According to Huddlestone (2004), to survive in today's competitive food market, food retailers must develop and maintain a loyal customer base. This study explores the impact of loyalty programs on the customer purchasing behavior in the United Kingdom food retail industry. It will discuss the significance and influence of the loyalty programs on consumer's perceptions and attitude. Though several researches have been done on this subject, still there seems to be limited evidence of the effects of such programs and their effectiveness has not been well established. Loyalty programs offer customers various incentives, typically in the form of points that can be redeemed or various other gift vouchers which act like rewards to the customers. The aim of the research proposal is to investigate how successfully retail food supermarkets in the United Kingdom make use of the loyalty programs and how it affects the consumer's loyalty towards the respective supermarket.
The scenario of the research proposal is to recognize and compare two successful and modern retail food supermarkets i.e., Tesco and Sainsbury and evaluate their loyalty programs to identify which among them has a successful loyalty program which forms a important component of customer relationship management (CRM) strategy. Tesco launched its loyalty program in the form of Tesco Club Card in 1995 and experienced great success along with Sainsbury who launched its loyalty card named Nectar. A detailed study on both the loyalty programs will be done further in this research.
[...] Lewis, Michael (2004), Influence of Loyalty Programs and Short-Term Promotions on Customer Retention,” Journal of Marketing Research (August), 281–92. Liu, Yuping "The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty." Journal of Marketing 71, no. 19-35. Lovelock, Ch., Wright, L. (1999). Principles of Service Marketing and Management.- Prentice Hall Macintosh G. and Lockshin L. (1997), “Retail relationships and store loyalty: a multi-level Perspective”, International Journal of Research in Marketing 487-97 Manish, M. (2001). Customer Loyalty Solutions. [interactive]. Internet access: http://www.brandvhannel.com/images/customer_loyalty.pdf. [...]
[...] One thing that worries me is the comparison of two stores in terms of information about their loyalty programs and their effectiveness. The collection of primary data will be done with care in order to get best results Bibliography Butscher S. A. (2001) Customer Loyalty Programmes and Clubs, London, Macmillan Business. Cuthbertson R. and Williams E. (1999) ‘Loyalty Cards - A Research Report on Loyalty Cards in European Retailing' Oxford Institute of Retail Management (OXRIM) and KPMG Consulting Research Report (online) (cited 12 Jan 2010). [...]
[...] (1997), Satisfaction: A Behavioural Perspective on the Consumer, New York, NY: McGraw-Hill Oliver, R. L. (1999). Whence consumer loyalty?. Journal of Marketing pp.33-44. Saunders Lewis Thornhill A (2009) Research Methods for Business Students: Prentice Hall: Harlowd W. G. (2000) Business Research Methods th edn) Forth Worth: Harcourt College Publishers Sharp B. and Sharp A. (1997) , Loyalty Programs and their Impact on Repeat-Purchase Loyalty Patterns International Journal of Research in Marketing 473- 86. Sivadas, E. and Baker-Prewitt, F.L. (2000), An examination of the relationship between Service quality, customer satisfaction, and [...]
[...] Loyalty programs offer consumers incentives typically in the form of points that can be redeemed for travel or other items or cash back, which encourages the customers to repeat their purchase process in the same store. According to Sharp and Sharp (1997), when any loyalty program is developed it has a maximum limit until which a consumer has to spend in order to qualify for the resulting reward. This creates a room for the customer to shop and concentrate their portfolios of the products on the one retailing outlet and being loyal to such a firm. [...]
[...] (1997) Customer Loyalty programs Really Work?' Sloan Management Review, Summer, pp. 71-81 Gamble, P. Up close and personal? Customer relationship marketing@ work/ P. R. Gamble, M. Stone, N. Woodcook Kogan Page Green G., Kennedy P. and McGown A. (2002) ‘Management of multi-method engineering design research: a case study' Journal of Engineering and Technology Management Huddleston, Patricia “Food store loyalty: Application of a consumer loyalty framework.” Journal of Targeting, Measurement and Analysis of Marketing 12, no. 213:230 Jacoby, J. & Kyner, D. [...]
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