IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v11y2021i2p21582440211009224.html
   My bibliography  Save this article

Do Relationship Marketing Constructs Enhance Consumer Retention? An Empirical Study Within the Hotel Industry

Author

Listed:
  • Suha Fouad Salem

Abstract

The increasing growth of new hotels in the Malaysian domestic market indicates that the hospitality and tourism industry is growing rapidly. As a result, there will be high competition as customers can easily switch from one hotel to the other. Therefore, to maintain competition in the market, it is crucial for hotels to recognize the importance of conflict handling, trust, and customer commitment in maintaining good relationships with their customers. Hence, the objective of this study is to study, relationship marketing constructs such as conflict handling, trust, and commitment are evaluated based on their direct and indirect relationships with customer retention. Overall, 188 questionnaires were collected from hotel guests in Malaysia to evaluate the structural relationships between these constructs and the performance of the measurement model using SmartPLS 3.2.3. Moreover, the importance-performance map analysis (IPMA) was used to identify measures that could be utilized to enhance management activities. The research outcomes of this study indicated that customer retention is directly influenced by conflict handling, whereas customer engagement is directly affected by trust, conflict handling, and commitment. However, conflict handling, commitment, and trust indirectly affected customer retention via customer engagement. The IPMA also revealed several aspects to help decision-makers and managers prioritize their actions efficiently. The results of this study revealed that customer engagement and conflict handling had the highest effect, whereas commitment and customer engagement had the highest performance on customer retention in the hotel industry. Therefore, to maintain customer loyalty, it is recommended that hotel managers prioritize their customers’ complaints and resolve them effectively.

Suggested Citation

  • Suha Fouad Salem, 2021. "Do Relationship Marketing Constructs Enhance Consumer Retention? An Empirical Study Within the Hotel Industry," SAGE Open, , vol. 11(2), pages 21582440211, April.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:2:p:21582440211009224
    DOI: 10.1177/21582440211009224
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440211009224
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440211009224?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ho, Mia Hsiao-Wen & Chung, Henry F.L. & Kingshott, Russel & Chiu, Chun-Chen, 2020. "Customer engagement, consumption and firm performance in a multi-actor service eco-system: The moderating role of resource integration," Journal of Business Research, Elsevier, vol. 121(C), pages 557-566.
    2. Ashley, Christy & Noble, Stephanie M. & Donthu, Naveen & Lemon, Katherine N., 2011. "Why customers won't relate: Obstacles to relationship marketing engagement," Journal of Business Research, Elsevier, vol. 64(7), pages 749-756, July.
    3. Han, Heesup & Hyun, Sunghyup Sean, 2015. "Customer retention in the medical tourism industry: Impact of quality, satisfaction, trust, and price reasonableness," Tourism Management, Elsevier, vol. 46(C), pages 20-29.
    4. Jung, Jishim & Han, Heesup & Oh, Mihae, 2017. "Travelers' switching behavior in the airline industry from the perspective of the push-pull-mooring framework," Tourism Management, Elsevier, vol. 59(C), pages 139-153.
    5. Thakur, Rakhi, 2018. "Customer engagement and online reviews," Journal of Retailing and Consumer Services, Elsevier, vol. 41(C), pages 48-59.
    6. James Agyei & Shaorong Sun & Eugene Abrokwah & Emmanuel Kofi Penney & Richmond Ofori-Boafo, 2020. "Influence of Trust on Customer Engagement: Empirical Evidence From the Insurance Industry in Ghana," SAGE Open, , vol. 10(1), pages 21582440198, January.
    7. Estelle van Tonder & Daniël Johannes Petzer, 2018. "The interrelationships between relationship marketing constructs and customer engagement dimensions," The Service Industries Journal, Taylor & Francis Journals, vol. 38(13-14), pages 948-973, October.
    8. Haim Hilman & Narentheren Kaliappen, 2014. "Market Orientation Practices and Effects on Organizational Performance," SAGE Open, , vol. 4(4), pages 21582440145, September.
    9. Miquel-Romero, Maria José & Caplliure-Giner, Eva María & Adame-Sánchez, Consolación, 2014. "Relationship marketing management: Its importance in private label extension," Journal of Business Research, Elsevier, vol. 67(5), pages 667-672.
    10. Maxi Bergel & Christian Brock, 2019. "Visitors’ loyalty and price perceptions: the role of customer engagement," The Service Industries Journal, Taylor & Francis Journals, vol. 39(7-8), pages 575-589, June.
    11. Su, Lujun & Swanson, Scott R. & Chinchanachokchai, Sydney & Hsu, Maxwell K. & Chen, Xiaohong, 2016. "Reputation and intentions: The role of satisfaction, identification, and commitment," Journal of Business Research, Elsevier, vol. 69(9), pages 3261-3269.
    12. Oriol Iglesias & Stefan Markovic & Mehdi Bagherzadeh & Jatinder Jit Singh, 2020. "Co-creation: A Key Link Between Corporate Social Responsibility, Customer Trust, and Customer Loyalty," Journal of Business Ethics, Springer, vol. 163(1), pages 151-166, April.
    13. O'Malley, Lisa & Prothero, Andrea, 2004. "Beyond the frills of relationship marketing," Journal of Business Research, Elsevier, vol. 57(11), pages 1286-1294, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Syed Asim Shah & Muhammad Haroon Shoukat & Waseef Jamal & Muhammad Shakil Ahmad, 2023. "What Drives Followers-Influencer Intention in Influencer Marketing? The Perspectives of Emotional Attachment and Quality of Information," SAGE Open, , vol. 13(2), pages 21582440231, June.
    2. Cheng-Feng Cheng & Chien-Che Huang & Ming-Chang Lin & Ta-Cheng Chen, 2023. "Exploring Effectiveness of Relationship Marketing on Artificial Intelligence Adopting Intention," SAGE Open, , vol. 13(4), pages 21582440231, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gao, Mengjia & Huang, Lin, 2021. "Quality of channel integration and customer loyalty in omnichannel retailing: The mediating role of customer engagement and relationship program receptiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    2. Muhammad Usman Shah & Muhammad Farooq Jan, 2021. "Connecting Corporate Social Responsibility (CSR) to Customer Loyalty: A Mediation Analysis in Hoteling Industry of Pakistan," SAGE Open, , vol. 11(4), pages 21582440211, December.
    3. Yu-Hsin Chen & Ching-Jui Keng, 2023. "The effect of subscription relational bond on customer engagement and stickiness in podcast: the moderating role of social connectedness," Service Business, Springer;Pan-Pacific Business Association, vol. 17(3), pages 723-745, September.
    4. Zheng, Run & Li, Zhuyuan & Na, Sanggyun, 2022. "How customer engagement in the live-streaming affects purchase intention and customer acquisition, E-tailer's perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    5. Maryam Zidehsaraei & Reza Esmaeilpour & Mohsen Akbari, 2024. "The effects of similarity of values, religious values, and empathy on bank commitment to CSR and customers’ internal and behavioral responses: evidence from Guilan Province in Iran," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 29(1), pages 154-170, March.
    6. Yusuf Ersoy & Ali Tehci, 2023. "Relationship marketing orientation in healthcare organisations with the AHP method," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 33(1), pages 35-45.
    7. Priyanka Meena & Praveen Sahu, 2021. "Customer Relationship Management Research from 2000 to 2020: An Academic Literature Review and Classification," Vision, , vol. 25(2), pages 136-158, June.
    8. Sherry Singla & Harpreet Kaur Sawhney, 2023. "A Bibliometric Analysis of Scientific Publications on Customer Loyalty in the Insurance Industry," Metamorphosis: A Journal of Management Research, , vol. 22(2), pages 146-157, December.
    9. Khan, Imran, 2023. "Customer engagement outcomes in mobile applications: Self-congruence as a moderator," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    10. Raluca Nastase-Anysz & Andrada Baba, 2020. "Public Sector Intervention in a Period of Crisis: Study Based on Applied Relationship Marketing Principles," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 923-935.
    11. Han, Xiaoyun & Zheng, Yundan & Prentice, Catherine & Chen, Shuping, 2024. "Firm engagement: Scale development and verification," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    12. Xiao Chen & Xiaojing Sun & Dongwei Yan & Decheng Wen, 2020. "Perceived Sustainability and Customer Engagement in the Online Shopping Environment: The Rational and Emotional Perspectives," Sustainability, MDPI, vol. 12(7), pages 1-16, March.
    13. Bilal, Muhammad & Zhang, Yunfeng & Cai, Shukai & Akram, Umair & Halibas, Alrence, 2024. "Artificial intelligence is the magic wand making customer-centric a reality! An investigation into the relationship between consumer purchase intention and consumer engagement through affective attach," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    14. M. Narciso, 2022. "The Unreliability of Online Review Mechanisms," Journal of Consumer Policy, Springer, vol. 45(3), pages 349-368, September.
    15. Bruneau, Virginie & Swaen, Valérie & Zidda, Pietro, 2018. "Are loyalty program members really engaged? Measuring customer engagement with loyalty programs," Journal of Business Research, Elsevier, vol. 91(C), pages 144-158.
    16. Anastasia Stathopoulou & Tommy Kweku Quansah & George Balabanis, 2022. "The Blinding Effects of Team Identification on Sports Corruption: Cross-Cultural Evidence from Sub-Saharan African Countries," Journal of Business Ethics, Springer, vol. 179(2), pages 511-529, August.
    17. Lim, Chulmin & Rowsell, Joe & Kim, Seongcheol, 2023. "Exploring the killer domains to create new value: A Comparative case study of Canadian and Korean telcos," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 277998, International Telecommunications Society (ITS).
    18. Qi, Ji (Miracle) & Wang, Sijun & Lindsey Hall, Kristina K., 2023. "Bridging employee engagement and customer engagement in a service context," Journal of Business Research, Elsevier, vol. 160(C).
    19. Dubey, Prince & Bajpai, Naval & Guha, Sanjay & Kulshreshtha, Kushagra, 2020. "Mapping gender and marital roles on customer delight by value perception for mobile technology in India," Technology in Society, Elsevier, vol. 62(C).
    20. Chen, Lu & Li, Yong-Quan & Liu, Chih-Hsing, 2019. "How airline service quality determines the quantity of repurchase intention - Mediate and moderate effects of brand quality and perceived value," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 185-197.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:11:y:2021:i:2:p:21582440211009224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.