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Signaling Service Quality via Website e-CRM Features: More Gains for Smaller and Lesser Known Hotels

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Journal of Hospitality & Tourism Research: The Professional Journal of the Council on Hotel, Restaurant, and Institutional Education

Published online on

Abstract

This article evaluates the electronic customer relationship management (e-CRM) features on hotel websites and examines the effectiveness of e-CRM quality as a signal that conveys information about unobservable hotel service quality. Complementary findings from two studies are presented. In Study 1, the results from lab experiments show that hotel e-CRM quality had positive effects on potential customers’ expectations for service quality, trust in and satisfaction with the hotel website, and intentions to purchase from the website. In Study 2, observational data collected from an influential hotel review website show a positive relationship between a hotel’s basic, proactive, and partnership e-CRM and the hotel’s rank in its region. Both studies found that smaller hotels and hotels with lesser known brands benefited more from better e-CRM. These findings suggest that a well-designed e-CRM system may help less visible hotels to gain advantages in the increasingly competitive online marketplace.