Determinants of Customer Retention in Five Star Hotels in Addis Ababa
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Date
2018-05-13
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Addis Ababa University
Abstract
In contemporary business world one of the fundamental concepts that makes or breaks a firm’s
success is customer retention. Hence this study focused on examining the determinants of
customer retention in five star hotels in Addis Ababa. Accordingly, three specific objectives were
crafted and examined through nine independent variables: Quality of Object, Quality of
Processes, Quality of Infrastructure, Quality of Atmosphere, Quality of Interaction, Trust,
Commitment, Communication, and Conflict handling. The research used a Deductive Approach
and quantitative method. In order to select the participants, both probability and non-probability
sampling method were employed. The data was collected through self-administered
questionnaire from each hotel and went through analysis using correlation as well as regression
after it was cleaned and tested for reliability and validity. The result of the correlation analysis
indicated that Quality of Interaction had high correlation with Quality of Infrastructure and
therefore, was excluded from further analysis. The regression analysis showed that seven of the
independent variables: Quality of Processes, Quality of Infrastructure, Quality of Atmosphere,
Trust, Commitment, Communication, and Conflict handling have significant effect on customer
retention while Quality of Object didn’t
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Keywords
Customer relationship Management, Customer retention