Microsoft Word 2007 ichrie conference Proceedings Final-Final 06-06-07. doc

 
2007 Annual International CHRIE Conference & Exposition 
68
between importance of RM and performance of RM and hotel properties’ characteristics; and (7) to asses the 
relationship between importance of RM and performance of RM and hotel managers’ demographics. 
Literature Review 
The goal of relationship marketing programs is to deliver the highest possible customer satisfaction. The 
important and critical thing for companies is to deliver performance which matches or exceeds customer 
expectations. Because competition gets more intense, hotels depend more on relationship marketing. There is little 
differentiation among products in the hotel industry. For example, general managers of a Sheraton in Asia were 
shown pictures of hotel rooms from their hotel and three competitors. They were given a list of eight brands from 
which to choose but most of them couldn’t identify even their own hotel’s rooms. The difficulty experienced by 
hotel brands as a result of having almost the same physical attribute is a major factor that drew the industry’s 
attention to relationship marketing in the 1990’s. The major purpose of relationship marketing is to build customer 
loyalty. It is interested in customer loyalty more than pure economics and product attributes (Bowen and 
Shoemaker, 2003).
According to Yesawich (1991), who projected the importance of database marketing and/or CRM in 1991, 
the lodging industry should start building true customer relationships by having the following: First, a database, 
which is an automated file of consumption information on guests with whom a hotel wants to build a relationship. 
Second, a consumption monitor, who helps hotels track the consumption patterns of the guests with whom they 
intend to create a relationship. Recognition of important customer characteristics is the third one, because a 
relationship begins and grows with true recognition. It is an essential part of relationship building. Fourth, the 
effective reward system is used to build marketing relationships along with recognition. It doesn’t matter what form 
it has, reward is essential to support purchase behavior. Last, is an ongoing communication, which is the most 
important element, because the others are not meaningful without maintaining communication between the two