Influence of Customer Relationship Management Dimensions on Performance of Classified Accommodation Facilities in Coast Region of Kenya

Abstract

Customer Relationship Management (CRM) is an expanded domain of Relationship Marketing with an information technology component which enables a firm to manage its customers' data with an aim of improving the firm-customer relationship. Though implementation of CRM has the potential to transform organizational performance, this is not well known and understood in Kenya's hospitality industry where some performance indicators have shown that the hospitality industry is not doing well. Although CRM strategy has promised to offer remedy, not much is known on how hospitality industry in Kenya has embraced CRM as a strategy. Thus this study was inspired by the desire to establish how hospitality industry in Kenya has implemented CRM. The general aim of this study was to assess how CRM measurements influence the performance of classified accommodation facilities in the Kenya Coast region. The study's basic aims were: to determine the relationship between Customer Orientation (CO) and the performance of classified accommodation facilities in Kenya's Coast region; to determine whether Customer Relationship Management Organization (CRMO) has an influence The performance of classified accommodation facilities in the Kenya Coast region; the relationship between knowledge management (KM) and the performance of classified accommodation facilities in the Kenya Coast region; the relationship between technology-based customer relationship management (TB-CRM) and the performance of classified accommodation facilities in the Kenya Coast region;. The study was anchored on three theories: Resource based view, knowledge based view and dynamic capabilities based view. This study utilized a descriptive research design with cross-sectional sample survey approach. A questionnaire with structured-undisguised questions was used for data setting. The study's target population comprised of 36 classified accommodation facilities out of which 33 classified facilities were included in the sample. Ten departmental functional managers were used as respondents. The study employed various statistical tools which included descriptive statistical analysis, correlation analysis, and multiple regression analysis and moderated multiple regressions for data analysis. The results showed that each aspect of the CRM has a positive and important impact on the performance of classified accommodation facilities in Kenya's Coast area. The results also indicated that there is no significant moderating effect of the organizational size on the relationship between CRM dimensions and performance. Based on the findings, the CRM measurements have a major effect on the efficiency of classified accommodation facilities in the Kenya Coast area and that the organization's size has no major impact on the relationship between the CRM measurements and the performance of classified accommodation facilities in the Kenyan coastal region. Therefore the study recommended that accommodation facilities in Kenya should embrace CRM for by so doing, they will be assured of performance improvement; this benefit will be realized by all accommodation facilities regardless of their size.