Customer Loyalty in the UK. What Causes Consumers to Be Disloyal to Big Supermarket Brands?

Seminar paper from the year 2016 in the subject Business economics - Offline Marketing and Online Marketing, grade: B, University of Bedfordshire, course: MBA (HEALTH SERVICES MANAGEMENT), language: English, abstract: This seminar paper will explore about the consumer behaviour and their loyalty to the big supermarket in the United Kingdom. This paper will also critically examine whether the consumers are switching their loyalty or not and what might be the key issue of doing so. In addition, the paper will recommend to the supermarket regarding the way of consumer’s loyalty retention as well. Customers are the most important part to the various renowned supermarket companies rather than their own competitors in business in United Kingdom. Consumer behaviour is the key point to choose the market products in the supermarket. There are normally three stages of consumer behaviour for instances pre-consumption, consumption and post-consumption (Solomon, Russell-Bennett and Previte, 2012). Consequently, it is highly significant to focus continuously on customer behaviours in their each stage. However, consumer behaviour is radically changeable at least three times a year seeking best service from the retailer market. Consumer reliability is the crucial point for retailers making profit and expansion of their business. At present, all large supermarket companies in United Kingdom are showing priorities to build strong relationship with their consumers and it is known as consumer loyalty. Therefore, business competition is growing remarkably within the supermarket like Sainsbury, Tesco, Morrison, Asda in the United Kingdom. Similarly, consumers are easily able to move their loyalty from one super market to another. Belleghem (2013) reported Morrison announced pre-tax loss about £176 million from the market, while discount shop like pound land achieved huge profit in the last couple of consecutive years.