The Impact of Relationship Marketing on Millennial Customer Loyalty in the Bangkok Hotel Industry

Main Article Content

Jirapha Krataithong
Pakakorn Rakrachakarn

Abstract

The purpose of this study was to investigate and explore the effects of relationship marketing and demographic characteristics on millennial customer loyalty in the hotel industry in Bangkok. Questionnaires were used to collect data from 440 millennial travelers who stayed in Bangkok hotels during 2019. Analysis showed that most elements of relationship marketing—trust, commitment, communication, service quality, products, pricing, technology, and the social network—had a significant effect on millennial customer loyalty. However, customer courtesy did not have a significant effect on customer loyalty. There was no significant effect of gender or marital status on loyalty; however, education level, income, and occupation had significant effects on it. It is thus recommended that hotel management should recognize the importance of millennial customers and put their efforts into understanding the unique characteristics and preferences of this generation. They might implement relationship marketing to create good relationships with these clients and cultivate customer loyalty. Future research efforts might expand the scope of the sample to represent more millennial customers in Thailand. To reach different generations, such as Generations X and Z, other independent variables than those used in this study–such as social networks, online marketing, and mobile marketing–might be successfully employed.

Downloads

Download data is not yet available.

Article Details

Section
Original Articles

References

Abtin, A., & Pouramiri, M. (2016). The impact of relationship marketing on customer loyalty enhancement (Case study: Kerman Iran insurance company). Marketing and Branding Research, 3(1), 41–49.

Ahlert, H. (2000). Enterprise customer management: Integrating corporate and customer information. In T. Henning-Thurau & U. Hansen (Eds.), Relationship marketing (pp. 255–268). Springer. https://doi.org/10.1007/978-3-662-09745-8_14

Ahmed, Q., Qazi, A., Hussain, I., & Ahmed, S. (2019). Impact of social media marketing on brand loyalty: The mediating role of brand consciousness. Journal of Managerial Sciences, 13(2), 201–213.

Afzal, N., & Pakistan, S. (2013). Impact of customer satisfaction and demographic factors on customer’s loyalty in banking sector of Pakistan. Middle-East Journal of Scientific Research, 18(5), 721–727.

Al-Msallam, S., & Alhaddad, A. (2016). Customer satisfaction and loyalty in the hotel industry: The mediating role of relationship marketing (PLS Approach). Journal of Research in Business and Management, 4(5), 32–42.

Alexander, C. (2020). Covid-19 situation report: Thailand. Panorama Destination. http://www.panorama-destination.com/thailand-news/covid-19-situation-report-thailand-2/

Arantola, H. (2000). Buying loyalty or building commitment?: An empirical study of customer loyalty programs. Swenska Handelshögskolan.

Arokiasamy, A. R. (2013). A qualitative study on causes and effects of employee turnover in the private sector in Malaysia. Middle East Journal of Scientific Research, 16(11), 1532–1541.

Bamfo, A. B., Dogbe, C. S., & Osei-Wusu, C. (2018). The effects of corporate rebranding on customer satisfaction and loyalty: Empirical evidence from the Ghanaian banking industry. Cogent Business & Management, 4, 1–11.

Bangkokbiznews. (2020, September 24). 'Phiphat' pramœ̄n khō wit lāk yāo sin pīnī thō̜ngthīeo wūp sāmsip lān khon [Covid-19 expected to last for a long time, will cause Thailand to lose about 30 million tourists this year]. https://www.bangkokbiznews.com/news/detail/871452

Bangkokinsight. (2020). Khō wit-sipkāo chut kānthō̜ngthīeo lōk yut changak! khāt tamsut nai rō̜p siphā pī [Covid- 19 destroys global tourism, lowest numbers expected in the past 15 years]. https://www.thebangkokinsight.com/ 316264/

Baumann, C., Elliott, G., & Burton, S. (2012). Modeling customer satisfaction and loyalty: Survey data versus data mining. Journal of Services Marketing, 26(3), 148–157.

Bialik, K., & Fry, R. (2019, February 14). Millennial life: How young adulthood today compares with prior generations. Pew Research Center. https://www.pewsocialtrends.org/essay/millennial-life-how-young-adulthood-today-compares-with-prior-generations/

BLT Bangkok. (2020, January 29). Rāidai thō̜ngthīeo Thai sūng penʻan dap sī khō̜ng lōk [Thai income from tourism was ranked in fourth place globally]. https://www.bltbangkok.com/ poll/4594/

Bolton, R. N., Parasuraman, A., Migchels, N., & Hoefnagels, A. (2013). Understanding generation Y and their use of social media: A review and research agenda. Journal of Service Management, 24(3), 245–267.

Busakornruangrat, C., Torugsa, S., & Srisawan, P. (2015). Factors influencing customer loyalty in Thonburi hospital. Nursing Journal, 64(2), 26–31. http://www2.thainurse.org/wordpress/wp-content/uploads/2017/11/E5.pdf

Buttle, F. (1996). Relationship marketing theory and practice. Paul Chapman Publishing.

Catalyst Organization. (2019). Trend brief: Generation Z, the future workforce. https://www.catalyst.org/research/ gen-z-future-workforce/

Cekada, T. L. (2012). Training a multigenerational workforce. Professional Safety, 57(3), 40–44.

Dehghan, A. (2006). Relationship between service quality and customer satisfaction in the case of CCG (Customer Centric Group) CO. http://www.divaportal.org/smash/get/diva2:1020291/fulltext01.pdf.

Deloitte. (2009). The millennial mindset: Work styles and aspirations of millennials. Deloitte Development LLC. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-operations/us-cons-millennial-mindset.pdf

Edward, M., & Sahadev, S. (2011). Role of switching costs in the service quality, perceived value, customer satisfaction and customer retention linkage. Asia Pacific Journal of Marketing and Logistics, 23(3), 327–345

Fraering, M., & Minor, M. S. (2013). Beyond loyalty: Customer satisfaction, loyalty and fortitude. Journal of Services Marketing, 27(4), 334–344.

Gajjar, B. N. (2013). Factors affecting consumer behavior. International Journal of Research in Humanities and Social Sciences, 1(2), 10–15.

Gilbert, D., Powell-Perry, J., & Widijoso, S. (1999). Approaches by hotels to the use of the Internet as a relationship marketing tool. Journal of Marketing Practice; Applied Marketing Science, 5(1), 21–38.

Goldman Sachs. (2014). Millennials coming of age. Goldman Sachs Global Investment Research. https://www.goldmansachs.com/insights/archive/millennials/.

Grossman, R. P. (1998). Developing and managing effective consumer relationships. Journal of Product & Brand Management, 7(1), 27–40.

Gronroos, C. (2004). The relationship marketing process: Communication, interaction, dialogue, value. Journal of Business & Industrial Marketing, 19(2), 99–113.

Gummesson, E. (2008). Total relationship marketing. Buttherworth-Heinemann.

Hennig-Thurau, T., & Hansen, U. (2000). Relationship marketing – some reflections on the state-of-the-art of the relational concept. In T. Hennig-Thurau & U. Hansen (Eds.), Relationship marketing (pp. 3–27). Springer.

Husnain, M., & Akhtar, M. W. (2015). Relationship marketing and customer loyalty: Evidence from banking sector in Pakistan. Global Journal of Management and Business Research: E-Marketing, 15(10), 1–15.

Ibidunni, S. O. (2012). Marketing management: Practical perspectives. Concept Publication.

Kandampully, J., & Suhartanto, D. (2000). Customer loyalty in the hotel industry: The role of customer satisfaction and image. International Journal of Contemporary Hospitality Management, 12(6), 346–351.

Lan, H. D. (2015). The impact of relationship marketing on customer loyalty in the airline industry [Master's thesis, Centria University of Applied Sciences, Finland]. https://core.ac.uk/download/pdf/38130872.pdf

Liu, W., Sidhu, A., Beacom, A. M., & Valente, T. W. (2017). Social Network Theory. In P. Rössler, C. A. Hoffner, & L. van Zoonen (Eds.), The international encyclopedia of media effects (pp. 1–12). John Wiley & Sons.

Lovelock, C., & Wirtz, J. (2005). Service marketing in Asia: Managing people, technology, and strategy. Prentice-Hall.

Ministry of Tourism & Sports. (2019). Tourism statistics 2019. https://www.mots.go.th/more_news_new.php?cid=411

Morgan, R. M., & Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38.

Morgan, R. M., Crutchfield, T. N., & Lacey, R. (2000). Patronage and loyalty strategies: Understanding the behavioral and attitudinal outcomes of customer retention programs. In T. Hennig-Thurau & U. Hansen (Eds.), Relationship marketing (pp. 71–87). Springer.

Ndubisi, N. O. (2016). Relationship marketing and customer loyalty . Marketing Intelligence & Planning, 25(1), 98–106 https://tarjomefa.com/wp-content/uploads/2016/09/5313-English.pdf.

Osman, Z., Mohamad, L., & Mohamad, R. K. (2016). An empirical study of direct relationship of service quality, customer satisfaction and bank image on customer loyalty in Malaysian commercial banking industry. American Journal of Economics, 5(2), 168–176.

Oteng, A. (2015). An evaluation of relationship marketing strategies for customer retention in the hospitality industry in Ghana [Master's thesis, Kwame Nkrumah University of Science and Technology, Ghana]. http://ir.knust.edu.gh/ bitstream/123456789/9048/1/ALHASSAN%20OTENG.pdf

Ottenbacher, M. C. (2007). Innovation management in the hospitality industry: Different strategies for achieving success. Journal of Hospitality & Tourism Research, 31(4), 431–454.

Parasuraman, A. P., Zaithaml, V. A., & Berry, L. (1985). A conceptual model of service quality and its implication for future research (SERVQUAL). Journal of Marketing, 49, 41–50.

Power2Motivate. (2017). Return customers: The millennial generation and customer loyalty. https://www.power2motivate.com/news-blog/blog/the-millennial-generation-and-customer-loyalty.

Rosenberg, L. J., & Czepiel, J. A. (1984), A marketing approach for customer retention. Journal of Consumer Marketing, 1(2), 45–51. https://doi.org/10.1108/eb008094

Schawbel, D. (2015). 10 new findings about millennial consumer. https://www.forbes.com/sites/danschawbel/2015/01/20/ 10-new-findings-about-the-millennial-consumer/#73264aff6c8f.

The Pixlee. (2020). How to win millennials’ brand loyalty. https://www.pixlee.com/blog/how-to-win-millennials-brand-loyalty-1/

Thomas, B., & Tobe, J. (2013). Anticipate: Knowing what customers need before they do. http://site.ebrary.com/lib/samk/ home.action.

Thompson, N. W. (2011). Managing the millennials: Employee retention strategies for generation Y. [Master's thesis, Claremont McKenna College, USA]. http://scholarship.claremont.edu/cmc_theses/240

United Nations Tourism Organization. (2020). World tourism barometer Nº18 January 2020. https://www.unwto.org/world-tourism-barometer-n18-january-2020

Ursachi, G., Horodnic, A., & Zait, A. (2015). How reliable are measurement scales? External factors with indirect influence on reliability estimators. Procedia Economics and Finance, 20, 679–686.

Yamane, T. (1973). Statistics: An introductory analysis (3rd ed.). Harper and Row.