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(A CASE STUDY OF SELECTED THREE STAR HOTEL IN PORT HARCOURT METROPOLIS)
ABSTRACT
Customer Relationship Management (CRM) is the strongest and the most efficient approach in maintaining and creating close relationships with customers in the service sectors including hotels. Moreover, effective CRM implementation will attain to increased revenue from business through the acquisition of new customers and retaining existing customers, reduced operative cost of hotel business, increased customer satisfaction and ensuring that long term profitability and sustainability. In order to, this descriptive research aims to analyze the relationship of CRM practices on customer satisfaction in the hotel sector. Further, this study examines that the impact of customer satisfaction on customer loyalty and customer retention practices in the hotel sector. Field survey has been conducted with the help of questionnaire and the responses were collected from 100 customers who have been used the hotel services at least one whole day in Uthagamandalam Taluk of Nilgiris District. Multi-stage sampling technique has been adopted to select sampling area. This study reported that execution of CRM practices like customer relationship upgrading capability, customer orientation strategies, customer value, customer interaction management practices, customer contact programmes and CRM technology positively connected with customer satisfaction in the hotel sector. Finally, it can be concluded that the customer satisfaction is significantly and positively associated with customer loyalty and their retention practices in the hotel sector.
TABLE OF CONTENT
TITLE PAGE i
DEDICATION ii
CERTIFICATION iii
AKNOWLEDGEMENT iv
ABSTRACT vi
TABLE OF CONTENT vii
CHAPTER ONE 1
BACKGROUND OF THE STUDY 1
1.1 INTRODUCTION 1
1.2 STATEMENT OF THE PROBLEM 3
1.3 OBJECTIVES OF THE STUDY 4
1.4 SIGNIFICANCE OF THE STUDY 5
1.5 RESEARCH QUESTIONS Error! Bookmark not defined.
1.6 RESEARCH HYPOTHESES Error! Bookmark not defined.
1.7 SCOPE OF THE STUDY 7
1.8 DEFINITION OF TERMS 7
CHAPTER TWO 9
REVIEW OF RELATED LITERATURE 9
2.0 INTRODUCTION 9
2.2 CONCEPTUAL FRAMEWORK 10
CUSTOMER RELATIONSHIP MANAGEMENT 11
2.2.1 Bonding 11
2.2.2 Communication Error! Bookmark not defined.
2.2.3 Trust Error! Bookmark not defined.
2.2.4 Reciprocity: 13
2.2.5 Empathy 13
2.2.6 Customers’ Retention 13
2.2.7 Customer Loyalty 15
2.2.8 Word of mouth 16
2.2.9 Business dealings: 17
2.2.10 Repeat purchase 17
2.2.11 Commitment 17
2.2.12 PURPOSES OF CUSTOMER RELATIONSHIP MANAGEMENT 19
2.2.13 EVOLUTION OF CUSTOMER RELATIONSHIP MANAGEMENT 23
2.2.14 IMPORTANCE OF CUSTOMERS 25
2.3 THEORETICAL FRAMEWORK 28
2.4 EMPIRICAL REVIEW 30
2.5 SUMMARY OF LITERATURE 31
CHAPTER THREE 33
RESEARCH METHODOLOGY 33
3.1 INTRODUCTION 33
3.2 RESEARCH DESIGN 33
3.3 POPULATION OF THE STUDY 34
3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES 35
3.5 SOURCE OF DATA 35
3.6 RESEARCH INSTRUMENT Error! Bookmark not defined.
3.7 STATISTICAL TECHNICAL FOR DATA ANALYSIS Error! Bookmark not defined.
CHAPTER FOUR 36
DATA PRESENTATION AND INTERPRETATION 39
4.1 DATA PRESENTATION 39
4.2 DATA PRESENTATION AND ANALYSIS 40
4.3 TESTING OF HYPOTHESIS 44
CONTIGENCY TABLE 45
DECISION 46
4.4 DISCUSSION AND FINDING 46
CHAPTER FIVE 48
SUMMARY, CONCLUSION AND RECOMMENDATION 48
5.1 INTRODUCTION 48
5.2 SUMMARY 48
5.3 CONCLUSION 49
5.4 RECOMMENDATION 50
REFERENCES 52
APPENDIX I 56
QUESTIONNAIRE 56
APPENDIX II 57
QUESTIONNAIRE 57
CHAPTER ONE
BACKGROUND OF THE STUDY
1.1 INTRODUCTION
A customer relation is a very broad field that encompasses customer/client service, corporate social responsibility, relationship marketing, and reputation/image management among others. Okafor, C. O. (2006). Due to its broad scope, it does not have a generally acceptable definition. However, this notwithstanding, one thing is certain-customer relations is clients-oriented and at its roots lie the need to create a convivial atmosphere that will be beneficial to the organization and its sundry clients. Anyanwokoro, M. (1996).
Customer relations entail building or establishing a relationship between an organization and its customers through excellent service provision/delivery in order to create an impressionable opinion of the organization in the minds of the customers. Rhody, Ronald, E. (1991).
Some organizations that have thrived in business over the years are those that carved a niche for themselves as customer friendly enterprises. Arup Kumar, B., and Bivraj Bhusan, P., (2012). In most cases, the difference between ailing and thriving companies or organizations lies in their customer service orientations. This is because, studies have shown that the perception of customers towards a particular organization or company goes a long way in determining the kind of patronage they give the organization. This is why a small company can grow and outshine its better in the market. Oyeniyi, O., & Joachim, A. A. (2008).
Customer relationship management, as the name implies, is saddled with the responsibility of establishing, developing and sustaining relational partnerships between an organization and its clients. It is becoming an important issue in marketing in order to gain customer loyalty, improve customer relations rates, as well as increase profits.
Customer relations management refers to a management approach that seeks to create, develop, and enhance relationships with carefully targeted customers in order to maximize customer value and corporate profitability (Kuo-chung and Chin-shan, 2012:64).
A customer relation (also known as customer care or service in some companies) is seen as giving attention or provision of service before, during and after a transaction. According to Turban et al. (2002), customer service is a series of activities designed to enhance the level of customer satisfaction which is the feeling that a product or service has met the customer’s expectations. It attempts to make best utilization of both divides.
That is, it is geared towards customer satisfaction and aims at increased profitability.
1.2 STATEMENT OF THE PROBLEM
Customer relationship is not about understanding the market as it were; it is about understanding people and their individual needs and styles and meeting them. The best way banks can do this is to keep the customers in mind and think of them as the real business, instead of the product or services offered. To do this, the hotel must constantly strategize to adapt to the changing circumstances of the society and the behaviour of the customer, which is constantly in a state of flux.
This study is undertaken to do a comparative study of old and new generation hotel customer relations practices to determine their area of convergence, divergence and as well as to find out if their respective successes or failures are attributable to their customer relations practice.
1.3 OBJECTIVES OF THE STUDY
The objectives of the study are to:
1. Establish if there is a significant relationship between bonding and customer retention.
2. Ascertain if there is a significant relationship between empathy and customer retention.
3. Investigate if there is a significant relationship between reciprocity and customer retention.
4. Ascertain if there is a significant relationship between trust and customer retention.
5. Investigate if there is a significant relationship between communication and customer retention.
1.4 RESEARCH QUESTIONS
The questions this study intends to give answers to are:
1. What difference exists between the impacts of customer relationship management on customer retention?
2. How accessible are these customer relations packages to customers?
3. What influence does customers’ perception have on the management retention practices?
1.5 RESEARCH HYPOTHESES
The following hypotheses were formulated to guide the survey:-
Ho1: There is no relationship between customer service and customer retention.
Ho2: There is no relationship between customer service and customer retention.
1.6 SIGNIFICANCE OF THE STUDY
The researchers consider the study very significant on the following basis.
The organizations and marketing department will benefit for, the study since the recommendations will help the company serve the better. The finding of the study will enable organization solve their problems relating to customer relationship management and customer retention and as well as correcting whatever mistakes they have made or are still making in line with their operations. The study will also help future researcher in area of literature on the field of customer relationship management and customer retention. This study will be meaningful in a lot of ways to the government, manager, business, academics also to student organizations since it provides them with some vital data in the area of banking and client/customer relations as well as help them to make policies and strategies that will be of help to business especially in the area of customer service or customer relations management.
The selected hotels in Port Harcourt are:
1. Golden Tullip Hotel
2. City Crawn Hotel
3. Dannic Hotel
1. Golden Tullip Hotel is located at GRA phase 2 Port Harcourt Nigeria.
2. City Crawn Hotel is located at serene presidential estate in the government reserve area.
3. Dannic Hotel is located at plot 33 circular road, presidential estate, GRA phase 2, Port Harcourt, Nigeria.
1.7 SCOPE OF THE STUDY
Content Scope: The content scope of this study is delimited in relationship marketing the impact of customer relationship management on customer retention.
Geographical Scope: This study is delimited in Port Harcourt Metropolis while data scope will be on managers and supervisors of hotels in Port Harcourt.
1.8 DEFINITION OF TERMS
Customer: This is a person who buys a product or service from a person or organization, usually a seller. In banking, a customer is a client who patronizes the bank either to make deposits, withdrawals, or get a loan or other banking services.
Customer Relations: This is the effort made by banks to establish and maintain goodwill between these organizations and their customers and prospective customers.
Customers’ Retention: Customer retention is the action or movement an organization undertakes for the main purpose of reducing consumers’ anxiety and fear about a product or service in order to increase the lifespan of a customer.
Loyalty: Is a positive (or negative) attitude of the customer toward the business organization and its products and services. It is considered important because the loyal customer will contribute to organization in long-range.
Direct Mailing: Is the process of exchange or swap conducted by the customer between the benefits obtained from the product or service and the cost of obtaining in terms of product benefits.
Commitment: The notion of commitment is then central to understanding better the mental processes underlying the repeat purchasing of a brand
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