The Effectiveness of Loyalty Programs: An Empirical Study on the Tesco Clubcard

Bijlaney, Neha (2011) The Effectiveness of Loyalty Programs: An Empirical Study on the Tesco Clubcard. [Dissertation (University of Nottingham only)] (Unpublished)

[img] PDF (Dissertation Final) - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (1MB)


Since many years now, supermarkets have advanced the outlook of shopping in customers by making several improvements. Due to land prices rising steeply around city centers due to limited availability and increased demand, malls which operate on the economy of scale prefer to invest in vast tracts of land outside city limits. By sheer scale, they are able to carry abundant stocks and thereby seek very competitive prices from their suppliers.

Due to these competitive prices offered and larger choice and availability of products, consumers are ever willing to walk that extra mile. They normally buy from several retailers in order to gain a larger variety of products, which gives rise to the notion that these supermarkets can reap a larger share of customer expense. Encouraging frequent buying through customer reward programs is one of the ways implemented.

Today, Tesco is undoubtedly not only Britain’s leading food retail company, but has also spread its dominance into online shopping and is currently the largest internet grocery business in the world (Finch, 1999). The Tesco Clubcard is one of the most successful customer reward programs since the last decade and a primary reason behind this success is that the program is an essential constituent of Tesco’s core purpose, stated as ‘To create value for customers to earn their lifetime loyalty’ (Yelland, 2004).

The primary objective of this study is to discover the effectiveness of the Tesco Clubcard program by conducting secondary research in the form of a literature review and primary research with the help of a survey followed by a structured quantitative analysis and conclusion.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 26 Apr 2012 08:47
Last Modified: 30 Jan 2018 22:38

Actions (Archive Staff Only)

Edit View Edit View