Customer Satisfaction and Retention and its impact on Turism in Hotel Industry
Taking a case study of tourism as hospitality industry in Lampung Province in Indonesia, we analyze the impact on customer satisfaction and retention. Using Structural Equation Model (SEM), we find that customer relationship management has a significant impact on service quality, customer satisfaction and customer retention. Relying on the findings, we recommend some strategies for the government of Lampung Province, for example: training local people to behave more friendly in welcoming domestic or international tourists, fixing all lodging facilities, creating more souvenirs with Lampung’s ornaments and developing management system adopting global changes in technology, communication and trend.
CHEN, I.J. & POPOVICH, K. (2003). “Understanding customer relationship management (CRM): People, process and technology,” Business Process Management Journal, vol. 9 no. 5, pp. 672 – 688, 2003.
DEAN, A., MORGAN, D. & TAN, T.E. (2002). “Service Quality and Customer’s Willingness to Pay More for Travel Service,” Journal of Travel and Tourism Marketing, vol. 12 no. 2/3, pp. 95-110, 2002.
FERRELL, O.C. & HARTLINE, M.D. (2010). Marketing Strategy, 5th ed. Boston, MA: Cengage Learning, 2010.
HAN, H., BACK, K.J. & BARRETT. B. (2009). “Influencing factors on restaurant customers’ revisit intention: The roles of emotions and switching barriers,” International Journal of Hospitality Management, vol. 28 no. 4, pp. 563-572, 2009.
IVANOVIC, S., MIKINAC, K. & PERMAN, L. (2011). “CRM Development in Hospitality Companies for the Purpose of Increasing the Competitiveness in the Tourist Market,” UTMS Journal of Economics, vol. 2 no. 1, pp. 59-68, 2011.
JENG, D.J.F. & BAILEY, T. (2012). “Assessing Customer Retention Strategies in Mobile Telecommunications: Hybrid MCDM Approac,” Management Decision, vol. 50 no. 9, pp. 1570-1595, 2012.
KIM, M.K., PARK, M.C & JEONG, D.H. (2004). “The Effects of Customer Satisfaction and Switching Barrier on Customer Loyalty in Korean Mobile Telecommunication Services,” Telecommunications Policy, vol. 28 no. 2, pp. 145-159, 2004.
KOTLER, P. & KELLER, K.L. (2010). Marketing Management, 15th ed. New York: Pearson Education, 2016.
PARIDA, B.B. & BAKSI, A.K. (2011). “Customer Retention and Profitability: CRM Environment,” SCMS Journal of Indian Management, vol. 8 no. 2, pp. 66-84, 2011.
SEIDERS, K., VOSS, G.B., GREWAL, D AND GODFREY, A.L. (2005). “Do Satisfied Customers Buy More? Examining Moderating Influences in A Retailing Context,” Journal of Marketing, vol. 69, pp. 26-43, 2005.
SHARMEELA-BANU, S.A., GENGESWARI, K. & PADMASHANTINI, P. (2012). “Customer Retention Practices among the Major Retailers in Malaysia,” International Journal of Academic Research in Business and Social Sciences, vol. 2 no. 6, pp. 157-166, 2012.
SINGH, R AND KHAN, I.A. (2012). “An Approach to Increase Customer Retention and Loyalty in B2C World,” International Journal of Scientific and Research Publications, vol. 2 no. 6, pp. 1-5, 2012.
TAWINUNT, K., PHIMONSATHIEN, T & WANNO, F. (2015). “Service Quality and Customer Relationship Management Affecting Customer Retention of Long-Stay Travelers in the Thai Tourism Industry: A SEM approach,” International Journal of Arts & Sciences, vol. 8 no. 2, pp. 459–477, 2015.
TJIPTONO, F. (2004). Strategi Pemasaran (Marketing Strategy), 2nd ed. Yogyakarta: Andi, 2004.
WEBER, K. (1997). “The Assessment of Tourist Satisfaction Using the Expectancy Disconfirmation Theory: A study of the German travel market in Australia,” Pacific Tourism Review, vol. 1, pp. 35-45, 1997.
YEE, R.W., YEUNG, A.C & CHENG, T.C.E. (2010). “An Empirical Study of Employee Loyalty, Service Quality and Firm Performance in the Service Industry,” International Journal of Production Economics, vol. 124 no. 1, pp. 109-120, 2010.
ZEITHAML, V.A., PARASURAMAN, A. & BERRY, L.L. (1990). Delivering Quality Services. New York: The Free Press, 1990.