Impact of Electronic Customer Relationship Management on Customers Satisfaction of the Five Stars Hotels in Kuwait

Table of contents

1.

I.

Introduction nline e-commerce offers an incredible level of excitement as it relates to all types and companies activities including; e-commerce, e-business, e-CRM, electronic supply chains, e-tickets, e-education, and e-government. The growth of Internetbased technology continues to be critical to businessto-consumer and business-to-business environments (Al-Hawary and Al-Menhaly, 2016).

A new approach to customer relationship management has emerged with the emergence of the Internet, where customers can get information about the Products and services they need by browsing the Internet from anywhere and the added value of the company's website is critical to influencing customers to Visit the company's website, and learn more about Products and services. CRM includes using e-mail, e-commerce, and any other point of contact on the Internet (Bergeron, 2004). According to Mar one and Lunsford ( 2005), e-commerce applications, product characteristics, pricing, etc. are part of the CRM applications on the Internet (Al-Hawary and Aldaihani, 2016). Scullin et al. (2002) state that every company engaged in online business must educate itself about e-CRM. They believe that the rapid implementation of CRM has begun to spend money before developing a comprehensive e-customer strategy. As a result, many of these companies are dissatisfied with the result achieved in the implementation of CRM.

Satisfaction has become the focus of many researchers (Lin 2003;Feinberg et al., 2002;Cao et al., 2004;Alshurideh et al., 2017; Al-Hawary, 2013a; Al-Hawary, 2013b; Al-Hawary and Harahsheh, 2014). Anderson & Srinivasan (2003) noted that satisfaction has a significant impact on customer loyalty and retention, as well as a reflection of corporate profitability. It is often used as an alternative measure of success in general, and the success of e-commerce applications in particular (Feinberg et al., 2002). Gable et al. (2003) noted that satisfaction is the overall measure of success.

There was a weakness in research in the management of customer relations, and customer satisfaction (within the researcher's knowledge). Feinberg and Kadam (2002) examined the relationship between CRM characteristics and customer satisfaction, and emphasized that companies should create websites with integrated CRM features that are important to customer satisfaction, and in this way, companies can reduce costs. Kim, Ferrin & Rao (2009) noted that customer satisfaction is an important factor for a successful customer relationship. Shih et al. (2011) examined some factors, including ease of use and perceived utility as determinants of customer satisfaction in the context of the Internet. Devaraj et al. (2003) found that the benefit and ease of use of online shopping, followed by low economic costs, and service quality are factors that affect customer satisfaction, and thus determine their marketing channel reference. Feinberg et al. (2002) found that the lack of correlation between CRM characteristics and their results may be the reason for the failure of CRM implementation. They also indicated that the low culture of how CRM features can be found on the company's website may cause the customer's reluctance to follow the company's products, resulting in large sums of money spent on features that are not important or irrelevant to customers The importance of the study is that it seeks to develop the communication process and increase the performance of the five stars hotels in Kuwait through using the websites to achieve higher levels of customers' satisfaction. Therefore; this study came to examine the impact of e-customer relationship management on the customer satisfaction of the five stars hotels in Kuwait.

2. II. Theoretical Framework and

Hypotheses Development a) Electronic Customer Relationship Management Customer Relationship Management (CRM) is a business strategy focusing on customer designed to achieve customer satisfaction and loyalty by providing tailor-made services (Greenberg, 2002). The adaptation strategy, which focusing on the customer has added the "human dimension" to information technology, by emphasizing the process of organizational change. The core philosophy of CRM is to develop long-term relationships with customers (Kristoffersen et al., 2004). In marketing literature, Customer Relationship Management (CRM) is viewed as a strategy, a processoriented, a function that overlaps with other functions, which develops value for both buyer and seller, and a means of achieving superior financial performance (Lambert, 2004 Bruhn (2003) noted that customer relationship management must be accomplished through a lifecycle of Customers to reach its goal, and to improve the added value of customers.

The company's website plays an important role in attracting customers, and encouraging them to stay as sustainable customers with the company. Managing customer relationships through the Internet does not mean opening a store online or finding new ways to achieve points or discounts. But use this technology is used to build profitable relationships, and strengthen the links between business and corporate customers (Newell, 2000); the ultimate goal is to enhance customer loyalty. Therefore, a new approach has emerged to manage this relationship on the Internet with the socalled e-CRM (E-CRM). Rigby et al. (2002) argue that E-CRM is not only a technology or software; it is a means of business processes planning by supporting customer strategies through technology and software. Rosenbaum (2002) concluded that e-customer relationship management revolves around employees, processes and technology, while Romano and Fjermestad (2003) noted that there are five main areas that are not limited to exchange in terms of research in e-CRM: E-business customers, business models in e-customer relationship management, knowledge management for e-customer relationship management, and e-customer relationship management technology, human factors in e-customer relationship management, and each of these areas includes other sub-areas. Finally, Scullin et al. (2002) found that organizations want to achieve many advantages and benefits for a high return on investment (ROI), increased customer loyalty, and more through successfully implementing of e-CRM.

3. c) Concept of Satisfaction

Customer satisfaction plays an important role in the success of business strategies (Gil and Cervera, 2008); customer satisfaction helps to keep customers from seeking service or product from competitors (Fawcell and Sewnson, 1998). Customer satisfaction is more important in the case of e-service because it is difficult to maintain customers in the virtual world and gain their loyalty (Zavareh et al., 2012). Customer satisfaction helps organizations and companies increase their returns and gain competitive advantage (Lewin, 2009). Customer satisfaction leads to long-term ( )

4. E b) Concept of the Electronic Customer Relationship Management

There are several definitions in the marketing literature of CRM. It is simply defined as customer relationship management through the Internet, so ecustomer management is an extension of traditional customer relationship management. Jutla et al. ( 2001) describe e-customer relationship management as an interest in customer relationship with e-business components. Greenberg (2000) pointed out that e-CRM is the same as managing customer relationships but through the Internet. According to Romano and Fjermestad (2001), E-CRM is concerned with attracting and sustaining profitable customers, and trying to reduce less profitable customers. Dyche (2001) points out that there are two main types of e-customer relationship management: operational E-CRM, Which are in contact with customers through the company's defined contact points, including e-mail, website, telephone, direct sales points, fax, etc., and the analytical electronic customer relationship management, which is related to the use of technology to process data and information obtained by the company, and its customers relating to different market, according to their respective sectors.

profits by making the customer in a loyal state (Jochen, 2003; Al-Hawary & Hussien, 2016; Al-Hawary, & Al-Smeran, 2016). That it is necessary to interact with the changing environment in a manner consistent with the behavior of customers to maintain the survival of companies and their continuation in competitive markets (Smith, 1996).

Oliver (1999) defined customer satisfaction as a repurchase of goods or services from the same brand by customers without being influenced by the surrounding environment or marketing methods. Anderson and Sullivan (1993) noted that satisfaction is an evaluation of the customer's experience with the service, and this assessment is achieved either with a positive feeling, indifference or a negative feeling. Kotler (2003) identified customer satisfaction as a sense of satisfaction when customers get what they expect from Service or commodity". Shih (2011) and Wixdom and Todd ( 2005) examined (Ease of use, benefit) as determinants of customer satisfaction. Devaraj et al. (2003) noted that the utility and ease of use of online shopping, followed by low economic costs, including time and effort to find the right product and price, and deal with costs and quality of service are the factors that affect customer satisfaction which determines their references and preferences, and thus determines their choices (Al-Hawary & Metabis, 2013; Al-Hawary and Abu-Laimon, 2013; Al-Hawary, 2012; Al-Hawary and Metabis, 2012; Al-Hawary et.al, 2011). Anderson and Sullivan (1993). It was again defined by Kotler and Keller (2006) as the customer's feeling of joy after obtaining service or purchase of the product, and this feeling is the result of comparing the actual performance of the product or service and the expectations that the customer knows.

It can be said that quality of service and customer satisfaction plays a key role in business success and sustainability (Daniel and Berinyuy, 2010). The importance of customer satisfaction with e-service is important for financial performance as it is possible to lose a customer if he cannot access the website easily or if the performance of the website is unsatisfactory (Heskett et al., 1994). There are two aspects of measuring customer satisfaction first by assessing customer satisfaction immediately after the product or service purchase experience (Deng et al., 2010), and the second is total satisfaction after a period of time using the product or service (Daughetry et al., 1998). For nell (1992); Shem well et al. (1998) highlighted the importance of quality of service as a pre-requisite for customer satisfaction. Rust et al. (1999) referred that customer satisfaction is determined only by product and service attributes, but also by customer interaction with the system. Therefore, some researchers focused primarily on the impact of customer perception of site characteristics (Ho and Wu, 1999;Szymanski and Hise, 2000), such as logistical support, security, and the design of the company's website.

5. d) Electronic Customer Relationship Management and Satisfaction

The review of electronic marketing literature reveals that there are different models of customer satisfaction from these studies: Lee and Joshi (2006), and Cheung and Lee (2005). Khalifa and Liu (2005) referred that E-customer relationships contribute differently in achieving satisfaction. Farhadi et al. (2013) showed that E -CRM positively improves customer relationships, in the attributes of customer communication, electronic service quality, trust, customer satisfaction, and positive word-of-mouth. There are various models of customer satisfaction that can be seen from the perspective of customer satisfaction, Khalifa and Shen (2005;2009) noted that the use of CRM features, transaction cycle, and the customer lifecycle has a relationship with customer satisfaction. The characteristics of e-customer relationship management contribute differently to the satisfaction of customers and their relationship to the cycle of transactions and the life cycle of customers, but it is not possible to ignore these elements, because of their importance, which in fact included almost in all studies. Customer satisfaction is more important in the case of e-service because it is difficult to maintain customers in the virtual world and gain their loyalty (Zavareh et al., 2012). Customer satisfaction helps organizations and companies increase their returns and gain competitive advantage (Lewin, 2009). Based on above, the study hypotheses can be formulated as. H: Electronic customer relationship management influence customer satisfaction of the five stars hotels in Kuwait.

6. More Specifically

H1a: Website design directly influences customer satisfaction of the five stars hotels in Kuwait.

H1b: Search ability directly influences customer satisfaction of the five stars hotels in Kuwait.

H1c: Privacy and security directly influence customer satisfaction of the five stars hotels in Kuwait.

H1d: Delivery time directly influences customer satisfaction of the five stars hotels in Kuwait.

7. III.

8. Research Framework

Based on the study hypothesis, the following theoretical framework shown in Figure 1. As can be seen from the framework, the study investigates the impact of Electronic customer relationship management on Customer satisfaction of the five stars hotels in Kuwait. Where Electronic customer relationship management is the independent variable and is positively related to Customer satisfaction as the dependent variable.

9. Methodology a) Data Collection

A questionnaire was initially developed based on the literature. The first section consisted of a list of questions intended to probe the demographic variables of the respondents. The second section was comprised 20 items used to measure E-CRM, adopted from previous studies, and which could influence Customer satisfaction, using a five-point Likert scale. The following practices were focused on; Website design (6 statements Search ability on Website (5 statements), Privacy and security (4 statements), and Delivery time (5 statements). While the third one contained five items to measure customer satisfaction, is also adopted from previous studies, contained questions aimed at evaluating the level of Customer satisfaction (5 statements). Data are collected using a questionnaire.

10. b) Study Tool

The constructs in this study were developed by using measurement scales adopted from prior studies. Modifications were made to the scale to fit the purpose of the study. All constructs were measured using fivepoint Likert scales with anchors strongly disagree (= 1) and strongly agree (= 5

11. c) Operational Definitions

Website design: The general image of the personality of telecommunications companies in Kuwait to deal with the electronic sales of customers through the introduction and use of colors and logos on the website. The design includes: organization of the website, products offered and product prices, providing online purchasing and shipment tracking features, which determine the customer preferences on the Internet.

The search ability on the website: Refers to the special advantage of the website, including the presentation of the company's products and their characteristics when the customer wants to see a large number of criteria in the selection of the product to facilitate and support the decision-making process.

Privacy and Security: Refers to the security of the website for telecommunications companies in Kuwait regarding its ability to protect the personal information of shoppers from unauthorized use or disclose their personal information in a manner that may affect their decision to conduct transactions through the company's website.

Delivery Time: Indicates The ability of communication companies in Kuwait to deliver products on time to the customer, resulting in a positive effect in removing doubts and distrust in e-shopping online and supports confidence in the company's website and gives the customer a sense of comfort and encourages him to buy from the same site In many times.

Satisfaction: Refers to the extent of the customer satisfaction for all the processes that are handled by the purchase of products of the five stars hotels in Kuwait so that repeat the deal with companies based on the generated satisfaction.

12. d) Sample

The study population consisted of all of the customers of the five stars hotels in Kuwait (15) hotels. A convenience sampling was taken from customers staying in five stars hotels in Kuwait from different nationalities, with reference to the sample schedule (Bartlett et al.,2002), a sample of 550 customers were selected to represent the study population, the researchers distributed the questionnaires to the study sample. (425) Questionnaires retrieved. After reviewing the questionnaires show that there are (15) (2 percent). About educational level, respondents with Bachelor degrees were the largest group of respondents make (77 percent), respondents with Less than Bachelor make (19 percent). Finally, respondents with higher study degrees make (4 percent). The characteristics of the sample represented in Table 1.

13. e) Reliability and validity of the survey instrument

The survey instrument with 25 items was developed based on two variables Electronic customer relationship management as independent variables with four dimensions; Website design (WED1-WED6), Search ability on Website (SAW7-SAW11), Privacy and security (PRS12-PRS15), and Delivery time (DET16-DET20). Customer satisfaction as dependent variables with five statements (CS1-CS5).The instrument was evaluated for reliability and validity. Reliability refers to the instrument's ability to provide consistent results in repeated uses (Gate wood & Field, 1990). Validity refers to the degree to which the instrument measures the concept the researcher wants to measure (Bagozzi & Phillips, 1982). Factor analysis and reliability analysis were used in order to determine the data reliability for the Electronic customer relationship management, and Customer satisfaction. A within factor, factor analysis was performed to assess convergent validity. The results of the factor analysis and reliability tests are presented in Table (2) and Table (3). All individual loadings were above the minimum of 0.5 recommended by Hair et al. (1998). For exploratory research, a Cronbach ? greater than 0.80 is generally considerate reliable (Nunn ally, 1978). Cronbach ? statistics for the study contracts are shown in Table (2) and Table (3). Thus it can be concluded that the measures used in this study are valid and reliable. Kaiser-Meyer-Olkin has been used as Pre-analysis testing for the suitability of the entire sample for factor analysis as recommended by Comrey (1978), the value of The Kaiser-Meyer-Olkin measure was used to assess the suitability of the sample for each unifactorial determination. The KMO values found (see Table 2 and 3) are generally considered acceptable (Kim and Mueller, 1978). All factors in each unifactorial test accounted for more than 61.284 per cent of the variance of the respective variable sets. This suggests that only a small amount of the total variance for each group of variables is associated with causes other than the factor itself.

14. f) Descriptive Statistics Analysis

Table (4) Indicates that the customers of the five stars hotels in Kuwait evaluate Website design (with the highest mean scores, i.e. M = 3.92, SD=0.56) to be the most dominant of Electronic customer relationship management and evident to a considerable extent, followed by Privacy and security (M= 3.90, SD= 0.65), Delivery time (M = 3.88, SD =0.69), and Search ability on Website (with the lowest mean scores M=3.86, SD=0.54). With regard to Customer satisfaction, customers of the five stars hotels in Kuwait evaluate their satisfaction (with the high level, i.e. M = 3.87). Multiple regression analysis was employed to test the hypotheses. It is a useful technique that can be used to analyze the relationship between a single dependent variable and several independent variables (Hair et al., 1998). In this model, Customer satisfaction acts as the dependent variable and Electronic customer relationship management, as the independent variables. From the result as shown in Table (5), the regression model was statistically significant (F = 106.65; AdjR2 =.409; P =.000). The AdjR2 is 0.409, which means that 40.9 percent of the variation in Customer satisfaction can be explained by Website design, Search ability on Website, Privacy and security, and Delivery time. The proposed model was adequate as the F-statistic = 106.65 were significant at the 5% level (p < 0.05). This indicates that the overall model was reasonable fit and there was a statistically significant association between Electronic customer relationship management and Customer satisfaction.

Table (5) also shows that Website design (ß =0.171, p< 0.05), Search ability on Website (ß =0.246; p<0, 05), Privacy and security (ß =0.187, p< 0.05), and Delivery time (ß =0.281, p< 0.05) had a significant and positive effect on Customer satisfaction. This provides evidence to support H1a, H1b, H1c, and H1D. Based on the ß values Delivery time has the highest impact on Customer satisfaction followed by Search ability on Website, Privacy and security, finally Website design.

15. VI. Discussion

The results of the study show that, the management of the five stars hotels in Kuwait seeks to take care of the electronic customer relationship management through the improvement of the website and make the site more attractive through the appropriate design, colors consistent, the speed in loading the pages, and make this site sustainable. This gives a positive impression of e-customer relationship management of the five stars hotels in Kuwait. This finding was consistent with (Kim et al., 2008;Liu et al., 2008;Szymanski and Hise, 2000), and inconsistent with the study of Kim and Stole's (2004).

In view of the results related to the possibility of searching the website of the five stars hotels in Kuwait the website is easy and high speed of searches for the required product, but in contrast, the time spent in the search needs a little effort to get information, in addition to, the five stars hotels in Kuwait site is comfortable in search, the results of the current study are consistent with Kalifa and Shen (2005;2009).

The results show that there is an interest in privacy and security on the sites of the five stars hotels in Kuwait, especially when completing the procedures for the transactions that the customer wishes to complete, especially in terms of maintaining the confidentiality of the customer's personal and sales information. This is in line with Kim et al. (2008), Liu et al., (2008), and inconsistent with (Kim and Stoel's, 2004).

The results of delivery on time indicate the awareness of these hotels about the importance of this practice. The researcher attributed this to the interest of hotels to adhere to the time of delivery, which enhances the credibility of the hotels, and gives the customer a state of satisfaction with the performance of these hotels, in addition to the customer notice of tracking shipments to orders, the result consistent with Kim et al. Results related to the satisfaction variable for system tracking, on-time delivery, problem solving, as well as the Web site in terms of permanence, accessibility, payment, security and privacy. Results on satisfaction in terms of search capability, site design have been satisfactory. This finding is consistent with the results of (Safari et al., 2016), which examine the relationship between e-customer relationship management and customer satisfaction in Iranian institutions. The researchers believes that the five stars hotels in Kuwait are interested in the status of satisfaction of the users of the websites ,and they are satisfied with the services provided by these hotels , the result consistent with Navimipour and Soltani (2015), which examined the relationship between technology, cost and employee satisfaction through e-customer relationship management systems in Iranian institutions.

The study results showed a significant impact of E-CRM (website design, site search ability, privacy and security, and on-time delivery) on customer satisfaction of the five stars hotels in Kuwait, which indicates that the five stars hotels in Kuwait have the potential to influence the behavior of the final consumers to make them prefer the services provided to them, by generating interest to the end consumer of the website design, and enhance the ability and ability to search in the websites with the need to maintain security and privacy about personal customer information and purchases related to them, and maintain timely delivery of products / services to customers. The study result is consistent with Long et al. (2013) who have argued that customer satisfaction can be achieved through E-CRM implementation by meeting their needs and demand individually. E-CRM enables employees to obtain information concerning customers in real-time applications, such as live chat services and then make the fast and accurate decision for dealing with them (Bhattacharya, 2011). This result is also consistent with the (Kim et al., 2008;Liu et al., 2008;Szymanski and Hise, 2000), and inconsistent with Kim and Stoel's (2004).

16. VII. Recommendations

Based on the study results, the researchers recommend managers and decision makers of the five stars hotels in Kuwait have to:

1. Develop mechanisms to enhance the ease of use of the website of the five stars hotels in Kuwait and avoid complexity.

17. Focus on training their employees in communication

and problem-solving skills. 3. Have a strong customer strategy associated with E-CRM, to maximize customer satisfaction. 4. Work on structuring the websites of the five stars hotels in Kuwait to make the website faster to download the pages, which helps customers not to feel of weariness.

18. Maintaining the websites of the five stars hotels in

Kuwait confidential of the personal information of the customers and the confidentiality of information. 6. Adopting a study to determine the impact of e-customer relationship management in industries not to other than the service industry, especially in small ages. 7. The study showed that there is an impact of e-customer relationship management on customer satisfaction. These variables can change rapidly so other studies to adopt other factors of e-customer relationship management not included in the current study.

Figure 1. Table 1 :
1
Website Design
Search Ability Satisfaction
Privacy and Security
Delivery Time
Figure 2. Table 2 :
2
Construct and Item Loadings Communalities KMO Variance Reliability
Website Design (WED) .789 66.564 0.87
WED1 0.56 0.58
WED2 0.58 0.62
WED3 0.61 0.64
WED4 0.55 0.59
WED5 0.52 0.55
WED6 0.64 0.67
Search Ability on Website (SAW) .825 69.328 0.88
SAW7 0.64 0.68
SAW8 0.59 0.63
SAW9 0.52 0.57
SAW10 0.53 0.56
SAW11 0.57 0.62
Privacy and Security (PRS) .778 61.284 0.79
PRS12 0.55 0.58
PRS13 0.58 0.63
PRS14 0.53 0.54
PRS15 0.59 0.67
Delivery Time (DET) .815 63.548 0.85
DET16 0.63 0.66
DET17 0.62 0.67
DET18 0.55 0.59
DET19 0.58 0.63
DET20 0.59 0.64
Figure 3. Table 3 :
3
Construct and Item Loadings Communalities KMO Variance Reliability
Customer Satisfaction (CS) .678 72.361 0.83
CS1 0.56 0.59
CS2 0.59 0.63
CS3 0.58 0.64
CS4 0.63 0.67
CS5 0.64 0.69
Figure 4. Table 4 :
4
Dimension Mean Standard Deviation
Electronic customer relationship management 3.89
Website design 3.92 0.56
Search ability on Website 3.86 0.54
Privacy and security 3.90 0.65
Delivery time 3.88 0.69
Customer electronic satisfaction 3.87
V. Test of Hypothesis
Figure 5. Table 5 :
5
Year 2018

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Date: 2018 2018-01-15