Effects of customer relationship management (CRM) dimensions on competitiveness of hotels in Diani- Kwale County, Kenya.

Abstract

Customer Relationship Management (CRM) dimensions are considered an essential benchmark for competitiveness in hotels. From Literature it is apparent that practicing CRM dimensions enhances competition in hotels. The main objective of this study was to examine the effect of CRM dimensions on competitiveness of hotels in Diani- Kwale County, Kenya. The study addressed the following specific objectives based on the model „‟ Behavioural dimensions of CRM which entail the practices of managing the relationship between the customers and the organization‟‟, to examine the effects of key customer focus, to find out the effects CRM organisation, to investigate effects of knowledge management practices and to examine effects of technology-based practices on competitiveness of hotels in Diani- Kwale County, Kenya. The hotels are high-class (rated) hotels with well-developed systems that have gone beyond to embrace the latest modes of hospitality marketing to attract both the local and international clientele with the need of gaining a competitiveness. The study adopted a descriptive and explanatory research design. Purposive sampling technique was used to select the three departments (front office, food and beverage and marketing) since they had required information that was in conformity with the objectives of this study and were in direct contact with customers from the hotels that had attained meaningful service levels. The total target population for the study was 445 employees which was used to determine sample size of 443 respondents by use of Mugenda formula. Questionnaire was used to collect data from the operational staff and managers. Data collected was analysed by use of mean, standard deviation, percentages, multiple regression analysis and presented in tables and figures. Cronbach‟s alpha showed the questionnaire to reach acceptable reliability for key customer focus, organisation management, knowledge management, technology- based and competitive strategies at α = 0. 744, α = 0. 867, α = 0. 823, α = 0. 699 and α = 0. 822 respectively. on the perceived task values scale comprising items found in each objective using the multiple linear regression analysis showed that key customer focus(β=0.006), Organisation Management (β= =0.009), Knowledge Management(β=0.008) and Technology-based practices(β=0.033) had significant effects on competitiveness. Therefore, when the value of the practices increases, the value of competitiveness also increases. The study confirmed that CRM dimensions when practised have effects on competitiveness of hotels in Diani. The study linked CRM to competitive success in hotels of Diani. If hotels in Diani wants to have a competitive advantage, they should be able to empower employees to efficiently serve services to customers and synchronize customer interactions across all channels. Within the context of increasing competition in the hotel industry, managers should determine which dimensions of customer relationship management (CRM) are appropriate to their particular target markets in order to craft appropriate positioning strategy.