Abstract
This paper examines the influence of Customer Relationship Management on customer satisfaction and customer loyalty in the Albanian Tourism Industry. Despite the fact that CRM positive influence on customer satisfaction is widely accepted as a rule of thumb, very little research has been done to further investigate on such a theory. Hence, the study tries to find out if an effective Customer Relationship Management strategy indeed influences customer satisfaction and loyalty. The empirical research attempts to unveil the relationship between Customer Relationship Management Effectiveness, customer satisfaction and customer loyalty by analyzing five CRM attributes, namely; Organizational commitment, Customer experience, Process-driven approach, Reliability and Technology Orientation. Results show that not all CRM features influence or equally influence customer satisfaction and loyalty. Furthermore, it proves that customer satisfaction is indeed a strong mediator of customer loyalty. Based on the results of the study, only organizational commitment, customer experience, process-driven approach and reliability influence customer satisfaction while only reliability positively influences customer loyalty. The hypotheses are tested using information collected from customers through structural equation model approach. The empirical results of this study have academic and managerial implications since they add to the existing body of knowledge and at the same time help CRM managers in the decision making process. DOI: 10.5901/mjss.2015.v6n2s1p635
Highlights
The story with Customer Relationship Management (CRM) begins more than a century ago, before the arrival of the supermarket, the shopping malls, and the automobile industry
The researches performed from Abratt and Russell (1999), Farquhar (2004) support the idea that CRM efforts help in establishing stronger bonds with the firm and higher customer loyalty levels
Effective CRM is defined as a function of five dimensions
Summary
The story with CRM begins more than a century ago, before the arrival of the supermarket, the shopping malls, and the automobile industry It was a time when America was made up of small towns and people went to their neighborhood store to buy goods. The consumer became more mobile ; supermarkets and large department stores were established so that economies of scale could be achieved through mass marketing. Even though this situation provided for lower prices, better and more standardized goods in terms of quality, the relationship between the person providing the goods and the customer became nameless and faceless.
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