CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON CUSTOMER CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON CUSTOMER

  • View
    5

  • Download
    0

Embed Size (px)

Text of CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON CUSTOMER CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ON...

  • http://www.iaeme.com/IJCIET/index.asp 784 editor@iaeme.com

    International Journal of Civil Engineering and Technology (IJCIET) Volume 9, Issue 1, January 2018, pp. 784–796, Article ID: IJCIET_09_01_076

    Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=1

    ISSN Print: 0976-6308 and ISSN Online: 0976-6316

    © IAEME Publication Scopus Indexed

    CUSTOMER RELATIONSHIP MANAGEMENT

    (CRM) ON CUSTOMER LOYALTY AND

    RETENTION IN HOTEL INDUSTRY OF

    JHARKHAND

    Sanjiv Kumar Srivastava

    Assistant Professor, Dept. of Hotel Management, BIT Mesra, Ranchi, India

    Bibhas Chandra

    Asst. Professor, Dept. of Management Studies, IIT (ISM) Dhanbad, India

    Gautam Shandilya

    Assistant Professor, Dept. of Hotel Management, BIT Mesra, Ranchi, India

    ABSTRACT

    In the current business environment in which firms are operating, there has been a

    rise in the level of competitor among the key players. As a result, there is the need for

    the firms to ensure that they devise strategies in order to be more competitive than

    their counterparts. The use of highly effective customer relationship management

    systems have been found to be highly effective in ensuring that firms gain a

    competitive edge over the rivals. This paper was mainly aimed at exploring customer

    relationship management (CRM) on customer loyalty and retention in Hotel Industry

    of Jharkhand. The key hypothesis include: Customer relationship management systems

    enhances customer satisfaction within the hotel industry in Jharkhand and Customer

    relationship management systems enhances the loyalty of the customers.

    The population which is targeted by this research are hotel administrators. This

    covers all the hotels in the state of Jharkhand. Convenience sampling was used by the

    researcher in order to get the sample population. A sample size of 50 hotel

    administrators was chosen for the purpose of the study. The hotels in the sample were

    drawn from 10 major cities including: Jamshedpur, Dhanbad, Ranchi, Bokaro Steel

    City, Deoghar, Phusro, Hazaribagh, Giridih, Ramgarh as well as Medininagar. In

    each city, hotel administrators from the top five hotels were selected as the sample for

    the study. For the collection of data, the researcher adopted questionnaires. The

    questionnaires were administered through the use of email. An email was sent to each

    of the respondents. After the collection of data from the respondents through the use

    of the questionnaires, analysis was done by use of SPSS software. SPSS was used by

    the researcher due to the fact that a number of advantages are associated to it. Key

    among the reasons for the selection of SPSS include the ease with which the software

  • Sanjiv Kumar Srivastava, Bibhas Chandra and Gautam Shandilya

    http://www.iaeme.com/IJCIET/index.asp 785 editor@iaeme.com

    can be used during the process of analysis. The findings of the research pointed out

    those customer relationship management systems enhance customer satisfaction

    within the hotel industry in Jharkhand. It also established that customer relationship

    management systems enhance the loyalty of the customers.

    Key word: Customer; Business; Management; Jharkhand; Industry.

    Cite this Article: Sanjiv Kumar Srivastava, Bibhas Chandra and Gautam Shandilya,

    Customer Relationship Management (CRM) On Customer Loyalty and Retention In

    Hotel Industry of Jharkhand, International Journal of Civil Engineering and

    Technology, 9(1), 2018, pp. 784–796.

    http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=9&IType=1

    1. INTRODUCTION

    The current business climate is characterized with stiff competition, something that calls for

    firms to embrace strategies to enhance their competitive position in the business environments

    in which they operate [1]. Enhancement of the level of customer service is a key strategy that

    can be adopted by the firms in order to ensure that they gain a competitive edge over their

    competitors [2]. The present business environment has generally made it very hard to retain

    the current customers and at the same time, it is very costly for the firms to gain new

    customers. Additionally, there is a rapid change in the expectations of the customers and this

    generally makes it very hard for the firms to meet the ever changing needs and expectations

    [3].

    As such, Customer Relationship management (CRM) has been a highly effective tool

    which can be adopted by the firms in order to deal with the numerous challenges which have

    been listed above. Through effective customer relationship management systems, the firms

    are in a good position to attract, manage and also to retain their customers, more so for the

    firms within the hotel industry [4]. The customers are becoming highly sensitive to the prices

    being charged by the firms, less brand loyal and at the same time, the customers are becoming

    highly sophisticated through their ever increasing expectations. This hence calls for the hotels

    to not only attract but also to improve guest patronage for a very long time period [5].

    CRM refers to the acronym of Customer Relationship Management [6]. It refers to a term

    in the industry which has a number of tools as well as methodologies which can help firms to

    effectively manage customer relationship in a manner that is effectively organized. CRM

    entails effective management of customer knowledge and every kind of information which

    pertains to them. This is highly beneficial as it helps in providing a better understanding of the

    customers in such a way that they are served satisfactorily. It refers to an umbrella concept

    which ensures that the customers are placed at the center of the firms. Customer service is a

    highly significant element of CRM that entails the integration of technology, as well as

    business process for the satisfaction of the different needs and expectations of the customers.

    It also ensures that the most profitable customers are kept through increasing the value of

    interaction [7].

    Previous research have offered the benefits which are associated with adoption of CRM

    technologies for the improvement of the acquisition of customers, retention of the customers,

    enhancement of the level of loyalty of the customers besides enhancing the levels of

    profitability [7], [8]. A highly successful CRM strategy cannot just be implemented through

    the installation and integration of software packages, however, it generally require effective

    coordination along with the operations of the business, business strategy and user and

    customer acceptance. There have been different contributions by different scholars regarding

    the feasibility, as well as the implementation strategy of CRM within the Hotel industry.

  • Customer Relationship Management (CRM) On Customer Loyalty and Retention In Hotel Industry of

    Jharkhand

    http://www.iaeme.com/IJCIET/index.asp 786 editor@iaeme.com

    However, there has been very few attempt to assess the efficacy of CRM within the Hotel

    industry. Analysis of the causal attributions resulting into highly effective CRM practices is

    highly significant because it will offer vital inputs for improvements in the existing CRM

    practices. This will result into improved performance of the hotel businesses [9].

    In Jharkhand in India, a number of businesses in the hospitality industry have adopted the

    use of customer relationship management systems. They have gained significant benefits from

    its adoption. The benefits which are associated with the use of customer relationship

    management have been realized by a number of the hotels in Jharkhand in India. This report is

    aimed at exploring one of the key benefits which is associated with CRM adoption by the

    hotels in the industry. This research tries to develop a customer loyalty and retention

    framework through the use of CRM practices through the identification and analysis of the

    causal attribution resulting into effective CRM within hotel industry of Jharkhand in India.

    The main aim of this research is generally to explore the effects of customer relationship

    management (CRM) on customer loyalty and retention within the Hotel Industry of

    Jharkhand.

    2. LITERATURE REVIEW

    With the increasing competition in the business world, there is need for business

    organizations to invent ways of creating consumer loyalty and retention [10], [11], [12]. In

    Jharkhand state in India, there is a very stiff competition among the players in the industry. As

    such, a number of them have embarked on the adoption of customer relationship management

    systems in order to ensure that they improve their operations and also to gain the numerous

    benefits which are associated with the use of customer relationship management systems. The

    main objective of any business is to maximize profits [13]. This would only be achieved if the

    business is able to get a relatively large market share in the industry within which it operates.

    In other words, the business needs to have as many customers