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l sample description; The second part is on the investigation of latent Variables, which are factors of loyalty cards impacting TESCO supermarket’s customer loyalty and the dependent variables, which means TESCO supermarket’s customer loyalty degree. The questionnaire includes a dependent variable and six latent variables, totally 27 indicators. In the design for measuring one dependent variable and six latent variables’ 27 indicators, the author refers the previous Scholars’ samples, but optimizes the design.

A timetable of the various stages of your research;

Items Time
To decide a topic January, 2010
Review of literature and complete a research proposal February, 2010
Collect secondary data and start to write introduction March, 2010
Write up literature review and prepare the interviews April, 2010
Literature review and data analysis May, 2010
Write up results and conclusion June, 2010
First draft of project report completed July, 2010
Final writing of project report August, 2010

A brief overview of some of the key literature relevant to your topic
 Customer loyalty
In English, the word “loyalty” is derived from French, refers to people's evaluation on systems, rules and habits compliance (Andrew, Leigh, Susan, Nikolao, Cretu and Roderick, 2003); also derived from Latin, emphasizes that the extension and development of human beings’ legitimacy activities (Anne, 2003). In the Chinese language, it refers to the dedication and performance of people the people or groups, and refers to faithful reliability, focuses on the sustainability of specific acts.

Customer loyalty is the forefront area of international research of marketing theory, especially in the mid-1990s of the 20th century (Brodie, 2007), the research on customer loyalty becomes another hot point after customer satisfaction (Arch and Martin, 2007). Academia has done a great deal of research on customer loyalty, scholars at home and abroad through theoretical research and empirical analyses consider enterprises’ customer loyalty strategic significance as follows: first to increase revenues. Second, to reduce marketing costs. Third, to win new customers. Forth, to obtain market information.

 Loyalty card
Loyalty card scheme are one of the CRM’s most popular strategies which have attracted much interest from various companies (Chiara, 2003). Customer loyalty programs have already permeated people’s life such as railways, petrol station, restaurants, and supermarket (Berry, 2005). Loyalty cards become part of people’s life and the frequency of use loyalty cards in payment are gradually increased. There are two main major role of loyalty cards program one of them is that retailers can obtain large amounts of valuable information through the loyalty club cards. The second one is that customers can benefit from joining in several ways (Doncy and Cannon, 1997).

References

Andrew Smith, Leigh Sparks, Susan Hart and Nikolaos TzokasAnca E. Cretu and Roderick J., 2003, Retail loyalty schemes: results from a consumer diary study, Journal of Retailing and Consumer Services, Volume 10, Issue 2, March 2003, Pages 109-119

Anne W. Mägi, 2003, Share of wallet in retailing: the effects of customer satisfaction, loyalty cards and shopper characteristics, Journal of Retailing, Volume 79, Issue 2, 2003, Pages 97-106
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