Customer reward program as loyalty marketing tool

Title: The accuracy of customer reward program as loyalty marketing tool

Today Tesco is not only the UK’s largest grocer, but also the world’s most successful internet supermarket (Humby and Hunt, 2004, pg 1). The Tesco Clubcard is widely considered to be a pioneer and success story in loyalty marketing, helping to propel Tesco to be the number one supermarket retailer in the UK (Tapp, 2005, pg 176).This thesis consists of a literature review of previously publish materials and the use of a quantitative survey. The aim of the study is to uncover and identify the value of the Tesco Clubard customer reward program and determine how significant it is in creating true customer loyalty. The findings of the study revealed consumers place greater importance upon store location, value for money and product range rather than loyalty card schemes, in-store magazines and vouchers.

Author: Philip Law

Source: Blekinge Institute of Technology

Download Link: Click Here To Download This Report (PDF)

Reference URL 1: Visit Now


1.1  The Rise of Tesco
1.2  The Background to the Study
1.3  The Scope of the Study
1.4  Purpose
1.5  Objectives
1.6  Summary
2.1   Introduction
2.2   The Tesco Story
2.2.1   The Tesco Timeline
2.3  Characteristics of Customer Relationship Management (CRM)
2.4   The Clubcard Phenomenon
2.5   Defining Loyalty
2.6   Loyalty Marketing
2.6.1   The Customer Loyalty Ladder
2.7   The Tesco Clubcard as a Loyalty Marketing Tool
2.8   The Relationship between Satisfaction and Loyalty
2.9   Does Loyalty Result to Profit?
2.10   Do Customer Reward Programs Deliver Long Term?
2.11  Conclusion
3.1  Introduction
3.2  Research Objectives
3.3  Selection of Research Methods
3.3.1   Features of Qualitative and Quantitative Research
3.3.2   Analysis of Data
3.4  Questionnaire Design
3.4.1   The Eight‐step Questionnaire Construction Procedure
3.4.2   Justification of Questions
3.4.3   Question Types and Wording
3.4.4   Questionnaire Layout
3.4.5   Interviewer Versus Respondent Completion
3.4.6   Coding
3.5  Sample Selection Procedure and Sample Characteristics
3.6  Strengths, Limitations and Validity
3.6.1   Strengths
3.6.2  Limitations
3.6.3  Validity
3.7  Summary
4.1 Introduction
4.2  Analysis
4.2.1  User Profile of Tesco Clubcard Respondents
4.2.2  Customer Perceptions on Tesco Clubcard
4.2.3  Loyalty and Satisfaction
4.2.4  Tesco’s Efficiency and use of the Information Gained from Clubcard
4.2.5  Has the Tesco Clubcard Created Loyalty?
4.2.6  Are consumers Manipulating Suppliers?
4.2.7  Does Tesco Really Need the Clubcard?
4.3  Conclusion
5.1  Introduction
5.2  Conclusion of the Study
5.3  Recommendations
5.4  Limitations and further research
Appendix A  Questionnaire Justification
Appendix B  Questionnaire
Appendix C  SPSS Coded Questionnaire Results
Appendix D  SPSS Frequency Tables for Questionnaire Results

Leave a Comment