The effect of customer relationship management on customer satisfaction: empirical evidence from star rated hotels in Amhara Region, Ethiopia

The main objective of this research was to examine the influence of CRM on customer satisfaction. The research was focused on three and above three star rated hotels in Amhara Region, Ethiopia.
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The effect of customer relationship management on customer satisfaction: empirical evidence from star rated hotels in Amhara Region, Ethiopia International Journal of Management (IJM) Volume 11, Issue 5, May 2020, pp. 550-567, Article ID: IJM_11_05_050 Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=5 Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.11.5.2020.050 © IAEME Publication Scopus Indexed THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON CUSTOMER SATISFACTION: EMPIRICAL EVIDENCE FROM STAR RATED HOTELS IN AMHARA REGION, ETHIOPIA Simachew Zeleke* Ph.D Scholar, School of Management Studies, Jawaharlal Nehru Technological University - JNTU Hyderabad, Telangana, India Dr. A. Prabhu Kumar Professor & Director, School of Management Studies, Jawaharlal Nehru Technological University - JNTU Hyderabad, Telangana, India *Corresponding Author Email: simachewzele@gmail.com ABSTRACT As far as customers are the means of the existence of business organizations, customer relationship management is the exclusive weapon to win customers confidence and keep sustainable competitive advantage. CRM implementation in the hotel industry is an ongoing phenomenon as long as there is tough competition in the industry. The main objective of this research was to examine the influence of CRM on customer satisfaction. The research was focused on three and above three star rated hotels in Amhara Region, Ethiopia. The basic drive force of the researcher in this particular area was that the region has tremendous tourism destination in which hospitality business accompaniments required. Therefore, CRM issue and customer satisfaction in the hotel industry was an agenda for the researcher. Self-administered questionnaire in the form of 5 point Likert scale was the primary data collection instrument. 260 Hotel guests who stayed in the hotel, at least one night and more, during data collection had been selected at check-in time via stratified random sampling. Pearson correlation coefficient, ANOVA and multiple regression model were the inferential part of data analysis. SPSS version 23 was applied for data entry and presentation. All measures of CRM (people, technology, process and strategy) had positive relationship to customer satisfaction. People and strategy measures had positive and statistically significant contribution to customer satisfaction whereas technology and process measures had negative but statistically insignificant http://www.iaeme.com/IJM/index.asp 550 editor@iaeme.com The Effect of Customer Relationship Management on Customer Satisfaction: Empirical Evidence from Star Rated Hotels in Amhara Region, Ethiopia contribution. People element in these hotels was the best predictor of customer satisfaction. Key words: CRM, Hotel industry, Star rated hotels; Hospitality, Customer satisfaction Cite this Article: Simachew Zeleke and Dr. A. Prabhu Kumar, The Effect of Customer Relationship Management on Customer Satisfaction: Empirical Evidence from Star Rated Hotels in Amhara Region, Ethiopia. International Journal of Management, 11 (5), 2020, pp. 550-567. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=5 1. INTRODUCTION Around the world the service sector of the economy is growing through a period of just about revolutionary change during which established ways of doing business still be shunted aside. This sector has been contributing tons for employment opportunities, eradicating countries from poverty, and increasing countries’ GDP. Unfortunately, customers are not always proud of the standard and value of the services they receive. People complain about late deliveries, rude or incompetent personnel, inconvenient service hours, poor performance, needlessly complicated procedures and a number of other problems (Christopher H. Lovelock, Jochen Wirtz, 2011). Customer relationship management (CRM) is one among the organizations effective strategic tool for his or her success like strategic planning (Darrel, R. 2017). In today’s competitive business world, CRM is one among the key success factors and methods most companies deployed to realize competitive advantage (Rajesh & Manivannan, 2013; Eid El- Gohary, 2014 and Vallabh et al., 2015). CRM is an abbreviation for Customer Relationship Management, not Customer Relationship Marketing which needs organizational and business level approaches – which are customer centric – to doing business instead of an easy marketing strategy. The last several years saw the increase of customer relationship management as a crucial business approach. The objectives of CRM is that the paradigm shift from mass marketing to individual (one-to- one) marketing to make long lasting relationship with customers through the utilization of information technology (Paul Gray and Jongbok Byun, 2001). Customer relationship management (CRM) is one among those magnificent concepts that swept the business world with the promise of forever changing the way businesses are done across the world. It is increasingly found at the upper level of organizations agenda. Companies large and small across a spread of sectors are embracing CRM as a serious element of corporate strategy for two important reasons: new technologies now enable companies to focus on chosen market segments, micro-segments or individual customers more precisely and new marketing thinking has recognized the restrictions of traditional marketing and therefore the potential of more customer-focu ...