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Building Brand Webs: Customer Relationship Management Through the Tesco Clubcard Loyalty Scheme

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Journal Article: Building Brand Webs: Customer Relationship Management Through the Tesco Clubcard Loyalty Scheme
Group Topic: Customer Relations and the Food Industry

In this journal article, the author, Rowley, examines the use of loyalty schemes and the role that they have in developing a customer relationship with the brand distributing, or communicating with the loyalty scheme. The role of loyalty schemes in branding is also examined alongside their effectiveness of keeping customers loyal. A central argument that is portrayed is ‘Do loyalty schemes work?’ (Rowley, 2005:194). This is assessed on their effectiveness on the way the brand or organisation is perceived and the way customers behave towards the brand.
The theory that Rowley basis her argument around is that ‘relationship marketing acknowledges that a stable customer base is a core business asset’ (2005:195). The role of theory in this instance is used to help understand the use of loyalty schemes and the relationship they build with the customer and the brand. So by a brand opting to use a loyalty scheme, they can effectively get to know their customers. This can result in a stable customer base for them, therefore benefiting the business or brand in many ways.
Another theory that is used in this article is that customer loyalty cannot be bought through such schemes, rather it is developed overtime through a sense of customer satisfaction and value.
A number of different perspectives are looked at in the article. These are integrated with the research the author conducts, the case study of The Tesco Clubcard loyalty scheme. These perspectives contribute to different outcomes as to whether a customer relationship is formed or enhanced between the brand. For example when she examines the interaction between Clubcard members online, she concludes that ‘a rich environment for

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