The Impact of Relationship Marketing On Customer Loyalty At Tesco Plc, UK

Abstract

Purpose: The research aim is to examine the impact of relationship marketing on customer loyalty considering the context of Tesco plc.

Literature Review: The literature review broke down into two parts. In first part discussed about relationship marketing and second part discussed about customer loyalty. In relationship marketing part discussed about formation and factors of relationship marketing such as trust, commitment, communication and promise fulfillment and also discussed about what factors enhance relationship marketing. In customer loyalty part discussed about definition of customer loyalty and dimension of customer loyalty. Customer loyalty part also explained loyalty scheme executed by different supermarkets and whether loyalty scheme contribute customer loyalty or not and benefits of loyalty scheme.

Methodology: A self administer questionnaire derived relevant to research objective completed by 100 Tesco customers. An interview approaches also used on 50 customers and 10 team leaders in this research. A contents analysis used to analysis qualitative and quantitative data.

Findings/Result: Quality of product is dominate factor of relationship marketing to make loyal customer and other relationship marketing factor works to being loyal in the long run.

Research Limitation:  The data were collected from only one supermarket; more studies are needed for effective conclusion.

Practical Implication: Relationship Marketing has important to gain and sustain loyal customer in the long run specially in product quality.

Key Word: Relationship Marketing, Customer Loyalty, Tesco plc, UK.