CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In every business organization including hospitality industry, satisfied

consumers are said to be essential for its success in terms of increased
patronage, increased revenue and profit. Hospitality according to Forozia,
Zadeh and Gilani (2013) is a particular type of relationship between a host and
travelers. The travelers look forward to a promising satisfying experience with
their host. Hoteliers on their part develop various strategies to ensure that
customers’ expectations are met to their satisfaction.

Service companies are beginning to realize the importance of ensuring that their
customers are satisfied with their services as a way to reduce their defection to
other competing firms. Therefore to enhance customer satisfaction, the strategy
of building a healthy relationship with customers comes to play. This concept is
known as relationship marketing.

According to Grönroos (1996), relationship marketing is concerned with the

development of long-term ‘relationships with customers and other stakeholders,
at a profit, so that the objectives of all parties are met’ (pp. 23). Relationship
marketing aims at creating strong and lasting relationship with emphasis on
developing long-term bonds with customers through interaction and personal
connection with the firm (Schiffman & Kanuk, 2009). According to Bowen and
Shoemaker (1998), relationship marketing benefit from the continuous attention
shown to loyal customers through decreasing price sensitivity followed by a
reduction in marketing costs and its associated actions. In other words the major
goal of relationship marketing is to achieve customer loyalty so that mutually
profitably and long-term relationship is developed and maintained with
customers (Kuster & Vila, 2006).
Relationship marketing is based on the concept that building long lasting
relationship will lead to future sales. It is a strategy designed to encourage
strong, lasting customer connection to brand. The goal is to generate repeat
sales, enhance customers’ satisfaction and customer loyalty.

1.2 Statement of the Problem

Customer satisfaction is the best indicator of a company’s future profits hence

every company tries to improve on the quality of its relationship with customer
in order to retain them and attract new ones (Gilbert and Veloutsou, 2006).

According to Foronzia et al. (2013), Hoteliers in order to expand and improve

their business should have a better understanding of the dimension that provides
the customer with higher value. In Delta state and Asaba precisely where
competition in the hotel business is gradually evolving and increasing, hoteliers
are often faced with the problem of customer defection due to poor customer
relationship. These problems specifically manifest in the form of lack of
commitment to satisfying customers, inability to attract customers’ trust and
poor communication and conflict handling mechanism with customers.

Thus, obtain sustainable competitive advantage; hoteliers are forced to be

highly innovative and to do their best to ensure customer satisfaction.
Relationship marketing among other marketing strategies has become an
alternative means for organizations to build strong, ongoing associations with
their customers (Andaleeb, 2006). This study therefore seeks to investigate the
effect of relationship marketing on customer satisfaction.

1.3 Objective of the Study

The main objective of study is to investigate the relevance of customer

relationship management on customer satisfaction.
In specific terms, the study intends to:

1. Find out if there is any significant relationship between commitment and

customer satisfaction.
2. To find out if there is any significant relationship between trust and
customer satisfaction
3. To investigate whether communication has any significant influence on
customer satisfaction.
4. To determine the effect on conflict handling on customer satisfaction.

1.4 Research Questions

The research questions of this study are as follows:

1. Is there any significant relationship between commitment and customer

satisfaction?
2. Is there any relationship between trust and customer satisfaction?
3. Does communication have any significant influence on customer
satisfaction?
4. What is the effect of conflict handling on customer satisfaction?

1.5 Research Hypotheses

To come out with useful result, the following hypotheses were formulated to be
tested statistically.

Hypothesis One

H0: There is a negative relationship between commitment and customer

satisfaction.

H1: There is a positive relationship between commitment and customer

satisfaction.
Hypothesis Two

H0: There is no significant relationship between trust and customer satisfaction.

H1: There is a significant relationship between trust and customer satisfaction.

Hypothesis Three

H0: Communication does not have any significant influence on customer

satisfaction.

H1: Communication has significant influence on customer satisfaction.

Hypothesis Four

H0: Conflict handling will have a weak relationship with customer satisfaction.

H1: Conflict handling will have a strong relationship with customer satisfaction

1.6 Significant of the Study

The findings of this study are of significant for it will help the following:-

Corporate Executives: This study is of importance for business executive that

operate in higher competitive market like the manufacturing industry as this will
help them to build strong customer relationship and solve the problem of their
customers switching to their competitors.

Other Researchers: Finally, the work will serve as spring board for further
research.

1.7 Scope of the Study

In other to carry out a comprehensive and meaningful research, this was

restricted to determining the impact of relationship marketing on customers’
satisfaction in the hospitality industry with specific interest in Grand Hotel,
Asaba, Delta State.
1.8 Limitation of the Study

The major problems encountered in the study are as follows:

1. Dearth of Information: The researcher encountered the problem of

sourcing out information from the web and other relevant materials and
textbooks.
2. Cost Factor: Another problem encountered is cost. It is quite expensive
sourcing information from the web, other cost encountered were cost of
transportation and typing.

1.9 Definition of Terms

Customer Relationship Management: it is the combination of business

processes and technology that seeks to understand a company’s customers from
the perspective of who they are, what they do and what they’re like
Customer: It is someone or group of persons who physically make the actual
purchase of goods and services regularly at a particular source of firm.

Customers’ Satisfaction: These refer to customers’ level of approval when

comparing a product’s perceived performance with his or her expectation.

Trusts: is the willingness to rely on an exchange partner in whom one has

confidence

Commitment: This is an enduring desire to maintain a valued relationship

Communication: This means keeping in touch with valued customers,

providing timely and trustworthy information on services and services changes,
and communicating proactively if a delivery problem occurs

Relationship Marketing: the process of creating, maintaining and enhancing

strong value-laden relationship with customers and stakeholders
 CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Relationship Marketing

During the last decade of the 20th century, relationship marketing has been seen
as the mainstream of thought in planning a marketing strategy both in industrial
marketing and consumer marketing (Tseng, 2007). According to Morgan and
Hunt (1994), relationship marketing is defined as all the marketing activities
that are designed to establishing, developing, and maintaining successful
relational relationship with customers.
Hougaard and Bjerre (2009,) also defined relationship marketing as “company
behavior with the purpose of establishing, maintaining and developing
competitive and profitable customer relationship to the benefit of both parties”.
Wulf et al. (2008) suggested that different levels of relationship duration would
result in different levels of consumption experience, producing different results,
satisfaction and loyalty with different relationship marketing tactics. Compared
with traditional marketing, relationship marketing is more concerned about
building customer relationships in order to achieve long-term mutual benefits
for all parties involved in the exchanges. Relationship marketing essentially
means developing customers as partners, where the approach is different from
traditional transaction (Bowen and Shoemaker, 2003).
Another view of RM is that it deals with the analysis, planning, realization and
control of measures that initiate, stabilize, intensify and reactivate business
relationships with the corporation’s stakeholders (mainly customers) and the
creation of mutual value (Bruhn, 2003). In other words, RM is about mutually
beneficial relationships between customers and service providers. In the
exchange process, its economic nature is manifested in goods, services, delivery
systems, financial solutions, material administration and the transfer of
information (Gilbert and Choi, 2003).
Gummerson (1994) explains that the building of relationships is the key to
reaching and maintaining a successful market share. Gummerson defines the
benefits as retention whereby learning relevant information about the customers
such as; names, habits, preferences and expectations one-on-one relations can
be formed and customers can be kept coming back continuously; maybe even
become friends. Also through the use of IT a feeling of intimacy can be created
with the customer as no matter whom they come in contact with, they “know”
them. The major benefit being that once the relationship has taken form
increased profits can be attained by both parties adapting better to each other.
Zeng, Weng & Yen (2003) describe the characteristics of well working CRM
as: increased customer satisfaction. Through the use of smart I.T. CRM can
provide instant service responses based on customer inputs and requirements.
Also by automatically analyzing the customer’s purchases & previous history,
trends and estimations of future buying behavior can be made.
Since the final purpose of relationship marketing is to gain the maximal value of
a customer, customer loyalty should be emphasized to achieve this goal. The
benefits of relationship marketing derive from the continuing patronage of loyal
customers who as a partnership are not sensitive to price cut over time (Bowen
and Shoemaker, 2003). Interdependence, mutual cooperation and commitment
between supplier and customer tend to be essential in relationship marketing, as
such whole relationship is viewed as the key to competitive advantage
(Hougaard and Bjerre, 2009).

2.2 Customer Satisfaction

Satisfaction is defined by different studies in different ways.

According to Inamullah (2015), customer satisfaction is a measure of how
products and services supplied by company meet or surpass customer
expectation.
To Gerpott, Rams & Schindler (2001), customer satisfaction is the numbers of
customers or percentage of customers whose reported experience with a firm, its
product or services exceeds specified satisfaction goals.
In line with the above, Lin & Wu (2011) defined Customer satisfaction as the
degree of satisfaction provided by the goods or services of a company
Auh & Johnson (2005) define customer satisfaction as the consumer’s judgment
that a product provided (or his providing) a pleasurable level of consumption-
related fulfillment.
According to Bodet (2008), customer satisfaction (CAT) is defined as the
measure of the degree to which a product or service meets the customer’s
expectation.
To Hallowell (1996) Customer satisfaction is the degree of satisfaction provided
by goods or services of a company as measured by the number of repeat
customers
According to Anderson (1994) customer satisfaction is used to measure
company performance at both .internally to compensate human resource,
observe performance and assign funds as well as for externally the satisfied
customer is also source of information for all stake holders (customers, public
policy makers competitors and investors).
Satisfaction can be obtained because of what was expected. If the supply of a
firm were according to expectations of customers, they would be satisfied. The
amount of high and low satisfaction depends upon the level of supply that meets
the level of expectation or fall Above/below to that level (Gerpott, Rams &
Schindler, 2001). Satisfaction of customer is used for indication of future
possible revenue (Hauser, Simester & Wernerfelt, 1994). The customers who
are unsatisfied with the received services would not be expected to have long
run relationships with the company (Lin & Wu, 2011). Customer satisfaction
measures how well the expectations of a customer concerning a product or
service provided by your company have been met. (Guo, Xiao & Tang, 2009).
Poor services can also cause to dissatisfaction. Like Inherently poor services or
satisfactory level of services, which cannot achieve customer, expectation may
be cause of dissatisfaction in customers (Rust & Zahorik, 1993). For developing
customer satisfaction, reliability in the providing of services and commitment to
service relationships a company must attempt to increase customers’ future
expectations (Lin & Wu, 2011). Customer satisfaction is a business philosophy
which tends to the creation of value for customers, anticipating and managing
their expectations, and demonstrating ability and responsibility to satisfy their
needs, (Dominici and Guzzo, 2010)
Companies are facing their toughest competition ever. To win customers and
encourage them to stay loyal or repurchase the service, most companies have
resorted to meeting and satisfying customer needs by not being only reactive but
proactive. They are also interested in finding new ways and means to satisfy the
customer. One of the effective means of satisfaction of companies is by
developing a healthy customer relationship. (Dominici and Guzzo, 2010)

2.3 Customer Relationship Management

For Grönrooss (2007), Customer relationship management focuses on how to

identify, establish, maintain and enhance relationships with customers and other
stakeholders, at a profit, so that the objectives of all parties involved are met.
Jolson (2007) described Customer relationship management as the building of
mutual trust within the buyer/seller to create long term relationship, alliances
and collaborative arrangements with selected customers
According to Slater and Olson (2000), Customer relationship management
strategy is based on the supplier and customer interdependence, an exchange of
critical information, trust between partners and a stable relationship, which
allows each party to benefit from a fair return on its investments.
According to Payne and Ballantyne (2001), Customer relationship management
concerns itself with the need to be constantly focused on the relationships when
developing a business strategy. According to them, a Customer relationship
management strategy is the process by which Customer relationship
management is implemented. The objectives of the supplier are then to reinforce
the satisfaction and loyalty of its customers as well as the perceived quality of
its products and services. Therefore, developing a Customer relationship
management strategy consists of positioning the establishment towards building
durable and profitable relationships with customers at the heart of the strategic
process of the firm.
Customer relationship management according to Anpala (2000) is the “process
of combining and utilizing or of allocating organization inputs (men, material
and money) by planning, organizing, directing and controlling for the purpose
of producing outputs (goods and services or whatever the objectives are) desired
by customers so that the organization objectives are accomplished.
Claudia et al (2001) in Onu (2008) defined customer relationship management
as the ability to use the information you have gathered about your customer to
start changing the way your organization interacts with its customers. The task
of creating and delivery superior customer value must be complemented with
the selection of the appropriate customers and effective management of the
relationship with those customers.
In their own view, Hair et al (2006) defined Customer relationship management
as a combination of strategic, process, organizational, and technological change
where by a company seeks to better manage its own enterprise around customer
information. According to the authors, acquiring and deploying knowledge
about customers and using this information across all areas of the business is the
focus of Customer relationship management.
Kotler and Keller (2006) see Customer relationship management as the process
of managing detailed information about individual customers and carefully
managing all customer “touch points” to maximize customer loyalty. A
customer touch point according to the authors are any occasion on which a
customer encounter the brand and product from actual experience to personal or
mass communication to casual observation.
According to String flow (2008) Customer relationship management is an
organized process by which a company keeps track of contacts and
conversations with customers.
In their view, Kamakura et al (2005) states that analytical customer relationship
management is the process of collecting and analyzing a firm’s information
regarding customer interactions in order to enhance the customer’s value to the
firm. This process enhances loyalty and increases switching costs, as
information on consumer preferences affords an enduring competitive
advantage.
Perry (2015) viewed customer relationship management as an information
industry term for methodologies, software, and usually, internet capacities that
help an enterprise manage customer relationships in an organized way. For
example, an enterprise might build a database about its customer that described
relationships in sufficient detail. Therefore, management, sales people, people
providing services, and perhaps the customers could directly access
information, match customer needs with product plans and offerings, remind
customers of service requirements, and know what other products a customer
had purchased.
Also, Kotler and Armstrong (2008) defined Customer relationship management
as the overall process of building and maintaining profitable customer value and
satisfaction.
After surveying many alternative definitions of Customer relationship
management, Payne and Frow (2005) as quoted by Bolton and Tarasi, offers
that; Customer relationship management is a strategic approach concerned with
creating improved shareholder value through the development of appropriate
relationships with key customers and customer segments

From the foregoing views and definitions, we deduced that Customer

relationship management is not only about software, technology and
information, Customer relationship management is a business strategy to attract
new customers, satisfied customer through improved service delivery, thereby
maximizing customer, lifetime value and retention. Customer relationship
management aim at reducing costs, wastage and staff stress thereby increasing
organizational efficiency and profitability. It tends to strengthen the bond
between customers and organizations in a more benefiting way for both.

2.3.1 Benefits of Customer Relationship Management

Gifford (2002) states that there are significant business benefits derivable from
an integrated customer relationship management approach. These include:
i. Reduced costs, because the right things are being done (i.e., effective
and efficient operation).
ii. Increase customer satisfaction, because they are getting exactly what
they want (i.e. exceeding expectations).
iii. Ensuring that the focus of the organization is external.
iv. Growth in number of customers.
v. Maximization of opportunities (i.e., increased services, referrals etc).
vi. Increase access to a source of market competitor information.
vii. highlighting poor operational processes.
viii. Long term profitability and sustainability.
Benefits to customers
Ansoff (2000) as quoted by Onu (2008) identified the following benefit of
Customer relationship management to customer as follows:
i. Risk and stress reduction
 ii. High quality service since the service provider becomes
knowledgeable about customers requirements
iii. Social and status benefits from continuity relationships with a supplier
since repeated contract may develop relationship resembling personnel
friendship which can feed ones status (ego).
iv. Avoiding switching cost because maintaining a relationship with a supplier
avoids the cost associated with switching to a new provider.

2.4 Relationship Marketing Dimensions

Some prominent relationship building basics or dimensions or underpinning of

customer relationship management include: Trust, Personalization
Communication, Conflict handing, empathy, relationship quality, promise,
bonding showed value, reciprocity, competence, and commitment. (Crosby et
al, 1990; Ndubisi, 2004 Morgan and Hunt, 1994). Four of this dimension is
considered here viz trust, commitment, communication and conflict handling.

2.4.1 Trust

Trust has been defined as the willingness to rely on an exchange partner in

whom one has confidence (Ostrom and Lacobucci, 1999) or confidence in an
exchange partner’s reliability and integrity (Morgan and Hunt, 2004).brand trust
is the customer’s willingness to rely on the ability of the brand to perform its
stated function. Trust causes dedication because it reduces the costs of
negotiation agreements and lessens customer’s fear and opportunistic behavior
by the service provider (Bendapudi and Berry, 1997). Trust is considered to
consist of two elements: trust in the partner’s honesty, and trust in the partner’s
benevolence (Wetzels et al, 1998). Honesty is the belief that a partner stands by
his word, while benevolence is the belief that the partner is interested in the c
customer’s welfare, and will not take actions with negative impact on the
customer. An organization making promises to its customers should make
promise that it can fulfill within the required time. Failure to fulfill promises can
lead to lack of trust which results to customer dissatisfaction. Morgan and Hunt
(1994) also suggest that brand trust leads to customer loyalty and commitment
because trust creates exchange relationships that are highly valued. Trust has
positive influence on commitment which in turn has a positive influence on
satisfaction (Lin, 2003). Trust in a relationship partner has been positioned as a
central factor for customer satisfaction and is a principal factor causing
dedication (Berry, 2007). Trust is the glue that holds the business relationship
together and is expressed repeatedly in your actions. This includes what you do
and do not do. Simple things are key, such as returning phone calls immediately
and being consistent in your words and actions. In this way, trust is an
absolutely essential part of sales, as well as business in general. If trust is not
present, customers will not repeat patronage. A betrayal of this trust by the
supplier or service provider could lead to detection.

In business, trust is viewed as one of the most relevant antecedents’ stable and
collaborative relationship. Trust is essential for building and maintaining long-
term relationship. Trust exist when customers have confidence in an
organization’s reliability and integrity, especially manufacturing firms which
are highly competitive. Organization must have the ability to continue to meet
its obligations towards its customers within the cost benefits relationship; so, the
customer should not only foresee the positive out-comes but also believe that
these positive outcomes will continue in the future.

2.4.2 Communication

Communication is the basic component of business relationship initiation and

development, besides it is a variable that is frequently measured in order to
estimate relationship development (Andersen, 2001). In the context of customer
relationship management, communication implies maintaining relationship with
valuable customers, supplying timely and reliable information on services
provided. The goal of communication is formation of mutual understanding in
early phases of relationships, development of customer satisfaction and
encouragement of desired customer decisions (Ndubisi and Chan, 2005).
Customers should feel that company demonstrates genuine interest in the
customers themselves as well as in their demands, requirements, value systems
and so on.

Communication is also important in building understanding of the firms

objectives and creating thorough insights about organizational responsibility
and tasks to attain those objectives. Ensuring easy communication flow is an
important feature of strong relationship. Communication refers to the ability to
provide timely and trustworthy information. Today, there is a new view of
communications as an interactive dialogue between the company and its
customers, which takes place during the pre-selling, selling, consuming and
post-consuming stages (Anderson and Narus, 1990). Communication in
customer relationship management means keeping in touch with valued
customers, providing timely and trustworthy information on services and
services changes, and communicating proactively if a delivery problem occurs.
Communications also tell dissatisfied customers what the organization is doing
to rectify the causes of dissatisfaction. When there is effective communication
between an organization and its customers, a better relationship will result and
customers will be more satisfied.

2.4.3 Commitment

Commitment is a state or quality of being dedicated to a cause, activity and so

on. (Gundlach et al). Wilson (1995) observed that commitment was the most
common dependent variable used in buyer-seller relationship studies.
Commitment is used to analyze both individual and organizational behavior and
mark out forms of action characteristic of particular kinds of people or groups
(Wong & Sohal, 2002).
In the marketing literature, Moorman et al (1992) have defined commitment as
an enduring desire to maintain a valued relationship. This implies a higher level
of obligation to make a relationship succeed and to make it mutually satisfying
and beneficial. Since commitment is higher among individuals who believe that
they receive more value from a relationship, highly committed customers
should be willing to reciprocate effort on behalf of a firm due to past benefits
received (Mowday et al, 1982) and highly committed from will continue to
enjoy the benefits of such reciprocity.

Commitment is one of the key concepts in customer relationship management.

It is generally referred to as an enduring desire to maintain a relationship
(Morgan and Hunt 1994). The concept of commitment is similar to the concept
of a long-term orientation that comprises the desire and utility of a customer to
have a long-term relationship with an organization (Gruen, 1995). The stronger
commitment, the more likely the buyer is to overcome potential obstacles in the
buyer-seller relationship, resulting in customer satisfaction. There are three
different types of commitment. They include;

1. Affective commitment
2. Calculative commitment and
3. Normative commitment
1. Affective Commitment can be defined as “a party’s desire to continue a
relationship because of the enjoyment of the relationship for its own sake
apart from the instrumental worth and because they experience a sense of
satisfaction and belongingness”.
2. Calculative or continuance Commitment can be defined as “the degree to
which channel members experience the need to maintain a relationship,
given the significant perceived termination of switching costs associated
with leaving”. It is the cold calculation of costs and benefits, including
 investments and available alternatives to replace or make-up for foregone
investments Allen and Meyer, 1990; Geyskens et al 1996).
3. Normative Commitment is reflected in “the (moral) obligation to stay in a
relationship”. It is expected that the more strongly customers identify
themselves with the manufacturing firm, the stronger their commitment
towards the manufacturing firm. When customers sense that their choice
for the manufacturing firm is unhindered, the resulting commitment is
likely to be stronger and more deeply held (Pritchard et al 1999). It is
assumed, that he need to maintain a consistent informational structure,
about for instance reasons for revisiting the manufacturing firm, has a
positive impact on commitment. Building trust among customers has
positive influence on customer commitment. Many studies show that
customer trust positively influences commitment empirically.
Customer commitments positively influence customer satisfaction.

2.4.4 Conflict Handling

Conflict handling reflects the service provider’s ability to avoid potential

conflicts, solve manifest conflicts before they create problems and the ability to
discuss solutions openly when problems arise. While, Dwyer et al. (1987)
define conflict handling as the supplier’s ability to minimize the negative
consequences of manifest and potential conflicts, Rusbult et al. (1988)
concluded with the likelihood that an individual will engage in these behaviors
depends on the degree of prior satisfaction with the relationship, the magnitude
of the person’s investment in the relationship and an evaluation of his/her
alternatives. As conflict handling requires cooperative behavior from exchange
partners, it has been linked to perceptions of trust and satisfaction in negotiation
contexts (Pruitt, 1981), hence contributes positively to relationship quality.
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

Research design is the plan for research project. It provide guidelines which
direct the researcher towards solving the research problem and it may vary
depending on the nature of the problem being studied (Akuezuilo and Agu,
2013). The research design method suitable for this work was descriptive
method. This involves survey research in which questions were adopted.

3.2 Source of Data

To achieve required result of study essential, data for the research were obtained
from primary and secondary sources.

3.2.1 Primary Data

Primary data for this work was collected by the researcher using copies of
questionnaires.

In collecting the primary data for this research adequate care was taken to
obtain data that are meaningful and relevant to the work.

3.2.2 Secondary Data

The secondary source of data employed for the study are literature reviewed, the
internet, journals and textbooks gotten from the Nnamdi Azikiwe Digital
Library Awka.

3.3 Population of Study

According to Hair et al (2000), a population is the identifiable total sets of

elements being investigated by a researcher. The population for this study
consist of the customers of Grand Hotel, Asaba, Delta State. Since the
population of customers is not known with precision, it is regarded as an
unknown population

3.4 Sample Size Determination

Predicated on the unknown population size, the sample size for this study can
then be determine using the Topman’s sample size formula for infinite
population

The formula is stated below and utilized accordingly:

n = Z2(p)(q)
e2
Where n = Sample Size

Z = Standard deviation given corresponding confidence level

P = the estimated population of incidence of cases in the population or

assumed success rate with the instrument.

Q = (1-P) or assumed failure rate

E = Proportion of sampling error or error margin in a given situation.

n = Sample size (to be determined)

Z = at 95 percent confidence level is 1.96 (read from standard normal

distribution table).

P = 90 percent (0.90) is assumed

q = 1 – 0.90 = 0.1

e= 0.05

n = (1.962)(0.90)(0.10)
0.052
n = 138

3.4 Sampling Technique

The probability sampling technique was used. According to Akuezuile et al

(2003), probability sampling technique is the technique for which we can
determine the probability, likelihood or chance of including each member of the
population in the sample. There are various types of probability sampling
technique for example, simple random sampling, proportionate stratified, and
cluster. For the purpose of this work simple random sampling was used. Simple
random sampling is a method of selecting a sample from a population so that all
members of the population have equal chances of being selected.

The rationality of using the simple random sampling technique was that it is
based on equal chance or probability of being selected.

3.6 Research Instruments

Instruments used in gathering primary data for the study was the questionnaires.
The copies of questionnaires were distributed to the customers of Grand Hotel,
Asaba, Delta State. The questionnaire consists of two sections, section A
demographic questions and section B main questionnaire items. The
questionnaire consist of likert scale questions ranging from 1 to 5, with 1 –
strongly agree and 5 – strongly disagree.
3.7 Method of Data Analysis

Data collected will be presented using simple percentage and frequency counts
(descriptive statistics). The hypotheses earlier stated will be tested using product
moment correlation.

The formula for the product moment correlation is stated below.

r = n∑ x y - ∑ x ∑ y
√(n∑x2 –(∑x)2) (n∑y2- (∑y)2)
r = Correlation coefficient
x = Independent variable
y = dependent variable
Source: Okeke T.C, Olise M.C and Eze G.A (2010)

Decision Rule

In interpreting the strength of relationship between the variables, the guideline

given by Osisioma (2009): from 0.0 to ±0.2 = slight/n0 correlation, 0.2 to ± 0.4
= low correlation, and 0.9 to ± 1.0 = very strongly/perfect correlation.
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Questionnaire Distribution

Based on the sampling size of 138, a total of 138 copies of questionnaires were
distributed to customers of Grand, Hotel Asaba, out of which 120 were returned
and 18 were either not returned or rejected as summarized in the table below:

Number Percentage (%)

Number distributed 138 100
Number returned 120 87
Number not returned 18 13

4.2 Demographic Characteristics of respondent

Table 4.2.1: Respondent’s Sex

Option Number of Respondents Percentage (%)

Male 78 65
Female 42 35
Total 120 100
Source: Field Survey, 2015.

From the above table, the total number of respondents who returned the
questionnaire is 120 representing 100%. Male represents 65% while female
represent 35%.
Table 4.2.2: Respondent’s Age Distribution

Option Number of Respondents Percentage (%)

Below 25 25 21%
26-36 39 33%
Above 36e 56 46%
Total 120 100
Source: Field Survey, 2015.

From the above table, 21% representing 25 respondents who are below 25years,
33% indicated they were between 26-36, and 47% indicated that they were
above 36.

Table 4.3.3: Respondent’s Education Qualification

Option Number of Respondents Percentage (%)

WAEC/GCE 27 22.5
OND/HND/NCE 48 40
B. Sc/M. Sc 45 37.5
Total 120 100
Source: Field Survey, 2015.

From the above table, 22.5% indicated they had WAEC/GCE qualification,
40% noted they had OND/HND/NCE qualification, while 37.5% noted they are
B. Sc/M/ Sc holders. From this we conclude that most customers are B. Sc, M.
Sc/holders.

Table 4.3.4: Respondent’s Marital Status

Option Number of Respondents Percentage (%)

Single 62 51.7%
Married 58 48.8%
Total 120 100
Source: Field Survey, 2015.

From the above table, 51.7% indicated that they are single, while 48.3%
indicated that they are married.
4.2 Analysis of Responses

Table 4.2.1: I am committed in my relationship with Grand Hotel

Options Frequency Percent
Strongly Agree 30 25
Agree 64 53
Undecided 15 13
Disagree 5 4
Strongly Disagree 6 5
TOTAL 120 100
Source: Field Survey, 2015

From the above, 25% of customers strongly agree that they committed in their
relationship with Grand Hotel, 53% indicated they agree, 13% were undecided,
4% disagree, while 5% strongly disagree

Table 4.2.2: I intend to maintain my relationship with Grand Hotel indefinitely

Options Frequency Percent

Strongly Agree 30 25
Agree 50 42
Undecided 20 17
Disagree 10 8
Strongly Disagree 10 8
TOTAL 120 100
Source: field study, 2015
From the above, 25% of customers strongly agree that they intend to maintain
their relationship with Grand Hotel, 42% indicated they agree, 17% were
undecided, 8% disagree, while 8% strongly disagree.

Table 4.2.3: I care about my relationship with Grand Hotel

Options Frequency Percent
Strongly Agree 72 60
Agree 30 25
Undecided 6 5
Disagree 5 4
Strongly Disagree 7 6
TOTAL 120 100
Source: Field Survey, 2015
From the above, 60% of customers strongly agree that that they care about their
relationship with Grand Hotel, 25% indicated they agree, 5% were undecided,
4% disagree, while 6% strongly disagree.

Table 4.2.4: My relationship with my Grand Hotel is important to me

Option Number of Respondents Percentage (%)
Strongly Agree 29 24.2
Agree 31 25.2
Undecided 15 12.5
Disagree 21 17.5
Strongly Disagree 24 20
TOTAL 120 100
Field survey, 2015

From the table above, it shows that 24.2% of the respondents strongly agree on
the importance of their relationship with Grand hotel. 25.2% agree, 12.5% were
undecided, 17.5% disagree while 20% strongly disagree.
Table 4.2.5: Grand Hotel keeps to its promise

Options Frequency Percent

Strongly Agree 45 38
Agree 50 42
Undecided 12 10
Disagree 3 3
Strongly Disagree 10 8
TOTAL 120 100
Source: Field Survey, 2015

From the above, 38% of customers were of the opinion that Grand hotel keeps
to its promise, 42% indicated they agree, 10% were undecided, 3% disagree,
while 8% strongly disagree

Table 4.2.6: Grand Hotel can be trusted

Options Frequency Percent

Strongly Agree 72 60
Agree 30 25
Undecided 6 5
Disagree 5 4
Strongly Disagree 7 6
TOTAL 120 100
Source: Field Survey, 2015
From the above, 60% of customers strongly agree that Grand Hotel can be
trusted. 25% indicated they agree, 5% were undecided, 4% disagree, while 6%
strongly disagree.
Table 4.2.7: Grand Hotel can be relied upon always

Options Frequency Percent

Strongly Agree 60 50
Agree 38 32
Undecided 10 8
Disagree 5 4
Strongly Disagree 7 6
TOTAL 120 100
Source: field study, 2015

From the above, 50% of customers strongly agree that GRAND HOTEL can be
trusted. 32% indicated they agree, 8% were undecided, 4% disagree while 6%
strongly disagree.

Table 4.2.8: GRAND HOTEL is Sincere in its promises

Option Number of Respondents Percentage (%)

Strongly Agree 37 31
Agree 30 25
Undecided 11 9
Disagree 23 19
Strongly Disagree 19 16
TOTAL 120 100
Source: field study, 2015

The table above shows that 31% of the respondents strongly agree the degree of
GRAND HOTEL is sincere in its promises. 25% agree, 9% were undecided,
19% disagree while 16% strongly disagree
Table 4.2.9: GRAND HOTEL updates me with relevant information
Options Frequency Percent
Strongly Agree 50 47
Agree 40 33
Undecided 15 13
Disagree 5 4
Strongly Disagree 10 8
TOTAL 120 100
Source: field study, 2015

The table above shows that 47% of the respondents strongly agree GRAND
HOTEL updates them with relevant information. 33% agree, 13% were
undecided, 4% disagree while 8% strongly disagree

Table 4.2.10 I feel valued and respected when I get information from the GRAND HOTEL
Options Frequency Percent
Strongly Agree 70 58
Agree 32 27
Undecided 6 5
Disagree 5 4
Strongly Disagree 7 6
TOTAL 120 100
Source: field study, 2015

The table above shows that 58% of the respondents strongly agree they feel
valued and respected when they get information from the GRAND HOTEL.
27% agree, 5% were undecided, 4% disagree while 6% strongly disagree
Table 4.2.11 Grand Hotel provides timely and trustworthy information

Options Frequency Percent

Strongly Agree 60 50
Agree 38 32
Undecided 10 8
Disagree 5 4
Strongly Disagree 7 6
TOTAL 120 100
Source: field study, 2015

The table above shows that 50% of the respondents strongly agree they are
timely and trustworthy information from GRAND HOTEL. 32% agree, 8%
were undecided, 4% disagree while 6% strongly disagree.

Table 4.2.12 GRAND HOTEL provides quick information when there is a new
service on offer
Options Frequency Percent
Strongly Agree 34 28
Agree 69 56
Undecided 7 6
Disagree 5 4
Strongly Disagree 5 4
TOTAL 120 100
Source: field study, 2015

The table above shows that 28% of the respondents strongly agree that GRAND
provide quick information on new services. 56% agree, 6% were undecided, 4%
disagree while 4% strongly disagree.
Table 4.2.13: GRAND HOTEL tries to avoid potential conflict/complaint(s)
Options Frequency Percent
Strongly Agree 50 47
Agree 40 33
Undecided 15 13
Disagree 5 4
Strongly Disagree 10 8
TOTAL 120 100
Source: field study, 2015
The table above shows that 47% of the respondents strongly agree GRAND
HOTEL tries to avoid conflict. 33% agree, 13% were undecided, 4% disagree
while 8% strongly disagree

Table 4.2.14 GRAND HOTEL has the ability to openly discuss solutions when
problem arises
Options Frequency Percent
Strongly Agree 70 58
Agree 32 27
Undecided 6 5
Disagree 5 4
Strongly Disagree 7 6
TOTAL 120 100
Source: field study, 2015

The table above shows that 58% of the respondents strongly agree GRAND
HOTEL openly discusses solutions to problems when they arise. 27% agree, 5%
were undecided, 4% disagree while 6% strongly disagree
Table 4.2.15: I am satisfied with the services of Grand hotel

Option Number of Respondents Percentage (%)

Strongly Agree 51 43
Agree 43 6
Undecided 5 4
Disagree 11 9
Strongly Disagree 10 8
TOTAL 120 100
Source: field study, 2015

The table above shows that 43% of the respondents were of the opinion that
customer relationship management is relevant to customers’ satisfaction. 6%
agree, 4% were undecided, 9% agree while 8% strongly disagree.

4.3 Test of hypotheses

H0: There is a negative relationship between commitment and customer

satisfaction.

H1: There is a positive relationship between commitment and customer

satisfaction.

In order to test hypothesis 1, question 4 in table 4.3.4 was used as the

independent variable (Commitment) while question 16 in table 4.3.13 was
used as the dependent variable (Customer Satisfaction)

Independent variable (Y)- Commitment

Table 4.3.1: Analysis of responses from question 4: My relationship with my
Grand Hotel is important to me

Option Number of Respondents Percentage (%)

Strongly Agree 24 20
Agree 21 17.5
Undecided 15 12.5
Disagree 31 25.2
Strongly Agree 29 24.2
Total 120 100

Dependent variable (x): Customer Satisfaction

Table 4.3.2: I am satisfied with Grand Hotel

Option Number of Respondents Percentage (%)

Strongly Agree 51 43
Agree 43 6
Undecided 5 4
Disagree 11 9
Strongly Disagree 10 8
Total 120 100

Product Moment Correlation Table

X Y X2 Y2 XY
24 10 576 100 240
21 11 441 121 231
15 5 225 25 75
31 43 961 1849 1333
29 51 841 2601 1479
∑x = 120 ∑y = 120 ∑x2 = 3044 ∑xy2 = 4696 ∑xy = 3358

r = 5 x 3358 – 120 x 120

5 x 3044 – (120)2x 5 x 4696 – (120)2

= 2390
820 x 9080
= 2390
28.64 x 95.29
r = 0.86

Decision: Based on our result (r = 0.86), we conclusion that there is positive

correlation or relationship between commitment and customer satisfaction.
Therefore we reject the null hypothesis and accept the alternate hypothesis. We
therefore conclude that commitment is positively related with customer
satisfaction.

Hypothesis Two

H0: There is no significant relationship between trust and customer satisfaction.

H1: There is a significant relationship between trust and customer satisfaction.

To test hypothesis two, question 9 in table 4.3.9 was used as the independent
variable (Trust) while question 16 in table 4.3.13 was used as the dependent
variable (Customer Satisfaction)
Independent Variable: Trust

Table 4.2.8 Grand Hotel is sincere in all its promises

Option Number of Respondents Percentage (%)

Strongly Agree 37 31
Agree 30 25
Undecided 11 9
Disagree 23 19
Strongly Disagree 19 16
Total 120 100

Dependent variable (x): Customer Satisfaction

Table 4.2.15: I am satisfied with grand hotel

Option Number of Respondents Percentage (%)

Strongly Agree 10 8.3
Agree 11 9.2
Undecided 5 4.2
Disagree 43 35.8
Strongly Disagree 51 42.5
Total 120 100
Product Moment Correlation Table

X Y X2 Y2 XY
19 10 361 100 190
23 11 529 121 253
11 5 121 25 55
30 43 900 1849 1290
37 51 1369 2601 1887
∑x = 120 ∑y = 120 ∑x2 = 3280 ∑xy2 = 4696 ∑xy = 3358
 r = 5 x 3358 – 14400
5 x 3280 – (120)2 x 5 x 4696 – (120)2

= 2390
2000 x 9080

= 3975
44.7 x 95.3
r = 0.56
Decision: Sincere r = 0.56 therefore it means that Trust has a very strong
influence on customers satisfaction. Therefore we reject the null hypothesis and
accept the alternative hypothesis. We therefore conclude that there is a
significant relationship between trust and customer satisfaction.

Hypothesis Three

H0: Communication does not have any significant influence on customer

satisfaction.

H1: Communication has significant influence on customer satisfaction.

To test hypothesis three, question15 from table 4.3.15 was used as the
independent variable (communication) while question16 from table 4.3.13 was
used as the dependent variable (customer satisfaction).
Independent Variable: Communication

Table 4.2.9: Grand Hotel updates me with relevant information

Option Number of Respondents Percentage (%)

Strongly Agree 50 47
Agree 40 33
Undecided 15 13
Disagree 5 4
Strongly Disagree 10 8
Total 120 100

Dependent variable (x): Customer Satisfaction

Table 4.2.15: I am satisfied with Grand Hotel services

Option Number of Respondents Percentage (%)

SD 10 8.3
D 11 9.2
N 5 4.2
A 43 35.8
SA 51 42.5
Total 120 100
The Product Moment Correlation Table

X Y X2 Y2 XY
50 10 2500 100 500
40 11 1600 121 440
15 5 225 25 75
5 43 25 1849 215
10 51 100 2601 510
∑x = 120 ∑y = 120 ∑x2 = 4450 ∑xy2 = 4696 ∑xy = 1740

r = 5 x 1740 – 120 x 120

5 x 4450 – (120)2x 5 x 4696 – (120)2

= -5700
7850 x 9080
= -5700
88.6 x 95.29
r = -0.68

Decision: Based on our result, there is a moderate correlation between

communication and customer satisfaction. Therefore we reject the null
hypothesis and accept the alternate hypothesis. We therefore conclude that
communication has significant influence on customer satisfaction.
Hypothesis Four

H0: Conflict handling will have a weak relationship with customer satisfaction.

H1: Conflict handling will have a strong relationship with customer satisfaction

Independent Variable: Conflict Handling

Table 4.2.14: Grand Hotel openly discusses solutions to problem

Option Number of Respondents Percentage (%)

Strongly Agree 70 58
Agree 32 27
Undecided 6 5
Disagree 5 4
Strongly Disagree 7 6
Total 120 100

Dependent variable (x): Customer Satisfaction

Table 4.2.15: I am satisfied with Grand Hotel services

Option Number of Respondents Percentage (%)

SD 10 8.3
D 11 9.2
N 5 4.2
A 43 35.8
SA 51 42.5
Total 120 100
The Product Moment Correlation Table

X Y X2 Y2 XY
70 10 4900 100 700
32 11 1024 121 352
6 5 36 25 30
5 43 25 1849 215
7 51 49 2601 357
∑x = 120 ∑y = 120 ∑x2 = 6034 ∑xy2 = 4696 ∑xy = 1654

r = 5 x 1654 – 120 x 120

5 x 6034 – (120)2x 5 x 4696 – (120)2

= -6130
15770 x 9080
= -5700
125.6 x 95.29
r = -0.47

Decision: Based on our result, there is a low correlation between conflict

handling and customer satisfaction. Therefore we reject the null hypothesis and
accept the alternate hypothesis. We therefore conclude that conflict handling
has significant influence on customer satisfaction.
 CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Introduction

This chapter presents the summary of findings of the study. In addition with
conclusions, recommendation and suggestions for further research.

5.2 Summary of Findings

Based on the test of hypotheses carried out, the findings are summarized below

1. That there is a significant relationship between commitment and customer

satisfaction.
2. The study also find out there is a significant relationship between trust
and customer satisfaction
3. That communication has a significant influence on customer satisfaction.

5.3 Conclusions

The study examined the relevance of customer relationship management on

customer satisfaction. Three dimensions of customer relationship management
such as commitment, trust and communication were tested to see their
relationship with customer satisfaction where the entire null hypotheses were
rejected. The study thus concludes that customer relationship management is
actually relevant to customer satisfaction.

5.4 Recommendations

Base on the findings, the researcher would like to make the following
recommendation.

1. Commitment is required in every business firms in order to ensure

customer satisfaction.
2. In order to ensure customer satisfaction, business personnel should
establish a trust relationship with customers.
3. Business organization should communicate relevant information to
customers to enhance customers satisfaction