TECHNOLOGY AND CONSUMER RELATIONSHIP MANAGEMENT: A STUDY OF INDONESIAN TRAVEL AGENCIES

Abstract

ABSTRACT Characteristics of tourism market, which are highly influenced by external conditions, are different from normal market conditions. In this context, technology can serve to minimize the influence of external factors by improving and maintaining consumer relationship and loyalty. Using the data from a survey of 123 travel agency firms in Indonesia, this article examines the effect of technology-based consumer relationship management (CRM), consumer equity faithfulness, and market sensing on the quality of consumer data and CRM performance. The study finds that technology-based CRM and consumer equity faithfulness significantly influence the quality of consumer data and CRM performance. Further, the quality of consumer data influences the performance of CRM. This study also suggests the importance of technology adoption by travel agency firms to improve internal performance, facilitate consumer relationships, and explore new tourist destinations. On the other hand, it shows that company orientation towards market sensing focusing on responsiveness and utilization of tourism at a particular moment can not be used as a determinant for the consumer data development and CRM performance. Keywords Technology-based CRM, market sensing, consumer equity faithfulness, quality of consumer data, and CRM performance