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AN ANALYSIS OF THE IMPACT OF CUSTOMER SATISFACTION ON BRAND LOYALTY: A CASE STUDY OF TESCO PLC, UK

Chapter 4: Findings

4.1 Introduction

This chapter deals with the data and findings that are collected from the qualitative and quantitative methods. There are various questions asked to the participants of the survey and the answers are represented in the tabular form and graphs that helps the learner to understand the outcomes of the research. This study provides a proper conclusion of the topic with the help of the outcomes of the research.

4.2 Quantitative data findings

The research is able to identify the outcomes that is obtained from the answers of the participants. The data has been collected from the customers of the Tesco by asking 10 multiple choice questions that are close ended. Almost 50 participants have answered these questions and the data are recorded properly for the analysis.

  1. Specify your gender?

 

OptionsNo of respondentsResponse (%)Total respondents
Male2040%50
Female3060%50

Analysis: The above graphs shows that the number of female customers are more than male customers. It means that the females are more attracted towards the product of the Tesco. Around 60% of the females and 40% of males are customers of the Tesco. Therefore, the company needs to provide some discounts to the female customers so that they can purchase more from the company. There needs to be some reward point system provided to the female customers that can increase the interest of purchasing by the females.

  1. What is the age group you belong?

 

OptionsNo of respondentsResponse (%)Total respondents
18 to 25 years1020%50
26 to 45 years3060%50
46 to 60 years1020%50

 

Analysis: It can be observed from the above graph that 60% are the participants of age group 26 to 45 years. Therefore, these age group people have a high interest of purchasing products from the Tesco and satisfied with the quality of the products and services provided by the Tesco. The adult people are showing more interest in the company products. Therefore, it reflects that the company needs to produce more products related to this age group people.

  1. How long you have been purchasing products from Tesco?

 

OptionsNumber of respondentsResponse (%)Total respondents
New customer1020%50
More than 1 years1020%50
More than 5 years3060%50

Table 4.3: Loyalty of customers for Tesco

Analysis: The above analysis shows that the most of the customers of the Tesco are loyal for more than 5 years. The loyalty of the customers are because of the quality products and services provided by the company.  This also means that Tesco is ruling the market for many years and attaining the attention of the customer by its quality products and services. Therefore, the company needs to take tr5jhe feedbacks of the customers in order to maintain the loyalty of the customers.

  1. How far are you satisfied with the product of the Tesco?

 

OptionsNumber of responsesResponse (%)Total respondents
Highly satisfied3060%50
Satisfied1020%50
Neutral816%50
Dissatisfied24%50
Highly dissatisfied510%50

Analysis: The above study reflects that the customers are happy with the services of the Tesco and they are showing more interest in the products of the company. Therefore, the company have to enhance the quality of the products and services to engage more customers with the company. The company needs to check the packaging of the product including the color and quality of the packaging. This checking of the product allows the company to be assure about the security of the product. The feedback of the customers are necessary to identify the loopholes and gas in the quality of the products and services of the company.  The fulfillment of the gaps and the loopholes helps in the development of the company.

  1. Have you ever referred your friend to avail services of Tesco?

 

OptionsNumber of responsesResponse (%)Total respondents
Yes2550%50
No1836%50
Possibly714%50

Analysis: The study shows that the regular and loyal customers of the company have referred many friends to avail the products and services of tesco in order to get the benefit. The data has shown that the customers have referred their close mates and friends. This has increased the number of the customers of the tesco. The referred customers are also loyal to the company as they are referred by their close friends and mates. This has helped Tesco to maintain the customer relationship criteria.

  1. What are the challenges faced in the product of the Tesco?

 

OptionsNumber of responsesResponse (%)Total respondents
Economic2040%50
Demographic1020%50
Social510%50
Cultural510%50
Competitors1020%50

Analysis: The data and findings of the study have showed that the company is facing many challenges including the economic, demographic, social, cultural and its competitors. The data shows that the company is facing the economic problems due to the recent changes in the market policies. The changes in the price of the raw materials have increased the prices of production of the products that has reduced the profits of the company.

  1. How much do you rate the app of Tesco?

 

OptionsNumber of responsesResponse (%)Total respondents
Less than 236%50
2-424%50
4-6510%50
6-81530%50
8-102550%50

Analysis: The data has shown that the people are showing interest in the Tesco app from which they can avail the products and services of the company from anywhere. It has increased the rate of success of the company. The company is getting profit from the installation of the app by the customers.

  1. What are the recommendation you provide for the improvements in the products of Tesco?

 

OptionsNumber of responsesResponse (%)Total respondents
Raw material714%50
Processing510%50
Marketing36%50
Pricing1530%50
Customer Reviews2040%50

Analysis: There are few recommendations have been provided by the data gathered. The customers have opted for taking reviews of the customers and change in the pricing strategy of the company. There are few people who have opted for the marketing policy and the raw materials and its processing.

  1. How is Tesco overshadowing the other industries in the market according to you?

 

OptionsNumber of responsesResponse (%)Total respondents
Customer Satisfaction2040%50
Quality of products1020%50
Marketing Strategies510%50
CRM1530%50

Analysis: There are many methods reflected from the above study of the data including the customer satisfaction, quality of products, marketing strategies and CRM. The relation with the customer is important to keep them satisfied. Tesco has able to maintain the customer relationship in a proper way.

 

4.3 Qualitative data findings

The research deals with the various outcomes and objectives that are initialised at the beginning. The data and findings are also collected from the secondary method including interviews. In this part, there are 6 questions asked to the 3 managers of the Tesco Plc in the interview. The questions were open ended questions and the answers of these questions are taken as the data and qualitative data analysis is done on it. The questions are discussed below:

  1.  What are the salient features of your company to achieve customer satisfaction?

 

1st Manager2nd Manager3rd Manager
“We are focusing more on the market research and analysing the needs of the new customers”“We are examining the financial budget of the company to understand the pricing strategy of the products of Tesco” “I do not think about the examination of the financial budget is a correct way to achieve the customer satisfaction in the market.”

 

Analysis:

As mentioned by the managers of the Tesco about the strategies of the company to achieve the customer satisfaction, the first manager explains about the market research strategy and understanding the needs of the new customers. According to me, the old and loyal customers are aware with the business strategy of the Tesco and the quality of the products they offer to them. Therefore, the company is focusing more on attracting the new customers towards the company regarding enhancing the brand loyalty of the company. The satisfied customers helps in the development of the company by increasing the brand loyalty. As mentioned by the second manager, the company is looking for the financial budget for making the pricing strategy of the products of the company, this does not seems to be a valid point for the customer satisfaction. This point is also discarded by the third manager and does not agree with this strategy.

I think that the first point that the first manager has stated is the appropriate for the achievement of the customer satisfaction. I think for the proper management of the business strategy in the market helps in enhancing the customer satisfaction.

  1. Do you employ any kind of brand loyalty techniques to achieve better loyalty from the customers?

 

1st Manager2nd Manager3rd Manager
We are focusing on the best product of the company that most of the customers are willing to purchase.”We are organising training programs that helps in creating new leaders in the company who can handle the customers in a positive manner.”We are consulting with the customers regarding any changes in the business by obtaining the feedbacks of the customers.”

 

Analysis:

According the opinions of the three managers of the Tesco, the company is applying different techniques to achieve the better loyalty of the customer. As stated by the first manager, the company is concentrating on the best product of the Tesco that is mostly purchased by the customers. The company is enhancing the quality of its best product to gain the trust of the customers that increases the customer engagement in the company. The second manager stated that Tesco is looking for the leaders who can enhances the CRM of the company. The company is organising training sessions for the employees of the company that enhances the leadership skills in the employees of the company. The third manager explains about the importance of the customer feedback in the company.

I think the last point is appropriate for enhancing the loyalty of the customers for the company. Customer feedbacks helps in identifying the gaps and loopholes in the strategies of the company. I think that the development of the new leaders helps in motivating the employees in the company that cann strikes a positive impact in handling the customers.

  1.  Is there any improvements in the brand loyalty after applying these techniques?

 

1st manager2nd Manager3rd Manager
“We have succeeded in channelising the products in all over the world by gaining the loyalty of the customers”As Tesco is already a brand, it seems easier for getting the positive attitude of the customers for the company.”We have allowed various strategies by which customers can contact with the company that has increased the sales of the company and the turnover has increased annually.”

 

Analysis:

From the above discussion with the managers of Tesco plc, it is visualised that by the implementation of these techniques, the company has able to get a positive result from the market and the customers. As stated by the first manager of the company, they have succeeded in expanding their business in all over the world by selling their products in different international markets. With the help of these techniques, Tesco is able to gain the trust of the customers in all over the world. According to me, it is a great success for the company and the business is cultivating new customers all over the world. The second manager stated that Tesco is already a brand and need not any definition for the customers.

I think this not a correct opinion about the company. Every company have a downfall if it is not serving well to the customers. The third manager resembles the success in increase in the sales of the product of the company. I think with the increase in the customer satisfaction for the company, the sales of the product is automatically triggered. I think that expanding the business helps in creating new opportunities for the youth to work for the company and encourages the brand loyalty of the company.

  1. What are the future interventions in the company that you are thinking of to increase the brand loyalty?

 

1st Manager2nd manager3rd Manager
“We are improvising the business model of the company that can attract more customers to the product and services of the company.”“We are focusing on enhancing the quality of the products and services of the company that enhances the customer satisfaction ““We are expanding the business in other countries and trying to penetrate into the international markets and serve the customers with our products and services.”

 

Analysis:

As the statements given by the managers of the Tesco, it can be analysed that the Tesco is looking for the future intervention on the market. It is expanding its business all over the world to sale its products. As stated by the first manager, the company is enhancing the business model in order to improve the quality of the products and services of the company. The second manager also statewd the same as they are looking for enhancing the customer satisfaction that can increase the customer engagement in the company. The third manager stated that the company is looking for the penetration on the foreign markets and serve the customers with their products and services.

I think that overall Tesco is expanding its business in the world which is a good thing for the market and the customers. The quality of the products and services offered by Tesco is of high quality and they are trying satisfy their customers. I think the future intervention of the company is bright and the company is working for the betterment of the customers that helps in enhancing the brand loyalty of the Tesco.

  1.  How can you assure about the satisfaction of the customers?

 

1st Manager2nd Manager3rd Manager
“We frequently organise surveys on the customers to get the feedbacks of the customers about the quality of the products and services of Tesco plc. ”We have a separate box in our website where the customers can comments on any particular products and services”According to me, the increase in the sales of the products of the company signifies that the customers are satisfied with the company and are showing their loyalty to the company.’

 

Analysis:

From the above statements of the managers of the Tesco, it is analysed that the Tesco has sense of improving the relation with the customers. As stated by the first manager, the company is organising many surveys that helps in gathering the feedbacks of the customers. The second managers stated about the technological point of view of the company by allowing the customers top comment and review their product on the website of the Tesco. The third manager explained about the increase in the sales signifies the satisfaction of the customers.

In my opinion, customer feedback is most important in knowing the level of satisfaction of the customers for the company. The customers provide their feedbacks about the product and services of the company that makes them aware about the positive and negative view of the customers.

  1. How the company is eradicating the issues of the customers?

 

1st Manager2nd Manager3rd Manager
“We have a separate CRM department in the company that is responsible for the managing the problems and issues of the customers.”We have many service technician who provides door service to the customers in case of any emergency.”“We are organising many campaigns where the customers can put their complaints and issues regarding the products and services of the company and steps are taken to resolve that.’

 

Analysis:

From the above statements of the managers of the Tesco, it is analysed that Tesco is taking various steps in order to eradicate the issues and problems of the customers. As stated by the first manager, there is a separate CRM department in the company. The CRM department used to maintain a good relationship with the customers by resolving their issues and problems regarding the products and services of the company. The second manager stated that the company has appointed many technician that provides door to door services to the customers and the third manager stated that the company has organised many campaigns where the customer can register their problems and issues regarding the products and services of the company and immediate actions are taken to resolve the issues.

In my opinion, Tesco is performing a great job in resolving the issues of the customers. The CRM department of the company have trained employees who can eradicate the issues of the customers. I think providing door to door services to the customers helps in proper identification of the problems in the products and resolving it. I think organising a campaign for identifying the problems and issues of the customers is a good approach of the company and the customers are getting benefited from it.

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