How do loyalty cards encourage sales and boost customer loyalty? A Tesco Plc case study

Module code and title:	BM634 Research Methods		DorinFesteu
Assignment No. and type	CW1: Dissertation		100%
Submission time and date	Before 14.00 Friday, 10th June 2022		After 14:00 Friday, 8th July 2022

How do loyalty cards encourage sales and boost customer loyalty? A case study of Tesco Plc

Executive Summary

The chapter of introduction has involved setting aim and objectives and the rationale for conducting the research has been discussed. Literature review in the project has highlighted the numerous spheres and roles playedbyloyalty cards in boosting sales in the retail industry. It highlighted the concept of loyalty cards and the customer retention theory. The next part examined the role, advantages and disadvantages of loyalty cards in the retail sphere. It has been effectively engaged within the discussion that the introduction of the loyalty card programs helps the organisation to attain the trust of the consumers as well as gain a significant profit margin. Furthermore, certain challenges are being faced by the organisations to effectively offer the loyalty card programs to the consumers as well as establish the benefits of the same. Certain strategies are undertaken by the organisation to effectively implement as well as offer the consumers loyalty card programs. The last part discusses the literature gap in the piece. In the methodology chapter the methods that has been followed for data collection and sample selection was evaluated. Primary quantitative data was collected from a sample size of 15 participants and secondary qualitative data was collected for understanding the research phenomenon.

1. Introduction

1.0 Background

Sustaining a business makes it essential for a firm to ensure customer loyalty and offering customer loyalty programmes must be a crucial priority of the organisations before they aim for enhancing profits. Customer satisfaction levels can be elevated with these programmes frequently making the potential customers buy products from the company (Ranabhat, 2018). Loyalty cards are strategies or a form of loyalty programme that organisations across the world have been adopting for decades for increasing the perceived value of the firm, boosting sales and customer loyalty. Loyalty programmes are considered to be directed towards improving the tenure of relationships that organisations have with customers and enhancing business results (Kwiateket al., 2020).

There are several benefits associated with loyalty programmes or loyal cards for an organisation. According to Kihlstorm(2018), loyalty programmes are efficient for customer retention and maximise the lifetime value of the customers. It allows an organisation to increase their revenue by inspiring customers to make purchases more often from the organisation. If an organisation is successful in ensuring customer loyalty it turns out to be a win-win situation for the brand. Customers remain happy with the rewards and perks and enhance their experience with the organisation. The same helps boost the revenue and elevate the loyalty of a customer toward the brand.

1.1 Organisational Background

Tesco Plc is a renowned organisation selling groceries in the UK along with other products. Jack Cohen founded the organisation in the year 1919 in London (Tesco plc, 2022). Tesco had 367321 employees working under them in the year 2021. Presently the CEO of the company is Ken Murphy. The annual revenue that has been generated by the organisation was found to be $75.022 billion. This was a fall from the revenue generated in the year 2020 by 9.37% (macrotrends, 2022). Tesco Clubcard is their loyalty card where customers acquire on point for nervy 1 pound spent by them. The scheme is on since 1995 and there is another card named Tesco Clubcard Plus that costs pound 7.99 monthly and with the help of the same, the customers can receive a discount of 10% on their every shopping monthly and also 10% off on selected brands from the organisation (Simmonds, 2022).

1.2 The rationale for research conduction

This research will be conducted with the purpose of evaluating the possibility of encouraging customers with loyalty cards. It will allow identification of practices by employees in Tesco apply for customer loyalty with support of the loyalty cards. Nearly 69% of the citizens in Britain find loyalty points, rewards as beneficial (thewisemarketer, 2020). They prefer staying members of loyal programmes by organisations. In research, it has been found that 54% of customers in Great Britain prefer point-based loyalty schemes. The market share of Tesco keeps fluctuating with a 28.2 % share in 2017 and a fall in the next month in Jan 2018 with 27.9% (Statista, 2022). This is an indication of the fact that the company is incapable of retaining customers effectively. Retention of loyal customers is, therefore, an issue for the company. Thus, this research will help in developing insight regarding how efficient the management in Tesco Plc has been in embracing loyal cards for accelerating customer loyalty and elevating the sales of the firm.

1.3 Significance of the research

The findings of the research will be beneficial for organisations like Tesco in increasing sales and revenue and increasing customer loyalty. Identification of the strategies for enhancing offerings of loyalty cards by organisations will allow Tesco Plc to adopt those practices to retain customers, satisfy then mand boost the sales of the firm. Business growth of similar firms can be ensured by embracing those strategies. It will also remain beneficial for the researcher conducting the research and enhance the individual's scope for being employed in reputed organisations in managerial positions.

1.4 Research Aim

This research has the aim of analysing the ways sales can be boosted and customer loyalty elevated by the use of loyalty cards in Tesco Plc

1.5 Research Objectives

• To develop an understanding of the concept of loyalty cards and the benefits associated with them from various literary sources.

• To critically evaluate the advantages and disadvantages of using loyalty cards for enhancing customer loyalty and elevating sales.

• To identify the challenges that management in Tesco Plc encounter in customer retention despite the effective implementation of loyalty cards in the organisation.

• To recommend strategies to enhance the offerings of loyalty cards by Tesco Plc for retaining customers and boosting their sales

1.6 Research Questions

• What is the concept of loyalty cards and what are the benefits associated with it?

• What are the advantages and disadvantages of loyalty cards in enhancing customer loyalty and elevating sales?

• Which are the challenges that management at Tesco Plc face in customer retention despite the effective implementation of loyalty cards in the organisation?

• Implementation of which strategies can enhance the offerings of loyalty cards by Tesco Plc for retaining customers and boosting their sales?

1.7Structure of the dissertation

The initial chapter of the introduction has involved providing a background to the research and the selected organisation. Aim and objectives of the research have been stated in the chapter and the rationale for conducting the research has been provided along with the significance associated with the same. The chapter of the Literature review will involve exploring a wide range of literature for explaining the research phenomenon in-depth to develop a holistic knowledge about the same. Next, the research methodology chapter will be explaining and evaluating the strategies to be considered for data collection and analysis of the research. The validity and reliability of the research methods to be used will be discussed. This will be followed by data collection and representation of the findings. The chapter of the discussion will involve interpreting the findings and investigating whether the objectives of the study have been achieved. Lastly, the chapter conclusion, will involve concluding the overall findings of the research and identifying the limitations of the study.

2. Literature review

2.0 Introduction

Literature review as stated by Paul and Criado, (2020), refers to the academic writing that demonstrates clear knowledge of a chosen topic via attributing it to a critical sphere. In this literature review, a detailedanalysiswill be performed on the concept of loyalty cards andcustomerexperience. It will be followed by the discussion of the role, advantages and disadvantagesof loyalty cardsand their role in improving the sales of organisations. The next part of the literature review will highlight the challenges, strategies, conceptual framework and gap of the chosen topic.

2.1 Concept of loyalty cards and customer retention

The attribution of loyalty cards help in the increment of the customerengagement in a retailstore and leads to improving the loyalty of the same. According toThemistocleous (2018), loyalty cards are provided to the regularcustomer by the retailers thatattribute electronic points being started in the card and can be laterredeemedby the same. Loyalty cards are helpful to exchange goods and services catered by the brand and can be effective to improve the engagement of the customers. The author failed to point out the numerous forms of loyalty cards provided by the retail companies to boost engagement levels. Khairawati (2020) stated that loyalty cards are widely used by organisations to reward customeractivities and record their respective purchasing information to maintain engagement. Several organisations attribute loyalty cards as a credit card shape or prove it in a key chain sphere. It allowstheorganisationsto track the purchasingpatterns of the buyers and use the information to divert and maintain their awareness and engagement levels.

Customer retention as stated by Sabbeh (2018), refers to the ability of an organisation to maintain the attraction and loyalty of the consumers and prevent their respective switching in the competitive sphere. It is important to measure the success rate of the companies at the acquiring of the new consumers and the respective measures adopted by the same to bringabout effective satisfaction. Customerretention is important to increment the lifetime value of the retail sphere and boost the respective revenue by attracting several customer spheres effectively. CRM (Customer Relationship Management) as pointed out by Ngelyaratan and Soediantono (2022), forms an important sphere of modern business and diverse industries.

It relates to the growth of the relationship between an organisationnamed its customers thatfocused on the determination of mutually satisfactory goals to increment the overall profitabilityspheres.The main idea behind the theory leads to the attribution of profits for the organisations and high-quality services and products for the customers to maintain good engagement levels. Implementation of CRM practices can transform several operational spheres in organisations. Juanamastaet al. (2019) stated that CRM can shift the entire focus on the operationalsphere of an organisation and highlight the customer expectations and needs. It streamlines the customer requirements and disregards the capacity of the business and highlights the competencies required to boost the engagement of the same.

2.2 Role of loyalty cards

Loyalty cards are designed to boost the productivity and attractiveness of the products and services of a brand. According toRao and Kotian (2018), loyalty cards are widely sponsored by the retail industry that offers rewards and discounts and incentives that aim to attract and retain new and existing customers respectively. Loyalty card plays an important role in encouraging repetitive business and offers rewards for the customers to improve brand loyalty. The author fails to highlight the role of the loyalty cards in addressing and storing the purchasing and spending behaviours of the customer to initiate incentives for the same.

Loyalty cards as proposed byKon?aret al. (2019) help to provide the customer with advance notice of the new products and get early access to sales. Often the customers are notified of free merchandise and special services and discounts to maintain the loyalty of the same.Loyalty cards perform the two key functions of rewarding the customer for the respective repetitivepatronageandparing the organisationwithconsumer data. Integration of the loyalty card in the everydaypurchasingattribute of thecustomer can be beneficial for a brand to ensure the repetition of the old customers and theacquisitionof the newersphere without any additional investment in themarketing channels.

Loyalty cards can be useful to increment the overall profit of a retail business and can be effective to regulate sustainable growth for the same. According toChaudhuri et al. (2019), a well-designed loyalty card can help organisations to retain the existing customers and attract newer spheres in the target market, reduce the employee turnover rates and drive quantitative profits. Loyalty cards led organisations to initiate and formulate discount schemes that can be effective to motivate the existing customers and pursue newer goods and services. They attribute incentives to the products availed by the customers and encourage the same to divulge expenditures to gain rewards in the long run.

2.3 Advantages of loyalty cards

Loyalty cards are the incentives initiated and formulated by organisations to reward the current customers and attract the newer ones to increment the overall profitability of an organisation in the competitive sphere. According to Stalidiset al. (2018), loyalty cards can be helpful to reducetheoveralloperationscost for marketing the attributedproducts and services to a larger target market. The creationof loyalty cards can reducethe effective cost of marketingforbrands and focus on attracting and retaining the existing customers topromote the brand significance in the larger spheres. The overall boost of the profit rates of an organisation can be determined to be the major advantage in availing loyalty cards in the consumer market. Attribution of constantloyalty points and inclusive coupons can be helpful to increment the inclination of the customers towards the brand and influence them to make larger expenditures. As stated by Dolšaket al. (2019), loyalty cards play a significant role in incrementing the respective brand reputation via implementingattractive deals and rewards. The attribution of proper value towards thecustomer can be helpful to make the customers feel connected and favourable towards the brand and enhance the positive connections.

Loyalty cards can be effective to track the customer buying and spending attributes. It can help the organisation to inculcate better marketing concepts and avail influential promotions. This can be helpful for a brand to conduct better research on the target market and find out the respectivedemographics to boost sales. Lakshman and Faiz (2021) marked that loyaltycards are important to enhance the customer retention of a brand. This can be helpful to bring about surplus profits for organisations and increment the overall productivity and profitabilitysphere in the competitive market effectively. Customerretention is considered a more cost-effective sphere than the acquisition of new consumers in the target marketand can help a brand to boost growth.

2.4 Disadvantages of loyalty cards

Despite the several customerattraction and retention advantages attributed to the brand, loyalty cards have several disadvantages that can decrement the overall growth of the retail industry. Loyalty cards as pointed out byHood et al. (2021), can lead to potentially endangering the business growth of the organisation via the collection of sensitive information of the customers. This can be disregarded and feel offensive to the customer and led to their disagreement to paveinformation for availing incentives in the business. Loyalty cards can decrement the overall appeal of the marketing campaigns and raise the difficulties in the purchaser's habits to buy the product at regular prices. This can reduce the long term profit of the organisationdue to the behaviour of the customers to availregular sales and discounts. Loyalty cards as recognised byBanach (2021), can decrease the overall brandvalue of the product and the services catered to the consumers and drive the profitability graph negatively.

Loyalty cards have a significantdisadvantage in the market saturationpresent in the retail market. Numerous brands use loyalty cards extensively which can result in losing the overallappeal to the customers. As pointed out by Rains and Longley (2021), several organisations are unable to withdraw their loyalty programs to retain their sale in the competitive sphere. Loyalty cards are attributed to providing inconsistent profitability in the business due to the income, needs and lifestyle transformations in the customers. It is heavily dependent on the buying patterns of the customers and can significantly regulate the profit rates of organisations. Moreover in the modern sphere of the digital age, signing up for the loyalty programs the customers is harassed with multiple span emails, messages and phone calls. It can be detrimental for the organisations and decrease the brand loyalty in context to the customers and hamper the overall sales.

2.5 Role of the loyalty card in improving sales

It has been developed through various statistics and surveys that loyalty card programs that are well designed as well as executed can help the organisation to attract and retain consumers. As opined by Alshurideh (2019), designing effective loyal card programs helps the organisation to ensure their potential consumers about the better offering values of the products and services that are being initiated by the same. With an effective loyalty card, the organisation can ensure a better connection with the consumers as well as increase the value of the consumers within the same. Furthermore, with the development of effective loyalty card programs, the organisation can ensure to have a better value of the consumers as well as develop innovative strategies to attract the same.

The initiative of the loyalty card programs enables the organisations to provide the consumers with the referrals codes where they would be benefitted by referring the same to their mates or family. As per the idea shared by Chen et al., (2021), when consumers attain the program of loyalty cards and refer the same to their family and friends they become more loyal and help the organisation to gain more profit. This also proves the trust of the consumers towards the organisation as well as the products and services attained by them. Therefore, it can be effectively stated that the role of the loyalty card programs that are usually initiated by the organisation for the consumers highly benefits them to gain the trust of the same. Within the parameter of an organisation, the loyal card programs play a very significant role in the effective development of their sales structure. It can also be stated that certain challenges are being faced by the organisation while making effective implementation of the loyalty card programs.

On the contrary, Alshurideh et al., (2020) have stated that loyalty card programs highly acts as a stool that helps the organisation to build their customer relationship management where they can build an extensive relationship with the consumers as well as the consumers. Moreover, with the effective initiatives that emerge within the loyalty card programs the organisation can gain effective insights into the consumers which provides the consumers with a higher number of benefits. As per the viewpoint of Rains and Longley, (2021) attaining valuable data and information become highly possible with the help of the loyalty card programs that are being provided to the consumers. After gaining valuable data and information about the consumer's needs and preferences, the organisation can conduct various experiments with the reward schemes for both the employees and the consumers.

One of the major roles that are being performed with the help of the loyalty card programs is building effective as well as detailed consumer profiles which enable the organisation to make efficient target audiences. Therefore, the introduction and the role of the loyalty card programs highly contribute to the organisation with the opportunity to enlarge the targeted as well as a potential consumer base. This would also benefit the organisation to gain a higher profit margin and improved the structure of the sales and finance.

2.6 Challenges of implementing loyalty cards

Irrespective of the loyalty card programs being one of the best marketing strategies that can be taken up by the organisation, the same can sometimes cause revere effects which highly impacts the overall performances of the organisation. As per the viewpoint of Simone and Sabbadin (2018), effective development of the strategies that would offer personalised rewards and benefits within the loyalty cards programs sometimes becomes highly difficult for the organisation. Furthermore, with this, the management of both the relationship with the consumers and the services that are being provided to them becomes disturbed. One of the major challenges that are being faced by the organisation while effectively implementing the loyalty card programs is the accessibility by the consumers. It has been determined after a handful of research that some of the consumers feel that the loyalty card programs are very complicated when being effectively used. Furthermore, many organisations have highly faced difficulty in conducting effective relationships with the consumers by the initiation of the loyalty cards programs. This can be eliminated by developing the design process of the loyalty cards more simple as well as assessable within all types of devices.

However, it has been established by Aiolfiand Sabbadin(2019), that effective implementation of the loyalty card programs requires the organisation to become more personalised for each of the consumers which are sometimes difficult to determine. Another challenge that is being faced by the organisation while making effective implementation of the loyal card programs is the confusion that can emerge in the future within the minds of the consumers. It has been seen that many consumers do not understand the benefits that they may receive from undertaking loyalty cards programs. Nonetheless, this can be effectively solved by making the target audience make extensively aware of the organisational rules as well as the benefits that they will highly receive.

On the other hand, Rao and Kotian, (2018) have explained that the organisation faces trouble concerning that the consumers will become bored using the same card over and over again as well as with similar kind of benefits. This is one of the biggest challenges for the organisation in making effective implementation of the loyalty card programs where they can structure new rewards and benefits on either a monthly or quarterly basis. Therefore, it can be stated that along with the immense number of benefits and advantages, several challenges are being faced by the organisation to implement the loyal card programs.

2.7 Strategies used by organisations in offering loyalty cards

The development process of the loyalty card programs requires the development of various strategies that would effectively attract the consumers in a loop. As developed by the viewpoint of Aluri et al., (2019), emerging analytics and analysing the various predictive data of the consumers can be very beneficial for the organisation to effectively build loyalty cards programs. Before offering the loyalty card programs to the consumers, the design of the same is important to maintain. Furthermore, in the effective creation of the loyal card programs, attaining an appropriate and effective name is very important which has significant meaning aligning with the goals and objectives of the organisation.

Within the policy of the loyalty card programs, it is important for the organisation to effectively offer a variety of offers and make a point value system that would highly attract the attention of the consumers. Additionally, effective usage of the customer relationship management process that is being implemented by the organisation within the loyalty card programs also would benefit the development of various strategies. This is because the stored data of the consumers within the systems of the organisation enables them to determine various insights, data and information of the consumers. Furthermore, with the help of the insights, data and information of the consumers, the organisation can effectively offer personalisation on the loyalty card programs.

On the other hand, Nastasoiu and Vandenbosch, (2019), have stated that providing consumers with personalised rewards is considered to be one of the greatest strategies to offer loyalty card programs. This is would not only benefit the interest of the consumers but also make it difficult for the competitors within the marketplace to replicate the same. However, while offering personalised loyal card programs to the consumers it is important for the organisations to effectively influence the consumers to make a purchase for which they can effectively gain coupons. Another effective strategy that can be taken up by the organisation in offering the loyalty card programs is to provide the consumers with a detailed mail considering the benefits of the consumers.

It has been established by Barbu and Tiganoaia, (2018), that making effective targeting segments of the consumers, determining their preferences and constructing an effective mailing system would help the organisation to effectively influence the same to take the loyalty card programs. Lastly, within the loyalty card programs, the organisation can strategically ask for feedback from the consumers which show them that their thoughts and ideas are valuable to the organisation as well as build an effective communication system. However, with the development of effective strategies, the elimination of the challenges can also be done by the organisation. These strategies also help the organisation in developing various effective means and methods to offer the consumers the loyalty cards programs as well as influencing them to undertake the same. Lastly, various theories can be taken up by the organisation to effectively attain and make efficient use of the loyalty card programs

2.8 Conceptual framework

Figure 1: Conceptual Framework

(Source: Created by Learner)

In order to effectively gain the loyalty of the consumers, the organisation needs to determine the benefits that would be shed upon them as well as the consumers from the same. Furthermore, within the above-stated discussion, both the advantages and disadvantages of the loyalty card programs to both the consumers and the organisation are being discussed and analysed.

2.9 Literature gap

The literature gap failed to highlight the implementation of modern technologies in shaping the customised loyalty cards for the consumers. It failed to shed light on the potential issues and threats faced by the customers due to the retracing of sensitive information from the loyalty cards.

3. Methodology

The chapter on methodology will involve discussing the approaches and research design that has been followed for conducting the research. It will document the methods that have been selected for data collection and analysis and justifications for using the same. Ethical considerations for the research to ensure that this research does not involve any wrong practices will also be stated in this chapter.

3.0 Research Philosophy

In general research, philosophy can be divided into two broad headings and they are positivism and interpretivism. While positivism is a philosophy that tends to incorporate objective ways of collecting data and explaining a phenomenon in interpretivism adheres to subjective constructs for the same. This research has involved following a positivism philosophy for understanding the impact of the loyalty card in boosting sales of Tesco Plc and their customer loyalty. Positivism philosophy believes that data when collected through observation and measurement can be considered dependable. Additionally, this philosophy abided by the fact that science is value-free and need to be judged using rationale. It is based on an empiricist viewpoint and believes that knowledge arrives from the personal experiences of a human being (Marsonet, 2019). This research philosophy helps in explaining the impact of one variable over others and enhances the objectivity of research.

An interpretivism research approach was not selected for conducting the research as it believes that access to reality can be gained with the help of social constructs like shared meaning, consciousness and language (Ryan, 2018). Using this research philosophy can lead to weak predictions thus poorly impacting the results of the research limiting the ability to generalise the findings.

3.1 Research Approach

The research Approach can be classified as inductive deductive and abductive but for this research, the approach that has been abided by is the deductive approach. As this research aims to find the impact of loyalty cards in boosting customer loyalty and sales in Tesco a deductive approach was considered due to its ability to explain causal relationships. Hypotheses or Assumptions are formulated in a deductive approach and the research leads to confirming or rejecting the initial hypothesis formulated. Although this research approach has a limited scope of encouraging divergent thinking it has been used due to its objectivity (research-methodology, 2022). The inductive research approach is contrary to this approach and involves collecting data through initially observing a phenomenon and formulating theories in the end. Although this approach encourages divergent thinking where concepts and themes can be created it is subjective and leads to the incorporation of bias within the study (Kyngäs, 2020). The same can lead to false or wrong conclusions if the observations are not appropriate therefore this approach was not involved.

3.2 Research Design

This research has involved using a descriptive research design which has the aim of gaining information for describing a situation, population or phenomenon in a systematic order. This research design gives the possibility of effectively issues and topics that are non-quantified. The descriptive research design provides an opportunity for the incorporation of both quantitative and qualitative data collection methods (Atmowardoyo, 2018). An exploratory research design was not referred to as it involves merely exploring and not leading to conclusive evidence (research-methodology, 2022). This type of research design lacks standardised analysis and mere exploration without in-depth analysis can lead to results that are inconclusive. Bias is another complementary to this research design as data is generally collected from secondary sources which can be outdated and old. Therefore, a descriptive design has been chosen for explaining this research topic due as it allows observing a phenomenon in an unchanged and natural environmental setting.

3.4 Methods to be used

This research has collected primary quantitative and secondary data for exploring the impact of loyalty cards in boosting sales and customer loyalty in Tesco. Primary data collection was chosen because it allows the collection of updated information about the topic being explored in research and allows collecting immediate information. Quantitative data collection procedure involves numerical data collection and analysing the same using mathematics and statistical methods. Relationships between the variables involved and outcome can be drawn with the help of quantitative standardised methods of data collection (Rutbergand Bouikidis, 2018). A quantitative data collection procedure is objective and enhances the researcher’s ability to generalise the findings. A survey will be done for data collection as it allows for the collection of a large amount of data in comparatively shorter time duration. Numbers can be assigned to the data using a survey and the same makes the calculation process easier.

Secondary qualitative data has been collected from existing sources like websites, newspapers, journals and articles that have been published. The secondary data collection process has the advantages of increasing the reliability of the findings as well as its validity. This is because even if the data collected in the secondary research is not timely they are from sources that can be trusted and are authentic. Qualitative secondary data was collected which involves understanding a phenomenon by in-depth analysis using constructs like emotions, language and perspective of others to understand a phenomenon. Qualitative data although can increase the subjectivity of the study it helps develop a holistic knowledge about concepts being explored (Basiasand Pollalis, 2018).

The quantitative data of this research were analysed using numerical data analysis technique allowing the data presentation in an organised fashion for the ease of understanding the same. MS. Excel makes the process of calculation easier by automatically allowing to complete the same (excelchamps, 2022). Even graphs and charts can be easily made using MS Excel. Through the use of this frequency or numerical analysis, data has been represented using prominent graphs and tables for the convenience of the researcher and readers to comprehend the data. As qualitative data can be best analysed using thematic analysis technique has been followed for secondary data analysis (Sundleret al., 2019). In this analysis technique, the research themes are identified and this is followed by analysing them. Additionally, thematic analysis is a flexible technique allowing analysis of qualitative and quantitative data for developing holistic insight into the topic. Boolean search strategy has been used to ensure the data are being gathered from relevant sources.

3.5 Sampling

Primary data will be collected from 15 participants that are employees from marketing and sales department of Tesco Plc and the process of selection will be simple random sampling. This sampling technique involves giving equal chances to evet member belonging to the population group to be selected as a participant of the research. A random probability sampling is a fair and unbiased sample selection procedure that ensures providing the researcher with a perfect representative of the population. A purposive sampling selection was not done as it deals with selecting sample-based completely on the judgement of the researcher which can incorporate bias in selecting research sample and impact the findings negatively (Etikan and Bala, 2017).

3.6 Criteria for selecting participants

The criteria for selecting participants for the research will have to be employees from Tesco Plc and must be knowledgeable for providing data of the research. Additionally, participants from varied age groups have been included so that perspectives of both earlier and new generations could be incorporated into the research. This was done for ensuring that the ways loyalty cards impact customer loyalty and boost sales can be understood in detail.

3.7 Ethical Consideration

In research ethical implications involve using humane and moral practices for conducting research and ensuring that it does not hurt participants involved in the research and the society at large (Bos, 2020). This research followed Data Protection Act and the collected data for the primary research were stored carefully so that others do not have access to the same. Prior consent of the participants was taken before administering the survey to ensure that they agree to participate in the research project. Confidentiality of the collected data was maintained and the data was used only for understanding the research phenomenon being studied. Additionally, this research has ensured high objectivity standards and there has been no data manipulation.

3.8 Validity and Reliability

Participants of the research were employees from Tesco therefore it can be estimated that the data obtained from them can be trustworthy and reliable. Secondary qualitative data has been accumulated from websites and articles that are published and from authentic sources like Goggle scholar, renowned newspaper and company websites. Thus, this too is likely to increase the reliability of the findings that are obtained by using this research methodology. Even the sampling method that has been followed is a randomised one which eliminates the possibility of any form of bias incorporation in sample selection.

3.9 Chapter summary

From the methodology chapter, it can be stated that a positivism research philosophy has been considered along with a deductive approach for explaining ways loyalty cards increase sales and boost customer loyalty at Tesco Plc. A descriptive design was followed here for explaining both numerical and qualitative findings of the research. The survey was administered to 15 participants for the collection of primary data and the sample section technique was simple random sampling. Secondary qualitative data was collected from authentic published sources available freely from google scholar and trustworthy websites. For ensuring that the research abides by ethical practices prior consent of participants were taken and data provided by them were kept well protected.

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