S/M/218. Dissertation. Loyalty in Retail: Strategic Success or Management Failure (Tesco PLC Case Study)

The dissertation investigates the concept of loyalty examining the relationship between customer satisfaction and customer loyalty, and conducting a case study of the success factors behind the Tesco customer loyalty programme (CLP) Clubcard. The background of Tesco is presented focusing on their position in the UK grocers' market and analysing the effects of the Clubcard CLP. Literature is reviewed on the theory of loyalty including types of loyalty, categories of loyalty, business implications of customer loyalty, loyalty-orientated strategies, CLP implementation, etc. Deductive and inductive research approaches are combined triangulating the findings obtained through the analysis of the primary (interviews and questionnaires) and secondary data. Conclusions are made about the effectiveness of CLPs and the level of customer loyalty for Tesco Clubcard members and non-members. Recommendations about sustainable performance of loyalty programmes are suggested.