Customer Satisfaction - Tesco

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Chapter 1. Introduction

Chapter 1. Introduction

“Satisfying the customer is a race without finish.” (Vadim Kotelnikov). Many researches and academicians have defined customer’s satisfaction in their own way. Satisfying customers is always a challenging job for anyone. Customer satisfaction means providing goods and services to the customer which meets their level of expectation. So, neglecting customer and their demand can be dangerous for the existence of the organisation. That is the significant reason why companies are paying attention to the customer satisfaction today (Harkiranpal Singh, 2006). Similarly, researcher here tries to measure customer satisfaction and efforts to put to recognise its importance in development of the organisation.

Introduction
Introduction

Background of the research
Background of the research

Background of the organization to be studied
Background of the organization to be studied

Research purpose
Research purpose

Scope of the research project
Scope of the research project

Brief overview of the research methodology
Brief overview of the research methodology

Structure of the report
Structure of the report

Figure 1.1 Structure of Chapter 1: Introduction
1.1 Background of the Research
Customer satisfaction is the buzzword of the 1990s. Unfortunately, till the date numerous amount of managers consider satisfying their customer is a good practice to do rather than crucial element of success (Dianne S. Ward, 1993). Current economic conditions have encouraged many firms to review their approach regarding customer satisfaction management (Jonathan Parkes). Satisfaction is a crucial measure of an organisation’s achievement and it is considered as a great influencer of attitude, word of mouth communication, profit, and repurchase; in long run, lead to customer loyalty; to be appropriate predictor of buying behaviour in the future. Customer satisfaction gained by any organisation results in loyalty of customers, repeated visits and use of wide range of services and goods offered. Therefore, it is found that greater customer retention can be achieved when customer satisfaction is taken care of, while it is also found that customer with high satisfaction received, were ready to pay higher prices (Patricia Huddleston, Judith Whipple, Rachel Nye Mattick and So Jung Lee, 2009). Customer’s satisfaction on their buying is important factor that take business towards success. In current period, customer satisfaction has received new attention within the environment of the paradigm shift to relationship marketing from transactional marketing. (Aurimas Dapkevičius and Borisas Melnikas, 2009).

1.2 Background of the organization to be studied
This research is based on the customer satisfaction at Tesco PLC. Tesco is the leading retailer in Britain, and one of the top three in the world. It has over 3700 stores globally and employs approximately 440,000 people. It operates in 13 other countries except UK, which are Republic of Ireland, Hungary, Czech Republic, Slovakia, Turkey and Poland in Europe, China, Japan, South Korea, Malaysia, Thailand and India in Asia and U.S.A. “Everyday life keeps changing and the Tesco team excels at responding to those changes. Tesco has grown from a market stall, set up by Jack Cohen in 1919. The name Tesco first appeared above a shop in Edgware in 1929 and since then the company has grown and developed, responding to new opportunities and pioneering in many innovations.” “By the early 1990s it faced strong competition and needed a new strategy. Tesco were good at buying and selling goods but had begun to forget the customers. Sir Terry Leahy, who became Chief Executive in 1997, asked customers the simple question - “what are we doing wrong?". Tesco then invested in the things that matter to customers. For example, it launched its loyalty scheme Clubcard and Tesco.com, its internet home shopping service.” “Going the extra mile...
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