Relationship between customer relationship management and customer satisfaction with restaurant service: A case study of Hotels in NCR

Transcription

1 Relationship between customer relationship management and customer satisfaction with restaurant service: A case study of Hotels in NCR Abstract Dr. Gunjan Malik Assistant Professor IHTM, MDU Objective: The study aims at examining the relationship between customer relationship management and satisfaction with restaurant service. Research Methodology: The primary data was collected from guests visiting five star and five star deluxe hotel in NCR through a structured questionnaire and regression analysis was applied to examine the relationship. Findings: The study found that there exist a positive relationship between customer relationship management and satisfaction with restaurant service but with a lower strength. Proposed Utility: The study will help the hotels to understand the significance of the relationship between these two variables as restaurant is one of the key departments of hotels and has a crucial contribution in delivering quality service. Key words: customer relationship management, hospitality industry, service quality. Introduction Whenever a customer stay in a hotel the basic product is the room but he avails other services also to make his stay comfortable and enjoyable like room service, restaurant, gym, housekeeping etc. All service departments play their roles in the delivering quality service. Front office staff welcomes the guest with a smile on their faces and handle their queries, housekeeping department maintains the cleanliness of the hotel, room service tries to pamper the customer and deliver everything at their doorstep whereas restaurant which is an integral part of hotel provides food to the customer which relishes their stay and experience. Not only the food but also the service of the restaurant, courteous staff, quick service, well dressed and well mannered waiters etc play their part in making the stay of customer memorable. Even the restaurant tries to understand the specific needs like spicy or non spicy food, allergies to specific ingredients, preferred oil for cooking etc so as to customize the food according to the needs of the guests. Customer Relationship Management is also such strategy by which hotel tries to establish and maintain long term relationship with the customers. For effective implementation of CRM integration and coordination of all the departments of hotel is required. So, it is necessary to see the relationship between customer relationship management and customer satisfaction with restaurant service. id- jamrpublication@gmail.com Page 235

2 Review of Literature Han and Ryu in 2007 in their study on the restaurant industry accentuated that if a hospitality firm wants to create a competitive edge, the key to do that is delivering high quality service which will further help in customer satisfaction. Booms and Bitner in 1982 propagated that if an hospitality firm wants to create a positive brand image and also want to influence the revisit intention of customer it needs to effectively manage the service space, the ambience of the hotel or restaurants so that a positive mapping/ perception can be done in the mind of consumers among this warlike competitive scenario. The environment of the restaurant can also help in enhancing the satisfaction levels by delivering quality service experiences. Many studies have been conducted on quick casual restaurant and a relationship between restaurant quality service and customer behavioral intensions have been investigated and it has been found that that quality food, quality service and a good ambience has a positive impact on the customer behavioral intentions. (Bujisic, Hutchinson and Parsa, 2014) Crosby and Johnson in 2000 in their study argued that CRM is a business strategy which needs support of HR and Technology. For successful implementation CRM also requires alignment with relevant processes and its main focus should be on establishing proactive customer relationships to create a base for profitable customer loyalty by understanding the customer needs and desires. CRM to be implemented in an effective manner requires co-ordination and synergy among different departments within organization. (Crosby,2002; Rigby, Reichheld, and Schefter, 2002; Chen and Popovich, 2003). According to Chickweche and Fletcher in 2013 it was found that for successful implementation of CRM there has to be an effective integration of organization s different departments. Vasiliu in 2012 also discussed that CRM as a business strategy includes operations, marketing, customer service, finance, human resource, sales and information technology. Further in his study he professed that CRM leads to a satisfied customer and it also improves the sales by delivering better quality of service as expected by customers. Stevens et al. in 1995 in their study on restaurant industry summed up by stating that quality service in a restaurant is analyzed with the help of various tangible features like courteous behavior of staff, personal care for the customer, responsive attitude and also a professional behavior. Customer expectations should be met successfully as unfulfilled needs and expectations of customers force him to switch over. Moreover, all the above said behaviors of staff are a prerequisite of customer relationship management. So, a modest attempt has been made by the researcher to examine the relationship between customer relationship management and satisfaction with restaurant service. id- jamrpublication@gmail.com Page 236

3 RESEARCH METHODOLOGY OBJECTIVE The main objective of the study is to examine the relationship that exists between customer relationship management and customer satisfaction with front office. DATA COLLECTION SECONDARY DATA Secondary data has been collected by reviewing research papers, articles, case studies, newspapers, magazines etc. PRIMARY DATA For collection of primary data a structured questionnaire was developed which was pre tested. To achieve the objectives of the study the questionnaire has been divided into three parts. The first Part A has been made to collect the diverse demographic details of the respondents. Part B of the questionnaire comprises of the questions related to customer relationship management. Part C of the questionnaire consists of the question related to customer satisfaction with restaurant service.. SURVEY SAMPLE OF THE STUDY The survey sample includes the guests visiting five star and five star deluxe hotels in Delhi, Gurgaon, Noida and Faridabad. A total of 700 questionnaires were sent to five star and five star deluxe properties in NCR and we got back 600 questionnaires out which 525 were complete and worth using for analysis. TABLE: 1 5 STAR AND 5 STAR DELUXE PROPERTIES OF DELHI AND NCR Name of the Hotel Category No. of Rooms Vivanta By Taj, Faridabad 5 star 287 Crown Plaza Today, Gurgaon 5 star 234 The Gateway Resort, Gurgaon 5 star 78 Hotel Amanbagh, Delhi 5 star 40 Park Plaza, Delhi 5 star 91 Piccadily Hotels, Delhi 5 star 228 Vivanta By Taj, Delhi 5 star 88 Radisson Blu, Dwarka 5 star 217 Double Tree by Hilton 5*D 184 Hyatt Regency, Gurgaon 5*D id- jamrpublication@gmail.com Page 237

4 The Bristol 5*D 83 The Leela Ambience, Gurgaon 5*D 412 Westin, Gurgaon 5*D 313 Trident, Gurgaon 5*D 136 Vivanta by Taj, Gurgaon 5*D 208 Hotel Welcom Sheraton, Delhi 5*D 220 Shangri -la s Eros Hotel, Delhi 5*D 324 The Ashok, Delhi 5*D 550 The Leela Ambience, Delhi 5*D 480 The Lodhi, Delhi 5*D 68 The Oberoi, New Delhi 5*D 289 The Park, New Delhi 5*D 220 Eros Hotel, New Delhi 5*D 216 Hyatt Regency, New Delhi 5*D 512 ITC Maurya Hotel, New Delhi 5*D 442 JaypeeVasant Continental, New Delhi 5*D 119 J W Marriott 5*D 315 Radisson Blu Plaza, New Delhi 5*D 261 Taj Palace, New Delhi 5*D 403 Imperial, New Delhi 5*D 235 The Leela Palace, New Delhi 5*D 254 The Metropolitan, New Delhi 5*D 178 Jaypee Green Golf and Spa Resorts, Noida 5*D 170 Radisson Blu MBD Hotels, Noida 5*D 127 Radisson Blu Hotel, Ghaziabad 5*D 147 Source : Ministry of tourism website ( RELIABLILITY ANALYSIS To determine the reliability of structured questionnaire Cronbach s Alpha test is used. The high value of Cronbach s Alpha (0.950) is suggesting the high reliability of the scale. id- jamrpublication@gmail.com Page 238

5 Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items TABLE: 3 SCALE TO ASSESS CUSTOMER RELATIONSHIP MANAGEMENT IN SAMPLED HOTELS Sr. No. Item No. Description of Items Customer Relationship Management Accomodation is provided as per guests 1 1 preference. At this hotel I feel like I am treated like a 2 2 queen or a king. The employees of hotel greet me with 3 3 courtesy and smiles at all times. The employees here are patient and spend time responding and explaining things to 4 4 me. The employees here communicate well 5 5 and are good listeners. The employees here are friendly, cheerful, 6 6 polite and responsive. Feedback at the time of checkout is always 7 7 taken. Front office staff enquired and also 8 8 informed about future reservations. The Hotel s staff seeks to proactively solve 9 9 a guest s problem. The Hotel is always able to negotiate the problems with the guests. Guests problems can be solved in an easy and friendly manner The Hotel s staff tries to solve the problem even when it is not the Hotel s responsibility. Response Categories and weight assigned to each category of Response SD 1 D 2 I 3 A 4 SA 5 id- jamrpublication@gmail.com Page 239

6 13 13 The Hotel has formal complaint system which covers both written and verbal complaints Problems with the Hotel are solved quickly The Hotel maintains Guest History Card The Hotel keeps me updated with new products and services available The Hotel keeps on informing frequently about guests loyalty programmes. The Hotel also informs about other special packages and discounts to regular customers. The hotel send greeting cards on birthday/anniversary to establish relationship with the guests If requested in advance, preferred tables were also reserved in restaurant The Hotel conduct studies to judge the satisfaction level of customers. The Hotel offers to regular customers some special packages/discounts to celebrate different occasions(like birthday, new year eve, anniversary, festivals.) Customer Relationship Executives are there for assessing the satisfaction level of customers Front office staff taps information for assessing satisfaction level of guests. Central Information System is there for tapping information for assessing satisfaction level of guests The Hotel pays attention and provides personalized care and takes care of special requirements of the customer Hotel makes an effort to find out what the guest needs The hotel communicates and develop relationship with its guests Hotel provides customized services and products to the guests. id- Page 240

7 Part B ITEM TO ASSESS PREVALENT LEVEL OF CUSTOMER SATISFACTION WITH RESTAURANT SERVICE Sr. No. 1 1 Item No. Description of Items DATA ANALYSIS AND DISCUSSION I am satisfied with the overall restaurant service. Response Categories and weight assigned to each category of Response CUSTOMER RELATIONSHIP MANAGEMENT AND SATISFACTION WITH RESTAURANT SERVICE TABLE: 3 MODAL SUMMARY OF REGRESSION BETWEEN CRM AND RESTAURANT SATISFACTION Model Change Statistics R Adjusted R Std. Error of R Square F Sig. F R Square Square the Estimate Change Change df1 df2 Change dimension a a. Predictors: (Constant), relationship b. Dependent Variable: The restaurant service of the hotel is also satisfactory. SD 1 D 2 I 3 A 4 SA 5 There is a relationship between customer relationship management and satisfaction with restaurant service as the R value is.558 but the lesser R square and adjusted R square says that chance of variance in satisfaction with restaurant service accounted by customer relationship management is 31%. TABLE: 4 ANOVA TABLE OF REGRESSION BETWEEN CRM AND RESTAURANT SATISFACTION Model Sum of Squares Df Mean Square F Sig. 1 Regression a Residual Total a. Predictors: (Constant), relationship b. Dependent Variable: The restaurant service of the hotel is also satisfactory. The relatively low value of F and the associated value of p.000 indicate that there is a relationship between these two variables but with a relatively lesser strength. So, the above analysis proves that customer relationship management strategies have impact on satisfaction with restaurant service but relatively with a lesser strength. id- jamrpublication@gmail.com Page 241

8 Conclusion The study proves that there exist a positive relationship between customer relationship management and customer satisfaction with restaurant service but chances of variance in customer satisfaction with restaurant service due to effective customer relationship management strategies being used is only 31 %. CRM can help in alleviated restaurant satisfaction but with a lesser percentage. References Booms, B.H. and Bitner, M.J. (1982).Marketing services by managing the environment, Cornell Hospitality Quarterly, Vol. 23 No. 1, pp Bujisic, M, Hutchinson, J and Parsa, H.G. (2014). The effects of restaurant quality attributes on customer behavioral intentions, International Journal of Contemporary Hospitality Management Vol. 26 No. 8, pp Chikweche, T. and Fletcher,R. (2013).Customer relationship management at the base of the pyramid: myth or reality?.journal of Consumer Marketing,Vol. 30(3), pp Crosby, L.A. (2002). Exploding some myths about customer relationship management.managing Service Quality, Vol. 12(5), pp Han, H. and Ryu, K. (2007). Moderating role of personal characteristics in forming restaurant customers behavioral intentions an upscale restaurant setting, Journal of Hospitality & Leisure Marketing, Vol. 15 No. 4, pp Rigby, D.K., Reichheld, F.F. and Schefter, P. (2002). Avoid the four perils of CRM. Harvard Business Review, pp Stevens, P., Knutson, B. and Patton, M. (1995). DINESERV: a tool for measuring service quality in restaurants, Cornell Hotel and Restaurant Administration Quarterly, Vol. 36 No. 2, pp Vasiliu, D. (2012). Approach to Customer Relationship Management (CRM)-the new key sales success. USV Annals of Economics & Public Administration, 12(1), id- jamrpublication@gmail.com Page 242