Academic journal article Competition Forum

Customer Relationship Management as a Competitive Factor in the Hospitality Industry in Guadalajara, Mexico

Academic journal article Competition Forum

Customer Relationship Management as a Competitive Factor in the Hospitality Industry in Guadalajara, Mexico

Article excerpt

INTRODUCTION

There are several studies on the importance of studying the dimensions of CRM in the hotel sector (Akroush et al., 2011, Sade k et al., 2011, Sin et al., 2005), that whether CRM can enable effective differentiation and improve customer loyalty and therefore the profitability of the company. As a hotel company is an economic agent aims to maximize its benefits from the management and exploitation of the resources are there to serve the needs and demands of the guests (Sigala, 2005).

With the implementation of CRM, organizations can gain a great benefit, because they can increase their sales through better market segmentation, customization of products and services, higher quality products, access information and employee satisfaction, and above all ensure long lasting customer retention and loyalty. (Alomtairi, 2009; Ozgener & Iraz, 2006; Stockdale, 2007; Verma & Chandhuri, 2009).

THEORETICAL FRAMEWORK

Recent CRM recent studies have focused on selective service sectors, such as banking (Akroush et al., 2011; Becker, Greve, & Albers 2009; Eid, 2007; Hussain et al., 2009; Krasnikov et al., 2009; Sin, Tse, & Yim 2005), telecommunications (Almotairi, 2009; Beldi et al., 2010), health (e.g. Bunthuwun et al., 2011; Hung et al., 2010), but not yet thoroughly researched CRM in the hospitality sector (Luck & Stephenson, 2009; Wu & Lu, 2012). Therefore, Vogt (2011) states that although there is increasing use of CRM in tourism, even limited research studying the various applications in the industry.

CRM, according to Laudon and Laudon (2004), is a business and technology discipline for managing customer relationships in order to increase revenues, profitability, satisfaction and retention thereof.

CRM and Administrative Capacity

According to Blesa (2005), part of administrative capacity is the coordinated behavior of the various functions in the organization, which must be directed to seek and gather information from consumers, competition and environment for dissemination in the organization and to design and implement a response with the aim of satisfying customers by providing superior value. The implementation of a CRM strategy involves changes both in the way a company is organized, as in their business processes (Sin, Tse, & Yim, 2005), therefore, it is necessary to include a variable that projects the importance and impact of administrative factors in the success of CRM. It is also essential to analyze the business objectives and organizational culture (Chalmeta, 2006). An important factor of administrative capacity is the leadership provided by management and that their support will be a key requirement to establish the philosophy of customer orientation at the corporate level and to support the adoption of a CRM system throughout the organization (Alt & Puschnam, 2004).

CRM and Marketing Innovation

The effectiveness and efficiency of CRM are increasingly recognized as means for developing innovation capability and providing a lasting competitive advantage (Ramani & Kumar, 2008; Sahay & Ranjan, 2008). Marketing innovation, it refers to market research, price-setting strategy, market segmentation, advertising promotions, retailing channels, and marketing information systems (Vorhies & Harker, 2000; Weerawardena, 2003).

Due to the importance of this factor, several studies have analyzed the impact of innovation on competitiveness of the company and have come to the conclusion that companies that invest in research and development and conduct innovative practices are more likely to remain market and increase their performance (Ahuja & Katila, 2004).

Competitiveness

The concept of competitiveness has been defined in various dimensions and time with inaccuracies (Budd & Hirmis 2004; Porter & Ketels 2003). It has also been determined by the level of research: approaches macro, meso and micro levels, whi ch define it differently, and from the point of view of competitiveness in companies, which are mainly based on the low cost of production (Buzzigoli & Viviani, 2009). …

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