dc.description.abstract |
Hotel industry is one of the service sectors where competition is stiff to attract new or retain the
existing customers. Customer relationship management is one of the strategies whereby hotels
are using to be competitive in the industry. The objective of this study was to examine the effect
of customer relationship management on customer retention for the case of three and above star
hotels in Bahir Dar. The researcher used the components of CRM i.e. people, business process
and Technology to examine their effect on customer retention. The researcher used explanatory
research design to meet the research objectives and used convenient sampling method to get
representative sample from the populations. The researcher collected data from nine three and
four star hotels through structured questionnaire to assess customers’ level of agreement
regarding CRM practice in their respective hotels. The descriptive statistics (mean, standard
deviation) and inferential statistics (correlation and regression) were used to describe
demographic facts, to test hypothesis and to answer research questions. The statistical result
showed that Customer relationship management is represented by three components from the
three components two (people and business process) has a positive and significant influence on
customer retention and technology has no significant influence on customer retention. The
researcher suggested that hotels have to pay attention to people as it has highest influence on
customer retention. |
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