Crm in Hotel Industry

Crm in Hotel Industry

Int. Journal of Economics and Management 3(2): 297 – 316 (2009)

ISSN 1823 - 836X

Linking CRM Strategy, Customer Performance Measures and Performance in the Hotel Industry
NOR AZIAH ABU KASIMa* AND BADRIYAH MINAIb
b

Graduate School of Management, Universiti Putra Malaysia Faculty of Economics and management, Universiti Putra Malaysia
a

Customer relationship management (CRM) has been increasingly adopted because of its benefits of greater customer satisfaction and loyalty, which in turn, leads to enhanced financial and competitive performance. This paper reports on a study that examines the relationship between CRM strategy and performance and determines whether the use of customer performance measures plays a mediating role in the relationship between CRM strategy and performance. This study contributes to the limited literature on CRM strategy since little is known about the use of CRM strategy and customer performance measures and their relation with performance in the hotel industry in Malaysia. Data were collected through a questionnaire survey of hotels in Malaysia. Hierarchical regression analyses on a sample of 95 hotels revealed that only the information technology dimension of CRM strategy has a significant and positive effect on performance. In addition, the hypothesis concerning the role of customer performance measures as a mediator was supported. Keywords: Customer relationship management strategy, customer performance measures, hotels, performance, mediator. JEL Classification Codes: M41, M31.

AbStRACt

INtRODUCtION
Economically, the tourism industry is the third economic pillar and second largest source of foreign revenue in Malaysia (The Financial Press, 31st August 2007). As the largest tourism promotion, the Visit Malaysia Year 2007 demonstrated the
Corresponding Author: Email: noraziah@econ.upm.edu.my Any remaining errors or omissions rest solely with the author(s) of this paper.
*

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