StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Loyalty Effect of the Tesco Club Card Toward its Members - Essay Example

Cite this document
Summary
The essay "Loyalty Effect of the Tesco Club Card Toward its Members" focuses on the critical analysis of the major issues concerning the loyalty effect of the Tesco club card toward its members. Customer loyalty is said to be the most frequently discussed concept of recent years…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Loyalty Effect of the Tesco Club Card Toward its Members
Read Text Preview

Extract of sample "Loyalty Effect of the Tesco Club Card Toward its Members"

Download file to see previous pages

There is always a reason for customer loyalty, it is believed, which behavior differs from the one purchase to the next, and are not accidental (Ibid.).
Morgan et al. (2000), however, makes distinctions between customer loyalty and customer retention. Accordingly, whereas the former usually involves both behavioral and attitudinal dimensions, the latter is purely behavioral. The marketer factor is also much considered in customer retention while with customer loyalty, the intrapersonal part of customer behavior is the point of consideration. Moreover, many other reasons were found to prod customers to buy outside of loyalty, for example during sudden change of prices, or when there is a risk involved, or because there is no other choice (www.bestofbiz.co.uk, cited in Morgan et al., 2000). In cases where there is competition among marketers, alternatives made available to customers may make them ex-customers if they fall short of loyalty (Morgan et al., 2000).
There are two approaches to defining and measuring customer loyalty as gleaned from the literature. Rundle-Thiele and Bennett (2001) describe the stochastic approach as considering the concept in behavioral terms, with the deterministic approach considering it in attitudinal terms. “Stochastic” is defined as having a pattern that can be analyzed statistically but not predicted precisely (Reader’s Digest Great Dictionary of the English Language, 2001), while “deterministic” has something to do with the doctrine that all events and actions are determined by external forces acting on the will (Ibid).
Between these two approaches, there appears little disagreement contrary to the aspect of measuring it (Rundle-Thiele and Bennett (2001). Some 30 years ago Jacoby and Kyner were said to have started the debate which is still going on up to the present time. The drawbacks of the stochastic approach are presented by O’Malley (1998) and Odin (2001).
The rather narrow technical definitions of the stochastic approach “does not capture the full richness and depth of the loyalty construct,” according to O’Malley (1998) For instance, it does not indicate if repeat orders come about out of habit, or due to situations obtaining, or to psychological reasons on the part of the customer. Instead of a 100 percent loyalty to a single brand, according to O’Malley (1998) which may characterize only a few, customers tend to select from two or three brands within any product category, which have become their regular fare.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Loyalty Effect of the Tesco Club-Card Toward its Members Essay”, n.d.)
The Loyalty Effect of the Tesco Club-Card Toward its Members Essay. Retrieved from https://studentshare.org/business/1517348-the-loyalty-effect-of-the-tesco-club-card-toward-its-members
(The Loyalty Effect of the Tesco Club-Card Toward Its Members Essay)
The Loyalty Effect of the Tesco Club-Card Toward Its Members Essay. https://studentshare.org/business/1517348-the-loyalty-effect-of-the-tesco-club-card-toward-its-members.
“The Loyalty Effect of the Tesco Club-Card Toward Its Members Essay”, n.d. https://studentshare.org/business/1517348-the-loyalty-effect-of-the-tesco-club-card-toward-its-members.
  • Cited: 0 times

CHECK THESE SAMPLES OF Loyalty Effect of the Tesco Club Card Toward its Members

Is a Reward Scheme Effective at Increasing Customer Retention

Tesco and ParknShop should make a continual effort to instill stronger engagement from its clients to enhance their customer value proposition at the least possible expense.... Moreover, satisfaction with the loyalty scheme is significantly correlated with the frequency of using the loyalty scheme card for both UK and HK samples.... Loyalty schemes are significantly correlated with the frequency of recommending the loyalty scheme card to friends and family for both samples....
54 Pages (13500 words) Dissertation

Loyalty Card and Customer Loyalty: Case of Tesco in the UK

The author of the paper "Loyalty card and Customer Loyalty: Case of Tesco in the UK" will begin with the statement that over the past years many service providers and retailers have introduced loyalty schemes as a strategy of retaining customers.... In return the customer is given a plastic card that is scanned into the system at every purchase of goods or services; and points are awarded to the card, which is later turned into vouchers.... The Clubcard loyalty card scheme or Tesco has the same objectives....
56 Pages (14000 words) Essay

Loyalty Programs of Tesco in the UK

The loyalty card is used by different companies in the form of a loyalty program.... he reward card carries exchangeable points that can be used to purchase and create a decision process for data providers.... The reward card is used at a certain store to collect points, for a particular product and equal points that had been recorded through the card.... The essay "Loyalty Programs of tesco in the UK" focuses on the critical analysis of the major loyalty programs of tesco in the UK....
12 Pages (3000 words) Essay

The effect of the recession on Tesco's, Sainsbury's and Morrison's

The paper has substantiated its results with ratio analysis for the last five years.... The analyses in the research also lead us to establish the fact that Tesco was able to maintain its dominance over the UK retail sector in terms of market share, sales, profitability and growth.... This research paper analyzes impact of the recession on the three supermarkets tesco, Sainsbury and Morrison.... As a result, the analysis showed that the UK grocery sector had been adversely impacted as a whole; however, despite an economic downturn and deteriorating macro conditions, the three retail giants-tesco, Sainsbury and Morrison have had an insignificant impact on their profitability, market share and loyalty of the customers....
32 Pages (8000 words) Dissertation

The Link between the Loyalty Card Scheme and the Sales and Profits of TESCO Supermarket

his article undertakes a case study-based analysis of the tesco Clubcard loyalty scheme.... After a review of some of the earlier work on loyalty schemes, this article first describes elements of the tesco Clubcard loyalty scheme, in terms of rewards, deals, and integrating channels.... The essence and nature of affiliations and their business value is summarizing in the concept of buyer loyalty, and its associated literature.... From the paper "The Link between the Loyalty card Scheme and the Sales and Profits", the concept of loyalty cards allows retailers to renovate cold data on consumer behavior into warm associations and eventually into a genuine consumer loyalty founded on mutual understanding and trust....
18 Pages (4500 words) Coursework

MARKETING COMMUNICATION

The focus of transaction marketing(TM) is to look to each transaction or encounter as an opportunity to maximise short term gain, without necessarily considering future contacts, or the effect of this transaction on the potential for future contacts.... At its worst, transactional marketing can be seen as manipulative or exploitative approach (Egan, 2004).... elationship marketing intentionally aims to retain customers (keep them purchasing repeatedly over time) and foster customer loyalty (create a favorable attitude or bias which drives repeat purchase)....
24 Pages (6000 words) Essay

TESCO Marketing and Healthy Living

the tesco Company was founded in 1919 by Jack Cohen.... The company also was the first to initiate nutritional value of its brand through an initiative referred to as 'Healthy Eating'.... Within a year, TESCO was in a position to improve its customer services through the customer champion's policy stores.... TESCO also obtained a unique position to communicate with its customers and receive feedback.... In this view, the essay analyzes the UK marketing activities of tesco focusing on Healthy living....
13 Pages (3250 words) Essay

The Retirement of Terry Leahy's from Tesco

Tesco concentrated more on its non-food business including the e-commerce business.... It has several outlets including its headquarters in Cheshunt and its branches in China.... So far Tesco is selling its financial products to almost six million customers.... The supermarket was the first to introduce the use of company loyalty card.... In the paper 'The Retirement of Terry Leahy's from tesco' the author analyzes one of the biggest and the most profitable supermarket chain in Britain....
14 Pages (3500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us