Research Methodologies: Tesco Customer Relationship Marketing Study

This report details the research methodologies employed in a study evaluating the role of customer relationship marketing (CRM) in customer retention and acquisition, specifically within Tesco Plc. The research encompasses a comprehensive overview of the research topic, background, aim, objectives, and research questions. It explores the significance of the study, its contribution to knowledge, and the chosen research philosophy (interpretivism) and paradigm (ontology). The methodology section outlines the research reasoning (deductive approach), research approach (qualitative), data collection methods (interviews with Tesco marketing managers), and sampling techniques. The report also includes a table of contents, illustrations, and references, providing a structured framework for understanding the research process and findings. This study aims to analyze how CRM strategies impact customer loyalty and the acquisition of new customers in the competitive UK retail market, offering valuable insights for both academics and industry professionals seeking to improve their CRM practices.

Research Methodologies

Table of Contents
Assignment 1 .............................................................................................................................................4
Research Topic......................................................................................................................................4
Research Background............................................................................................................................4
Research Aim........................................................................................................................................4
Research Objectives..............................................................................................................................4
Research Questions...............................................................................................................................5
Contribution to knowledge....................................................................................................................5
Research philosophy..............................................................................................................................5
Research Paradigm................................................................................................................................7
Research Reasoning..............................................................................................................................7
...............................................................................................................................................................8
Research Approach................................................................................................................................8
Data Collection Method........................................................................................................................9
Sampling Technique..............................................................................................................................9
Data Analysis.......................................................................................................................................10
Assignment 2............................................................................................................................................10
references.................................................................................................................................................15

Illustration Index
Illustration 1: Saunder's Onion...................................................................................................................7
Illustration 2: Deductive and Inductive Approach.....................................................................................8

ASSIGNMENT 1
Research Topic
What is the Role of Customer Relationship Marketing in Tesco in Retention and Acquisition of
Customers?
Research Background
Customer relationship marketing is a crucial overall marketing functions and process as it is
directly associated with effectiveness of overall operations of an organization (Petty, Thomson and
Stew, 2012). It is a system through the help of which companies can develop and maintain positive
relations with their customers which essentially would lead to overall improvement of image of
company in the market. Therefore, customer relationship marketing can be defined a business process
where client relationships, customer loyalty, brand value, etc. are developed through different
marketing and promotional tactics or activities. In recent years, it has many retail organizations in the
UK which are not able to retain their customers and are neither able to attract new ones which clearly
indicate that, there is lack of presence of proper customer relationship marketing strategies in such
companies (Chilisa, 2011). Furthermore, this also means that, companies like Tesco have failed to
develop and maintain healthy relations with the customers.
Many past studies and investigations on the topic have stated that, it is imperative for
organizations to share positive relations with the customers as success of the firm, to a great extent is
dependent on it (Amelina and Faist, 2012). This study was conducted with an aim to evaluate role of
customer relationship marketing tactics of Tesco on retaining and acquiring users. View behind
conducting this investigation was to assess how such marketing strategies help in retaining existing
customers as well as attracting new ones. Since, the UK retail industry is considered to be one of the
most competitive markets in the country, retaining existing as well as acquiring new customers
becomes a very tedious and difficult task to perform. Therefore, the role of customer relationship
marketing strategies is prominent in this regard (Golgowska, 2011).
Research Aim
Aim of this study is “To Evaluate the Role of Customer Relationship Marketing in Retention
and Acquisition of Customers: A Case Study of Tesco Plc”.
Research Objectives
In order to achieve this aim, the following objectives would have to be attained:
 To conduct a critical review of literature on customer relationship marketing.
 To identify the factors of relationship marketing that affects the retention and acquisition of

customers.
 To assess the impact of relationship marketing on customer retention in Tesco Plc, United
Kingdom.
 To critically analyse role of customer relationship marketing in retaining and acquisition of
customers in Tesco in the United Kingdom.
Research Questions
To attain these aim and objectives of the study answers to following research questions would
have to be determined:
 What have been the findings of previous studies on topic of customer relationship marketing?
 Which factors affect aspect of retention and acquisition of customer’s relationship marketing?
 How does relationship marketing influence customer retention at Tesco?
 What is the role of customer relationship marketing in retention and acquisition of customers at
Tesco?
Contribution to knowledge
Present research study is of great significance as it would contribute towards enhancement of
knowledge of not only the researcher but the reader(s) as well (Liu and Deng, 2010). Although, a lot
many research studies on the topic of customer relationship marketing strategies has been conducted in
the past but this research would shed light on the role played by these tactics on process of retaining
and acquiring customers. Furthermore, this research considers the case study of Tesco which is UK's
one of the leading retail firms. Importance of this investigation can be understood through fact that, it
would contribute immensely towards the field of relationship marketing in terms of acquiring and
retaining the customers; along with suggesting the firm on ways through which the same can be
improved (Nusair and Hua, 2010).
This research will help future scholars to determine role and impact of relationship marketing
on different aspects of business processes and enable them to give suggestions for improving the same.
Therefore, it may not be wrong to say that, future researchers as well as companies on which such
investigation is conducted would be benefited by it. Since relationship marketing in recent years has
gained significant popularity, it may be right to state that through this study, suggestions can be
obtained on ways through which the same can be improved for benefit of the concerned organization
(Terrell, 2012).
Research philosophy
There are many kinds of philosophies which can be used by a researcher for the purpose of
conducting an investigation in an efficient and effective manner (Kelly, 2012). It is crucial that,

thorough information and understanding about the same is obtained so that researcher can obtain proper
and desired results. Philosophies are important because of reason that, it provides an understanding
about how the researcher views the world. Essentially, there are three main kinds of research
philosophies- positivism, post-positivism and interpretivism. Positivism philosophy consists of
empirical data and uses different scientific tools and methods. This means that, the researcher by using
this philosophy relies on different kinds of numerical data (Morgan, 2007). On the other hand, post
positivism philosophy is a type of 'meta-theoretical' stance which is opposite to the positivist
philosophy. Herein, though the researcher remains separated from the research itself, but there are
chances that his judgements might become impaired due to own beliefs and notions, values,
knowledge, etc. In contrast to it, interpretivism philosophy states that, researcher is a part of the
investigation, as the human interests can be considered to be major driver behind science. It does not
take into consideration numbers and numerical form of data but rather it only investigates topics
pertaining to the research (English and Kirshner, 2010).
In the present research, interpretivism philosophy of research would be taken into account.
Main reason behind its selection is that, it would allow the scholar to be a part of the whole research
and add a human element to it with the help of which meaningful as well as effective results can be
obtained by the scholar. Furthermore, use of this philosophy would help in ensuring that the researcher
is able to investigate topics related to the study properly and use them in the investigation (Payne and
Turner, 2008).
Illustration 1: Saunder's Onion

(Source: Noble and Bestley, 2011)
Research Paradigm
It can be divided into two – Epistemology and Ontology. Epistemology basically provides
answer to question “How do you know something?” Therefore it can be said that, the paradigm of
epistemology is a description of researcher's own view and perception related to different topics about
the study (Case and Light, 2011). It is subjective in nature, i.e. it is associated with scholar's own ideas
and beliefs about something; but it can be considered to be objective if findings of the study cannot be
generalised by other researchers. On the other hand, ontology answers “What is reality?”. Herein it
may not be wrong to say that, this paradigm is related with understanding the perception of researcher
towards reality. It usually is subjective in nature. But it can be objective only when if the individual's
perception towards reality changes on a frequent basis.
Considering nature of the present research it can be said that, using ontology paradigm would
be very useful as well as effective. Reason behind it is that, topic of customer relationship management
is a very important part of business processes for companies and it is very important that steps are taken
to maintain the same (Hodkinson and Macleod, 2010). It is based on realities, i.e. it is a very true
concept, because of which it can be said that chances for success of an organization is dependent on the
same.
Research Reasoning
There are two kinds of approaches for conducting any research study – Inductive and Deductive.
The former approach moves from a broader perspective to a specific one (Duke and Mallette, 2011).
Essentially it is a “bottom up” approach. Here initially the researcher moves from specific observations
and then begins to develop patterns and regularities or related to the topic of investigation. But on the
other hand, to deductive approach is a “top down” system. Here the researcher moves from general to
specific points related to the topic of the study. In the present research, deductive approach will be
used. Main reason behind using it is that, it would allow the scholar to conduct investigation in an
effective manner along with attaining proper results.

Illustration 2: Deductive and Inductive Approach
(Source:Terrell, 2012)
Research Approach
There are many kinds of approaches which can be considered by the researcher in order to
conduct this study. Largely they can be divided into two – Qualitative and Quantitative. Qualitative
research approach is related with conducting a research study through means that it does not involve
use of different quantitative and numerical or statistical tools. While on the other hand, quantitative
approach consists of using these tools so as to obtain such results that can be expressed in numerical
forms. In this research, qualitative approach will be used (Nusair and Hua, 2010). Main reason behind
its selection is that, it is best suited with the philosophy which is being used in the study; in addition,
this approach would also enable the scholar to obtain desired results of the study efficiently and
effectively. Furthermore, the approach would enable the researcher to use different qualitative
techniques of data analysis. Due to this reason, there are much better chances that scholar may be able
to determine more detailed results from the study (Chilisa, 2011).
Data Collection Method
It is a very important aspect of successfully conducting any research investigation in the process
of data collection. There are a large number of methods and sources through data for a study can be
collected. They can be divided into two – qualitative and quantitative. Main purpose of gathering

information pertaining to the topic of study through the former method is to gain understanding about
the subject matter and to evaluate thoroughly on various parameters (Morgan, 2007). Herein techniques
such as observations, listening, focus groups, questionnaires, etc. can be used. On the other hand,
quantitative method of data collection uses such methods in which the data can be expressed in
numerical forms. For instance techniques such as Likert scaling system can be used. It would help the
researcher in obtaining quantitative information through the help of which collected information can be
gathered and represented in numerical form (Amelina and Faist, 2012).
In the present research, qualitative technique of data collection would be used. Reason behind
selection of this method is that, it would enable the researcher to obtain data and analyse as well as
present them in such a manner which can be understood easily and effectively by the reader(s) as well
as other scholars. Herein, marketing managers working at stores of Tesco across UK would be
interviewed (Duke and Mallette, 2011). This will provide scholar to obtain detailed data about the topic
as well as perceptions of these managers in terms of role of relationship marketing tactics in retaining
as well as acquiring customers.
Sampling Technique
Another very important aspect of conducting any research investigation is the sampling
technique. There are various methods through which the said process can be carried out easily and
effectively. Random sampling is a technique in which the researcher would at random contact sample
population and select any of them to conduct this investigation. Another technique is stratified
sampling. Here, the scholar would set some benchmarks on the basis of which members from the
sample population would be involved in the study (Petty, Thomson and Stew, 2012). Features such as
demographic characteristics can be considered. In cluster sampling, the whole population is divided
into sub-groups on basis of different features and aspects and then sample members are selected from
them.
In the present study, stratified sampling method would be used. Here those managers who have
experience of 5 or more years of working with Tesco will be contacted and involved in the study.
Through this method, researcher would be able to obtain their view points on the topic of role of
relationship marketing in attracting and retaining customers. Main reason behind selection of this
method is that it would help in ensuring that, views and opinions of those managers is taken into
consideration in the study who have significant experience of working in the industry (Nusair and Hua,
2010).

Data Analysis
It is the section through which data collected through different sources can be evaluated and
then interpreted on the basis of different parameters and methods. There are various methods through
which such a process can be carried out in an efficient and effective method. They are qualitative and
quantitative. In the present study, qualitative techniques would be used (English and Kirshner, 2010).
Reason behind selecting this method is that, it is best suited for the data collection approach as well as
the philosophy and paradigm. Furthermore, use of this method would enable the scholar to evaluate
collected data very thoroughly and thus also obtain desired results from this study.
ASSIGNMENT 2
Over the years, numerous studies have been conducted on the topic of customer relationship
marketing and its role in retention as well as on acquiring new customers. Herein, it is important to note
that such studies need to be evaluated and assessed thoroughly, so that the present study can be carried
out in an efficient and effective manner (Bradley, 2010). In this context, it may not be wrong to say
that, the section of literature review is very important. It would help the researcher in understanding
various technical jargon and topics and thus it will help to identify and analyse gaps in past studies and
how the same can be filled with current investigation. One of them was conducted by Filip and Voinea
2012. Another such study was carried out by Lombard 2011. Verhoef 2003 his study highlighted the
effects of customer relationship management practices on retention of customers. Similarly, Campbell
2003 stated the ways in which customer relationship management programs can be managed in an
efficient and effective manner, enabling companies to manage their operations in such a manner that
the company can build positive relations with their customers (Homburg and et. al, 2009). In numerous
past studies it has been observed that, customer relationship marketing (CRM) strategies have a very
important role to play in the process of acquiring and retaining the customers because it can be
considered to be an approach that would enable companies to satisfy target customers easily and
effectively. This is because past researchers have stated that, it one of the most important parts of not
only the marketing system but for different business processes as well (Fiqueiredo and Petkova, 2007).
This means that, if efforts are made to use these tactics and strategies properly then it can turn out to be
a great advantage for the business firms. It can be supported through fact that, by using such tools,
companies can take steps to extensively satisfy customers and also ensure that, they share a positive
and effective image of the corporation. Further, in previous studies pertaining to the topic, it has been
observed that CRM strategies and tactics have a very important role to play to acquire and retain
customers. Through this information the 1st research question can be answered (Geyer, Van and Atasu,

2007).
Customer Relationship Marketing is a very important aspect of the marketing process as to a
great extent success of an organization is dependent on the same. For companies, regardless of
marketplace that they may be a part of, building and maintaining positive and effective relations with
target customers is of utmost importance (Avlonitis and Giannopoulos, 2012). In this regard Campbell
(2003) believes that, it forms the basis for functioning of any business enterprise. But it is such a facet
of business processes, which needs to be given utmost attention by relevant authorities. It has a
significant impact on the process of acquiring and retaining customers with the firm, as recalled by
Schultz (2011). One of the most prominent factors that influence the task of acquiring and retaining
customers are the various tools and methods which are used by companies (Best, 2013). This part of
the literature review section provides answer to the 2nd research question. Over the years, numerous
tools and methods have been developed and propagated to effectively conduct the process of
relationship marketing. According to Mehmetoglu and Norman (2013) call centres have emerged as a
very popular method through which relations with customers can be developed as well as maintained.
This essentially means that, the task of outsourcing such work to other companies has proved to be very
beneficial. It can influence the aspect of retaining and acquiring customers (Alexander, 2007). This is
so because call centres would contact the customers and try to build relationship with them on behalf of
the company. But Avlonitis and Giannopoulos (2012) recall that, this method could backfire on the firm
that uses it because there is an equal probability that customers may or may not like the use of this
approach. In this regard Henley, Raffin and Caemmerer (2011) had stated that, there are very few
groups of customers who even pay attention to attempts made by call centres on behalf of business
organizations. It is due to this reason, the stated method may do more harm than good (Verhoef, 2003).
Moreover, many people nowadays pay no attention towards processes and systems which are used by
such call centres for contacting and interacting with the customers can attract and retain them in an
organization. Different social networking platforms can be used by companies in order to build
relations with customers to acquire and retain them (Rothbard, Phillips and Dumas, 2005). The use of
this method as a form of relationship marketing can have both positive and negative impact on the said
process. Though the use of sites such as Facebook, Twitter, YouTube, etc. it has increased at a very
rapid pace in recent years, but their popularity among people is declining at an alarming rate. During
the study Baines, Fill and Page (2010) found that, number of people using such websites is reducing
dramatically as these individuals are deactivating their accounts on such platforms (Filip and Voinea,
2012). Main reason behind it is that, people are not able to lead a normal life, because they spend
majority of their time on such sites. But Hecht (2014) accepts this fact, but then as well support the use

of social networking sites by companies so as to reach out to the customers and build effective relations
with them (Roman and Maas, 2005). The author believes that, even if use of such sites is declining still
it is a very effective and useful tool through which companies can attract and retain customers and can
also develop effective relations with them (Paul, 2012).
In many previous studies and investigations it has been observed that, customer relationship
management strategies and tactics are very important for companies in order to attract and retain
customers (Thomas, 2006). This is because it is a process through which firms can effectively reach out
to target customers, interact and build relationships with them. In this regard it may not be wrong to say
that, these tactics have a very substantial impact over stated aspects of business operations (Schultz,
2011). According to Homburg and et. al (2009), such strategies help companies in interacting with
target customers in better and in an effective manner as it enables the firms to reach out to a larger
audience base (Lombard, 2011). This way the organization can easily identify and understand demands
as well as expectations of the customers and also try to ensure that, the same are fulfilled to the greatest
extent possible (Fill, 2011). Herein Alexander (2007) supports the use of such methods by stating that,
companies which use customer relationship management strategies can develop better and much deeper
relations with them and also satisfy their demands. In this sense the impact of such strategies is
significant in the process of attracting and retaining customers in an organisation. According to Bradley
(2010) such strategies have a direct influence over satisfaction level of the target customers and also on
the perception which they may be having about the company (Hess and Syam, 2006). This means that,
if these strategies are used properly and effectively then there are better chances that the organization
may be able to attract and retain customers in firm with far ease and comfort (Kotler, 2008).
Furthermore, essentially the process of attracting and retaining customers entails use of a large number
of methods because customer relationship marketing strategies have a significant impact over the said
process (Dann, 2010). Thus it can be said that, through the help of said tactics, firms can develop and
share a positive relationship with customers that would enable it to bring a positive image in the
market. Since, there are a large number of strategies and tactics through which the said task can be
carried out easily and effectively, these strategies can help companies in attracting as well as retaining
customers (Gordon and et. al, 2006). In addition to it, CRM strategies would be useful in ensuring that
the firm is able to effectively understand needs and demands of customers, enabling the company to
fulfil demands of customers and also satisfy them (Baines, Fill and Page, 2010). This part of the
literature review can be useful for answering the 3rd research question.
As discussed above there are various ways in which CRM strategies influence the process of
attracting and retaining customers (Dooley and Jones, 2010). In recent years, it has been noted that the

marketplaces such as the retail industry have become highly competitive due to which it is crucial that
steps are taken to build and maintain the same because any mistake here can prove to be extremely
dangerous for the firm which will put its very existence in a state of risk (Järvi and Munnukka, 2009).
According to Lombard (2011), by paying attention towards techniques and methods of CRM, company
can easily and effectively carry out the process of retaining and acquiring the customers. Further Filip
and Voinea (2012) believes that, since marketplaces have become so very competitive, it is critically
important that firms share positive and effective relationship with its customers (Select and
Connect,2006). This way an attempt can be made to alter the image of company among them and turn
it into a positive one. One of the main reason as to why it is so very important for companies is that,
through such tools target customers can be communicated easily and effectively (Hecht, 2014).
Therefore it can be said that, CRM strategies are very important to interact and communicate with the
customers. It has been observed that, on many occasions communication is of great essence for firms,
regardless of the market that they may be a part of (Henley, Raffin and Caemmerer, 2011). Further, if
proper communication channels and methods are used then it would help in developing a positive
image in the market and also assist in maximizing customer satisfaction. Gordon and et. al (2006) states
that, these methods can also be helpful in gaining loyalty from the customers (Mehmetoglu and
Norman, 2013). Since through such methods, firms can reach out to customers and communicate with
them in an efficient and effective manner, it can be said that use of such methods can be helpful in
obtaining customer loyalty (Dent, 2011). Competition levels are rising at a very rapid pace in different
marketplaces, it may not be wrong to say that gaining customer loyalty can become a major benefit for
companies. This can be supported through findings of study by Hess and Syam (2006), that customer
loyalty is something that all firms demand and expect but it is very hard to achieve (Campbell, 2003).
Therefore, if an enterprise is to attain loyalty of the customers then it is very important that steps are
taken to satisfy them and also understand their varied needs and demands as well as their expectations
in much efficient and effective manner. This way the 4ht research question can be answered (Kotler and
et al, 2010).

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