Analyzing the Influence of Customer Relationship Management on Firm Performance

Abstract

Today, companies have come to realize that customers are the foundation of a business and effective relationship management is indispensible for the success of an organisation. Hence, one of the most important objectives of a company is to satisfy its customers as they are the backbone and keep a business running. Moreover, it is being witnessed that customer's needs and buying behaviour have changed considerably. In order to meet ever changing demands, organisations need to adopt customer oriented marketing strategies to gain competitive advantage. Since customers nowadays are becoming more price sensitive and shift loyalty frequently in terms of selecting products and services of any company, it has become very difficult to retain them. As a result, emphasis on long term relationships with customers has gained momentum in businesses. The goal of the present study is to expand the study of customer relationship management (CRM) by investigating the association of dimensions of CRM and organizational performance. The study extends customer relationship management to the hotel industry context. It explores a set of CRM dimensions or constructs that are important for implementing CRM in hotel industry in Indian perspective.

Using the mixed methods research to model the hotel performance measurement in Egypt: An example from a hotel chain

“…DEA as a frontier technique is considered a non-parametric technique (data that are not subject to normal distribution, it is suitable for ranking from lowest to highest). It is based on distance functions (it represents efficiency, for example as a particular line that any point on the line is efficient and any point away is inefficient (Assaf & Agbola, 2014;Yin Tsai, & Wu, 2015).…”

“…Performance Measurement Audit (Houldsworth & Jirasinghe, 2006;Sainaghi et al, 2017) It is a quick self-analysis composes of numerous statements with a rating scale (high-medium -low). Output index method (Jääskeläinen, 2009;Yin et al, 2015) It is a preferred method in service as it makes an indicator for the non-quantifiable measures such as satisfaction or quality.…”

“…However, performance is a complex term and there are many problems related to its definition and measurement. The performance concept flourishes in manufacturing where it is easier to measure inputs or outputs than in the service (Yadav & Singh, 2018). Hotel performance is mostly intangible; therefore, it is difficult to measure outputs, because of many hotel departments, the output for each department is different than others (Enoma & Allen, 2007;Zaki, 2014).…”

Marketing Performance Sustainability in the Jordanian Hospitality Industry: The Roles of Customer Relationship Management and Service Quality

“…Within the context of hotels, one of the main management and technological strategies for maintaining long-term relationships with customers and improving service quality is CRM [7,[16][17][18]. Furthermore, the marketing performance of hotels needs to be improved by sustaining the long-term relationship with customers through the introduction of special offers and the employment of certain strategies and better information technology (IT) systems such as CRM applications [7,19,20].…”

“…Our review of the previous literature suggests that there is a lack of studies that investigated the relationship between CRM performance and marketing performance in the tourism and hotel industry [21,22]. Additionally, very few studies have examined service quality (SERVQUAL) as a mediator between CRM performance and marketing performance in the context of the hotel industry [20]. Therefore, the objectives of this study are (1) to examine the effect of CRM performance on marketing performance, (2) to examine the effect of CRM performance on service quality, (3) to examine the effect of service quality on marketing performance, and (4) to examine the mediating role of service quality on the relationship between CRM performance and marketing performance.…”