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Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
478 ww.globalbizresearch.org
Customer Relationship Management and Entrepreneurship
Development in Nigeria: A Study of Selected Hotels in Benue State
Timothy Terseer Alabar,
Department of Business Management,
Benue State University, Makurdi, Nigeria.
Mtswenem, Paul Shimadoo,
Doctoral Student in the Department of Business Management,
Benue State University, Makurdi, Nigeria.
_____________________________________________________________________
Abstract
This study was undertaken to ascertain the relationship between customer relationship
management and entrepreneurship development in Nigeria with particular emphasis to the
hotel sector in Benue State. The study adopted a survey design and selected hotels across the
major cities of Makurdi, Gboko, Katsina-Ala and Otukpo were selected as samples from which
information was obtained via the use of Questionaires. The study also used secondary data in
the form of journal articles and internet materials. The hypotheses were tested using the
Pearson’s correlation movement and the result showed a significant positive relationship
between customer relationship management and customer satisfaction, survival and
profitability in the Hotel sector in Benue State. The study, therefore, recommended that,
entrepreneurs that are engaged in the service business must embrace the practice of customer
relationship management in order to survive in today’s globally competitive business
environment.
____________________________________________________________________________
Key Words: Customer Relationship Management, Entrepreneurship Development, Hotel
Industry, Benue State, Nigeria
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
479 ww.globalbizresearch.org
1. Introduction
The campaign by the federal government of Nigeria for the development of
entrepreneurship spirit amongst Nigerians has started yielding dividends, as a lot of
businesses have started spring up in the economy. This has dovetailed into intense
competition for customers especially in this part of the world where people are quick to
replicate what others are doing. This has created the need for entrepreneurs to imbibe the
spirit and practice of customer relationship management (CRM), which is key in a
competitive business environment, considering the fact that customers are the life blood of
any business organization ( Alabar, 2012).
Therefore, the implementation of customer relationship management will be of great
benefit to the organizations as it leads to increasing sales through better market
segmentation, customizing products and services, obtaining higher quality products, gaining
access to information and employee satisfaction, and above all, ensuring long-lasting
customer-retention and loyalty (Alomtairi, 2009; Ozgener and Iraz, 2006; Stockdale, 2007;
Verma and Chandhuri, 2009). It is also believed that when you know more about your
customers than you’re your competitors do, and meet their needs better than your competition
do, you tend to compete with less market forces. The true mark of an outstanding
entrepreneur is seen by his/her conduct in giving the customer excellent for his monetary
value as he perceives it. The perception so created can only be achieved through unraveling
the basic connections between the customer’s needs and the value proposition to be offered
through customer relationship approach.
The Nigerian hotel industry is one that has received a lot of attention in the recent time
past as the government of Nigeria sets to diversify the ailing economy, which was completely
depending on oil as a source of income. As the government put up measures aimed at
encouraging the growth of the economy through diversification, so many entrepreneurs have
emerged spanning through the various sectors of the economy. As the tourist industry is
beginning to pick up, more hotels are also spring up thus making it a very competitive area of
research interest. However, the management of some of these hotels has been bad that so
many of them are rated so poor in service delivery by customers, thereby resulting to poor
patronage. This calls for the need for the Hotels that wants to stay in this line of business to
embrace the concept of customer relationship management, which is the key to sustainable
business success.
The study of CRM in the service sector has been selectively but extensively done in the
banking (e.g. Akroush et al., 2011; Becker, Greve, and Albers 2009; Eid, 2007; Hussain et al.,
2009; Krasnikov et al., 2009; Sin, Tse and Yim 2005), telecommunication (e.g. Almotairi,
2009; Beldi et al., 2010), healthcare (e.g. Bunthuwun et al., 2011; Hung et al., 2010), and
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
480 ww.globalbizresearch.org
contact center (Abdullatif et al., 2010). There is still lack of reasonable research on CRM in
the hospitality industry (Luck and Stephenson, 2009; Wu and Lu, 2012).
It is on the strength of the foregoing that, the study was designed to ascertain the relationship
between customer relationship management (CRM) and the development of entrepreneurship
spirit in the hotel industry in Benue state of Nigeria. In other words, the research question to
be answered in this work is, is there any relationship between customer relationship
management and entrepreneurship development in the hotel industry in Nigeria?
2. Literature Review
The mark of a true business is that it gives customers excellent value for his money as they
perceive it. And there is no better way to build perceived value except by tailoring your
efforts to benefit individual customer’s needs by knowing exactly what his/her problem is
through customer relationship management. It is also a known fact that, the market pays
excellent rewards for excellent performance, average rewards for average performance and
below average rewards for below average results. Most successful businesses pay any price,
make any sacrifice, and invest any amount of time necessary to become good in what they do.
However, evidences abound that the best and only surest way to make customers fall in love
with your business, stage a comeback for more, and tell others how wonderful you are is by
providing the desired solutions that keep them out of their problems better than competitors
offerings through CRM.
For us to achieve the objective of this research, we need to look at core definitions and the
world of works in this regard so as to properly situate the thrust of the paper.
3. Concept of Customer Relationship Management
This study therefore, has the specific objectives of ascertaining the relationship between
customer relationship management and customer satisfaction, survival, and profitability
among entrepreneurs especially in the hotel sector in Benue State.
The term “Customer Relationship Management” (CRM) was first used in a general sense
by management scholars such as Peter Drucker and Theodore Levitt in the 1960s (Venoos
and Madadiyekta 2005). Customer Relationship Management includes individuals, processes
and technology and it is seeking for the customers’ conception of an organization. George,
Emmanuel and Christiana, (2012), posited that Customer Relationship Management is a
process of ascertaining customer needs; comprehending and inducing customer behavior,
making use of quality communications strategies so as to obtain and maintain customers’
satisfaction. Apart from the fact that Customer Relationship Management entails handling
customers and observing their behaviour, it also seeks to adjust customer’s behavior, thereby
leading to increase in the company’s revenue, because the company will decide the customers
to choose and those leaving. The primary objective of Customer Relationship Management is
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
481 ww.globalbizresearch.org
to identify and render customized services to every customer. Customer relationship
management empowers organizations to deliver exceptional actual customer service.
Greenberg (2010) defines CRM as a set of philosophies, strategies, systems and
technologies that would effectively and efficiently manage the transactions of customers with
companies and the subsequent relationships with those customers. Viewed from the
standpoint of information technology (IT) specialists and software vendors, CRM refers to
collecting marketing data and leveraging communication technologies to maximize
customer’s lifetime value to an organization (Boulding et al., 2005; Kumar & Reinartz, 2006;
Reinartz et al., 2004). Payne and Frow (2006) affirm that CRM has its roots in relationship
marketing, which supports a multi-stakeholder management approach. In a more recent view
of CRM, Frow and Payne (2009, p. 10) define CRM as “the strategic management of
relationships with customers, involving appropriate use of technology”.
It is obvious from the foregoing that information technology is a basic prerequisite for
companies in their quest to build and sustain profitable relationships with customers. In
addition, CRM is portrayed as a business philosophy that is engrained in a company’s culture
or way of doing business. As a result, organisations that intend to pursue customer
relationship management must arm themselves with appropriate information and
communication technologies that will support this operation.
3.1 Theories Relating to CRM
Relationships are not the same; customers want and expect different things from their
relationship with the different organizations, just as they have different needs and
expectations from their varying personal relationships (Bollen and Emes, 2008). The balance
of power has shifted towards customers as new technology has redressed the imbalance in the
flow of information between customers and suppliers; customers now not only have more
information and a greater choice but also to voice their dissatisfaction more loudly. The shift
in the balance of power has contributed to a change in customer’s expectations. Companies
are now expected to pay more attention to caring for customers, and customers put greater
emphasis on honesty and integrity, demanding more transparency from suppliers. The study
relies on the traditional and modern theories as summarized by Gifford (2002) and the art of
profit of customer relationship management.
3.2 CRM Theory and the Art of Profit
This theory learn from the Economic and management theory which emphasized on
examining options with relative scientific objectivity to determine the most efficient and
profitable process to increase revenue. Simply put, the quickest and most effective way to
make a profit. The Economic and Management theory applied to CRM thus:
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
482 ww.globalbizresearch.org
Art of profit – in 1959, Frederick Hertzberg, a psychologist, found that job satisfaction and
job dissatisfaction acted independently of each other. The theory states that there are certain
factors in the workplace that cause job satisfaction called motivating factors while the factors
that cause dissatisfaction are called hygienic factors. Basically put, motivational factors tend
to increase job satisfaction. Hygienic factors are necessary to prevent dissatisfaction, but only
serve to de-motivate job satisfaction if the factors are not present.
This theory was related to CRM, safely stated that the hygienic factors are those things
that the customer expects whenever they purchase your goods and services, for instance,
phone is answered in a timely fashion, orders are fulfilled correctly and the many things
customers simply expect from the company every time they interact with the company.
Motivational factor defined in relation to CRM as those factors that increase your sales,
lowering your price, customer loyalty rewards, holiday specials, and so forth.
In economic theory, the law of demand states that, in general, price and quantity demanded
in a given market are inversely related. In other words, the higher the price of a product, the
less of it people would be able and willing to buy of it (other things unchanged), as the price
of a commodity rises, overall purchasing power decreases (the income effect) and consumers
move toward relatively less expensive goods (the substitution effect). Other factors can also
affect demand, for example, an increase in income will shift the demand curve outward
relative to the origin (increase demand leads to increased in prices and vice versa).
Determine the best methods to make more money – customers have a certain level of
expectations (hygienic factors) and are enticed to purchase our goods and services through
sales, marketing, and other factors (motivational and economic factors). In other words, the
customer is very complex. It is rarely only about price (unless the company has homogeneous
product/service with and abundant of substitutes and a perfectly inelastic supply curve). CRM
provides an insight into customers to determine the best way to make more money by:
tracking customers and reviewing what they have done in the past gives an insight to their
new buying behaviour. It gave the ability to review and analyze past behaviours and
purchases which allow to do two important things: ensure the resources are available (product
and labour) at the right place and time in anticipation of demand for goods and services, and
analyzing and trending information to predict future buying patterns. However, in looking at
this theory, one should not loose sight of the fact that, all human behaviors are shaped and
controlled by the individual himself and what he thinks of his person. Therefore, to get such
an individual on board or in trying to satisfy such an individual is a function far beyond
offering the best that the organization may proposed, (Alabar & Tsuwa, 2016).
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
483 ww.globalbizresearch.org
3.3 The Traditional and Modern Theory of CRM
The traditional and modern theory of CRM was cited in Gifford (2002). The modern CRM
theory refers to the idea of integrating the customer: this new way of looking at the business
involves integrating the customer (more precisely the customer’s relevant people and
processes) into all aspects of the supplier’s business, and vice versa. This implies a
relationship that is deeper and wider than the traditional arms-length supplier-customer
relationship. The modern approach to customer relationship management is based on
satisfying all of the needs of people, system, processes etc - across the customer’s
organization, such as might be affected and benefited by the particular supply.
Comparatively, the traditional approach to customer relationships was based on a simple
transaction or trade, and little more, one person on each side. All communication and dealings
would be between these two people, even if the customers’ organization contained many staff,
departments, and functional requirements (distribution, sales, quality, finance etc). Thus, the
theories and approach presented here are either drawn from fields outside marketing or are
based on individual understanding of customer relationship. While the first was based on
interpersonal relationship which call for mutual benefit for both customers and the
organization in the relationship, the second emphasized on maximization of profit drawn from
economic background. The modern approaches rely on customer satisfaction which is the
core issue in customer relationship management today. My observation on this theory is that,
there exist no specific purpose for life, it may be driven as a result of forces of nature and
those forces stronger in a given situation may lead and control others in a less anticipated
situation.
3.4 CRM Dimensions
It is a proven fact that the multi- dimensions concept of CRM can be considered relatively
new, because of the only few studies, which are made on the CRM dimensions of some
service sectors such as banking (Akroush et al., 2011; Sadek et al., 2011; Sin et al., 2005;
Yim, Anderson, and Swaminathan, 2005) and contact centers (Abdullateef et al., 2010), thus
the range of information on this concept is quite limited. To drive the point home, it can be
said that CRM consists of four broad behavioral dimensions (Sin et al., 2005; Yim et al.,
2005). These behavioral dimensions are: key customer focus, CRM organizations, Knowledge
management and technology -based CRM. It is essential that all of these dimensions must
work systematically in an organization to guarantee its improved performance (Fox and stead,
2001; Sin et al., 2005; Yim et al., 2005).
3.5 Customer Orientation
It is important in the first instance to confirm that the main purpose behind customer –
oriented behaviors is to increase customer long-lasting satisfaction and to create customer-
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
484 ww.globalbizresearch.org
loyalty. Therefore, studies have demonstrated that good customer -oriented behaviors, in an
organization, definitely ensures a tremendously positive impact on its performance (Kim,
2008; Yilmaz et al., 2005). Similarly, King and Burgess (2008) reach the conclusion that
customer orientation is a crucial factor in the successful implementation of CRM. Moreover,
current researches have revealed that service firms, like hotels, require a better understanding
of customer orientation and its great importance to such firms and their performance (Kim et
al., 2006; McNaughton et al., 2002; Sin et al., 2005).
As in the service oriented organization, the delivery of service in a hotel occurs when there
is interaction between service providers and the service encounter (Ki Lee et al., 2006). Hence
in order to enhance service experience, hoteliers need to focus on customer interaction.
Customer oriented behaviour can be achieved through a positive relationship between
customer and service provider. Research has supported that customer orientation leads to
increase organizational performance (Asikhia, 2010; Liu et al., 2003; Zhou et al, 2009).
Furthermore customer orientation is also one of the market beneficial sources, it helps
organizations to understand customers, and hence it helps in delivering an appropriate plan to
satisfy customer needs (Liu et al., 2003)
Furthermore, several studies revealed that there is a relationship between customer
orientation and marketing planning capabilities (Morgan, Vorhies, and Mason, 2009;
Pulendran and Speed, 1996). Besides this beneficial influence of customer orientation strategy
on marketing-planning capabilities, this strategy also influences the successful
implementations of marketing actions or innovations (Slater and Narver, 1998). Hence, we
note that despite the numerous positive impacts of customer - orientation on organizations
performance, the fact remains that there is still a shortage of literature about customer -
orientation impact on hotel performance (Sin et al., 2006; Tajeddini, 2010).
But it would be realized that, customer – centered organizations have emphasized a better
understanding of customers’ needs and wants, and then translated them into the capability to
give customers what they really need and want. It should be remembered that customers buy
for their reasons, have a different emotional make-up and different problems that need to be
solved. Therefore winning a customer through your offering is giving them value with better
feelings for their problems. In other words, outstanding companies go out the extra mile to
keep customers satisfied. Highly satisfied customers make repeat purchases; tell others about
their experiences with the organization, make referrals to the organization and above all, they
become ambassadors of the company. Therefore the interaction in hotel service between the
service provider and the customer brings about a feeling of pleasure or disappointment in
relation to his or her expectations. This relationship therefore needs to be managed in order to
proffer solutions to customers needs.
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
485 ww.globalbizresearch.org
H1. It is therefore proposed that: Is there no positive relationship between CRM and
customer satisfaction in the hotel industry
3.6 CRM Organization
First and foremost, to enhance service employees to conduct customer- oriented behaviors,
organizations have to develop an appropriate working environment for service in work, for
instance, providing staff with the modern tools, and technology, customer-satisfaction
tracking and complaints management systems, inspirational leadership, and appropriate
rewards systems. As a result of the previous supportive working conditions, organizations can
ensure the required customer - oriented behaviors of their employees (Mechinda and
Patterson, 2011)
The researchers also argue that CRM cannot be successful even if the organizations enjoy
the most advanced technology and adapt a customer - oriented approach, unless the project is
completely integrated by them ( Sin et al., 2005; Yim et al., 2005)
Further, as a confirmation for this point Ku (2010) stress that CRM success does not only
require technological quality or systems, but it also requires an effective service concept as
well as suitable operation procedures. Thus, the success of CRM implementation relies on the
active involvement of the employees in the organization itself (Boulding, Staelin, Ehret, and
Johnston, 2005; Payne, 2006; Tamilarasan, 2011). Therefore, we can say that CRM
organization has to be an essential means through which firms effect fundamental changes in
the way they organize their actual business processes for employees and customers ( Sin et al
2005; Yim et al., 2005).
Inevitably, all the organization resources (such as marketing capabilities, policies, culture,
and organization structure) have to be integrated in order to implement CRM successfully
and, in turn, to improve organizations performance. Previous studies also declare the positive
impact of CRM organization on customer retention (Yim et al., 2005), financial and
marketing performance (Akrouch et al., 2011; Sin et al., 2005).
Moreover, Richards and Jones (2008) argue that CRM organization may influence future
marketing decisions, such as brand differentiation, price, communication, and distribution. In
this regard, it has also been reported that many hotel chains cleverly and flexibly quote their
room prices according to the customer data that were collected previously (Nunes and Dréze,
2006).
It goes without saying that Knowledge about customers plays a vital role in CRM, taking
into consideration the fact that the main purpose behind collecting data about customers is to
get a clear image about them from different perspectives (Sin et al., 2005). Therefore,
organizations can authenticate such data to be able to establish and develop beneficial
relationship with their customers (Zahay and Griffin, 2004).
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
486 ww.globalbizresearch.org
3.7 Knowledge Management
Needless to say that useful information about customers can be gathered through
interactions with them or from different touch points within the organization itself (Brohman
et al, 2003), and the criterion for deciding whether CRM is successful or not, is to effectively
transform customer information into customer knowledge (Plessis and Boon, 2004;
Stringfellow et al., 2004).
In this connection, we can say that managing knowledge effectively can greatly help an
organization to have success in building better customer relationship, resulting in a positive
impact on organization performance (Abdulateef et al., 2010; Akroush et al., 2011; Sin et al.,
2005; Yim et al., 2005). We have to take into account that the success of relationship
management is heavily dependent on collecting and analyzing customers’ information, as
such information is used for developing highly personalized offerings (Sigala, 2005).
As a matter of fact, it is necessary for organizations to remain competitive, and this aim
cannot be achieved unless they enjoy wide knowledge about their market, explore and make
use of their existing knowledge about their customers so as survive and remain competitive in
the market place.
Meanwhile, hotels that enjoy a lot of customer’s knowledge to be disseminated among
their different departments are more likely to implement successful marketing activities for
meeting their customer needs and probably maintaining a sustenance capability (Noble and
Mokwa, 1999). Moreover, Fan and Ku (2010) indicate that customer knowledge management
is firmly associated with marketing capabilities, and it greatly enables organizations to take
strategic managerial decisions for improving their performance, which finally translates to
survivability.
3.8 Technology Based CRM
Dutu and Halmajan (2011) are of the opinion that CRM strategy will end in failure if the
information technology is not used properly, thus the suitable use of technology in marketing
is one of the greatest opportunities in hotel industry, because of the fact that it is important to
get the right information from the right people at the right time, so that the right decisions can
be made and /or the services can be rendered (Dev and Olsen, 2000; Moriarty-Jones et al.,
2008).
In support with that view, Kasim and Minai (2009) find out that CRM technology
dimension is firmly related to hotel performance, because hotels need to use information
technology for improving their performance. In this regard, new technologies are considered
as the core drivers for change (Minghetti, 2003).
Furthermore, several studies, made about the impact of information technology on
organization performance report similar findings about the positive role of information
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
487 ww.globalbizresearch.org
technology in CRM strategy. In other words, these studies revealed that many customer-
centric strategies cannot achieve their goals, without the help of information technology
(Abdullateef et al., 2010; Eid, 2007; Ozgener and Iraz, 2006; Sigala, 2005; Sin et al., 2005;
Yeh et al., 2010).
Consequently, CRM based technology enables organizations to plan and implement
successful marketing actions for retaining customers and making them more profitable,
because of the customer database and other information-storing systems (Roberts, Liu, and
Hazard, 2005). Additionally, Chang, Park, and Chaiy (2010) confirm that CRM
technology improves marketing capabilities by providing valuable information about
customers, which, in turn, will help both managers and employees to achieve specific
marketing goals much more effectively. Moreover, they also recommend investigating
separately the mediating impact of marketing - planning capabilities and the implementation
of marketing capabilities on the relationship between CRM and organizations performance,
which is key to the success and survivability of the company.
H2. It is therefore proposed that: There is no positive relationship between CRM and
survivability of entrepreneurs in the hotel business in Nigeria.
3.9 CRM and Hotel industry
Despite the fact that CRM brings lasting benefits to organizations, as a whole, some of
them gain profits from implementing it more than others; CRM brings benefits to the
organizations that generate a lot of information about customers (Bose, 2000; Kotler, 2002;
Mguyen et al., 2007).
In addition to this, Gronroos (2004) that service organizations for their intrinsic
characteristics of the production and consumption are inseparable elements necessary to build
relationships with customers. Accordingly, CRM will be ideally suited to the hotel industry,
especially when implementing it successfully and effectively, taking into account that hotels
receive a lot of data about customers. Such data can be transformed into useful knowledge
about them (Kotler, 2002; Lin and Su, 2003; Mguyen et al., 2007; Nasution and Mavondo,
2008; Dev and Olsen, 2000).
Suffice it to say that, the hotel industry, like any business sector has to be highly
competitive to be able to do well in the business environment, therefore, it is of vital
importance for it to encourage behavioral patterns of continuous re-purchase and to retain
customers for long. Thus, it is evident that such ambitious aims can only be achieved through
implementing CRM, which will result in establishing fruitful relationship between
organizations and their customers (Papastathopoulou et al., 2007; Verdugo et al., 2009).
Moreover, it goes without saying that growing customer- acquisition costs, rising customer
expectations, price-sensitive travelers, more sophisticated clients, uncertain market and less
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
488 ww.globalbizresearch.org
brand loyalty are all key factors, which strongly urge hotels to focus on CRM as a useful
strategy. In our economy, entrepreneurs are rewarded on three factors: what you do; how well
you provide solutions to human needs and the difficulty of replacing who you are. In this
case, the onus lies on you to be committed to excellence, be the best at what you do so as
retain your clients, you must also pay a price or sacrifice and invest reasonable of your time to
be good in your career. Most people fail not because they lack the skills or aptitude to create
value to their customers, but because of human relations. Needless to say, CRM is widely
considered as one of the most effective ways to facilitate developing and expanding the
customers' base that, in turn, will assist in enhancing profitability and guest loyalty
(Mylonakis, 2009; Sigala, 2005; Sigala and Connolly, 2004; Wu and Li, 2011).
H3. It is therefore proposed that: There is no positive relationship between CRM and
profitability of entrepreneurs in the hotel industry in Nigeria.
4. Methodology
This study sought to empirically ascertain the relationship between customer relationship
management and entrepreneurship development in Nigeria with particular emphasis to the
hotel sector in Benue State. Thus, the study adopted a survey design with three hotels each
from the three commercial centres of the state: Makurdi, Gboko, Katsina-Ala and Otukpo
local government areas, and the respondents were staff of the selected hotels. Questionnaires
were the major instrument of data collection and the Pearson Correlation Movement was used
in the analysis of the data collected via the use of the Statistical Package for Social Sciences
(SPSS). The adoption of the survey design methodology is meant to examine critically the on-
the-spot assessment of the role of customer relationship management in the development of
entrepreneurship spirit in the hotel industry. The on-the-spot assessment helps a lot as the
respondents are made to fill in their feelings as relate to the experience they have with a
service provider, in this case, the hotel industry.
The use of Pearson Correlation Movement becomes useful in situations where the
intention is to determine the correlation amongst variables of interest. In this case, the method
so applied will highlight the level of correlation between customer relationship management
and entrepreneurship development in Nigeria with particular emphasis to the hotel sector in
Benue State.
5. Results and Discussions
Table 1.1 Customer Relationship Management and Customer Satisfaction in some selected
Hotels in Benue State
Assertions SA A U SD DA
1. Prompt response to orders placed
by customers’ results in repeated
patronage.
107
(44.6%)
105
(43.8%)
4
(1.6%)
8
(3.3%)
16
(6.7%)
2. Discount for regular and 96 123 6 7 8
Global Journal of Emerging Trends in e-Business, Marketing and Consumer Psychology (GJETeMCP)
An Online International Research Journal (ISSN: 2311-3170)
2017 Vol: 3 Issue: 1
489 ww.globalbizresearch.org
consistent patronage results in
customer loyalty.
(40%) (51.3%) (2.5%) (2.9%) (3.3%)
3. Good and affordable restaurant
and laundry services results in
customer retention.
110
(45.8%)
100
(41.7%)
9
(3.8%)
8
(3.3%)
13
(5.4%)
4. Customer satisfaction is a product
of customer-oriented behaviour
exhibited by employees.
121
(50.4%)
99
(41.3%)
5
(2.1%)
7
(2.9%)
8
(3.3%)
Source: Field Survey, 2016
Table 1.1 shows that 107 respondents representing 44.6 per cent of the total respondents
strongly agreed that, prompt response to orders placed by customers’ results in repeated
patronage, 105 respondents representing 43.8 per cent agreed to this assertion, 4 respondents
representing 1.6 per cent of the respondents were undecided on the issue, 8 respondents
representing 3.3 per cent of the respondents strongly disagreed that prompt response to orders
placed by customers’ results in repeated patronage and 16 respondents representing 6.7 per
cent of the respondents disagreed to this assertion.
On the issue on whether discount for regular and consistent patronage results in customer
loyalty, 96 respondents representing 40 per cent of the total respondents strongly agreed to
this assertion, 123 respondents representing 51.3% per cent agreed to this assertion, 6
respondents representing 2.5 per cent were undecided on the issue, 7 respondents representing
2.9 per cent of the total respondents strongly disagreed that discount for regular and consistent
patronage results in customer loyalty and 8 respondents representing 3.3 per cent disagreed on
the issue.
On the issue on whether, good and affordable restaurant and laundry services results in
customer retention, 110 respondents representing 45.8 per cent of the total respondents
strongly agreed to this assertion, 100 respondents representing 41.7 per cent agreed to this
assertion, 9 respondents representing 3.8 per cent were undecided on the issue, 8 respondents
representing 3.3 per cent of the respondents strongly disagreed that, good and affordable
restaurant and laundry services results in customer retention and 13 respondents representing
5.4 per cent disagreed to this assertion.
And on the issue on whether customer satisfaction is a product of customer-oriented
behaviour exhibited by employees, 121 respondents representing 50.4 per cent of the total
respondents strongly agreed to this assertion, 99 respondents representing 41.3 per cent
agreed to this assertion, 5 respondents representing 2.1 per cent were undecided on the issue,
7 respondents representing 2.9 per cent of the total respondents strongly disagreed that
customer satisfaction is a product of customer-oriented behavior exhibited by employees and
5 respondents representing 3.3 per cent disagreed to this assertion.
The responses gotten above are a clear pointer to the fact that, good customer relationship
management has a positive relationship with customer satisfaction in the hotel sector in
Nigeria particularly in Benue State.
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Table 1.2 Customer relationship management and survival of entrepreneurs in the selected hotels
in Benue State.
Assertions SA A U SD DA
1. Providing staff with modern tools
and technology to enhance
complaint management systems
results in continuity in operations.
98
(40.8%)
111
(46.3%)
7
(2.9%)
14
(5.8%)
10
(4.2%)
2. Conducive working environment
that facilitates customer-oriented
behaviour by employees is a
source of survival.
102
(42.5%)
109
(45.4%)
9
(3.8%)
12
(5%)
8
(3.3%)
3. More emphasis on customer
retention via getting useful
information about customers helps
in providing highly personalized
offerings.
80
(33.3%)
122
(50.8%)
8
(3.3%)
12
(5%)
18
(7.5%)
Source: Field Survey, 2016
Table 1.2 shows that 98 respondents representing 40.8 per cent of the total respondents
strongly agreed that providing staff with modern tools and technology to enhance complaint
management systems results in continuity in operations, 111 respondents representing 46.3
per cent agreed to this assertion, 7 respondents representing 2.9 per cent were undecided on
the issue, 14 respondents representing 5.8 per cent of the total respondents strongly disagreed
that Providing staff with modern tools and technology to enhance complaint management
systems results in continuity in operations and 10 respondents representing 4.2 per cent
disagreed to this assertion.
On the issue on whether conducive working environment that facilitates customer-oriented
behaviour by employees is a source of survival, 102 respondents representing 42.5 per cent of
the total respondents strongly agreed to this assertion, 109 respondents representing 45.4 per
cent agreed to this assertion, 9 respondents representing 3.8 per cent were undecided on the
issue, 12 respondents representing 5 per cent strongly disagreed that, conducive working
environment that facilitates customer-oriented behaviour by employees is a source of survival
and 8 respondents representing 3.3 per cent disagreed to this assertion.
On the issue on whether more emphasis on customer retention via getting useful
information about customers helps in providing highly personalized offerings, 80 respondents
representing 33.3 per cent of the total respondents strongly agreed to this assertion, 122
respondents representing 50.8 per cent agreed to this assertion, 8 respondents representing 3.3
per cent were undecided on the issue, 12 respondents 5 per cent of the total respondents
strongly disagreed that more emphasis on customer retention via getting useful information
about customers helps in providing highly personalized offerings and 18 respondents
representing 7.5 per cent disagreed to this assertion.
The responses gotten above is a clear indication that, customer relationship management
results in survival of hotels in Nigeria.
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Table 1.3 Customer relationship management and profitability of entrepreneurs in the selected
hotels in Benue State
Assertions SA A U SD DA
1. A good customer relationship
management results in more
revenue for the hotels.
87
(36.3%)
118
(49.2%)
5
(2.1%)
18
(7.5%)
12
(5%)
2. Hotels that have good customer
relationship management
programmes enjoy high
marketshare which dovetails into
more profit.
99
(41.3%)
103
(42.9%)
8
(3.3%)
20
(8.3%)
10
(4.2%)
Source: Field Survey, 2016
Table 1.3 shows that 87 respondents representing 36.3 per cent of the total respondents
strongly agreed that a good customer relationship management results in more revenue for the
hotels, 118 respondents representing 49.2 per cent agreed to this assertion, 5 respondents
representing 2.1 per cent were undecided on the issue, 18 respondents representing 7.5 of the
total respondents strongly disagreed that good customer relationship management results in
more revenue for the hotels and 12 respondents representing 5 per cent disagreed to this
assertion.
And on the issue on whether hotels that have good customer relationship management
programmes enjoy high market share which dovetails into more profit, 99 respondents
representing 41.3 per cent of the total respondents strongly agreed to this assertion, 103
respondents representing 42.9 per cent agreed to this assertion, 8 respondents representing 3.3
per cent were undecided on the issue, 20 respondents representing 8.3 per cent strongly
disagreed that, hotels that have good customer relationship management programmes enjoy
high market share which dovetails into more profit and 10 respondents representing 4.2 per
cent disagreed to this assertion.
The responses gotten above are a clear pointer to the fact that, customer relationship
management results in greater profitability in the hotel sector in Nigeria.
6. Hypotheses Testing Result
Table 1.4: Correlation coefficient between Customer Relationship Management and Customer
Satisfaction in the Hotel Sector
Customer Relationship
Management
Customer
Satisfaction
Customer relationship
management
Pearson Correlation 1 .853
Sig. (2-tailed) .003
N 240 240
Customer Relationship
Management
Pearson Correlation .853 1
Sig. (2-tailed) .003
N 240 240
Source: SPSS Output, 2016
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The hypothesis seeks to ascertain the level of the relationship between customer
relationship management and customer satisfaction. The result (r = .853) indicates that there
is a significant positive relationship between customer satisfaction and customer relationship
management. In spite of the fact that there exist a positive relationship between customer
satisfaction and customer relationship management, entrepreneurs should try to be emphatic
their dealings with their customers. For when they put themselves in the customers shoes
grasping their viewpoint and feelings, makes them ask the right questions, speak customers’
language, appreciate their feelings and tailor their services to help the customers most. Hotel
entrepreneurs should as a matter of fact, try to maintain a consistent if not more performance
to keep customers coming back and possibly making more referrals.
Table 1.5: Correlation coefficient between Customer Relationship management and
Survival of Entrepreneurs in the Hotel Sector
Customer relationship
management Survival
Customer relationship
management
Pearson Correlation 1 .796
Sig. (2-tailed) .107
N 240 240
Survival Pearson Correlation .796 .001
Sig. (2-tailed) .001
N 240 240
Source: SPSS Output, 2016
This hypothesis seeks to ascertain the relationship between customer relationship
management and survival of entrepreneurs in the Sector. The result (r = .796) indicating that,
there is a positive significant relationship between customer relationship management and
survival in the Hotel Sector.
Despite the high degree of positivity between the two variables, entrepreneurs should be
more tempting to provide an accurate gap analysis in what the customers want and where they
should be so as to provide appropriate solutions that ensure organizational success, which
transcends to survival. Understanding and working with customers to identify their
challenges/problems, would help in turning businesses that have become prisoners of tradition
(doing the same thing every day) to be innovative outfits that reward customers with good
feelings and solutions to problems. This will go a long way in ensuring organizational
survival.
Table 1.6 Correlation coefficient between Customer Relationship Management and
Profitability in the Hotel Sector
Customer Relationship
Management Profitability
Customer relationship
management
Pearson Correlation 1 .814
Sig. (2-tailed) .000
N 240 240
Profitability Pearson Correlation .814 1
Sig. (2-tailed) .000
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Customer Relationship
Management Profitability
Customer relationship
management
Pearson Correlation 1 .814
Sig. (2-tailed) .000
N 240 240
Profitability Pearson Correlation .814 1
Sig. (2-tailed) .000
N 240 240
Source: SPSS Output, 2016
This hypothesis seeks to ascertain the relationship between customer relationship
management and profitability. The result (r = .814) indicates that, there is a positive
relationship between customer relationship management and profitability in the Hotel sector.
But entrepreneurs should not lose sight of the fact that, they may have the most efficient,
dedicated and sensitive workforce in the world and provide the best in-house services, but
care less about human relationships, it may spell doom for the business. But it should be
realized that, for every new relationship with a customer opens an emotional bank account to
which deposits and withdrawals can be made. As more deposits are dropped on the emotional
bank accounts of customers, it tends to reflects positively on the bank accounts of the
organization in form of profit. It should also be realized that, the profitability of an
organization can be seen in the sum total of the knowledge, experience, education, training,
habits, skills and care. The good news is that each of these capabilities can be increased and
improved upon.
7. Conclusion
The idea of entrepreneurship is not only about creation of new ventures but more about
sustenance of these ventures over time hence the relevance of the practice of customer
relationship management. In this wise, the application of the 90/10 rule, this implies that if we
spent 90 percent of our time/resources on researching, understanding and talking about the
benefits of the services, and 10 percent discussing about the systems/processes, will greatly
affect the welfare of the customers. For it is the rewarded customers that tell others just how
wonderful your services are, which in turn creates more customers for the company. Hotel
entrepreneurs should not ever make the mistake of thinking of buildings, computers, aesthetic
outlooks or even employees as their greatest assets, but rather their customers. Therefore,
rendering a helping hand to find out what customers want or need and matching it with the
organization’s resources win and retain such customers. Therefore developing a genuine
interest in and admiration for the customers through customer relationship management is
seemingly the key to sustainable business organizations especially those in the service sector
and particularly in the Hotel sector in Nigeria where new Hotels are springing-up almost on a
daily basis. Therefore, Hotels that want to make profit and survival in the Nigerian business
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environment must understand the perception customers have, and pleasantly exceeding those
expectations gives the organization a pass mark of psychological entrance to such business.
In today’s service-oriented economies, excellent service delivery is more than a competitive
weapon; it is a profit road map and distinctive survival skills that keep the organization going.
Companies without it run the high risk of moving to the business landslide.
8. Recommendations
Based on the discussion of findings and other important intuitions arising from the work, we
therefore recommend that:
1. Hotel entrepreneurs in Nigeria should focus more on what customers want and need
so as to help them buy what is best for them and make them feel good about it. For in
the final analysis, you get what you give to life.
2. Managers of hotel businesses should have it at the back of their minds that success
does not go to the strongest but the most creative. It is on the strength of this notion
that I would like to suggest that, if you want to achieve more and survive in a fierce
business landscape, you must become someone you have not been before.
3. Hotel managers should also enforce “forced efficiency” in their operations. That is to
say, there can never be enough time to do everything, but hopefully, there will always
be enough time to do the important things that may add value to the organization
obviously reflected on the financial books of the company. Doing the needful in the
course of value creation would result to high patronage that could be measured in the
profitability index of the organization.
4. Hotel managers/workers should inculcate a positive attitude to the work environment
as it determines the success or failure of the company. For attitude can make us
winners or losers, rich or poor and above all, our attitude can make us lost or forfeit
opportunities in life.
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