Nexus between customer relationship management dimensions, customer involvement and customer retention: a mediation analysis in Ghana’s hotel industry

Abstract

PurposeThis research investigates the role of customer involvement (CINV) in customer relationship management (CRM) dimensions and customer retention (CR) in Ghana’s hotel industry.Design/methodology/approachThis quantitative-based explanatory research obtained primary data via structured questionnaires from 277 hotel customers in Ghana, processed it with SmartPLS4.0 software, and analysed it with structural equation modelling.FindingsCRM dimensions (CRM-based technology, managing knowledge and personalisation of services) and CINV positively affect CR. Also, CINV partially mediates the interactions between the CRM dimensions and CR in Ghana’s hotel industry.Research limitations/implicationsThe study is geographically limited to hotels in Ghana and conceptually limited to three CRM dimensions, CINV and CR. Methodologically, the study was limited to the quantitative approach. However, our outcomes imply that hotels in Ghana that invest in relevant CRM dimensions would improve CR. CRM-CR association can also be improved through CINV.Practical implicationsThe study outcomes imply that when Ghanaian hotels implement the CRM dimensions and foster active CINV, their customers’ retention will improve significantly. Hence, CRM and CINV are prerequisites for enhancing CR in Ghana’s hotel industry.Originality/valueThe study offers valuable contributions to the current literature on CRM, consumer behaviour and hospitality management, especially in a developing economy context. Its novel contribution, the mediating role of CINV, would advance CRM studies in the hospitality sector.