013. The antecedents of customer satisfaction and its link to complaint intentions in
online shopping: An integration of justice, technology, and trust. International Journal of
Information Management. 33(1). pp.166-176.
Online
Quantitative,Qualitative, and Mixed Research. 2015. [pdf]. Available through:
<http://www.uk.sagepub.com/upm-data/38123_Chapter2.pdf >. [Accessed on 5
September, 2016].
Sampling Designs. 2009. [pdf]. Available through:
<http://www.ssc.wisc.edu/~jraymo/links/soc357/class8_F09.pdf >. [Accessed on 5
September, 2016].
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APPENDIX
1. How frequently you visit to the outlets of Tesco PLC?
 Weekly
 Once in a Month
 Within 2 Months More than 2 Months
2. Tesco PLC CRM process helps you in acquiring information regarding products and
services.
 Strongly Agree
 Agree
 Neutral
 Disagree Strongly Disagree
3. Marketing strategies of Tesco PLC influences your buying behaviour?
 Extremely
 Moderately
 Low Not at all
4. Use of CRM is beneficial to build relationship with Tesco PLC
 Strongly Agree
 Agree
 Neutral
 Disagree Strongly Disagree
5. Your perception improved towards Tesco PLC in recent times because of its CRM and
customer engagement practice.
 Strongly Agree
 Agree
 Neutral
 Disagree
18

 Strongly Disagree
19