E/M/191. Tesco Clubcard: Pennies off the price or points on the plastic?

The paper examines the customer loyalty program (Clubcard) launched by Tesco ten years ago analyzing the motives behind the launch, and evaluating the effectiveness of the program in gaining customers' loyalty. The paper addresses the following questions. 'What external factors drove the supermarkets to adopt loyalty card schemes and what are/were their longer term goals? In what ways do you think suppliers could benefit from loyalty card schemes? Do you think that retailers such as Asda are right to reject loyalty card schemes? What factors do you think lead to real customer loyalty? To what extent do loyalty cards utilize these factors?'