Validation of CRM Variables on Customer Satisfaction, Loyalty, and Commitment in the Mid-Market Hotel Sector

Abstract

The paper aims at developing a conceptual framework of customer loyalty and commitment on customer relationship management (CRM) in the mid-market segment of hotel sector. The investigation was conducted with sample size of 410 usable respondents in the four major states of eastern India, which represents mid markets for the hotel industry. SPSS-20; AMOS-20 were used to conduct the statistical analysis. The result indicated that variables of CRM i.e., service quality, employee behavior, relationship management, information technology, effective interaction management influence customer satisfaction positively but only three variables hospitality management, service quality and employee behavior have direct positive impact on customer loyalty or retention. It is also significant to learn from the empirical evidence that in the mid-market segment environment loyalty/retention leads to commitment. Further, the findings of the study revealed that variables of CRM play a significant role in customer retention and loyalty through satisfaction. Since commitment and loyalty are synonymous and positively associated with each other also evidented by the results. The research further suggested managerial and prcatical implications in the mid-market segment of hotel sector.

Keywords: Customer Satisfaction, Customer Retention, Relationship Management, Commitment

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