global journal of emerging trends in e-business,...

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





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





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





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:





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).





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-





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.





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).





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





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





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





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.





Table 1.2 Customer relationship management and survival of entrepreneurs in the selected hotels

in Benue State.


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%)



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.





Table 1.3 Customer relationship management and profitability of entrepreneurs in the selected

hotels in Benue State


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%)



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


Management

Pearson Correlation .853 1


N 240 240

Source: SPSS Output, 2016





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


management Survival


management



N 240 240

Survival Pearson Correlation .796 .001


N 240 240


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


Management Profitability


management



N 240 240

Profitability Pearson Correlation .814 1







Management Profitability


management



N 240 240

Profitability Pearson Correlation .814 1


N 240 240


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





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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