The dichotomy of customer relationship management and variety-seeking behaviour in the hotel sector

Abstract

Customer relationship management (CRM) and variety-seeking behaviour (VSB) are paradoxical constructs due to their contradictory intentions. CRM is implemented by organizations to retain customers and generate loyalty while VSB by customers can result in switching. This study addresses the question ‘what is the impact of VSB on the relationship between CRM and its outcomes: repeat visitation and positive word of mouth?’ Following analysis of 400 questionnaire responses from Australian leisure travellers who have visited the same international destination two or more times, the findings indicate that CRM leads to word-of-mouth recommendations, but not repeat visitation. Through multi-group moderation analysis, it was further identified that the outcomes of CRM do not vary based on the degree of VSB of travellers, and CRM leading to repeat visitation is fully mediated by the intrinsic factors affecting VSB, while CRM does have a significant influence on VSB.

Keywords

Customer relationship management destinations hotels leisure travellers variety-seeking behaviour

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