Impact of Customer Relationship Management on Customer Loyalty in Luxury Hotels

Abstract

This study aims at making contribution to the literature on understanding the relationship between newlinecustomer relationship management, customer satisfaction and customer loyalty in context to newlineluxury hotels in India. This study attempts to investigate the dimensions of customer relationship newlinemanagement (CRM) and Customer satisfaction (CS) that influence customer loyalty (CL). Further, newlinethis study also examines the elements of Customer relationship management and customer newlinesatisfaction having a significant impact on customer loyalty, where customer satisfaction acts as a newlinemediating variable between customer relationship management and customer loyalty. An newlineexhaustive review of literature has been done to identify the theoretical framework and the factors newlineof customer relationship management, customer satisfaction, customer loyalty workable in the newlinehotel sector. The CRM dimensions is taken as independent variable, customer loyalty as dependent newlinevariable and Customer satisfaction as a mediating variable. The sampling technique used was newlinestratified sampling and total sample size was 392 respondents customers availing the services of newlineluxury hotel in Delhi /NCR. Further, the data was collected by conducting survey method. newlineQuestionnaire was used as a research tool. Likert scale was developed for the measurement of the newlineabove-mentioned constructs. Various research tools like confirmatory factor analysis and newlinedescriptive statistics to understand the dimensions of CRM and CS which is workable for luxury newlinehotels in India. Later, the researcher has also verified the association among the three constructs newlineof this study by conducting Covariance based structural Equation modelling (SEM). The findings newlineshows that all the dimensions of customer relationship management along with customer newlinesatisfaction has a major impact on the customer. newline