Dissertation: Customer Satisfaction, Brand Image & Sainsbury's Loyalty

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Dissertation
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This dissertation investigates the impact of customer satisfaction and brand image on brand loyalty, focusing on Sainsbury's, a major UK supermarket chain. It begins by highlighting the importance of customer satisfaction and brand image in a competitive business environment and outlines the rationale, aim, and objectives of the study. A literature review explores existing research on customer satisfaction, brand loyalty, and the strategies employed by Sainsbury's to enhance customer loyalty. The research methodology section details the methods used for data collection and analysis, including questionnaire design and data interpretation. The findings are analyzed using graphs and charts, and the report concludes with recommendations based on the overall study, emphasizing the need for Sainsbury's to prioritize customer service, actively seek and respond to customer feedback, and leverage marketing to enhance customer satisfaction and brand loyalty. This document is available on Desklib, a platform offering a wide array of study tools and resources for students.
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Dissertation & PHD
Thesis
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Executive Summary
The business environment keeps on changing and there is need to establish strong brand
image in order to achieve success. The competition is enhancing day by day and there is need to
serve the customers properly in order to attain brand loyalty. The multinational organisations are
working properly to enhance the experience of customers so that they are able to serve them. The
report is based on “Impact of customer satisfaction and brand image on the brand loyalty of
Sainsbury’s.” In the starting of this report the importance of customers satisfaction and and brand
image on the loyalty of Sainsbury's is being examined. The reason for selecting the research
topic is also part of this report. The use of literature review is being done so that all the
objectives are justified with the help of already published data.
Research methodology is integral part of this report as there is discussion related to the
systematic manner of completing the research. To collect primary data questionnaire is
formulated. Data analysis with the help of graphs and pie chart is done so that it is easy to
interpret the same. In the end of this report recommendations are mentioned on the basis of
overall study.
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Acknowledgement
Foremost, I want to thank my advisor for their continuous support at the time of
competing this project. Due to the support and guidance, I am able to complete the research
report successfully. I also want to show my sincere gratitude to all the seniors who helped me
while doing this research.
I also want to thank God, for making me capable of conducting the research and
providing me opportunities. My parents also play a major role in supporting and motivating me
to carry on all the projects and overcoming all the obstacles that come in path.
Major thanks to the customers of Sainsbury's as they have given their time and filled the
questionnaire. Without their support the project would not have been completed properly. I am
able to complete the project with the help of support, guidance and good communication.
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Table of Contents
Executive Summary.........................................................................................................................2
Acknowledgement...........................................................................................................................3
Project title: “Impact of customer satisfaction and brand image on the brand loyalty of
Sainsbury’s.”....................................................................................................................................5
INTRODUCTION...........................................................................................................................5
Rationale of the study..................................................................................................................6
Aim and Objectives.....................................................................................................................6
Literature Review.............................................................................................................................7
Introduction to Literature Review...............................................................................................7
To identify the ways that would be used by Sainsbury for increasing customer satisfaction
with purpose of enhancing brand loyalty....................................................................................7
To determine different challenges faced by Sainsbury because of poor brand image................9
To identify different strategies used by the Sainsbury to analyse effective brand loyalty........10
Conclusion of Literature Review..............................................................................................11
Research methodology...................................................................................................................12
Data Findings and Analysis ..........................................................................................................19
Recommendation...........................................................................................................................37
Conclusion ....................................................................................................................................37
Reflection.......................................................................................................................................39
REFERENCES:.............................................................................................................................41
Books and Journals...................................................................................................................41
Online........................................................................................................................................41
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Project title: “Impact of customer satisfaction and brand image on the brand
loyalty of Sainsbury’s.”
INTRODUCTION
Customer satisfaction plays a major role in success of an organisation. It is seen that all
the business organisations work to provide best services to customers so that they become
satisfied with the company. The business organisation wants to establish strong position in the
market so that they are able to attract more and more customers (Budur and Poturak, 2021). The
customers are valuable for every organisation and satisfying the customers make them loyal for
the company. A company that has loyal customers is more successful and able to gain
competitive advantage. This report is based on Sainsbury's. It is second largest chain of
supermarkets in United Kingdom. The business organisation was established 152 years ago in
1869. It was founded by John James Sainsbury and have headquarters in London, England,
United Kingdom. There are 1428 sops of the company as per the data of 2019. It is seen that they
work on enhancing the satisfaction of customers so that they are loyal for the company. They
treat the human resource of the organisation in effective manner and they also help to build
relations with the customers. There are around 180,000. The revenue earned by company in 2021
is around £29.048 billion (About Sainbury's, 2021). It is necessary to manage the employees
effectively so that they work to achieve success of the company.
It is important to note that each and every business organisation needs to achieve high
position in the market. They work in such a manner that they are able to attract maximum
customers. There is key role of the strategies that are used by a company to get more and more
customers. Every company wants to have loyal customers so that they are able to gain advantage.
By providing quality products and services to the customers a company is able to retain
customers (Elsäßer and Wirtz, 2017). There is need to manage the work of the business
organisation properly so that they are able to gain advantage over the competitors. The company
must know about the needs and wants of their target customers and must fulfil them. The
customers are important part of a business organisation. There is need to work on skills of the
employees so that they are able to provide best services. It is seen that the strategies are being
implemented by the employees and there are certain challenges that take place at the time of
implementing the strategies. If a company has poor brand image they should work at the same
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time. Taking the action at that time is necessary so that they are able to reduce the impact of
negativity. They must design the strategies that is assist in gaining success. There are certain
changes that the business organisation must take to gain customer loyalty.
Rationale of the study
Today, all the business organisations want to achieve high position in market. So, this
study is based on analysing the impact of customer’s satisfaction and brand image on customers
and their loyalty (Hussein, 2018). There are various changes in the trend that are being observed
by a company. It becomes important to understand the reason of enhancing the brand position. It
is seen that there is requirement of working in such a manner that assist the company to get loyal
customers and serve them in effective manner. The business environment is dynamic and there
are several changes that take place on regular basis (Rita, Oliveira and Farisa, 2019). So a
company must keep the customers satisfied so that they are able to achieve goals and objectives
successfully. By working in effective manner the company is able to enhance satisfaction level
of customers. It is important for a business organisation to enhance their operations and manage
the work in such a manner so that they are able to retain the customers in the organisation.
Aim and Objectives
Research Aim: “To analyse the impact of customer satisfaction and brand image on the brand
loyalty of Sainsbury.”
Research objectives:
To identify the ways that would be used by Sainsbury for increasing customer
satisfaction with purpose of enhancing brand loyalty.
To determine different challenges faced by Sainsbury because of poor brand image.
To identify different strategies used by the Sainsbury to analyse effective brand loyalty.
Research questions
What are the different ways which are used by Sainsbury for increasing customer
satisfaction to enhancing brand loyalty?
What are the major challenges faced by Sainsbury while using effective brand image
changes?
What are the strategies used by the company to analyse brand loyalty through customer
satisfaction?
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Literature Review
Introduction to Literature Review
Literature review is overview of already published work. It is done by reviewing the data
and information already published. It helps to analyse the data so that they the information can
be used in further study. It is review of already published books, journals, articles and
newspapers in being used in order to analyse the same. It is importance for the researcher to
critically analyse the data and draw conclusion out of the same (Oztemel and Gursev, 2020).
There is need of detailed analysis of the study so that they are able interpret the data. There is
evaluation of old material in such a manner that new research questions are also satisfied.
To identify the ways that would be used by Sainsbury for increasing customer satisfaction with
purpose of enhancing brand loyalty.
According to Li and et.al., 2020, Customer satisfaction can be dined as measurement that
help to determine the happiness of the customers with the products, services, and capabilities of
the business organisation. There are different customers of a company and it is important to serve
them. The company must work to understand the needs and wants of the customers so that they
are able to enhance satisfaction level of the target customers. Every organisation works to
enhance the satisfaction of customers as that enhances the brand image of the company. There is
need to understand that the customers also tell others about the brand that they like. There is need
to work on brand loyalty so that they are able to attract more and more customer (Rahi, Ghani
and Ngah, 2020).
Customer loyalty can be defined as a relationship between company and its customers. It
is willingness of the customers that tracts them again and again towards the business
organisation. Repetitive visit by the customers is helpful for the company so that they are able to
earn more revenues. The customer likes the product that is being offered by the company and
that in turn motivates them to make repetitive visit. There is difference among customer
satisfaction and customer loyalty (Pakurár and et.al., 2019). The satisfied customers of the
company are loyal for the organisation. The business organisation wants to enhance satisfaction
level of the customers so that they become loyal for the company. There are certain ways that are
being used by Sainsbury's in order to increasing customer satisfaction with purpose of enhancing
brand loyalty:
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Word of mouth though marketing concepts: It is important for business organisation
to take suitable actions that will enhance the performance of organisation. The business
environment is dynamic and the company must undertake suitable changes to compete the
market. These positive changes will help the company to engage the customers and enhance their
satisfaction level (Ashraf and et.al., 2018). The use of latest technology is also one of the
parameter that assist Sainsbury's to enhance the loyal customers for the brand. It is necessary to
tell all the customers about the actions that are being taken by the company so that they are
aware. All the important information that is positive for company must be disclosed so that the
customer are able to know the same. It creates positive image of the organisation in front of
customers and they become loyal for the company and its growth. Marketing plays a vital role in
enhancing the satisfaction level of customers by serving them effectively.
Make customer service a priority: The company keeps the customers at priority. A
business organisation has to undertake several functions. There is need to provide services to the
customers on priority (Bernarto and et.al., 2020). It will help to make them happy for the
organisation. By analysing the needs and wants of the customers, Sainsbury's will be able to
attract more customers. They focus on providing the products and services to the customers on
time. All the problems and issues that are being faced by the customers are solved by the
company on priority basis. This helps the company increase the satisfaction level of the
customers and attain more profit. There is need to understand that all this enhances the brand
loyalty (5 Ways to Increase Customer Loyalty, 2021). It will help them to enrich the brand
loyalty.
Ask for advise and listen to it: This means taking feedback from the customer. There is
need to take feedback from the customers and then the company must take action according to
the same. There is to analyse the problems that are being faced by the customers and then
corrective measures must be taken. It enhances the satisfaction level of customers and enhance
their trust in the organisation. It is important for a company to listen to the advise given by
customers in proper way. The customers tell others about the good work done by the company as
per their suggestion. It enhances the brand image of Sainsbury's. It is because the company
always take proper care of the feedbacks that are being given by the customers. It is necessary to
timely resolve the problems of the customers (Afthanorhan and et.al., 2019). Taking quick
actions enhances the image of the company. It is important to take advise from the customers as
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they are major stakeholder of the business organisation. It will help the company to create
positive image in front of customer and keep on engaging them towards the organisation. The
trust of customers also enhances if their feedback are taken effectively.
To determine different challenges faced by Sainsbury because of poor brand image.
According to Bilgin, 2018 Brand image of a company is the perception level of the
customers on the brand. These are based on the interactions among the customers. The brand
image is established over a time and there is need to involve the customers so that they make
purchases from brand in effective manner. It is necessary to provide effective and efficient
services to the customers so that they become loyal for the business organisation. It is necessary
for a company to serve the needs and wants of customers positively and make improvement
(Rather and et.al., 2019). Along with that there are certain challenges that are being faced by the
business organisation and they are as follows:
Treating brand as asset: To create a positive image of the brand it is necessary to treat it
as asset. The company musty keep the brand image as priority and take all suitable actions for
improving the image. The company has invest money in changing the brand image and there is
complex process that they need to undertake so that they are able to create positive image of
brand. The company needs to analyse the techniques and take further assistance so that they are
able to overcome the negative image of the brand (Jasmani and Sunarsi, 2020). There is need to
follow the process and procedure in systematic manner so that a company is able to attract
customers and serve them in an effective manner. The management team needs to take suitable
actions and start working on formulating strategy so that they are able to achieve success. It is
necessary to use latest technology so that the company is able to establish effective image.
Possessing a compelling vision: There is key role of latest technology in creating
effective image of a business organisation. By adopting latest technology the company is able to
serve the customers and that helps to create positive image. The vision of the business
organisation must be altered on regular basis so that they are able to achieve success (Bilgin,
2018). They must think about the future by considering the present situation so that they are able
to take necessary actions. The use of compelling techniques is the reason behind progressive
development of the brand image.
Creating new subcategories: There is need to bring changes in the working of the
organisation. The use of transformational strategies is helpful for the company so that they are
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able achieve objectives. There is need of getting new subcategories that focus on latest
technology so that they are able to complete the assigned work in effective manner (Guci and
et.al., 2020). The aims of the company keep of changing and there is need to formulate
subcategories based on the overall aim of the organisation.
Achieving integrated marketing communication (IMC): The use of IMC is beneficial
for the business organisation. There is need to know that communicating with the customers is
essence for the company. It is analysed that choosing best communication mix is necessary for
the company (Rather, 2018). By changing the communication strategy of the company a business
organisation is able to manage the change in proper manner. The challenge is selection of best
marketing channels by the company. The business environment is dynamic and there is need to
use IMC so that the customers are attracted towards the brand.
Building a digital strategy: There is need of digital strategies so that they are able to
work according to changing norms. There are certain complexities that are faced by the company
in order to adopt new technology. There is lack of skills in the staff members and that causes
issue for the company. It is seen that the company has to manage the work in such a manner that
they are able to hire new employees that will work effectively for the company. It is important
for a company manage the changes in effective-way and achieve success.
There is need to analyse the challenges that are undertaken so that they are able to
overcome them. It is necessary for them to make changes in the situation in proper manner. It
makes them ready for the situation and overcome the challenges.
To identify different strategies used by the Sainsbury to analyse effective brand loyalty.
According to Bilgin, 2018 Brand loyalty can be defined as the image of brand that
attracts customers. It helps the company to have loyal customers. Each and every business
organisation understands that there is need of brand loyalty so that they are able to achieve goals
and objectives. The company wants to manage suitable development so that they are able to
achieve brand loyalty. To gain advantage over the competitors it is necessary to study in
appropriate manner. There is high competition present in market and the company must form
strategies so that they are able to achieve success (Song, Wang and Han, 2019). The strategies
that can be used by the business organisation to analyse the brand loyalty are discussed below:
Engage with the effective customer services: By providing quality services to the
customers a company is able to bring change. It is seen that by using latest technology the
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company is able to know about the the changes that are demanded by the customers. The
environment is dynamic and the business organisation needs to analyse the importance of
latest technology so that they are able to adopt the same. There is need to conduct regular
research in the market so that suitable actions for the benefit of company are taken. The
task is to provide best customer services.
Deliver the valuable content: The company must work on delivering the valuable
content. The content makes the customers know about the company in proper manner
and overcome the challenges (Mabkhot, Shaari and Salleh, 2017). It is necessary to post
all the important and relevant contents that there is no fake information about the
company. This assist is setting good and positive image of the business organisation.
Consistent brand values: The company must work to bring sustainable changes in the
market. It helps the company to be consistent and that is beneficial for them. The use of
techniques that are organic for the business organisation are necessary to overcome the
challenges that are being faced by the company (Mohammed and Rashid, 2018). They
have to adopt the changes that take place in the organisation so that they are able to set
consistent value of the brand. The changing business environment must be adaptable so
that they are able manage their position in the market.
Turn to influencer: By working as per the trend in the market a company is able to
achieve success. The company must use influencer so that they are able to attract the
customers in the market. It will help the company to systematic changes so that there is
growth of company (van der Westhuizen, 2018). There is high competition present in
market and there is need to use such strategies that will influence the customers and
attract them towards the brand. It is necessary to work as per the plans of the company.
Conclusion of Literature Review
It is analysed that a company must understand the importance of brand value. They must
work to know the strategies that will help them to attain good image in market. There is need to
analyse the challenges that take part while bringing changes in the organisation. The strategies
developed by the company are also helpful to attain effective image in the market.
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Research methodology
It is one of the most important part of research. There is proper system that is being
followed in order to complete the research in effective manner. This provides clear guidance to
the readers regarding the research. The research methodology is guide for overall research and
assists to complete the research in effective manner (Mohajan, 2018). There is need of following
all the steps so that they are able to complete the research in proper manner. There is discussion
related to data collection, analysis as well as sample size of the given project. There is
requirement of studying all the techniques so that research aims can be achieved. The guidance
must be followed so that researcher is able to achieve goals and objectives successfully. The use
of correct methods is necessary so that research is completed effectively.
Research philosophy: In order to carry research of vast topic it is important to understand
the nature and purpose. There is need of conducting research with detailed information so that
there is proper development of knowledge. To complete the research in proper manner there is
use of research onion. It helps to carry overall research in proper manner. The research
philosophy is of two types positivism and interpretivisim. To carry on this research, the use of
positivism philosophy is done. It helps to conduct research in systematic manner. It also assists
in analysing the quantitative data.
Research approach: There are mainly two research approaches that are inductive and
deductive. It is important to choose the resource type according to the area of research. Inductive
approach starts with observations and then move towards a particular experience that are based
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