The Effect of CRM on Customer Satisfaction in the UAE Hotel Industry

This report investigates the effect of Customer Relationship Management (CRM) on customer satisfaction within the hotel industry, specifically focusing on the United Arab Emirates (UAE). The research explores the significance of the hotel sector in the UAE's economy and the importance of CRM adoption. It addresses the research questions by examining primary and secondary data, including surveys and literature reviews. The methodology includes data collection, statistical analysis, and hypothesis testing to determine the relationship between CRM and customer satisfaction. The report covers the background of the study, literature review on relationship marketing, CRM, and customer satisfaction. Furthermore, it details the data analysis process, including survey composition, target group, and regression analysis. The findings are summarized, conclusions are drawn, and recommendations are provided, offering valuable insights into the role of CRM in enhancing customer satisfaction in the hotel industry.

Running Head: THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CONCEPT ON ADOPTION OF CUSTOMER SATISFACTION
The Effect of Customer Relationship Management (CRM) Concept on Adoption of Customer
Satisfaction
Name of the Student
Name of the University
Author Note

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Table of Contents
Chapter 1: Introduction....................................................................................................................3
1.1 Background of the Study with respect to UAE.....................................................................3
Chapter 2: Hypothesis Testing.........................................................................................................4
2.1 Problem Statement.................................................................................................................4
2.2 Objectives of the Study..........................................................................................................4
2.3 Hypothesis Statement............................................................................................................4
2.4 Methodology..........................................................................................................................4
2.4.1 Secondary Data Collection.............................................................................................5
2.4.2 Primary Data Collection.................................................................................................5
2.5 Scope and Limitations of the Study.......................................................................................5
2.5.1 Time Frame.....................................................................................................................5
2.5.2 Scope...............................................................................................................................5
2.5.3 Limitations......................................................................................................................5
Chapter 3: Literature Review...........................................................................................................6
3.1 Introduction............................................................................................................................6
3.2 Relationship marketing..........................................................................................................7
3.3 Customer Relationship Management.....................................................................................8
3.4 Customer Satisfaction..........................................................................................................10
Chapter 4: Data Analysis...............................................................................................................12
4.1 Primary Research and Data Collection................................................................................12
4.1.1 Survey Composition.....................................................................................................12
4.1.2 Target Group and Response Rate.................................................................................12
4.1.3 Survey Administration and Execution..........................................................................13
4.2 Data Collection for Analysis...............................................................................................13

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Chapter 5: Intermediate Analysis..................................................................................................14
5.1 Statistical Data Analysis and Regression Analysis.............................................................14
5.1.1 Intermediate Analysis of the Survey Data....................................................................14
5.1.2 Regression Analysis of the Variables...........................................................................16
5.2 Hypothesis Testing..................................................................................................................18
Chapter 6: Conclusions..................................................................................................................20
6.1 Summary of Findings..........................................................................................................20
6.2 Overall Conclusion and Recommendation..........................................................................20
6.3 Lessons Learned..................................................................................................................20
References......................................................................................................................................22

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Chapter 1: Introduction
This section of the research paper deals with the background of the study so that a clear
idea of the research area is received. The discussion of the problems and the purpose of the study
will follow the background from which the research objectives and the research hypothesis will
be framed.
1.1 Background of the Study with respect to UAE
The hotel industry in UAE has shown a significant growth in the past few years. There
has been significant growth in the inventories of the rooms staring from the budget hotels to the
luxury hotels as well as the hotels providing limited services. There have been significant
continuous gains observed in the hotels from both domestic as well as international travellers.
There has been demand for the hotels in both the sectors of business and leisure. Presently, in
UAE, there are more than 100,000 hotel rooms. The type of the hotel rooms has a spread across
the hotel rooms as well as guest houses. There has been 13 percent increase in the hotel rooms in
the beginning of 2018 from 2017. It has been observed that the demand for hotels is increasing.
There are various reasons for the increase. The reasons behind this increase has been assessed in
this research paper.

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Chapter 2: Hypothesis Testing
2.1 Problem Statement
From the discussions conducted so far, it is clear that customer relationship management
has a huge impact on customer satisfaction. The hotel industry is one of the most important
industry in UAE and has a huge impact in the country’s GDP. The more the people visit the
hotels in UAE, the more will the industry be on profit and thus, the impact on GDP will be more.
Thus, the hotel industry has a huge impact in the economy of the country as well. This
indicates the importance of customer satisfaction. There are various different factors that are
responsible for the customer satisfaction in the hotel industry. The factors that are responsible for
customer satisfaction and whether customer satisfaction affect the relationship management with
the customers will be assessed in this paper.
2.2 Objectives of the Study
The purpose of this research is to estimate whether there is any impact of customer
satisfaction on the management of customer relationship. To study that, the following research
questions can be designed:
 What is the significance of the hotel industry in the economy of UAE?
 What is the importance of CRM adoption on the hotel industry?
 How does the adoption of CRM concept help the hotel industry in reaching customer
satisfaction?
2.3 Hypothesis Statement
Based on the research objectives, the following research hypothesis can be framed:
Null Hypothesis (H0): There is no effect of Customer Relationship Management (CRM) concept
on Customer Satisfaction
Alternate Hypothesis (HA): There is significant effect of Customer Relationship Management
(CRM) concept on Customer Satisfaction
2.4 Methodology
This study will be based on analysing the questions stated in the objectives section. The
study will be conducted using two different research methods. One method involves research

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using primary data which was collected with the help of the questionnaire prepared for the
purpose of the study. Another method involves analysis of secondary data, where the data will be
collected from secondary sources such as books, websites, journals, etc.
2.4.1 Secondary Data Collection
To frame of the background of the study on UAE, previous studies on the hotel industry
in UAE has to be has been considered. The information has been collected from different
secondary sources such as journals and websites that contain any published information of the
industry. The statistics were obtained by researching from different websites and organizations.
These information has been used to analyse and discuss the results.
2.4.2 Primary Data Collection
The primary data was collected with the help of the questionnaire that has been designed
for this study. The questionnaire was distributed to 150 customers and their responses were
recorded. Out of the 150 distributed questionnaires, 100 valid questionnaires were obtained in
the end and the data on these 100 valid responses have been considered for this study. With the
help of the survey data, it can be understood how important is the hotel industry to people of
Arabia as well as to people who are not UAE residents.
2.5 Scope and Limitations of the Study
2.5.1 Time Frame
Starting from construction of the questionnaire, collection of the data from both primary
and secondary sources and up to analysis of the data and preparing this report took a total time of
two and a half months. Conducting the survey took almost a month of time and the analysis took
three weeks of time to be ready.
2.5.2 Scope
There are various factors that affect customer satisfaction. Here, the factors have been
limited to certain specific factors that are most important in affecting customer satisfaction.
2.5.3 Limitations

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The study is mainly conducted on the collection of primary and secondary data. The
survey data contains valid responses from 100 respondents. Collecting data on more than 30
participants would have been accepted. Less than 30 participants cannot be accepted for any
study design as the data on such a small sample will not be valid.
Another challenge that can be faced while conducting the surveys is that the reliability of
the responses. The participants are always asked to provide the true information as much as
possible but in some sensitive information such as monthly income, the participants might not be
comfortable in sharing such information. Thus, in those cases, obtaining true information
becomes a problem. This will affect the results of the study.
Chapter 3: Literature Review
3.1 Introduction
The objective of this research paper is investigate the role of Customer Relation
Management (CRM) on consumer satisfaction in the hotel industry. The customer relation
management has now become a key to success for most enterprises. Customers are the most
precious asset for any enterprise. It is extremely important to manage a good relation with
customers particularly focusing on need of each customer in order to maintain a broad customer
base. This is especially important for service industry like hotel management where customer
satisfaction plays an important role. The more successful is the enterprise in meeting expectation
and preference of customers the more profit can be earned overtime (Armstrong et al. 2015). An
enriched customer service involves clear conversation with customers, exploit more an d more
information regarding preference of the customer and obtain insights from viewpoint of every
customer. Good relation with customers is not only applied for marketing segment but it has
implication for the organization as a whole. This is true for every business organization
irrespective of their size, ownership type and other characteristics.
The implementation of CRM though beneficial for every business but there are some
industries that gain more than other gains from CRM and associated focus on customer The
satisfaction. Hotel industry is one such industry where different aspects of CRM play an
important role. The paper particularly considers the dimension of customer satisfaction (Tsou
and Huang 2018). This section discussion some key concepts relating to CRM with brief
discussion of existing literature in the field.

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3.2 Relationship marketing
In the term CRM, ‘R’ represents relationship. Relationship in general refers to the
relationship between two parties over time. Each episode in the relationship consists of a range
of interaction between the involved parties. In every meeting, one participate acts and interact
with the second. Each episode contains series of commutative behaviors such as verbal
communication, body language and action of the parties. The two parties in the relationship
though have different views and objective to participate in such transaction but each aim to
maximize own satisfaction (Khodakarami and Chan 2014). Customers for example willing to
maximize its satisfaction at least possible price. While business aims to maximize its gain.
Since early 1990s, the most significant development has been made in evaluating
marketing relationship. The relationship management first emerged as a new paradigm in
marketing since 1980. This in turn happened because of a gradual shift toward customer
retention from customer acquisition. The relationship marketing is considered as an effective
strategy for attracting customers and maintaining customer relationship. The transactional
marketing focuses on boosting sales and attracting new customers as compared to retaining old
customers (Rodriguez, Peterson and Ajjan 2015). The relationship marketing is defined as
method of marketing in order to establish and maintain a good connection with customers and
other business partners in such a way that objective of all the involved parties can be
accomplished. The only way to achieve this is to involve in mutual exchange with fulfillment of
business commitments. The other way to define relationship marketing is to look it at as a way
to build a long sustained association with stakeholders and customers.
The implementation of relation marketing in practical world requires business to first
identify their targeted customers with whom they want to establish and sustain relationship. The
relation managers need to segregate the customer in accordance with taste and preferences. Then
proper interaction need to be done with each group to customize product and services for them
(Choudhury and Harrigan 2014). The process of relationship management thus involves
extensive communication skill, maintenance and analysis of obtained information in favor of the
business. The more sophisticated is the communication and analysis the better is the relation.

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3.3 Customer Relationship Management
The CRM is defined as a strategic view to tackle customer relation from perspective of
the business organization. The objective is to use customer relationship in order to maximize
profit as much as possible by establishing a broad base of customers. It particularly focuses at
satisfying need of different type of customers (Hair Jr et al. 2015). The underlying objective is to
establish a mutually beneficial relationship with partners and customer to become more
profitable and successful in the concerned business field.
CRM is the integration of customer attention with different aspect of organization
structure and operation including marketing, logistics, sales and accounting. All these are
activities performed by a business to identify, acquire, qualify, develop and retain customer
loyalty and profitability with delivery of appropriate product and service to suitable customers
(Tsou and Huang 2018). In addition to customer need, CRM also looks after cost and price of the
product or service. In other words, CRM indicates a shift in marketing strategy from brand or
product management to customer management.
CRM has now become one of valuable practice for any business organization. The proper
utilization of CRM has a positive influence on number of customers and their loyalty on product
or service providers. CRM is a useful strategy for building customer franchise and raising brand
value than most companies would have realized. Studies found that several motivating factors for
business to adapt CRM strategy. These factor include improvement of customer satisfaction
level, retaining old and existing customers, improvement in value of customer lifetime and
attract new consumers by providing strategic information through the system of CRM
(Rodriguez, Peterson and Ajjan 2015).
The actual importance of CRM to business lies in creation of customers’ base and return
that concerned company get from a range of customers and their reliability on the business. The
success of CRM does not depend on advanced technology or more information rather it is
determined from knowledge of customers and utilization of this knowledge for managing the
relation. However, many companies fail to properly utilize this information and hence, cannot
value their customers’ knowledge (Armstrong et al. 2015). The right application of CRM
contributes to company’s profitability by creating satisfaction, loyalty, acquisition and retention
among the customers.

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Several studies have already been conducted to analyze the importance of CRM in hotel
industry. In a paper developed by Abdul Alem et al (2013), the relationship between
performance of an organization and various dimension of CRM is evaluated for hotels
recognized as three and five star hotels. The performances were examined on ground of
financial, internal, customer, learning and business growth. The study was based on hotels in
Malaysia. The qualitative study collected responses from 152 managers. The result of this study
supported the claim that different dimensions of CRM have significantly positive influence on
performance of the hotels as measured from different indicators. However, no significant relation
was found between CRM and growth and learning prospects of these hotels (Abdul Alem
Mohammad, bin Rashid and bin Tahir 2013). An analytical and descriptive study was conducted
by Amin-Reza et al. (2013). The study included small and medium sized enterprises in the
industrial city of Zahedan. The study was built upon perspective of professionals and
industrialists. The paper found that factors such as strategy, human resources, culture,
management, knowledge, structure and changing dimension of management determines the
success of CRM implementation for these enterprises (Kamalian, Ya'ghoubi and Baharvand
2013). The research paper designed by Amirreza et al. (2013) examined the relationship between
service quality, perceived value to customers, expectation of the customer and customers’
satisfaction for different five star hotels located in Kuala Lumpur. In the paper, five hotels are
taken as a sample estimate. In their study perceived value, customer expectation and service
quality were found to have appositive relation with satisfaction level of customers (Amirreza,
Mohammad and Gilani 2013). The factor service quality turned out as the most significant
determinant of customer satisfaction. A descriptive research was designed by Priya et al. (2013).
Primary objective of the research was to between CRM concept and different public, private and
foreign sectors banks in exploring need of the customers and associated business opportunity.
The study on various banks concluded that a significant difference exists towards application of
CRM as a tool of measuring customers’ satisfaction. The result found presence of significant
difference among the three different group of banks (Priya, G., Jyoti et al. 2013). Like the status
if owners the banks also differ in measuring time of their customer satisfaction along with
components capturing satisfaction of the customers such as loyalty and customer retention. A
positive association however is found between practice of CRM, Customer retention and
satisfaction. Switch cost is also another important factor influencing this association among

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different branches of banks (Baksi and Parida 2013.). A study was undertaken to evaluate
influence of CRM on big malls such as Big Bazar, Value Mart, Marks & Spencer, Pantaloons,
Shoppers stop, Adidas and Reebok factories of South Delhi. The study aimed to find out effect of
CRM on attracting customers and gaining loyalty and satisfaction. The components of CRM for
this study were discounts, varieties offered, personalized services, free offers, gifts, loyalty
points, contests among customers and services after sales. The authors finally concluded that a
good relationship between firm and individual customers benefit both groups in maintaining a
good quality service and loyalty (Gauri et al. 2012). Khaligh et al (2012) presented a paper on
impact of CRM in telecommunication industry of Iran. The analysis revealed that flexible and
explicit pricing policies have an important role in influencing customer loyalty. Further, the
findings indicate that a long term vision and commitment from the management end is highly
required for the telecom industry to successfully apply CRM (Khaligh, Miremadi and Aminilari
2012).
3.4 Customer Satisfaction
The word satisfaction is derived from two Latin word ‘satis’ meaning enough and
‘facere’ meaning to do or make. Therefore, the word implies a satisfactory product or service
should have the capacity to offer the product or service up to the point considered as enough or
sufficient. In other words, the term actually represents a feeling of fulfillment (Kim, Vogt and
Knutson 2015).
A clear understanding of customer satisfaction helps a company to find out opportunities
for its product or service innovation. It also acts as a solid basis for evaluating performance and
designing the reward system. So far as the most accepted definition of customer satisfaction is
that based on theory of expectancy disconfirmation. Oliver in 1980 had developed this concept.
The theory states that satisfaction level is the resulted difference between perceived performance
and the expected performance (Radojevic, Stanisic and Stanic 2015). The satisfaction is achieved
when the offered product or service goes above the expectation. When the same was below the
expected level then there is a feeling of dissatisfaction.
Studies found that there are direct and indirect effect of customer satisfaction on
performance of the business. The customer satisfaction is likely to have a positive impact on
business profitability. A number of studies try to find out relationship p between business

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performance and behavior pattern of customers. These studies found that customer satisfaction
comes along with an increase in customer loyalty, purchase intention and spread of the business
through positive words from existing customers.
Researchers have been devoted considerable times to investigate the major determinants
of satisfaction level. Both subjective and objective factors can determine satisfaction level of the
customers. Subjective factors include need of the customers, their emotions while features of the
product and services are considered as the objective factors. In the hospitality industry, there are
different attributes that seem to be important for travelers in determining their satisfaction level
(Rahimi and Kozak 2017). For the hotel sector cleanliness of room, security structure and
behavior of the staffs are some important factors related to satisfaction of customers. Several
studies have also given stress on attributes such as comfort, locational convenience, quick
service, customer friendly behavior of hotel staff and safety and security. The three most
important factor influencing customer satisfaction are location, availability of room and attitude
of the employees. Some studies concluded that cleanliness, employees and timeliness are
important factor contributing to satisfaction of guests (Bowen and Chen McCain 2015). Another
study found that the top three determinants of customer satisfaction are quality of rooms, staff
quality and values (Albayrak and Caber 2015).
The starting point of customer satisfaction is to provide preferable services to the guests.
The simplest way to do this is to ask them about their preferences. A closely reacted aspect of
customer satisfaction is the quality of services. Quality can be measured in three dimension such
as physical quality, corporate quality and interactive quality (Saleem and Raja 2014). A better
quality service is a convenient way to achieve customer satisfaction.

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Chapter 4: Data Analysis
4.1 Primary Research and Data Collection
The methodology of this research has been explained in chapter 2. Following the research
methodology, the study has been conducted on the customer satisfaction in this section. There
are two sections in which this chapter is divided. The first section consists of the composition of
the survey, the targeted population, the rate of response of the questionnaire, administration and
execution of the task. Analysis of the collected data and its interpretation has been conducted in
the second part of this chapter.
4.1.1 Survey Composition
The questionnaire has been constructed to capture the responses of the customers towards
the different satisfaction factors such as quality of staff, quality of service, etc. The questions in
the questionnaire have been constructed as simple as possible so that it is understandable by the
respondents and there is no such confusion. The questionnaire has been so designed so that the
responses of the customers towards the parameters of customer satisfaction has been recorded.
There are a total of eighteen questions in the questionnaire. Out of the eighteen questions, there
are two pre survey questions.
The pre survey questions have been framed for the validation purpose of the study.
Answer to this question was to indicate whether the participant is relevant for the study. The
questions for pre survey was to identify whether the participant have visited any hotels in UAE
and whether the non UAE resident have ever visited UAE. A participant who have not visited
UAE or any hotels in UAE is not eligible to be a part of this study and thus the participant will
not be considered to proceed with the study.
The survey contained questions on customer satisfaction, customer acquisition and
customer retention characteristics. The information on customer acquisition and customer
retention will be impacting
4.1.2 Target Group and Response Rate
The targeted population for this study are the people who have visited the hotels of UAE
at point in his or her life. The questionnaire was distributed to 150 participants, out of which 100

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participants were found to be valid. The error margin of the collected sample is 5 percent. The
number of respondents collected is not sufficient to represent the whole population. Thus, tis is
one of the limitation to the study.
4.1.3 Survey Administration and Execution
The survey was conducted by an electronic version by constructing google forms. The
link to the google form was distributed via social networking sites and e-mail to approximately
150 people. The survey was opened on 15th February and closed on 15th March, with a total
duration of 1 month. There was a confidentiality statement included with the invitation of the
survey forms.
4.2 Data Collection for Analysis
To check the relationship between customer satisfaction, customer acquisition and
customer retention in the hotel industry, regression analysis has to be conducted. The variables
required for the regression analysis are the variables mentioned above. Here, customer
satisfaction is considered as the dependent variable and customer acquisition and customer
retention are the independent variables.

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Chapter 5: Intermediate Analysis
5.1 Statistical Data Analysis and Regression Analysis
There are two parts in this chapter. The first part is the analysis of the survey data and the
second part contains the analysis of the data with reference to the framed hypothesis. The main
aim of this research was to evaluate the factors responsible for customer satisfaction and the
extent to which the factors affect customer satisfaction. As discussed in the previous sections,
customer satisfaction is affected by customer retention and customer acquisition.
5.1.1 Intermediate Analysis of the Survey Data
With reference to the survey conducted, it has been observed that out of the 150 survey
forms, 100 were found to be valid. Out of the 150 distributed forms, 120 were returned from
which 20 did not fulfil the pre-survey and hence these 20 responses were not considered in the
total number of respondents. The survey forms were distributed via google forms and the link
was distributed by electronic forms such as facebook and e-mail.
From figure 5.1, it can be seen that out of the respondents, there are 36 percent male and
64 percent females. Thus, the analysis results that will be mainly based on the satisfaction of the
female customers more than the satisfaction of the male customers.
64%
36%
Gender Distribution
Female
Male
Figure 5.1: Pie chart of gender distribution in the sample

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From figure 5.2, it can be seen that there are more Arabic respondents in the data than the
non-Arabic respondents. 66 of the respondents have been found to be Arabic and 34 respondents
have been found to be non-Arabic. Thus, it can be said that the satisfaction measures that will be
observed from this analysis will be mostly based on the responses of the Arabic people than the
people of other nationality.
Arabic Non – Arabic
0
10
20
30
40
50
60
70
66
34
Natuionality of the Respondents
Nationality
Frequency
Figure 5.2: Bar graph showing the number of respondents according to nationality
From figure 5.3, it can be seen clearly that most of the respondents belonged to the age
group of 20 – 29 years. 45 respondents out of the 100 respondents belonged to the age group of
29 – 29 years. Thus, the visiting of hotels is mostly done by the young people. The people of
older age show a lower intention of visiting hotels. 32 respondents out of the 100 respondents
visiting hotels belong to the age group of 30 – 39 years. 17 respondents who have visited the
UAE hotels belong to the age group of 40 – 49 years out of the 100 respondents and only 6 of the
selected respondents who have visited the UAE hotels belong to the age of 50 years or more.
Thus, the number of people who have visited the hotels in UAE for different reasons decreases
as there is increase in the age of the respondents.

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20 – 29 30 – 39 40 – 49 50 and above
0
5
10
15
20
25
30
35
40
45
50
45
32
17
6
Age distribution of Respondents
Age group
Frequency
Figure 5.3: Age and number of respondents visiting the UAE hotels
5.1.2 Regression Analysis of the Variables
To run the regression analysis, at first the relationship between the variables employee
retention and employee acquisition with the employee satisfaction has been assessed. The
relationship between the desired variables has been shown with the help of correlation analysis.
It can be seen from the correlation matrix given in table 5.1 that, customer satisfaction has a
strong positive relationship with customer retention and customer acquisition. Thus, if there is
increase in customer retention and customer acquisition, the satisfaction of the customers in the
hotels increase. The relationship is represented diagrammatically in figure 5.4 and 5.5
respectively.
Table 5.1: Correlation matrix showing relationship between Customer satisfaction,
acquisition and retention in hotel industry
Satisfaction Retention Acquisition
Satisfaction 1
Retention 0.66 1
Acquisition 0.71 0.53 1

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0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
0
1
2
3
4
5
6
f(x) = 0.637274549098196 x + 1.26513026052104
R² = 0.431177248113248
Relation between Employee Satisfaction and
Employee Retention
Employee Retention
Employee Satisfaction
Figure 5.4: Scatterplot showing relationship between Customer retention and Customer
Satisfaction
0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5
0
1
2
3
4
5
6
f(x) = 0.652000868369636 x + 1.17667703885954
R² = 0.499959814809397
Relationship between Employee satisfaction and
Employee Acquisition
Employee Acquisition
Employee Satisfaction
Figure 5.5: Scatterplot showing relationship between Customer Acquisition and Customer
Satisfaction
From the results of the regression analysis, it can be seen clearly that the model fitted has
a significance value of 0.000, which is less than the hypothesized level of significance. Thus, the
fitted model is significant. Moreover, the coefficient of determination is 0.61, which indicates
that 61 percent of the variability in customer satisfaction can be explained by the parameters of

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customer retention and customer acquisition. Explaining more than 50 percent of the variability
with a confidence of 95 percent indicates that the fitted model is very good.
It can be seen from the coefficients table that with each unit increase in the customer
retention scores customer satisfaction scores increase by 0.38 and with each unit increase in the
customer acquisition scores customer satisfaction scores increase by 0.46.
Table 5.2: Regression Statistics
Multiple R 0.78
R Square 0.61
Adjusted R Square 0.60
Standard Error 0.69
Observations 100
Table 5.3: ANOVA
df SS MS F Significance F
Regression 2 71.707 35.854 75.947 0.000
Residual 97 45.793 0.472
Total 99 117.500
Table 5.4: Table of regression coefficients
Coefficient
s
Standard
Error t Stat P-value Lower 95%
Upper
95%
Intercept 0.56 0.242 2.301 0.024 0.076 1.036
Retention 0.38 0.073 5.240 0.000 0.236 0.524
Acquisition 0.46 0.069 6.677 0.000 0.324 0.597
5.2 Hypothesis Testing
The hypothesis that was to be tested in this report is given as follows:
Null Hypothesis (H0): There is no effect of Customer Relationship Management (CRM) concept
on Customer Satisfaction
Alternate Hypothesis (HA): There is significant effect of Customer Relationship Management
(CRM) concept on Customer Satisfaction
To test the hypothesis, regression analysis has been conducted. The concept of customer
relationship management states that customer satisfaction is affected significantly by customer
retention and customer acquisition. This relationship has been established true with the help of

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the regression analysis. From the results of the regression analysis, it can be said that the null
hypothesis is rejected. Thus, there is significant effect of Customer Relationship Management
(CRM) concept on Customer Satisfaction.

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Chapter 6: Conclusions
6.1 Summary of Findings
On the basis of the analysis conducted so far and also with the discussion of theories
conducted with the help of both the primary survey data as well as the secondary data obtained
from different articles, it can be concluded that significant impact of the concept of customer
relationship management have been observed in the adoption of customer satisfaction on the
hotel industry in UAE.
Further analysis has confirmed that customer satisfaction in the hotels is highly impacted
with the customer acquisition and customer retention factors. Analysis has also shown that there
is a positive relationship between these factors. Thus, customer satisfaction increases with the
increase in customer retention and customer acquisition. This gives an indication that the hotel
industry must work on the factors of customer retention and acquisition. This will help them to
increase satisfaction in the customers and thus, more and more customers will be coming to the
hotels for several programmes and thus will be of benefit of the industry.
6.2 Overall Conclusion and Recommendation
The study on the effect of customer relationship management concept on adoption of
customer satisfaction is a vast topic. In this research paper, the study has been conducted on only
the hotel industry. This topic is important to be researched on every single industry as this is one
of the most important concepts for the growth of the industry.
Moreover, it is important to work on the factors that will help in the growth of the
industry. As this research is conducted in the hotel industry, it has been observed that the growth
of the hotel industry depends on the satisfaction of the customers of the hotel. Thus, it is
important for the hotels of UAE to improve the satisfaction of the customers. Thus, improvement
of the services provided to the customers is extremely important. Especially in countries like
UAE, where the hotel industry is on its rise, it is important for the industry to work the
satisfaction factors such as customer retention and customer acquisition.
6.3 Lessons Learned
Making this project report has been one of the most challenging and valuable events
experienced. The experience has been valuable in various ways. It helped in gaining insights

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ADOPTION OF CUSTOMER SATISFACTION
about the concepts of customer relationship management, customer satisfaction, customer
retention customer acquisition. The best way in gaining these insights is by doing them. The day
to day researches, conduction of survey, analysing the data and preparing the report have helped
in better understanding of the concepts. Only the work has to be consistent, and practise has to be
conducted with whatever knowledge gained in the classroom.

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