This seminar paper will explore about the consumer behaviour and their loyalty to the big supermarket in the United Kingdom. This paper will also critically examine whether the consumers are switching their loyalty or not and what might be the key issue of doing so. In addition, the paper will recommend to the supermarket regarding the way of consumer’s loyalty retention as well.
Customers are the most important part to the various renowned supermarket companies rather than their own competitors in business in United Kingdom. Consumer behaviour is the key point to choose the market products in the supermarket. There are normally three stages of consumer behaviour for instances pre-consumption, consumption and post-consumption (Solomon, Russell-Bennett and Previte, 2012). Consequently, it is highly significant to focus continuously on customer behaviours in their each stage. However, consumer behaviour is radically changeable at least three times a year seeking best service from the retailer market. Consumer reliability is the crucial point for retailers making profit and expansion of their business.
At present, all large supermarket companies in United Kingdom are showing priorities to build strong relationship with their consumers and it is known as consumer loyalty. Therefore, business competition is growing remarkably within the supermarket like Sainsbury, Tesco, Morrison, Asda in the United Kingdom. Similarly, consumers are easily able to move their loyalty from one super market to another. Belleghem (2013) reported Morrison announced pre-tax loss about £176 million from the market, while discount shop like pound land achieved huge profit in the last couple of consecutive years.
Table of Contents
1. INTRODUCTION
2. CUSTOMER LOYALTY
3. ARE UK CONSUMERS BECOMING DISLOYAL TO THESE BIG SUPERMARKET BRANDS?
4. WHAT IS IT THAT CAUSES CONSUMERS TO SWITCH THEIR LOYALTY TO BRANDS?
4.1 Supermarkets are unable to meet their customer demand
4.2 Loyalty programs are missing their mark
4.3 No unique relevance to consumers
5. WHAT COULD SUPERMARKETS DO TO RETAIN THEIR CUSTOMERS?
6. CUSTOMER FEEDBACK
6.1 Customer Satisfaction Index
6.2 Feedback
6.3 Market Research
6.4 Market Segmentation or Strategic Activities
7. INTRODUCING CUSTOMER LOYALTY PROGRAMME
8. PROVIDING GOOD QUALITY PRODUCT WITH LOW PRICE
9. CONCLUSION AND RECOMMENDATION
Research Objectives and Themes
The paper explores the current state of consumer behavior and loyalty regarding major supermarket chains in the United Kingdom. Its primary objective is to critically examine the reasons behind declining consumer brand loyalty and to provide actionable recommendations for retailers to improve customer retention strategies.
- Analysis of consumer behavior stages in the retail sector.
- Evaluation of current loyalty trends in UK supermarkets.
- Identification of factors causing consumer brand switching.
- Strategic assessment of retention tools such as feedback loops and loyalty programs.
Excerpt from the Book
CUSTOMER LOYALTY
Customer loyalty is considered as the active relationship between an individual’s relative attitude and continuous support. Actually, the relationship is measured as facilitated by social norms and surrounding aspects (Dick and Basu, 1994). In addition, making strong relationship with customers is the prerequisite of the business success in United Kingdom and ultimately supermarket could make more profit. According to researchers, customer and retailer relationship makes company financially and socially strong in the society.
In addition, there are some programmes for instances frequently programmes (FPs) help particularly to develop customer loyalty. In addition, Kotler and keller (2012) reported that many companies can use FPs to hold their customer loyalty. Moreover, Knox and Denison (2000) revealed that the typology of loyalty measurement (Shown in figure 1). They segmented consumer loyalty into budget measures, switching measures, and patronage measures depending on the consumer loyalty.
Summary of Chapters
INTRODUCTION: This chapter outlines the research focus on consumer behavior and brand loyalty within the UK supermarket sector, highlighting the increasing competitiveness of the market.
CUSTOMER LOYALTY: This section defines the conceptual framework of loyalty as an active relationship and discusses the role of loyalty programs and measurement typologies.
ARE UK CONSUMERS BECOMING DISLOYAL TO THESE BIG SUPERMARKET BRANDS?: This chapter analyzes statistical data and survey results to determine the extent of consumer disloyalty and switching behaviors among major UK retail chains.
WHAT IS IT THAT CAUSES CONSUMERS TO SWITCH THEIR LOYALTY TO BRANDS?: This section identifies key drivers of brand switching, including failure to meet customer demands, ineffective loyalty programs, and lack of perceived uniqueness.
WHAT COULD SUPERMARKETS DO TO RETAIN THEIR CUSTOMERS?: This chapter proposes essential business strategies for effective consumer retention in a highly competitive market.
CUSTOMER FEEDBACK: This section emphasizes the importance of utilizing feedback mechanisms, such as satisfaction indices and market research, to maintain customer relationships.
INTRODUCING CUSTOMER LOYALTY PROGRAMME: This chapter evaluates the necessity of implementing strategic, effective loyalty programs to gain competitive advantages.
PROVIDING GOOD QUALITY PRODUCT WITH LOW PRICE: This chapter highlights the correlation between delivering consistent product quality at competitive prices and sustaining long-term consumer loyalty.
CONCLUSION AND RECOMMENDATION: This chapter synthesizes the findings and provides a final recommendation to prioritize quality and service to reverse declining loyalty trends.
Keywords
Consumer loyalty, Supermarket, United Kingdom, Customer behavior, Brand switching, Customer retention, Loyalty programs, Market research, Customer feedback, Service quality, Retail management, Competitive advantage, Customer satisfaction, Consumer demographics.
Frequently Asked Questions
What is the primary focus of this seminar paper?
The paper examines consumer behavior and the factors influencing brand loyalty toward major supermarket chains in the United Kingdom.
What are the central themes addressed in the text?
The key themes include the causes of declining brand loyalty, the role of consumer feedback, the effectiveness of loyalty programs, and strategies for retailer retention.
What is the main research objective?
The goal is to determine why consumers switch brands and to offer recommendations to supermarkets for improving customer retention rates.
Which scientific approach is used to analyze the subject?
The author employs a critical examination of existing academic literature, industry reports, and consumer survey data to evaluate loyalty trends.
What is covered in the main body of the paper?
The main body covers the definition of loyalty, analysis of consumer disloyalty data, factors influencing brand switching, and strategic retention measures.
How can the work be summarized by its keywords?
The work is characterized by terms such as customer loyalty, consumer behavior, retail management, and strategic retention policies.
What does the author suggest as a cause for brand switching?
The author suggests that switching is often caused by a failure to meet customer expectations, poor service, lack of program relevance, and perceived low value.
How should supermarkets approach customer feedback according to the paper?
Supermarkets are advised to utilize customer satisfaction indices, conduct market research, and perform market segmentation to tailor their services effectively.
- Arbeit zitieren
- Kamalesh Dey (Autor:in), 2016, Customer Loyalty in the UK. What Causes Consumers to Be Disloyal to Big Supermarket Brands?, München, GRIN Verlag, https://www.grin.com/document/313913
