THE EFFECT OF CUSTOMER RELATIONSHIP MANAGEMENT ON MARKET PERFORMANCE: A MEDIATING MODEL

Abstract

This study investigates the effect of customer relationship management (CRM) on market performance. Customer satisfaction was adopted as a mediator in the relationship between CRM and market performance. In volatile markets, a company's reputation is heavily reliant on customer satisfaction. Therefore, the current study is conducted in the case of five-star hotels in Addis Abeba. The researcher sampled 270 respondents and used primary and secondary data for data collection. The findings of the study revealed that customer satisfaction plays a crucial mediating role in the connection between customer relationships and market performance. When customers are satisfied with their hotel experience, it increases their loyalty to the establishment. This loyalty, in turn, positively influences the hotel's market performance. This research aims to contribute to the existing literature by identifying the mediating effect of customer satisfaction between customer relationship management and market performance in a selected five-star hotel in Addis Ababa. These findings of the study highlight the importance of focusing on customer satisfaction, as it acts as a key driver in shaping the overall market performance of a hotel.