Impact of Customer Relationship Management on Customer Satisfaction: The Case of a Budget Hotel Chain
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AbstractCustomer Relationship Management (CRM) is a successful marketing strategy that has been proven to improve customer satisfaction and retention in the hotel business. CRM can bring many benefits to the hotel business, though there are some associated challenges such as the implementation process, which can prove to be time consuming, expensive, and complex in nature. Such challenges often bring a significant risk of failure, and these risks become more significant in budget hotels, due to inadequate supporting budgets and the lack of strong branding and loyalty schemes. This study considers the changes that have emerged in the last decade as regards customer expectations when staying in budget hotels. We use qualitative approaches to investigate the overlaps between customer expectations and managers’ perceptions of CRM applications. The findings reveal that regardless of all changes, value for money and core products continue play a critical role in customers’ overall satisfaction of budget hotels. This suggests there is a need to align management and customer perspectives on CRM, in order to optimize customer value in terms of delivery and experience. Keywords: Customer Relationship Management (CRM), Customer Satisfactions, Satisfaction Criteria, Customer Expectation and Budget Hotels.
CitationRahimi, R., & Kozak, M. (2017). Impact of Customer Relationship Management on Customer Satisfaction: The Case of a Budget Hotel Chain. Journal of Travel & Tourism Marketing, 34 (1), pp 40-51
PublisherTaylor & Francis
JournalJournal of Travel & Tourism Marketing
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Towards a Successful CRM Implementation in Banks: An Integrated Model.Eid, Riyad (Informaworld: Routledge (Taylor & Francis), 2007)In recent years, customer relationship management (CRM) has been the favoured theme for numerous studies and reports. Yet, there is a lack of systematic empirical evidence regarding the critical success factors (CSFs) for the CRM implementation, the activities that are affected by the use of the CRM programmes, and their consequent performance outcomes. In this article, we document the role of the CRM programmes in the banking sector and identify marketing activities that are affected by CRM usage. Taking a sample of 159 banks that utilise a CRM system, we found a substantial positive effect of the CRM usage on relationships effectiveness and marketing objectives. The results of this study have major implications for marketing people, as they suggest the notion that the CRM critical success factors should be implemented holistically rather than piecemeal to achieve the full potential of the CRM. The findings also stress the central role of customer services in the successful implementation of CRM programmes within banks.
The role of internet-based technology in customer satisfaction in the banking sector: empirical evidence from Edo State, NigeriaOriade, Ade; Wang, Yong; Rahimi, Roya; Mordi, Jones Oluchukwu (University of Wolverhampton, 2020-07)Internet-Based Technology (I-BT) has become an important resource in driving the performance of all successful businesses. This thesis contains the findings of an investigation into the role of I-BT in the relationship between customer-focused engagement behaviour (CFEBEH) and customer satisfaction (CS) in the Nigerian commercial banking sector. Using a sample of 426 bank customers in Edo State, Nigeria, the thesis seeks to ascertain whether I-BT resources in the bank have an impact on customer service delivery and satisfaction thereof. Theoretically, the Expectancy Disconfirmation Theory (EDT) and Affect Theory have been used to underpin the study of CS, while Kahn’s theory of engagement is used in support of CFEBEH. The Job Demands- Resources (JD-R) model has been used as the overarching theory underpinning this research particularly in relationship with I-BT. The results based on the structural equation model (SEM) provide two findings. First, CFEBEH has a direct effect on CS at a margin of 0.40. Second, I-BT mediates the CFEBEH and CS relationship at a margin of 0.067. Therefore, the findings of this study recommend bank managers or policymakers in Nigeria to consider making I-BT resources available in their banks as this can enhance the relationship between CFBEH and CS. By making I-BT available, this can also lead to increased CS levels, as the above results suggest. This study, therefore, has three main contributions to offer. First, by conceptualising CFEBEH as a second-order factor, this study has contributed to the literature in the area of methodology. Second, this study is the only study, to the best knowledge of the author, to have investigated the role of I-BT in the relationship between CFEBEH and CS in the Nigerian banking sector. The study has therefore deepened the academic knowledge on the role of I-BT in this relationship. Secondly, this study also contributes to the current literature on the role of I-BT in enhancing CS, particularly in a developing country context. Nigeria being the context of this study provides a unique environment for this research looking at the several challenges in the banking sector amidst institutional and infrastructural weaknesses. Finally, the design and measurement of the proposed research model in this study regarding the impact of CFEBEH on CS through its various components including PCHB, ATI, and WS, have added to the academic knowledge in customer service delivery, particularly in the banking sector which can trigger further research in this research area.
Customer relationship management research in tourism and hospitality: a state-of-the-artRahimi, Roya; Köseoglu, Mehmet Ali; Ersoy, Ayse Begum; Okumus, Fevzi (Emerald Publishing Ltd, 2017-05-16)Purpose: This study aimed to provide a critical review of the evolution of customer relationship management (CRM) research in the hospitality and tourism field. Design/methodology/approach: The study conducted a thorough systematical literature review by collecting papers from 14 leading tourism and hospitality journals. The examination of the literature is first based on the evolution of CRM notion and its definitions. Next, CRM studies in the literature that are related to hospitality and tourism were assessed based on their timelines and themes. Thirdly, the studies were classified based on CRM components and its impacts on firms’ performances. Findings: The literature review provided an in-depth understanding on the progress of CRM based on the selected topics and suggests a redesigned research agenda for scholars, graduate students, and practitioners. Implications: This study provides new and meaningful avenues for further research in CRM in hospitality and tourism area. Originality/value: CRM has a key role in business performance and increased customer satisfaction and retention, specifically in the context of the service industry. To date, scholars have produced an abundant number of CRM related studies in tourism and hospitality journals. In this study, the progress of CRM research conducted in the tourism and hospitality sector is critically reviewed.