Relationship marketing programs, cultural values, and relationship value on customer satisfaction in the Hotel Industry. A Case of Uganda

Abstract

In today’s highly dynamic business environment which is competitive, hotels need to re-think of their strategies on how to maximize customer satisfaction. This in turn increases market share and the hotel clientele expands. Relationship marketing programs can yield outstanding hotel performance in terms of clientele. Despite of the importance relationship marketing programs have in the actualization of customer satisfaction in the hotel industry in Uganda, studies have not been inclusive on the relationship between relationship marketing programs (RMPs), cultural values, relationship value and customer satisfaction between customers and service providers, especially from less developed countries such as Uganda. The focus of this study was to determine the effect of relationship marketing programs, cultural values as moderator in the relationship between RMPs and RV and CS, RMPs and CS as well as relationship value as a mediator on customer satisfaction in the hotel industry of Uganda. The study was in line with positivism approach anchoring on explanatory research design. The target population were customers from sixty-two (62) hotels registered under Uganda Hotels Association and categorized as per the report 14/02/2019 specifically covering four regions in the country. It was from sixty-two (62) registered hotels that a sample size of 19 hotels through proportionate sampling technique that were drawn. Through research intercept a total of 384 respondents from the nineteen hotels were selected. The study was informed by three factor theory, social exchange theory, and in complementarity with relationship marketing theory. This study collected primary data generated from structured questionnaires. Both descriptive and inferential statistics were used to analyze data. The hypotheses were tested using hierarchical and multiple regressions and Hayes macro- processes. The regression results showed RMPs with β = (.554*** p < .05), RV with (β = .251*** p < .05), CVs with (.328*** p< .05) all indicating a positive significant effect on customer satisfaction. In addition, the results showed that RV mediated the relationship between RMPS and customer satisfaction with (β = .251*** p < .05), and moderated- mediation strongly existed at lower level .052, CI = .008, .100 and did not take place at mean and higher levels. The results further showed that there is positive and significant moderation of cultural values between RV and customer satisfaction with (β = -.162, ρ< .05) and on RMPs and customer satisfaction with (β = .88** ρ< .05). The study concluded that there is a strong support for Social exchange theory that for hotels to maximize customer satisfaction, they have to exploit appropriately RMPs and cultural values. The results further concluded with a pointer that RMPs with the addition of cultural values influence customer satisfaction. The findings of the study are useful for the hotel industry in adopting relationship marketing programs incorporating in cultural values and sustaining relationship value which will boost customer satisfaction, consequently the hotel’s performance. Theoretically the study supported the incorporation of RMPs and cultural values in the enhancement of customer satisfaction. At the policy level the findings of the study will assist the efforts of the policy makers in regard to the hotel industry of the main areas of emphasis if local hospitality and tourism is to be promoted. Importantly RMPs and cultural values in consideration of customer and service provider relationship value particularly from the customer’s perspective greatly influence customer satisfaction.