The Mediating Role of CRM on the Relationship Between Service Quality and Customer Loyalty: The Case of Capital Hotel and Spa
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Date
2023-07
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Addis Ababa University
Abstract
This research paper examines the Mediating Role of CRM On the relationship between Service Quality and Customer Loyalty: The Case of Capital Hotel and Spa. It analyzes the effect of
service quality on the customer loyalty in the hotel industry. The significance and importance of Customer relation management in today's hospitality industry competitiveness is paramount in
the level of its practice and its possible results. The author in the research paper used primary data. The questionnaires were administered based on a convenience sampling method and obtained in Capital Hotel and Spa in Addis Ababa, Ethiopia. 270 questionnaires were distributed, and 253 available samples were collected, resulting in a response rate of 94% to all those who chose to participate. Using IBM SPSS and SmartPLS4 the role of customer relation management in between service quality and customer loyalty were identified. Findings indicate that service quality has a positive and direct effect on customer loyalty and customer relationship management. The result also shows that the effect of customer relation management on customer loyalty is positive and significant. In addition, the multiple hierarchical regression analyses showed that the relationship between service quality and customer loyalty is mediated by customer relation management. The results have implications for customer relationship managers and hotel managers who use relationship metrics to predict customer loyalty
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Customer Relation Management