Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
MBA
By
Divyank Shekhar Singh
(2010IPG-034)
CANDIDATES DECLARATION
I hereby certify that the work, which is being presented in the report , entitled Relationship Marketing Practices
in Hospitality Industry, in partial fulfillment of the requirement for the award of the Degree of Master of Business
Administration and submitted to the institution is an authentic record of my own work carried out during the
period July 2014to October 2014under the supervision of Dr. Vinay Singh. I also cited the reference about the
texts/figures/tables from where they have been taken.
The matter presented in this thesis as not been submitted elsewhere for the award of any other degree of diploma
from any Institutions.
Date:
This is to certify that the above statement made by the candidate is correct to the best of my knowledge.
Date:
ACKNOWLEDGEMENT
Im highly indebted to Dr. Vinay Singh for giving me the autonomy of functioning and experimenting with
ideas. I would like to take this opportunity to express my profound gratitude to him not only for his academic
guidance but also for his personal interest in my project and constant support coupled with confidence boosting
and motivating sessions which proved very fruitful and was instrumental in infusing self-assurance and trust within
me. The nurturing and blossoming of the present work was mainly due to his valuable guidance, suggestions,
astute judgment, constructive criticism and an eye for perfection. My mentor always answered countless of my
doubts with smiling graciousness and prodigious patience, never letting me feel that Im novice by always lending
an ear to my views, appreciating and improving them and by giving me a free hand in my project. Its only because
of his overwhelming interest and helpful attitude, the present work has attained the stage it has.
Lastly, I would like to thank supporting staff of IIITM and my peers for their cooperation and support which
enabled me to achieve my objective
Date:
ABSTRACT
Theoretically, the aim of relationship marketing is to establish long-term relationships with customers
and is subject to cultural specificities.
This thesis explores the scope, nature and form of relationship marketing in the hotel industry. For the
last twenty years, relationship marketing has attracted enormous interest from both academic
researchers and business practitioners. Due to the competitive environment, RM is crucial and has
become a niche for firm performance. However, there is limited research that reveals the relationship
between RM dimensions and hotel performance. This study serves not only to clarify the relationship
between RM dimensions and hotel performance, but also to explain the mediation role of marketing
capabilities in this relationship.
Contents
1. Motivation
2. Introduction
3. Literature Review.
4. Implications..
5. Objectives of the study
6. Research methodology..
7. Reference.
List of Tables
S.No.
TITLE
Table 1.
Table 2.
PAGE NO.
Chapter 1
Motivation
Relationships are as old as mankind. It has been studied by sociologists, social psychologists, anthropologists,
philosophers, theologians and many other people. For that matter even the traders and businessmen of
yesteryears relied on relationships for their success. However the modern marketers started taking a fancy to the
same only recently.
In the early 90s the concept of relationship marketing was formally introduced into the field of services marketing.
Financial service institutions, airlines and other service providers found it profitable to retain and reward the
existing customers than running after new customers. It was established that building closer relationship with
customers resulted in better returns to companies through the following means:
This was the motivation behind taking this research topic under study.
Chapter 2
Introduction
Hospitality product is largely people based, consumed and experienced in close encounter with the service
provider, lasting more than one interaction. This is punctuated by Moments of Truth leading to dissatisfaction.
Hence people, physical environment and process have significant role to play. The intangibles (service, ambience)
along with the tangibles (food, loading etc.) are equally important. Getting the right blend makes hospitality
service fairly complex and challenging.
Though hotels, restaurants and air-lines belong to the same industry, these satisfy very specific needs depending
on service characteristic and the targets catered to. While hotels serve to provide home away from home,
restaurants offer an ambience expected to be different from that of home. Hence the emphases on various aspect
of servicing are not the same.
The interaction with customers in hotels is often of a longer duration, where the concept of EAI (extended
affective interaction, see price et al., 1995) holds. This is turn raises certain expectations, namely, Responsiveness,
Empathy, and Assurance, essential components of total offer. For restaurants, Responsiveness maybe the single
most important factor.
The entry and the exit barriers are higher in hotels business.
Both face product as well as brand competition. While hotels compete with similar 5-star services available in the
city, they have corporate guest house to keep in mind. Restaurants lose business to other food joints having
location advantage. They are also under pressure from various clubs (game, swimming) than a food outlet. There is
significant difference in the ambience or environments. The clubs are homely, informal whereas restaurants are
formal and impersonal. Besides, there are clubs catering to specific needs, sports, swimming, and gyms. The
competition however is indirect, generic in nature.
The business thrives mostly on prosperity of a region. Indeed for hotels, business mostly accrues from transient
population. In the case of restaurants, affluence, age composition of local population, and active support of
business houses are decisive factors. These in turn depend on state of economy of the region. In this context, the
city of Calcutta is not an ideal choice. It has neither a vibrant economy nor does it host major cultural or sports
events.
In view of the above, attracting customers become crucial.
The Indian hotel industry is experiencing increased globalization, competition, higher customer turnover, growing
customer acquisition costs and rising customer expectations, meaning that hotels performance and
competitiveness is significantly dependent upon their ability to satisfy customer efficiency and effectively. In the
hotel industry the basic products (rooms) are very similar, when comparing the same quality level the customer
focuses are on soft factor like personal treatment, personalization, one to one marketing and attention by the
hospitality professions. The hotel industry enjoys easy data access as the guests need to register their name and
address during check-in and in some countries, guests even need to provide their passport data and more detailed
private information. In addition, people are very likely to share their personal preferences with hotel staff to make
their stay more enjoyable. The hotel can make use of this database combined with IT and give the guests a unique
experience. They can establish a close relationship with customers and meet their needs perfectly. In order to be
able to compete on a highly competitive market a hotel has to meet every single customer's needs and
expectations. To do this it is important to understand the aspects of business performance that persuade
customers to become repeat purchasers and to exhibit behavioral loyalty as it costs five to ten times more to sell
to a new customer than to an old customer. To enhance profitability and guest satisfaction and loyalty, the
organizations (hotels) should focus on implementing Customer Relationship Management (CRM) strategies that
aim to seek, gather and store the right information, validate and share it throughout the organization (Goyal,
2011). Dominici and Guzzo (2010) said that to be successful in the market it is not sufficient to attract the new
customers but to concentrate on existing customers implementing effective policies of customer satisfaction and
loyalty.Significance of the study
The rationale behind this study has been carrying out an investigation on the various impacts of customer
relationship marketing in hotel and destination industries. Unlike in advertisement and promotional marketing,
relationship marketing focuses more on the retaining the customers, therefore, the researcher developed an
interest in the topic. This study enabled the researcher to acquire adequate knowledge on how relationship
marketing works as well as its benefits either to the companies or to their customers.
Moreover, the research will be crucial and it will enable people to gain deeper understanding on the difference
between relationship marketing and promotional marketing as well as advertising. This study will benefit future
researchers as well as marketers since it will provide them with adequate literature concerning the topic. The
study will provide guidance to the proprietors who own hotels concerning how they need to carry out relationship
marketing in order to increase the loyalty of the customer.
Chapter 3
Literature review
The effective management of customer relationships may increase the overall profitability of a hotel (Buttle1996;
Christopher et al. 2002; Hollensen 2003; Grnroos 2007; Gummesson 2008). However, in todays intensely
competitive marketplace, unwavering loyalty from customers is rare (Butte 1996), and the development and
retention of long-term relationships is therefore more crucial than ever.
Relationship marketing (RM) is perceived to be a key element in any corporate strategy which aims to enhance
customer satisfaction, develop customer loyalty, and sustain long-term customer relationships (Henning-Thurau&
Hansen 2000).
Relationship marketing (RM) has been a topic of serious discussion among academics and practitioners over the
past few years (Henning-Thurgau& Hansen 2000; Christopher et al. 2002; Egan 2004). Controversy still exists over
the origins of RM. It has been argued that Len Berry (1983) was the first to introduce the term relationship
marketing as a modern concept in marketing (see Gronroos 1990; Morgan & Hunt 1994; Sheth&Parvatiyar 1995;
Aijo 1996; Henning-Thurau& Hansen 2000; Christopher et al. 2002; Buttle 2006). Subsequently, Barbara Bund
Jackson was the first to use the term relationship marketing in contrast to transaction marketing in a business-tobusiness context (Christopher et al. 2002; Sheth 2002; Gronroos 2004). During the 1990s, the term relationship
marketing evolved into a general marketing term (Gronroos 1990; Hunt & Morgan 1994; Christopher et al. 2002).
This was triggered by rapid and radical changes in the environment which meant that strategic competitive
advantage could no longer be delivered on the basis of product characteristics alone; satisfying existing customers
became the key to ensuring corporate profitability (Barnes 1994; Aijo 1996). According to Gronroos (1994), a clear
shift towards relationship marketing occurred in the areas of industrial marketing, service marketing, and
managing distribution channels. There was simultaneously a parallel shift from brand values to customer values,
where the delivery of superior customer value became a key objective (Christopher 1996). Relationship marketing
is also commonly referred to as customer-focused management (Gummesson 1994) and relationship
management (Payne et al. 1994).
During the 1960s, Borden (1964) produced his 12 variables (product, price, branding, distribution, personal selling,
advertising, promotions, packaging, display, servicing, physical handling, fact finding and analysis) of a marketing
programmed which later came to be known as the 4Ps of marketing or the marketing mix (McCathy 1960;
Gronroos 1994; Rafig&Ahmer 1995). This framework viewed marketing as a strategic and managerial matching
process (Webster 1992), and this paradigm has continued to dominate both research and practice. During this
period, marketing was characterized as industrial marketing (Christopher et al. 1991, p.8-9;).
During the 1970s, most brands experienced faltering growth and markets were dominated by oligopolies (Webster
1992; Gronroos 2004). Consumers in particular became more demanding and sophisticated and were less easily
persuaded by simplistic marketing strategies (Webster 1992). The 1980s saw a significant rise in importance of the
service sector (Christopher et al. 1991 ;). During this period, The American Marketing Association defined
marketing (AMA Board 1985, p.2) as:
The process of planning and executing conception, pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and organizational objectives.
This definition describes the traditional concept of marketing, and is founded on the marketing mix: suppliers are
perceived as independent units in the market. Despite the growing complexity and competitiveness of the
marketplace at the end of the 1980s, marketers continued to persevere with the concept of the 4Ps. In practice,
however, a number of academics began to question the utility of this approach (e.g. Gronroos 1983;
Gummesson1987). They argued that it was no longer broad enough and failed to incorporate the importance of
customer retention, changes in the competitive environment and the limitations of transaction marketing. During
the 1990s the situation became more complex and confused. Companies were beginning to question the high level
of marketing expenditure which often failed to deliver a worthwhile return on investment (Gordon 1998). New
approaches were pursued in order to resolve these problems and discover new ways to survive in such highly
th
competitive markets. The last decade of the 20 century saw the marginalization of the marketing function in
many organizations (Sheth&Sisodia 1999). Egan (2004, p.9) called this period the century of marketing. However,
a number of marketers (e.g. Webster 1992; Gronroos 1994) recognized that a gap existed between what was
written in marketing textbooks and practical implementation. The 4Ps marketing framework was unlikely to win or
retain customers either in consumer or industrial markets (Gummesson 1987; Gronroos 1994). The 4Ps concept
concerned only mass marketing and standardized consumer goods as opposed to establishing relationships with
individual customers. Marketing management in practice is supplier oriented (Gummesson 2002, p.285), rather
than customer oriented. The concept of relationship marketing emerged from this perceived discrepancy
between theory and practice.
Transactional marketing remained dominant until it was challenged by a theory called relationship marketing. The
concept of relationship marketing stemmed from research in service marketing (Aijo 1996; Gronroos 2007) which
emphasized the importance of close customer contact. The majority of literature in this area focuses on the service
encounter, and the interaction between the customer and the service provider. Literature on relationship
marketing, however, focuses on the importance of establishing a long-term relationship between the customer
and service provider (Berry 1995).
As demonstrated in the previous section, there is widespread concern about the validity of the traditional
marketing approach as relationships are becoming increasingly important in todays complex markets. The 4Ps
framework has been criticized by many researchers (e.g. Kent 1986; Gronroos 1994; Rafig&Ahmer 1995;
Gummesson 2002; Hollensen 2003). Gronroos (1994) and Gummesson (2008), for example, claim that the 4Ps
framework is too restrictive for business-to-business and services marketing as the importance of intangible
service characteristics and customer service considerations have become a key differentiating factor between
products. Cowell (1984) argues that the 4Ps fails to incorporate the characteristics of services, while Rafig and
Ahmer (1995) state that personal contact is rarely discussed within this framework. A number of researchers (e.g.
Reichheld&Sasser 1990; Reichheld 1993; Gronroos 1994) concur that traditional marketing is becoming excessively
expensive and is far less effective than RM.
RM, on the other hand, has become the leading topic of discussion at academic conferences throughout Europe,
North America, Australia, and elsewhere since the 1990s. Various studies have provided evidence of the benefits of
establishing long-term relationships and an effective customer retention strategy within competitive consumerservice markets (e.g. Dwyer et al. 1987; Gadde&Mattsson 1987; Gronroos 1990; Parasuraman et al. 1991; Berry
1995).
Moreover, RM represents a more common sense approach to marketing; it makes important phenomena visible
in a confused world in which marketers and consumers search for meaning (Gummesson 2008). Berry and
Parasuraman (1991, p.133) argue that RM quite simply concerns attracting, developing, and retaining customer
relationships. It triggered a change in attitude from the traditional zero-sum winner/loser philosophy to a belief
in the possibility of a win-win situation (Gummerson 1997, p.56). Many researchers (e.g. Reichheld&Sasser 1990;
Reichheld 1993) have demonstrated that long-term customer relationships can be achieved through mutual
exchange and fulfillment of promises (Gronroos 1994 p.9).
In the traditional transactional approach, marketing management is about planning, coordinating, and controlling
marketing activities that are aimed at satisfying customer needs and wants. The emphasis is on acquiring as many
customers as possible by focusing on product quality and customer volume with less emphasis on meeting
customer expectations and ensuring customer satisfaction.
In contrast, the primary focus of RM is on the individual and the quality of customer relationships (Gummesson
2008). The focus has shifted from customer volume in the transactional marketing approach to customer
retention. RM emphasizes the importance of meeting customer expectations by focusing on customer value and
long-term relationships.
Within the hotel industry, the marketing mix plays a key role in making decisions on hotel characteristics and hotel
design, pricing, distribution channels and promotional strategies (Kotler et al. 2003). Although the 4Ps marketing
mix is still considered important in the management of a hotel business, it is no longer regarded as sufficient for
hotel success (Gronroos 1994; Javalgi&Moberg 1997; Lovelock et al. 2005; Gummesson 2008). Gummesson (2008)
states that the 4Ps only focus on short-term relationships with less emphasis on the importance of customer
service and customer satisfaction, which in practice should be the main focus of the hotel business.
Marketing within the hotel industry is further complicated by the intangible nature of the services which are
provided, which are typified by a high degree of human interaction. As a result, the standardization of services is
practically impossible (Harvey 1998; Henning-Thurau& Hansen 2000) and customers may not always be satisfied
with the quality of service that they receive. Customer dissatisfaction may trigger negative word-of-mouth and
non-repurchase and may be detrimental to the profitability of the hotel. The formulation of a marketing strategy
which enables a flexible response to customers needs and the establishment of long-term, stable relationships is
therefore crucial (Booms & Bitner 1981; Javalgi & Moberg 1997).
In summary, many academics and practitioners have concluded that TM needs to be evaluated, and a shift towards
a relationship-based approach is due. RM has evolved into a general marketing approach (Kotler 1992;
Grnroos1994; Gummesson 2008) and some researchers believe that it represents a paradigm shift in marketing
(McKenna 1991; Sheth &Parvatiyar 1995; Morgan & Hunt 1994; Aijo 1996; Grnroos 1996; Donaldson & OToole
2002; Hollensen 2003; Gummesson 2008). However, others view RM as an alternative to, rather than a substitute
for, TM (Moller&Halinen 2000; Varey 2002; Egan 2004). Palmer (1996), for example, believes that the popularity of
RM arose as the result of a rediscovery in Western markets of a concept that forms a fundamental part of
exchange in Eastern cultures. Palmer et al. (2005, p.316) state that RM has not yet been fully recognized as a
paradigm, but it is at least a well-ordered and distinct concept.
suggest that two factors must be present for an exchange situation to be described as a relationship, and that a
true relationship cannot exist if these factors are absent. These two factors are the following:
The relationship must be mutually perceived to exist and must be acknowledged by both parties.
The relationship must go beyond occasional contact and have some sort of special status.
According to Berrys definition (1983, p.25), the aim of relationship marketing should be the retention of
customers and the development of stable, long-term relationships.
Jacksons definition is centered in the business-to-business context, and raises the issue of whether a relationship
marketing or transaction marketing approach is the best strategy for industrial customers.
The definitions provided by Buttle (1996, p.vii), Evans and Laskin (1994, p.440) stress the importance of long-term
relationships between suppliers and customers.
Later contributions to relationship marketing expanded the scope of research and emphasize the importance of
cooperation between parties in order to achieve mutual benefit (Morgan & Hunt 1994; Gronroos 2008).
Gummesson (2008), for example, defines relationship marketing as a whole series of relationships, networks and
interactions, rather than merely a dyadic relationship between the buyer and the seller.
Morgan and Hunt (1994,p.22) and Ballantyne (1994, p.3) offer similarly broad definitions. Scholars define
relationship marketing according to their particular area of interest and thus each definition is presented
discursively. OMalley and Tynan (1999, p.589) suggest that this lack of clarity has provided researchers with the
luxury of being able to choose whatever relationship definition best suits their research agendas at any given time.
Authors (year)
Berry (1983)
Definitions
Relationship marketing (RM) is attracting, maintaining and in multi-services organizations
enhancing customer relationships.
Jackson (1983)
Jackson (1985)
Turnbull
The formation of long-term buyer-seller relationships through the creation of structural and social
and wlison(1989)
Gronroos (1990)
The purpose of marketing in the new context is to establish, maintain, and enhance
relationships with customers and other partner, at a profit, so that the objectives of the partners
involved are met. This is achieved by a mutual exchange and fulfillment of promises.
Berry and
Parasuraman (1991)
McKenna(1991);
Relationship marketing attempts to involve and integrate customers, suppliers and other
Shani and
Chalasani (1991)
Shani and
Chalasani(1992)
consumers
and to continuously strengthen the network for the mutual benefit of both sides, through
Interactive, individualized and value-added contacts over a long period of time.
(1994)
The role of relationship marketing is to augment the vendors core product, i.e., to
(1994)
differentiate the firms total offering in the marketplace. They define relationship
marketing as a process that includes inputs (understanding customer expectations,
building service
partnerships, empowering employees, and total quality management); outcomes
(customer
satisfaction, customer loyalty, increased profitability, and quality products); and ongoing
assessment (customer feedback, integrating relationship marketing into the firms strategic
planning framework).
Sheth and
Developing close interactions with selected customers, suppliers, and competitors for
Parvatiyar (1995)
Cravens (1995)
Relationship marketing, as a field of study, began to attract attention in the early 1990s as
Firms began to enter into long-term associations to counter the effects of increased
customer demands and intensifying global competition.
Perrien and
An asymmetrical and personalized marketing process that takes place in the long-run
Ricard (1995)
Table 1. Continued
Perrien and
An asymmetrical and personalized marketing process that takes place in the long-run
Ricard (1995)
Sheth and
Parvatiyar
(1995b)
Morris et al.
Relationship Marketing is a strategic orientation adopted by both the buyer and seller
(1998)
Galbreath (1998)
CRM integrates marketing, sales and service functions through business process
automation, technology solutions and information resources to maximize each customer
contact. CRM-facilitates relationships among enterprises, their customers, business
suppliers and employees.
Gummesson
(1999)
Harker (1999)
Sheth and
Parvatiyar (2000)
collaborative activities and programs with immediate and end-user customers to create or
enhance mutual economic value at reduced cost.
Gronroos (2000)
terminating relationships with customers and other stakeholders, at a profit, so that the
objectives of all parties involved are met, where this is done by a mutual giving and
fulfillment of promises.
Vavra (1995);
RM includes efforts to keep customers satisfied after purchase, taking steps to increase the
Patoka (2001)
likelihood of cross-purchasing, measuring the extent to which customers are satisfied, and
translating the sales process into an effective program complete with two-way dialogue
American
Marketing
Association
(AMA) (2004)
Keller, 2006) to achieve customer attraction as well as retention by a mutual exchange and fulfillment of promises
(Gringos, 1990).
Dimension
Definition
Attractiveness of alternatives
Gounaris (2005)
Bonding
Gounaris (2005)
Commitment
Communication
Competence
Conflict
Cooperation
Table 2. Continued
Mohr et al. (1996); Payan (2007)
Coordination
Customization
Dependence
Empathy
Goal compatibility or
goal congruence
goals that could only be accomplished through joint action and the
maintenance of the relationship
Opportunistic behavior
Delerue-Vidot (2006)
Power
Reciprocity
Relationship benefits
Partners that deliver superior benefits will be highly valued and firms
will commit themselves to establishing, developing and maintaining
Relationship-specific investment
Satisfaction
Service quality
Shared values
Table 2. Continued
Morgan and Hunt (1994); Vatana-
Shared values
Switching costs
with
the
process
of
Trust
in
whom
one
confidence
Noordewier et al. (1990)
Uncertainty
has
Customer Loyalty
A significant benefit that can be derived from successful relationship marketing (RM) in a business is the
development of loyalty in customers. Hennig-Thurau, Gwinner & Gremler (2002) mentioned that
customer loyalty and positive word-of-mouth recommendations are usually the two outcomes of effective
RM. Furthermore, it is further emphasised by Reynold & Beatty (1999) that RM can provide exclusive
benefits for customers, consequently reducing competition from other businesses that offer the same
product which can thus assist in the achievement of consumer loyalty.
Oliver (1997) defines loyalty as a close bonding between the consumer and the seller which results in
frequent purchase of a certain product or service from the same supplier, despite the influence from
other competitors which has the potential to evoke switching behaviour in consumers. The concept of
customer loyalty has long been regarded as an important aspect of the integral operations occurring in
organisations nowadays, as companies are becoming increasingly aware of the rewards to be reaped in
the form of superior financial performance in the long run. This is further supported by Dowling & Uncles
(1997) purporting that loyal customers are more likely to spend additionally and often make favourable
recommendations to other potential customers.
In addition, McMullan & Gilmore (2008) noted that greater knowledge and understanding of customer
loyalty may allow companies to align their management strategies to meet the different needs of its
customers in a more effective manner and hence, resulting in a more profitable business. Therefore,
many hotels in today's world have implemented their own customer relationship management (CRM)
system in order to offer their customers a unique and satisfying experience by accurately identifying the
various needs of customers. Lo, Stalcup & Lee (2010) stated that the concept of CRM has evolved over the
past decades into a strategy employed by many organisations to integrate the different aspects present in
the company, so that a greater understanding of their customers can be attained and ultimately, resulting
in a long-term profitable relationship between the customers and themselves.
However, it is crucial for hotels not to overlook other areas that are closely related to the concept of
customer loyalty, instead of just merely focusing on the establishment of an effective CRM system.
Customer loyalty is often linked to other service management concepts such as customer satisfaction and
customer centricity. Businesses including the hotel industry should be mindful and take into consideration
these other concepts that might affect the development of customer loyalty - the ultimate aim of
successful RM. It is also critical for hotels to recognise the obstacles impeding them from instilling loyalty
in customers. One of the more noteworthy obstacles includes unresolved areas of dissatisfaction in
consumers which, if left unattended, can result in dropping sales and profitability (McMullan & Gilmore
2008). Therefore, a two-way communication becomes all the more essential for businesses to understand
what customers want and knowing how to deal with dissatisfaction Lastly, managers should always assess
the pros and cons of a loyalty program before implementing them, so that resources get measured and
managed.
2.
3.
Though significant repercussions may prove to be an issue if negative words about the company were to
spread around, operators of hotels should be forewarned of the positives that WOM marketing can
provide for them. For instance, WOM can reduce geographical boundaries that used to exist in traditional
marketing, especially true with the increased affluence of internet in our modern society today. This is
supported by Trusov, Bucklin & Pauwels (2009) stating that the use of Internet can provide many various
platforms and avenues for users to share their views and opinions with one another. In addition, it also
serves as an advertising channel which can lower costs and ensure that consumers receive the message in
the shortest possible time.
4.
5.
Similarly, hotels can utilise existing guest records to target those that do not have work obligations for
instance, and those that they deem as potential guests. During the low-peak seasons, hotels can make use
of that as a selling advantage. A different group of guests may be attracted as a result of marketing the
hotel to be quiet and peaceful. For example, by creating special packages that addresses accessibility
issues, and includes a wide variety of leisure options and accommodation standards for the elderly, the
hotel is able to tap on the retired greying population and boost room occupancy rates even during these
periods.
2.
3.
4.
Chapter 4
Implications
Meaningful implications are made that building an extensive and effective CRM dimensions in hotel firms
is crucial to face a high competition and improve performance in hotel sector.
This study will provide a theoretical model to show the firm relationship between CRM dimensions,
marketing capabilities and hotel performance. It will contribute enormously to the body of knowledge, as
it will provide a comprehensive framework that will be used for explaining the impact of the CRM
dimensions on hotel performance.
Also the study will benefit future researchers as well as marketers since it will provide them with
adequate literature concerning the topic. The study will provide guidance to the proprietors who own
hotels concerning how they need to carry out relationship marketing in order to increase the loyalty of
the customer.
Chapter 5
Objectives of the study
The general purpose of this paper is to find out whether relationship marketing has an impact on the
organizations values to their customers. It should be understood that the chief goal of relationship
marketing implementation is to make improvements on the value of services offered to customers. With
this in mind, the study will try to evaluate whether there has been any improvement especially on
customer satisfaction and retention. The steps that have been advanced in order to help the researcher
attain the aim are formulated into various objectives as stated below:
To provide recommendations on how management teams can improve the effectiveness of their
relationship marketing endeavours.
Chapter 6
Research methodology
The study demonstrates two methods that will be utilized to gather adequate information. In the first
step, an infinite body of literature was reviewed and relevant conclusions have been drawn. Second step
will involve designing of questionnaires and evaluating the responses.
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