Can retail stores in the UK grocery sector still obtain brand loyalty in the current economic climate?

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ACKNOWLEDGMENT

I would like to thank almighty Lord for granting me the capability to proceed successfully. I would like to thank my supervisor, colleagues, and all those who helped me in completing this thesis, without their assistance and guidance this could not be possible. Last but not least, I would like to dedicate my thesis to all those who believe in the richness of learning



DECLARATION

I adjudge, the content of this dissertation is completely collected and done by unaided effort and the material in it, has not been published ever before. The opinion that is reflected in this dissertation is purely my opinion and does not represent any University's opinion.

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ABSTRACT

This study is focused on whether the retail stores in the UK grocery sector can still obtain brand loyalty in the current economic climate. It uses the interpretive approach and the qualitative research design to address the research problem. The nature of the study is both descriptive and prescriptive as it discusses the concept of brand loyalty, the role of brand image and identity, perceived brand quality, trust, and reliability as factors governing a consumer's loyalty for a particular brand. The literature review provides the basis for describing the current economic climate prevailing in the UK, particularly its being past the recession and experiencing a highly segmented regional/triad basis for the operations of multinational enterprises (MNEs). The study concludes that the analysis of the current economic climate as being under this regional/triad basis rather than globalisation provides evidence for enhancing segmentation and customer service provisions, which enhance brand loyalty. Recommendations for future research include conducting empirical work to validate the assertions made in this study and pursuing an empirical research on the concept of opportunism as a process in international retailing that can serve as a factor for brand loyalty.

TABLE OF CONTENTS

ACKNOWLEDGMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: INTRODUCTION1

Background of the Study1

Brand loyalty3

UK grocery market5

Problem Statement6

Aims and Objectives6

Aims6

Objectives7

Research Questions7

Significance of the Study8

Layout of the Study8

CHAPTER 2: LITERATURE REVIEW10

UK grocery market10

UK Grocery Market and Shifts in Customer Loyalty12

Relationship Marketing and Customer Loyalty12

Product and Brand innovation13

Characteristics of the British Grocery Market14

UK's Grocery retail Industry17

The State of the Current Economic Climate in the UK18

Summary20

CHAPTER 3: METHODOLOGY21

Introduction21

Research Design21

Research Method and Design Appropriateness22

Mixed Methodology23

Secondary Research Methods23

Primary Research Methods24

Quantitative and Qualitative Research Methods26

Target Population and Sample Size29

Instrument30

Literature Search30

Reliability of Sources31

Research Validity32

Research Ethics33

Informed Consent34

Confidentiality34

Limitation of the Research36

Keywords Used36

CHAPTER 4: ANALYSIS AND DISCUSSION38

Introduction38

Descriptive Analysis of the Literature Review38

Recession affect the Brand Loyalty38

Factors affecting Brand loyalty39

Store Image39

Brand and Self Image40

Product's Quality and Cost40

Consumer Perceptions affect Brand Loyalty41

Steps to combat with the economic climate change42

Descriptive Analysis of the Questionnaire43

Gender43

Age43

Summary54

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS55

Recommendations for Future Research56

REFERENCES58

APPENDIX63

CHAPTER 1: INTRODUCTION

Background of the Study

Several challenges have been brought up by the new decade to UK's grocery retailers, paving way for companies to change their strategies periodically in order to survive as well as succeed in this highly competitive market. A big challenge to this is how to ...