A Study On Investigation Of Influence Of Customer Relationship Management On Customer Retention: A Case Study Of Hilton Lane Park

. Introduction

With increased competition among hotel industry of UK, organizations have become highly concerned towards effective management of customer relationship in order to gain high loyalty of customers. Customer relationship management (CRM) is a concept that has been emerged from the field of management. It involves capability of employees working within an organization to deal with customers and clients. In case of effective customer relationship management, organizations use advanced technologies for synchronizing, automating and managing all processes of business (Nazir et al, 2014). Organizations focus on customer relationship management for increasing satisfaction level of customers and to enhance profitability of business. In case of hotel industry, there is more need of focusing towards relationships with customers. In order to build better relationships with customers, hotels use various technologies, tools and strategies. This helps firms in enhancing their sales. There is a link of CRM with strategies of business rather than technical processes of business (Payne, A. and Frow, 2005).

It has become important for organizations to build positive relationships with customers in order to utilize them as a source of marketing. While building strategies and policies, organizations have to consider customers more specifically, so that strategies and policies can be built according to demands of customers. With the help of customer relationship management, companies get an opportunity of retaining customers for longer time period. This makes them capable of increasing their sales through retained customers. Different strategies and policies are formed by hotels for retaining customers and ensuring high service-orientation in employees. In accordance with Kumar (2010) with increased changes in business environment, operations of business get affected in a both positive and negative way. In today’s competitive business world, the main of business is to satisfy their customers and retaining them for longer period of time in order to gain competitive advantage. Effective techniques of marketing are highly important for focusing on basic approach of customers. Specifically in hotel industry, there is a strong need of using advanced techniques and strategies for maintaining customers’ loyalty. It has been stated by Linoff and Berry (2011) that it is not enough for organizations to get long term success through satisfied customers. In order to earn high profitability and to ensure long term success, organizations have to retain customers for longer time period. 

In hospitality industry, customers are considered to be king, so in order to make them happy, it is significant for hotels to build long term relationships with them. For effectively fulfilling expectations of customers, there is a need of focusing on niche segments. In case of customer relationship management strategy, stress is laid on single consumer. For retaining customers, organizations try to satisfy them through various strategies (Buttle, 2009).

According to Ngai et a (2009) the main goal of marketing is providing value to customers, building long term links and providing ease to customers. In case of un-ability of organizations regarding fulfilment of customers’ requirements, there will be no benefit of marketing efforts. So, effective and appropriate strategies are required for building positive relationships with customers. It has been stated by Krasnikov et al (2009) that in case of 5% improvement in customer retention, companies get 25% to 75% increase in their profits. It has been mentioned by Heller Baird and Parasnis (2011) that for getting new customers companies have to bear high cost.

Marketing is considered as a significant aspect for customer relationship management. It helps in influencing individuals and society through various methods such as introducing new products and services, getting information about needs and demands of customers and helping people to get those services that suit them best. In addition to this, customer relationship management through marketing increases concerns relevant to ethical issues integrated with addictions, additional consumptions and the impact on society and environment. A major role is played by marketing particularly in hotel industry for making customers satisfied (Lin et al, 2010).

In accordance with Ernst et al (2011) the price of product or services is accounted for efforts of marketing. The CRM strategy implementation is based on valuable asset that are customers, so relationships with them must be made in an appropriate and intelligent way. CRM is considered to be an instrument used for making customers feel free for performing the services through different channels of communication and for attracting potential customers.

In previous days, companies did not give high importance to the fulfilment of needs of company. Companies usually do not get success in finding proper substitution for current suppliers or advanced technology due to which they feel difficulty in fulfilling needs of customers. Customer relationship management is an advanced term that is considered to be important in most of organizations (Reimann et al, 2010). Customer relationship management is a process through which company identifies customers, build relationships with them and formulate perceptions regarding company and its products and services. In hotel industry, there is more concern towards building better relationships with customers in order to retain them for longer time period. This study will be done in order to analyze the impact of customer relationship management in hotel industry (Piercy, 2009).

1.1. Research Aim

This research is aimed to assess the influence of customer relationship management on customer retention.

1.2. Research Objectives

The research has following objectives;

  • To evaluate the significance of customer relationship management for the hotel industry.
  • To identify the utilization of customer relationship management in hotel industry of UK.
  • To assess the importance of customer retention for the hotel industry.
  • To study the effect of customer relationship management on customer retention.
  • To evaluate the impact of CRM on customer retention in Hilton Lane Park, UK.

2. Methodology

2.1. Research Approach

In order to conduct research in an appropriate way, it is significant to select a research approach that best suits the topic of research. There are two main approaches from where one or mixed approach must be selected. There are various benefits as well as drawbacks linked with both research approaches. One of the research approaches is qualitative research approach. In this research approach, exploratory information is used. In this approach, researcher has to perform qualitative data analysis. This approach involves detail of different items and events. Qualitative research approach helps researchers in getting detailed information about a particular topic. One of the major disadvantages of this research approach is researcher’s biasness. As it does not include any facts or figures, so, there are chances of researcher biasness in it (Aspers, 2009).

In the fields of finance and economics, mostly quantitative research approach is used. However, through the approach in fields of marketing, social sciences and management has enhanced different folds. The basic aspect or step involved in this approach is getting factual information about the topic. This approach tries to do the measurement of different procedures. Because of this feature of quantitative approach, the approach becomes even more reliable. The outcomes which are acquired with the help of this approach are not much reliable but they cannot be used for a larger population. This research approach helps in managing the researcher biasness. The outcomes cannot even be impaired through the business that is present in the researches. However the content of information which is developed with the help of this approach is very limited. The researchers have also stated that to be dependent on some particular methods and instruments may not be useful for the research (Mettler, 2011).

It has been decided by the researcher to follow the quantitative method in this research. The main reason behind the selection of this approach is its ability that it can control the researchers’ biasness. In addition to this, the researcher would become capable of developing reliable results and findings from the research. It was not suitable for researcher to mix both approaches. So, researcher used only one approach that is quantitative approach in which there will be a need of collecting data from respondents through questionnaires.

2.2. Research Philosophy

Research philosophy plays a very important role in conducting a study effectively. With the help of research philosophy, researcher becomes capable of completing the study by using effective and most suitable ways. The philosophy is linked with the generation of knowledge in the research. With the help of philosophy, the determination of the nature of develop model is also done. Saunders et al. (2009) have given a research onion. Four main philosophies are explained with the help of this research.

Positivism:

In this kind of philosophy, there is an integration of researchers with natural scientists. This philosophy is mostly suitable in researches where there is more involvement of society or with processes that can be observed socially. This philosophy requires generalizability of laws. A very structured methodology is followed by researchers who tend to follow this strategy. The flexibility element is not present in this philosophy. The researcher who follows this approach makes hypotheses then testing of hypotheses is done and outcomes are developed.

Interpretivism:

According to the point of view of this philosophy, the systems present into the management and financial systems are very complex and a single procedure cannot be utilized in order to understand them. That is why; different procedures should be used by the researcher for ensuring high understanding of processes or methods used in study. The stress is led by the philosophy upon treatment of human beings like social actors (Cohen et al, 2013).

Realism:

In this philosophy, various procedures are scientifically investigated and inquired. On the basis of this philosophy, the reality is basically judged relying on the five senses. The real life realities are different as compared to the assumptions. There is a need of evaluating assumptions and these are quite different than realities.

Pragmatism:

According to this research philosophy, some of the research questions are more suitable to answer comparing to the others. A researcher should again review the research questions. The dependence on single procedure may not be enough able to develop beneficial outcomes. This philosophy helps to focus on integrating two of the research approaches which are described. With the help of this integration large number of information is developed which increases the interpretation and knowledge of reader and researcher regarding the procedures (Koul, 2009).

The current research will follow the positivism philosophy. This philosophy proves to be more beneficial in terms of performing analysis of the thing which is under research. Highly structured methodology is followed by the researcher in the current research. The planning of this methodology is done carefully. The development of hypotheses will also be done and will be checked at the end of research. The testing of hypotheses will be done relying on the outcomes which are acquired by the statistical analysis of the data which is collected. The researcher will perform the generalization of the results of current research depending on positivism philosophy.

2.3. Sampling Plan

Identification of focused population should be done and selection of sample should be done from the population at the stage of designing Kothari (2004). Along with it, in accordance with Creswell and Clark (2007) a sample size which is more than 30 and is less than 500 is suitable for the research. According to Bryman (2015) a sample of 200 is quite good for the performance of analysis, specifically in case of researches which perform some surveys. The sample will be customers of Hilton Lane Park. The final data set will be made on 150 customers of Hilton Lane Park.

2.4. Sampling Design

According to Zikmund (2012) only sample size cannot be taken as some reliable marketing source. The selection method is also significant in order to make the sample more reliable and to represent the population. The selection criteria in order to select and non-select the factors in the population should be lucid. However, a researcher can go through different constraints while the researcher chooses the sample from the population. Objective convenient sampling is followed in the current research. The researcher is suffering from different time and budget constraints. To select the sample on probability can even include important cost and time. That is why; in order to take into account the constraints sampling strategy will be followed by the researcher relying on the convenient sampling. When budget and time constraints are faced by the researcher, then it is the most suitable sampling (Bryman and Bell, 2015).

2.5. Data Collection

The collection of data in the current research will be done with the help of web based and self-administered questionnaires. The respondents will have some concern related to the data they collect. They concern about their identity, as their identity can be depicted after the data collection and it can generate serious issues for them in the firm. The firm can penalize them from giving the information regarding the organization to any outsider. The collection of data is being done from customers over here and they have been asked to give the information related to the customer relationship management practices of hotel. That is why; penalization fear is not much prevalent in customers ‘case. In spite of the fact, secrecy of customers will highly be ensured by the researcher and is maintained by the researcher.

2.6. Instrument

Questionnaire will be used for the collection of data. The questionnaire will be taken as the main instrument and it is used to measure variables under research. The instrument will consist of different items beside demographic variables. The development of instrument will be done by the research relying on the past researches.

To select suitable measurement scale should be done in careful manner. This questionnaire is dealt as ‘instrument’ here and it is utilized for measuring variables under research. The scores accuracy of the test which is applied onto the data relies on the measurement scale. Five point likert scales will be used by the researcher. The development of scale will be done in order to get agreement of workers on the statements which are being asked from the respondents in the research. In questionnaires, 5 options will be given to respondents as in accordance with Likert scale from Strongly Disagree to Strongly Agree. First of all, respondent will have to give his or her demographic details and then there will be items related to each variable.

2.7. Data Analysis

The entry of the collected data will be done into SPSS 20 for the purpose of analysis. Different tests will be conducted in order to perform a comprehensive analysis. The researcher will first do the demographic analysis in order to look over the sample features. Demographic analysis is very important for the interpretation of the applicability of research. After the correlation and regression, tests will be run.

2.8. Ethical considerations

A good research approach complies with the ethical research standards. A researcher should always follow the ethical exercises while he performs some research. The researcher in the current research will follow ethical exercises and collaboration with ethical standards has been ensured from researcher. The researcher will make sure that worker is recognized in the individual capacity. It will be ensured that data of respondents is confidential. In addition to this, there was no enforcement over respondents to provide the data. Coercive means will not be used the researcher in order to collect the data. The respondents will be provided enough time to give the data. This proved to be beneficial in acquiring unbiased data.

 

 

3. Time Scale

 

 

4. Limitations

Despite of having some positive points, there are some limitations in this research proposal. First of all, research will be done on one hotel, so there is only one case study. Due to this, the generalizabity of research is very low. In future, more hotels can be assessed for increasing generalizability, as for now due to lack of resources and time researcher chose on hotel. In addition to this, sample size of this research is small. So, in future large sample size can be chosen. These points will help in increasing generalizability of research.

5. Data Presentation Plan

Data collected from respondents will be analyzed in SPSS and it will be presented in the form of tables and charts. Responses of all items will be presented in tables and charts along with percentages of frequency.

 

 

 

PART 2: REFLECTIVE STATEMENT

 

This task of proposal making has really helped me in enhancing various skills of mine. While making this proposal, I had to show my analytical skills. Analytical skills are those resources which cannot be acquired with much ease. To have or to being enough able to make better analytical skills is the best ways with the help of which student can surely excel. With the help of this research proposal, my analytical skills were not only increased and stimulated but they also got more developed. Being enough able to implement theory and practice is used for evaluating a research student. The research proposal has helped me in development of these. The research proposal has enhanced my analytical skills, and has also assisted in acknowledging various approaches to aspects of research related to organizations. Previously, I had no ability to learn through different resources like practice and theory. Instead, it was just a matter of utilizing only one resource and then making attempts to fill the information through using other avenues. According to me the research proposal has made me enough able to better place to link secondary and primary information resources for all kinds of researches as only in this case, the outcomes acquired will have the accuracy level which is required and to be acceptable and authentic. This was done by me in case of literature review analysis and assessing methodology for conducting primary research. Professional skills are significant to ensure that whatever documentation is done the outcomes are genuine. Through this research proposal, my personal information related to the analysis and collecting skills have been improved. Any write-up should have the backing of the most valid data. Sometimes it is hard to collect this data with the help of choice during researching process. Therefore, it is critical that being writer one should be very selective – to get the most significant and right information from the total available information. This research proposal has assisted me in collecting the art of selection of most significant and relevant information from the left so it should be equipped in a better way.

I have developed confidence in my-self that during the research I do not worry about the information validity as long I follow all of the compulsory research strategies. Self confidence has assisted me in increasing my performance not in terms of analysis only but in the full academic spectrum. I have also learnt that I should be dependent only on my research work and I should not depend on other people to have guidance. I work in order to get the results as per planning and I have transformed into a good manager in the process. To be independent is a type of quality that nourishes through development of self confidence.

 

 

 

References

Aspers, P., 2009. Empirical phenomenology: a qualitative research approach (The Cologne seminars). Indo-Pacific Journal of Phenomenology9(2).

Bryman, A., 2015. Social research methods. Oxford university press.

Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.

Buttle, F., 2009. Customer relationship management: concepts and technologies. Routledge.

Creswell, J.W. and Clark, V.L.P., 2007. Designing and conducting mixed methods research.

Cohen, L., Manion, L. and Morrison, K., 2013. Research methods in education. Routledge.

Ernst, H., Hoyer, W.D., Krafft, M. and Krieger, K., 2011. Customer relationship management and company performance—the mediating role of new product performance. Journal of the Academy of Marketing Science,39(2), pp.290-306.

Heller Baird, C. and Parasnis, G., 2011. From social media to social customer relationship management. Strategy & Leadership39(5), pp.30-37.

Kothari, C.R., 2004. Research methodology: Methods and techniques. New Age International.

Koul, L., 2009. Methodology Of Educational Research, 4Enew E. Vikas Publishing House Pvt Ltd.

Krasnikov, A., Jayachandran, S. and Kumar, V., 2009. The impact of customer relationship management implementation on cost and profit efficiencies: evidence from the US commercial banking industry. Journal of Marketing73(6), pp.61-76.

Kumar, V., 2010. Customer relationship management. John Wiley & Sons, Ltd.

Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five approaches. Health promotion practice, p.1524839915580941.

Lin, R.J., Chen, R.H. and Kuan-Shun Chiu, K., 2010. Customer relationship management and innovation capability: an empirical study. Industrial Management & Data Systems110(1), pp.111-133.

Linoff, G.S. and Berry, M.J., 2011. Data mining techniques: for marketing, sales, and customer relationship management. John Wiley & Sons.

Mettler, T., 2011. Maturity assessment models: a design science research approach. International Journal of Society Systems Science3(1-2), pp.81-98.

Nazir, S., Khan, S., Jamil, R.A. and Mehmood, Q.S., 2014. Impact of customer relationship management on customer satisfaction in hoteling industry. Journal of Management Info3(1), pp.84-98.

Ngai, E.W., Xiu, L. and Chau, D.C., 2009. Application of data mining techniques in customer relationship management: A literature review and classification. Expert systems with applications36(2), pp.2592-2602.

Payne, A. and Frow, P., 2005. A strategic framework for customer relationship management. Journal of marketing69(4), pp.167-176.

Piercy, N.F., 2009. Strategic relationships between boundary-spanning functions: Aligning customer relationship management with supplier relationship management. Industrial Marketing Management38(8), pp.857-864.

Reimann, M., Schilke, O. and Thomas, J.S., 2010. Customer relationship management and firm performance: the mediating role of business strategy.Journal of the Academy of Marketing Science38(3), pp.326-346.

Zikmund, W., Babin, B., Carr, J. and Griffin, M., 2012. Business research methods. Cengage Learning.

 

 


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