Journal of Advances in Management Research

Moderating role of gender amongst various constructs of CRM: An empirical study

of Indian hotels
Mohita Maggon, Harish Chaudhry,
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Mohita Maggon, Harish Chaudhry, (2018) "Moderating role of gender amongst various constructs of
CRM: An empirical study of Indian hotels", Journal of Advances in Management Research, https://
doi.org/10.1108/JAMR-07-2017-0080
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An empirical
Moderating role of study of
gender amongst various Indian hotels

constructs of CRM
An empirical study of Indian hotels
Mohita Maggon
SOCM, National Institute of Construction Management and Research,
Pune, India, and
Harish Chaudhry
Department of Management Studies, Indian Institute of Technology Delhi,
New Delhi, India
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Abstract
Purpose – The purpose of this paper is to examine the interrelationships among the extracted constructs of
customer satisfaction (CS), knowledge about customer relationship management (CRM) program, customer
attitude and their effect on relationship share (RS). The study also attempts to find if moderating role of
gender exists among these constructs.
Design/methodology/approach – A conceptual framework is developed based on previous studies.
In order to address a lack of comprehensive evaluation of B2C relationships in Indian hotels, this study
extracted the dimensions of CRM in hotels and used them in the structural model. The conceptual model is
tested using structural equation modeling approach through maximum likelihood estimation technique.
A sample of 305 domestic travelers was used to test the hypothesized relationships among the constructs.
Findings – The findings indicate that CS and willingness to engage (CWER) in the relationship are major
predictors of RS. Besides, CS indirectly affects RS through customer’s attitude toward the hotel. The results of
the study also show that customer willingness to engage in the relationship is dependent on attitude of
customer toward firm which is further dependent on knowledge about CRM program. One more notable
finding of the study states that gender plays a moderating role between CS and customer willingness to
engage in the relationship.
Practical implications – In addition to contributing toward academic knowledge, the findings of the
present study will help the practitioners to better design CRM program and reap its maximum benefits.
Originality/value – The current study has considered new dimensions of CRM like customer’s knowledge
of CRM and this is the first study to capture responses of Indian travelers in relation with various constructs.
This is the first study to test the moderating effect of gender between various constructs.
Keywords Gender, Customer satisfaction, Customer relationship management
Paper type Research paper

Introduction
The Indian hospitality industry has emerged as one of the key contributor toward Indian
economy in past. It contributes 6.23 percent to the national gross domestic product (GDP)
and 8.78 percent of the total employment in the country. The travel and tourism industry
contributed INR2.17 trillion (US$36bn) to the country’s GDP in 2013. The figures are
expected to rise to INR4.35 trillion (US$72.17bn) by 2024. The revenue from domestic
tourism grew by 8.2 percent in 2014 as compared to 5.1 percent in 2013, according to the
(World Travel and Tourism Council, 2015). The Indian hospitality sector has been growing
at a cumulative annual growth rate of 14 percent every year adding a significant amount of
foreign exchange to the economy.
According to the ministry of tourism Annual Report (2016), Indian hospitality sector Journal of Advances in
Management Research
has recorded robust expansion due to a steady inflow of foreign as well as domestic © Emerald Publishing Limited
0972-7981
tourists and it has turned into one of the essential players in the global industry. DOI 10.1108/JAMR-07-2017-0080
 JAMR According to the HVS Asia Pacific report 2014, spending on travel in the Asia Pacific
region have increased 8 percent annually since 2000, which has doubled in size and total to
$393bn. As per various reports, the number of foreign tourist arrivals is set to
increase exponentially which can lead to enormous opportunities for marketers for a
profitable business.
Dealing with competition would be a challenging task for managers, and it would
demand considerable efforts to gain and retain customers. According to (Rosenberg
and Czepiel, 1984), “The balancing of marketing efforts between winning new customers
and holding onto old ones will prove instrumental in pursuing sales and profit growth”
(p. 47). One major business activity that could help managers deal with competitive forces is
customer relationship management (CRM). That is why the hotels give ample attention
to develop and maintain relationships with customers. Even after paying huge attention to
CRM research, there are occurrences of CRM failures in organizations. Sheth and Parvatiyar
(2000, p. 140) contend that to be successful, relationship marketing theorists and
practitioners must focus on the “conditions that encourage marketing actors to enter
relationships,” not the anticipated outcomes such as loyalty. The implicit message is that
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consumer loyalty will naturally follow when the proper conditions for the development of
meaningful relationships between consumers and companies exist. There exist findings that
suggest that despite the focus of past studies on the relationship among customer
satisfaction (CS) and behavioral intention (BI), the precise nature of the relationship between
CS and customer relationship share (RS) is not clear particularly in the hotel industry
(Lee et al., 2000; Oliver et al., 1997; Hooi Ting, 2004). Baisya and Sarkar (2004) poised the
importance of satisfaction in predicting customers’ future intentions in airlines industry.
Singh (2015) also empirically tested that satisfaction is a key driver of future behavior in
services sector.
Thus, examining the relationships among customer willingness to engage in a
relationship (CWER), CS and attitude in the formation of RS are very much required to
understand consumer behavior in the hotel industry better. The study is aimed to fill the
apparent gaps by examining the role of attitude and satisfaction in shaping RS in hotels.
This study addresses Sheth and Parvatiyar’s (2002) call that urges researchers to
investigate and explain the conditions which encourage consumers to enter marketing
relationships. Same has been done by integrating three theoretical underpinnings to create
a multi-theoretical model. This study proposes that positive attitude and customer
knowledge of CRM will lead to higher levels of customer’s willingness to enter into a
relationship which would ultimately result in the high RS.

Underlying constructs and hypotheses

Customer relationship management
CRM has been a focus area for marketers as well as academicians over the last decade.
In spite of, or maybe due to the importance of the subject, there is a need to have a clear
understanding of what CRM is. CRM is a combination of values and strategies aiming to
convert relationships into outcomes (Chalmeta, 2006; Yu, 2001).
A detailed review of the literature shows that CRM has been a critical element in
hospitality research as summarized by Maggon and Chaudhry (2015). A major thrust has
been on what are the outcomes of CRM application. Successful CRM program leads to
many desired results. Previous studies have empirically found various consequences of
CRM implementation in hospitality. For example, Lee and Hiemstra (2001), Xie and Heung
(2012) observed that relationship marketing in hotels causes BI. Similarly, positive word of
mouth (WOM) arises from CRM as poised by Kim and Cha (2002), Kim, Lee and Yoo (2006),
Castellanos-Verdugo et al. (2009) and Wu and Li (2011). Studies by Andreu et al. (2010),
Kim, Oh and Gregoire (2006), Lee et al. (2012) and Moliner et al. (2007) highlighted that
 CRM leads to commitment among hotel customers. Satisfaction is another outcome of An empirical
CRM in hospitality as stated by Al-Refaie et al. (2012), Daghfous and Barkhi (2009), study of
Dominici and Guzzo (2010). Loyalty is the most sought out benefit by firms. Several Indian hotels
studies have mentioned positive effect of CRM on allegiance in hotels. For example, Lee
et al. (2016), Jin et al. (2013), Kim and Han (2008), Wu and Li (2011) found that successful
relationships in hotels predict loyalty.

Theory of planned behavior (TPB)

An alternative approach to predicting intentions and behavior that is widely used in consumer
behavior research is the TPB (Ajzen, 1991, 2002). It postulates three conceptually independent
determinants of intention: attitude toward the behavior, subjective norm and perceived
behavioral control (Ajzen, 1991, 2002; Armitage and Conner, 2001; Ouellette and Wood, 1998).
The relative importance of each antecedent varies across behaviors and situations. Also this
model suggests that intentions are the immediate antecedent of behavior (Ajzen, 2002), and
intentions fully mediate the impact of attitude toward the behavior and subjective norm on
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behavior, and partially mediate the impact of perceived behavioral control (Ajzen, 1991).
According to TPB, people’s behavior changes according to their intentions and control
perception. Intentions are affected by the attitude toward the behavior, biased norms,
professed behavioral control. Similarly, CWER noted as customers’ BI, is affected by the
customers’ attitude toward the organization and subjective norms, i.e., customers’ knowledge
and belief (KNOW) about firms’ CRM programs; and customers’ image about the organization.
The cognitive foundations of these factors are consistent with an expectancy-value
formulation. Support for this theory, in general, is summarized in a meta-analysis by Rodgers
et al. (2008) and a review of the literature by Sutton (1998).
Ajzen (1991) suggested that attitudes toward a firm are formed by pertinent internal
viewpoint. Similarly, a customer’s attitude toward an organization is formed by his perspective
about the CRM program of the firm. If the customer thinks that engaging in the firm’s CRM
program would be valuable, it will result in positive attitude formation for the hotel.

Relationship share
RS can be defined as the degree of centrality to a customer of a specific relationship with a
firm when this relationship is evaluated in the context of all other relationships with firms of
that customer. RS is a new construct and carries implications for a firm’s future product
share that one customer is willing to be influenced by way of a specific behavior.
The particular response could include such things as loyalty and WOM. This outcome is
possible only when a customer wants to engage in a relationship.
A study by Peppers et al. (1999) has shown that some firms in this new e-commerce
economy, such as Amazon.com, are growing their share of the customer as opposed to their
share of the market. This means they are building their customer base and then finding new
products to sell to them. In the late economy, firms have started to visualize increasing their
share of customer and one customer at a time. To increase the share of customer, firms have
started concentrating on how to augment existing inventories of their products and services.
Using this approach, a firm’s attention is not on a single product or service; instead, they
identify a single customer and try to sell him or her as much product as possible, thus
stimulating more sales per customer relative to what they bought earlier.
Studies have shown that the rate of recurrence of past behavior of a customer also
impacts the future action. This outcome is often regarded as “evidence for habituation of
behavior” (Ajzen, 1991). If the behavior becomes habituated, then there is a high probability
that a firm can sell more of its products and services to that customer, thus enhancing the
sale, by way of getting high RS from the customer.
 JAMR Customers’ willingness to engage in a relationship
Willingness can be defined as a positive predisposition to build a relationship or a lack of
fear or apprehension in the partner. A study by Hoffman et al. (1999) found that the main
reason why customers are not willing to shop online in large numbers or give information
to world wide web providers to get access to information offered onsite in turn, is the
fundamental lack of faith between most consumers and businesses on the web. In essence,
consumers do not believe the majority of web vendors enough in relational exchange.
If the customer feels that there is a benefit in engaging in a relationship, then they would
be more willing to have contact with the firm, and at the same time, they would have high
RS. Hence, to create high RS firms should try to satisfy its customers and create trust in
their mind which will enhance CWER thus leading to greater RS.
Varki and Wong (2003) examined the impact of consumer involvement on CWER.
They found that it is the voluntary participation on the part of consumers that leads to
profitable relationships between customer and firm. By their survey results, the authors
indicated that the more involved the consumers were with the service providers, the higher
their interest in engaging in a relationship. This would occur when they have a high degree
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of trust in that service provider. According to the theory of reasoned action (TRA), the
actual behavior is determined by the intention to engage in the conduct (Fishbein and Ajzen,
1975). In turn, this intention is determined by the subject’s attitude toward that behavior.
Thus, it is hypothesized:
H1. The CWER – RS relationship is positive.

Customer satisfaction
Kotler (1972) defined satisfaction “as a person feeling of pleasure or disappointment
resulting from comparing a product perceived performance or outcome with his or her
expectation” (p. 47). Wu (2002) describe satisfaction as the consumers’ response to an
evaluation of the perceived discrepancy between prior expectations/some other norm of
performance and the actual performance of the product as observed after its consumption.
This means that if the services provided are better than expected, CS will happen, and if the
service is expected to offer worse than the customer, customer dissatisfaction will result.
While Hunt et al. (2006) defined satisfaction as an outcome when expectations are met
entirely by goods/services.
It has been empirically found that effective delivery of product or service can influence
by service providers affects customer response like CS, service quality evaluation. Tsai
and Huang (2002) study of employee effective delivery demonstrated a positive influence
on whether the customer will return to the same firm and spread positive WOM.
The authors suggested that overall time spent by a customer in a store also depends on
product delivery, which further affects future intentions. Jamal and Naser (2002) found
that share of relationships is dependent on satisfaction level. A satisfied customer is more
likely to return than an unsatisfied customer. A study by Levesque and McDougall (1996)
found that inadequate customer service can make a customer dissatisfied thereby leading
to decrease in RS with the firm. It would also reduce customers’ intention to propose the
service to others. Oliver et al. (1997) further strengthened the findings of the previous
studies by saying that CS had an evident effect on customer RS. The critical role of
satisfaction to predict behavioral loyalty is also well researched by the past researchers
(Anderson et al., 1994; Cronin and Taylor, 1992; Rajagopal and Sanchez, 2005; Zeithaml
et al., 1996).
A meta-analysis study on CS by Szymanski and Henard (2001) found that CS and
customer attitude are related in a positive direction. Oliver’s (1980) study on CS focused on
integrated antecedents and hypothesized consequences of satisfaction; it found attitude to
 be an outcome of satisfaction. The result of Oliver’s research was supported by LaBarbera An empirical
and Mazursky (1983) that investigated the direct and indirect cognitive effects of study of
satisfaction on consumer attitude. LaBarbera and Mazursky (1983) study found the same Indian hotels
result as the other two studies done by Szymanski and Henard (2001), Oliver (1980). From
the above studies, one can deduce that CS is positively related to customer’s attitude
toward a firm. Thus, it is hypothesized:
H2. The CS – RS relationship is positive.
H3. The CS-ATT relationship is positive.
H4. The CS-CWER relationship is positive.

Customers’ knowledge and belief about CRM

This variable can be defined as how much customers are knowledgeable about the firm’s CRM
program and how much they believe that the information that they provide to the firm will be
used properly. Sometimes a customer may not share their personal information with the firm.
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They might feel that their information may be used for other purposes and this lack of sharing
may make them less willful to build any personal relationship with the organization. This
perception may lead to forming a negative image of the firm in customer’s mind regarding
CRM program. Customers’ attitudes toward the firm CRM program depend on customers’
relationships with the user (firm) and the degree of trust they hold. Evidence suggests that
consumers are very selective about the firms with which they relate.
A study by Fletcher (2003) proposed that formation of positive or negative attitude
toward a firm is also a function of the level of knowledge about firm’s CRM program.
The degree of awareness, as well as experience with the organization, affects customer’s
attitude formation. A positive experience will result in forming positive attitude and vice
versa. According to the theory of self-perception, an individual becomes aware of his
beliefs from the analysis of attributes of previous behavior (Bem, 1972). Such attitudes
have an impact on the customers’ future behavioral intent. A satisfactory experience will
lead to a good opinion about the organization which will increase future behavior
positivity (Allen et al., 1980).
If customers have proper knowledge of a firm’s CRM program and they think it’s
beneficial for them, they are more likely to rely on the firm for sharing personal
information and have a positive attitude. Contrary to this, when there is no level of
knowledge regarding CRM program, customers would refrain from sharing any personal
information and a positive attitude would not be formed. It is the experience that creates a
positive or negative perception in the minds of the customer regarding an organization.
Such experiences include faith, conviction, and awareness that customers possess with the
firm while interacting. In fact, these elements are very critical in forming relationships
between firm and customer and also crucial for sharing of information between two
(Lewicki et al., 1998; Milne and Boza, 1999). There may be some customers who welcome
any CRM activity and support the change. There are other sets of customers who might
resist the same (Grazioli and Jarvenpaa, 2000). Both types of customers are influenced by
elements like trust and CRM program knowledge provided to them (Fletcher, 2003). Thus,
we can hypothesize:
H5. The KNOW-ATT relationship is positive.

Customers’ attitude toward the firm

Attitude is “a psychological tendency that is expressed by evaluating a particular
entity with some degree of favor or disfavor” (Eagly and Chaiken, 1993, p. 4). In this study,
 JAMR customer’s attitude is defined as customer’s psychological tendency, either in favor or
disfavor, toward the firm, depending on their purchase and service experience with the
firm. Customer’s attitude also lays the foundation for future behavior (Innis and La Londe,
1994). If a customer has a positive attitude toward a firm, then they would be
more likely to have a relationship with that firm and give a higher proportion of their RS
to that firm.
Customer’s attitude is shaped by his/her experience with company/products/services.
It has been found that favorable attitudes can impact whether a customer wants to connect
through a relationship with the service provider (Pomerantz et al., 1995). According to
Fishbein and Ajzen (1975) TRA, the real behavior is affected by intent to engage in that
behavior. Precisely it can be assumed that customer’s strong attitudes coming from
satisfaction also brings out customers’ intention to engage in a relationship. Thus, if a
customer has strong or a positive attitude toward a firm, it will elicit CWER. Lam and Hsu
(2006) found that attitude shapes BI in hospitality. The attitude was found as a precursor of
positive behavioral outcomes by Ki and Hon (2007). From above-discussed literature the
hypothesis follows:
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H6. The ATT toward hotel-CWER relationship is positive.

The moderating role of gender

Observations focused on the relationships among trust, satisfaction and loyalty have
emphasized the importance of potential moderators (Schirmer et al., 2018). Barnes (2000)
believes that many researchers are developing models of CRM/RM without genuinely
acknowledging the influence of external (to the consumer) and internal (intrapersonal
idiosyncrasies) forces. These forces, while not directly impacting relational outcomes, may
be influencing or moderating the strength and even development of consumer-company
relationships. Recently, a large number of studies have shown interest to examine how
demographics/ personal characteristics affect customers’ buying behavior (Evanschitzky
and Wunderlich, 2006; Homburg and Giering, 2001; Im et al., 2003). There are also a right
amount of studies which examined demographics/personal characteristics, such as gender
and age, as essential moderators affecting future behavior (Homburg and Giering, 2001;
Im et al., 2003; Mittal and Kamakura, 2001). But few studies could be found showing the
role of moderators in hotel settings ( Jin et al., 2013). Some studies have examined how
social behavior and consumption patterns differ across gender in other contexts (Saad and
Gill, 2000). Social role theory suggests that due to the difference in the socialization of
males and females, their behaviors also tend to differ (Saad and Gill, 2000). Or in other
words, men are socialized in upbeat and self-sufficient manner while females in
unreceptive and reserved way.
There is lack of research investigating role of gender as a moderator between CS and
future behavioral outcomes like repeat purchase/loyalty. Mittal and Kamakura (2001)
proposed the notion of satisfaction thresholds: “Consumers may have different thresholds or
tolerance levels toward repurchase that may not be fully captured in their satisfaction ratings”
(p. 132). According to them, customers with the same level of satisfaction may differ in future
behavior due to the difference in personal characteristics particularly gender. From the
marketing literature concerning role of gender in predicting future behavior, it can be deduced
that males tend to be more task-oriented while females are more relationship-oriented (Babin
and Boles, 1998; Eagly et al., 1992; Iacobucci and Ostrom, 1993; Karatepe et al., 2006).
The hypothesis formulated on the basis of above findings is:
H7a. The relationship between CS and ATT is moderated by gender.
H7b. The relationship between CS and RS is moderated by gender.
 H7c. The relationship between CS and CWER is moderated by gender. An empirical
H7d. The relationship between CWER and RS is moderated by gender. study of
H7e. The relationship between KNOW and ATT is moderated by gender.
Indian hotels
H7f. The relationship between ATT and CWER is moderated by gender.
On the basis of extensive literature review, a conceptual framework has been proposed
(see Figure 1).

Research methodology
Sample
The sample comprised of Indian travelers who had stayed in a hotel for minimum 30 days in
a year in India. Past studies have taken the number of nights as primary criteria for sample
selection. For example, Minghetti (2003) included those travelers who had stayed minimum
three days every month. Similarly, Weaver and Chul Oh (1993) classified travelers as
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frequent or infrequent if the number of nights is more than or less than ten, respectively.
Another criterion suggested by McCleary and Weaver (1992) chose a sample from heavy
users of hotel services who stayed for more than 27 days a year. The data were collected
through a structured questionnaire via online and personal surveys. The survey link was
sent to 1,000 travelers using alumni data from an Indian university. Convenience sampling
procedure was adopted for sample selection. The final sample consisted of 305 responses
which were retained after removing questionnaires with missing data.

Measures used
In this study, five constructs were used. Different scales and corresponding items to measure
variables are presented in Table I. A pilot study was conducted to ensure face validity and
reliability of the questionnaire. The subjects for pre-test included MBA students from an
Indian university, who had stayed at an Indian hotel during last one year.

Customer Customer’s
Knowledge and attitude
belief about CRM
H7e
H7f Customer’s
H7a willingness to
Gender engage in a
H7c relationship

H7b
H7d
Customer
Satisfaction
Relationship
Share Figure 1.
Proposed research
model
Source: Authors’ work
 JAMR Construct Adapted from Measurement Item

Customer satisfaction Verhoef (2003) How satisfied are you about the personal attention of the hotel
How satisfied are you about service quality of the hotel
How satisfied are you about the response by hotel to complaints
made by you
How satisfied are you about expertise of the personnel of hotel
How satisfied are you about your relationship with hotel
How satisfied are you about willingness of hotel to
explain procedures
How satisfied are you about alertness of hotel
Customers’ knowledge Lichtenstein et al. How knowledgeable are you about CRM program of your hotel
and belief about the (1990) How do you rate your knowledge about CRM compared to most
CRM of your friends
How thorough would you rate your knowledge about the CRM
program of your hotel
Willingness Varki and Wong I want to maintain relationship with hotel
(2003) I have to maintain relationship with my hotel because I have
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no choice
I have to maintain relationship with my hotel because of high
switching costs
I have to maintain relationship with my hotel because I have no
alternatives
I don’t want to maintain relationship with my hotel
Customers’ attitude Stafford (1996) Would you say your attitude towards the hotel is?
How would you describe your relationship with your hotel?
In general how would you describe your overall experience
with hotel?
Relationship Share Thakur and Money already spent
Summey (2005) Money you intend to spend
Overall spending
Table I. Time spent in communicating
Constructs and Overall time devoted
items of the Amount of thought allotted
survey instrument Amount of thought you expect to allocate

Statistical analysis
Descriptive statistics, including frequencies and percentages, were used for demographic data
(Table II). In this study two-step, structural equation modeling (SEM) approach suggested by
Anderson and Gerbing (1982) was used. SEM permits complicated variable relationships to be
expressed through hierarchical or non-hierarchical, recursive or non-recursive structural
equations, to present a more complete picture of the entire model (Bullock et al., 1994;
Hanushek and Jackson, 1977). Since the objective of the study was to validate the model with
already known constructs, therefore SEM technique was used in place of other statistical
techniques. The first step involved confirmatory factor analysis (CFA) to validate the scales
for the measurement of specific constructs proposed in the research model (Hair et al., 2006).
When using CFA, items that produced factor loadings lower than 0.5 were deleted as
suggested by Hair et al. (2006). The second step involved examination of the structural model
through SEM to evaluate the validity of the proposed model.
CFA was utilized to evaluate the overall measurement quality, while a reliability test
(Cronbach’s α) was conducted to assess the internal consistency of each construct.
The cutoff value of 0.70 for Cronbach’s α (Bernstein and Nunnally, 1994) was used. TLI
and comparative fit index (CFI) values greater than 0.90 indicated a satisfactory model fit
(Hair et al., 2006; He and Song, 2008; Yuan et al., 2008). The structural model was tested to
 Demographic variable Frequency Percentage
An empirical
study of
Gender Indian hotels
Male 155 50.8
Female 150 49.1
Age
18–20 5 1.6
21–30 70 22.9
31–40 67 22.3
41–55 80 26.2
Above 55 83 27.2
Occupation
Government employee 42 14
Private employee 208 68.1
Self-employed 40 13.3
Others 15 4.9
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Education
Graduate 50 16.3
Post graduate 200 65.5
Others 55 18
Approximate number of nights spent in last one year
Less than 50 150 49.1
50–100 68 22.2
W100 87 28.5
Income (INR)
Up to 50,000 88 28.8
50,000–1,00,000 145 47.5 Table II.
W1,00,000 72 23.6 Descriptive analysis

assess the proposed causal relationships between various constructs (Figure 1) which
reflected H1 through H6.

Results
Demographic analysis
A total of 350 questionnaires were collected. Responses that included one or more
unanswered sections and those with extreme answers were removed. After deleting
45 invalid surveys, 305 responses were kept for further analysis. Table II presents a
demographic profile of the respondents. In addition to demographic characteristics such as
biological gender, age and education, etc.
Approximately 51 percent of the participants were males, and 49 percent were females.
Age wise, 45 percent ranged in age from 21 to 40 years old. In total, 67 percent were
postgraduate, and 47 percent participants had income more than INR50,000.

CFA results
CFA was used to test construct, convergent and discriminant validity of the instrument
(see Figure 2). As recommended by Hu et al. (1992) several of the fit indices were used
for assessing the model fit because there is no consensus on using a single index to
measure the model fit. Overall fit indices for the proposed base model were acceptable,
with root mean square error of approximation (RMSEA) equal to 0.054, normed fit index
(NFI) of 0.91, non-normed fit index (NNFI) of 0.946 and CFI of 0.94. AVE higher than
0.50 is an indicator of convergent validity. Cross-construct correlations should be low to
 JAMR
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Figure 2.
Confirmatory factor Measurement Model
analyses
Source: Authors’ work

show the evidence of discriminant validity. According to Fornell and Larcker (1981),
discriminant validity is shown when the shared variance (squared correlation) between
any two constructs is less than the average variance extracted by the items measuring
the construct. Table III shows the evidence of discriminant validity.
 Path analysis An empirical
Multiple fit indices, as suggested by Hu et al. (1992) were used for assessing the model fit of study of
the final revised structural model (see Figure 3). The results indicated that the overall fit Indian hotels
indices of the structural model (Table IV ) were acceptable, suggesting a close fit.
Hypotheses testing effects are presented in Table V.

Testing the moderating effects of biological gender

The moderating roles of gender were examined through multigroup analysis in SEM. The
full sample was divided into two groups based on gender. As can be seen from Table VI,
H7c was supported which exceeded the minimum value of 3.84. This means that gender has
a moderating role between CS and CWER. The positive effect of CS on CWER varies across
males and females.

Results and findings

Findings of this research suggest that the final model fits tightly to the data because all the fit
indices were above the threshold values and (RMSEA) value was 0.054. Hypothesis testing
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was conducted on six paths to find significant paths. All paths were found to be significant at
0.05 levels. The findings demonstrated that if there is customer’s willingness for relationship
engagement with a firm, then invaluable information related to the customer can be received
which can help the firm to cross-sell various products and thereby enhancing overall RS.
To make customers satisfied, it is essential for the hotel to maintain personal
relationships with its customers and customize the services based on their needs. Also, the
fulfillment of customers’ needs should be within a time horizon. Same can be achieved only

Construct SAT KNOW ATT CWER RS

SAT 0.79 0.43 0.46 0.43 0.47

KNOW 0.22 0.88 0.78 0.69 0.6
ATT 0.23 0.55 0.87 0.59 0.77
CWER 0.22 0.44 0.34 0.92 0.75 Table III.
RS 0.24 0.35 0.53 0.51 0.9 Discriminant validity

Figure 3.
Structural model
STRUCTURAL MODEL
output
Source: Authors’ work
 JAMR Criteria Indicators

χ2 test
χ2 p W0.05 879.5
χ2/df o5 4.39
Fit indices
GFI W0.9 0.91
AGFI W0.9 0.90
PGFI W0.5 0.87
NFI W0.9 0.91
Table IV. NNFI W0.9 0.93
Goodness of fit CFI W0.95 0.94
indices of model RMSEA o0.08 0.054

Coefficient SE t-value Hypothesis testing results

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KNOW→ATT 0.10** 0.030 10.93 Supported

CS→ATT 0.71** 0.027 9.89 Supported
CS→CWER 0.73** 0.038 8.67 Supported
CS→RS 0.15** 0.034 7.86 Supported
Table V. ATT→CWER 0.22** 0.030 4.78 Supported
Hypotheses testing CWER→RS 0.22** 1.076 1.76 Supported
results Note: **po 0.05

Unstandardized path coefficients

Path Female Male Drop in χ2 Decision

H7a CS-ATT 0.15** 0.22** 0.57 Not supported

H7b CS-RS 0.21** 0.19** 0.056 Not supported
H7c CS-CWER 0.89** 0.79** 4.025 Supported
Table VI. H7d CWER-RS 0.18** 0.14** 0.078 Not Supported
Moderating effects H7e KNOW-ATT 0.17** 0.32** 0.089 Not Supported
of gender on H7f ATT-CWER 0.20** 0.17** 1.24 Not Supported
causal relationships Note: **po 0.05

if the businesses adapt to the dynamic needs of customers thereby enhancing CS and RS.
The results of present context are consistent with the previous studies on retail banking by
Baumann et al. (2005). According to them, firms can predict customer’s share of wallet to a
great extent by effective segmentation. Hence this segmentation can assist the firm in
serving loyal customers to increase satisfaction.
Findings of the previous studies reinforce or strengthen the result of present study, a
positive relationship between satisfaction and attitude. If a customer is satisfied with the
services of the hotel, then it is more likely that the customer will have a positive attitude
toward the hotel. As a result of a positive attitude toward the service provider, customers
would be willing to share their information with them because of a higher level of trust.
Studies have indicated that customer’s attitude toward a firm depends on the degree of
confidence the customer has for the firm; in this case, the hotel.
The positive relationship between the two constructs, knowledge and attitude, suggests
that if customers are knowledgeable about the CRM program, then their perception of risk in
 engaging in a relationship with the firm would be less. As a result, customers would have a An empirical
less negative attitude toward the firm. On the other hand, if customers are not study of
knowledgeable or have minimal knowledge about the firm, then their perception of risk in Indian hotels
engaging with the firm would be higher leading to a negative attitude toward the firm.
The significance of path from knowledge to attitude suggests that a firm should put
more emphasis on communicating the benefits of engaging in a CRM program to the
customer. Such positive emphasis would reduce customers’ negative perception thus
enabling a positive attitude toward the hotel. The results are consistent with the findings of
past research from several domains about the role of attitude toward the act as the
significant predictor for intention (Warburton and Terry, 2000).
Findings suggest that women are relationship oriented and attach more importance to
social interactions with customer-contact employees providing them with specific information
about hotel services and dealing with their requests and problems effectively. This is also
evident in past studies. For example, Yavas et al. (2004) discussed that female customers in the
private banks of Germany attach more importance to interpersonal relationships and
communication than male customers and tend to offer a positive WOM communication.
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The results reported in the current study confirm the extant theory that female customers
place more emphasis on social interactions than male customers (e.g. Noble et al., 2006). These
results are essential additions to the existing knowledge base.

Managerial implications
The managers should use gender differentiated approaches to make customers informed about
CRM program. The study would provide guidelines on how to maximize relationship benefits.
Another implication arising from the survey is that hotels should direct efforts to educate
customers about CRM program. This knowledge would enhance the willingness to engage in
B2C relationships. This should be done with caution because making customers informed would
also raise their expectations from the hotel. There is no simple answer to the problem of
customer information exchange other than to be aware that CRM will not survive without the
consumer’s agreement. If marketing managers do not accept these principles, then they will
never move beyond the initial stages of CRM development and are unlikely to achieve
cost-effective relationship-building strategies. The present study also aligns with previous
finding that knowledge positively impacts attitude particularly in hotel settings. This study
highlights the importance of CRM knowledge in building the customer-firm relationships.

Conclusions and limitations

Managing customer relationships is demanding task as the customers’ needs keep on
changing gradually. Therefore, fulfilling changing needs and wants requires firms to
engage in a useful CRM program. With the help of a formal CRM program, an organization
can sort out its significant clients to build and maintain lasting profitable relationships.
The benefit of such long-lasting bonds will enable the hotel to serve them better by
satisfying them, and it will also help in creating trust between the two.
It is suggested that hotels should direct their efforts to enhance CS which can be achieved
by creating and nurturing mutually beneficial relationships. The development of CS would
lead to: positive attitude of the customers toward the firm; an increase in customers’
willingness to engage in a relationship (CWER) with the firm; and increased customer RS for
that firm. The managers should use gender differentiated approaches to make customers
informed about CRM program. The study would provide guidelines on how to maximize RS.
Another implication arising from the survey is that hotels should direct efforts to educate
customers about CRM program. This knowledge would enhance the willingness to engage
in B2C relationships. This should be done with caution because making customers informed
would also raise their expectations from the hotel.
 JAMR The present study has some limitations which provide ground for future studies.
First, although the analysis of the current research can be generalized over a large number
of travelers, the focus was only on the Indian travelers. Further studies need to investigate
whether the results are generalizable to other industries and settings. Scope for future
research lies in taking international travelers as the sample. A prospective study using split
sample method will be helpful in verifying whether the model developed in present context
holds good. Role of moderators can be explored in various relationships.

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About the authors

Mohita Maggon is working as Assistant Professor at National Institute of Construction Management
and Research (NICMAR) Delhi campus. Her interest areas are CRM, marketing of services and
consumer behavior. Her research work has appeared in Journal of Relationship Marketing (Taylor and
Francis), International Journal of Leisure and Tourism Marketing (Inderscience), JJBR (Sage) etc.
Mohita Maggon is the corresponding author and can be contacted at: mohita.maggon@gmail.com
Dr Harish Chaudhry is Associate Professor in area of Marketing at Department of Management
Studies, IIT Delhi, India. His research areas include marketing of services and relationship marketing
in services. He has taught courses in the area of Marketing such as marketing research, advertising
and sales promotion, product management, sales and distribution, etc. at IIT Delhi. He has also taught
full courses in Marketing and related disciplines at IIM Lucknow, IIM Kozhikode and other
Management Institutions. Dr Chaudhry has conducted more than 100 training programs in areas such
as expert systems, marketing and sales, behavioral sciences and technology management. He has been
a trainer for organizations like Godfrey Philips, Coke, ITC, Network Ltd, PCL, IRCON, RITES and STC.
He has served as a consultant for number of organizations such as Modi Rubber Ltd, Godfrey Philips,
BPL, Dynamic Fashions, Personal Point and Plan International.

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