Consumer Buying Behaviour- Asda

TITLE:

Exploring the relationship between the customer loyalty and brand preference: ASDA’s own and non- own brands.

AIM:

        To figure out the customers attitude towards the ASDA’s own and non-own brand products with respect to the customers loyalty and brand preference.

OBJECTIVES:

1. To evaluate the values of customer loyalty and ways of assessing the customer loyalty in terms of the ASAD’s own and non-own products.
2. To investigate the relationship between customer loyalty and the brand preference.
3. Measure and assess the effectiveness of customer loyalty in choosing the ASAD’s own brand products.
4. To review the customers buying behaviour on the basis of customer loyalty and brand preference.

CHAPTER - 1

Introduction

In the 1990's and in the 21st century particularly, the companies have recognized the importance of the customer loyalty to a great extent. This was the time when the market saw a considerable rise in the competition. Customer loyalty is the one of the key concepts which is brought out by the organizations to keep them in the race and compete with the competitors (Manzie R. Lawfer, 2009). At present, building good relationships with the customers is a generally accepted trend, with the conventional marketing activities taking a backseat. Customer relationship has been the essence of the retail stores to increase the profits and expand the market share. In the present day world retaining the customer has been a significant aspect rather than expanding the market share and this job is done by the customer loyalty relationship management.  Marketers who used the offensive marketing strategies to attract the new customers and to retain their existing customers were disappointed. The companies usually spend about 80% of their funds for advertising and 20% on the product innovation. Out of the 80% they spent they get only 20% people who are the potential customer who are responsible for 80% growth. When you discover the 20% of your customers who are loyal it helps the business to develop with less marketing budget (Richard Koch’s, 2008).  These strategies led to an unfair rivalry among the firms to such an extent that a firm's revenue has been badly hit. Therefore the companies have focussed on the customer loyalty and the relationship marketing and finally built control measures to build customer loyalty retention and satisfaction. Now eventually the offensive marketing and the old fashioned serial mass marketing has come down to a great extent. The organizations have also decreased the investments nearly to zero on this kind of old fashioned marketing. In time this has proved to be more profitable to improve productivity and its market share.