An Exploration into The Relationship Between Brand Trust and Use of Loyalty Cards – A Case Study of Tesco

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This dissertation seeks to evaluate the relationship between brand trust and loyalty cards and show the impact of loyalty cards on brand trust of customers. In context to carry out the investigation, it has explained the facets of brand trust, customer satisfaction, perceived value and customer loyalty. The research is a quantitative, deductive study where primary data have been collected from three stores of Tesco Plc., in the UK (Birmingham Region) through the survey questionnaire method.  The research has assumed Uncles’ Research Model (2002) in the background and has modified it according to the objectives of the research. The questions in the questionnaire are mostly close-ended questions based on Likert Scale Rating which has been analysed through factor percentage analysis method. The research has successfully identified 4 factors with various sub factors and established the suggested research framework through justified literature review and data evidences, based on the conceptual model of Uncles’ et al. (2002). It has also accomplished all the  four research objectives showing that loyalty programs are considerably effective in earning trust from old and new customers by perceptible and imperceptible constituents, which can be explained both in behavioural and attitudinal aspects.  This research has also considered several literature gaps which were present earlier and tried to answer several of them.

The main purpose of this research dissertation is to evaluate the relationship between brand trust earned through loyalty cards used in many conventional retail stores. Many companies have now adopted the practice of loyalty cards because they consider this an excellent way of earning trust from customers and creating a special bond with them.This in turn helps in the retainment of old customers and also creates a good reputation in the market. The loyalty card system gives some privilege facilities to the member customers because they get bonus points and discount offers on products. This study will delve deeply into the concept of brand trust, the effects of loyalty cards in relationship marketing and the impact of loyalty cards on brand trust in reality, by considering the case study of Tesco and their Loyalty Club Card facilities for the UK customers. The main aim of the research is to evaluate and find out the relationship between brand trust and loyalty cards. It will identify and evaluate whether loyalty cards can confer brand trust in the customers. To fulfil the main aim, the following objectives will be further accomplished;

• To investigate the impact of loyalty cards on brand trust of customers by a questionnaire analysis of Tesco club card members from three different stores in the UK
• To critically evaluate the effectiveness of loyalty programs in increasing the perceived values and customer satisfaction which contributes to brand trust
• To test the hypothetical assumptions regarding the relationship between loyalty programs, perceived values and brand trust
• To prove that loyalty programs offer a good index of customer brand trust
• The survey results will be interpreted through percentage analysis and deductive reasoning, thus proving the suggested theoretical assumptions