dc.description.abstract |
The hotel industry in Kenya faces challenges in maintaining quality customer relationships
with increased complaints trending on social media platforms. Negative information through
social media adversely affects the relationship quality of customers and results in business
loss and survival. Therefore, Social Customer Relationship Management (Social CRM) as an
emerging paradigm can enable businesses to better understand, engage, and build a quality
relationship with customers while managing customer perceptions. Nevertheless, most of the
research on Social CRM, a relatively new phenomenon, in the hospitality industry is limited
and is mostly focused in Asia and Europe with little in Africa and none in Kenya, particularly
in the hospitality industry. Literature in Africa has focused more on the banking industry and
SMEs in West and South Africa with little research focusing on the marketing dimension of
special CRM. The study’s main purpose was to establish the effects of Social CRM
dimensions and customer perceptions on relationship quality in selected hotels in Nairobi,
Kenya. The study specifically determined the effect of data and information, processes and
Social CRM strategies dimensions on customer perceptions and relationship quality. The
mediating effect of customer perceptions on the relationship between social customer
relationship management dimensions and relationship quality was also determined. Malthouse
Social CRM house model, Relationship marketing, and Expectancy Disconfirmation Theories
anchored the study. The study utilized sequential explanatory research design with a target
population of an average of 16,464 customers per month from online hotel bookings and 29
target population for GRM, from three five-star rated hotels in Nairobi purposively selected.
A sample size of 400 was selected using simple random sampling for customers and 9 GRM
purposively selected. Data was collected from customers using a structured questionnaire.
Quantitative data were analyzed using the Structural Equation Model (SEM). Findings
showed that the final SEM model explained 58% of relationship quality, with R2 (0.58,
p=0.000<0.05) and was fit (CFI=0.988, GFI=.943, NFI= 0.966, RFI=0.958, PNFI= 0.783,
RMSEA=0.038, χ2(df) 185.506 (124), p=.000<0.05,). The results for the direct effect
indicated a positive and significant effect of data information dimension (β 0.301,
p=0.000<0.05) and processes dimension (β 0.142, p=0.000<0.05) on relationship quality in
hotels. However, the Social CRM strategies dimension (β=0.017, p=.707<0.01) had an
insignificant effect on relationship quality. Further, customer perceptions partly mediated the
relationship process dimensions (indirect effect β=.180 p=0.000<0.05), data information
(indirect effect β=.162 p=0.000<0.05), and hotel relationship quality. The study concludes
that process and data information dimensions of social customer relationship management
significantly affect relationship quality through customer perceptions. Thus, the study
recommends that hotels should focus more on the data and information dimensions in
addition to the hotel’s process dimensions as they seem to majorly affect relationship quality.
Although Social CRM strategies were found not to affect relationship quality, realigning the
strategies from sales and marketing to link with processes and data could boost relationship
quality. From qualitative results, it was noted that customers mainly use WhatsApp,
Facebook, X (formerly known as Twitter) and Instagram to connect with friends, family,
groups with similar interests and local businesses respectively. Hotels can maximize the
potential of the social media channels to obtain value. In addition, social media such as
WhatsApp was found to be most used for internal communication by employees and
management to address customer request through ‘customer 360’. The study recommends that
management should focus on training employees on social media and organizational
processes while constantly monitoring and addressing issues raised in social networks to build
robust customer relationships. The research adds to new knowledge that customer perception
has a significant and positive mediating role in relationship quality. It also improves on
malthouse social CRM house process dimension by consolidating three indicators (e-culture,
employee skills, management support) to organization e-structures and support. For
relationship quality trust-based satisfaction was achieved (from customer satisfaction, and
trust). |
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