The Impact Of Customer Relationship Man

Topics: Customer relationship management, Marketing, Hotel Pages: 14 (2072 words) Published: November 16, 2014
THE IMPACT OF CUSTOMER RELATIONSHIP MANAGEMENT IN CUSTOMER RETENTION AND CUSTOMER LOYALTY IN HOTEL INDUSTRY

TSANG, WAI KIT
MATRICULATION NUMBER: 53624975

EDINBURGH NAPIER UNIVERSITY
EDINBURGH

Dissertation submission for the award of
BA (Hons) Marketing Management

Date: November 2014
Supervisor: Margaret Chui

Word count: 1620
Table of contents

Selection TitlePage

1. The Background of the Study and Overall Research Aim3

2. Research Objectives4

3. Initial Review of Relevant Literature5-8

4. Theoretical Framework9

4.1Hypotheses10

5. Research Methods11

6. Timeline of Dissertation12

7. References13-14

1. The Background of the Study and Overall Research Aim
A executive vice president from one of the hospitality group, Mr. Michael DiLeva (2014) stated that CRM is more important than it’s ever been. Dowling (2002) said that the belief of CRM is to develop a better relationship with customer, and it is the best way to let them become loyal to the company. And these kind of loyal customers are more profitable than the non-loyal customers. In this report, it will found out how Customer Relationship Management (CRM) can affect the result of Customer Retention (CR) and Customer Loyalty (CL). A senior Director managed in hospitality group, Mr. Klaus Kohlmayr (2010) mentioned that in recent economic times, a aggressive movement is required in pursuing demand in order to deliver profitability. Ensure that the company is targeting the right customers and helping to establish customer loyalty amongst profitable customers. As all of the above reasons, therefore, specific focus discuss in hotel industry, as guests are at the forefront of operations within the hotel industry (Zinelding, 1999). The aim of this research is to found out how hotelier can do well on CRM to retain their client or even make them become a loyalty customer.

2. Research Objective
Important data will be gathered from literature and journal to analyze the impact of CRM in customer retention and customer loyalty in hotel industry. Comment and useful information will be collected by survey and interview from the customer of their hotel experience to identify the main problem when implementing CRM. Analyze the relationship among the factors of CRM, Customer Retention and Customer Loyalty Some appropriate methods will be recommended to use to enhance the customer retention rate and increase the customer loyalty.

3. Initial Review of Relevant Literature
In this chapter, it will review several author’s opinion in regard the CRM, CR and CL. And also some of the important factors of CRM impact the CR and CL.

Grönroos (2004) stated that an on-going relationship with customers will help in providing a sense of security, trust and feeling of control. A study from CRM National Project managed by Bassham (2004) has concluded that some of the reasons people should be interested in CRM because it can benefit to cost saving and offers service improvements, added value, intangible benefits e.g. helping the organization to achieve the targets. While a study from Xu & Walton (2005) have stated that some reasons to implement CRM, because of the customer satisfaction can be improved and it can increase the retention rate on existing customers. Also, it can provide useful data and information for strategic purpose and the customer lifetime value (CLV) can be improved. One of the importance element listed out from Naveed (2012) for hotel industry when implementing CRM is that the basic product (hotel room) of is very similar, when comparing the same quality level, it is hard to retain the customer and maintain their loyalty due to a multitude of channels and increasing transparency of the market from the rapid growth of the internet and economic globalization. He then therefore concluded some benefits of using CRM in...

References: Important factors of CRM impact Customer Retention and Customer Loyalty
Zineldin (2006) has explained that it is important to greater the value of the product and service provided by the organization to the customer
Bassham, M. (2004). Local e-Government – CRM National Project, The Benefit of CRM [Online] Available at: http://jisc.cetis.ac.uk/crm-tools/documents/benefits-of-crm.pdf Accessed 25 October 2014
Chu, K
Dowling, G. (2002). Customer Relationship Management: In B2C Markets, Often Less Is More. California Management Review, 44(3), 121-137. [Online] Available at: http://dx.doi.org/10.2307/41166134 Accessed 25 October 2014
Dwyer, Robert F., Schurr, P., Oh, S
Evanschitzky, H., Iyer, G. R., Plassman, Hilke, Niessing, Jorge, Meffert, Heribert (2006). The relative strength of affective commitment in securing loyalty in service relationships, Journal of Business Research, Vol.59, pp. 1207-1213
Grönroos, C
Grönroos, C. (2002). Service Management och Marknadsföring – en CRM ansats. Kristianstad: Kristianstads Boktryckeri AB
Jobber, D
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