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customer relation
International Review of Management and Marketing
Vol. 2, No. 4, 2012, pp.220-230
ISSN: 2146-4405 www.econjournals.com Customer Relationship Management (CRM) in Hotel Industry: A framework Proposal on the Relationship among CRM Dimensions,
Marketing Capabilities and Hotel Performance
Abdul Alem Mohammed
School of Tourism, Hospitality and Environmental Management, COLGIS,
Univerisiti Utara Malaysia, Sintok, Malaysia. Email: abd_102006@yahoo.com
Basri bin Rashid
School of Tourism, Hospitality and Environmental Management, COLGIS,
Univerisiti Utara Malaysia, Sintok, Malaysia. Email: basri@uum.edu.my
ABSTRACT: Customer relationship management (CRM) has a growing popularity and is becoming one of the hottest academic and practical topics in the business field. In fact, due to the competitive environment, CRM is crucial and has become a niche for firm performance. However, there is limited research that reveals the relationship between CRM dimensions and hotel performance. Therefore this study is an attempt to provide a value conceptual model that explains the theoretical linkages existing between CRM dimensions and hotel performance. This study serves not only to clarify the relationship between CRM dimensions and hotel performance, but also to explain the mediation role of marketing capabilities in this relationship.
Keywords: CRM; Marketing capability; Hotel industry
JEL Classifications: M31; L84; L83

1. Introduction
Undoubtedly, CRM has recently become one of the most controversial issues and a focal-point in the business field (Balaram and Adhikari, 2010; Becker et al., 2009; Dimitriadis and Steven, 2008;
Ozgener and Iraz, 2006). It is worth mentioning that CRM is mainly based on the belief that establishing a sustainable relationship with customers is the cornerstone for obtaining loyal customers who are much more profitable than non -loyal ones (Dowling, 2002).
In this regard, the successful implementation of CRM strategy will be of



References: Abdullateef, A.O., Mokhtar, S.S., Yusoff, R.Z. (2010), The impact of CRM Dimensions on Call Center Performance Akroush, N.M., Dahiyat, E.S., Gharaibeh, S.H., Abu-Lail, N.B. (2011), Customer relationship management implementation Almotairi, M. (2009), A Framework for CRM Success. Proceedings of the European and Mediterranean Conference on Information Systems 2009 Asikhia, O. (2010), Customer Orientation and Firm Performance among Nigerian Small and Medium Scale Businesses Azizi, S., Movahed, A.S., Khah, H.M. (2009), Medical Equipment Sector. The Effect of Marketing Strategy and Marketing Capability on Business Performance Balaram, A., Adhikari, B. (2010), Managing Customer Relationships in Service Organizations. Baran, R. J., Galka, R., Strunk, P. D. (2008), Principles of customer Relationship Management. U.S.A: Thomson. Barney, B.J., Delwyn, N. (2007), Resource-Based Theory: Creating and Sustaining Competitive Advantage Becker, U.J., Greve, G., Albers, S. (2009), The impact of technological and organizational implementation of CRM on customer acquisition, maintenance, and retention Beldi, A., Cheffi, W., Dey, B. (2010), Managing customer relationship management projects: The case of a large French telecommunications company Bose, R. (2002), Customer Relationship Management: key components for IT success. Industrial Management and Data Systems, 102(2), 89-97. Boulding, W., Staelin, R., Ehret, M., Johnston, W. J. (2005), A customer relationship management roadmap: what is known, potential pitfalls, and where to go Brohman, M.K., Richard, T.W, Piccoli, G., Parasuraman, A. (2003), Data Completeness: A Key to Effective Net-Based Customer Service Systems International Review of Management and Marketing, Vol. 2, No.4, 2012, pp.220-230 227 Bunthuwun, L., Sirion, C., Howard, C. (2011), Effective Customer relationship management of health care: A study of the perceptions of service quality, cooperate image, satisfaction, and loyalty of Chang, W., Park, E.J., Chaiy, S. (2010), How does CRM technology transform into organizational performance? A mediating role of marketing capability Cizmar, S., Weber, S. (2000), Marketing effectiveness of the hotel industry in Croatia. International Journal of Hospitality Management, 19(3), 227-240. Conant, J.S., White, C.J. (1999), Marketing program planning, process benefits, and store performance: an initial study among small retail firms Day, G. S. (1994), The Capabilities of Market-Driven Organizations. Journal of Marketing, 58(4), 3752. Dev, C.S., Olsen, M. (2000), Marketing challenges for the next decade. Cornell Hotel and Restaurant Administration Quarterly, 41(1), 41–47. Dimitriadis, S., Stevens, E. (2008), Integrated customer relationship management for service activities. Dowling, G. (2002), Customer Relationship Management: In B2C Markets, Often Less is More. Dutu, C., Halmajan, H. (2011), The Effect of Organizational Readiness on CRM and Business Performance Eid, R. (2007), Towards a Successful CRM Implementation in Banks: An Integrated Model. The Service Industries Journal, 27(8), 1021–1039. Fan, Y., Ku, E. (2010), Customer focus, service process fit and customer relationship Management profitability: the effect of knowledge sharing Fox, T. Stead, S. (2001), Customer Relationship Management: Delivering the Benefits, White Paper, CRM (UK) and SECOR Consulting, New Malden Gronroos, C. (2004), The relationship marketing process: communication, interaction, dialogue, value. Hallin, C.A., Marnburg, E. (2008), Knowledge management in the hospitality industry: a review of empirical research Hamid, H. (2009), Toward unfolding CRM implementation in Pakistan: A case study. 17th European Conference on Information Systems system: organizational and information system perspective. Decision support systems,48, 592603. Hussain, I., Hussain, M., Hussain, S., Sajid, M. (2009), Customer Relationship Management: Strategies And Practices In Selected Banks Of Pakistan Kasim, A., Minai, B. (2009), Linking CRM strategy, customer performance measure and performance in hotel industry Ki Lee, Y., Heon Nam, J., and Ah Lee, K. (2006), What factors influence customer-oriented pro social behaviour of customer-contact employees? Journal of Service Marketing, 20/4, 251-264. Kim, W.G., Lee, Y-K., Yoo, Y-J. (2006), Predictors of relationship quality and relationship outcomes in luxury restaurants Kim, B.Y. (2008), Mediated Effects of Customer Orientation on Customer Relationship Management Performance King, S.F., Burgess, T.F. (2008), Understanding success and failure in customer relationship management Kotler, P. (2002). When to use CRM and When to forget it!. Paper presented at the Academy of Marketing Science, Sanibel Harbour Resort and Spa, 30 May. Kotler, P., Keller, K. (2009), Marketing Management (14th Ed.). New Jersey: Pearson International Edition.

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