Customer loyalty Tesco Case Study Research Proposal

Customer loyalty Tesco Case Study - Research Proposal Example Service has become vital for survival as it brings in customer loyalty and repeat business. It would be interesting for the sector to understand to what extent service in this industry is important and whether the retailers are able to satisfy the customer needs. The study would help to provide recommendations for Tesco's future service provision in order to face the challenges of globalisation. 1.3 Objectives for study The objective of the study is to determine the customer expectation in the services industry with particular relevance to grocery retail sector. This would help the retailers to enhance their service offerings and improve the sector. With this objective the aim of the study is: 1. To determine the extent to which Tesco is making efforts to retain customers. 2. To determine the gap between customer expectations and discharge of services in the retail sector. 3. To determine what retailers could do to enhance their service offerings. 4. To determine how the customer loyalty card (Clubcard) has contributed to the success of Tesco since 1995. 1.4 Significance of the study Customer loyalty and advocacy are very relevant in a competitive economy so these issues are very helpful in understanding the purpose of any organisation and how any organisation can fulfil that purpose. In the case of Tesco the research study is quite relevant since it deals with a successful organisation that has achieved a remarkable competitive advantage after the launch of its customer loyalty card (Clubcard) in 1995. At the same time it is very useful to study how the implementation of the management tool known as The Steering Wheel of Tesco... Customer loyalty and advocacy are very relevant in a competitive economy so these issues are very helpful in understanding the purpose of any organisation and how any organisation can fulfil that purpose. In the case of Tesco the research study is quite relevant since it deals with a successful organisation that has achieved a remarkable competitive advantage after the launch of its customer loyalty card (Clubcard) in 1995. At the same time it is very useful to study how the implementation of the management tool known as The Steering Wheel of Tesco has helped this organisation to keep its focus on the customer in order to deliver quality service on a consistent basis.Total quality management is the processes by which a business can improve its customer satisfaction, customer loyalty, competitiveness and profitability. Customer loyalty is essential to build relationships and this fact has been realized by Tesco who introduced the Club Loyalty Cards. A stable customer base is a core bu siness asset, contends Rowley (2006) and relationship marketing has shifted the focus of the marketing exchange.Tesco is the first retailer to offer online grocery shopping and they have been able to leverage the benefits in the right manner. Through the internet customers are able to make faster and informed decisions as the internet has eliminated the trade-off between reach and the richness because it brings rich information to a great number of people both simultaneously and cost-effectively (Tse, 2007).