International Journal of Hospitality and Tourism Systems

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Validation of CRM Variables on Customer Satisfaction, Loyalty, and Commitment in the Mid-Market Hotel Sector


Affiliations
1 Assistant Professor, HMCT Department, Birla Institute of Technology, Mesra, Jharkhand, India
     

   Subscribe/Renew Journal


The paper aims at developing a conceptual framework of customer loyalty and commitment on customer relationship management (CRM) in the mid-market segment of hotel sector. The investigation was conducted with sample size of 410 usable respondents in the four major states of eastern India, which represents mid markets for the hotel industry. SPSS-20; AMOS-20 were used to conduct the statistical analysis. The result indicated that variables of CRM i.e., service quality, employee behavior, relationship management, information technology, effective interaction management influence customer satisfaction positively but only three variables hospitality management, service quality and employee behavior have direct positive impact on customer loyalty or retention. It is also significant to learn from the empirical evidence that in the mid-market segment environment loyalty/retention leads to commitment. Further, the findings of the study revealed that variables of CRM play a significant role in customer retention and loyalty through satisfaction. Since commitment and loyalty are synonymous and positively associated with each other also evidented by the results. The research further suggested managerial and prcatical implications in the mid-market segment of hotel sector.

Keywords

Customer Satisfaction, Customer Retention, Relationship Management, Commitment
Subscription Login to verify subscription
User
Notifications
Font Size


  • Anshari, M., Almunawar, A. N., Lim, A. S., & Al-Mudimigh, A. (2019). Customer relationship management and big data enabled: Personalization & customization of services. Applied Computing and Informatics, 15, 94-101.

  • Assael, H. (1987). Consumer behavior and marketing action (3rd ed.). Boston: Kent.

  • Backman, S. J. (1991). An investigation of the relationship between activity loyalty and perceived constraints. Journal of Leisure Research, 23(4), 332-344.

  • Backman, S. J., & Crompton, J. L. (1991). The usefulness of selected variables for predicting activity loyalty. Leisure Sciences, 13, 205-220.

  • Barsky, J., & Labagh, R. (1992). A strategy for customer satisfaction. The Cornell Hotel and Restaurant Administration Quarterly, 35(3), 32-40.

  • Barsky, J., & Lin, A. (2004). Leakage concept traces customers’ tracks to other hotels. Hotel and Motel Management, 219(17), 8.

  • Beaton, M., & Beaton, D. (1995). Marrying service providers and their clients: A relationship approach to services management. Journal of Marketing Management, 11, 55-70.

  • Bitner, M. J., Booms, B. H., & Tetreault, M. S. (1990). The service encounter: Diagnosing favorable and unfavorable incidents. Journal of Marketing, 54, 71-84.

  • Bolton, R. N., & Drew, J. H. (1992). Mitigating the effect of service encounters. Marketing Letters, 3, 57-70.

  • Bolton, R. N. (1998). A dynamic model of the duration of the customer’s relationship with a continuous service provider: The role of satisfaction. Marketing Science, 17(1), 45-65.

  • Brown, S. A., & Gulycz, M. (2002). Performance driven CRM: How to make your customer relationship management visions a reality. Ontario: John Wiley.

  • Buchanan, T. (1985). Commitment and leisure behavior: A theoretical perspective. Leisure Sciences, 7(4), 401-420.

  • Chen, I. J., & Popovich, K. (2003). Understanding customer relationship management: People, process and technology. Business Management Journal, 7(5), 374-386.

  • Chen, J., & Ching, R. (2004). An empirical study of the relationship of IT intensity and organizational absorptive capacity on CRM performance. Journal of Global Information Management, 12(1), 1-17.

  • Christopher, M., Payen, A., & Ballantyne, D. (1991). Relationship marketing: Bringing quality, customer service and marketing together. Oxford: Betterworth-Heineman.

  • Cronin, J., & Taylor, S. (1992). Measuring service quality: A re-examination and extension. Journal of Marketing, 56, 55-68.

  • Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated framework. Journal of the Academy of Marketing Science, 22(2), 99-113.

  • Dimitriades, Z. S. (2006). Customer satisfaction: Loyalty and commitment in service organizations-some evidence from Greece. Manag. Res. News, 29(12), 782-800.

  • Filiatrault, P., & Lapierre, J. (1997). Managing business-to-business marketing relationships in consulting engineering firms. Industrial Marketing Management, 26(2), 213-222.

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50.

  • Garbarino, E., & Johnson, M. (1999). The different roles of satisfaction, trust and commitment in customer satisfactions. Journal of Marketing, 63, 70-87.

  • Gee, R., Coates, G., & Nicholson, M. (2008). Understanding and profitably managing customer loyalty. Marketing Intelligence & Planning, 26(4), 359-374.

  • Guenzi, P., & Pelloni, O. (2004). The impact of interpersonal relationships on customer satisfaction and loyalty to the service provider. International Journal of Service Industry Management, 5(4), 365-384.

  • Hanley, S., & Leahy, R. (2008). The effectiveness of relationship marketing strategies in department stores. International Journal of Business Management, 3(10), 133-140.

  • Hassana, S. R., Nawaz, A., Lashari, M. N., & Zafar, F. (2015). Effect of customer relationship management on customer satisfaction. Procedia Economics and Finance, 23, 563-567.

  • Hennig-Thurau, T., Gwinner, K. P., & Gremler, D. D. (2002) Understanding relationship marketing outcomes: An integration of relational benefits and relationship quality. Journal of Service Research, 4(3), 230-247.

  • Homburg, C., Koschate, N., & Hoyer, W. D. (2006). The role of cognition and affect in the formation of customer satisfaction: A dynamic perspective. Journal of Marketing, 70(3), 21-31.

  • Hyun, S. S. (2010). Predictors of relationship quality and loyalty in the chain restaurant industry. Cornell Hospitality Quarterly, 51(2), 251-267.

  • Izogo, E. E. (2016). Should relationship quality be measured as a disaggregated or a composite construct?

  • Management Research Review, 39(1), 115-131.

  • Joaquin, A., & Magdalena, C. (2009). Analysing the effect of satisfaction and previous visits on tourist intentions to return. European Journal of Marketing, 43(5/6), 670-685.

  • Kyle, G., Graefe, A. R., Mannin, R., & Bacon, J. (2004) Predictors of behavioral loyalty among hikers along the Appalachian Trail. Leisure Science, 26, 99-118.

  • Ladhari, R., Brun, I., & Morales, M. (2008). Determinants of dining satisfaction and post-dining behavioural intentions. International Journal of Hospitality Management, 27(4), 563-573.

  • Lambert, D. M. (2010). Customer relationship management as a business process. The Journal of Business & Industrial Marketing, 25(1), 4-17.

  • Lindgreen, A., Palmer, R., Vanhamme, J., & Wouters, J. (2006). A relationship management assessment tool: Questioning, identifying, and prioritizing critical aspects of customer relationships. Industrial Marketing Management, 35(1), 57-71.

  • Long, S. C., & Khalafinezhad, R. (2012). Customer satisfaction and loyalty: A literature review in the perspective of customer relationship management. Journal of Applied Business and Finance Research, 1(1), 6-13.

  • Magasi, C. (2016). Customer relationship marketing and its influence on customer retention: A case of commercial banking industry in Tanzania. Journal of Emerging in Economics, Finance and Banking: An Online International Research Journal, 1(1), 1757-1775.

  • Malhotra, N. K., & Dash, S. (2011). Marketing research an applied orientation. London: Pearson Publishing.

  • Mithas, S., Krishnan, M. S., & Fornell, C. (2015). Why do customer relationship management applications affect customer satisfaction? Journal of Marketing, 69(4), 201-209.

  • Namkung, Y., & Jang, S. (2008). Are highly satisfied restaurant customers really different? A quality perception perspective. International Journal of Contemporary Hospitality Management, 20(2), 142-155.

  • Nikolis, N. (2009, February 4). Hospitality industry - Hotels business current and future trends. E-zine Articles. Retrieved from August 23, 2021, from, https://ezinearticles.com/?Hospitality-Industry---Hotels-Business-Current-and-Future-Trends&id=1958842

  • Nwankwo, S. A. (2013). Customer relationship management and customer retention: Emprical assessment from Nigeria’s insurance industry. Business and Economics Journal, 4(2), 1-6.

  • Oliva, T. A., Oliver, R. L., & MacMillan, I. C. (1992). A catastrophe model for developing service satisfaction strategies. Journal of Marketing, 56(July), 83-95.

  • Payne, A., & Pennie, F. (2005). A strategic framework for customer relationship management. Journal of Marketing, 69(4), 167-176.

  • Peppers, D., & Rogers, M. (1997). Enterprise one to one. New York’ Bantam Doubleday Dell Publishing Group.

  • Pozzaa, I. D., Goetz, O., & Sahutd, J. M. (2018). Implementation effects in the relationship between CRM and its performance. Journal of Business Research, 89, 391-403.

  • Rahimi, R., & Gunlu, E. (2016). Implementing customer relationship management (CRM) in hotel industry from organizational culture perspective: Case of a chain hotel in the UK. International Journal of Contemporary Hospitality Management, 28(1), 89-112.

  • Rahimi, R., Köseoglu, M. A., Ersoy, A. B., & Okumus, F. (2017). Customer relationship management research in tourism and hospitality: A state-of-the-art. Tourism Review, 72(2), 209-220.

  • Rather, R. A. (2018). Customer experience in Indian hospitality sector: An empirical study. International Journal on Customer Relations, 6(2), 14-26.

  • Richards, K. A., & Jones, E. (2008). Customer relationship management: Finding value drivers. Industrial Marketing Management, 37(2), 120-130.

  • Ryals, L., & Payne, A. F. T., (2001). Customer relationship management in financial services: Towards information-enabled relationship marketing. Journal of Strategic Marketing, 9, 1-25.

  • Santouridis, I., & Veraki, A. (2017). Customer relationship management and customer satisfaction: The mediating role of relationship quality. Total Quality Management & Business Excellence, 28(9-10), 1122-1133.

  • Scanlon, L., & McPhail, J. (2000). Forming service relationships with hotel business travelers: The critical attributes to improve retention. Journal of Hospitality & Tourism Research, 24(4), 491-513.

  • Shoemakers, M. E. (2001). A framework for examining IT enabled market relationships. Personal Selling Sales Management, 21(2), 177-186.

  • Sim, J., Mak, B., & Jones, D. (2006). A model of customer satisfaction and retention for hotels. Journal of Quality Assurance in Hospitality & Tourism, 7(3), 1-23.

  • Sirgy, M. J., & Tyagi, P. K. (1986). An attempt toward an integrated theory of consumer psychology and decision-making. Systems Research, 3(3), 161-175.

  • Wang, M. I. (2013). Study on customer satisfaction of shopping center. Journal of Statistics and Management Systems, 10(5), 675-698.

  • Yuksel, A., & Yuksel, F. (2002). Measurement of tourist satisfaction with restaurant services: A segment-based approach. Journal of Vacation Marketing, 9(1), 52-68.


Abstract Views: 381

PDF Views: 0




  • Validation of CRM Variables on Customer Satisfaction, Loyalty, and Commitment in the Mid-Market Hotel Sector

Abstract Views: 381  |  PDF Views: 0

Authors

Rajeshwari Chatterjee
Assistant Professor, HMCT Department, Birla Institute of Technology, Mesra, Jharkhand, India
Sanjiv Kumar Srivastava
Assistant Professor, HMCT Department, Birla Institute of Technology, Mesra, Jharkhand, India

Abstract


The paper aims at developing a conceptual framework of customer loyalty and commitment on customer relationship management (CRM) in the mid-market segment of hotel sector. The investigation was conducted with sample size of 410 usable respondents in the four major states of eastern India, which represents mid markets for the hotel industry. SPSS-20; AMOS-20 were used to conduct the statistical analysis. The result indicated that variables of CRM i.e., service quality, employee behavior, relationship management, information technology, effective interaction management influence customer satisfaction positively but only three variables hospitality management, service quality and employee behavior have direct positive impact on customer loyalty or retention. It is also significant to learn from the empirical evidence that in the mid-market segment environment loyalty/retention leads to commitment. Further, the findings of the study revealed that variables of CRM play a significant role in customer retention and loyalty through satisfaction. Since commitment and loyalty are synonymous and positively associated with each other also evidented by the results. The research further suggested managerial and prcatical implications in the mid-market segment of hotel sector.

Keywords


Customer Satisfaction, Customer Retention, Relationship Management, Commitment

References