DIRE DAWA CAMPUS

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MASTERS OF BUSINESS ADMINISTRATION

PROGRAM WEEKEND

ARTICLE REVIEW: The Effect of Customer Relationship Marketing on

Customer Satisfaction: A Comparative Study on the Selected Resorts in the
Southern Ethiopia

Authors: Lidetu Alemu Anjulo

Reviewed By: Jemal Id/1/15

Instructor: (PhD)
Citations:
Author’s: - Lidetu Alemu, A (2019). The Effect of Customer Relationship Marketing on
Customer Satisfaction: A Comparative Study on the Selected Resorts in the Southern
Ethiopia, Published on, Journal of Marketing and Consumer Research, an International
Peer-reviewed Journal DOI: 10.7176/JMCR Vol.53, 2019

Summary of articles
The summary of this articles review is to review the relationship marketing provides avenues
for service providers to listen and address the concerns and needs of customers in a bid to
promote customer value and satisfaction. The general objective of this articles review is to
assess the effect of relationship marketing on Customers’ satisfaction on the two hotels
namely Haile and Lewi resort in the Southern Ethiopia. The author of the study was
implemented cross sectional survey design. To collect primary data, structured questionnaire
and semi-structured interview were used and 384 structured questionnaires were distributed
to the customers of both Haile and Lewi resorts, only 365 (95%) complete responses were
returned from the customers. The finding of author of the study result indicates that
relationship-marketing dimensions (independent variables) such as trust, commitment,
communication, empathy and responsiveness are positively correlated with customer
satisfaction for both resorts. Therefore, the findings of this articles review suggests that
resorts should incorporate the relationship marketing dimensions to their marketing strategy
so as to increase overall customer satisfaction and in turn to generate benefits from the
relationship with customers that is currently critical to success in this dynamic business
environment with increasing preferences and competition in the market.

1. INTRODUCTION
This paper goes to review the article done on the effect of relationship marketing on
Customers’ satisfaction on the two hotels namely Haile and Lewi resort in the Southern
Ethiopia. Relationship marketing began during 20th century to dominate the marketing field.
At that time relationship, marketing became a major issue in marketing and managing
business (Egan, 2001). Tourism and Hospitality industry has received rigorous attention of
academics, business tycoons and economic analysts because of its growing effect on the GDP
of a country (Uddin et al., 2008). In today’s global economy, hospitality industry is one of the
world largest and the most dynamic industry (Stancious et al., 2011).
This industry is growing around the world and become a major source of income generation
and employment creation for several countries. The hospitality industry consist of large
category of fields within the service industry that includes lodging, restaurants, event
planning, theme parks, transportation, cruise line and additional fields within the tourisms
industry(Olannye,2014). One category of hospitality industry is resort in which the researcher
wants to conduct a comparative study on Haile and Lewi resorts. This articles review was
conducted to assess the effect of customer relationship marketing on customer satisfaction in
these resorts.

Problem Statement: The general problem expressed in this article was the challenge all
marketers face today is to find ways in how to increase customer loyalty and retention. Today
service providers are highly competitive, and this is very challenging for companies to
provide unique services as required by customers, to overcome this challenge, companies can
build effective interaction and relationship with their customers, because customer focus is on
the service delivery system and interaction with the service provider when evaluating the
service provider company. Most hotel and resort managers have limited knowledge on
relationship marketing dimensions and their effects on customer satisfaction. Most of the
employees of hotels and resorts are not well trained on how to create long-term relationship
with customers, that is why they are not effective in implementing relationship-marketing
dimension and creating long lasting relationship with the customers of hotels and resorts.
Also there is no or limited research and journals in Ethiopia to support and inform managers,
employees and customers about relationship marketing dimensions and their effects on
customer satisfaction in case of hotels and resorts.
Objectives of the Reviews Articles: The main objective of the articles is to reviews the
effect of relationship marketing on Customers’ satisfaction on the selected hotels in the
southern Ethiopia Haile and Lewi resorts.
The specific objectives of the articles are:
 To review the effect of trust on customers’ satisfaction on Haile and Lewi resorts;
 To review whether responsiveness has effect on customers’ satisfaction on Haile and
Lewi resorts;
 To compare the results of both resorts in relation to relationship marketing dimensions
and their effect on customer satisfaction.

2. METHODOLOGY
Research Design: This review articles to review the study employed the cross-sectional
survey research design is deemed appropriate for the study as it provides sufficient data to
address the research problem within specified period of time. In this case, a Pilot study was
conducted in this study.
Target population Types and source of data
The target population of this article was customers’ of Haile and Lewi resorts. In addition,
managers of Haile and Lewi hotel and resorts were considered to get further information
about the practices relationship marketing dimensions and their effect on customer
satisfaction. The study was conducted based on primary and secondary data.
Data and source of data: In the articles in order to get sufficient and relevant information,
the study used both primary and secondary data sources. Primary data is obtained through
questionnaire that is collected from Haile and Lewi hotel and resorts customers and managers
as. Secondary data was gathered from published and unpublished theoretical literatures and
empirical studies, books, journal articles, internet was used.
Method of Data Analysis: Quantitative data analysis tools are used to analyse the collected
data. Descriptive statistics are used to describe and interpret the results of the study.
Correlation analysis more specifically Pearson correlation coefficient is used to measure the
degree of association between selected Customer Relationship and Marketing. From
inferential statistics, Regression analysis is used to test the hypothesis of the study. was used
in order to collect data from customers’ resorts. Data analyses were conducted by using
descriptive and inferential analysis.
MAJOR FINDING AND DISCUSSION
The major results of the articles explain that to collect the data and extract findings,
questionnaire was prepared and distributed to customers of Haile and Lewi resorts in
Hawassa city, thus a total of 384 questionnaire was distributed to two resorts in Hawassa
city . The finding result indicates that relationship-marketing dimensions (independent
variables) such as trust, commitment, communication, empathy and responsiveness are
positively correlated with customer satisfaction for both resorts. According to regression
model summary result for Haile resort, R Square=.711 means customers satisfaction is the
result of 71.1 percent change in all independent variables. And also for Lewi resort, R
Square=.680 means that customer satisfaction is predicted by 68.0 percent change in all
independent variables. Therefore, the findings of this thesis suggests that resorts should
incorporate the relationship marketing dimensions to their marketing strategy so as to
increase overall customer satisfaction and in turn to generate benefits from the relationship
with customers that is currently critical to success in this dynamic business environment with
increasing preferences and competition in the market.
Conclusions of the Articles: The conclusion of the articles was depend on the data gathered
from customers as well as marketing and sales officer of the effect of relationship marketing
on Customers’ satisfaction on the two hotels namely Haile and Lewi resort in the Southern
Ethiopia. The analysis results of the research shows that from all independent variables of
relationship marketing under the study, commitment, communication, empathy and
responsiveness have strong correlation with customer satisfaction for Haile resort. But trust
has moderate correlation with customer satisfaction. It was highly significant at the 0.01 level
(p<0.01). Trust, communication, empathy and responsiveness have strong correlation with
customer satisfaction for Lewi resort. However, commitment has moderate correlation with
customer satisfaction. It was significant at the 0.01 level (p<0.01) This finding implies that,
both Haile and lewi resorts has to provide more concern on tactics of relationship marketing
that can highly affect customer satisfaction and their performance in the market. Generally,
the findings of the analysis made above revealed that there is strong and significant
relationship among independent and dependent variables. Furthermore, interview analysis
results show that implementing customer relationship strategies in the resorts have paramount
importance in acquiring and satisfying both actual and potential customers and to generate
profit in the relationship.
Recommendation of the Articles: Based on the major findings of the articles and to fill the
gaps of problems and to let the resorts to sustain strengthens, the following recommendations
were made
 The resorts would provide consistent quality services at different time by adjusting
overall service structure and working environment in similar manner and by
allocating employees with competency in the profession. In addition, the resorts
should work hard to develop their capacity to meet promises by shaping its work plan,
adopting new changes in business environment and effectively determining the
demand of customers in the market and adjusting supply of services accordingly.
 Resorts should inspire their employees by involving many fringe benefits other than
their normal salary in order to persuade them to show interest during service contact
with the customers. In addition providing training and awareness for employees about
the effect relationship with customers on achieving organizational objectives.
  Here the resort had better provide the chances to its customers to express their feeling
about any service related issues. In addition, giving freedom to the customers to
provide the opinions about the services of the resort is the issue that needs concern
from the resort.
 The resort services/products accessibility are improved to satisfy customer need from
customer satisfaction items, has relatively low mean value for two resorts. Based on
the result, the resorts have a duty to improve their products convenience to satisfy the
needs by employing different service delivery techniques.
Evaluation of the Article (Critique)
The strength of the articles
 The main strength of the articles is the author of the articles was well expressed and
defined the effect of relationship marketing on Customers’ satisfaction.
 This article may also help fill the existing gaps in knowledge regarding he effect of
relationship marketing on Customers’ satisfaction on the two hotels namely Haile and
Lewi resort in the Southern Ethiopia.
 Finally, the method of data analysis and the regression methods of the relationship
marketing dimensions (independent variables) such as trust, commitment,
communication, empathy and responsiveness are positively correlated with customer
satisfaction for both resorts was well prepared and there is no significant variation
between dependent and independent variables.

The weakness of the articles

 The weakness of this article is the ways of this work preparation is not clearly and
well organized. For example, the abstract of this article is not have coherence and full
meanings about the journals (which means start from introduction to
recommendations). The methods and problems of statement of this article is not
briefly explained. Lastly but not least the introduction of the articles was not properly
including all body of the study.
 The methods of data collection and analysis was not clearly prepared
 The author of the articles only examine and identify four marketing dimensions on
customer satisfaction in both resorts. But there are some marketing dimensions
practices which is greatly affect the customer satisfaction in both resorts and which
the author cannot explain in the articles.
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