Structural Model of Relationship Analysis between CRM, RQ, and CLV at Hotel in Palembang

Abstract

The expansion of Palembang's tourism industry increasingly has positive results. The numerous awards given to the city of Palembang and the rise in tourist numbers are evidence of this. This is influenced by CRM, whose application seeks to increase Customer Lifetime Value (Usage Quantity, Loyalty, Word of Mouth, and Purchase Intention). However, only some studies have examined the relationship between CRM, Relationship Quality and CLV (Usage Quantity, Loyalty, Word-of-Mouth, and Purchase Intention) in the hotel industry. Consequently, a model analysis is required to assist the hotel industry in identifying the relationship between Relationship Quality and CLV (Usage Quantity, Loyalty, Word of Mouth, and Purchase Intention) because of utilizing CRM. This research took the point of view as a customer to investigate the influence of CRM on RQ. Moreover, this research also test whether the RQ will influence CLV factors. To determine the impact of CRM on RQ and RQ on CLV in the hotel industry, this project use Structural Equation Modeling (SEM) approach. The result of this research is expected to help hotel management in Palembang improve their performance by knowing the relationship between all factors.